Facts about Initiative 2066 for PSE natural gas customers
BELLEVUE, Wash. (10/23/2024) The Washington Secretary of State has certified Initiative 2066 for the November ballot.
There has been a lot of misinformation about natural gas since utility planning legislation was passed last spring by Washington state lawmakers. PSE wants our customers to have the facts about how Initiative 2066 and the recently passed legislation impacts their natural gas service.
Initiative 2066 facts
- Initiative 2066 does not change PSE’s existing obligation to serve any customer who wants natural gas. Specifically, there is no ban on natural gas and customers are not being forced to electrify. Customers retain the choice to continue using natural gas if they are currently doing so, and customers building new homes will still be allowed to choose between electricity and natural gas.
- Claims that homeowners will have to pay tens of thousands to convert from gas to electric are misleading. Initiative 2066 repeals state building codes that increase requirements—and thereby costs—for the construction of new homes and buildings for owners who choose to use natural gas for space and/or water heating. There is no requirement for current natural gas customers to convert their appliances to electric.
- Initiative 2066 has no direct impact on customer rates. PSE customers concerned about bill impacts should understand that PSE’s rates are set by the Washington State Utilities and Transportation Commission (UTC) as part of a separate process. The legislation passed this spring—House Bill 1589—did not change that either.
- Initiative 2066 repeals some aspects of the planning required by House Bill 1589 and reinstates natural gas conservation measures, while leaving most of the rest of the new law in place.
House Bill 1589 facts
- House Bill 1589, passed by the state legislature in March 2024, is a planning bill. It will help PSE, under the supervision of the UTC, thoughtfully plan for the electric and natural gas choices of our customers consistent with our state’s aggressive climate goals.
- There has been a lot of misinformation about House Bill 1589 as it changed over the course of two legislative sessions, from when it was first introduced in January 2023 to passage by the legislature in March 2024.
- As passed by the legislature and signed into law, House Bill 1589 does not include a ban on natural gas, and it does not change PSE’s obligation to serve natural gas to our customers.
- There is no rate increase associated with House Bill 1589. It is a planning bill, and there will be three years of rulemaking and work before we submit an integrated system plan to our regulators. That will only be a plan—it will not include a request to increase rates.
- Nothing in the bill forces electrification. What it does is require PSE to develop a scenario demonstrating the costs of electrification that will be part of the integrated system plan we submit to our regulators in 2027.
FAQ
How will existing customers get natural gas service?
Same as you do now. Initiative 2066 does not change PSE’s existing obligation to serve any customer who wants natural gas. Specifically, there is no ban on natural gas.
Will I have to switch my home to all electric? How am I going to pay for that? PSE’s own study says this will cost thousands.
No. The legislation passed last spring does not include a ban on natural gas or any changes to PSE’s obligation to serve natural gas.
As part of the integrated system plan that PSE will submit in 2027, we will be required to show whether electrification is cost effective. We do this today—an example is the extensive planning we do to establish which energy efficiency measures are most cost effective. Some pencil out. Others do not, including the heat pumps that we have studied. If the cost of electrification doesn’t change by a good bit, the plan won’t show it as cost effective. And we won’t pursue electrification under our obligation to provide service at the least cost to our customers.
We know many consumers are choosing to electrify their homes and businesses and are taking advantage of state and federal incentives. PSE’s role is to serve the energy choices of our customers, now and in the future.
How much will my monthly bill increase?
Initiative 2066 has no direct impact on customer rates. PSE customers concerned about bill impacts should understand that PSE’s rates are set by the Washington State Utilities and Transportation Commission (UTC) as part of a separate process. The legislation passed this spring—House Bill 1589—did not change that either.
PSE wants to combine rates for natural gas and electric customers. I hear this will push rates higher and that I might have to pay for costs associated with a system that I am not even served by. How can that be right?
We do not currently have a proposal to do this nor do we expect to make one soon. To make a change of that magnitude, our regulators would have to agree that it provides a net benefit to customers and includes reasonable rate protections for low income customers. There would be an extensive examination and public process with multiple opportunities for customers and others to have a say in the decision making before anything happens.
Will I be able to add gas to my home or business for cooking, heating or water heating?
New State Building Codes went into effect on March 14, 2024. The new codes include increased requirements for the construction of homes and buildings for owners who choose to use natural gas for space and/or water heat, making it very difficult to use natural gas at those properties.
Initiative 2066 would repeal those State Building Codes.
Why can’t I receive a rebate or incentive for natural gas appliances and equipment?
- Residential customers will no longer be able to receive rebates for natural gas appliances starting Jan. 1, 2025. This was added to House Bill 1589 to reduce the financial incentive to continue using natural gas.
- Commercial and industrial gas customers will no longer be able to utilize rebates for natural gas appliances and equipment effective Jan. 1, 2031. This was added to House Bill 1589 to reduce the financial incentive to continue using natural gas.
What happens if I am a PSE gas customer but served by a different electricity provider (Seattle City Light, SnoPUD, Tacoma PUD)?
Nothing. You will continue to receive natural gas from PSE if you do not choose to electrify your appliances.
If there are no changes to natural gas service for existing customers, why am I getting emails from PSE offering a free home electrification assessment?
While House Bill 1589 does not change how we serve our customers today, we realize there is growing interest among our customers in electrification for a variety of reasons. PSE’s free electrification assessments provide customers with information so they can decide what is best for their home or business. The assessments are informational-only, there is no obligation to do anything after receiving the assessment.