Electric bills are set to jump more than 16% for 1.25 million Washington state residents — even as Microsoft gets a rate cut under a special deal, according to a report.
Puget Sound Energy, a utility company that is owned by a consortium of Canadian and Dutch pension funds, is seeking state government approval for rate hikes of 16.75% next year, 3.76% in 2028, and 8.81% in 2029.
The request, which is subject to approval by Washington’s state regulators at Utilities and Transportation Commission, also includes a proposed rate cut for Microsoft, according to the local news site Zoned Out PNW.
If PSE gets its way, the Redmond, Wash.-based software giant, which as of Wednesday boasted a market capitalization of $2.76 trillion, will see its rates slashed by 12.49% next year; 2.04% in 2028; and 3.06% in 2029.
The UTC board is chaired by Brian Rybarik, who held various roles at Microsoft before he was appointed to his current position by Gov. Bob Ferguson, a Dem.
Microsoft reportedly qualifies for the rate cuts because the tech giant falls under the category of a “special contracts” customer.
In 2017, the company reached an agreement with PSE allowing it to buy its own power on the open market.
As per terms of the deal, Microsoft would buy its power supply and assume the costs and risks while PSE would deliver the power through its transmission lines.
The deal included a one-time $23.6 million exit fee and allows the company to rely on PSE’s transmission infrastructure through more than 100 metered connection points around its Redmond campus.
Despite that footprint, the company’s actual electricity usage remains shielded from public view. Its Renewable Portfolio Standard filings — which would show how much power it consumes and how it sources energy — are redacted under a 2016 protective order from state regulators.
Microsoft has since moved to protect its interests in the latest rate case. Just days after scrutiny of the contract surfaced, the company petitioned to intervene in the proceedings, seeking full party status. In that filing, it acknowledged it is “the only PSE electric special contract customer.”
That distinction has fueled criticism over the rate structure, as residential customers face steep increases while the lone special-contract client is slated for a reduction.
The contrast comes as households grapple with rising costs across the board, from housing to fuel, putting additional pressure on utility bills.
Frustration is boiling over among customers, with many saying their bills have already surged well beyond what officials have acknowledged.
“Again?!?!? WTH,” one Reddit user wrote, adding that their costs have already “almost doubled” despite claims of more modest increases.
Another Reddit commenter called the projected 30% jump “monstrous,” while others flatly dismissed official figures, saying “that 12% figure must be BS” as monthly bills spike far beyond expectations.
Some posters pointed to recent bills as proof the increases are already hitting.
One user said their charges have climbed “50-100% over this month last year,” while another said the jump was so steep they initially thought they had missed a payment.
“WTF is going on?” the commenter wrote, echoing a broader sense of confusion and anger.
Others tied the hikes to broader structural complaints, arguing that ordinary customers are footing the bill for large-scale infrastructure tied to tech and data centers.
One commenter claimed new facilities are locked into “preferred rates” that are “a fraction of ours,” adding: “So the cost of building the extra capacity for them falls on us!”
The Post has sought comment from Microsoft, PSE and UTC.
