Electricity bills for Puget Sound Energy (PSE) residential customers will drop by 3 percent.

The Washington Utilities and Transportation Commission (UTC) accepted a Bonneville Power Administration (BPA) electric power credit, and approved an uncontested settlement of PSE’s general rate case filed last December. Both actions take effect Nov. 1.

About 970,000 PSE residential and small farm customers will receive a credit on their monthly electric bills.

BPA suspended the credits 16 months ago after the U.S. Ninth Circuit Court of Appeals found they did not conform to federal law. BPA reinstated the benefits based on a revised method, in a decision issued Sept. 22.

The new average credit will be about $10 monthly for PSE customers using 1,000 kilowatt-hours, and will offset the increase of approximately $7.50 a month granted in PSE’s rate request. Beginning next month, the average residential electric customer using 1000 kilowatt hours will see a decrease of about $2.50 a month, resulting in an average bill of $97.50.