Aug. 25, 2008 at 11:10am

PSE to get smaller increase with deal

A proposed pact would mean smaller electric and gas rate increases for Puget Sound Energy customers than those originally requested by the company.

The Attorney General's Public Counsel Section, which protested PSE's push to add millions in additional revenues, said parties have reached an agreement that is better for consumers. The proposed agreement isn't final until approved by the state Utilities and Transportation Commission, but all parties are on board including Public Counsel, UTC staff, large industrial and commercial customers, federal agencies and The Energy Project, which advocates for low-income residents.

PSE filed its rate case with the Utilities and Transportation Commission last December. It tweaked the request in April to ask for more money – nearly $180 million per year in new electric revenues and $58 million from its gas customers. Public Counsel fought back, saying a reasonable increase would be much less. Faced with opposition, PSE revised its request again in April, asking for $165.2 million a year on the electric side and $55.5 million from gas.

The  proposed agreement further trims the amount PSE will be able to charge customers. If approved, new rates will go into effect Nov. 1. The agreement results in an 8.4 percent increase in residential electric rates and a 4.7 percent increase residential natural gas rates. The settlement will be presented to the UTC for review in early September. Commissioners are expected to consider the power-cost-only rate case around the same time. The UTC staff recommendation is not binding on the commission.

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