AN ORDINANCE relating to the City Light Department; authorizing the Department to participate in the California Independent System Operator’s Energy Imbalance Market, including authorizing the execution of any necessary agreements with the California Independent System Operator, as well as any additional agreements necessary or convenient for implementation and participation in the California Independent System Operator’s Energy Imbalance Market.
After all, the last time City Light was part of an energy imbalance market in California, the Enron debacle happened. To be clear, City Light has assured us that they have protections in place to avoid that in the future. But again, for us, it's a question of adequate oversight. The Council bill was amended in committee to allow City Light to explore entering the energy imbalance market, retaining for the Council the opportunity to take further action before that is finalized. The Energy and Environment Committee recommends passage of the bill as amended. And additionally, I understand Captain Gonzalez has an amendment for a report back which would be considered friendly. Thank you, Councilmember Swan, Councilmember Gonzalez. Thank you, Council President. The amendment that I have would impose a deadline of April ten, 2017, by which time Seattle City Light must provide the Council with a detailed analysis of the costs, benefits and potential risks of participation in the Kaiser's EIA. This deadline would allow the Council to receive and review the results of this analysis in a reasonable time frame and grant city light sufficient time to conduct the analysis that is required. The fiscal note has also been updated to accurately reflect the cost of evaluating potential participation within the utility's existing resources. The E.M. or Energy Imbalance Market is an auction market for balancing supply and demand in five minute increments. The AM is relatively young, with several large utilities considering entry into this market. Several weeks ago, I expressed concerns about jumping into this market based on Seattle City Lights presentation me to the Energy and Environment Committee on September 27th , 2016. While participation in this market, if done correctly, could potentially produce anywhere in the range of 4 to $23 million per year in additional revenue, I was concerned about the utility's preparedness to enter into the market, given the significant startup investments that would be required. For example, Seattle City Wide Conservatively estimates a $4 million per year increase in revenue, but also projects a $2.8 million increase in costs and a need to invest $8.8 million in upfront capital investments in order to move forward. B 8.8 million in front in upfront capital investments with would similar to the new customer billing information system requiring new software infrastructure, new personnel, new training for that personnel, vendor building and testing, utility testing, metered designs and installations over a period of three years before the utility even saw any revenue because there are significant risks that accompany the varying revenue projections. I have asked the City Light to report back to council by April 10th, 2017 to provide Council members with sufficient time to analyze the prospects of authorizing Seattle City Light to enter into what would be a new line of business for the utility and those that request is reflected in the amendment that my office circulated to all councilmember offices last Friday. So I would move for adoption of amendment to council bill 118798 with substitute section four. Okay, let's take the amendment first has been moved in second to substitute section four with the language described by Councilmember Gonzales. All those in favor of the amendment say I. I opposed. The ayes have it. So now we have an amended bill. Are there any further comments from any of our colleagues? And again, I want to thank Councilmember Swamp for being willing to hold this for a few weeks and for Councilmember Gonzalez's continued diligence on this matter. So we have a hopefully a piece of legislation that is acceptable to the council. So hearing no further comments, please call the roll on the passage of the amended. Bill Bagshaw. Burgess. Gonzales. Herbold II. Johnson, Suarez, I. O'Brien. So weren't I. President Harrell. I. Nine in favor and unopposed. Thank you. The bill passed and chair will sign it. If that's our sole piece of legislation. Is there any? Further business to come for the council. Council member Herbold. I should first thank you. I'd like to ask to be excused from the December 5th full council meeting. 12 five. I don't hear second to second in. The Council member will be excused from December 5th, 2017 council meeting. And I'm aware that we have many folks absent that day. All those in favor say I. I oppose. The ayes have it. Councilmember Gonzalez. I just wanted to suspend the rules really quickly, if I may, to make a quick comment. That would be absolutely acceptable. Are. Is there any further business on any absences before. Councilmember Gonzales. The rules are suspended. The rules are. Suspended. Thank you. I just want to do it for the viewing public. And my colleagues acknowledge that we have a 10th person sitting at the dais with us this afternoon, and this is actually the Solow who lives in West Seattle. She is a social work student at the University of Washington in Tacoma and is shadowing me and my team today, learning about how Seattle government works and how democracy works, and have really appreciated everybody's willingness to make her make her comfortable. And so I think this is the first time we've had a non councilmember sit up at that at the dais. And so I want to thank everybody for their graciousness in allowing me to, to, to bring this young woman who's hopefully will run for office someday up to the dais to see what it feels like to be on this side of the dais. So thank you so much and thank you for joining us. Thank you. Very good. Thanks for that. I thought I heard her say I a few times. I want to thank everyone to have a great day. With that will stand adjourned. Get ten votes on things.