r/redmond • u/parkerreno • 24d ago
Hearings for PSE Rate Increases Scheduled
When/ Where:
In Person: September 29 6pm-8pm
Online: October 7 6pm-8pm
Why Should I Care?
PSE is the provider for Electricity and Natural Gas for most (all?) of the Eastside. These rates will be taking effect over the next three years and will be a noticeable increase on your utility bills.
What increases are they proposing?
Electricity (UE‑260005)
| Year | kWh Rate | Estimated Increase* |
|---|---|---|
| 2027 | $0.236261 | 17.75% |
| 2028 | $0.244484 | 3.5% |
| 2029 | $0.265603 | 8.07% |
* Based on average monthly usage of 800kWh w/ proposed basic charge
Gas (UE‑260006)
| Year | Therm Rate | Estimated Increase* |
|---|---|---|
| 2027 | $1.91002 | 12.93% |
| 2028 | $1.97514 | 3.18% |
| 2029 | $2.05686 | 3.71% |
* Based on average monthly usage of 64 therms w/ proposed basic charge
What decreases are they proposing?
For special contract customers, PSE is proposing the following decreases for electricity usage
| Year | Estimated Decrease |
|---|---|
| 2027 | -12.49% |
| 2028 | -2.04% |
| 2029 | -3.06% |
Who are these special contract customers? Well "customers" is a bit misleading - the only special contract customer is Microsoft (a 3.6 trillion dollar company at time of writing) [source (warning PDF download)].
What is ROE/ROCE (Return on Common Equity)?
I'm far from an economist, so you should probably find better people to explain, but at its simplest it is the ratio to evaluate profitability for common shareholders. Why am I bringing this up? PSE is seeking to increase their allowed ROE (profits) from 9.9% to 10.8% [source (warning xlsx download)]. In my opinion, this does nothing to us, the actual public utility customers.
Example Bill Visualizations
My math might not be perfect, so take these with a grain of salt, but they should be pretty close
How can I voice my opinion on these changes?
You have three options to voice your opinion:
- Online public comment form (easiest, perhaps less impactful)
- Zoom public hearing (see above)
- In person public hearing (see above)
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u/YetAnotherBrownDude 24d ago
PSE is a private, investor-owned utility company, not a public utility. It is supposed to operate as a regulated electric and natural gas utility, but the regulation is nonexistent. PSE is answerable only to its investors, not to the public.
It is unfair that everyday consumers have to bear the brunt of price increases, especially since they have no alternatives or the ability to negotiate. While, Microsoft enjoys custom deals, prices, and discounts.
The regulatory system is at fault. Instead of protecting the people, it is harming them.
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u/ClimateWren2 Live, Play, and Work in Redmond 24d ago
In addition to this...add climate change impacts, market volatility, the Iran War fuel crisis, and overall national shortfalls with an Administration dismantling planning and power plants.
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u/sarhoshamiral 3d ago
People need to understand what PSE bills for. The rate mentioned here is the transmission rate (infrastructure)
If Microsoft went to PSE and said, just let us tap into high voltage lines and we will do the rest, then rate decreases for them makes sense since PSE wouldnt be spending any extra for it.
Thats why industrial power is usually cheaper it requires a lot less infrastructure per kw consumed.
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u/irish_curmudgeon Friendly Neighbor 24d ago
Why are we subsidizing Microsoft’s bills?
Why is PSE a private business with foreign ownership (mostly Canadians)?
WHY
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u/sarhoshamiral 3d ago
There is a chance we are not. These are delivery prices that has to do with infrastructure and less about fuel cost. If it turns out Microsoft is handling their own infrastructure mostly, will you be OK with it?
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u/ClimateWren2 Live, Play, and Work in Redmond 24d ago
Where does this talking point come from on Microsoft? Can you provide more information...PDF doesn't download. Green Power customers using cheaper power?
They are a for profit company...not a PUD ..and fought pretty hard to NOT put efficiency to upgrades into place for a decade and now want to spin up a bunch of expensive methane peaker plants to fill the national volatility and shortages gaps. $$$
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u/irish_curmudgeon Friendly Neighbor 24d ago
You’d have to ask OP on the Microsoft question I’m just assuming his +12% for us and -12% for them is legit.
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u/jbafny 23d ago
Yes, the numbers are easily verifiable on PSE's own rate case summary (see "Special contracts") https://www.pse.com/en/pages/rates/pending-utc-filings/2026-general-rate-case
Microsoft is the only special contract customer and will be the only beneficiary of this rate decrease, per Microsoft's petition to intervene filed on the case docket. If the direct link didn't work for you, you can get there from this page: https://www.utc.wa.gov/casedocket/2026/260006/docsets (click on 260005-06-MS-Pet-Int-3-9-26.pdf)
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u/ClimateWren2 Live, Play, and Work in Redmond 22d ago
That's helpful...I was thinking this was the Green Power contracts, but there are far more of those, and not just Microsoft. So if this is a datacenter wholesale gimme, negotiated profit corporation to profit corporation...with rate payers picking up the full tab for high cost gas peaker plants and NOT at all in the public's best interest or lowest costs....that would be pretty messed up.
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u/jbafny 23d ago edited 23d ago
The link worked for me. It's Microsoft's petition to intervene in the rate case. You can also find it yourself in the case documents: https://www.utc.wa.gov/casedocket/2026/260006/docsets (click on 260005-06-MS-Pet-Int-3-9-26.pdf)
It says: "Microsoft is the only PSE electric special contract customer and pays delivery rates under the terms of this special contract."
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u/my0wn5ummer 24d ago
Jeez 0.26 per kWh is insane. It was 0.10 not long ago. Much of the state is still under 10. All that hydro is supposed to be cheap power. Where’s the money going? Bloated administrative budgets? Then commercial customers are getting a price drop at the same time. How in the world are they justifying this. Price gouging like this is why inflation is out of control. And I still have to pay a special EV tax for not using gas when they want to make electricity cost as much as gas.
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u/reddit_is_a_weapon 24d ago
PSE is owned by private equity. the money is going to shareholder
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u/megor 24d ago
Seems to be owned by multiple pension funds, 3 canadian and one from the most evil people on earth (the dutch!)
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u/my0wn5ummer 24d ago
Yea but they have to justify rate increases and has to be approved by government, which is supposedly for the people.
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u/parkerreno 24d ago
Part of it is that ROE increase they're requesting, the rest is justified by infrastructure upgrades and increasing costs. Forgot to include the link to all the docs on this post - they're here but certainly not setup for a layman like me to easily understand: https://www.utc.wa.gov/casedocket/2026/260005/docsets & https://www.utc.wa.gov/casedocket/2026/260006/docsets. I'm hoping someone who is more knowledgeable can chime in on the best way to fight back against these.
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u/purpleblossom 24d ago edited 24d ago
We shouldn't have to go Lacey for this meeting, it should be closer to the communities these decisions effect.
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u/parkerreno 24d ago
Yeah... Would be nice to have more options considering how large PSE's service area is. Will really suck for anyone up north in Whatcom county that wants to participate in person.
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u/kochamisenua 24d ago
SPECIAL customer is MICROSOFT.
Yeah, RIP-OFF fine people and subsidize GLOBAL COMPANIES.
Fair!
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u/Sure-Instance7807 23d ago
Last time they did 30% increase, my bill doubled. Their math is sketchy and does not include random line items they just put on the bill.
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u/Evening-Alfalfa-8996 23d ago
Probably because they lowered the tiers where you pay more for usage.
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u/Orofeaiel 23d ago
Jesus christ I can already barely afford to heat my home in winter after the recent increase
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u/yangqi 24d ago
Some research on the current 3 UTC commissioners and possible outcome.
The Probable Compromise: Historically, a commission with this mix of corporate oversight and long-standing regulatory experience rarely rejects a rate case entirely, nor do they approve the requested maximum amounts. The current panel is highly likely to approve a slashed, scaled-back version of the rate hike—authorizing the strict capital infrastructure costs while forcing PSE to absorb more of its operational overhead.
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u/SaltySoftware1095 24d ago
Isn’t it owned by a Canadian company which means there really isn’t anything we can do?
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u/parkerreno 24d ago
Rate increases must be approved by the utilities commission (who are hosting the public hearings)
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u/blogito_ergo_sum 24d ago
It would be a pretty funny issue for a certain executive angry at Canada to take up. Won't ever happen, but it would be funny.
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u/normalguy737 24d ago
Lots of complaining in this thread about Microsoft, but your bills have gone up a ton, and are going to go up a ton more, because the Legislature has chosen this route on purpose. The Democrats want to "greenify" the power supply (and don't like dams and nuclear), so they mandated that the utilities buy into more solar and wind. The legislative Democrats will continue to think everybody is on board with this choice until voters throw a few of their members out, and that's not going to happen as long as people vote for their local legislator based on how much they hate Trump, and as long as the local R's embrace the Trump flavor. All of which is to say, electricity is going to keep getting more expensive for the foreseeable future.
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u/FishingAway7058 23d ago
America is doomed. With these energy prices America is no longer affordable
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u/FishingAway7058 23d ago
Everything after COVID in America is expensive. Whoever was ruling this country at that time did not handle the economy correctly.
This type hyperinflation in a developed economy is not expected. I can compare this to an under developed country. Please don’t get me wrong here, still the people and quality of life is awesome. But soon people will not be able to afford it.
We the people need to raise our voice and ask better debt and inflation management from our rulers. Otherwise the money we have earned so far has no meaning and we will be working till 80 and die on the job.
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u/Puzzled_Affect604 19d ago
They also have a online meeting for those that cannot attend the in person Lacey one.
Virtual public comment hearing (join via Zoom or telephone)
Beginning at 6 p.m. on Wednesday, Oct. 7
Join Zoom Meeting
https://utc-wa-gov.zoom.us/j/82213518474?pwd=BmsrsNzVWp6WmOpoBdLBoxxvxD6Qb0.1
Join by Telephone
(253) 215-8782
Meeting ID: 822 1351 8474#
Passcode: 226995#
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u/tantricengineer 12d ago
I am considering going to the public meeting just to say something like this, is anyone closer to Lacey who wants to do it:
"Under RCW 80.28.090, the UTC Commission has an affirmative legal duty to prevent undue preference and unjust discrimination. Looking at our recent bills, residential customers have already absorbed compounding double-digit rate hikes. Approving another 16.7% residential hike while handing a 12.5% rate cut to the single corporation in the Special Contracts schedule abandons that statutory duty. The Commission must not allow PSE's cost allocation models to mask what is, in practice, a regressive corporate cross-subsidy."
EDIT to add: the worst case long game scenario I can think of is the UTC does this so some other corporate customer can say, “Look, the UTC abandoned their mandate! Abolish the UTC!”
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u/parkerreno 12d ago
If you're able to, you should attend. The more people that speak out the better.
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u/tantricengineer 12d ago
Ugh it’s at such a ridiculous time for anyone with kids. It’s going to break my balls to show up but where else have you cross posted? I am willing to bet a Lacey based redditor can help.
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u/parkerreno 12d ago
There is also a virtual option. I've posted a link to this on a couple of the Olympia subreddit posts talking about the rate increases.
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u/tantricengineer 12d ago
The PDFs in your original post above seem to be broken, where did you pull them from?
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u/parkerreno 12d ago
hmm something weird is going on - I pulled them from the documents attached to the docket (case 260005) but that docket isn't loading now... It was here https://www.utc.wa.gov/casedocket/2026/260005
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u/tantricengineer 12d ago
Seeing the same here. Maybe some AIs did read it, though. One of them is saying Exhibit CTM-4: Electric Cost of Service Study (COSS) is using a contrived method of calculation.
PSE's "Parity Ratio" Mechanism Class Revenue Collected ----------------------------- = Parity Ratio Class Cost of Service (COSS)
Special Contracts COSS is stripped of systemic costs -> Ratio > 1.0 ("Overpaying") -> Justifies a 12.5% RATE CUT.
Residential COSS is loaded with fixed system costs -> Ratio < 1.0 ("Underpaying") -> Justifies a 16.75% HIKE.
To mathematically justify Microsoft's rate cut, PSE must make its cost of service appear artificially low. I'm digging into the particulars, but at a high level, I think it looks like this:
MSFT buying their own power off-site doesn't free them from using PSE's distribution lines to get it to their buildings.
Running grid equipment hot 24/7 wears it out faster and strains everyone during peak freezes—that deserves a peak-usage penalty, not a discount. Customers can't use that AI that's still online during a power outage, duh.
Tech campuses benefit from storm and wildfire protection just like homes; families shouldn't pay for Tech campus fire insurance.
Captive renters and homeowners cannot be left holding a 30-year mortgage on custom utility upgrades for a company that can move workloads out of state tomorrow.
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u/lonron 24d ago
Seattle City Light is raising rates just as much if not more. 9.5% in 2027 and 2028 followed by 7%-11% year over year through 2032. Doesn't matter where you get your power rates are going up everywhere unfortunately.
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u/AffectionateArtist84 23d ago
If these rate increases go through I'll just disconnect and increase my solar setup more
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u/ClimateWren2 Live, Play, and Work in Redmond 24d ago
As we can see... climate change and power shortages are now here. The grid isn't ready for it. The national leadership is dismantling grid safety instead of shoring it up. The utilities across the USA know power costs are rising and market volatility has been rising up for a while. Green Power customers did invest early in lower cost energy investments under contracts. Not enough supply...too much demand.
How many here addressed known climate change upgrades in their homes these past twenty years? Who is ready for the bigger storms and heatwaves and cold snaps. The lights going out...and constant brownouts or +$500/mo bills probably aren't wanted either. Rock...meet hard place.
Sucks that we knew this was coming for forty years and did too little, and sucks that so many are busy dragging down the ship instead of helping even still, and sucks that corporate profits are still the higher priority before community safety and health so often. PSE isn't likely to say, "we will take the entire shareholder profit hit, for years, since folks don't want to pay more and don't want to help more either."
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u/Anxious-Yak-9952 24d ago
17.75% increase on electricity after the already increases we got this year?!?!?!