"Yes" and "RCW 74.38.070", these are the answers

"The answer to perplexing issues can frequently be found more easily that you might think, that is, if you are willing to seek them"

Now, what was that question again?   Can our PUD offer reduced rates for power to low income senior citizens, or, for that matter, any low-income citizens.

Fortunately, the answer is YES, my favorite answer.  The other question is by what authority can this be done?  A Washington State Law,  RCW 74.38.070.  I have included the text of the law below.  But, first, I want to give credit for this discovery to a local group of citizens, Friends of Public Power, banded together to support our PUD attaining its full potential as well as working on other great projects.

RCW 74.38.070 Reduced utility rates for low-income senior citizens and other low-income citizens.

Notwithstanding any other provision of law, any county, city, town, public utility district or other municipal corporation, or quasi municipal corporation providing utility services may provide such services at reduced rates for low-income senior citizens or other low-income citizens: PROVIDED, That, for the purposes of this section, "low-income senior citizen" or "other low-income citizen" shall be defined by appropriate ordinance or resolution adopted by the governing body of the county, city, town, public utility district or other municipal corporation, or quasi municipal corporation providing the utility services. Any reduction in rates granted in whatever manner to low-income senior citizens or other low-income citizens in one part of a service area shall be uniformly extended to low-income senior citizens or other low-income citizens in all other parts of the service area.

[2002 c 270 § 1; 1998 c 300 § 8; 1990 c 164 § 1; 1988 c 44 § 1; 1980 c 160 § 1; 1979 c 116 § 1.]

Notes:

     Findings -- Intent -- 1998 c 300: See RCW 19.29A.005.     Construction -- Severability -- 1998 c 300: See RCW 19.29A.900 and 19.29A.901.
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Thanks Jeff and all the members of "Friends". (The local group, not the TV show)
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Under Findings--Intent, see RCW 19.29A.005 see below.  I underlined the most relevant portions

RCW 19.29A.005 Findings — Intent.

(1) The legislature finds that:
     (a) Electricity is a basic and fundamental need of all residents; and

     (b) Currently Washington's consumer-owned and investor-owned utilities offer consumers a high degree of reliability and service quality while providing some of the lowest rates in the country.

     (2) The legislature intends to:

     (a) Preserve the benefits of consumer and environmental protection, system reliability, high service quality, and low-cost rates;

     (b) Ensure that all retail electrical customers have the same level of rights and protections; and

     (c) Require the adequate disclosure of the rights afforded to retail electric customers.

[1998 c 300 § 1.]
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Good things are possible when the right people are committed to the cause!!!
Tony