Recent volatility in energy markets has caused an increase in electric rates of an average of 12.2 percent for 138,000 Pacific Power customers in Washington. Residential customers will see an increase of 11 percent and other customer groups will see similar increases. The new rates will go into effect May 1.
“The rate change is driven by significant increases in power and natural gas prices for energy we procure and produce to meet our customers’ needs and ensure reliable electric service,” said Matt McVee, vice president of regulatory policy and operations. “Over the last several months, we have seen an increase of almost 80 percent in electricity prices and almost 70 percent in natural gas prices. We actively manage our costs for energy, but the cost of serving our customers is impacted by these changes in the energy market. We know this increase may prove challenging to many of our customers and we have several programs to help you manage your energy bill.”
Power costs are trued up annually through the power cost adjustment mechanism, which may enable Pacific Power to provide a refund to customers if power costs decrease.