Puget Sound Energy says it needs to increase natural gas bills this fall and winter by an average of $8.49 a month in order to cover the higher wholesale cost of the fuel.
That would bring the average household natural gas bill to $90.64 a month, according to the company.
The utility filed a 10 percent rate adjustment request Thursday with the Washington Utilities and Transportation Commission in order to recoup its costs.
This seasonal rate change is known as a “pass-through” request, which means PSE asks only to cover higher costs. It is different from a pending permanent rate request from PSE, which aims to generate more revenue.
If approved by state regulators, the new rate increase would take effect Oct. 1.
At this time last year, the utility reduced natural gas bills by about 13 percent, as wholesale prices for natural gas slumped.
But energy prices have been on the rise again this year, said Bert Valdman, PSE’s chief operating officer.
“Natural gas prices have been very volatile and increased significantly since the (utilities commission) approved our request for a 13 percent reduction a year ago,” Valdman said in a written statement. He said a recent flattening out in natural gas prices allowed the utility to keep the requested increase from rising higher.
PSE officials added that, if the pass-through rate is approved, the average monthly bill for gas would be equal to what customers were paying in the fall and winter of 2006.
Along with its rate request, PSE also filed Thursday to increase the monthly charge customers pay into a fund that helps low-income households cover their utility bills. If approved, the charge for natural gas customers would go up by 2 cents a month. PSE said the fee, paid by both electric and gas customers, provides $15 million a year for direct assistance to more than 25,000 customers in Western Washington.
Assuming the seasonal rate request is approved, natural gas customers are likely to see their bills jump twice this autumn. A month after the projected start date for the pass-through increase, the permanent rate increase is set to take effect if commissioners approve it. Last week, PSE announced it had reached a settlement with consumer advocates and state regulators that would cap that increase at $4.15 a month for the average customer.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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