Puget Sound Energy Proposes Chilling Rate Hikes
By: Source: AARP.org Date Posted: 2005-01-27 11:43:37
Rates would jump 6.5% for electricity customers and 6.3% for natural-gas customers
Puget Sound Energy (PSE) can expect a chilly reception to its proposed electricity and natural-gas rate hikes. In April 2004, the state's largest electric and natural-gas utility filed an application with the state regulatory agency asking to increase revenues by an additional $81.6 million from electric customers and $47.2 million from natural gas customers. The proposed rate hikes would amount to a 6.5% increase, or about an additional $4 a month for the average residential electricity customer, and a 6.3% rate bump, or an additional $4.47 a month for the typical natural-gas ratepayer.
However, the parties have reached a partial settlement agreement on the rate design and rate spread issues in the case, which would result in a much smaller increase to energy fixed charges. AARP is urging approval of the partial settlement agreement, but says there are still other issues that need to be resolved.
PSE is asking to increase its return on investment from 11% to 11.75%. Washington Utilities and Transportation Commission (WUTC) staff wants to lower it to 9%. These issues could lead to higher rates and potentially unaffordable bills.
"Freezing in the winter is not our idea of aging in place," says Gene Forrester of AARP's National Legislative Council.
Forrester testified in opposition to the proposed rate increases on behalf of the advocacy group.
"Seniors are particularly vulnerable in the Winter to freezing temperatures," says Forrester. "We rely on the ability to heat our homes both for comfort and well-being. Too often, low income seniors are asked to choose between risking their health by cutting back on energy expenditures or reducing spending for other basic necessities such as health care."
AARP is urging PSE customers to contact the WUTC to support the partial settlement. Customers can send comments by email or by mail to P.O. Box 47250, Olympia, WA 98504. The commission is expected to make a final decision next spring.
Bellevue-based Puget Sound Energy provides natural gas service to 645,000 customers in all or part of King, Kittitas, Lewis, Pierce, Thurston and Snohomish counties. PSE provides electric service to 978,000 customers in all or part of Island, Jefferson, King, Kittitas, Kitsap, Pierce, Skagit, Thurston and Whatcom counties. About 310,000 customers receive both natural gas and electric service from PSE.
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Other Resources
- Washington Utilities and Transportation Committee
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- Possible Puget Sound Energy Rate Hike Angers AARP
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