"Nobody has ever done this before," Nguyen said. "There's been no company in the United States that has gone from basically a 100% natural gas company to one that is more decarbonized with renewable energy, so [PSE is] trying to do something that is nation-leading."

Nguyen and supporters say the law is a good first step, even if more legislation will be needed. However, the law also reflects concerns that an energy transition would disproportionately impact low-income ratepayers.

What does the new law do?

Seeing a tough road ahead to decarbonize, PSE requested help from lawmakers. A central issue has been about how to keep utility rates stable as the investor-owned utility expects to acquire a massive amount of renewable energy while methane gas use declines.

According to PSE, gas use dropped 7% for residential customers and 3% for commercial customers between 2022 and 2023 for several reasons, including air conditioning demand, energy efficiency programs and changing preferences. PSE has around 1.5 million customers in all, who buy either electricity, methane or both from the utility.

These changes come as PSE must comply with Washington's two landmark climate laws — the Clean Energy Transformation Act, which will require the utility to become greenhouse gas neutral in its electricity generation by 2030, and the Climate Commitment Act, which gradually ratchets down emissions 95% by 2050.

The utility will need to buy or build 6,700 megawatts of renewable electricity by 2030, more electricity than it ever has acquired in its 150-year history, PSE spokesperson Matt Steuerwalt said.

"In the past six years, energy law in Washington state has changed more than in the previous 100," PSE lobbyist Matt Miller said during a senate committee's public testimony in January. "This bill helps us comply with that. We have a steep hill to climb, but ... this bill provides us tools to do that."

Historically, gas and electricity customers have been kept in silos and rebates have incentivized them to stay on their energy source if equipment breaks, said Kelly Hall, the director of Climate Solutions in Washington, an advocacy group in support of the law.

But the new law removes rebates for residential customers who purchase gas appliances or equipment beginning in 2025.

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