OLYMPIA, Wash. — The Washington State Attorney General's Office (AG) is opposing proposals by two major energy companies to increase electricity and gas rates, saying the companies are seeking profit margins that are too high and overestimating their costs.
Puget Sound Energy (PSE) and Avista Utilities requested rate increases that would take effect over the next few years.
PSE is requesting to raise electricity rates by $405 million and gas rates by $215 million over the next three years starting in January. The increases would cost the average customer $16 more a month for electricity and $12 more a month for gas, according to the AG.
Avista is requesting a $50.5 million electric rate increase and a $9 million gas rate increase over the next two years starting in December. Electric customers would pay approximately $7 more per month, with gas customers paying approximately $1 more per month, the AG's office estimated.
The AG's Public Counsel Unit asserted neither utility company adequately justified the extent of the rate increases they requested.
Experts for the AG's office determined the utilities have overestimated many of their costs to provide power to their customers. Experts also determined both companies are asking for profit margins that are too high, with PSE requesting a nearly 10% profit margin and Avista requesting 9.4%.
The Public Counsel Unit asserts PSE's request is approximately $188 million too high for electric rates and $112 million too high for natural gas rates. Avista's proposal was deemed to be $47 million too high for electric rates and $7 million too high for natural gas rates.
A PSE spokesperson said the company's requested rate increases enable its transition to clean energy, and allow the company to recoup the cost of upgrades made over the last couple of years:
"Our rate request enables the next phases of our transition to a clean energy future, including meeting the 2030 and 2045 carbon-reduction targets set by the 2019 Washington Clean Energy Transformation Act (CETA), as well as recovery of approximately $3.1 billion in reliability and service upgrades made over the past four years, not currently factored into customer rates.
The proposal also includes nearly $10 million per year in expanded assistance for low-income and economically disadvantaged customers. We’re asking more of our energy infrastructure now than ever before, whether it’s to help withstand the demands of consecutive days of extreme heat, such as we all experienced last week, or to do our part in meeting the challenge of climate change by 2030 and beyond.
Our rate proposal enables our region to lead in supplying reliable, clean energy while also doing more to support those who are struggling in the current economy."
An Avista spokesperson said the company is currently reviewing the testimony submitted to the Washington Utilities and Transportation Commission (UTC) and will formally respond on Aug. 19.
The UTC will have the final say on determining rate changes.
The UTC is hosting virtual public comment hearings in both cases. Zoom links and phone participation information can be found here for Avista and here for Puget Sound Energy.
