This week, Washington Retail Association’s (WR) team continued to advocate for retailers across Washington State.
Keeping the lights on: WR submitted comments to Washington’s Utilities and Transportation Commission (UTC) opposing Puget Sound Energy’s request to increase electricity and natural gas rates by 15% overall, and nearly 30% for many of our members. WR told the UTC:
Energy is an essential and largely fixed cost for retailers, who operate lighting, heating, and cooling seven days a week. Grocers also operate refrigeration around the clock. With margins often in the low single digits, retailers cannot absorb increases of this size. They are left to raise prices, cut hours or staff, defer investment, or close locations. For smaller retailers, the question is survival. Independent and family-owned businesses lack the scale to spread costs across multiple locations, and an increase approaching 30% could determine whether some stay open.
Consumers would pay twice. PSE estimates a typical household would pay approximately $28 more per month for electricity in 2027. That same household would then face higher prices for groceries and everyday goods as retailers pass along costs they cannot absorb. The result is higher prices, lost jobs, and fewer local businesses in the communities retailers serve.
The issue is also drawing attention from Washington Attorney General Nick Brown, who has identified utility affordability as a potential priority for the 2027 legislative session. Brown said his office’s Public Counsel Unit, which represents customers of regulated investor-owned utilities, can have a direct influence on utility costs. His office is already challenging PSE’s proposed rate increases and is considering potential legislative proposals related to its work in utility proceedings.
WR knows our members need reliable, affordable energy so they can continue to provide the goods and products their communities need and want. We will continue to make sure the retail voice is part of these policy decisions.
Tax relief: The City of Everett is considering a reduction in its local B&O tax rate for retailers. Washington Retail Association communicated its support for reducing the rate from $1.00 per $1,000 to $0.75 per $1,000.
Retailers always welcome tax relief. WR also supports raising the exemption threshold from $20,000 to $250,000 in annual gross receipts. This would free approximately 6,500 of Everett’s small businesses from city B&O tax. For small retailers and emerging businesses, that would make Everett a more attractive place to start and grow a business.
Tax relief is always welcome, and these two parts of the proposal before the Everett City Council are positive steps for retailers.
WR also communicated its support for the City’s outreach efforts around public safety. Retailers see firsthand how retail theft, organized retail crime, and repeat offenders drive up costs, drive away shoppers, and put workers at risk. WR urged the Council to:
- Set aside a share of the commercial district grants for safety, including retail theft prevention.
- Make public safety a core duty of the Business Support Team, with a direct line to the Everett Police Department.
- Consider directing part of the new revenue toward additional patrols in commercial districts.
WR continues to provide value to retailers of all sizes by advocating for tax and regulatory relief and an increased focus on public safety.
Sleep easy: Bills that died in the last session do not mean the issue is dead forever. WR knows that, which is why the team continues to work with other stakeholders on issues that matter to our retail members, including mattress extended producer responsibility (EPR).
While no bill addressing mattress EPR has passed the state Legislature, the issue continues to be discussed. This week, WR joined other stakeholders, legislators, and organizations engaged on this issue to make sure those conversations include the retail perspective.
