AN ORDINANCE relating to the City Light Department; directing the transfer of certain funds in the Light Fund into the Rate Stabilization Account in 2021; and amending Section 21.49.086 of the Seattle Municipal Code to simplify the operation of the Rate Stabilization Account.
The report of the Transportation and Utilities Committee Agenda Item five Council Bill 120233. An ordinance relating to the City Light Department directing the transfer of certain funds in the Light Fund into the rate stabilization account in 2021 and amending Section 21.4 9.086 of the Seattle Municipal Code to simplify the operation of the rate stabilization account. The Committee recommends the Council pass the bill. Thank you so much, Councilmember Peterson. As chair of the Transportation and Utilities Committee, you are recognized in order to provide the committee report. Thank you. Council President Pro Tem Colleagues Council Bill 120233 is Seattle City Lights Proactive Policy to protect ratepayers from increased charges by adjusting its rate stabilization account. The Rate Stabilization Account was created by the Council so City Light would have a reserve to buffer ratepayers from the ups and downs of the wholesale power market. Revenue put into the RSA from sales on that market during high water flow periods is a major factor in the utility's ability to avoid raising rates during prior times of the year when the utility has to buy power to meet customer needs. However, the weather does not always cooperate, as the summary in fiscal note indicates. In early 2021, the outlook for the same strong and no surcharge was expected to come back on within the next year. However, dry hydro conditions, combined with exceptionally hot weather and high wholesale market prices, quickly depleted the RSA balance during the third quarter. Council 4120233 does two things. It moves money from another account city light into the RSA to avoid adding a 3% surcharge to the customers bills. And it simplifies the RSA structure to make surcharges a less frequent occurrence. These changes will not adversely impact Seattle's resilience bond rating or its debt coverage ratio. The committee recommended passage unanimously. Thank you. Thank you, Councilmember Peterson. Any additional comments from club members on the passage of the bill? Kate, seeing none of the clerk fees, all the roll on the passage of the bill. Whereas I Lewis. I was scared to. By. Peterson. Hi. Sergeant. Yes. Strauss. Yes. Council President, Pro Tem Herbold? Yes. Seven in favor. Nine opposed. Thank you. The bill passes and the chair will sign it. The clerk, please, affixed my signature to the legislation on my behalf. Moving on sex on the agenda. Please read item six The Record.