Natural Gas Supply
Puget Sound Energy introduced Washington territory to gas lighting in 1873. Today we operate the state's largest natural-gas distribution system serving nearly 800,000 gas customers in six counties.
We manage a strategically diversified gas-supply portfolio to reduce financial risks and hold down customers' rates. PSE also controls gas-supply costs by storing gas in large underground facilities, then withdrawing it in winter when customer usage is highest.
All the gas we acquire is transported into our service area through large interstate pipelines owned and operated by another company. Once we take possession of the gas, it is distributed to customers through more than 26,000 miles of PSE-owned gas mains and service lines.
PSE controls its gas-supply costs by acquiring gas, under contract, from a variety of gas producers and suppliers across the western United States and Canada. To obtain gas at the most favorable price, we carefully analyze gas-market trends and conditions, then strategically procure gas under a mix of short-, medium- and long-term contracts. The combined price we pay for natural gas under these contracts is passed along to you at cost, with no mark-up or profit for PSE. Another cost-saving measure involves flexible gas-transportation agreements with suppliers that enable us to selectively purchase gas from favorably priced locations.
We purchase 100 percent of the natural-gas supplies needed to serve our customers. About half the gas is obtained from producers and marketers in British Columbia and Alberta, and the rest comes from Rocky Mountains states.