The typical Puget Sound Energy (PSE) residential customer will see an increase of about $8.40 per month on natural gas bills starting Nov. 1, a hike of about 14.1 percent for those who use 64 therms per month.
That will make the average monthly bill about $68, according to a news release from the Washington Utilities and Transportation Commission (UTC), which approved rate increases at its Oct. 24 meeting in Olympia.
Bellevue-based PSE provides natural gas service to more than 800,000 customers in six Washington counties: King, Kittitas, Lewis, Pierce, Snohomish, and Thurston.
The higher energy bills are due in part to last winter’s colder temperatures coupled with the 2018 gas pipeline explosion in British Columbia, according to the UTC. The October 2018 Enbridge Pipeline rupture disrupted natural gas markets throughout the Pacific Northwest.
On Oct. 9, 2018, a 36-inch diameter natural gas mainline ruptured near Prince George, British Columbia. The Enbridge pipeline serves markets in Canada, Washington, Oregon and Idaho with natural gas production from northeastern British Columbia through the Sumas hub, located on the border between Canada and Washington state. Imports of natural gas at the Sumas hub, which averaged 1.1 billion cubic feet per day in the first half of 2018, fell to zero for a day after the rupture. About half of Washington’s natural gas supplies come from the Canadian provinces of British Columbia and Alberta.
On Oct. 31, 2018, Enbridge announced that it had successfully completed repairs on the ruptured section of the pipeline, but capacity delays continued through the winter of 2019.
Natural gas companies are required to submit purchased gas cost adjustment (PGA) filings at least every 15 months to adjust rates based on the constantly changing cost of natural gas in the wholesale market. The cost of gas purchases are passed on to customers; companies do not profit from or lose money on gas purchases.
The UTC also approved rate adjustments ranging from 4 to 15 percent for Avista, Cascade Natural Gas and NW Natural natural gas customers. The variation in total gas rates among Washington’s investor-owned utilities is due to regional differences in monthly residential usage, supply sources, conservation and energy efficiency programs, low-income program costs and company gas purchasing practices.
The UTC regulates the private, investor-owned natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.
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