PSE files three year electric and natural gas rate plan
Rate plan supports safe, reliable service, growing energy demand, and compliance with state clean energy policies
Bellevue, Washington (2/27/2026) Puget Sound Energy (PSE) has filed a rate plan request for 2027 through 2029 with the Washington Utilities and Transportation Commission (UTC).
The rate plan reflects the substantial capital investments PSE must make to continue delivering safe and reliable natural gas and electric service to its approximately 1.7 million customers, ensure sufficient capacity to meet growing energy demand, and continue making progress toward Washington state’s clean energy requirements.
In Washington, any proposed rate changes for an investor-owned utility undergo a review process of up to 11 months by the UTC, which has the authority to set final rates that may differ from PSE’s requests based on the results of its review.
“Any increase in monthly bills is difficult for the families and businesses we serve. We take that seriously,” said Mary Kipp, president & CEO of Puget Sound Energy. “At the same time, our customers count on us for safe, reliable energy, and many expect that energy to become cleaner in line with Washington’s climate laws. This rate plan reflects the balance we must strike: keeping our gas and electric system strong and dependable, investing in cleaner resources that will power our future, and doing so as responsibly and thoughtfully as possible.”
Maintaining and modernizing critical infrastructure
Over the next three years, PSE needs to invest more than $3.2 billion in its gas and electric system.
Approximately 70% of that investment goes toward the electric system, which is under increasing strain. Electric system investments focus on system safety and reliability, meeting growing customer demand and hardening PSE's infrastructure against more severe weather and wildfire risks. These projects reduce outages, shorten restoration times, and strengthen the grid’s resilience to storms and other threats, ensuring customers receive safe, reliable, high-quality energy service daily.
The plan also supports localized energy resources—such as solar, storage and managed EV charging—giving customers greater control over their energy supply and enabling a more modern grid with a two-way flow of energy.
The remainder of that investment—about 30%—preserves system safety and maintains current infrastructure for PSE’s nearly 900,000 natural gas customers.
Investing in clean energy, generation resources for capacity
Under state law, PSE must meet a major milestone by 2030-2033: provide 80% of electricity from renewable or non-emitting resources.
The rate plan includes 11 new utility-scale renewable energy projects—these wind, solar and battery projects, located primarily in Washington and Montana, help close the gap but do not completely meet state requirements.
New clean energy generation resources include the recently announced Schnebly Coulee solar project in Kittitas County, the Appaloosa Solar Project in Southeastern Washington that is currently under construction, and the Haymaker Wind Farm in Montana.
Included in the rate plan are $529 million in federal tax credits that will directly benefit customers by reducing costs of new generation projects added during the rate plan. Due to changes in federal tax law, these credits are expiring, creating an urgency to complete projects quickly. In addition, customers will see a benefit of $246 million from tax credits on the recently completed Beaver Creek Wind Facility.
The filing also covers capacity resources—batteries, gas turbines and gas generation—to support reliable service when the sun isn’t shining and the wind isn’t blowing, and to meet growing customer energy demand.
PSE’s capital spending plan for all new generation resources being built to meet customer demand and comply with state clean energy targets amounts to more than $3.6 billion. The recovery of these project costs will be spread over decades.
PSE has already successfully eliminated coal from its energy portfolio at the end of 2025 and added 22 long-term clean energy resources totaling more than 4,000 MW since 2019, when the Clean Energy Transformation Act was passed.
Supporting customers struggling to pay their bills
PSE offers a suite of energy saving and bill assistance programs focused on supporting customers who are energy burdened, spending more than 6% of their household income on energy bills.
Additionally, PSE is expanding customer incentives to reduce demand at times of peak use, helping offset the need to acquire power when it is most expensive. The rate plan includes a proposal to make the current time-of-use pilot a permanent program for all customers—participating customers receive a lower rate for switching their energy use to times when demand is low.
PSE is also adding a new “Peak Time Savings” program. Customers who choose to participate can save $.50/kWh during Flex events that are called by PSE when demand is predicted to spike. Customers can save more—$1/kWh—by enrolling in PSE’s existing Flex Rewards program.
PSE is requesting to recover more than $1.5 billion over the three-year rate period (2027-2029). If the request is approved by the UTC, a typical residential electric customer using 800 kWh per month would see a monthly bill increase starting in early 2027 of approximately $28, about $7 in 2028 and nearly $16 in 2029. A typical natural gas residential customer using 64 therms per month would see a monthly bill increase of about $14 in early 2027, about $4 in 2028 and nearly $5 in 2029. For more information, please visit pse.com/2026.
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|
|
2027 |
2028 |
2029 |
|---|---|---|---|---|
| Residential | 7 (307) (327) | 16.75% | 3.76% | 8.81% |
| Sec Volt Gen Svc | 08 (24) | 13.69% | 3.64% | 8.46% |
| Sec Volt Gen Med Dem Svc | 7A (11) (25) | 13.17% | 3.72% | 8.53% |
| Sec Volt Gen Lg Dem Svc | 12 (26) (26P) | 13.82% | 3.96% | 8.94% |
| Sec Volt Irrig & Pump Svc | 29 | 12.35% | 3.90% | 8.74% |
| Pri Volt Gen Svc | 10 (31) | 11.93% | 3.86% | 8.73% |
| Pri Volt Irrig & Pump Svc | 35 | Proposing to close | ||
| Pri Volt Intr Elec Sch | 43 | 13.64% | 4.01% | 9.15% |
| High Volt Intr Svc | 46 | Proposing to close | ||
| High Volt Gen Svc | 49 | 6.28% | 3.99% | 8.50% |
| Retail Wheeling | 448 - 459 | 4.73% | 0.00% | 0.00% |
| Special Contracts | SC | -12.49% | -2.04% | -3.06% |
| Area & Street Lighting | 03, 50-59 | 32.11% | 3.53% | 9.07% |
| Transportation Electrification | 558 | 31.56% | 3.48% | 8.93% |
|
|
|
2027 |
2028 |
2029 |
|---|---|---|---|---|
| Residential | 23,53 | 13.32% | 3.04% | 3.47% |
| Residential Gas Lights | 16 | 13.64% | 4.00% | 4.73% |
| Commercial & Industrial | 31 | 16.84% | 3.62% | 4.13% |
| Large Volume | 41 | 10.71% | 2.57% | 2.95% |
| Interruptible | 85 | 7.17% | 1.71% | 2.06% |
| Limited Interruptible | 86 | 7.43% | 1.48% | 1.66% |
| Non-exclusive Interruptible | 87 | 6.56% | 1.81% | 1.68% |
| Commercial & Industrial Transportation | 46 | Proposing to close | ||
| Large Volume Transportation | 41T | 22.69% | 3.53% | 3.97% |
| Interruptible Transportation | 85T | 20.24% | 4.10% | 4.53% |
| Limited Interruptible Transportation | 86T | 15.36% | 5.37% | 4.85% |
| Non-exclusive Interruptible Transportation | 87T | 26.31% | 4.82% | 5.76% |
| Exclusive Interruptible Transportation | 88T | 16.50% | -6.08% | 0.00% |
| Contracts | 5.17% | 13.52% | 15.52% | |
Media Contact:
Melanie Coon, 1-888-831-7250, psenewsroom@pse.com
Puget Sound Energy is proud to serve our neighbors and communities in 10 Washington counties.
We’re the state’s largest utility, supporting approximately 1.2 million electric customers and 900,000 natural gas customers.
We aspire to be a beyond net zero carbon energy company by 2045.
For more about us and what we do, visit pse.com. Also follow us on Facebook and Twitter.