CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to the City Light Department; authorizing the execution of a 16-year power purchase agreement with the Bonneville Power Administration and related agreements.
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WHEREAS, the City Light Department (City Light) has been delegated continuing authority to enter into power supply contracts of up to 60 months in duration; and
WHEREAS, City Light has been required to seek specific ordinance authority to enter into any longer-term power purchase contracts; and
WHEREAS, for several decades, City Light has purchased power from the Bonneville Power Administration (BPA) as a preference customer to meet a portion of its electric load (approximately 40 percent under the current load forecast), and City Light is currently under a 2012 power sales contract that will expire September 30, 2028; and
WHEREAS, BPA is a key regional partner in the economy and environment of the Pacific Northwest by providing revenues from the sale of electricity to pay the annual and capital expenses of the Federal Columbia River Power System, including substantial fish and wildlife restoration costs and debt service to the United States Treasury to repay the Federal government's investments in the system; and
WHEREAS, BPA initiated its new contract implementation process in 2022 to develop Provider of Choice power sales contracts and to engage a stakeholder process to determine the terms and conditions under which it will offer power to its preference customers after the current power supply contracts expire; and
WHEREAS, City Light staff recommend that City Light purchase an amount not to exceed its Contract High Water Mark (a value that sets the maximum amount of power available at the lowest cost rates throughout the contract term) from BPA under a Provider of Choice power sales agreement following BPA's Tier 1 rate design; and
WHEREAS, upon a determination of need based on integrated resou...
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