Puget Sound Energy is looking to increase its electric rates by almost 30% over the next three years.
According to a news release from the utility company, it filed a rate request for 2027 through 2029 with the Washington Utilities and Transportation Commission (UTC) on Feb. 27.
Under the three-year plan, electric rates would increase by 29.32% for residential customers:
- 2027: 16.75%
- 2028: 3.76%
- 2029: 8.81%
The rate hikes will also apply to gas, which would increase by 19.83% for residential customers:
- 2027: 13.32%
- 2028: 3.04%
- 2029: 3.47%
According to the release, a typical customer who uses 800 kWhs per month would pay about $28 extra per month in 2027, $7 in 2028 and then nearly $16 in 2029, which adds up to about a $51 increase. A natural gas customer who uses a typical 64 therms per month would pay $14 more in 2027, about $4 in 2028 and nearly $5 in 2029, which adds up to roughly $23 extra.
This plan would mark the third, fourth and fifth consecutive years PSE has raised its rates. In 2025, the company raised its rates 11.5% for electric customers and 10.6% for natural gas customers. In 2026, rates once again went up about 12% for electric and 7% for gas. Altogether, this is a 23.5% increase for electric customers and 17.6% for gas.
In the release, PSE said Washington’s clean energy legislation played a big role in its decision to increase its rates.
“Any increase in monthly bills is difficult for the families and businesses we serve. We take that seriously,” Mary Kipp, president & CEO of PSE, said in the release. “At the same time, our customers count on us for safe, reliable energy, and many expect that energy to become cleaner in line with Washington’s climate laws.”
The UTC — which regulates the rates and services of investor-owned electric utilities across the state — has almost a year to review the new plan, according to the release.
“In Washington, any proposed rate changes for an investor-owned utility undergo a review process of up to 11 months by the UTC, which has the authority to set final rates that may differ from PSE’s requests based on the results of its review,” the release said.
The News Tribune reached out to the UTC for comment.
“The case … is currently under review by the commission,” Tiffany Johnson, spokesperson for the UTC, wrote in an email to The News Tribune. “The filing from PSE marks the start of a lengthy process that will take place over several months. This will include hearings and chances for public comments as the commission works to make sure that utility services are safe, reliable, available, equitable, and fairly priced. Once the administrative law judge has conducted the prehearing conference and scheduled the hearing, we will be able to share a schedule for the case.”
Five-year breakdown
Customers already saw a combined 23.5% increase in electric and 17.6% increase in gas during 2025 and 2026. This new plan would stack on top of these rates already in place, resulting in PSE raising its rates by a total of 52.82% for electric customers and 37.43% from 2025 to 2029.
Here is a five-year cost breakdown, including if PSE’s request is approved, for an electric customer who uses 800 kWhs per month and a natural gas customer who uses 64 therms per month.
- 2025: $13.08 more per month for electric, $7.56 more per month for gas.
- 2026: $17 more per month for electric, $6.50 more per month for gas.
- 2027: $28 more per month for electric, $14 more per month for gas.
- 2028: $7 more per month for electric, $4 more per month for gas.
- 2029: Nearly $16 per month for electric, nearly $5 per month for gas.
Altogether, this means that in 2029, these customers would pay about $81.08 more per month for electricity and about $37.06 more per month for gas compared to 2024.
Why are costs going up?
In the release, the company said the main factors driving the rate hikes are infrastructure improvements and compliance with Washington’s clean energy legislation.
“This rate plan reflects the balance we must strike: keeping our gas and electric system strong and dependable, investing in cleaner resources that will power our future, and doing so as responsibly and thoughtfully as possible,” Kipp said in the release.
PSE is planning to invest $3.2 billion in its gas and electric systems, the release said, with 70% going to its electric resources, which are “under increasing strain.”
“Electric system investments focus on system safety and reliability, meeting growing customer demand and hardening PSE’s infrastructure against more severe weather and wildfire risks,” the release said. “These projects reduce outages, shorten restoration times, and strengthen the grid’s resilience to storms and other threats, ensuring customers receive safe, reliable, high-quality energy service daily.”
State law also dictates that by 2030, 80% of its electricity must come from “renewable or non-emitting resources,” in an effort to combat climate change. The Clean Energy Transformation Act, which former Gov. Jay Inslee signed in 2019, requires 100% of their energy to be renewable by 2045.
PSE is focusing on 11 wind, solar and battery projects, the release said, spread across Washington state and Montana. Rate increases under this plan will help fund that.
“Included in the rate plan are $529 million in federal tax credits that will directly benefit customers by reducing costs of new generation projects added during the rate plan,” the release said. “Due to changes in federal tax law, these credits are expiring, creating an urgency to complete projects quickly. In addition, customers will see a benefit of $246 million from tax credits on the recently completed Beaver Creek Wind Facility.”
This year, the state legislature tried to address increased strain on the electric grid by drafting a bill aimed at data centers due to their increased power use. Data centers are facilities that provide power, infrastructure and cooling for users to access the internet. Data centers are expected to triple their power use by 2028, according to a December 2024 study from the U.S. Department of Energy. The study said artificial intelligence is a big factor in the centers’ increased energy demand.
House Bill 2515, sponsored by 16 Democrats, would have required PSE — and any other electric utility company with a data center in its borders — to create a tariff or policy for data centers that would be approved by the UTC. It would also require each data center to publish an annual sustainability report “demonstrating how the [data center] will address and balance energy, water, and computing performance to maximize energy efficiency, water efficiency, and overall sustainability of the facility’s operations.”
The bill passed the house, but stalled in the Senate Committee on Ways & Means on March 2.
In a previous interview with The News Tribune, Matt Steuerwalt, PSE’s senior vice president of external affairs, said some of the company’s increases in recent years have gone toward offsetting the cost of climate credits.
The state’s Climate Commitment Act requires the state’s largest greenhouse gas emitters to purchase carbon allowances during state auctions, which is designed to offset that company’s emissions. When businesses purchase the carbon allowances, the funds go into the state’s climate account, which funds projects aimed at reducing greenhouse gas emissions and increasing the state’s climate resilience.
Steuerwalt said PSE gets some of its compliance credits for free, but has to buy the rest of them.
The News Tribune previously asked Steuerwalt why PSE can’t cover the increased costs by covering executive salaries. He said the majority of executive salaries come not from customers, but from PSE’s owners, which consists of six pension funds.
Christina Donegan, PSE’s communications director, previously told The News Tribune customers pay roughly 40% of an executive’s salary, while investors pay 60%. She said the vast majority of customers’ funds go toward procuring power and the salaries of maintenance workers.
How can customers save on their PSE bill?
In the Feb. 27 release, PSE said they offer a variety of programs to help residents who are struggling.
Customers who spend more than 6% of their income on energy bills can qualify for some of PSE’s income-qualified programs. These include bill discount rates, credits for participating in certain programs and past due bill forgiveness.
PSE also said it is “expanding customer incentives” to reduce energy consumption during peak hours, which will decrease demand and help “offset the need to acquire power when it is most expensive.”
“The rate plan includes a proposal to make the current time-of-use pilot a permanent program for all customers — participating customers receive a lower rate for switching their energy use to times when demand is low,” the release said.
The company’s new “Peak Time Savings” program will also allow participants to save some money during “Flex events that are called by PSE when demand is predicted to spike.”
To enroll in the company’s Flex Rewards program, visit www.pse.com/en/rebates/PSE-flex.
Residents can call the customer call center 1-888-255-7733 or visit pse.com/gethelp. PSE also has energy advisors that customers can speak to for personalized assistance. To speak to an energy advisor, call 1-800-562-1482 or go to pse.com/en/rebates/ask-advisor-form.
Customers can tell the UTC how they feel about these rate hikes by submitting a public comment form at utc.wa.gov/consumers/submit-comment/public-comment-form.
News Tribune archives contributed to this story.
This story was originally published March 11, 2026 at 5:00 AM.
Isabela Lund
The News Tribune
Isabela Lund is the East Pierce County reporter at The News Tribune. She covers the latest news in Puyallup, Sumner, Bonney Lake, Orting, Edgewood, Buckley and beyond. Before joining The News Tribune in 2025, she was the digital content manager at KDRV NewsWatch 12 in Medford, Oregon and a reporter at the Stanwood Camano News in Stanwood, Washington. She grew up in Kitsap County and graduated from Western Washington University in 2022 with a bachelor’s degree in journalism.
