CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to the City Light Department; authorizing the Department to enter and participate in the Western Resource Adequacy Program, including the ability to execute additional agreements necessary or convenient to participate in the Western Resource Adequacy Program; and ratifying and confirming certain prior acts.
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WHEREAS, the West faces a looming electric generation resource shortfall as fossil-fuel generation is retired and replaced by large amounts of intermittent renewable resources, such as wind and solar; and
WHEREAS, the potential for a resource shortfall is furthered by load growth in the data center and agricultural sectors and acceleration of electrification in the transportation and building sectors; and
WHEREAS, extreme weather events have increased in frequency and severity, contributing to the uncertainty about whether sufficient generation resources exist to meet the region’s needs; and
WHEREAS, the City Light Department has an obligation to ensure its own resource adequacy - the ability to provide sufficient, qualified resources and supporting transmission for all of its anticipated customer and system peak loads - on a forward projection basis in order to enhance and secure electricity reliability in the region; and
WHEREAS, the Western Resource Adequacy Program (WRAP) is a voluntary, proactive, industry-initiated and -led effort developed by a diverse set of participants and managed by Northwest Power Pool and Western Power Pool Corporation to efficiently and collectively meet the growing resource adequacy challenges and enhance electricity reliability in the region; and
WHEREAS, the WRAP will be governed by a tariff approved by the Federal Energy Regulatory Commission and will consists of two primary elements: (1) a forward showing program through which participants must demonstrate seven months in advance that they have sufficient qualified capacity resources and supporting transmission to serve their peak load and share of planning reserve margin and (2) a real-time operations program through which participants with excess capacity, based on near-term conditions, are requested to holdback capacity during critical periods for potential use by participants who lack sufficient resources to serve their load in real-time; and
WHEREAS, the Department must execute the WRAP Agreement (WRAPA) with the Western Power Pool Corporation to become a participant in the WRAP; and
WHEREAS, the WRAPA allows each participant to elect a binding season when the participant expects to fully adhere to tariff obligations. The Department believes WRAP participation will benefit its customers by pooling resources with other regional generators to protect participants and their customers from unanticipated shortfalls in electric power supply; and
WHEREAS, the Department currently intends to elect a binding season commencing in summer of 2028, but may elect an earlier binding season with two years notice to the WRAP; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. The General Manager and Chief Executive Officer (General Manager) of the City Light Department (Department) is authorized to execute an agreement with the Northwest Power Pool Corporation (NWPP) doing business as Western Power Pool Corporation (WPP) to enter and participate in the Western Resource Adequacy Program (WRAP), substantially in the form of Attachment A to this ordinance (WRAP Agreement or WRAPA). The WRAPA is the participation agreement set forth as Attachment A of the WRAP Tariff (Tariff); the Tariff is attached to this ordinance as Attachment B. The Tariff sets forth the framework for a new, voluntary, electric power resource adequacy planning and compliance program.
Section 2. The Department is authorized to participate in the WRAP in accordance with the WRAP Agreement to the extent and for as long as the General Manager believes participation falls within the range of prudent utility practices for the Department.
Section 3. The General Manager, or General Manager’s designee, is further authorized to execute, for and on behalf of The City of Seattle, additional agreements necessary or convenient for the purpose of participating in the WRAP, including the ability to enter and make amendments and extensions of additional agreements associated with the WRAP participation, provided that such agreements, amendments, and extensions will not cause the Department to exceed its then current budget authority.
Section 4. Any action consistent with this ordinance taken after its passage but prior to its effective date is ratified and confirmed.
Section 5. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.
Passed by the City Council the ________ day of _________________________, 2023, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2023.
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President ____________ of the City Council
Approved / returned unsigned / vetoed this _____ day of _________________, 2023.
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Bruce A. Harrell, Mayor
Filed by me this ________ day of _________________________, 2023.
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Elizabeth M. Adkisson, Interim City Clerk
(Seal)
Attachments:
Attachment A - WRAPA (Attachment A of WRAP Tariff)
Attachment B - Complete WRAP Tariff, including WRAP Agreement