Change will take place in November for PSE residential customers

Electricity bills for Puget Sound Energy residential customers will drop by 3 percent while natural gas bills will rise 5 percent as a result of two actions taken by state regulators Wednesday.

The Washington Utilities and Transportation Commission allowed an uncontested settlement of the general rate case and accepted a reinstated electric power credit program from the Bonneville Power Administration.

BPA suspended the credit program 16 months ago after it was found to not conform with federal law. BPA reinstated the benefits based on a revised method Sept. 22.

About 970,000 PSE residential and small-farm customers will receive a credit on their monthly electric bills as the result of a partial reinstatement of the federal benefits from the region’s low-cost hydroelectric power system.

The new average credit will be about $10 monthly for PSE customers using 1,000 kilowatt-hours and will offset the increase of approximately $7.50 a month granted in PSE’s rate request.

Beginning in November, the average residential electric customer using 1,000-kilowatt hours will see a decrease of about $2.50 a month, resulting in an average bill of $97.50.

Under the settlement, the commission could impose penalties of up to $15 million a year — up from $10 million — if PSE fails to meet service standards, such as a high number of complaints or prolonged and frequent power interruptions. In addition, customers will receive a $50 credit in the event of a power outage lasting more than five days.

The agreement calls for a 98-cent hike in the monthly basic service charge for electricity customers, down from the $3 the company originally requested. For natural gas customers, the monthly service charge will increase by $1.75 to $10. The utility had originally asked for $18 a month.