Pacific Power proposed rate settlement provides customers with lower bills, rate stability to 2024

YAKIMA, Wash. — More than 137,000 Pacific Power customers in central and eastern Washington would see their electric bills go down an average of 1.2 percent, under a proposed all-party settlement filed July 17.

“Pacific Power’s top priority during this uncertain time is to keep prices low while providing customers with safe and reliable electricity and supporting Washington customers’ desire for more renewable generation to power their homes and businesses,” said Stefan Bird, president and CEO of Pacific Power. “We’re proud to have worked with our stakeholders in Washington to achieve this proposed settlement that delivers on all those priorities during a time when low-cost and long-term stability is especially important.”

The proposed settlement, which still requires final approval by the Washington Utilities and Transportation Commission, includes a commitment from Pacific Power to not file another general rate case before 2023. Other highlights of the settlement include:

• Full pass-through of remaining federal tax savings related to the 2017 tax reduction act over five years
• Accelerating depreciation of coal plant investments to remove coal from Washington customer rates by 2023
• Nearly doubling the amount of low-cost wind generation serving Washington customers beginning January 2021
• Creation of a low income advisory committee to continue development of programs and policies to assist low income customers. Issues to be addressed include examining fuel assistance programs and efforts to reduce service disconnections
• Flattened rate structure that equitably allocates costs among energy users

If approved, these changes will take effect Jan. 1, 2021. Rates will differ depending on customer type.

“This was the first full rate case Pacific Power has filed in Washington since 2014,” Bird continued. “In this settlement, we are pledging to not file another case until 2023 with new rates not taking effect until 2024. We are delivering this high level of stability by operating prudently and efficiently, but also without compromising on our vision and values. We have managed to keep rates among the lowest in the nation while investing in our integrated Western energy system to upgrade existing wind power production, acquire new wind and solar generation, modernize and build new transmission to get the power where it needs to go, and pioneer a new western energy market to lower customer costs, maximize renewable energy, and enhance reliability.”