Regulators approve sale of Puget Sound Energy water heater rental service

Docket Number: UG-200112

Regulators approve sale of Puget Sound Energy water heater rental service

Olympia, Wash. - Today state regulators approved the sale of Puget Sound Energy’s (PSE) water heater rental service.

The three-member Utilities and Transportation Commission approved a settlement allowing PSE to discontinue its Gas Water Heater Rental Services, which leases water heaters to customers for a monthly fee, and to sell the service to Grand HVAC Leasing (GHL).

The settlement ensures that current customers have the choice to continue their water heater rental service through GHL, purchase the water heater from PSE by paying for the remaining value of the water heater, or to require PSE to remove the water heater. This will allow PSE to recoup some of the existing value of the water heater assets, which benefits all customers. It also ensures that GHL will cap costs for those renters who continue in the program.

In February, PSE filed a proposal with the commission to end the water heater rental service. PSE also filed an application seeking commission authorization to sell the water heater rental program to GHL.

On May 22, PSE, commission staff, and the Public Counsel unit of the Washington Office of the Attorney General filed a full settlement agreement with the commission.

The commission held a virtual public hearing on the matter on June 18 and has received 55 public comments on this matter: 37 opposed, three in favor, and 15 neutral.

The UTC is the state agency that regulates private, investor-owned electric and natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.