State regulators approve multiple orders impacting Puget Sound Energy rates

Media contact: [email protected] or 360-664-1116
Docket numbers: UE-250733, UE-250747, UG-250843, UE-250880, UE-250901, UE-250930, UG-250843, UG-250881

LACEY, Wash. - On Dec. 23, 2025, the Utilities and Transportation Commission approved several requests filed by Puget Sound Energy (PSE) that increase electric and natural gas rates effective Jan. 1, 2026.

The net impact of the changes for electric customers is a roughly 12% increase. That is about $17 per month for the average residential electric customer using 800 kWh per month. The net impact of the changes for natural gas customers is roughly a 7% increase. The average natural gas residential customer using 64 therms a month and connected before July 25, 2021, will see an increase of about $6.50 per month.

PSE asked the UTC to recover costs related to their actions to:

1. Comply with the Climate Commitment Act (CCA).
2. Expand clean energy provided to customers.
3. Pay for investments to increase reliability and safety for customers.
4. Address low-income bill assistance costs.

The CCA caps and reduces greenhouse gas emissions from Washington's largest emitting sources and industries. Currently, utilities receive some no-cost emission allowances from the Department of Ecology to lessen the financial burden of compliance, but these do not cover all the allowances utilities must purchase to comply with the CCA. In addition to the CCA requirements, PSE is changing its electricity resource portfolio to achieve Clean Energy Transformation Act (CETA) requirements while also preserving essential grid safety and reliability standards.

Commission staff reviewed and confirmed that PSE's requests were justified and recommended approval. After hearing from commenters, including customers, the commission approved PSE's requests.

Here are details about the orders approved with financial impacts for electric customers:

Here are details about the orders approved with financial impacts for natural gas customers:

Additional background on significant orders

In docket UE-250747, related to electric rates, the commission approved PSE's request for a revenue increase to reflect changes to PSE's power costs. This filing was authorized as part of PSE's 2024 general rate case to update power costs during the multiyear rate plan approved by the commission. PSE's energy unit costs (related to producing, storing, and selling energy) have increased 59% between 2025 and 2026.

In docket UE-250901, related to electric rates, the commission allowed PSE to file revised tariffs, subject to later review and refund. This docket establishes the schedule and initial rates for PSE to recover costs from customers for compliance with the CCA and to account for the no-cost emission allowances discussed above. The result is a reduction in customer bills.

In docket UG-250843, related to natural gas rates, the commission approved PSE's natural gas tariff revisions to recover actual and anticipated costs and revenues for the benefit of ratepayers associated with CCA compliance.

About the UTC

The UTC regulates the rates and services of investor-owned electric utilities, telecommunications companies, natural gas and water companies, solid waste collection companies, household-goods movers and passenger transportation companies, commercial ferries, pipeline companies, marine pilotage, and a low-level radioactive waste repository. The commission does not regulate the rates of broadband services, cellular, cable, or Internet service.

About PSE

Bellevue-based Puget Sound Energy is a subsidiary of Puget Energy. PSE provides service to around 1.2 million electric customers and nearly 900,000 natural gas customers in 10 Central and Western Washington counties.

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