Utility rates slated to steadily rise in Seattle, starting in 2025

Seattle residents can expect higher utility bills starting in 2025. The City Council unanimously approved two plans this week that will nudge rates for City Light and Public Utilities a little higher each year.

According to City Light's Strategic Plan for 2025-2030, the city aims to annually raise electric utility rates during those years. This would be for both residential and business customers. A residential rate hike of 5.4% will come in 2025 and 2026, then a 5% rate increase for the next four years. This will cause monthly residential bills to go up an average of $5.14.

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This continues a rate-hike trend in Seattle. The city previously raised electricity rates 2% in 2022, and also approved hikes in 2023 (6% for residential and 5.6% for businesses) and 2024 (4.5% base rate increase).

Leading up to the council's approval, City Light briefed council members on its rate path at multiple committee meetings. City Light said that its previous energy estimates in 2022 were off by considerable margins. It argued that utility costs and demand are rising much faster than expected, and it will cost money to keep up.

“Retail demand from building electrification is growing three times faster than we projected in 2022 and transportation electrification demand has increased 70% above 2022 estimates. In a matter of years, demand will outpace energy savings from efficiency," City Light's presentation stated.

Aside from customer demand, City Light said wholesale prices are on the rise. Extreme weather is striking the region more often, which prompts more energy use. At times, there has also been low water flow at hydro-electric dams that feed Seattle's grid.

At the same meeting, the council approved rate increases for drainage and wastewater customers that covers the same 2025 to 2030 period. According to the city, a typical single-family home will see a rise of about $70 on its bill between 2025 and 2030, while an apartment will likely see about $40.