Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced carbon dioxide equivalents by 11.2 million metric tons from 2019 levels by 2030 through various initiatives including eliminating coal power, expanding customer-side resources, increasing renewables, developing large-scale energy storage, and implementing innovative customer programs and partnerships.
• Elimination of methane leaks on PSE’s distribution system by 2022.
• Reduction or offset of all other methane emissions from operation and maintenance of PSE’s gas infrastructure system by 2030.

Social Achievements

• Weatherization Assistance Program served more than 1,800 households in 2019, delivering $7.6 million in benefits.
• Low-Income Electric Vehicle (EV) Pilot Projects: partnered with HopeSource to install a level 2 charging station and provided vehicle funding.
• Community Solar: subscriptions reserved for income-eligible customers.
• Solar Green Power: funded solar installation at administrative or housing facilities for 10 non-profits and provided more than $1 million to support solar for low-income agencies and housing since 2017.

Governance Achievements

• Established a “Beyond Net Zero” external advisory committee.

Climate Goals & Targets

Environmental Challenges

• Regional cooperation to ensure adequate electric supply to meet demand growth increases for EVs.
• Regional grasp that on peak winter days, PSE delivers a significant amount of energy through the natural gas distribution system.
• Commercially developed and affordable large scale RNG and other low-carbon or zero carbon gas, such as hydrogen supply and infrastructure.
• Affordable carbon reduction technologies with less geographic constraints for sequestration, and infrastructure constraints for carbon utilization.
• New behind-the-meter capabilities to reshape energy demands to lower peak capacity need.
• Recognition that distributed wind/solar requires new technical infrastructure as well as costs, with an inability to capitalize costs and earn a regulated return.
• State-wide, regional and local cooperation and collaboration will be required with all utilities because gas and electric service territories are not synced up to match by utility.
• Current regulatory framework does not provide a known path to meet the state’s policy and customers’ desire for clean energy.
• CETA implementation including the availability and affordability of a sufficient renewable energy supply to meet peak demand while maintaining system reliability during long-duration extreme weather events.

Mitigation Strategies

• Regulatory reform to foster a forward-thinking regulatory environment.
• Financial protections for natural gas customers.
• Assurance of equitable distribution of benefits, invests in mitigation actions for highly impacted communities.
• Maximum economic opportunity in Washington State and avoids negative economic impacts and GHG emissions shifting to other jurisdictions.
• Deliberate and thoughtful development of transition plans for impacted workforce sectors.
• Additional complementary carbon reduction programs (low carbon fuel standard, emission reduction plan, carbon pricing).
• Siting and permitting policy to support efficient siting and permitting of renewable energy transmission lines and renewable generation.
• Research, Development, Demonstration and Deployment of energy intensity and carbon reducing or carbon negative technologies.
• Gas-related clean energy implementation planning.
• Regulatory tools and state financial investment to avoid significant cost-shifts among natural gas customers.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Clean Energy
• Energy Efficiency
• Cleaner Transportation
• Environmental Compliance
• Biodiversity
• Health and Safety
• Public Safety
• Energy Resource Planning
• Customer and Community Programs
• Employee Well-being
• Community Engagement
• Governance
• Ethics
• Cybersecurity
• Lobbying and Political Contributions

Environmental Achievements

• Reduced carbon emissions by an estimated 108,500 metric tons of CO2 and 6,950 metric tons of methane through conservation programs in 2020.
• 770 MW of wind generation and other green energy projects deployed over the past 15 years.
• Achieved 44% clean energy in the 2020 portfolio (22% owned, 22% contracted).
• Completed work on a Forest Management Plan to optimize carbon content of forested properties, expecting over 250,000 carbon offsets.

Social Achievements

• Created a new Community Engagement team in 2020 focused on working with local non-profits and underserved communities.
• Provided $30 million in COVID bill assistance to customers in 2020 and 2021.
• Maintained a comprehensive energy efficiency program, helping customers cut electricity consumption by more than 24 billion kWh since 2009.
• Developed a DEI Playbook to outline the vision for Diversity, Equity and Inclusion at PSE.

Governance Achievements

• Implemented a robust enterprise risk management framework.
• Appointed a Chief Ethics & Compliance Officer.
• Established Corporate Ethics and Compliance programs with training and anonymous reporting tools.

Climate Goals & Targets

Environmental Challenges

• Meeting ambitious carbon reduction goals while maintaining reliability, safety, and affordability for customers.
• Balancing clean energy goals with the need to mitigate natural gas emissions.
• Addressing the challenges of integrating new clean energy resources into the existing grid.
• Managing environmental compliance risks and legacy contamination from historical operations.

Mitigation Strategies

• Developing a Beyond Net Zero Carbon strategic plan with interim targets.
• Investing in renewable resources, energy efficiency, and cleaner transportation.
• Partnering with customers, policymakers, and other stakeholders.
• Implementing an Environmental Management System (EMS) and internal environmental audit program.
• Actively participating in the development of future environmental regulations.

Supply Chain Management

Responsible Procurement

• Incorporating safety policies into master service agreements with contractors.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Equity

Environmental Achievements

• Phasing out coal-fired electricity, committed to eliminating it by the end of 2025.
• Aiming to eliminate methane leaks and reduce/offset other methane emissions by 2030.
• Expanding renewable energy and non-emitting fleet (wind, solar, hydropower, biomass) to supply 100% carbon-free electricity by 2045.
• Integrating RNG into the system and pursuing hydrogen opportunities.

Social Achievements

• Convened an Equity Advisory Group (EAG) in 2021 to engage with historically underrepresented communities.
• Residential and commercial customers can replace conventional natural gas with local RNG through their RNG program.

Governance Achievements

• Formalized Board oversight for corporate responsibility, including climate-related risks.
• Established an ESG/Sustainability Executive Committee for management oversight.

Climate Goals & Targets

Environmental Challenges

• Compliance with climate change regulations (CETA) requiring significant investment.
• Increased operating costs from carbon pricing schemes (CCA).
• Risks related to renewable energy reliability impacting service and revenue.
• Potential for reduced customer demand due to advances in energy efficiency and alternative technologies.
• Physical risks from extreme weather events impacting assets and operations.
• Changes in electricity and gas consumption patterns due to increased temperatures.

Mitigation Strategies

• Established Enterprise Risk Management (ERM) process to assess and prioritize climate risks.
• Implementation of Business Continuity Plans.
• Investing in infrastructure modernization for grid reliability and resilience.
• Integrating physical risk scenarios into resource planning.
• Developing alternative fuels (RNG, SNG, hydrogen, biofuels).
• Wildfire Mitigation and Response Plan published in 2022.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Wind and ice storms
• Extreme temperature events
• Flooding
• Wildfires
• Water scarcity

Transition Risks

• Compliance with CETA and CCA
• Technology risks related to renewable energy reliability
• Potential for reduced customer demand

Opportunities

• Alternative fuels (RNG, SNG, hydrogen, biofuels)
• Renewable and non-emitting energy development
• Community partnerships to mitigate renewable generation challenges

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Air Quality
• Water Management
• Coal Ash Management
• Energy Affordability
• Workforce Health and Safety
• End-Use Efficiency and Demand
• Grid Resiliency
• Integrity of Gas Delivery Infrastructure

Environmental Achievements

• Reduced GHG emissions associated with power deliveries from 12,094,607 tCO2e in 2023 to 10,684,466 tCO2e in 2022.
• Implemented conservation measures at Goldendale Generating Station to reduce water consumption.
• Achieved 100% of electric load served by smart grid technology in 2023.

Social Achievements

• Reduced residential customer electric disconnections for non-payment from 4,147 in 2023 to 924 in 2022.
• Reconnected 88% of residential customers within 30 days in 2023.
• Reduced Total Recordable Incident Rate (TRIR) from 1.29 in 2021 to 0.98 in 2023.

Governance Achievements

• Zero incidents of non-compliance associated with water quantity and/or quality permits, standards and regulations in 2023.
• Zero reportable pipeline incidents in 2023.

Climate Goals & Targets

Environmental Challenges

• Managing water usage in arid regions where facilities are located.
• Impacts of changing hydroclimate on hydroelectric projects.
• Maintaining grid resiliency and managing cybersecurity risks.

Mitigation Strategies

• Implemented conservation measures at Goldendale Generating Station to limit water usage.
• Adjusted water drawdown at Baker Project to ensure better compliance with minimum instream flow requirements.
• Implementing smart grid technology and addressing cybersecurity standards.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Reporting Standards

Frameworks Used: SASB Standards for Electric Utilities and Power Generators, SASB Standards for Gas Utilities and Distributors