Puget Sound Energy Electric Rate Hike Approved

BELLEVUE, WA - The state Utilities and Transportation Commission will allow Puget Sound Energy to raise electric rates by 1 percent, but also will require a 3.9 percent decrease in natural gas rates. That's compared to the 4.1 percent electric rate increase and 2.4 percent natural gas decrease PSE asked for last January.

The settlement with Bellevue-based PSE was approved in September. The average electric customer will see a an increase of about 96 cents per month based on 900 kilowatt hours per month, according to the commission. Natural gas customers will see bills decrease 3.9 percent each month, or about $2.67.

The settlement also reduces PSE's return on equity for its stake in the Colstrip coal-fired plant in Montana. The settlement creates a mechanism to help PSE finance the decommissioning of two parts of Colstrip, which is supposed to be complete by 2022.

Colstrip, located east of Billings, Mont., is scheduled to reach the end of its useful life 2027, but might continue to burn coal after that. The settlement also sets aside $5 million to help the community around Colstrip transition as the plant closes.

In June, the Seattle City Council passed a resolution that in part asked PSE to close Colstrip.

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