If approved by the Washington Utilities and Transportation Commission, the rates could go into effect in March 2005, the utility, a unit of Puget Energy (PSD.N: Quote, Profile, Research) , said in a statement. The increases would raise an average monthly electricity bill by 5.7 percent, or $4.06, and a gas bill by 6.3 percent, or $4.47. Higher rates will put the utility "in a better position to secure reasonably priced investment capital and to more aggressively protect customers through hedges that act as insurance against wholesale energy price spikes or the rate effects of poor hydropower conditions," the utility said. The rate case is in addition to a separate electricity rate increase of about $54 million to pay higher costs of electricity supplies. A decision in that case is expected this month, said Kimberly Harris, the utility's vice president of regulatory and government affairs. Harris also said the case seeking higher rates next year asks for an approved return on equity of 11.75 percent versus 11 percent ordered in the utility's 2001 rate case. Puget Sound Energy is Washington's biggest regulated utility with 977,743 electric and 644,629 gas customers. PIN//Reuters