In 2021, the Washington State Legislature passed the Climate Commitment Act (CCA), which creates a market-based program (called the “cap-and-invest” program) to cap and reduce greenhouse gas emissions. The program puts a price on greenhouse gas emissions emitted in the state and increases the cost to deliver electricity and natural gas to our customers.

What customers can expect

PSE’s natural gas customers will see higher rates reflected on their monthly bills, resulting from costs incurred by PSE to purchase allowances (a compliance instrument) to cover greenhouse gas emissions and comply with the cap-and-invest program. PSE’s natural gas customers may also see a “State Carbon Reduction Credit” to help mitigate the cost of compliance. The total bill impact will vary for customers based on household size, energy usage, and other factors.

The Washington Utilities and Transportation Commission approved the new rates and credits associated with PSE’s compliance with the state’s cap-and-invest program for natural gas customers in 2023.

On May 2, 2025, PSE filed a request with the Commission to cover the cost of allowances PSE expects to purchase for 2023-2025 to comply with the Climate Commitment Act and cover emissions from electric generation under the law.

Learn more about the cap-and-invest program

The state plans to use revenue raised through the cap-and-invest program to invest primarily in new projects that reduce greenhouse gas emissions and help Washington transition to a lower-carbon economy. To learn, visit the Department of Ecology's website.