PSE seeks increase in natural gas rates
October 29, 2013
Puget Sound Energy has filed a request with Washington state regulators to increase natural gas rates for the upcoming winter season by an overall 1.5 percent, effective Nov. 1.
If approved by the Utilities and Transportation Commission, the proposed purchased gas adjustment will increase a typical household’s natural gas bill (based on 68 therms of average monthly usage over a 12-month period) by 1.4 percent, or $1.07, to $78.55. That is about what PSE customers were paying in 2010. Commercial rates would increase by about 1.6 percent.
The increase reflects a reduction of a credit included in current rates for the cost of natural gas supplies PSE purchased for customers. While domestic supplies of natural gas are abundant, the wholesale price of natural gas has increased slightly in the past year, according to a press release from the company.
The purchased gas adjustment is a UTC-approved mechanism that allows Washington state’s natural gas utilities to periodically adjust rates, up or down, to reflect changes in the price of the natural gas supplies that utilities purchase and deliver to customers. PSE does not financially profit or lose on the cost of natural gas purchased for customers.