PSE Customers: Did Your Bill Spike Too?

Puget Sound Energy customers - have you checked your bill recently? 

When I looked at my bill a few weeks ago, I was very surprised to see how much it had gone up compared to a year ago and also compared to the previous 33-day billing cycle. I contacted Puget Sound Energy (PSE) to ask what was going on. The reply – “you’re not the only one - there are so many inquiries.” 

PSE has created a page with answers to Frequently Asked Questions that was posted on February 11. 

Short and Long-Term Repercussions 

In the short run: 

1. There was a rate increase on January 1.  PSE spokeswoman Melanie Coon wrote in an email “electric rates (are) increasing about 13% and gas rates (are) increasing about 6% for an average residential customer.”
2. Our family’s bill was up because we did use more electricity. A lot more.  We love Christmas and put up a lot of lights. Even though most are very energy efficient, they do add up. Note: our gas was just a few dollars different.  98% of the increase in our bill was due to higher electricity costs.
3. Having the rate increase take effect in the middle of a billing cycle meant there were some changes in how information was shown on the bill. This made reading the bill very confusing.

In the longer run: 

1. In the years ahead, plan on higher energy costs. Budget accordingly.
2. Look for ways to save on gas and electric bills. If you’re eligible for lower-rate plans, apply. The middle of this page has assistance for lower-income customers. It also has information on some other ways to save.
3. Keep abreast of news related to the Climate Commitment Act, to data centers’ growing use of power, and to other changes that impact energy costs.

Planned Rate Increases

The rate increases on January 1 are not the only increases planned for 2026. In fact, rates increased a second time on February 1. Melanie wrote:

“At the end of January, rates increased by 4.5% for electric customers and 1.6% for gas customers. This is the second year of PSE’s general rate case that was authorized by the UTC in Feb. 2024 and is necessary for maintaining essential utility services and investing in our infrastructure to ensure the safe and reliable delivery of energy to customers.”  

[Editor’s note:  WA state’s Utilities and Transportation Commission accepts public comment and reviews all rate increases before they go into effect. This page links to current PSE filings.]

But wait, there’s more. Melanie added:

“Power supply costs have increased for several reasons. To comply with Washington state’s ambitious clean energy laws, PSE must purchase more renewable energy and replace energy from legacy coal generators. At the same time, increasing demand for electricity and more expensive power has made the power we purchase to serve customers more costly. Further, at the end of 2025, the Bonneville Power Administration (BPA), the largest provider of transmission service to PSE and the region, increased the rates PSE pays for transmission by over 24%.”

This wholesale rate increase of 24% is not included in the rate increase of January and February 1. It will be included in the next set of rate increases. The impact on your bill depends on the percentage of electricity PSE needs from BPA as opposed to the amount that comes from other sources.  This percent can vary seasonally.

There are several factors that impact this: the amount of hydropower available (snow pack and rainfall impact this), natural gas prices when it powers electricity generation, and more.

Can rates keep going up? 

Yes. And not just because of the factors mentioned. Look at this pie chart from 2024 showing the sources of energy. Solar is less than one percent. Natural Gas and Coal together are 50%. PSE essentially needs to replace half of its electricity sources, plus handle growth in demand.  

The amount of time to zero carbon deadlines is much shorter than the number of years it took to develop this capacity.  Under the state Climate Commitment Act (CCA), everyone has to pay for carbon permits. That includes PSE. As their price increases, so will utility costs.

Data centers for AI and other online services are forecasted nationwide to use an enormous amount of power. I always thought “we’re in a lucky location because we have so much hydro. We have locked in lower rates, compared to much of the rest of the US.” Wrong. As mentioned, BPA increased its rates. and they’re sourcing much of their power from hydro.  

What about wind and solar? 

I invite readers to the story I wrote a few years ago about visiting a wind farm near the Columbia River. Wind and solar simply don’t generate enough electricity. These facilities are very hard to site and in many locations in the northwest do not have year-round wind or sun sufficient to make a dent in our needs. Yet building farther away involves big challenges for grid capacity.

More sobering still is the reality that our utilities are competing against Big Tech for new capacity. And Big Tech has a lot of money - example: Amazon just beat out Puget Sound Energy to buy a bankrupt solar farm in Oregon with a bid of $83 million, compared to PSE’s bid of $82 million. In order to meet carbon goals, PSE needs an enormous number of sites like this in a shorter time than it takes to permit, build, and begin operations.

Future rates are driven by many factors 

There are short-term blips from unusual weather patterns (let’s hope we get some snowpack this year). Then there’s the reality that the carbon pollution permits have already brought in $4.3 billion, with this amount destined to increase over time, due to how the Climate Commitment Act (CCA) is structured.   

So, budget accordingly,  think carefully about what costs you’re locking into long term, and monitor your bill so you know what’s going on. This summer, PSE will be required to explain the impact of the climate act on the bills customer rates. And as mentioned before, keep an eye out for the programs funded by Puget Sound Energy and by the CCA  that may help save energy and money.