A National Shift Driving Local Costs Higher
Electricity is about to get more expensive across Washington. In 2026, Puget Sound Energy, Seattle City Light, Snohomish PUD, and Tacoma Power will all raise rates for residential customers. While each utility’s increase is different, together they point to a clear trend—higher energy costs are here to stay.
These local changes are happening against the backdrop of recent federal policy shifts. The Inflation Reduction Act, nicknamed the “One Big Beautiful Bill,” is reshaping how solar and wind resources are deployed across the country. As utilities invest in new generation and transmission to meet these requirements, the cost of electricity is expected to rise not just nationally but also here in Washington.
For Washington households, this means planning ahead is more important than ever. Let’s break down what’s changing and how you can prepare.
How Washington Utilities Are Raising Rates in 2026
Every major utility in Washington has already approved increases set to take effect in 2026. While the exact percentage varies, the end result is the same: higher monthly bills for households across the state. For most families, this will add up to an extra $150–$200 per year.
Below we outline the changes coming from Puget Sound Energy, Seattle City Light, Snohomish PUD, and Tacoma Power so you can see how your utility stacks up and what to expect when these hikes arrive.
Puget Sound Energy (PSE)
In 2026, PSE is proposing a 9.30% increase in electricity rates, adding about $11.20 more per month for a typical residential customer using 800 kilowatt-hours. Natural gas rates would rise by a smaller 2.07%, or about $1.51 per month for the average customer.
PSE points to several drivers behind these increases, including upgrades to the Baker River hydro project, deployment of advanced distribution systems to support EVs and rooftop solar, new clean energy from the Beaver Creek wind farm, wildfire prevention measures, and rising operating costs.
The result is higher bills for households, but also long-term investments in cleaner energy, safety, and grid modernization.
Seattle City Light (SCL)
In 2026, Seattle City Light residential customers will pay about $4 more per month, with total increases of around $8 per month over 2025–2026. Utility Discount Program participants will see about $2 more each year. Businesses face increases of 4%–7% depending on their usage.
These adjustments fund investments in clean energy goals, grid reliability, and climate resilience.
Tacoma Power
Tacoma Power customers will see steady increases over the next two years, with the 2026 adjustment adding about $7.09 per month to the average residential bill. Combined with 2025’s increase, that’s more than $13 more per month by the end of 2026.
Rate changes are being driven by higher system operating costs, inflation in materials and supplies, and rising construction costs—up 20–30% over the past three years.
While Tacoma Power’s rates remain lower than many utilities in the region, the 2025–2026 adjustments reflect the growing expense of maintaining reliable infrastructure and preparing for future energy needs.
Snohomish PUD (SnoPUD)
Starting April 1, 2025, Snohomish PUD residential customers will see rate changes that continue into 2026. The base daily service charge for residential accounts is increasing across all service sizes, and the energy charge remains steady at just over 10¢ per kWh. For the average household, this amounts to a 2.5% increase in 2026, or about $2–$3 more per month.
These adjustments reflect higher costs for materials, construction, and operations, as well as potential future adjustments tied to wholesale power costs from the Bonneville Power Administration (BPA).
What’s Next: Time-of-Use Rates in Washington
Alongside rising rates, Washington utilities are beginning to explore time-of-use (TOU) pricing, where electricity costs more during peak demand hours and less during off-peak times.
Seattle City Light, PSE, and Snohomish PUD already have TOU pilots underway, and Tacoma Power is monitoring developments. These programs are expected to expand in the coming years and could significantly change how households are billed for electricity.
We’ll cover what TOU rates mean for your household and how solar and batteries can help you navigate them—in our next blog: Washington Time-of-Use Rate Report. In the meantime please peruse our library of blogs to read up on all things energy in Washington!
Looking Ahead: Policy, Costs, and Clean Energy
The 2026 rate hikes are part of a bigger story. Federal policies like the Inflation Reduction Act and Washington’s Clean Energy Transformation Act are pushing utilities to invest heavily in renewable energy, transmission, and grid upgrades. These investments are vital for meeting climate goals but bring higher near-term costs for customers.
For households, that makes energy independence more valuable than ever. Solar, batteries, and smart panels can help manage rising rates while supporting Washington’s clean energy transition.
Northwest Electric and Solar can help you plan ahead. Schedule a free consultation and see how renewable energy can power your home through 2026 and beyond.
