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WUTC Rejects PSE Rate Hike Request
The Washington Utilities and Transportation Commission (WUTC ) this month rejected a request from Puget Sound Energy (PSE ) for an 18 percent rate hike. The company requested the increase as part of a proposal to pass the cost of electricity directly to customers as they do with natural gas. Consumer advocates charged the PSE proposal amounted to "deregulation without the benefit of legislation to ensure public benefit," said The Energy Project's Chuck Eberdt to The Seattle Times .
In ruling against PSE's request, the WUTC argued the company failed to prove the financial need for the increase. The company argued it needed the additional revenue to cover the increase in wholesale power costs during the last year, to make up for poor hydropower generation and to insulate it from future market risks.
In opposing the request, the Washington Attorney General's Public Council section pointed out that the power market has been working in PSE's favor this year. The company made money selling surplus electricity into the wholesale market. And with market prices falling Public Council argued the company's request was unjustified. PSE maintains the rate hike is still needed but conceded it failed to make a strong enough case for it. The company plans to pursue the increase as part of a its rate case proposal later this year.
Mark Glyde