Natural gas rates paid by Puget Sound Energy (PSE) customers are going down for the second time this year. At the same time, electric rates are expected to go up slightly.
The Washington Utilities and Transportation Commission (UTC) has approved PSE’s request to lower natural gas rates by about 16 percent due to the continued decline in the wholesale cost of fuel. For an average residential customer who uses 68 therms a month, the decrease is about $14.88, for a $78.30 monthly bill total beginning Oct. 1.
“Natural gas customers will soon begin to crank up the heat in response to cooler temperatures, I am pleased that they can expect noticeably lower heating bills this winter,” said UTC Commissioner Patrick Oshie.
PSE also requested the UTC approve two rate adjustments for electricity service that will result in customers seeing a slight increase on their electric bills. The Bonneville Power Administration (BPA) will pay the utility a reduced amount of federal power benefits, which in turn is then passed through as a bill credit to residential and small farm customers. This action will lower the credit amount on an average household’s monthly bill by $1.86, from $9.14 to $7.27.
In addition, the commission also granted the utility a one-cent-per-month increase on natural gas and electric bills to help cover the costs of the company’s low-income assistance program.
This is the second price reduction of natural gas rates this year. In June, the UTC approved a decrease of about 1.7 percent, or $1.62 monthly for residential customers.
The commission decisions on PSE’s rate requests are separate from the general rate case filed by the company in May. In that proceeding, the utility is seeking a 2.5 percent increase in natural gas rates and a 7.4 percent increase in electric rates. The UTC will issue a decision on that request by next March.
Natural gas companies are required to adjust rates periodically to reflect the changes in wholesale prices. PSE is not allowed to earn a profit on gas-commodity rate changes.
