Residents of Washington state are facing increased utility rates as a result of the recently passed cap-and-trade program, according to a report by The Center Square.
The Washington Utilities and Transportation Commission (UTC) approved a request by Puget Sound Energy (PSE) to raise natural gas rates to cover the costs of the state's Climate Commitment Act, which was signed into law by Governor Jay Inslee. However, the UTC mandated that PSE was not allowed to inform customers about the reason behind the rate increase.
PSE, which serves approximately 800,000 customers in six counties, had requested a 3.25 percent increase for all natural gas customers to generate $16.8 million to cover its losses. This would result in a monthly increase of $3.71 or 3.89 percent for a typical household using 64 therms per month. The increase would be implemented through a State Carbon Reduction Charge.
According to Todd Myers, environmental director for the Washington Policy Center, the Department of Ecology had previously claimed that adding a tax on CO2 emissions would reduce natural gas prices. Kathy Taylor, the department's Air Quality Program Manager, wrote a letter stating that at an allowance price of $41 per metric ton of CO2, the price of natural gas would decrease by about 1 percent.
However, the UTC, following a recommendation from the office of Washington State Attorney General Bob Ferguson, prohibited PSE from informing customers about the reason for the rate increase on their bills. Assistant Attorney General Nina Suetake expressed concern about itemizing the State Carbon Reduction Charge and State Carbon Reduction Credit on customer bills, stating that it could make bills incomprehensible. The UTC agreed with this stance and ruled that the proposed 'carbon reduction charge' should not be included as a line item on customer bills.
This decision has raised concerns about transparency and accountability. Todd Myers criticized the UTC's ruling, stating that customers will see their rates go up without knowing why, as PSE is prohibited from informing them. He argued that this not only violates the spirit of Washington's laws and constitution but also undermines transparency.
Furthermore, the cap-and-trade program has resulted in Washington state having the highest gas prices in the US, surpassing even California. This has added to the financial burden faced by residents.
The UTC's decision to prevent PSE from informing customers about the reason for the rate increase raises questions about transparency and accountability. It is essential for customers to have access to information that affects their utility bills. The lack of transparency not only undermines trust but also prevents customers from understanding the impact of government policies on their daily lives.
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