ELECTRICITY RATES FOR RESIDENTIAL CUSTOMERS Rates Effective May 1, 2010 If you would like information about our services, details about your rights and responsibilities, or a copy of our latest annual performance report card, please call us toll free at 1-888-225-5773 or visit us at PSE.com. RATES SCHEDULE 7 RESIDENTIAL SERVICE Used principally for domestic purposes with service delivered through one meter to a single-family unit. May include limited incidental non-domestic use. Effective date: May 1, 2010. Basic Charge $7.25 single phase or $17.41 three phase per month First 600 kWh per month Energy Charge Base rate ........................................................ 8.4991¢ per kWh Low Income Program .................................... 0.0553¢ per kWh 8.5544¢ per kWh Electric Conservation Program Charge................. 0.4617¢ per kWh Power Cost Adjustment ......................................... 0.0000¢ per kWh Energy Exchange Credit ..................................... (0.7269¢) per kWh Wind Power Production Credit ............................. (0.1684¢) per kWh Merger Credit ........................................................ (0.0374¢) per kWh Regulatory Asset Tracker ....................................... 0.2684¢ per kWh Total Rate per kWh .................................................................8.3518¢ All over 600 kWh per month Energy Charge Base rate ...................................................... 10.2974¢ per kWh Low Income Program ..................................... 0.0553¢ per kWh 10.3527¢ per kWh Electric Conservation Program Charge ................ 0.4617¢ per kWh Power Cost Adjustment ........................................ 0.0000¢ per kWh Energy Exchange Credit ..................................... (0.7269¢) per kWh Wind Power Production Credit ............................ (0.1684¢) per kWh Merger Credit ........................................................ (0.0374¢) per kWh Regulatory Asset Tracker ....................................... 0.2684¢ per kWh Total Rate per kWh ..............................................................10.1501¢ SCHEDULE 120 ELECTRIC CONSERVATION PROGRAM (Electricity Conservation Service Rider) This rate adjustment collects costs incurred for providing electricity conservation services. SCHEDULE 129 LOW INCOME PROGRAM This rate adjustment collects costs incurred for providing low income services. SCHEDULE 132 MERGER CREDIT (Merger Rate Credit) This rate adjustment passes through the rate credit made available following the merger completed in February 2009. SCHEDULE 133 REGULATORY ASSET TRACKER This rate adjustment collects annual amortization for the Tenaska Generating Plant that is scheduled to end on December 31, 2011. SCHEDULE 135 GREEN ENERGY OPTION Available to all customers as an option designed to provide customers an opportunity to purchase qualified alternative energy resources. Customers may purchase an unlimited number of blocks of green energy at $2.00 each in addition to all other charges contained in the rate schedule under which the customer receives service. A block is equivalent to a 100 kWh purchase. Monthly minimum purchase is two blocks per month. SCHEDULE 194 ENERGY EXCHANGE CREDIT (Residential and Farm Energy Exchange Benefit) The Energy Exchange Credit is the Federal Columbia River Benefits supplied by the Bonneville Power Administration for residential and small farm customers. Credits automatically are passed through to residential electricity customers. Farm customers must apply and qualify for the credit. SCHEDULE 95 POWER COST ADJUSTMENT CLAUSE This rate adjustment reflects changes in power costs due to a variety of factors, including fluctuating costs of electricity in the wholesale market and purchases of electric generation resources. SCHEDULE 95A WIND POWER PRODUCTION CREDIT (Production Tax Credit Tracker) This rate adjustment allocates the amount of the Production Tax Credit that is available to PSE for generating electricity from wind to customers. EXAMPLE HOW YOUR BILL IS CALCULATED The following example is provided to help you understand how the electricity you use is priced. SCHEDULE 7 RESIDENTIAL SERVICE For a customer who used 1,000 kWh during one month (assuming 30 days of service). *Basic Charge per month ............................................................... $ 7.25 Energy Charge First 600 kWh x 8.5544¢ ......................................................... $ 51.33 Remaining 400 kWh x 10.3527¢ ............................................. $ 41.41 Electric Conservation Program Charge 1,000 kWh x 0.4617¢ ................................................................ $ 4.62 Power Cost Adjustment 1,000 kWh x 0.0000¢ ............................................................... $ 0.00 Energy Exchange Credit 1,000 kWh x (0.7269¢) ................................................ credit $ (7.27) Wind Power Production Credit 1,000 kWh x (0.1684¢) ................................................ credit $ (1.68) Merger Credit 1,000 kWh x (0.0374¢) ................................................ credit $ (0.37) Regulatory Asset Tracker 1,000 kWh x 0.2684¢ .................................................................$ 2.68 Subtotal................................................................................... $ 97.96 Effect of city tax (if any)............................................................ $ 0.00 Total bill ......................................................................................... $ 97.96 *For Schedule 7, the Basic Charge covers meter reading, billing and other related fixed costs. Schedule 7 is referred to on customer bills as one of the following rates: 07-NFC-E, 07E, 17-NFC-E, 17E, 27-NFC-E, 27E, 37E, or 47E All rates shown in this brochure are subject to change. For current PSE rates, please visit PSE.com PSE.com PUGET SOUND ENERGY P.O. Box 98068 Bellevue, WA 98009-0868 © 2008 Puget Sound Energy 1215 05/10