Residents who use Puget Sound Energy’s natural gas to heat their homes will see their bills go up by about $3 a month after regulators approved a general rate increase Friday.
The state Utilities and Transportation Commission rejected, however, a huge jump in PSE’s basic customer-service charge.
If allowed, that could have sent the average household bill soaring by up to $11 more a month.
“We find that PSE’s proposed increase to the residential customer charge is simply too much change, too fast, from a customer perspective,” the commissioners stated in their written decision.
The commissioners instead allowed a $2 increase in the monthly service charge, which will now total $8.25 a month. PSE had wanted that basic charge raised to $17.
The Public Counsel Section of the state’s Attorney General’s Office, which represents consumers in rate cases, had requested that the charge be raised to no more than $7.
“But certainly this is far better than the $17 charge proposed by PSE, which was, frankly, really out of line,” said Assistant Attorney General Judith Krebs. She praised the commissioners’ “thoughtful” rate decision.
Kimberly Harris, senior vice president of regulatory policy and energy efficiency, said PSE’s intention wasn’t just to boost revenue by raising the service charge. The idea was to raise the fixed customer charge and reduce the delivery fee PSE charges for every billing unit of natural gas.
That’s an idea the utility may still pursue in the future, she added.
On top of raising the fixed charge by $2, utilities commissioners allowed a 3.2 percent increase in PSE’s natural gas rates, which amounts to about 84 cents a month for the typical household. PSE had wanted rates to go up by 5.3 percent.
The new rates and customer-service charge are likely to take hold in mid-January, according to the utilities commission.
Harris said PSE hadn’t yet reviewed the entire 70-page decision on the company’s natural gas and electric rates. But she said it’s unlikely PSE will appeal the rate decisionto the commission or in court.
“It goes in the right direction,” she said of the allowed rate changes.
A general rate increase, which PSE was last granted in early 2005, is meant to help private utilities such as PSE make money at an agreed-upon rate. The state regulators balance that goal with customers’ interests.
“That’s what we’re charged with,” said Marilyn Meehan, spokeswoman for the Utilities and Transportation Commission. “Making sure the company gets a reasonable rate of return while making sure customers’ rates are reasonable, too.”
Under the new rates, PSE will earn a 10.4 percent rate of return, up from 10.3 percent, Meehan said. The company had asked for more than 11 percent as a rate of return.
The regulatory commissioners did allow PSE to boost its energy programs for low-income customers by $1.75 million. It also granted the utility permission to earn an incentive if it achieves the goals of its electricity-conservation programs.
Overall electric rates charged by PSE, which provides power to Whidbey Island, will go up by about 86 cents a month. PSE doesn’t provide electrical service in Snohomish County.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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