Pony up: PSE rate hikes approved

SEATTLE -- Electricity rates will increase 3.34 percent this year for Puget Sound Energy customers, and natural gas rates will also go up 1.55 percent.

The rate hike is part of a multiyear rate plan approved by state regulators on Tuesday. The plan raises electric and gas rates beginning July 1, but will limit increases over the next three to four years.

The average PSE customer using 1,000 kilowatt hours-per-month can expect to see their electric bill increase by $3.24 a month for a total of $100.33 a year. Natural gas customers using 68 therms a month would pay $1.28 a month more for a total of $77.89 a year.

During the next three to four years, the company is allowed to increase rates a maximum of 3 percent of PSE's annual revenue with any excess amounts above the 3 percent recovered in the following year.

Among the reasons for the new multiyear rate plan is to provide PSE with incentives to cut costs, according to state regulators. The hope is that savings for PSE will ultimately benefit customers.