Power of compromise: proposed pact would mean smaller rate hikes for PSE customers

Our Public Counsel Section today announced a proposed pact that would mean smaller electric and gas rate increases for Puget Sound Energy customers than those originally requested by the company.

“This is a reasonable compromise that will soften the impact to family budgets,” said Public Counsel Section Chief Simon ffitch.

The agreement isn’t final until approved by the state Utilities and Transportation Commission, but all parties are on board including Public Counsel, UTC staff, large industrial and commercial customers, federal agencies and The Energy Project, which advocates for low-income residents. Read more here.

The new rates would go into effect Nov. 1, 2008. According to PSE, a typical household electricity bill (based on 1,000 kilowatt-hours of electricity) would increase 8.25 percent, or $7.65, a month. A typical natural gas bill (based on 68 therms), would increase 5 percent, or $4.15, a month. This would make PSE’s average monthly electric residential bill $100.41 and the average monthly natural gas residential bill $86.29.

On a related note, the UTC will begin separate hearings next week to consider a proposed settlement that would approve the sale of PSE and its parent company, Puget Energy, to a consortium of private equity investors led by the Macquarie Group, an international banking and investment firm. Public Counsel will be presenting testimony to oppose that agreement. (See Aug. 5 news release.)

Members of the public can comment on the proposed sale agreement at a public hearing 6:30 – 8 p.m. on Tuesday, Aug. 26, at the Utilities and Transportation Commission, Richard Hemstad Building - Room 206, 1300 S. Evergreen Park Dr. S.W., Olympia.