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Tacoma Public Utilities proposes 6.5% residential power increases in 2025 and 2026; TPU outlines assistance programs for Lakewood customers
Summary
Tacoma Public Utilities staff told Lakewood councilors they are proposing a 6.5% power‑rate increase in both 2025 and 2026 (about $6.72 and $7.09 a month on a typical bill) to pay for infrastructure, relicensing and Bonneville pass‑through costs; TPU highlighted customer assistance programs and upcoming public hearings.
Tacoma Public Utilities (TPU) staff presented proposed power and water rate adjustments for 2025–26 at the Lakewood City Council study session on Sept. 23, saying proposed residential increases are 6.5% in 2025 and 6.5% in 2026 and stressing that the proposals are staff recommendations pending Public Utility Board and Tacoma City Council approval.
Rosa McLeod, TPU regional relations manager, said the average residential monthly power bill would rise by roughly $6.72 in 2025 and $7.09 in 2026 under the staff proposal. TPU noted that customers enrolled in its Billing Credit Assistance Program (BCAP) and other low‑income discounts would see smaller absolute increases because those programs lower monthly bills; McLeod said 306 Lakewood customers are enrolled in BCAP and 302 are in the utility’s discount program for low‑income, elderly or disabled customers.
Why rates are rising: TPU staff cited multiple drivers, including inflation and supply‑chain impacts, aging infrastructure, and large capital needs such as dam relicensing. Rates TPU pays to wholesale providers such as Bonneville also factor into bills, staff said; Nathan Schumer (TPU rates analyst) highlighted that component and noted transformer prices and other equipment have risen substantially since 2019.
Customer assistance and outreach: McLeod described TPU’s efforts to increase outreach and enrollment in assistance programs — including automatic credits for customers at or below 60% AMI and an additional credit for timely monthly payments — and encouraged Lakewood staff to partner on outreach. Council members asked about enrollment rates and program barriers; TPU said participation for eligible power customers was about 17% in 2024 and acknowledged the utility is working to improve sign‑up rates.
Process and timing: TPU staff emphasized that these are staff proposals that must be finalized by the Public Utility Board (public hearing scheduled Oct. 9 on TPU’s campus) and then be brought to Tacoma City Council for final adoption in the 2025–26 budget. City councilors pressed TPU on whether the two‑year increase goes beyond inflation and on supply‑side and Bonneville cost pressures; TPU representatives outlined the capital and pass‑through reasons and offered to provide additional documentation.
What to watch: TPU will hold public hearings and accept written comments before the Public Utility Board finalizes recommendations; the Tacoma City Council will take the eventual rate package up for confirmation. TPU directed Lakewood residents to mytpu.org for details and public‑hearing information.
