Tacoma Public Utilities rates are going up again. Here’s what to expect on your bill

Tacoma Public Utilities is increasing its monthly power rates again in 2025 and 2026. Customers can expect to see 6.5% increases next year and the following year, an increase of about $7 a month, according to a presentation TPU gave to the Lakewood City Council last week.

Citing increased operation costs, supply-chain shortages and repairs to aging infrastructure, residential customers can expect to see an average increase of $6.72 in 2025 and $7.09 in 2026, said regional relations manager Rosa McLeod on Sept. 23.

TPU previously raised rates 3.5% in both 2023 and 2024, McLeod said at the meeting.

“Just like our rate payers and governments, TPU is facing drastic increases across the board and prices across the board that impact our ability to provide service. Supply-chain shortages have caused delays and disruptions to our ability to provide services, and that increases costs for us,” McLeod said. “We have aging infrastructure, and we are required to maintain those assets for safety and reliability, and that is, of course, as you know, expensive.”

When asked why TPU was raising rates beyond the rate of inflation over the next two years, TPU rates and data analyst Nathan Schumer said its dams need to be relicensed this year, which is anticipated to cost a couple hundred million dollars.

In addition Bonneville Power Administration, which provides power to all the public utilities including TPU, is raising its rates, Schumer said. TPU has also seen a nearly 300% increase in the cost of electrical transformers since 2019, he said.

TPU serves nearly 181,630 people in Tacoma, University Place, Fircrest, Lakewood, Federal Way, Steilacoom, Joint Base Lewis-McChord, portions of Fife and other areas of Pierce County as far south as Roy, according to its website. Most of its electricity comes from hydropower dams. The organization is a public, not-for-profit entity governed by a five-member Public Utility Board.

McLeod said TPU is making efforts to manage costs and “make sure our rates are as affordable as possible,” including applying for state and federal grants to leverage local dollars, recycling and selling equipment that is no longer needed, selling surplus power and water and refinancing bonds and loans to lock in lower interest rates.

About 29% of TPU customers are eligible for its financial assistance programs , and McLeod said TPU added an additional program where people enrolled in assistance programs can receive additional credit for paying their monthly bill on time and in full.

There will be a public hearing about the rates at the Public Utility Board meeting Oct. 9, and the Tacoma City Council would need to confirm the rate increase when it adopts its final city budget in November, McLeod said.