On Monday, June 13, the energy company filed a proposal requesting an overall increase of 8.1 percent in electric rates and a 3-percent bump in natural gas rates for all customer groups. If approved, the proposed rates would take effect in May 2012. The UTC will review the proposed increase during the next 11-months.
The proposed rate increase is intended to recover the cost of energy system improvements made in 2009 and 2010, when PSE invested almost $1.1 billion for new gas and electric delivery infrastructure and new electric generation, according to a statement released by the energy company earlier this week. The UTC filing states that PSE wants to increase annual revenues by $193 million and to set an allowed return on common equity of 10.8 percent and a regulatory capital structure of 48 percent equity.
According to the filing, the increases would raise the average homeowner’s monthly electric bill by $8.37 (based on 1,000 kilowatt hours per month) and monthly natural gas bill by about $2.84 (based on 68 therms per month). The filing also proposes a conservation savings adjustment mechanism related to the energy efficiency services for business and residential customers.
Puget Sound Energy serves more than 1 million electric customers and 750,000 natural gas customers in 11 counties, including King County.