Tacoma Power charges approximately 10 cents per kilowatt-hour. Seattle City Light charges around 12 cents. The national average is above 16 cents. For any business where power is a meaningful operating cost — data centers, manufacturing, cold storage, EV charging, cannabis cultivation, food processing — Tacoma’s municipal utility rate is a structural competitive advantage that compounds every month you operate here. Welcome to the 10-Cent City.
The Rate Advantage Is Real and Durable
Tacoma Power is a division of Tacoma Public Utilities, a customer-owned municipal utility that has served the city since 1893. Because it’s municipally owned rather than investor-owned, Tacoma Power doesn’t need to generate returns for shareholders — its mandate is reliable service at cost. This structural difference explains why rates have remained consistently below both regional IOUs and the national average for decades.
The rate advantage isn’t a temporary promotional offer or an introductory teaser. It reflects the underlying cost structure of Tacoma Power’s generation portfolio, which is dominated by low-cost hydroelectric resources. When your fuel cost is essentially gravity and water — resources that don’t fluctuate with natural gas prices or coal markets — your delivered cost of electricity stays flat while competitors’ costs ride commodity cycles.
88% Non-Emitting Generation
According to Tacoma Power’s published generation mix data, approximately 88% of the utility’s power supply comes from non-emitting sources — primarily hydroelectric generation from facilities on the Skokomish, Nisqually, and Cowlitz river systems. The remaining generation comes from market purchases and a small amount of natural gas peaking capacity.
For companies with ESG commitments, Scope 2 emissions reporting requirements, or customers who demand clean energy supply chains, Tacoma Power’s generation mix solves the problem without requiring the purchase of Renewable Energy Certificates (RECs) or corporate Power Purchase Agreements (PPAs). Your electricity is already 88% clean by default — no additional cost, no complex procurement, no greenwashing risk.
Washington State’s Clean Energy Transformation Act (CETA) requires all utilities to achieve 100% clean electricity by 2045, with intermediate targets of 80% by 2030. Tacoma Power is already essentially compliant with the 2030 target today — years ahead of schedule and without the rate increases that other utilities will impose on customers to fund their transitions.
Who Benefits Most From the 10-Cent Rate
The power cost advantage is universal, but it’s most impactful for energy-intensive operations. Consider the math for a few scenarios common to Tacoma’s industrial base:
A mid-size data center consuming 5 MW of continuous load uses approximately 43.8 million kWh annually. At Tacoma’s rate versus the national average, that’s roughly $2.6 million in annual savings — enough to fund additional infrastructure investment, hire more staff, or simply improve margins.
A cold storage facility operating 200,000 SF of refrigerated warehouse space at the Port of Tacoma corridor might consume 3-5 million kWh annually for refrigeration alone. The rate differential versus competing locations translates to $200,000-$300,000 per year in reduced operating cost.
Manufacturing operations — particularly metals, plastics, and food processing — see similar advantages. Any process involving electric motors, heating elements, or compressed air systems runs cheaper in Tacoma than in virtually any other major metro on the West Coast.
Reliability and Capacity
Cheap power means nothing if it’s unreliable. Tacoma Power maintains strong reliability metrics, with the utility consistently performing above national averages for System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI). The utility’s infrastructure investment program continues to underground lines, upgrade substations, and modernize the grid.
For large-load customers, Tacoma Power has the capacity to serve major new loads through its existing system infrastructure. The utility works directly with economic development prospects on service planning for large facilities, including dedicated substations where load justifies the investment.
The Site Selection Differentiator
When companies run site selection analyses for new facilities, power cost ranks in the top three factors for any energy-intensive operation. Tacoma’s combination of low cost (10¢/kWh), clean generation (88% non-emitting), reliable delivery, and available capacity makes it competitive with locations like the Columbia Basin that have traditionally dominated cheap-power site searches.
But unlike remote eastern Washington locations, Tacoma offers urban infrastructure: proximity to the Port, an international airport (Sea-Tac) within 25 miles, a deep labor pool, and the services and amenities that employees expect. You don’t have to choose between cheap power and a functional business environment — in Tacoma, you get both.
The Pierce County Economic Development Board actively markets the power cost advantage to prospects in data centers, advanced manufacturing, cold chain logistics, and other energy-intensive sectors. It’s one of the strongest “hard” differentiators in the county’s economic development toolkit — a verifiable, persistent, structural cost advantage that doesn’t depend on incentive packages or tax breaks.
FAQ
What is Tacoma Power’s average electricity rate?
Tacoma Power charges approximately 10 cents per kilowatt-hour for commercial and industrial customers, significantly below the national average of 16+ cents/kWh and below Seattle City Light’s rate of approximately 12 cents/kWh.
What percentage of Tacoma Power’s electricity is from clean sources?
Approximately 88% of Tacoma Power’s generation comes from non-emitting sources, primarily hydroelectric facilities. This exceeds Washington State’s 2030 clean energy target of 80% and eliminates the need for additional REC purchases or corporate PPAs for most Scope 2 reporting.
Is Tacoma Power a private or public utility?
Tacoma Power is a customer-owned municipal utility, a division of Tacoma Public Utilities. Because it doesn’t generate investor returns, its rates reflect actual cost of service rather than shareholder expectations, which is why rates remain structurally below investor-owned utility averages.
Can Tacoma Power handle large new electrical loads?
Yes. Tacoma Power has available system capacity for major new loads and works directly with economic development prospects on service planning, including dedicated substations for facilities that justify the infrastructure investment.
How does Tacoma’s power cost compare for data centers specifically?
A 5 MW data center consuming 43.8 million kWh annually saves approximately $2.6 million per year at Tacoma’s rate versus the national average. Combined with clean generation for Scope 2 compliance, this makes Tacoma competitive with traditional data center markets in eastern Washington and Oregon.