ELECTRICITY RATES. Rates Effective October 1, 2009

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ELECTRICITY RATES FOR COMMERCIAL AND INDUSTRIAL CUSTOMERS Rates Effective October 1, 2009 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 SCHEDULES 24 and 8* GENERAL SERVICE For commercial or industrial customers with demand less than 50 kw. Effective date: October 1, 2009. Basic charge: $9.25 single phase or $23.50 three phase per month. Oct-Mar Apr-Sep Base rate... 8.7480... 8.4515 Low Income Program... 0.0514... 0.0514 Effective rate... 8.7994... 8.5029 per kwh Electric Conservation Program Charge... 0.2417...0.2417 per kwh Power Cost Adjustment... 0.0000... 0.0000 per kwh Wind Power Production Credit... (0.1534 )...(0.1534 ) per kwh Merger Credit... (0.0342 )...(0.0342 ) per kwh *Monthly rates for Schedules 8, 10, 11, and 12 are identical, respectively, to Schedules 24, 25, 26 and 31. SCHEDULES 25 and 11* SMALL DEMAND GENERAL SERVICE For commercial or industrial customers with demand greater than 50 kw but less than or equal to 350 kw. Effective date: October 1, 2009. Basic charge:...$ 50.00 per month No charge for the first 50 kw of billing demand. For all over 50 kw of billing demand. Oct-Mar Apr-Sep $8.72 $5.81 per kw Base rate... 8.8276... 8.0402 Low Income Program... 0.0546... 0.0546 Total for the first 20,000 kwh... 8.8822... 8.0948 per kwh Base rate... 6.3589... 6.3589 Low Income Program... 0.0546... 0.0546 Total for all over 20,000 kwh... 6.4135... 6.4135 per kwh Electric Conservation Program Charge... 0.2397... 0.2397 per kwh Power Cost Adjustment... 0.0000... 0.0000 per kwh Wind Power Production Credit... (0.1505 )... (0.1505 ) per kwh Merger Credit... (0.0226 )... (0.0226 ) per kwh 0.274 per reactive kilovolt ampere-hour (KVARH).

SCHEDULES 26 and 12* LARGE DEMAND GENERAL SERVICE For commercial or industrial customers with demand greater than 350 kw. Effective date: October 1, 2009. Basic charge:...$ 100.00 per month Oct-Mar Apr-Sep Per kw of billing demand... $8.52...$5.68 per kw Base rate... 6.0996 Low Income Program... 0.0526 Effective rate... 6.1522 per kwh Electric Conservation Program Charge... 0.2427 per kwh Power Cost Adjustment... 0.0000 per kwh Wind Power Production Credit... (0.1466 ) per kwh Merger Credit... (0.0198 ) per kwh 0.1190 per reactive kilovolt ampere-hour (KVARH). SCHEDULE 29 SEASONAL IRRIGATION AND DRAINAGE PUMPING SERVICE For irrigation and/or drainage pumping on agricultural land used in the production of plant crops. Effective date: October 1, 2009. Basic charge: $9.25 single phase or $23.50 three phase per month. No charge for the first 50 kw of billing demand. For all over 50 kw of billing demand. Oct-Mar Apr-Sep $8.55 $4.21 per kw Base rate... 8.8276... 6.1658 Low Income Program... 0.0462... 0.0462 Total for the first 20,000 kwh... 8.8738... 6.2120 per kwh Base rate... 6.7426... 5.3059 Low Income Program... 0.0462... 0.0462 Total for all over 20,000 kwh... 6.7888... 5.3521 per kwh Electric Conservation Program Charge...0.2028 per kwh Power Cost Adjustment...0.0000 per kwh Energy Exchange Credit...(0.7269 ) per kwh Wind Power Production Credit...(0.1331 ) per kwh Merger Credit...(0.0226 ) per kwh 0.2720 per reactive kilovolt ampere-hour (KVARH).

SCHEDULES 31 and 10 PRIMARY GENERAL SERVICE For commercial or industrial customers with delivery at primary voltage (600 volts or higher). Customer provides all transformation and facilities beyond the point of delivery. Effective date: October 1, 2009. Basic charge:...$ 325.00 per month Oct-Mar Apr-Sep Per kw of billing demand... $8.27...$5.51 per kw Base rate...5.8896 Low Income Program... 0.0525 Effective rate...5.9421 per kwh Electric Conservation Program Charge...0.2177 per kwh Power Cost Adjustment... 0.0000 per kwh Wind Power Production Credit...(0.1440 ) per kwh Merger Credit...(0.0235 ) per kwh 0.1020 per reactive kilovolt ampere-hour (KVARH). SCHEDULE 35 PRIMARY SEASONAL IRRIGATION AND DRAINAGE PUMPING SERVICE For irrigation and/or drainage pumping on agricultural land used in the production of plant crops with delivery at primary voltage (600 volts or higher). Customer provides all transformation and facilities beyond the point of delivery. Effective date: October 1, 2009. Basic charge:...$ 325.00 per month Oct-Mar Apr-Sep Per kw of billing demand... $4.30...$2.86 per kw Base rate... 4.7939 Low Income Program...0.0339 Effective rate...4.8278 per kwh Electric Conservation Program Charge... 0.1512 per kwh Power Cost Adjustment... 0.0000 per kwh Energy Exchange Credit... (0.7269 ) per kwh Wind Power Production Credit... (0.1135 ) per kwh Merger Credit... (0.0235 ) per kwh 0.1040 per reactive kilovolt ampere-hour (KVARH).

SCHEDULES 36, 38 and 39 INTERRUPTIBLE SERVICE CREDITS Limited experimental schedules are now closed to new customers but were available to customers on Schedules 26, 31 and 49 meeting specific criteria. These schedules provide a credit toward demand charges as well as for interrupted energy usage. Specific schedules and information are available upon request. SCHEDULE 40 LARGE DEMAND GENERAL SERVICE GREATER THAN 3aMW This schedule applies to customers with over 3 average MW of load on a distribution feeder. Service is subject to completion of a cost study by the Company to establish the customer-specific distribution charge. Schedule information is available upon request. SCHEDULE 43 LIMITED INTERRUPTIBLE PRIMARY SERVICE, ALL ELECTRIC SCHOOLS Delivered at primary voltage (600 volts or higher) and customer provides all transformation and facilities beyond the point of delivery. This schedule is closed to new customers. Effective date: October 1, 2009. Basic charge:...$ 325.00 per month Per kw of billing demand...$ 4.55 per kw Plus $3.72 per kw of Critical Demand established in the preceding 11 months Base rate... 5.5398 Low Income Program... 0.0589 Effective rate... 5.5987 per kwh Electric Conservation Program Charge... 0.1615 per kwh Power Cost Adjustment....0.0000 per kwh Wind Power Production Credit... (0.1137 ) per kwh Merger Credit... (0.0235 ) per kwh 0.2870 per reactive kilovolt ampere-hour (KVARH). SCHEDULE 46 HIGH VOLTAGE INTERRUPTIBLE SERVICE For commercial or industrial customers with billing demands not less than 4,400 kva who may be interrupted during certain hours of the day. Customer provides all transformation and facilities beyond the point of delivery with delivery at high voltage (50,000 volts or higher). Effective date: October 1, 2009. Per kva of billing demand...$ 2.00 per kva Base rate... 5.3192 Low Income Program...0.0101 Effective rate... 5.3293 per kwh Electric Conservation Program Charge... 0.1050 per kwh Power Cost Adjustment... 0.0000 per kwh Wind Power Production Credit... (0.0115 ) per kwh Merger Credit... (0.0194 ) per kwh

SCHEDULE 49 HIGH VOLTAGE GENERAL SERVICE For commercial or industrial customers with billing demands not less than 4,400 kva. Delivered at high voltage (50,000 volts or higher) and the customer provides all transformation and facilities beyond the point of delivery. Effective date: October 1, 2009. Per kva of billing demand...$ 3.54 per kva Base rate... 5.3192 Low Income Program...0.0101 Effective rate... 5.3293 per kwh Electric Conservation Program Charge... 0.1050 per kwh Power Cost Adjustment... 0.0000 per kwh Wind Power Production Credit... (0.1317 ) per kwh Merger Credit... (0.0194 ) per kwh SCHEDULES 50-59 OUTDOOR LIGHTING SCHEDULES These schedules provide incandescent, mercury vapor, metal halide, and sodium vapor street lighting service along with traffic control lighting. Specific schedules and information can be obtained upon request. SCHEDULES 73 and 74 CONVERSION TO UNDERGROUND-RESIDENTIAL AND NONRESIDENTIAL Schedules 73 and 74 provide for conversion of existing overhead electric systems to underground. Specific schedules and information are available upon request. SCHEDULE 80 GENERAL RULES AND PROVISIONS This schedule adopts the rules and regulations for electric service prescribed by the Washington Utilities and Transportation Commission, as well as other operating rules of the Company, and provides for miscellaneous charges. A copy of this schedule is available upon request. SCHEDULE 81 TAX ADJUSTMENT SCHEDULE Provides for adjustment of electric charges in those cities and towns levying a tax on electric service. Information about specific tax rates is available upon request. SCHEDULE 83 ENERGY CONSERVATION SERVICE Provides for services to reduce electrical energy usage in residential, commercial and industrial facilities. Additional information is available upon request.

RATES SCHEDULES 85 and 86 LINE EXTENSIONS (CONSTRUCTION) AND SERVICE LINES (INSTALLATION) Schedules 85 and 86 provide for construction of new distribution systems and service lines. Specific schedules and information are available upon request. SCHEDULE 91 COGENERATION AND SMALL POWER PRODUCTION Limited to qualifying facilities within the Company s service area. Specific details and current rates are available upon request. SCHEDULE 93 VOLUNTARY LOAD CURTAILMENT RIDER Available to those customers taking service on schedules 49, 31, 26, 10 or 12 who have the ability to curtail 500 kw or greater of demand for electric service at certain times when requested by the Company. Specific details and current rates are available upon request. 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. SCHEDULE 120 ELECTRIC CONSERVATION PROGRAM (Electric Conservation Program Rider) This rate adjustment collects costs incurred for providing electricity conservation services. Rates shown in this brochure reflect the Schedule 120 rider. SCHEDULE 129 LOW INCOME PROGRAM This rate adjustment collects costs incurred for providing low income services. SCHEDULE 132 MERGER CREDIT This rate adjustment passes through the rate credit made available following the merger completed in February 2009.

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 150 NET METERING SERVICES FOR CUSTOMER GENERATOR SYSTEMS Available to customer generators taking service on schedules 7, 24, 25 and 29 who operate fuel cells or hydroelectric, solar or wind power generators with a total capacity of no more than 25kW. Specific details are available upon request. SCHEDULE 194 ENERGY EXCHANGE CREDIT 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. Energy charge Per kwh credit... 0.7269 per kwh

EXAMPLE HOW YOUR BILL IS CALCULATED The following example is provided to help you understand how the electricity you use is priced. This example uses small demand general service rates. SCHEDULE 25 SMALL DEMAND GENERAL SERVICE For a customer who used 30,000 kwh and 125 kw during one month (assuming 30 days of service). Oct-Mar Apr-Sep Basic charge:... $ 50.00... $ 50.00 First 20,000 kwh x (8.8822 Winter) or ($8.0948 Summer)... $1,776.44... $1,618.96 Remaining 10,000 kwh x 6.4135... 641.35... 641.35 First 50 kw... 0.00... 0.00 Remaining 75 kw x ($8.72 Winter) or ($5.81 Summer) 654.00... 435.75 Electric Conservation Program Charge: 30,000 kwh x 0.2397... 71.91... 71.91 Power Cost Adjustment: 30,000 kwh x 0.0000... 0.00... 0.00 Wind Power Production Credit: 30,000 kwh x (0.1505 )...credit (45.15)... (45.15) Merger Credit: 30,000 kwh x (0.0226 )... credit (6.78)... (6.78) Subtotal... $3,141.77... $2,766.04 City tax (if any)... 0.00... 0.00 Total bill... $3,141.77...$2,7666.04 NOTE: The Schedule 11 calculation is the same as the above.

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 1216 10/09