The Building Industry Association of Washington (BIAW) has activated its membership to fight proposed tariff increases for new electrical service that will drive up the cost of home ownership in Washington.

Puget Sound Energy (PSE) proposes a nearly 30% tariff increase for standard charges for a new line extension and a new service line and a 37% tariff increase for line extensions to plats. The request is currently before the state’s Utilities and Transportation Commission (UTC).

“These increases will be catastrophic to the home building industry in Washington state,” said BIAW Legislative Director Andrea Smiley. “Already 80%of households in Washington can’t afford a median-priced home. Every added cost prices more households out of home ownership.”

Washington needs a million more homes families can afford

According to the Washington Department of Commerce, “the state needs to add 1.1 million homes over the next 20 years, and more than half of them need to be affordable for residents at the lowest income levels.” In 2024, less than 50,000 building permits were issued across the entire state.

“Washington residential home builders struggle to keep up with the demand for new and affordable housing in Washington,” Smiley said. “Ever-rising costs of materials, permits, impact fees, and other regulatory costs only make it worse.”

 PSE’s proposed tariff increases are too high

The most efficient way to build homes in many counties in Washington is to build single- and multi-family residences on undeveloped plats. PSE proposes increasing the tariff on extending lines to new plats by 37% -- bringing the new cost to $82.69 per foot.

PSE is the only company that can provide electrical service in their service area so builders must rely on PSE for electrical service to their new single- and multi-family homes.

 “Builders in PSE’s service area cannot bear the cost of this nearly 40% increase,” Smiley said. “Because they have to show a level of profit to qualify for financing to build new homes, they will be forced to pass this cost on home buyers, making new homes even less affordable”

 The proposed tariff increases mean new home buyers will bear cost increases anywhere from $760 to $1,500 per plat.

Urge the UTC to reject PSE’s tariff proposal

In testimony submitted earlier this week, BIAW urged the UTC to “consider the harm a 30% to 40% tariff increase for PSE-exclusive services will cause homeowners, home builders, and the public.”

“An increase of this magnitude is unsustainable and unconscionable for a mandatory service (electricity) from the only company that can provide service in these areas (PSE),” Smiley said in her letter to the UTC. “BIAW formally requests that the UTC deny or amend PSE’s current tariff increase to a more manageable rate.”

Public comment encouraged

Comments can be sent directly to comments@utc.wa.gov. Please be sure to include the docket number UE-250114 in both the letter and the email's subject so it is routed correctly.

 There’s also a public comment form available: https://www.utc.wa.gov/consumers/submit-comment/public-comment-form

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