Residential customers of Puget Sound Energy (PSE) will see a 1.7 percent reduction in their natural gas rates due to the fall in wholesale market prices, state regulators announced.

The Washington Utilities and Transportation Commission (UTC) approved the utility’s request to reduce natural gas rates starting June 1 in response to excess supply caused by a weak economy resulting in a sharp decline in wholesale natural gas prices.

The average bill for the typical residential customer, based on 68 therms of average monthly usage over a year, will drop by 1.7 percent, or $1.62, to $93.18.

Natural gas companies are required to adjust rates periodically to reflect the changes in wholesale prices. PSE indicated that, if wholesale natural gas costs continue to drop, it could seek an additional rate reduction in October.

Bellevue-based Puget Sound Energy serves nearly 750,000 natural gas customers in parts of King, Snohomish, Pierce, Lewis, Thurston and Kittitas counties.

The three-member commission is the state agency in charge of regulating the private, investor-owned natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.