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PSE Seeks to Lower Natural Gas Rates by 17.1 Percent, Bringing Rates to 2005 Levels

Also Requests Pass-Through of Reduced BPA Credit to Residential and Small-Farm Customers and Slight Increase to Low-Income Program Charge

BELLEVUE, Wash., August 31, 2009 - Puget Sound Energy today filed a request with the Washington Utilities and Transportation Commission (UTC) to decrease natural gas rates for the upcoming winter season by an overall 17.1 percent for all customer groups effective Oct. 1, 2009 on top of a 1.8 percent decrease effective June 1, 2009.

The Purchased Gas Adjustment (PGA) decrease, the second decrease requested this year, would lower a typical household’s natural gas bill (based on 68 therms of average monthly usage over a 12-month period) by 16 percent, or $14.88, to $78.30, about what PSE customers were paying in 2005.

“We are pleased to be able to pass on to our customers these significant savings from the lowest wholesale natural gas prices in several years resulting from decreased demand and ample supplies in the current economy,” said Stephen P. Reynolds, PSE president and CEO.

The PGA is a UTC-approved mechanism that allows Washington state’s natural gas utilities to periodically adjust rates, up or down, to reflect changes in the price of natural gas charged by producers and wholesale marketers. PSE does not financially profit or lose on the cost of natural gas purchased for customers.

PSE also filed two additional requests today with the UTC. One asks the UTC to approve the pass-through—at a reduced level—of the monthly electric-bill credit the Bonneville Power Administration (BPA) provides to PSE’s residential and small-farm customers. The BPA is lowering the amount of federal power benefits it provides to PSE customers on Oct. 1, resulting in a $1.86 reduction in the credit that will lower the average PSE household customer’s monthly credit to $7.27 from $9.14.

The other request asks the UTC to approve a true-up adjustment, which would result in a slight increase to the electric and natural gas rates to reflect the differences between the actual low-income assistance program costs and the revenues collected over the past year. With this adjustment, average natural gas and electric bills each would increase by 1 cent per month.

The rate requests filed today are separate from the general rate case PSE filed May 8, seeking a 2.5 percent increase in natural gas rates and a 7.4 percent increase in electric rates to recover investments made in PSE’s energy-system infrastructure. These proposed rate changes are expected to go into effect in April 2010.

PSE recommends homeowners consider converting their heating systems to natural gas or upgrade or install energy-efficient natural gas appliances, which may qualify for a PSE rebate and federal tax credit.

Customers can also take simple steps now to manage their heating bills this winter and use energy wisely year-round in their homes, including:

• Avoid huge bills in the coldest months by paying a flat rate every month—balancing out winter’s high bills with summer’s low ones—through PSE’s Budget Payment Plan. Customers can call PSE at 1-888-225-5773 to sign up.
• Seal up air leaks around windows and doors.
• Have furnaces inspected and serviced to ensure proper working order.
• Insulate attics, outside walls and floors over crawlspaces.
• Find out if you qualify for PSE’s low-income bill-payment assistance plans, or for weatherization funding for your home. Contact PSE at 1-888-225-5773 to find out more about:
  • PSE’s HELP fund
  • The Salvation Army Warm Home Fund
  • Low-Income Weatherization Program
• Install energy-efficient natural gas equipment. For information about converting to natural gas and obtaining rebates for purchasing efficient natural gas water heaters and furnaces, contact a PSE Energy Advisor at 1-800-562-1482.

For more information about PSE rates, bill-payment assistance and energy efficiency rebates, please visit PSE.com.

About Puget Sound Energy

Washington state’s oldest local energy utility, Puget Sound Energy serves more than 1 million electric customers and nearly 750,000 natural gas customers in 11 counties. A subsidiary of Puget Energy, PSE meets the energy needs of its growing customer base through incremental, cost-effective energy conservation, procurement of sustainable energy resources, and far-sighted investment in the energy-delivery infrastructure. PSE employees are dedicated to providing great customer service and delivering energy that is safe, reliable, reasonably priced, and environmentally responsible. For more information, visit www.PSE.com.

Contact information:

Puget Sound Energy
Martha Monfried, 1-888-831-7250