Rate increase for PSE will be smaller

Electricity costs rise 8.7 percent for 3 months

JOHN DODGE THE OLYMPIAN

OLYMPIA -- Puget Sound Energy's electric bills will rise 8.7 percent, or about $5 a month, effective April 1 after state utility regulators on Thursday approved a settlement reached in a rate case.

The temporary rate increase will be in place through June 30. At that time, a permanent rate increase of no more than 6.5 percent will go into effect, if all other issues in the rate case are resolved.

The agreement approved by the state Utilities and Transportation Commission is a far cry from the 21.6 percent temporary rate increase and 16.5 percent permanent rate increase the state's largest investor-owned utility originally sought.

Puget Sound Energy serves some 940,000 electricity customers, including all of Thurston County.

The settlement agreement involved 14 parties, including the state Office of the Attorney General. The accord:

- Allows customers to choose whether to participate in PSE's program that charges different rates at different times of day. Previously, customers were automatically enrolled.

- Calls on PSE to withdraw a controversial plan requiring customers to choose each year between a fixed power rate or a variable rate that would fluctuate with the daily ups and downs of the wholesale power market.

John Dodge covers the environment and energy for The Olympian. He can be reached at 360-754-5444 or jdodge@olympia.gannett.com.

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- Puget Sound Energy

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