Puget Sound Energy (PSE) gas customers began receiving a drop in their rates on Nov. 1. The Washington Utilities and Transportation Commission approved multiple requests from PSE to decrease the combined average monthly natural gas cost by 2.6 percent for residential customers. This means an average household using 64 therms per month would see a decrease of $1.80, bringing their bill to $68.
In December, PSE anticipates the UTC to rule on a separate request to overall lower natural gas rates by another 3.8 percent.
Combined, November’s drop in natural gas bills along with the anticipated decrease in December will result in an overall average 6.5 percent decrease in natural gas rates.
PSE spokesperson Janet Kim said two factors play into decisions to adjust prices.
These include the cost of natural gas this year over last, and cost recovery related to pipe replacement and maintenance.
“We already have a cost estimate for what those pipeline replacement rates will cost, but if there’s a discrepancy, then we’ll adjust,” she said.
The lowered natural gas bills are a result of adjustments reflecting market prices for gas supplies the utility purchases for customers and the costs of operating the natural gas system.
While natural gas prices will drop, electric rates could increase by December.
If a rate case settlement is approved, customers would see an increase of 1 percent.
This increase ties in with PSE’s decision to switch away from two coal-fired power plants in Montana by 2022.
Some $10 million will also be provided to the community in Colstrip, where the plants are being decommissioned.
PSE also offers weatherization and customer power-bill assistance for low-income customers.
Kim said power bills for PSE customers are generally higher during the winter months.
In 2016, some 77 percent of the natural gas supply came from Western Canada and 23 percent from the Rocky Mountain areas in the U.S.
PSE’s electricity comes from the company-owned Wild Horse Wind Farm in Kittias County and two other wind farms in Eastern Washington, hydroelectric power from the Baker River Dam and Snoqualmie Falls as well as natural gas and coal power plants.
PSE also contracts with public utility districts in other counties for hydroelectric power from the Columbia River.
