Washington Electricity Rates Are Going Up – A Lot, and Fast

Brace Yourself Washington. Your electricity rates are going up; way up.

In the Pacific Northwest, most of our power comes from hydroelectric dams. But when these dams need repairs, power companies use natural gas instead. While dams don’t need yearly fixes, their repairs are expensive when needed. These costs get passed on to customers, making electric bills go up.

In recent years, pricier electricity and higher natural gas costs have led to a big jump in power bills across Washington. Seattle homeowners alone saw a 10% rise in energy costs from 2022 to 2023, the fastest increase in ten years. Scott Montgomery, who teaches at the University of Washington, says “the price hike is due to upgrading power lines and delivery systems.”

On February 16, 2024, Washington’s largest utility, Puget Sound Energy (PSE) filed a two-year rate plan with big rate increases for their electricity and gas users. Electricity rates will increase 6.9% in 2025, and a whopping 9.6% in 2026. PSE doesn’t serve Seattle, but instead serves other cities and many rural areas, showing rising electricity rates aren’t just a Seattle problem.

With this going on, it’s obvious why more homeowners are looking at solar power. Solar systems qualify for a 30% federal tax credit and are exempt from Washington sales tax, making solar a great investment. Putting in solar now can protect you from future power rate hikes before they happen, cutting the growing costs of owning a home and daily living. And if you switch from gas heating and hot water to electric appliances, a solar system can save you even more money.

READ: Is Solar a Good Investment?

PSE Electricity Rate Increases:

PSE Gas Rate Increases:

Source: PSE.com