washington business
With its extensive hydropower system, Washington has long benefited from some of the most affordable, reliable and clean electricity in the nation. The state has the cheapest rates for residential electricity and the fifth lowest for industrial customers, according to AWB’ s 2025 Competitiveness Redbook.
“ Now we see demand for energy skyrocketing,” said Matt Steuerwalt, senior vice president of external affairs at Puget Sound Energy. Demand continues to outpace the ability to bring new resources online at scale, he added.“ Meeting the demand over the next 5 to 10 years will be job one.”
While hydropower is the backbone of the state’ s energy portfolio, natural gas remains an essential and reliable source, Steuerwalt noted. Advances in nuclear power are also promising, offering reliable, around-the-clock generation capacity.
“ We need new generation capacity and we need to work with our political leaders to find a balance of what’ s clean, affordable and still reliable for our state,” said Jason Thackston, senior vice president of energy policy and chief strategy officer at Avista Corp.
Continued investment in energy storage and transmission is also critical. It takes more than 10 years on average to permit a transmission line, before construction even begins, underscoring the need for faster, better-coordinated permitting processes.
Many high-tech businesses— from sustainable aviation fuel producers to advanced battery manufacturers— cite Washington’ s clean, low-cost electricity as a key reason for locating here.
“ Businesses are willing to spend the money to locate in Washington, but the electricity has to be here,” said Bob Schuetz, CEO of Energy Northwest.
“ We need new generation capacity and we need to work with our political leaders to find a balance of what’ s clean, affordable and still reliable for our state.”
— Jason Thackston, senior vice president of energy policy and chief strategy officer at Avista Corp. pillar four: place and community
Across Washington, a shortage of affordable housing strains families, employers and economies.“ We have jobs here, but if we can’ t bring employees here to live, that’ s a drag on the economy,” said Spencer
Gardner, planning director for the City of Spokane. The Housing Affordability Index measures whether a middle-income family can afford mortgage payments on a median-priced home. When the index falls below 100, housing is considered unaffordable.“ Washington’ s housing affordability index has dropped 41 % since 2020, leaving only four counties affordable for middle-income families,” Johnson said.“ We need to create more housing, of all types, faster.” By 2040, Washington will need 1 million new homes to house a growing population, state projections show.“ Fundamentally we have a supply problem, and it’ s a self-inflicted supply problem,” said Tim Schauer, a
Vancouver-based professional engineer and developer with more than 30 years of experience. Addressing zoning restrictions, permitting delays and unrealistic requirements for builders is key to boosting supply, Johnson said.
Some communities are making progress. In Spokane— where home prices have doubled in the past decade— zoning reforms opened the door to mixed-income neighborhoods with a greater variety of housing types, adding duplexes, triplexes and small starter homes. The result: a record number of new housing units permitted in 2024.
The goal of building a stronger, more resilient Washington will require new ideas and collaboration. Washington in the Making 2040 provides a roadmap for the work ahead.
Visit WA2040. org or follow the QR code to read the report fall 2025 35