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Natural gas is provided to Mercer Island by Puget Sound Energy (PSE) under a franchise agreement with the City. The current 15 year agreement expires in the year 2028, with the City having the right to grant a five year extension. The delivery of natural gas is regulated by the Federal Energy Regulation Commission, the National Office of Pipeline Safety, and the Washington Utilities and Transportation Commission (WUTC). These agencies determine service standards, and safety and emergency provisions. The WUTC also sets rates.

Natural gas is delivered to Mercer Island via an interstate pipeline system that is owned and operated by Northwest Pipeline Corp. The pipeline connects to PSE’s regional distribution network. Natural gas consumed in the Pacific Northwest comes from a variety of sources in the United States and Canada.