Families Want Lower Costs and Less Pollution: Public Interest Groups Push Washington's Largest Utility to Lower Rate Increases and Meet Clean Energy Laws

Puget Sound Energy's proposal seeks major rate increases and costly new gas infrastructure

Contacts

Jan Hasselman, Senior Attorney, Earthjustice, [email protected]

Alyssa Mayeda, Washington Conservation Action, [email protected]

Stephanie Noren, Climate Solutions, [email protected]

Climate, environmental, and social justice organizations filed testimony today urging the Washington Utilities and Transportation Commission (UTC) to reduce the proposed rate hike from Washington's largest utility and hold it accountable to meet the state's clean energy goals.

The groups outlined a path for Puget Sound Energy to rapidly expand clean energy and achieve greater energy conservation while limiting further investment in expensive, outdated fossil fuel infrastructure. The utility is required by state law to reduce its climate pollution over time and has ample pathways to achieve this.

The advocacy groups, represented by Earthjustice, filed the testimony as part of their intervention in a rate hike request by PSE before Washington's public utility commission. The utility is seeking to raise its customer rates over the next three years by nearly 30% for electricity and nearly 20% for gas.

"Rising energy costs are increasingly of concern to Washington families," said Julian Santos, Climate and Clean Energy Senior Manager, Washington Conservation Action. "To keep customer bills in check, Puget Sound Energy must refrain from further investments in dirty, expensive, and inefficient gas plants, like TransAlta's Centralia Plant. Instead, we're encouraging PSE to increase efficiencies that conserve resources while building a more resilient and affordable system powered by clean energy."

"Investing in clean energy costs money, but the clean energy transition has already proven to be a good deal for PSE customers," said Lauren McCloy, Utility and Regulatory Director for the NW Energy Coalition (NWEC). "Now, PSE is bypassing rules and processes that allow the UTC to keep energy affordable and reliable, and asking ratepayers to foot the bill for expensive new gas plants while rejecting cheaper, cleaner alternatives."

"We have an opportunity here to center communities that have historically been disadvantaged and harmed by energy systems relying on fossil fuels. Clean and affordable energy must reach frontline communities," said Aqsa Mengal, Climate and Clean Energy Lead, Front and Centered. "PSE has made admirable efforts to do just this, and we propose ways that they can further ensure the benefits of the energy transition improve the well-being of frontline communities."

Some of the key points in the testimony filed today include:

• A recommendation that the Commission reject PSE's costly proposal to acquire a 17-year contract for a gas-fired power plant, and two other gas peaker plants, that far outweigh the cost of renewable alternatives and do not contribute to PSE's compliance with Washington clean energy laws. Capital spending to convert the aging Transalta coal plant into a gas plant is estimated at $600 million.

• Recommendations that the Commission order PSE to immediately implement a general building electrification program to encourage adoption of heat pumps and assess alternatives to new gas investments.

• Support for PSE's Time-of-Use program proposal and a request that the Commission direct PSE to continue to provide bill discount rate participants with bill protection, provide installation assistance and customer education, and reject PSE's proposal to revert to pre-pandemic credit and collections practices.

Here are links to the testimony filed today with the Washington Utilities and Transportation Commission:

• Lauren McCloy, NWEC, explains how PSE is not on track to meet CETA targets and summarizes the recommendations of the joint environmental advocates.

• Liz Stanton, Applied Economics Clinic, reviews PSE's proposed investments in new gas-fired electric power plants and recommends the Washington Utilities and Transportation Commission not approve them.

• Brad Cebulko, Current Energy Group, reviews PSE's proposed investments in gas infrastructure and recommends significant changes to bring the gas system into alignment with state clean energy goals.

• Aqsa Mengal, Front and Centered and Charlee Thompson, NWEC, review equity and energy provisions in PSE's programs and make recommendations for improvements.

• Danielle Velez, NRDC, recommends adopting a program to reduce investments in new gas service lines.

• Megan Larkin, Climate Solutions, evaluates whether PSE's gas systems comply with the Climate Commitment Act and whether that compliance appropriately balances risks between PSE's shareholders and its customers.

Background

Puget Sound Energy provides electricity to 1.25 million ratepayers and gas to around 900,000. Because of its size, PSE's rate proceedings carry an outsized importance and often set a benchmark for other gas and electric utilities in the Northwest. 

Additional Resources

• About the Northwest Office

About Earthjustice

Earthjustice is the premier nonprofit environmental law organization. We wield the power of law and the strength of partnership to protect people's health, to preserve magnificent places and wildlife, to advance clean energy, and to combat climate change. We are here because the earth needs a good lawyer.