Lawrence Banks

The regular meeting addressed several utility dockets. Several items, including Docket UE-250695 (PacifiCorp's proposed Schedule 138, Net Billing Service, succeeding Net Metering Service) and Docket UE-250725 (Puget Sound Energy's Time-of-Use Tariff Schedule changes), were moved to a later open meeting. Preliminary discussion was held on Puget Sound Energy's proposed 2026 Power Cost Update, including a mechanism for Climate Commitment Act costs. The Commission acknowledged Cascade Natural Gas Corporation's 2024 Annual Provisional Plant Report, confirming the costs for projects were prudent. The Commission took no action on Cascade Natural Gas Corporation's filing (Docket UG-250830) to revise Tariff WN U-3 to refund customers for a revenue overcollection related to forecasted provisional plant costs, allowing the revision to take effect by operation of law. The meeting included an Executive Session for Litigation Review with legal counsel.

The presentation focused on resource adequacy and the characteristics of the natural gas system versus the electric grid in the Pacific Northwest. Key discussion points included natural gas supply sources, primarily from Canada and the US Rocky Mountain West, and the pneumatic nature of the gas system where molecules move slowly under pressure, contrasting with the synchronous, instantaneous movement of electrons on the electric grid. The discussion covered system attributes, noting the gas system delivers heat and fuel, while the electric grid delivers electricity. The inherent storage capacity of the gas pipeline system through packing and drafting was highlighted compared to the lack of inherent storage in the electric grid. There was an analysis of regional energy use, showing that approximately 45% of annual energy consumption comes from the gas system. Furthermore, usage patterns have shifted, with 75% of increased gas volume over 25 years being weather-dependent (winter/summer peaking loads) due to the retirement of base load coal generation. The importance of electric-gas coordination was emphasized, especially during cold weather events like the Martin Luther King weekend in 2024, where natural gas demand for heating vastly exceeded electricity demand. The presentation concluded with an overview of reliability concerns, noting extreme heat and cold events were primary concerns for members.

The regular meeting addressed several dockets. In Utilities, the Commission decided to issue an Order regarding Cascade Natural Gas Corporation's petition for the intent to Deploy a Thermal Energy Network Pilot Project, accepting the petition for the alternative TEN pilot project process and validating associated costs. In Transportation, the Commission approved rate increases and tariff revisions for Waste Management of Washington, Inc. in the South Sound and Seattle areas, and also for Waste Management of Skagit County, including requested exemptions from certain filing requirements. Furthermore, the Commission decided to set a procedural hearing for PacifiCorp's Petition in Docket No. UE-250727.

The regular meeting addressed utility matters, including the consent agenda approval. A primary discussion focused on Docket UG-250663 regarding Avista Corporation's tariff revisions related to the Climate Commitment Act, which involved directives for refiling schedules to allocate revenue benefits, address low-income customer cost burdens, and return residual balances to customer classes. Additionally, the Commission approved PacifiCorp d/b/a Pacific Power & Light Company's selection of an independent evaluator for its 2025 Washington Situs Request for Proposals (Docket UE-250460). The agenda also included special presentations that were informational only, such as an introduction to the Bonneville Power Administration's Grid Access Transformation Program and a presentation from California Water Service Company on the Promise to Pay and PFAS, with the latter scheduled for a later recessed meeting.

The regular meeting included several regulatory actions, primarily concerning tariff revisions and conservation plans. Key discussions and dispositions involved utility matters such as the initial tariff filing and general rate increase request for J.Renee -- Bo-Ginn, L.L.C., where the Commission ordered a general rate case filing by June 1, 2027. The Commission took no action on Lakeland Village Water Company, Inc.'s general rate increase request, allowing rates to go into effect by operation of law. Several Puget Sound Energy tariff revisions were approved, including updates related to the Greenhouse Gas Emissions Cap and Invest Adjustment (Schedule 111) and the Power Cost Adjustment Clause (Schedule 95), effective January 1, 2026, subject to specific filing conditions. Furthermore, Puget Sound Energy's petition for deferred accounting treatment for carbon emissions allowances was approved. A significant portion of the agenda addressed the 2026-2027 Biennial Conservation Plans for various utilities (PacifiCorp, Puget Sound Energy, Avista Corporation, Cascade Natural Gas Corporation, Northwest Natural Gas Company), resulting in the acceptance or approval of specific conservation targets and budgets. The transportation agenda involved Tariff Revisions for Tariff 15-C, proposing a 25 percent increase to the top band for Household Goods industry rules, effective January 1, 2026. The meeting was recessed and reconvened on January 14, 2026, to address items originally deferred.