AG Brown Challenges PSE Rate Plan That Could Add $871 a Year

By BRIAN HENDERSON · July 30, 2026 · PNW Daily

OLYMPIA, Wash. — Washington Attorney General Nick Brown is challenging a proposed Puget Sound Energy rate plan that could add nearly $871 per year to the combined electric and natural gas bills of a typical household by 2029.

PSE wants to raise electric rates by about 29% and natural gas rates by about 20% over three years. The proposal would allow the utility to collect an additional $3.396 billion from customers, according to the Attorney General’s Office.

“We need to fight to keep Washington affordable for everyone. PSE should only raise prices on consumers when necessary and reasonable, and we do not think that is the case here.”

Washington Attorney General Nick Brown

Typical Electric Bill Could Reach $210 Per Month

PSE filed its three-year rate plan with the Washington Utilities and Transportation Commission on Feb. 27. The commission can approve, reject or modify the request.

Under the proposal, a typical residential electric bill based on 800 kilowatt-hours per month would increase from $159.46 to $187.77 in February 2027. That represents a monthly increase of $28.31.

Additional increases would bring the typical electric bill to $194.35 in 2028 and $210.04 in 2029. Therefore, the average customer would pay $50.58 more per month, or $606.96 more per year, than under current rates.

Meanwhile, a typical natural gas bill based on 64 therms per month would increase from $105.37 to $119 in February 2027. It would then reach $122.78 in 2028 and $127.33 in 2029.

That amounts to an increase of $21.96 per month, or $263.52 per year, by 2029.

The figures represent average bills. Individual increases would depend on energy use, optional services and assistance programs.

Attorney General Proposes $695 Million in Savings

Brown’s office filed expert testimony Tuesday arguing that PSE’s requested increases are excessive and unreasonable.

The Attorney General’s Office wants the commission to lower PSE’s authorized return on equity from the company’s requested 10.8% to 8.17%. PSE’s current authorized return stands at 9.9%.

Additionally, Brown wants shareholders to cover a larger share of expenses related to insurance, investor relations, executive compensation, marketing and lobbying. His office also argues that PSE should improve its estimates of future expenses.

Together, those changes could save customers as much as $695 million in 2027, according to the Attorney General’s Office.

Brown also criticized PSE’s executive compensation. The company’s CEO received $6.4 million in total compensation during 2024, or 55 times the median PSE employee’s pay, according to his office.

PSE paid shareholders $175.9 million in dividends in 2024 and $62.9 million in 2025. The Attorney General’s Office estimates that investor payments account for 12% of customers’ electric bills and 11% of their natural gas bills.

PSE Cites Reliability and Clean-Energy Requirements

PSE says it needs the additional revenue to support more than $3.2 billion in gas and electric infrastructure investments.

According to the company, more than 70% of that investment would support electric system safety, reliability, growing demand and protection against severe weather and wildfires.

The plan also includes 11 utility-scale renewable energy projects. PSE says those projects will help it meet a state requirement to obtain 80% of its electricity from renewable or non-emitting resources by 2030 through 2033.

PSE provides electricity to approximately 1.2 million customers and natural gas to about 900,000 customers. As a privately owned utility operating under state regulation, PSE cannot change customer rates without UTC approval.

The commission’s review could take up to 11 months. Final rates may differ from PSE’s request.

Brown Opposes Shifting Market Risk to Customers

The Attorney General’s Office also opposes a PSE proposal involving unexpected power-market costs.

Customers and the company currently share costs when market power becomes more expensive than PSE predicted. Under the proposal, customers would assume 100% of those additional costs, according to Brown’s office.

Those expenses would come on top of the proposed rate increases. Brown’s office said PSE has not estimated how much the change could cost customers.

Public Hearings Scheduled

The UTC will hold an in-person public hearing at 6 p.m. Sept. 29 at its headquarters, 621 Woodland Square Loop SE in Lacey.

A virtual hearing will begin at 6 p.m. Oct. 7 through Zoom and by telephone. The commission encourages participants to call 888-333-9882 at least one day before the hearing to sign in.

People may also submit comments online through the UTC website, email comment@utc.wa.gov, call 888-333-9882 or mail comments to:

Utilities and Transportation Commission
P.O. Box 47250
Olympia, WA 98504

Comments should identify Puget Sound Energy and reference docket UE-260005 for electric service or UG-260006 for natural gas service.

Frequently Asked Questions

How much could PSE’s rate plan add to a typical household’s bill?

The combined increase could add nearly $871 per year to a typical household’s electric and gas bill by 2029, according to the Attorney General’s Office.

What is Attorney General Nick Brown challenging?

Brown’s office filed expert testimony arguing that PSE’s requested 29% electric and 20% gas rate increases over three years are excessive and unreasonable.

How much could Brown’s proposed changes save customers?

Lowering PSE’s authorized return on equity and shifting more costs to shareholders could save customers as much as $695 million in 2027, according to Brown’s office.

What other change does Brown’s office oppose?

Brown’s office opposes a PSE proposal that would shift 100% of unexpected power-market costs onto customers instead of sharing them with the company.

How can the public weigh in on PSE’s rate request?

The UTC will hold an in-person hearing Sept. 29 in Lacey and a virtual hearing Oct. 7, and the public can also submit comments online, by mail or by phone.