PSE Requests to Pass Through Adjusted Wind-Power Credit to Customers

Puget Sound Energy filed late Friday (Oct. 31) with the Washington Utilities and Transportation Commission a request to pass through an adjusted federal Wind Power Production Credit that would further reduce bills for the utility’s more than 1 million electric customers effective Jan. 1, 2009.

The credit is due to a federal income tax benefit derived from PSE’s ownership of two wind power generating facilities—Wild Horse and Hopkins Ridge—located in Central and Eastern Washington, respectively. The credit, in effect since 2007, is adjusted annually based on the power output of the wind facilities.

If approved by the UTC, the wind credit will increase by 28 cents and bring the total monthly credit to $1.68 for households using 1,000 kilowatt-hours per month. This will lower PSE’s average monthly residential electric bill to $91.21.

"We’re able to lower customers’ electric bills because the amount of the allowed tax credit has increased, as a result of our wind facilities generating more power this past year,” said Kimberly Harris, executive vice president and chief resource officer for PSE. "Through the Wind Power Production Credit, we pass through to our customers 100 percent of the federal income tax benefits we receive for wind generation.”

The federal production tax credit for wind energy, which began in January 2007 as a pass-through on PSE bills, was recently extended through 2009 thanks to the leadership of Senator Cantwell and Congressman McDermott in their roles as members of the Congressional tax writing committees. This tax credit has received broad support from the entire Washington state delegation, and was signed in to law by the President on Oct. 3 as part of the Emergency Economic Stabilization Act of 2008.

"The passage of expanded federal tax credits for renewable energy production is good news for PSE customers as we continue to expand our investments in wind and other renewable energy resources,” added Harris.

PSE’s Hopkins Ridge wind facility went into operation in November 2005, and its Wild Horse facility began generating power in December 2006. Together, they produce enough energy to serve the needs of 100,000 households. PSE has announced plans to expand Wild Horse as early as next year.

For more information about PSE’s power generation facilities, visit PSE.com.

About Puget Sound Energy

Washington state’s oldest and largest energy utility, with a 6,000-square-mile service area stretching across 11 counties, Puget Sound Energy serves more than 1 million electric customers and 737,000 natural gas customers, primarily in western Washington. PSE, a subsidiary of Puget Energy (NYSE:PSD), meets the energy needs of its growing customer base through incremental, cost-effective energy conservation, low-cost procurement of sustainable energy resources, and far-sighted investment in the energy-delivery infrastructure. PSE employees are dedicated to providing great customer service to deliver energy that is safe, reliable, reasonably priced, and environmentally responsible. For more information, visit www.PSE.com.