Puget Sound Energy filed a proposal with state regulators Monday to increase electric rates by 8.1 percent and natural gas rates by 3 percent for all customers starting in May 2012.
The increases would raise the average homeowner’s monthly electric bill by $8.37 (based on 1,000 kilowatt hours per month) and monthly natural gas bill by about $2.84 (based on 68 therms per month).
PSE officials want to establish new electric and natural gas rates in 2012 to recover the costs of work done to increase electric and gas delivery system reliability and provide a cleaner energy supply for local homes and businesses, according to a company media release.
The rate request is based on energy system improvements made in 2009 and 2010, when PSE invested almost $1.1 billion for new gas and electric delivery infrastructure and new electric generation, including Phase 1 of the Lower Snake River Wind generation facility currently under construction in Garfield County.
The proposed rates, which, if approved, would take effect in May 2012 following the Washington Utilities and Transportation Commission’s 11-month approval process.
In the filing with the commission, PSE seeks to increase annual revenues by $193 million and to set an allowed return on common equity of 10.8 percent and a regulatory capital structure of 48 percent equity. The filing also proposes a conservation savings adjustment mechanism related to the energy efficiency services for business and residential customers.
PSE serves more than 1 million electric customers and 750,000 natural gas customers in 11 counties.
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