If you spend any time tracking Pierce County’s economic development conversations, you’ll notice that Tacoma Power keeps coming up — not just as a utility, but as an active player in where jobs land, which industrial tenants choose Tacoma, and how the city positions itself inside Washington’s accelerating clean energy mandate. In 2026, that role is getting harder to ignore.
Three concurrent initiatives are reshaping what Tacoma Power looks like heading into the next decade: a major turbine refurbishment at the Cushman II hydroelectric facility that will keep the dam running for another century, an EV charging buildout targeting 85 public ports by year-end, and a first-in-the-nation green hydrogen tariff that has put Tacoma on the radar of electrolysis companies from Europe to the Pacific Rim. Each thread is worth pulling on independently. Together, they tell a story about a municipal utility actively engineering its future rather than waiting for state policy to dictate it.
Cushman II: A 96-Year-Old Dam Gets a 100-Year Extension
The Cushman II hydropower plant sits in Mason County, just west of the Pierce County line on the Skokomish River system — close enough that Tacoma residents have been drawing power from it since 1930. The facility’s three turbine-generator units produce a combined 81 MW, enough renewable electricity to serve approximately 40,500 Northwest homes. That output has been reliable, but the hardware is aging. Tacoma Power moved to address that head-on.
In late 2023, Tacoma Power selected GE Vernova’s Hydro Power business to refurbish two of the three 27 MW turbine-generator units. The scope covers new generator stators, refurbishment of rotor poles and shaft thrust bearings, replacement of turbine distributors, and rehabilitation of the turbine runners and draft tubes. As of mid-2026, the project remains on schedule for completion this year, according to public reporting from Renewable Energy World and the American Public Power Association.
The expected outcome: increased availability and reliability at a plant that provides the foundational renewable generation underpinning Tacoma Power’s carbon-free supply mix. Hydroelectric power already constitutes the overwhelming majority of Tacoma Power’s generation portfolio — a structural advantage that becomes more valuable as Washington’s Clean Energy Transformation Act tightens requirements on utilities statewide.
Why Dam Maintenance Is a Business Story, Not Just an Engineering One
Every megawatt-hour that Cushman II produces is a megawatt-hour Tacoma Power doesn’t have to source from the market. For industrial customers — the manufacturers, data centers, and electrolysis operators the city is actively recruiting — rate stability is a primary site-selection criterion. A more reliable Cushman II means a more predictable cost base for everyone on the system. For Pierce County economic development, that’s not a footnote. It’s a selling point.
EV Charging: 85 Ports and a Rebate Program Worth Understanding
Washington’s electric vehicle adoption rate ranks among the highest in the nation, and Pierce County’s charging infrastructure is scrambling to keep pace. Tacoma Power is targeting 85 public charging ports by the end of 2026, including additions to its DC Fast Charging network — stations capable of adding 100+ miles of range in roughly 20 minutes.
The buildout is complemented by one of the more thoughtfully designed utility rebate programs in the state. Through Tacoma Power’s Community EV Charging Rebate, businesses and multifamily property owners installing Level 2 networked chargers can receive $5,000 per port, capped at $50,000 per project. Projects in designated underserved or overburdened areas qualify for enhanced incentives: $10,000 per port, up to $70,000 total. The equity lens embedded in that tiered structure reflects both federal program requirements and a genuine local priority — parts of South Tacoma and East Tacoma have historically been underserved by charging infrastructure despite high rates of commuter vehicle dependency.
Non-networked Level 2 chargers remain eligible for a $2,000 per-port rebate, capped at $15,000. Tacoma Power also covers utility infrastructure upgrade costs up to $10,000 for networked projects or $7,000 for non-networked ones — a detail that matters for older commercial properties where panel capacity is the real barrier to charger installation.
Residential Customers Are In the Mix Too
For Tacoma Power residential customers, the rebate structure is simpler: up to $600 in bill credits for installation of a qualifying Level 2 charger, smart splitter, or 240-volt outlet. Paired with Washington’s existing sales tax exemption on EV purchases and federal IRA incentives, the stacked value proposition for a Pierce County resident going electric in 2026 is meaningfully better than it was two years ago.
One note: as of this writing, the Community EV Charging Rebate program’s funding is temporarily paused, but Tacoma Power is accepting applications in priority order for when funding resumes. If you’re a business or property manager planning an installation, getting your application in now preserves your place in line.
The Green Hydrogen Tariff: Tacoma’s National First Is Still Drawing Interest
Of all Tacoma Power’s clean energy programs, the electrofuels tariff is the one that generates the most interest from outside Pierce County. When the utility’s board approved the rate in December 2020 and it went into effect in April 2021, Tacoma Power became the first consumer-owned utility in the United States to offer a rate specifically designed for green hydrogen producers.
The mechanics are straightforward. Industrial customers operating electrolyzers — equipment that uses electricity to split water into hydrogen and oxygen — can access a discounted energy rate of $0.033147/kWh and a demand rate of $5.72/kW-month, plus a monthly administrative charge of $7,445. In exchange, Tacoma Power reserves the right to curtail service up to 1,300 hours per year — about 15% of annual hours — with just 10 minutes’ notice.
That interruptibility is the key. Green hydrogen production via electrolysis is inherently flexible: you can dial it up when cheap, surplus hydroelectric power is available and ramp it down when the grid is constrained. From Tacoma Power’s perspective, it’s demand response at industrial scale. From an electrolyzer operator’s perspective, it’s access to some of the cleanest and most affordable power in the country, from a utility whose generation is overwhelmingly carbon-free.
According to Utility Dive, since the tariff launched Tacoma Power has fielded numerous inquiries from domestic and international companies considering locating electrolysis operations in its service territory. The Blue Sky Maritime Coalition has also flagged Tacoma’s green hydrogen potential in the context of decarbonizing Puget Sound ferry and port operations — a use case that would put Pierce County at the intersection of maritime decarbonization and clean power production.
Why the Rate Structure Matters for Pierce County Jobs
An electrolyzer operation large enough to be commercially meaningful might draw 10–50 MW continuously. At Tacoma Power’s electrofuel rate, that’s a significantly lower operating cost than what industrial customers pay in most U.S. markets — and the power comes from a utility whose carbon intensity is near zero. For companies with clean-fuel mandates from European automotive OEMs, aerospace supply chains, or Port of Tacoma shipping customers, that combination is genuinely differentiated.
The Port of Tacoma handled over 2.6 million TEUs in recent years and sits adjacent to one of the only U.S. utility territories with a purpose-built green hydrogen industrial rate. The alignment between Tacoma Power’s tariff structure and the port’s long-term decarbonization obligations deserves more local attention than it typically receives.
Washington’s Clean Energy Mandate and Tacoma Power’s Compliance Roadmap
Washington’s Clean Energy Transformation Act requires all utilities to eliminate coal power by 2025 and achieve 100% clean electricity by 2045. For most utilities in the state, that’s a heavy lift. For Tacoma Power, it’s closer to a formality — the utility’s hydroelectric-dominated generation mix is already more than 90% carbon-free.
That doesn’t mean there’s no work ahead. Tacoma Power is currently developing its 2026 Integrated Resource Plan, a 20-year roadmap required under state law that guides resource investment decisions. The IRP will determine how Tacoma Power balances load growth from electrification — EVs, heat pumps, potential hydrogen facilities — against its existing hydro resource base and any new generation it needs to acquire. Rate adjustments effective April 1, 2026 reflect the cost pressures of that transition; Tacoma Power’s board-approved rate schedule is publicly available through mytpu.org.
Community Solar: The Gap Between Potential and Availability
One area where Tacoma Power has room to grow is community solar — shared programs that allow renters and homeowners without suitable rooftops to subscribe to a portion of an off-site solar array and receive bill credits. Tacoma Power’s original offering, launched in 2016 with 300 kW across four arrays on the TPU campus, sold out quickly — a clear signal of unmet demand.
Washington State’s Community Solar Expansion Program has since reached $25 million in obligated funding for the FY2026–FY2029 biennium, per Washington State Department of Commerce reporting, creating financial pathways for utilities to expand shared solar access. For a city with a significant renter population and substantial multifamily housing stock, community solar is one of the cleaner equity tools available. Whether Tacoma Power moves aggressively on that opportunity in the next IRP cycle will be worth watching.
The Bigger Picture: Tacoma Power as Economic Development Asset
Municipal utilities don’t often get framed as economic development assets, but Tacoma Power increasingly functions as one. The combination of low-carbon hydroelectric power, a first-in-the-nation green hydrogen tariff, competitive industrial rates, and an EV infrastructure buildout gives Pierce County something genuinely differentiated to market to site selectors and clean-industry investors.
The Cushman II refurbishment isn’t just about keeping the lights on — it’s about preserving the generation reliability that makes the electrofuel rate credible to international industrial customers evaluating a 20-year facility investment. The EV charging buildout isn’t just about convenience — it’s about making Tacoma a viable destination for a workforce that is increasingly buying electric vehicles and expects charging at work, at multifamily housing, and at transit nodes.
These programs don’t exist in isolation. They’re threads in the same fabric, and Tacoma Power is one of the quieter but more consequential institutions weaving them together.
Frequently Asked Questions
What is Tacoma Power doing to upgrade its hydroelectric dams in 2026?
Tacoma Power selected GE Vernova to refurbish two of the three 27 MW turbine-generator units at the Cushman II hydropower plant in Mason County. The work — covering new generator stators, refurbished rotor poles, new turbine distributors, and draft tube rehabilitation — is expected to complete in 2026 and extend the plant’s operational life by 100 years while improving reliability for the 81 MW facility.
How is Tacoma Power expanding EV charging infrastructure in Pierce County?
Tacoma Power is on track to reach 85 public charging ports by end of 2026, including new DC Fast Charging stations. Through its Community EV Charging Rebate program, businesses and multifamily properties can receive up to $5,000 per networked Level 2 port ($10,000 per port in designated underserved areas), with project caps up to $70,000. Residential customers can claim up to $600 in bill credits for L2 charger installations.
What is Tacoma Power’s green hydrogen interruptible rate and how does it work?
Tacoma Power launched the nation’s first electrofuels tariff in April 2021. It offers green hydrogen producers a discounted energy rate of $0.033147/kWh (roughly 15% below standard industrial rates) in exchange for allowing Tacoma Power to curtail service up to 1,300 hours per year — about 15% of annual hours — with just 10 minutes’ notice. This lets Tacoma Power dispatch around grid constraints while attracting clean-fuel industrial customers.
Is Tacoma Power on track to comply with Washington’s Clean Energy Transformation Act?
Tacoma Power is currently developing its 2026 Integrated Resource Plan (IRP), a 20-year roadmap guiding investment in energy resources aligned with Washington’s Clean Energy Transformation Act, which requires utilities to eliminate coal power by 2025 and achieve 100% clean electricity by 2045. Tacoma Power’s predominantly hydroelectric generation base — over 90% carbon-free — gives it a significant compliance head start compared to most utilities in the state.
Does Tacoma Power offer a community solar program for residents who can’t install rooftop solar?
Tacoma Power has offered community solar since 2016, when its initial 300 kW sold out quickly. Washington State’s Community Solar Expansion Program reached $25 million in obligated funding for FY26–FY29, creating additional pathways for shared solar subscriptions for renters and homeowners who cannot host rooftop panels.
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