Washington state regulators last Thursday approved an overall 16% decrease in retail natural gas utility rates of Puget Sound Energy (PSE) attributed to the continued slide in wholesale gas prices. The lower rates become effective this Thursday, the Washington Utilities and Transportation Commission (WUTC) said, adding that at the same time a small electric increase will take effect.

It is PSE’s second gas rate decrease this year, with WUTC approving a request to lower natural gas rates nearly $15/month for an average residential customer using 68 therms monthly. Average monthly bills will be about $78.30 this fall. The electric rate increase will amount to a little less than $2/month due to a lowered credit for federal power supplies.

PSE requested that the WUTC approve two rate adjustments for electricity service. The federal Bonneville Power Administration beginning Oct. 1 will pay the Bellevue, WA-based combination utility a reduced amount of federal power benefits, which translates into a smaller bill credit to residential and small farm customers. The credit is set to go from $9.14 to $7.27 monthly.

“Natural gas customers will soon begin to crank up the heat in response to cooler temperatures, so I am pleased that they can expect noticeably lower heating bills this winter,” said WUTC Commissioner Patrick Oshie. In June the WUTC approved a decrease of about 1.7%, or $1.62 monthly, for residential customers.

Regulators stressed that their decisions for PSE’s gas and electric rate requests are separate from a general rate case filed by the company in May. In that proceeding, the utility is seeking a 2.5% increase in natural gas rates and a 7.4% increase in electric rates. The WUTC said it will issue a decision on that request by next March.

“Natural gas companies are required to adjust rates periodically to reflect the changes in wholesale prices,” the WUTC said. “Cascade Natural Gas and Avista have already dropped rates twice this year. Northwest Natural Gas has a decrease currently pending before the commission. The companies are not allowed to earn a profit on gas commodity rate changes.”

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