Bellevue, WA-based Puget Sound Energy Friday asked state regulators for an overall 13.3% natural gas rate increase, effective Oct. 1, to cover its higher wholesale gas supply costs. The Puget Energy subsidiary made the filing under a “purchased gas adjustment” (PGA) process established by the Washington Utilities and Transportation Commission.

Puget’s utility said that wholesale natural gas prices have been driven steadily upward by market forces of supply and demand since last fall. As a result, the average residential customers will see a 12.2% increase to about $70/month on a year-round basis.

“While there is a plentiful supply of natural gas, and drilling activity is increasing, the current wholesale market is tight primarily due to flat gas production over the past two years, coupled with increased demand,” said Julia Ryan, Puget Sound Energy’s vice president of energy portfolio management, who added that the utility has tried to buffer customers somewhat from the wholesale prices by securing fixed price supplies for a portion of its winter gas needs, and it has replenished its underground gas storage facilities in preparation for the upcoming heating season.

Serving 633,000 natural gas customers in six counties in and around Seattle in western Washington, Puget Sound uses the PGA mechanism to periodically adjust its retail rates to reflect changes in the wholesale natural gas prices. The rate changes are a straight pass-through not affecting the utility’s profit levels.

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