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Record No: CB 120015    Version: 1 Council Bill No: CB 120015
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 3/29/2021
Ordinance No: Ord 126302
Title: AN ORDINANCE relating to the City Light Department; amending rates, terms, and conditions for the use and sale of electricity supplied by the City Light Department for 2021 and 2022; amending Sections 21.49.030, 21.49.052, 21.49.055, 21.49.057, 21.49.058, and 21.49.060 of the Seattle Municipal Code; and ratifying and confirming certain prior acts.
Sponsors: Alex Pedersen
Supporting documents: 1. Summary and Fiscal Note, 2. Presentation, 3. Central Staff Memo, 4. Signed Ordinance 126302

CITY OF SEATTLE

ORDINANCE __________________

COUNCIL BILL __________________

title

AN ORDINANCE relating to the City Light Department; amending rates, terms, and conditions for the use and sale of electricity supplied by the City Light Department for 2021 and 2022; amending Sections 21.49.030, 21.49.052, 21.49.055, 21.49.057, 21.49.058, and 21.49.060 of the Seattle Municipal Code; and ratifying and confirming certain prior acts.

body

WHEREAS, Ordinance 123260 (adopted March 22, 2010) established the Rate Stabilization Account (RSA) to absorb fluctuations in City Light’s annual revenue in any given year due to deviations in net wholesale revenue from the amount assumed in the adopted budget for that year; and

WHEREAS, Section 21.49.086 of the Seattle Municipal Code (SMC) directs City Light to apply and remove automatic surcharges to manage the balance of the RSA; and

WHEREAS, as of January 31, 2021, City Light is currently imposing a 3.0 percent surcharge; and

WHEREAS, RSA surcharge is evaluated on a quarterly basis and the RSA balance as of December 31, 2020 was over $90 million, triggering a removal of a 1.5 percent surcharge on February 1, 2021, under normal operations; and

WHEREAS, due to strong wholesale power prices, favorable hydro conditions, and transfers into the RSA from current surcharge revenues, the expected RSA balance as of March 31, 2021, is projected to exceed $100 million, triggering the removal of the last 1.5 percent surcharge on May 1, 2021, under normal operations; and

WHEREAS, City Light’s 2019-2024 Strategic Plan was approved by the City Council on July 9, 2018 via Resolution 31819, which endorsed average rate increases of 3.6 percent in 2021 and 3.9 percent in 2022; and

WHEREAS, the COVID-19 pandemic and associated decrease in commercial activity have resulted in a projected decrease in 2021 total retail sales in the amount of approximately 3.0 percent compared to previous expectations; and

WHEREAS, City Light did not implement an increase to rates on January 1, 2021, as originally planned in the Adopted 2019-2024 Strategic Plan and compensated for diminished revenues in 2021 from lower sale volumes and no rate change partly by taking one-time cuts of approximately $30 million to operating expenditures, which will need to be restored in 2022 to maintain service levels; and

WHEREAS, due to lower retail sales and two years of cost inflation, City Light’s costs of providing electric service in 2022 have increased beyond the level that can be sustained without a rate increase to current base rates in the amount of 6.9 percent across all current rates; and

WHEREAS, a key priority in City Light’s Adopted 2019-2024 Strategic Plan is to keep customer bills stable; and

WHEREAS, City Council has determined City Light’s policy to provide stable 2021 and 2022 bills is best achieved by keeping effective rates constant in 2021, keeping the current RSA surcharge at 3.0 percent until March 31, 2021, and implementing a 3.0 percent increase to each rate component effective April 1, 2021, occurring simultaneously with the removal of the current 3.0 percent RSA surcharge; and

WHEREAS, SMC Section 21.49.086 allows City Light to pass through Bonneville Power Administration (BPA) costs automatically without legislating new rates in the SMC, and a BPA passthrough effective November 1, 2019, reduced all 2020 per-kilowatt-hour (kWh) charges in the SMC by $0.0019 per kWh, and the 3.0 percent 2021 rate increase will be applied to base rates that reflect the BPA passthrough amount; and

WHEREAS, the City Council has determined that an additional rate increase should be implemented on January 1, 2022, in the form of an across-the-board increase of 3.9 percent with the additional modification that, for residential rates, the 3.9 percent average increase will be imposed by increasing the Base Service Charge by approximately 6.6 percent and the First Block Energy Charge by approximately 7.6 percent, and holding the End Block Energy Charge constant; NOW, THEREFORE, 

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Subsection 21.49.030.A of the Seattle Municipal Code, which section was last amended by Ordinance 125958, is amended as follows:

21.49.030 Residential rates (Schedules RSC, RST, RSS, RSH, RSH, RSE, and RSL)

A. Schedules RSC, RST, RSS, RSH, RSB, RSE, and RSL are for all separately metered residential services. For all residential rate schedules, summer billing is defined as April 1 through September 30, and winter billing is defined as all other days. For all residential rate schedules, the First Block energy charge shall apply to the first 10 kWh per day for summer billing, and the first 16 kWh per day for winter billing. The End Block energy charge shall be applied to all additional kWh.

Schedule RSC (Residential: City)

RSC

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Base Service Charge cents per meter per day

((16.61))

((17.52))

17.97

18.51

19.74

First Block Energy Charge cents per kWh

((7.68))

((8.89))

9.89

9.99

10.75

End Block Energy Charge cents per kWh

((13.06))

((13.06))

13.06

13.26

13.26

Schedule RST (Residential: Tukwila)

RST

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Base Service Charge cents per meter per day

((17.85))

((18.82))

19.29

19.87

21.19

First Block Energy Charge cents per kWh

((8.07))

((9.47))

10.77

10.90

11.16

End Block Energy Charge cents per kWh

((13.89))

((13.89))

13.88

14.10

14.10

Schedule RSS (Residential: Suburban)

RSS

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Base Service Charge cents per meter per day

((16.61))

((17.52))

17.97

18.51

19.74

First Block Energy Charge cents per kWh

((7.68))

((8.89))

9.89

9.99

10.75

End Block Energy Charge cents per kWh

((13.06))

((13.06))

13.06

13.26

13.26

Schedule RSH (Residential: Shoreline)

RSH

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Base Service Charge cents per meter per day

((17.94))

((18.93))

19.41

19.99

21.32

First Block Energy Charge cents per kWh

((8.11))

((9.52))

10.83

10.96

11.23

End Block Energy Charge cents per kWh

((13.96))

((13.96))

13.96

14.18

14.18

North City Undergrounding Charge cents per kWh

((0.07))

((0.07))

0.07

0.07

0.07

Aurora 1 Undergrounding Charge cents per kWh

((0.17))

((0.17))

0.17

0.17

0.17

Aurora 2 Undergrounding Charge cents per kWh

((0.18))

((0.18))

0.18

0.18

0.18

Aurora 3A Undergrounding Charge cents per kWh

((0.05))

((0.05))

0.05

0.05

0.05

Aurora 3B Undergrounding Charge cents per kWh

((0.22))

((0.22))

0.22

0.22

0.22

Schedule RSB (Residential: Burien)

RSB

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Base Service Charge cents per meter per day

((17.61))

((18.57))

19.41

19.99

21.32

First Block Energy Charge cents per kWh

((7.96))

((9.34))

10.83

10.96

11.23

End Block Energy Charge cents per kWh

((13.70))

((13.70))

13.96

14.18

14.18

First Avenue South 1 Undergrounding Charge cents per kWh

((0.37))

((0.37))

0.37

0.37

0.37

First Avenue South 2 Undergrounding Charge cents per kWh

((0.13))

((0.13))

0.13

0.13

0.13

Schedule RSE (Residential: SeaTac)

RSE

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Base Service Charge cents per meter per day

((17.94))

((18.93))

19.41

19.99

21.32

First Block Energy Charge cents per kWh

((8.11))

((9.52))

10.83

10.96

11.23

End Block Energy Charge cents per kWh

((13.96))

((13.96))

13.96

14.18

14.18

Schedule RSL (Residential: Lake Forest Park)

RSL

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Base Service Charge cents per meter per day

((18.01))

((18.93))

19.41

19.99

21.33

First Block Energy Charge cents per kWh

((8.14))

((9.53))

10.83

10.96

11.23

End Block Energy Charge cents per kWh

((14.01))

((13.97))

13.96

14.18

14.19

* * *

Section 2. Subsection 21.49.052.A of the Seattle Municipal Code, which section was last amended by Ordinance 125958, is amended as follows:

21.49.052 Small general service (Schedules SMC, SMT, SMS, SMH, SMB, SMD, SME, and SML)

A. Small general service is general service provided to customers who are not demand metered or, if demand metered, have had in the previous calendar year more than half of their normal billings at less than 50 kW of maximum demand. Classification of new customers as small general service customers will be based on the Department's estimate of maximum demand in the current year. Customers who are assigned flat rate bills shall be charged according to small general service rates.

Schedule SMC (Small General Service: City)

SMC

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((9.46))

((9.88))

10.41

10.53

10.94

Minimum Charge dollars per meter per day

(($0.32))

(($0.38))

$0.39

$0.40

$0.42

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer investment credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

Schedule SMT (Small General Service: Tukwila)

SMT

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((9.90))

((10.33))

10.87

11.00

11.43

Minimum Charge dollars per meter per day

(($0.34))

(($0.41))

$0.42

$0.43

$0.45

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer investment credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

Schedule SMS (Small General Service: Suburban)

SMS

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((9.46))

((9.88))

10.41

10.53

10.94

Minimum Charge dollars per meter per day

(($0.32))

(($0.38))

$0.39

$0.40

$0.42

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer investment credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

Schedule SMH (Small General Service: Shoreline)

SMH

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((9.93))

((10.36))

10.92

11.05

11.48

Minimum Charge dollars per meter per day

(($0.34))

(($0.41))

$0.42

$0.43

$0.45

North City Undergrounding Charge cents per kWh

((0.07))

((0.07))

0.07

0.07

0.07

Aurora 1 Undergrounding Charge cents per kWh

((0.17))

((0.17))

0.17

0.17

0.17

Aurora 2 Undergrounding Charge cents per kWh

((0.18))

((0.18))

0.18

0.18

0.18

Aurora 3A Undergrounding Charge cents per kWh

((0.05))

((0.05))

0.05

0.05

0.05

Aurora 3B Undergrounding Charge cents per kWh

((0.22))

((0.22))

0.22

0.22

0.22

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer investment credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

Schedule SMB (Small General Service: Burien)

SMB

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((9.74))

((10.18))

10.92

11.05

11.48

Minimum Charge dollars per meter per day

(($0.33))

(($0.40))

$0.42

$0.43

$0.45

First Avenue South 1 Undergrounding Charge cents per kWh

((0.37))

((0.37))

0.37

0.37

0.37

First Avenue South 2 Undergrounding Charge cents per kWh

((0.13))

((0.13))

0.13

0.13

0.13

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer investment credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

Schedule SME (Small General Service: SeaTac)

SME

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((9.93))

((10.36))

10.92

11.05

11.48

Minimum Charge dollars per meter per day

(($0.34))

(($0.41))

$0.42

$0.43

$0.45

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer investment credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

Schedule SMD (Small General Service: Network)

SMD

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((9.46))

((9.88))

10.41

10.53

10.94

Minimum Charge dollars per meter per day

(($0.32))

(($0.38))

$0.39

$0.40

$0.42

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer investment credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

Schedule SML (Small General Service: Lake Forest Park)

SML

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((9.96))

((10.37))

10.92

11.05

11.48

Minimum Charge dollars per meter per day

(($0.34))

(($0.41))

$0.42

$0.43

$0.45

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer investment credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

* * *

Section 3. Subsection 21.49.055.A of the Seattle Municipal Code, which section was last amended by Ordinance 125958, is amended as follows:

21.49.055 Medium general service (Schedules MDC, MDT, MDS, MDH, MDB, MDD, MDE, and MDL)

A. Medium general service is general service provided to customers who have in the previous calendar year half or more than half of their normal billings at 50 kW of maximum demand or greater and have more than half of their normal billings at less than 1,000 kW of maximum demand. Classification of new customers will be based on the Department's estimate of maximum demand in the current year.

Schedule MDC (Medium Standard General Service: City)

MDC

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((7.26))

((7.54))

7.99

8.03

8.34

Demand Charge dollars per kW

(($3.44 ))

(($3.80))

$3.89

$4.01

$4.17

Minimum Charge dollars per meter per day

(($0.80))

(($1.21))

$1.24

$1.28

$1.33

Power Factor Charge cents per kVarh

(($0.15))

(($0.15))

(($))0.15

0.15

0.15

Transformer Investment Credit per kW of monthly maximum demand

(($0.27))

(($0.26))

$0.26

$0.27

$0.28

Transformer losses discount in kWh

.53285 × kW + .00002 × kW^2 + .00527 × kWh

Schedule MDT (Medium Standard General Service: Tukwila)

MDT

((Effective January 1, 2018))

((Effective January 1, 2019))

Effective January 1, 2020

Effective April 1, 2021

Effective January 1, 2022

Energy Charge cents per kWh

((7.84))

((8.14))

8.61

8.67

9.01

Demand Charge dollars per kW

(($3.71))

(($4.09))

$4.19

$4.32

$4.49

Minimum Charge dollars per meter per day

(($0.86))

(($1.31))

$1.34