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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, 5. Affidavit of Publication
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.
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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 in...

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