>>> WE ARE RECORDING.
>> GOOD MORNING, EVERYBODY. AND
HAPPY NEW YEAR. TODAY IS
JANUARY 11th. AND TODAY'S
MEETING OF THE ECONOMIC
DEVELOPMENT TECHNOLOGY AND CITY
LIGHT COMMITTEE WILL COME TO
ORDER. IT IS 9:32 A.M. AND I AM
SARA NELSON CHAIR OF THE
COMMITTEE. WILL THE CLERK
PLEASE CALL THE ROLE?
>> COUNCIL PRESIDENT JUAREZ.
>> HERE.
>> COUNCILMEMBER SAWANT.
COUNCILMEMBER STRAUSS?
>> PRESENT.
>> COUNCILMEMBER HERBOLD?
>> HERE.
>> CHAIR NELSON?
>> PRESENT.
>> IT'S FOUR PRESENT.
>> ALL RIGHT. HELLO. THERE IS
ONE ITEM ON TODAY'S AYENTA. A
BRIEFING AND DISCUSSION ON
WESTERN ENERGY MARKETS
PRESENTED BID SEATTLE CITY
LIGHT AND I UNDERSTAND THAT
COUNCILMEMBER STRAUSS WILL NEED
TO LEAVE THE MEETING EARLY AT
ABOUT 10:00. BUT THAT YOU
COUNCILMEMBER STRAUSS, HAVE
BEEN FULLY BRIEFED ON THE ITEM
TODAY.
>> YES, THANK YOU CHAIR. CITY
LIGHT HAS DONE A GREAT JOB OF
GIVING ME A GREAT BRIEFING AND
I'M LOOKING FOR WARD FOR MORE.
>> OKAY. SO THAT'S OUR AGENDA
FOR TODAY. ARE THERE ANY
OBJECTIONS? SEEING NONE, THE
AGENDA IS ADOPTED. OKAY. WELL,
WITH THAT WE'LL MOVE INTO HE
PUBLIC COMMENT ON ITEM LISTED
ON THE AGENDA. PLEASE ROLL THE
VIDEO.
I DO HAVE TO SAY THAT --
>> OF THE -- REGION.
>> YEAH. PAUSE. OKAY. I SEE
THAT THERE ARE SOME COMMENTERS
THAT HAVE COME FROM FAR AWAY.
FROM -- FROM THE SKAGIT I
BELIEVE. SO BECAUSE YOU ARE NOT
FAMILIAR WITH US, WE DON'T
SPEAK ON ITEMS THAT ARE NOT ON
THE AGENDA. I AM MAKING AN
EXCEPTION BECAUSE YOU ARE
UNFAMILIAR WITH THIS PRACTICE.
AND DIFFERENT COMMITTEES DO
PUBLIC COMMENT DIFFERENTLY. SO
I WILL MAKE THAT EXCEPTION
TODAY. GO ON, PLEASE.
>> HELLO SEATTLE. WE ARE THE
EMERALD CITY. THE CITY OF
FLOWERS AND THE CITY OF
GOODWILL. BUILT ON INDIGENOUS
LAND, THE TRADITIONAL TERRITORY
OF THE COCHEHALIS PEOPLES. THE
SEATTLE CITY COUNCIL WELCOMES
REMOTE PUBLIC COMMENT AND IS
EAGER TO HEAR FROM RESIDENTS OF
THE CITY. IF YOU WOULD LIKE TO
BE A SPEAKER AND PROVIDE VERBAL
PUBLIC COMMENT. REGISTER WHO
HOURS PRIOR TO THE MEETING VIA
THE SEATTLE CITY COUNCIL
WEBSITE. HERE'S SOME
INFORMATION ABOUT THE PUBLIC
COMMENT PROCEEDINGS. SPEAKERS
ARE CALLED UPON IN THE IN ORDER
IN WHICH THEY REGISTERED ON THE
COUNCIL'S WEBSITE. EACH SPEAKER
MUST CALL IN FROM THE PHONE
NUMBER PROVIDED WHEN THEY
REGISTERED ONLINE AND USE THE
MEETING ID AND PASS CODE THAT
WAS EMAILED UPON CONFIRMATION.
IF YOU DIDN'T RECEIVE AN EMAIL
CONFIRMATION, CHECK SPAM OR
JUNK MAIL. THE SPEAKER MEETING
ID IS DIFFERENT FROM THE
GENERAL LISTEN LINE MEETING ID
PROVIDED ON THE AGENDA. ONCE
THE SPEAKER'S NAME IS CALLED,
THE SPEAKER'S MICROPHONE WILL
BE UNMUTED AND AN AUTOMATIC
PROMPT WILL SAY, THE HOST WOULD
LIKE YOU TO UNMUTE YOUR
MICROPHONE. THAT IS YOUR CUE
THAT IT'S YOUR TURN TO SPEAK.
AT THAT TIME, YOU MUST PRESS
STAR 6. YOU WILL THEN HEAR A
PROMPT OF, YOU ARE UNMUTED. BE
SURE YOUR PHONE IS UNMUTED ON
YOUR END SO THAT YOU WILL BE
HEARD. AS A SPEAKER, YOU SHOULD
BEGIN BY STATING YOUR NAME AND
THE ITEM YOU ARE ADDRESSING. A
CHIME WILL SOUND WHEN TEN
SECONDS ARE LEFT IN YOUR ALLOT
TIME. AS GENTLE REMINDER TO
WRAP UP YOUR PUBLIC COMMENTS.
AT THE END OF THE ALLOTTED
TIME, YOUR MICROPHONE WILL BE
MUTED AND THE NEXT SPEAKER
REGISTERED WILL BE CALLED. ONCE
SPEAKERS COMPLETED PROVIDING
PUBLIC COMMENT, PLEASE
DISCONNECT FROM THE PUBLIC
COMMENT LINE. AND JOIN US BY
FOLLOWING THE MEETING VIA
SEATTLE CHANNEL BROADCAST OR
THROUGH THE LISTENING LINE
OPTION LISTED ON THE AGENDA.
THE COUNCIL RESERVES THE RIGHT
TO ELIMINATE PUBLIC COMMENT IF
THE SYSTEM IS BEING ABUSED. OR
IF THE PROCESS IMPEDES THE
COUNCIL'S ABILITY TO CONDUCT
ITS BUSINESS ON BEHALF OF
RESIDENTS OF THE CITY. ANY
OFFENSIVE LANGUAGE THAT'S
DISRUPTIVE TO THESE PROCEEDINGS
OR THAT'S NOT FOCUSED ON AN
APPROPRIATE TOPIC AS SPECIFIED
IN COUNCIL RULES MAY LEAD TO
THE SPEAKER BEING MUTED BY THE
PRESIDING OFFICER. OUR HOPE IS
TO PROVIDE AN OPPORTUNITY FOR
PRODUCTIVE DISCUSSIONS THAT
WILL ASSIST OUR ORDERLY
CONSIDERATION OF ISSUES BEFORE
THE COUNCIL. THE PUBLIC COMMENT
PERIOD IS NOW OPEN. AND WE WILL
BEGIN WITH THE FIRST SPEAKER ON
THE LIST. PLEASE REMEMBER TO
PRESS STAR 6 AFTER YOU HEAR THE
PROMPT OF, YOU HAVE BEEN
UNMUTED. THANK YOU, SEATTLE.
>> ALL RIGHT. WE WILL START
WITH IN-PERSON COMMENTERS AND
EVERYBODY WILL HAVE TWO MINUTES
AND WE'LL PROCEED IN THE ORDER
IN WHICH PEOPLE REGISTERED TO
SPEAK ON THE SIGNUP SHEET. SO
COULD YOU PLEASE CALL THE FIRST
SPEAKER?
>> THE FIRST SPEAKER IS ALLEN
ROSIMA.
>> CAN YOU SPEAK UP OR --
PLEASE HOLD ONE MOMENT, PLEASE.
NEED TO MAKE SURE THAT
YOURMICROPHONE IS ON. OKAY,
IT'S ON. PROCEED.
>> MY NAME IS ALLEN ROSIMA.
EXECUTIVE DIRECTOR OF SKAGIT
TONY'S OBSERVE FARMLAND LOCATED
IN MOUNT VERNON, WASHINGTON AND
JUST TAKE THIS OPPORTUNITY TO
PROVIDE SOME COMMENT ABOUT THE
PROCESS THAT'S OCCURRING WITH
SEATTLE CITY LIGHT IN THE
HYDROPROJECTS UPRIVER FROM
WHERE THE LOCAL FARMLAND IN
SKAGIT COUNTY EXISTS. BY WAY OF
BACKGROUND, SKAGIT VALLEY IS
HOME TO ONE OF ONLY TWO FULLY
FUNCTIONING AG ECONOMIES LEFT
IN PUGET SOUND. AND IT IS HOME
BY ALL MEASURE TO ONE OF THE
HEALTHIEST WATERSHEDS LEFT IN
PUGET SOUND. AND THIS IS NOT BY
ACCIDENT. THERE'S BEEN OVER
HALF A CENTURY OF LOCAL LAND
USE REGULATIONS AND I'LL SPEAK
TO THE AGRICULTURAL SIDE,
LANDOWNERS COMING TOGETHER AND
WORKING WITH GOVERNMENT AND
WORKING WITH PARTNERS TO PUT IN
PLACE SOME OF MOST RESTRICTIVE
PROTECTIVE AGRICULTURAL AND
LAND USE POLICIES NOT ONLY
PROTECT AGRICULTURALLAND BUT
THE NATURAL RESOURCES TO MANAGE
GROWTH. IN A WAY THAT KEEPS OUR
NATURAL AREAS NATURAL AND KEEPS
THE NATURAL ECONOMY GROWING.
SPF HAS BEEN DIRECTLY INVOLVED
FOR 34 YEARS IN A LOT OF THIS
WORK DIRECTLY AND INDIRECTLY.
AND THIS IS WHY WE'RE
DISAPPOINTED THAT DURING THE
FIR PROCESS, THAT SEATTLE CITY
LIGHT CONTINUES TO BE MURKY,
CONTINUES TO MARGINALIZE AND
EXCLUDE THE AGRICULTURAL
COMMUNITY FROM A LOT OF THESE
CONVERSATIONS PARTICULARLY WHEN
THERE'S DISCUSSIONS ABOUT USING
OUR AGRICULTURAL LANDS. SO WE
WOULD LIKE TO URGE THE SEATTLE
CITY COUNCIL TO CONTINUE TO
DIRECT SEATTLE CITY LIGHT TO
ENGAGE WITH THE HOE LOCAL
STAKEHOLDERS AND LOCAL
COMMUNITY AND TO INCLUDE FLOOD
CONTROL AND INCLUDE FISH
PASSAGE AS PART OF THE PROJECT.
THIS IS VERY IMPORTANT TO US IN
THE SKAGIT VALLEY TO THE
WATERSHED AND WE LOOK FORWARD
TO CONTINUING TO -- THANK YOU.
>> THANK YOU. WHO IS NEXT
SPEAKER?
>> THE NEXT SPEAKER IS MATT
STEINMAN.
>> HELLO, CITY COUNCIL. I WANT
TO THANK YOU ALL FOR ALLOWING
MYSELF AND ALL OF US FROM
SKAGIT COUNTY TO COME UP AND
TALK TO YOU WITH YOU TODAY.
AGAIN, MY NAME IS MATT
STEINMAN. I RUN FOOTHILLS FARM.
WE ARE IN SEDRO-WOOLLEY,
WASHINGTON, RIGHT IN THE HEART
OF SKAGIT COUNTY. THE FARM IS A
FOURTH GENERATION FAMILY FARM.
WE RUN ABOUT 100 ACRES OF
VEGETABLES AND BERRIES, HAVE
1500 CHICKENS THAT ARE ALL OUT
ON PASTURE. WE -- SO WE FARM
WITH REGENERATIVE CLIMATE
FRIENDLY PRACTICES. WE HAVE A
FISH STREAM HANSON VEHICLE THAT
RUNS THROUGH OUR PROPERTY AND
WE ENGAGE HEAVILY IN CREATING
NATURAL BUFFERS THAT ARE -- AND
HABITAT FOR THE SALMON. FOR THE
-- FOR THE ECOSYSTEM AROUND US.
SO WE SELL OUR PRODUCTS
THROUGHOUT THE STATE FROM
BELLINGHAM ALONG THE I-5
CORRIDOR DOWN TO OLYMPIA. WE'RE
HIGHLY ENGAGED HERE IN THE CITY
OF SEATTLE. WE GO TO FOUR
FARMERS' MARKETS SELLING TO
MANY THOUSANDS OF YOUR
CONSTITUENTS THROUGHOUT THIS
CITY. AND I HAVE ENGAGED IN
THESE CONVERSATIONS OVER THE
LAST YEAR OR TWO. SINCE I HAVE
BECOME AWARE OF THE SITUATIONS
THROUGHOUT REGARDING THE DAMS
AND REGARDING THE FISH PASSAGE
WITHIN SKAGIT COUNTY AND ON THE
SKAGIT RIVER. AND BASICALLY,
OUR TRIBAL FRIENDS AND
NEIGHBORS ARE REQUESTING THAT
THE CITY -- SEATTLE AND SEATTLE
CITY LIGHT PUT FISH PASSAGE
THROUGH THE DAMS TO ROSS LAKE.
THIS WOULD -- THIS WOULD OPEN
UP 37% OF THE SKAGIT RIVER MAIN
STAMPED FISH HABITAT -- THAT IS
NOT AVAILABLE. THIS IS VERY
IMPORTANT TO US THAT WE -- THAT
WE FOCUS ON FISH PASSAGE ON THE
SKAGIT RIVER. THANK YOU SO MUCH
COUNCILMEMBERS FOR ALLOWING US
TO BE HERE AND ALLOWING ME TO
PRESENT TO YOU. HAVE A GREAT
DAY.
>> THANK YOU. I JUST WANT TO
MAKE SURE THAT THE VOLUME IS
BEING HEARD BY PEOPLE OUTSIDE
OF THIS ROOM. IS THAT --
SEATTLE CHANNEL, IS THAT OKAY?
IT'S --
>> AUDIO SOUNDS FINE.
>> THANK YOU. ALL RIGHT. PLEASE
CALL THE NEXT SPEAKER.
>> THE NEXT SPEAKER IS JENNA
FREEBOLD. OR FRYBOLD.
>> JUST SO YOU KNOW THAT CHIME
IS AT TEN SECONDS REMAINING.
SO. IN CASE YOU WERE WONDERING
WHAT THAT INTERRUPTION WAS. GO
AHEAD.
>> OKAY. THANK YOU FOR LETTING
US PRESENT TODAY. I'M JENNA
FREEBOLD EXECUTIVE DIRECTOR OF
THE IRRIGATION AND DISTRICT
CONQUER CHUM AND REPRESENT THE
LOWER SKAGIT RIVER VALLEY.
60,000 ACRES OF SUSTAINABLE
FARMLAND AND 20 MILES OF MARINE
DIKES. WE'VE BEEN PARTICIPATING
IN THE CITY LIGHT RELIANCING
PROCESS SINCE IT STARTED FOUR
YEARS AGO. WE'VE HAD ONE
MESSAGE AND IT'S BEEN VERY
CLEAR. WE NEED TO INCREASE
FLOOD STORAGE AT ROSS AND TO
SHIFT FROM DECEMBER 1st TO
NOVEMBER 1st IN THAT TIMING TO
ALIGN BETTER WITH FLOOD SEASON.
THROUGHOUT THE PROCESS, WE'VE
MADE IT CLEAR THAT THE
INFRASTRUCTURE THAT WE'RE
PROTECTING INCLUDES MOST OF THE
MAJOR CITIES. DOWNSTREAM OF THE
SEATTLE LIGHT DAMS MAJOR
TRANSPORTATION HUBS, CORRIDORS,
HOSPITALS, SCHOOLS,WATER AND
SEWER TREATMENT PLANTS. THIS IS
REALLY IMPORTANT TO THE
COMMUNITY. WE'VE -- MADE
MULTIPLE FILINGS AND THE DRAFT
LICENSE DOESN'T REQUEST --
DOESN'T REFLECT ANY OF OUR
REQUESTS FOR FLOOD STORAGE AND
FLOOD RISK REDUCTION. EVEN
THOUGH WE'VE BEEN INVOLVED AND
CLEAR WITH OUR ASK, EVEN THOUGH
THE PURPOSE OF ROSS PRIMARILY
IS FOR FLOOD STORAGE WHEN IT
WAS AUTHORIZED IN THE 1940s,
WE'VE BEEN EXCLUDED BY AND
LARGE FROM THE PROCESS. AND I'M
HERE TODAY TO ASK THE CITY
COUNCIL TO ENSURE THAT OUR
VOICES BEING HEARD AND THAT WE
ARE INCLUDED IN THE PROCESS.
WE'VE HEARD MULTIPLE
CONFLICTING STATEMENTS THROUGH
CITY LIGHT RELY SENSING STAFF
AND THAT'S WHY IT'S IMPORTANT
TO US, WE HAVE MULTIPLE CITIES
THAT ARE SIGNING ON TO OUR
DRAFT LICENSE COMMENT LETTER
AND MANY OF THEM COULDN'T BE
HERE TODAY BUT THIS IS THE
NUMBER ONE PRIORITY FOR FLOOD
CONTROL. THANKS.
>> THANK YOU.
>> NEXT SPEAKER IS ANDREW
MILLER.
>> GOOD MORNING, MAY NAME IS
ANDREW MILLER AND I'M A SKAGIT
COUNTY PUD COMMISSIONER, THAT'S
MY PART-TIME JOB. I'M AN
ELECTED OFFICIAL IN SKAGIT
COUNTY. A BIT OF A WATER
COMMISSION IF YOU WILL AND MY
DAY JOB IS I GROW TULIPS IN THE
VALLEY. WE'RE SO KNOWN. I HAVE
A BIT OF HOMECOMING FOR ME. I
ALSO STUDIED LAW AT SEATTLE U..
IT'S FUN TO BE BACK. HEIM HERE
TODAY TO ASK THE COUNCIL TO
EXERCISE SOME CURIOSITY. I HAVE
A LOT OF CONSTITUENTS COMING TO
ME, ASKING WHY IS IT THAT WE'RE
HAVING -- IT FEELS LIKE THERE'S
A DISJECTED BETWEEN IN THE --
IN THE PARTNERSHIP OF
MAINTAINING THE DAMS,
SPECIFICALLY FOR FLOOD CONTROL.
AND THEN ACCESS TO WATER
THROUGHOUT THE YEAR. AND I WANT
TO ASSUME POSITIVE INTENT AND
USUALLY IT'S BEEN MY EXPERIENCE
ALSO AS A COMMISSIONER THERE'S
USUALLY A DEEPER AND MORE
COMPLEX ANSWER TO THIS. TO THAT
QUESTION OF WHAT'S GOING ON.
OUR CONCERN FROM A UTILITY
DISTRICT IS REALLY IN THE -- IN
FLOOD CONTROL. AND I'M ASKING
PEOPLE TO TRUST THE PROCESS.
AND THE SENSE THAT WE GET AT
LEAST IN SKAGIT COUNTY IS THAT
THE PROCESS, THERE'S BEEN
IMPORTANT ELEMENTS OF THAT
PROCESS THAT MAY HAVE BEEN
EITHER INADVERTENTLY OR
SPECIFICALLY AVERTED AND THAT'S
JUST NOT AN ASSERTION THAT I
BRING LIGHTLY. BUT IT'S REALLY
IMPORTANT FOR US IN SKAGIT
COUNTY BECAUSE WE REALLY DO
WANT TO BE GREAT PARTNERS.
WE'VE GOT PHENOMENAL NATURAL
BEAUTY AND AGRICULTURAL
HERITAGE. AND A FUTURE THAT
WE'D LIKE TO MAINTAIN. AND IT'S
GOING TO REQUIRE ACTIONS FROM
OUR URBAN NEIGHBORS SUCH AS THE
CITY OF SEATTLE SO WE'RE
EXCITED TO PARTICIPATE IN THAT
PROCESS. WE COME HERE -- WITH
THE SPIRIT OF COLLABORATION AND
WE'RE GRATEFUL OF THE
OPPORTUNITY TO SHARE OUR
THOUGHTS.
>> THANK YOU.
>> NEXT SPEAKER IS IKO
VOYKOVICH.
>> WELL DONE. SINCE I HATE TO
TALK TO THE EMPTY CHAIR SO I'M
GOING TO DIRECT MY COMMENT TO
YOU. MY NAME IS IKO. I OWN
SKAGIT RIVER RANCH. I'VE BEEN
FARMING FOR 25 YEARS NOW. AND
WE HAVE LIKE 250 HEADS OF
CATTLE. 800 CHICKENS. SOME
HOGS. THROUGH FARMERS' MARKETS,
PUGET SOUND FOOD HUB NETWORK,
PCC MARKETS, I SERVE OVER
20,000 CUSTOMERS HERE IN PUGET
SOUND AREA. MY FARM HAVE ABOUT
1400 FEET LONG -- ALONG THE
SKAGIT RIVER AND I'VE BEEN
GIVING UP A LOT IN THE PAST. TO
PROTECT SALMON RUNS. I HAVE
DONE MY SHARE. AND WHAT I WANT
TO SAY TODAY IS SIMPLE. WE ALL
KNOW FISH PASSAGE WORKS. AND
IT'S PROVEN THAT THEY WILL
PROTECT THE SALMON RUNS. SKAGIT
COUNTY HAS THE MOST FOR HILL
LAND IN THE COUNTY AND TO
PROVIDE LOCAL FOOD AND FOOD
SECURITY. LET'S CUT THE CRAP
AND LEAVE THE FARMLAND ALONE
AND BUILD A FISH PASSAGE,
PLEASE. THANK YOU FOR YOUR
TIME.
>> THANK YOU.
>> THE FINAL IN-PERSON SPEAKER
IS WILL HONEA.
>> THANK YOU. GOOD MORNING
COUNCILMEMBERS. MY NAME IS WILL
HONE. FOR THE PAST 15 YEARS I
HAVE HANDLED NATURAL RESOURCE
LEGAL MATTERS FOR SKAGIT COUNTY
GOVERNMENT. I GREW UP
COMMERCIAL FISHING IN THE
SKAGIT AROUND THE NORTHWEST AND
I OWN A SMALL FARM IN EAST
SKAGIT COUNTY. ALSO SPENT A LOT
OF YEARS HERE IN THIS BEAUTIFUL
CITY ATTENDING LAW SCHOOL AND
GROWING UP COMMERCIAL FISHING.
WE HAVE A LOT OF REGIONAL
CONNECTIONS TO EACH OTHER. YOU
KNOW, SO IT PAINS US TO HAVE TO
COME HERE AND TALK ABOUT THIS.
BUT WANT TO THANK YOU ON BEHALF
OF COUNTY GOVERNMENT FOR
HEARING OUR CONCERNS. IT'S --
PRIVILEGE TO LIVE IN AN OPEN
SOCIETY BASED ON TRANSPARENCY
EVEN IF IT SEEMS A LITTLE MESSY
AND UNCOMFORTABLE SOMETIMES. I
HAVE -- BROUGHT A LETTER
REFLECTING SKAGIT COUNTY'S
VIEWS ON SOME OF THESE ISSUES.
AND WE'VE DROPPED THAT OFF. I
THINK COUNTY COMMISSIONER
BROWNING IS ON REMOTELY AND
WOULD LIKE TO ADD SOME COMMENTS
SO I WON'T GO TOO DEEPLY INTO
ANYTHING ELSE. I JUST --
REFLECT -- ECHO WHAT THE SKAGIT
FRIENDS AND NEIGHBORS HAVE SAID
TODAY BUT WHAT I WILL SAY IS
THIS AND ASK TO YOU PLEASE
UNDERSTAND THAT WE'RE TRYING
REALLY, REALLY HARD TO KEEP
FARMING AND FISHING AS A PART
OF OUR COMMUNITY AND OUR
CULTURE. OVER THE LONG-TERM.
AND THAT REQUIRES COMING
TOGETHER WITH THE THREE SKAGIT
TREATY TRIBES THAT HOLD RIGHTS
UNDER THE TREATY OF POINT
ELLIOT. IS THE ASK HERE IS FOR
SEATTLE TO AFFORD OUR COMMUNITY
THE SPACE TO DO THAT. SO THANK
YOU FOR HEARING OUR CONCERNS.
>> THANK YOU. LOOKS LIKE THERE
ARE NO OTHER IN-PERSON
COMMENTERS. SO WE WILL PROCEED
WITH THE FOLKS SIGNED UP ON THE
ONLINE SHEET STARTING WITH
DAVID HAWKINS AND PLEASE
REMEMBER TO PRESS STAR 6 TO
UNMUTE.
>> CAN YOU HEAR ME?
>> YES.
>> OKAY. MY NAME IS DAVID
HAWKINS. I'M GENERAL COUNCIL
FOR THE UPPER SKAGIT INDIAN
TRIBE. THE COMMENTS ARE
SUBMITTED ON BEHALF OF BOTH
POLICY AND LEGAL FOR UPPER
SKAGIT. SEATTLE CITY LIGHT,
SKAGIT HYDROELECTRIC PROJECT,
OCCUPIES THE UPPER SKAGIT
INDIAN TRIBE'S ADJUDICATED
EXCLUSIVE TERRITORY AS
ESTABLISHED PURSUANT TO THE
INDIAN CLAIMS COMMISSION ORDER
OF MARCH 25th, 1960. LAND CEDED
TO THE UNITED STATES PURSUANT
TO THE 1855 POINT ELLIOT
TREATY. ACCORDINGLY, FROM BOTH
A CULTURAL PERSPECTIVE AS WELL
AS A TREATY PERSPECTIVE, UPPER
SKAGIT IS UNIQUELY IMPACTED BY
THIS PROJECT. UNFORTUNATELY,
UPPER SKAGIT TRIBAL MEMBERS
WERE NOT CONSIDERED TO CITIZENS
OF THE UNITED STATES WITH LEGAL
STANDING TO PROTECT THEIR
CULTURAL AND TREATY RIGHTS
UNTIL 1924. SOME THREE YEARS
AFTER INITIAL CONSTRUCTION
EFFORTS OF THE PROJECT HAD
BEGUN. UPPER SKAGIT
ACKNOWLEDGES THE EFFORTS TO
DATE OF THE SEATTLE CITY
COUNCIL AND SEATTLE CITY LIGHT
STAFF TO BRING TO RESOLUTION
ISSUES WE ARE CURRENTLY
ADDRESSING IN THE ONGOING
SKAGIT FIR RE-LICENSING PROCESS
INCLUDING FISH PASSAGE FOR ALL
THREE OF THE CITY LIGHT DAMS ON
THE SKAGIT. THE UPPER SKAGIT
HAVE LIVED HERE FOR 10,000
YEARS PRIOR TO THE DAMS. AND
UPPER SKAGIT PEOPLE ARE FOREVER
CONNECTED TO THE AREA REFERRED
TO TODAY AS THE PROJECT AREA.
ALONG WITH UPPER SKAGIT
NAMESAKE RIVER, UPPER SKAGIT
PLACE OF ORIGIN, AND CREATION,
AND NUMEROUS OTHER SACRED
SITES. UPPER SKAGIT ANCESTORS
LIVE DOWN TODAY AND WATCH UPPER
SKAGIT'S EFFORTS TO GIVE THEM
THE VOICE AND CHOICE THEY WERE
ONCE DENIED. THEY DRIVE UPPER
SKAGIT'S CONTINUED EFFORTS TO
DARE TO IMAGINE WHAT ONCE WAS
AND COULD BE -- IT'S TIME TO
ANSWER THEIR CALL TO RESTORE
AND RECONNECT THE SKAGIT
ECOSYSTEM FUNCTION, BY
PROVIDING FISH PASSAGE.
>> I JUST WANTED THE LISTENERS
TO KNOW THAT WE HAVE ONE, TWO,
THREE, FOUR, FIVE, MORE
SPEAKERS. THE NEXT UP IS SCOTT
SKYLAR.
>> GOOD MORNING, CAN YOU HEAR
ME?
>> YES.
>> YES, GOOD MORNING COUNCIL.
MY NAME IS SCOTT SKYLAR. POLICY
REP FOR THE UPPER SKAGIT INDIAN
TRIBE. AGAIN, I WANT TO THANK
THE COUNCIL, DEBRA SMITH, CITY
LIGHT STAFF FOR ALL THE EFFORTS
TO DATE. AND I'M INVITING ON
BEHALF OF THE TRIBE THE CITY
COUNCIL, TO BECOME A PARTNER
WITH THE TRIBE ON FISH PASSAGE.
AGAIN, TO HONOR OUR ANCESTORS
BY MOVING FORWARD WITH
PROVIDING FISH PASSAGE FOR ALL
THREE DAMS AND OUR ASK IS
PRETTY SIMPLE ANDSTRAIGHTFORWAR
D AT THIS POINT. WE'RE ABOUT TO
FILE SOME PRESCRIPTIVE ASKS ON
BEHALF OF THE TRIABLE AND WE
HOPE THE CITY LIGHT CONSIDERS
THEM AND MOVES FORWARD WITH
THEIR SPIRIT AND INTENT TO
PROVIDE PASSAGE AND MOVE
FORWARD AGAIN AS PARTNER WITH
THE TRIBE. AGAIN, THANK YOU FOR
YOUR TIME.
>> THANK YOU. THANK YOU VERY
MUCH. THE NEXT SPEAKER IS DAVE
HALLLOCK FOLLOWED BY PETER
BROWNING.
>> GOOD MORNING, I'M DAVE
HALLOCK A RESIDENT OF SKAGIT
COUNTY AND A FORMER RESIDENT OF
SEATTLE. WELL STRONGLY SUPPORT
THE SKAGIT COUNTY BOARD OF
COMMISSIONERS IN ASKING THE
FEDERAL ENERGY REGULATORY
COMMISSION TO REQUIRE YOU TO
MITIGATE FOR YOUR DAM
OPERATIONS AT YOUR DAM SITES.
YOU SHOULD BE INVESTING IN FISH
PASSAGE TO ENABLE SALMON TO
ACCESS THE 37% OF THE SKAGIT
THAT LIES ABOVE YOUR DAMS. YOU
HAVE AN ENVIRONMENTAL ETHICAL
OBLIGATION TO DO THIS. AND I
IMAGINE THE CITIZENS OF SEATTLE
GENERALLY SHARE THIS FEELING.
YOUR OBLIGATION EXTENDS BEYOND
THE PROFITS YOU GENERATE AND
THE UTILITY RATES YOU PROVIDE
BIG CORPORATE ENERGIES LIKE
AMAZON WHO SHOULD SHARE OUR
DESIRE FOR YOU TO DO THE RIGHT
THING FOR SALMON IN THE SKAGIT
RIVER. WE ARE ONE LARGE
COMMUNITY WHEN IT COMES TO
PROTECTING OUR ENVIRONMENT. AND
VITAL FEATURES OF IT LIKE
SALMON. AND WE COULD NOT LET
ONE SIDED CONSIDERATIONS LIKE
ELECTRIC UTILITY PROFIT MARGINS
GET IN THE WAY OF CARING FOR
SALMON. THIS APPEARS TO BE WHAT
YOU HAVE BEEN TRYING TO DO. WHY
DO YOU HAVE TO BE FORCED BY THE
FEDERAL GOVERNMENT TO DO THE
RIGHT THING? CITY OF SEATTLE,
DO THE RIGHT THING. BUILD FISH
PASSAGE. THANK YOU.
>> THANK YOU. THANK YOU VERY
MUCH. I APPRECIATE THAT. PETER
BROWNING.
>> GOOD MORNING COUNCILMEMBER.
MY NAME IS PETER BROWNING AND
I'M A SKAGIT COUNTY
COMMISSIONER. I SPENT A
SIGNIFICANT PART OF MY 69 YEARS
IN SKAGIT COUNTY. AS YOU KNOW,
SEATTLE CITY LIGHT IS SEEKING A
NEW FEDERAL LICENSE FOR ITS
SKAGIT DAMS AND WE'VE SPENT LOT
OF TIME ON THE PROCESS THE LAST
THREE YEARS. IT'S OUR FEELING
THAT SEATTLE CITY LIGHT HAS
SHUTTERED OUT OF ANY MEANINGFUL
ROLE IN THE RE-LICENSING
PROCESS. THIS IS A PROBLEM. AND
IT'S PART OF THE REASON THE
RE-LICENSING HAS BEEN SUCH A
CHALLENGE. WE'RE ALL PUBLIC
ENTITIES AND WE FEEL LIKE IT
WOULD BE BEST TO JUST DIRECTLY
AND OPENLY EXPLAIN OUR
COMMUNITY'S OBJECTIVES. FIRST,
FLOOD STORAGE BEHIND ROSS IS
IMPORTANT. ALL WE ASK IS THAT
SEATTLE CITY LIGHT FOLLOW THE
U.S. ARMY CORPS OF ENGINEERS'
RECOMMENDATIONS FOR SAFE FLOOD
STORAGE AT THE SKAGIT PROJECT
AS JENNA POINTED OUT. SECOND,
SEATTLE CITY LIGHT IS LOOKING
TO BUY UP SKAGIT FARMLAND AS
MITIGATION FOR THE PROJECT'S
IMPACTS ON SALMON. RATHER THAN
INSTALLING FISH PASSAGE. SKAGIT
CITY LIGHT ALREADY BOUGHT UP
MORE THAN 10,000 ACRES OF
FARMLAND AND FORESTLAND OVER
THE PAST COUPLE OF DECADES AS
MITIGATION, REMOVING THE LANDS
FROM OUR TAX ROLES WHICH IS
TOUGH FOR ME, AND TAKES MONEY
AWAY FROM OUR SCHOOLS, WHICH IS
IMPORTANT FOR ME. FIRE
DEPARTMENTS, AND MUCH ELSE.
THIS ALSO UNDERMINES OUR
LONG-STANDING EFFORT TO KEEP
FARMING VIABLE IN SKAGIT. WORST
OF ALL THERE'S NO EVIDENCE THAT
BUYING UP LAND IN THE SKAGIT
COUNTY HELPED INCREASE THE
NUMBER OF SALMON COMING BACK TO
THE SKAGIT AT ALL. LIKE SKAGIT
TRIBES, WE ASK THAT SEATTLE
CITY LIGHT INSTALL FISH PASSAGE
INSTEAD. IT'S REALLY WORKING ON
THE BAKER RIVER DAM. IT HELPED
PROVIDE OUR COMMUNITY'S
ELECTRICITY AND ALL WE SEEK
HERE IS EQUITY. WE SUPPORT
SEATTLE CITY LIGHT'S MISSION TO
PROVIDE REASONABLY PRICED
ELECTRICITY FOR CITY OF
SEATTLE. BUT WE ARE HAVING A
PROBLEM MEETING OUR PRIMARY
OBJECTIVE AND WE REALLY NEED
YOUR HELP. THANK YOU FOR
LISTENING TO OUR CONCERNS.
>> THANK YOU. THANK YOU VERY
MUCH. OUR NEXT SPEAKER IS LISA
FINLEY FOLLOWED BY MELISSA
NORRIS. AND ID MUST NOTE THAT
COUNCILMEMBER SAWANT HAS BEEN
PRESENT FOR THE PAST -- 15, 20
MINUTES. AND I NEGLECTED TO
MENTION THAT EARLIER. SORRY .
>> HELLO, HI NAME IS -- CAN YOU
HEAR ME OKAY?
>> YES.
>> MY NAME IS LISA FINLEY AND
I'M A FIFTH GENERATION PROPERTY
OWNER OFF OF MARTIN ROAD IN
ROCK PORT. MY HUSBAND AND I
BUILT OUR ENTIRE LIFE AROUND
THIS 20-ACRE PROPERTY THAT WE
RAISED OUR CHILDREN ON AND BEEF
CATTLE. WE ARE VERY CONCERNED
ABOUT THE FUTURE SUBSTANTIAL OF
OUR PROPERTY AND OUR COMMUNITY.
I WOULD LIKE TO SEE A PROGRAM
THAT WAS IMPLEMENTED BY PUGET
SOUND ENERGY ON THE BAKER RIVER
DAM TO BE CONSIDERED FOR
SEATTLE CITY LIGHT AND SALMON
RECOVERY WITH PRIVATE LAND,
PARTNERING WITH ENTITIES LIKE
SKAGIT RIVER SYSTEMS
COOPERATIVE TO DO
THEIRHOMEWORK. I BELIEVE THAT
SUCH ENTITIES LIKE SKAGIT RIVER
SYSTEMS COOPERATIVE ARE A HUGE
LIABILITY FOR STATE AND CITY
AGENCIES. ONCE THEY HAVE DONE
THE FLOW OF THE SKAGIT RIVER
THAT'S BEEN FEDERALLY
CLASSIFIED AS A WILD AND SCENIC
RIVER. LIKE TO SEE PEOPLE WHO
ARE GENUINELY INTERESTED IN
SALMON RECOVERY ALWAYS. AND NOT
JUST WHEN GRANT MONEY AND
RE-LICENSING ARE INVOLVED. I
THINK WE SHOULD ALL BE
CONCERNED ABOUT THE LONGEVITY
OF SALMON RECOVERY WHILE NOT
FORGETTING ABOUT THE SAFETY OF
COMMUNITY AND NEIGHBORHOODS
ALONG THE RIVER. I THINK THE
RIGHT THING FOR THE CITY OF
SEATTLE IS PROVIDE SAFE AND
EFFECTIVE FISH PASSAGE AND BE
GOOD STEWARDS OF THE LAND THAT
WE LIVE ON. THANK YOU FOR THIS
OPPORTUNITY.
>> THANK YOU VERY MUCH. AND OUR
LAST SPEAKER, MELISSA NORRIS,
PLEASE.
>> HEY. MY NAME IS MELISSA
NORRIS AND I ALSO LIVE ON
MARTIN ROAD IN ROCK PORT. WE
RAISE GRASS FED BEEF. WE HAVE A
TEACHING FARM WHERE WE DO
REGENERATIVE AGRICULTURE AND
OUR MAIN CONCERN. SECONDLY IS
REALLY THE FLOOD CONTROL. THAT
SEATTLE CITY LIGHT WOULD TAKE
THAT INTO CONSIDERATION AND
TAKE IT SERIOUSLY. AS WE SAW
FROM LAST YEAR, LIVES WERE IN
DANGER IN THE FLOOD EVENT. WE
WERE CUT OFF. AND HAD THE
HIGHEST FLOODING HERE THAT
WE'VE EVER HAD IN HISTORY. NOT
ONLY DOES THAT DAMAGE OUR
FARMLAND, BUT IT ALSO PUTS
LIVES AT DANGER AND THEY HAVE A
MAJOR OPPORTUNITY HERE TO HELP
PUT MEASURES IN TO FIX THAT.
>> OKAY, THANK YOU VERY MUCH.
SEEING NO OTHER IN-PERSON OR
ONLINE SPEAKERS, THE PUBLIC
COMMENT PERIOD WILL BE CLOSED.
I APPRECIATE YOU COMING ALL THE
WAY DOWN HERE AND SPEAKING
ABOUT THIS. AS IT WAS NOT AN
ITEM ON THE AGENDA, THERE'S
LITTLE CONTEXT, BUT I REALLY
APPRECIATED AND AT SOME POINT
WE WILL BE DISCUSSING
RE-LICENSING GOING FORWARD. ALL
RIGHT. SO. SOMEBODY JUST WALKED
IN -- NO OTHER SPEAKERS? OKAY.
>>> ALL RIGHT, PUBLIC COMMENT
IS OFFICIALLY CLOSED NOW AND
WILL THE CLERK PLEASE CALL --
READ ITEM ONE INTO THE RECORD.
>> AGENDA ITEM NUMBER ONE.
WESTERN ENERGY MARKET'S
BRIEFING. BRIEFING AND
DISCUSSION.
>> ALL RIGHT. THIS IS TECHNICAL
AND DENSE YET FASCINATING
MATERIAL. SO I WILL -- I WILL
NOT VENTURE AN INTRODUCTION OR
A SYNOPSIS OF THIS TOPIC. AND
ASK THAT THE PRESENTERS COME TO
THE TABLE AND THEN JUST BEGIN
YOUR PRESENTATION.
OH, YOU ARE PROBABLY WAITING
FOR SOME -- HELLO, GOOD
MORNING. LET'S MAKE SURE THE
MICS ARE ON AT THE TABLE. OKAY.
>> GOOD MORNING COUNCILMEMBER.
THANK YOU FOR HAVING US HERE
TODAY. WE'RE EXCITED TO BEGIN A
CONVERSATION WITH YOU AND THIS
IS A CONVERSATION THAT WE
EXPECT TO HAVE MULTIPLE PARTS
OVER THE COMING YEAR. SO WE'RE
PROVIDING BACKGROUND
INFORMATION AND WE'RE PROVIDING
SOME WHAT I WOULD CALL, RATHER
DEEP BACKGROUND INFORMATION, ON
THE MARKET EXPANSION ACTIVITIES
IN THE WEST. AND THEN AT THE
SAME TIME, WE'RE SETTING THE
STAGE FOR EVENTUAL HOPEFUL
PARTICIPATION IN WHAT'S CALLED
THE WESTERN RESOURCE ADEQUACY
PROGRAM OR THE W. R. A. P. AND
THAT'S AN ITEM WE EXPECT TO
BRING YOU FOR ACTION NEXT
MONTH. IN FEBRUARY. SO AGAIN,
DEEP BACKGROUND ON MARKETS.
MORE IMMEDIATE BACKGROUND ON
THE W. R. A. P. AND WE ARE VERY
EXCITED ABOUT THIS
CONVERSATION. AND IT IS
COMPLEX. SO I JUST WANT TO LET
THE COUNCILMEMBERS FEEL FREE TO
INTERRUPT AS WE GO IF -- YOU
ARE GOING TOO FAST OR --
CLARIFY SOMETHING, BECAUSE IT
IS IMPORTANT THAT WE BEGIN --
ON THE SAME PAGE IN TERMS OF
OUR GENERAL KNOWLEDGE OF THE
SUBJECT. AND THAT'S OUR GOAL
TODAY. SO THANK YOU VERY MUCH.
>> THANK YOU.
>> I'LL INTRODUCE MY TEAM.
>> GO AHEAD.
>> YOU CAN INTRODUCE YOURSELF
AND GO DOWN THE ROW. AND --
ACTUALLY, I'M GOING TO START.
BACKACHE. I WANT TO INTRODUCE
OUR NEW POWER MANAGEMENT
DIRECTOR. SIOBHAN DOUGHERTY AND
SHE COMES TO US FROM A
RESOURCED A -- RESOURCE
ACQUISITION PLACE. WHICH IS
EXCITING FOR CITY LIGHT BECAUSE
AS WE'VE DISCUSSED IT'S BEEN A
VERY LONG TIME SINCE WE'VE BEEN
IN A POSITION LOOKING FORWARD
WITH OUR LOAD FORECAST AND
INTEGRATED RESOURCE PLAN WHICH
WE BROUGHT YOU EARLIER. IT'S
BEEN A LONG TIME SINCE WE'VE
BEEN IN THE POSITION WHERE
WE'RE ACTUALLY ACQUIRING
RESOURCE. AND SIOBHAN HAS THAT
AS A PARTICULAR SKILLSET. AND
SO WE'RE SUPER EXCITED TO HAVE
HER. AND THEN THE OTHERS OF YOU
JUST GO AHEAD AND INTRODUCE
YOURSELF.
>> GREAT. I'M JIM BAGGS. I'M
THE -- REGULATION AND MARKET
DEVELOPMENT OFFICER. AND I'LL
BE KICKING OFF THIS
PRESENTATION HERE IN A FEW
MINUTES.
>> THANK YOU. AND I'M JOSH
WALTER, I'M THE POWER CONTRACTS
AND REGIONAL AFFAIRS MANAGER.
THANK YOU FOR HAVING US.
>> THANK YOU.
>> ALL RIGHT. WITH THAT, I
THINK WE WILL JUST DIVE IN. I
DON'T KNOW -- WE NEED TO MOVE
TO THE NEXT SLIDE, PLEASE,
THANK YOU. I THOUGHT I WOULD --
>> REMIND YOU, I MUST BE
GETTING OLD. SO JUST PLEASE
MAKE SURE THAT YOU SPEAK
DIRECTLY INTO THE MIC.
>> THANK YOU. YES. ALL RIGHT.
WE'LL START. THAT BETTER? OKAY.
GOOD. THE -- THIS IS JUST A
SLIDE THAT SHOWS A LITTLE BIT
OF THE -- WHAT WE HOPE TO HAVE
AS THE FLOW OF OUR PRESENTATION
THIS MORNING. WE'RE GOING TO --
I'M HEARING SOMETHING. IS THAT
ME?
>> LET'S MAKE SURE EVERYBODY
WHO'S IN THE TILES IS ON MUTE,
PLEASE.
>> OKAY. THANK YOU. THERE WE
GO, NOW WE'RE BACK. OKAY. THANK
YOU. WE'RE GOING TO GO -- WITH
A LITTLE BIT OF BACKGROUND AND
AS COUNCILMEMBER NELSON
MENTIONED, TALK A LITTLE BIT
ABOUT THE NATURE OF THE WESTERN
INTERCONNECTION BECAUSE I THINK
THAT YOU WILL FIND THROUGHOUT
THIS CONVERSATION, THAT SOME
UNDERSTANDING OF HOW THAT WORKS
IS FUNDAMENTAL TO ANY OF THE
REST OF THE CONVERSATION ABOUT
WESTERN MARKETS AND RESOURCE
ADEQUACY. WE'RE GOING TO TALK A
LITTLE BIT ABOUT THE
INTERDEPENDENCE AMONG THE
VARIOUS PARTICIPANTS IN THIS
WESTERN INTERCONNECTION. A
LITTLE BIT ABOUT HISTORICAL
MARKET EFFORTS THAT HAVE BEEN
GOING ON SINCE THE MID 1990s.
JOSH WILL TALK SOME ABOUT OUR
SIGNIFICANT SUCCESS IN
PARTICIPATING IN THE WESTERN
ENERGY AND BALANCE MARKET.
WE'LL TALK A LITTLE BIT ABOUT
THE CURRENT MARKET FOCUS AND AS
WAS MENTIONED EARLIER, SIOBHAN
WILL GO OVER A LITTLE BIT OF
BACKGROUND ON THE W. R. A. P.
PROGRAM OR THE RESOURCE
ADEQUACY ELEMENT. NOT A MARKET
PROGRAM BUT ON THE OTHER HAND
IT IS A -- A SIGNIFICANT
COLLABORATIVE EFFORT THAT
SHOULD BE BENEFICIAL TO
SEATTLE. SO -- NEXT. THE -- I
WANTED TO START HERE WITH JUST
A PICTURE OF THE WESTERN
INTERCONNECTION. WHAT YOU SEE
IS -- IS WHAT'S REFERRED TO AS
THE WESTERN INTERCONNECTION.
THE LINES THAT ARE SHOWN ON
THAT ARE THE HIGH VOLTAGE
TRANSMISSION LINES IN THE WEST.
AND I WILL TALK A LITTLE BIT
MORE ABOUT THAT IN A MINUTE.
BUT THE NOTION THAT NEEDS TO BE
UNDERSTOOD HERE IS THAT THIS
INTERCONNECTION IS ONE SINGLE
LARGE COMPLEX MACHINE. WE TEND
TO THINK ABOUT OUR ROLE AS
SEATTLE CITY LIGHT AS THE
UTILITY THAT'S IN, YOU KNOW,
THE PUGET SOUND NEIGHBORHOOD.
AND WE RUN THAT SYSTEM. THAT'S
ALL TRUE. BUT WE CANNOT ESCAPE
THE FACT THAT WE ARE ONE OF THE
MANY ELEMENTS OF THIS LARGER
WESTERN INTERCONNECTED
TRANSMISSION SYSTEM. CAN WE GO
TO THE NEXT, PLEASE? THIS IS
THE SAME PICTURE ON THE RIGHT
HAND SIDE, THOSE ARE NOT
TRANSMISSION LINES. THOSE ARE
ACTUALLY PATHS WHERE ENERGY
FLOWS IN A VARIETY OF
DIRECTIONS OVER THE LITERALLY
HUNDREDS OF TRANSMISSION LINES
THROUGHOUT THE WESTERN
INTERCONNECTION. BUT THIS
SINGLE INTERCONNECTIONCOVERS
MORE THAN 1.8 MILLION SQUARE
MILES AND INCLUDES ALMOST ALL
OF THE WEST, 14 WESTERN STATES
AND BRITISH COLUMBIA, ALBERTA,
NORTHERN BAJA. SERVES A
POPULATION OF 80 MILLION PEOPLE
OVER 80 MILLION PEOPLE, AND IT
INTEGRATES A LARGE SHARE OF THE
GENERATION IN THE WEST MORE SO
THAN IN THE EAST FROM
HYDROELECTRIC FACILITIES. LIKE
THE SKAGIT PLANTS THAT WE WERE
JUST HEARING ABOUT EARLIER AS
WELL AS VARIABLE -- VARIABLE
RESOURCES, RENEWABLE VARIABLE
RESOURCES LIKE WIND AND SOLAR
AND ALTOGETHER IN THE WEST
THERE ARE ABOUT 136,000 MILES
OF HIGH VOLTAGE TRANSMISSION
LINES HOLDING THIS WHOLE --
THIS WHOLE THING TOGETHER. THE
-- YOU KNOW, THE THING THAT IS
IMPORTANT TO UNDERSTAND ABOUT
THIS IS THAT THE OPERATION OF
THIS LARGE SINGLE MACHINE IS
REALLY CONTROLLED BY PHYSICS.
IT HAS TO -- THE LOADS IN THIS
SYSTEM HAVE TO MATCH THE
GENERATION IN THE SYSTEM. AND
IT'S INFLUENCED BY INDIVIDUAL
OPERATORS, THERE ARE
RELIABILITY CONSIDERATIONS AND
THERE ARE NICK CONSIDERATIONS,
BUT THE PHYSICS REALLY GOVERN
WHAT ACTUALLY OCCURS WHETHER WE
HAVE OUTAGES AND RELIABILITY
AND THOSE SORTS OF THINGS ARE
-- ARE REALLY THE DRIVING FORCE
BEHIND THE WESTERN
INTERCONNECTION. LET'S MOVE TO
THE NEXT, PLEASE. AS I SAID,
THE -- THE PHYSICS OF THE
SYSTEM REQUIRES THAT THIS
INTERCONNECTION BE BALANCED AT
ALL TIMES. AND BY BALANCED, I
MEAN THAT THE LOADS GOING --
THAT ARE TAKING ENERGY OFF OF
THE SYSTEM EXACTLY EQUAL THE
ENERGY THAT'S BEING INJECTED
INTO THE SYSTEM. AND SO THERE'S
TWO IMPORTANT CONSIDERATIONS
HERE TO KEEP IN MIND. ONE IS
THE PICTURE THAT'S UP ON THE
SCREEN HERE. AND THAT IS THAT
THERE ARE 38 INDIVIDUAL
BALANCING AREAS IN THE WESTERN
INTERCONNECTION. AND WE ALL --
WE ARE ONE OF THEM. YOU CAN SEE
SCL IS UP THERE IN THE UPPER
LEFT HAND CORNER. WE'RE ONE OF
THE 38. BUT EACH ONE OF THOSE
INDIVIDUAL BALANCING AREAS
UNDERTAKES BALANCING THEIR
LOADS AND THEIR RESOURCES
INDEPENDENTLY. BUT WE ALL ALSO
ARE INTERCONNECTED WITH ONE
ANOTHER AND SO WE HAVE
TRANSACTIONS AND RELATIONSHIPS
AMONG ALL OF THE OTHER
BALANCING AUTHORITY AREAS SO
THAT WE TRY AND AFTER DOING OUR
INDIVIDUAL WORK, BALANCE THE --
THE LOADS AND RESOURCES FOR THE
ENTIRE BALANCING AUTHORITY
AREA. SO THAT'S -- THAT'S THE
EXERCISE THAT WE ARE -- WE AND
ALL UTILITIES ARE ENGAGED IN IN
THE WEST. EVERY DAY. THE OTHER
THING THAT'S IMPORTANT ABOUT
THIS IS THE TIME ELEMENT. WE
THINK ABOUT LOADS AND RESOURCES
FROM A PLANNING PERSPECTIVE. WE
DO THINGS LIKE AN INTEGRATED
RESOURCE PLAN. WE WORRY ABOUT
ARE WE GOING TO HAVE ENOUGH
RESOURCES IN 20 YEARS OUT? AND
WHAT MIGHT OUR LOADS BE AND ARE
WE GOING TO HAVE INCREASED
ELECTRIFICATION? THOSE KINDS OF
QUESTIONS WE PLAN FOR. WE ALL
IN THE ELECTRIC UTILITY WORLD
PLAN FOR THESE THINGS BUT WE DO
THEM ON A PROSPECTIVE BASIS AND
WE -- WE DO OUR BEST, BUT YOU
KNOW, IT'D HARD TO PROJECT
THINGS ACCURATELY THAT ARE SAY
20 YEARS FROM NOW. SO WE DO
THAT LOOK AT OUR LOADS AND
RESOURCES. AND THEN AS TIME --
AS THE TIME PERIOD SHRINKS AND
WE GET CLOSER AND CLOSER TO THE
REALTIME THAT WE'RE CONCERNED
ABOUT, WE DO IT AGAIN. WE DO IT
BEATER AS WE GET CLOSER BECAUSE
WE HAVE MORE KNOWLEDGE ABOUT
THE LOADS AND WE KNOW MORE
ABOUT THE RESOURCES AND SO
FORTH. FINALLY GETTING DOWN TO
A TIME FRAME MAYBE LESS THAN A
YEAR OR SO AND WE BEGIN
ENGAGING IN ECONOMIC ACTIVITIES
WHERE WE MAY BE ENTER INTO
CONTRACTS. WE DO THINGS TO
ACTUALLY TRY AND TRUE UP OUR
LOADS AND RESOURCES AS WE GET
CLOSER TO REALTIME. FINALLY,
THE LAST TWO TIME ELEMENTS I'LL
TALK ABOUT HERE ARE THE DAY
AHEAD. SO ON A DAY BEFORE THE
ACTUAL CONSUMPTION OF ENERGY,
WE TRY AND PROJECT EXACTLY WHAT
WILL HAPPEN FOR EVERY HOUR OF
THE NEXT DAY. AND MATCH-UP OUR
LOADS AND RESOURCES. THEN
ULTIMATELY WHEN WE GET INTO
REALTIME AND ON THE DAY OF, WE
ACTUALLY HAVE PEOPLE IN PLACE
THAT ARE ON DESKS 24 HOURS A
DAY, 7 DAYS A WEEK THAT ARE
ACTUALLY PHYSICALLY MATCHING
THE LOADS AND RESOURCES IN A
REALTIME BASIS. IF ANY OF THAT
IS OFFICINALE OK ON A REALTIME
BASIS. THAT'S WHEN WE HAVE
PROBLEMS LIKE OUTAGES AND THE
LIKE. SO --
>> CAN I INTERRUPT FOR A
SECOND? ARE YOU TELLING ME THAT
YOU WILL -- THAT THE UTILITIES
WILL ACTUALLY BUY OR SELL
CAPACITY THE DAY BEFORE? OR --
>> WE DO IT IN ADVANCE. AND THE
DAY BEFORE. AND WITHIN THE
HOUR.
>> RIGHT.
>> IRONICALLY, WHICH DOESN'T
MAKE SENSE INTUITIVELY, WE MAY
HAVE SOLD POWER LOOKING AT A
LOAD FORECAST. WE MAY HAVE
ASSUMED THAT WE HAD EXCESS
POWER. SOLD IT INTO THE MARKET
ON A PRESCHEDULED BASIS TO
SOMEONE. AND THEN THE
TEMPERATURE DROPPED. IT'S
COLDER THAN WE THOUGHT. AND
THIS IS IN FACT WHAT HAS JUST
HAPPENED. AND NOW WE ARE ALSO
NOW OUT IN THE MARKET ON EITHER
THE DAY AHEAD MARKET OR THE
REALTIME MARKET AND PROBABLY
BOTH. ATTEMPTING TO ACQUIRE
SUFFICIENT RESOURCES TO MEET
THAT LOAD. SO WHEN WE TALK
ABOUT REVENUES AND THIS IS EVEN
TRUE FOR THE RATES
STABILIZATION ACCOUNT, THE RSA,
WE TALK ABOUT NET WHOLESALE
REVENUES. SO THOSE ARE NET
WHOLESALE REVENUES WHICH ARE
SUM TOTAL OF ALL THE BUYS AND
SELLS THAT WE DID FOR A GIVEN
MONTH. WHETHER WE DID THEM TWO
MONTHS IN ADVANCE, OR 15
MINUTES IN ADVANCE.
>> THANK YOU.
>> YEAH, THAT'S RIGHT. AND I
MEAN, THAT'S A LOT OF JUST SORT
OF -- UTILITY GIBBERISH THAT
MAKES A LOT OF SENSE TO US
UTILITY GEEKS. BUT IT'S REALLY
CRITICAL BECAUSE AS WE MOVE
FORWARD, WE'RE GOING TO SPEND
TIME TALKING ABOUT DAY AHEAD
MARKETS AND REALTIME MARKETS.
AND IT'S REALLY CRITICAL TO THE
UNDERSTANDING OF THOSE MARKETS
BECAUSE WHAT WE'RE DOING HERE
IS WE'RE GOING TO BE TALKING
ABOUT FUNDAMENTALLY CHANGING
THE MANNER IN WHICH DECISIONS
ARE MADE. AND HOW THE
OPERATIONS ARE CARRIED OUT IN
THE INTERCONNECTION. THAT'S
WHAT THE MARKET EFFORTS WILL BE
IF WE CHANGE HOW IT'S OPERATED.
SO. AND THAT INCLUDES BOTH THE
WHO AND THE WHEN. AND YOU WILL
HEAR MORE ABOUT THAT IN A
MINUTE. BUT ANYWAY. I'LL --
MOVE REAL QUICKLY INTO -- ONE
SLIDE I JUST WANTED TO PUT IN
FRONT OF EVERYONE BECAUSE IT'S
SIGNIFICANT THING THAT WE DEAL
WITH ALL THE TIME. PARTLY
BECAUSE OF THE INTERCONNECTED
NATURE OF ALL THE WEST AND THE
DEPENDENCE WE HAVE ON ONE
ANOTHER. THERE'S A SUBSTANTIAL
AMOUNT OF REGULATORY OVERSIGHT
BEYOND WHAT WE EXPERIENCE HERE
IN SEATTLE AND THE COUNCIL
REGULATION AND THE CITY'S
DESIRES AND SO FORTH. WE HAVE
THE FEDERAL ENERGY REGULATORY
COMMISSION. WE HAVE THE NORTH
AMERICAN ELECTRIC RELIABILITY
CORPORATION. AND WESTERN
ELECTRICITY COORDINATING
COUNCIL ALL OF WHICH HAVE
CRITICAL INFRASTRUCTURE,
PROTECTION REQUIREMENTS THAT
GOVERN OPERATIONS AND PLANNING,
WE HAVE OPEN ACCESS RULES FOR
TRANSMISSION ON OUR SYSTEM AND
OTHERS. WE HAVE MARKET BEHAVIOR
AND ANTIMARKET MANIPULATION
RULES. TRANSMISSION PLANNING
REQUIREMENTS. ET CETERA. SO
THERE'S -- THIS WHOLE LANDSCAPE
THAT WE HAVE TO OPERATE WITHIN
THAT GOES ALONG WITH THE
OPERATION I JUST TALKED ABOUT.
LET'S MOVE TO ONE MORE. MOST
OF WHAT WE HAVE BEEN DOING AND
ARE STILL DOING IS THE --
BILATERAL TRADING. YOU KNOW,
THE BUYING IS SELLING LIKE
DEBRA JUST TALKED ABOUT. A DAY
AHEAD OF TIME AND SO FORTH IS
BETWEEN DIFFERENT -- TWO
DIFFERENT ENTITIES WITHIN THIS
WESTERN INTERCONNECTION. THAT'S
-- THAT WAS ESSENTIALLY THE
ONLY THING WE DID PRIOR TO
2015. AND IN 2014, THE WESTERN
ENERGY AND BALANCE MARKET WAS
CREATED. AND WE'LL GO OVER THAT
HERE IN A FEW MINUTES BUT WE
JOINED IT IN 2020 AND THAT'S
CHANGED A LITTLE BIT HOW WE
DEAL WITH OUR REALTIME
OPERATIONS. WE ARE NOW
CURRENTLY INVOLVED IN AGAIN YOU
ARE GOING TO HEAR FROM THE BULK
OF THE CONVERSATION HERE IS
ABOUT DAY AHEAD MARKET
POTENTIAL AND POSSIBLE
PARTICIPATION AND THEN
ULTIMATELY FULL MARKET
INTEGRATION OCCURS WITH A
REGIONAL TRANSMISSION
ORGANIZATION OR A --
INDEPENDENT SYSTEM OPERATOR.
COULD BE DOWN THE ROAD SOME
DAY. PAST ATTEMPTS, AS I SAID
STARTED BACK IN THE MID '90s
WITH AN EFFORT CALLED INDIGO. A
LOT OF THE WESTERN UTILITIES
PARTICIPATED IN. THEN THE
CALIFORNIA INDEPENDENT SYSTEM
OPERATOR WAS FORMED. THE
UTILITIES IN CALIFORNIA
DEPURATE BEEN A MARKET. JUST
WITHIN THEIR OWN STATE
BOUNDARIES. THERE WAS AN EFFORT
IN THE EARLY 2000s TO CREATE AN
RTO OR REGIONAL TRANSMISSION
ORGANIZATION CALLED RTO WEST OR
GRID WEST. DIDN'T COME TO
FRUITION IN THE SOUTHWEST THERE
WAS AN EFFORT CALLED WEST
CONNECT. SAME -- SAME STORY
THERE. IN ABOUT 2014 '15, WE
PARTICIPATED IN AN EFFORT
CALLED THE MC INITIATIVE. THAT
ALSO DIDN'T ACTUALLY COME TO
FRUITION. AND THEN FINALLY, THE
ENERGY AND BALANCE MARKET WHICH
WE ARE NOW CURRENTLY
PARTICIPANTS IN DID HAPPEN IN
2014. WE JOINED IN 2020. AND I
WILL TURN IT OVER TO JOSH WHO
WILL GIVE US A LITTLE BIT OF
BACKGROUND ON BOTH THE ENERGY
AND BALANCE MARKET AS WELL AS
SOME OF OUR CURRENT EFFORTS ON
DAY AHEAD.
>> BEFORE JOSH STARTS I JUST
WANT TO THROW SOMETHING OUT
THERE JUST IN CASE FOLKS
REMEMBER OR WONDER. JIM BAGGS
OF COURSE HAS SERVED IN MANY
ROLES AT CITY LIGHT INCLUDING
TWO GIGS AS THE INTERIM GENERAL
MANAGER CEO. AND I GUESS IT WAS
PROBABLY ABOUT A YEAR AND A
HALF AGO OR SO, WE STARTED
TALKING ABOUT HOW MUCH MARKET
ACTIVITY THERE WAS AND HOW
IMPORTANT IT IS FOR CITY LIGHT
AS THE LARGEST UTILITY IN THE
NORTHWEST, THE LARGEST PUBLIC
UTILITY IN THE NORTHWEST, FOR
CITY LIGHT TO BE INVOLVED AND
TO HELP ENSURE THAT THERE ARE
CHOICES AND THAT THE MARKET
DESIGNS THAT ARE EVOLVING WOULD
BENEFIT US. SO ABOUT A YEAR
AGO, WE TOOK JIM AND HE'S BEEN
PRETTY MUCH FULL-TIME ON MARKET
WORK FOR THE LAST YEAR. WE
COULD HAVE FIVE PEOPLE
FULL-TIME ON MARKET WORK AND
STILL NOT COVER EVERYTHING.
THAT'S HOW MUCH IS HAPPENING.
BUT I JUST WANT TO NOTE THAT
WE'VE BEEN SUPER, SUPER
FORTUNATE, JIM HAS WORKED FOR
BOTH INVESTOR OWNED UTILITIES
AND PUBLIC POWER. AND SO HE HAS
THE CREDIBILITY AND THE
RELATIONSHIPS WITH FOLKSTHAT
HAVE BEEN REALLY IMPORTANT FOR
US. I REALLY, REALLY APPRECIATE
HIM BEING WILLING TO TAKE THAT
SPECIAL ASSIGNMENT. OTHER
DUTIES AS ASSIGNED. HOW ABOUT
THAT?
>> THANK YOU.
>> THANK YOU FOR THAT. WELL,
THANKS FOR THE SETUP. JIM. AND
THANKS FOR THE OPPORTUNITY TO
SPEAK TO MARKET EVOLUTION AND
MARKET PARTICIPATION. MAYBE A
QUICK BACKGROUND ON THE WESTERN
ENERGY AND BALANCE MARKET. WHAT
IT ACTUALLY DOES IS ALLOWS
PARTICIPANTS TO BUY AND SELL
POWER CLOSE TO THE TIME
ELECTRICITY IS CONSUMED. AND
GIVES SYSTEM OPEN RAPTORS
REALTIME VISIBILITY ACROSS
NEIGHBORING GRIDS. THE RESULTS
IMPROVE. BALANCINGS SUPPLY AND
DEMAND AT A LOWER COST. AND
PROVIDES PARTICIPANTS AN
ADDITIONAL REVENUE STREAM AND
TIME HORIZONS THAT
TRADITIONALLY HAVEN'T BEEN ABLE
ON A BILATERAL BASIS. WESTERN
ENERGY AND BALANCE MARKET
STARTED AS JIM SAID IN 2014.
WHEN PACIFIC CORPS BECAME THE
FIRST PARTICIPANT IN THE
MARKET. AFTER AGAIN AS JIM
SHOWED EARLIER, ONE OF THE
INITIATIVES THE MARKET
COORDINATION EFFORT COLLAPSED.
SO THE ENERGY AND BALANCE
MARKET WAS BORN OUT OF -- OUT
OF ONE OF THE EFFORTS ON A
REGIONAL BASIS WHERE WE WERE
ATTEMPTING TO COORDINATE AND
CREATE OUR OWN MARKET. BUT
YEAH, EIM KIND OF WAS -- WHAT
ULTIMATELY RESULTED IN THIS
MARKET EVOLUTION BACK IN 2014.
OVER 80% OF WEST PARTICIPATES
IN THE MARKET. AND SEATTLE
BECAME A MARKET PARTICIPANT IN
THE SPRING OF 2020. THE MARKET
EVOLUTION AT THE REGION -- OR
IN THE REGION TO A MORE
ORGANIZED MARKET. I LIKE TO
THINK OF IT AS SIMILAR TO A
CELL PHONE ANALOGY. NEXT SLIDE,
PLEASE. THANK YOU. WHO DOESN'T
OWN A SMART PHONE? RIGHT? FLIP
PHONES MAY -- WERE THERE TO
HELP MOVE YOUR VOICE SHORT
TEXT. BUT THAT'S ABOUT IT. A
SMART PHONE SHOWS YOU THE
REALTIME DATA ON GRID
CONDITIONS, ALLOWS YOU TO BANK
AND ALLOWS YOU TO SPEAK AND
FACETIME OR VIDEO CHAT. SO THIS
EXAMPLE IS REALLY USED TO SHOW
THAT WHAT WE'RE ULTIMATELY
DOING IS EVOLVING IN
TECHNOLOGY. FROM PICKING UP THE
PHONE ON A BILATERAL BASIS TO
TRADE WITH A PARTNER INTO
TECHNOLOGY THAT IS MORE -- IT'S
MODERNIZED. RIGHT? IT'S WORKING
TOWARDS MEETINGEFFICIENCIES.
BILATERAL MARKETS AGAIN WHERE
YOU PICK UP A LANDLINE OR A
FLIP PHONE TO CALL A
COUNTERPARTY AND MOVES ENERGY.
BUT THAT'S IT. AND IT'S ONLY IN
AN HOURLY TIME FRAME. RIGHT?
NOW WITH EIM, WE'RE TALKING
ABOUT OPTIMIZING ON A FIVE AND
15 MINUTE BASIS. THAT
TRADITIONALLY HAS -- THOSE TIME
FRAMES HAVE NOT BEEN AVAILABLE
IN TRADING WINDOWS. TO TAKE IT
A STEP FURTHER, AUTOMATED DAY
AHEAD MARKET DOES ALL OF THOSE
THINGS AND ALL OF THESE THINGS
BUT AT A MUCH GREATER SCALE. SO
WE'RE TALKING IN EIM THE NUMBER
OF TRADES AT OR AROUND 5% OF
THE TRANSACTIONS IN REALTIME
SPACE WHERE THERE'S
--ANECDOTALLY APPROXIMATELY
HALF OR 50% OF THE TRADES THAT
OCCUR IN THE MARKET ARE IN THE
-- IN THE DAY AHEAD TIME SPACE.
AGAIN, RECOUNTING OR RECAPPING
SOME OF THE REASONS WHY WE
ELECTED TO JOIN THE ENERGY AND
BALANCE MARKET. WE PROJECTED
THREE PRIMARY BENEFITS. A
DECREASE IN CARBON EMISSIONS,
COST SAVINGS TO OUR CUSTOMERS,
AND ENHANCED RELIABILITY. AND
WE CAN -- NEXT SLIDE. WITH
THOSE PROJECTED BENEFITS IN OUR
DECISION MAKING, WE ARE FINDING
THAT THEY'RE BECOMING TRUE AND
WE ARE -- WE ARE REALIZING THE
BENEFITS THAT WE WERE
PROJECTING AND SHOWCASING IN
THE REASONS FOR JOINING THE
MARKET. IN -- QUANTIFYING OUR
BENEFITS, THE MARKET AS A WHOLE
HAS REDUCED OVER 310,000 METRIC
TONS OF CO÷ EMISSIONS THROUGH
GREATER INTEGRATION OF
RENEWABLE RESOURCE DEPLOYMENT
AND HAS RESULTED IN OVER $30
MILLION IN BENEFITS TO OUR
CUSTOMERS. SO IN RECOGNIZING
AND REALIZING HOW HELPFUL AND
BENEFICIAL EIM HAS BEEN, AS JIM
MENTIONED EARLIER, IT HAS BEEN
WILDLY SUCCESSFUL. NOT ONLY FOR
SEATTLE. BUT ALSO FOR OUR
MARKET PARTICIPANTS AS A WHOLE.
AGAIN, THAT 80% OF THE WESTERN,
YOU KNOW, OF WESTERN LOAD OR
THE WEST POPULATION IS BEING
SERVED BY EIM IN REALTIME.
>> CAN YOU STAY ON THE SLIDE
FOR A SECOND? I HAVE TO
UNDERSTAND THIS BETTER. ARE YOU
BASICALLY SAYING WHEN YOU TALK
ABOUT INTEGRATION OF RENEWABLE
ENERGY AND THOSE ARE -- DAY
AHEAD OR EVEN SHORTER TERM
INTERVAL TRANSACTIONS. ARE YOU
BASICALLY SAYING THAT IF -- IF
ENERGY FROM WIND OR SOLAR IS
NEEDED, THAT THE AUTOMATION
PROVIDES THAT IT CAN PULL FROM
THOSE RESOURCES AND THEREFORE
MAYBE GROW THE MARKET OR
SOMETHING? IS THAT -- IS THAT
KIND OF WHERE YOU ARE GOING
WITH THAT?
>> YES. EXACTLY. SO IT'S --
IT'S A PLACE FOR IT TO GO.
RIGHT? IT IS -- IT IS A
OPPORTUNITY WHERE BASED ON A
RESOURCE OWNER OR A -- YOU
KNOW, A WIND PLANT OR A SOLAR
PRODUCER, HAS A PLACE FOR THE
ENERGY TO FLOW. THERE ARE SOME
MECHANICS BEHIND BID STRATEGY
AND MAKING SURE THAT IT
ACTUALLY IS IN, YOU KNOW, IN
THE BID STACK FOR HOW IT IS --
HOW IT IS DEPLOYED. BUT YOU ARE
EXACTLY RIGHT. IT IS -- IT
DISPLACING RENEWABLE RESOURCES
ARE IN HOW THESE METRIC -- HOW
THESE CO÷ SAVINGS ARE
QUANTIFIED. IS THE IDEA THAT
IT'S DISPLACING OTHER RESOURCES
AND OTHER RESOURCES THAT
HISTORICALLY ARE EMITTING
RESOURCES. SO THINK COAL OR
NATURAL GAS.
>> OKAY. GOT IT. THANK YOU.
>> MAYBE ONE QUICK THING TO
HELP ADD TO THE ANSWER TO YOUR
QUESTION IS, REMEMBER ALSO THAT
WIND AND SOLAR, WHILE THEY'RE
HIGHLY DESIRABLE FROM A
CLEANLINESS PERSPECTIVE, ARE
ALSO VARIABLE WHICH PROVIDES
CHALLENGES FOR US IN THEIR
OPERATIONS. SO WHAT JOSH IS
TALKING ABOUT HERE IN THE
ENERGY AND BALANCE MARKET IS IT
HELPS PROVIDE A MECHANISM SO
THAT IF IN A GIVEN FIVE MINUTE
PERIOD OF TIME, THE SUN GOES
BEHIND A CLOUD, OR THE WINDS
STOP BLOWING OR THE WIND PICKS
UP. THAT IT ALLOWS THE MARKET
TO RESPOND AND REACT TO THOSE
CHANGES IN THE VARIABLE
RESOURCES IN A WAY THAT YOU
CAN'T DO WITHOUT THE AUTOMATED
SOLUTION.
>> THANK YOU.
>> GREAT QUESTION. THANKS, JIM.
SO MOVING TO THE NEXT SLIDE.
I'M GOING TO KIND OF TRANSITION
INTO -- AWAY FROM THE EIM
MARKET AND INTO THE DAY AHEAD
AND MARKET EVOLUTION IN
GENERAL. SO WE'RE HERE TODAY TO
MAINLY TALK RIGHT? ABOUT HOW
THE TIME IS RIGHT FOR THE NEXT
STEP IN MARKET EVOLUTION. WITH
THE SUCCESS OF EIM, WE'RE NOW
THINKING AND WORKING ON
EXPANDING REGIONAL MARKETS TO
CONTINUE HARNESSING REGIONAL
COOPERATION, WHILE ALSO MEETING
INDIVIDUAL UTILITY INTERESTS.
SUCH AS FURTHER CARBON
REDUCTION, IMPROVED
RELIABILITY, AND COST
REDUCTIONS THROUGH MARKET
EFFICIENCIES. YOU KNOW, THESE
ARE ALL ELEMENTS ASSOCIATED
WITH REALLY TRYING TO HARNESS A
LEVEL OF MOMENTUM IN MOVING
FROM THE SUCCESS OF EIM INTO A
DAY AHEAD MARKET. NEXT SLIDE.
SO WITH THAT IN MIND, THERE ARE
OPPORTUNITIES, THERE'S MORE
THAN ONE. WE ARE WORKING ON AND
ENGAGING IN MULTIPLE POTENTIAL
OPPORTUNITIES IN A DAY AHEAD
MARKET. THE CALIFORNIA
INDEPENDENT SYSTEM OPERATOR OR
CISO THE MARKET OPERATOR FOR
EIM IS DEVELOPING THEIR
EXTENDED DAY AHEAD MARKET
INITIATIVE THAT'S ESSENTIALLY
AN EXTENSION OF THE EIM INTO
THE DAY AHEAD. RIGHT? SO MAKING
THEIR CURRENT DAY AHEAD MARKET
AVAILABLE TO ENTITIES OUTSIDE
OF CALIFORNIA. SO IT'S VERY
SIMILAR IN HOW IT IS KIND OF
BLOSSOMING IF YOU WILL. SIMILAR
TO EIM, RIGHT? THERE ARE
OPTIONS OR THE ABILITY TO JOIN
THE MARKET. YOU CAN ELECT TO
JOIN THE MARKET. WE CAN WORK
THROUGH AND ARE CURRENTLY
WORKING THROUGH MARKET
MECHANICS AND THE RULES
ASSOCIATED WITH THE
PARTICIPATING IN CALIFORNIA'S
OR CISO'S MARKET. SO THAT --
THAT'S DEFINITELY ON THE TABLE
FOR AN OPTION FOR US TO MOVE
FORWARD WITH THE DAY AHEAD.
WITH THE DAY AHEAD MARKET.
ADDITIONALLY, THE SOUTHWEST
POWER POOL MARKET OPERATOR
BASED IN LITTLE ROCK, ARKANSAS
IS LOOKING TO EXPAND THEIR
MARKET INTO THE WEST AND IS
OFFERING A SIMILAR PRODUCT TO
CISO'S DAY AHEAD MARKET.
FINALLY, THERE ARE ADDITIONALLY
THERE'S A GROUP OF 25 LIKE
MINDED UTILITIES ALSO LOOKING
INTO WAYS OF WHAT WORKS BEST
FOR THE ENTITIES AND OUR MARKET
OPTIONS. THE WESTERN MARKETS
EXPLORATORY GROUP IS DOING
EXACTLY WHAT ITS NAME IMPLIES.
IT'S EXPLORING ALTERNATIVES IN
MARKET OPEN RAPTORS, FOOTPRINT
SIZE AND CONNECTIVITY AND THE
CONNECTIVITY IS, YOU KNOW,
TRANSMISSION TRANSFER
CAPABILITIES, SPEAK. IN AND
AMONGST THE VARIOUS BALANCING
AUTHORITY AREAS IF YOU REMEMBER
JIM'S EARLIER SLIDE ON THE 38
-- I HATE -- I ACTUALLY FORGOT
TO CORRECT THAT. THERE'S 39
NOW. BUT WE'RE PARSING AND
SPLITTING HAIRS. AND HOW TO
MAXIMIZE THE BENEFITS FROM
VARIOUS ITERATIONS OF THE
MARKET. SO WE'RE ULTIMATELY
LOOKING AT HARNESSING MOMENTUM.
WHILE ALSO WORKING TOWARDS
MAXIMIZING BENEFITS AND NOT
JUST THINKING ABOUT IT FROM --
FROM AN INDIVIDUAL BASIS. BUT
FROM A REGIONAL BASIS. NEXT
SLIDE.
>> SO IS THIS A REVENUE
GENERATION -- IS THAT ONE OF
THE BENEFITS HERE? I MEAN, WHEN
YOU ARE TALKING -- SO WHEN YOU
ARE TALKING ABOUT THESE MARKETS
AND BEING ABLE TO PARTICIPATE.
IS IT BECAUSE ONE BALANCING
AREA MIGHT HAVE THE POTENTIAL
OF GENERATING SOME REVENUE FOR
ITS RATE PAYERS OR FOR ITS OWN
SYSTEM BY ENTERING INTO THESE
TRANSACTIONS THAT AREN'T
IMMEDIATELY SERVING THE
RATEPAYERS?
>> YES. THERE'S -- A COUPLE OF
DIFFERENT ASPECTS TO THAT.
RIGHT? ONE OF THE -- ONE OF THE
IMPORTANT ASPECTS OF THE MARKET
IN AND OF ITSELF IS EFFICIENT
DISPATCH. RIGHT? THE IDEA OF
PRICES IN THE MARKET BEING IN A
WAY THAT CAN MORE ACCURATELY
REFLECT SYSTEM CONDITIONS. AND
TO THE EXTENT THAT THERE'S AN
OPPORTUNITY FOR ONE BALANCING
AUTHORITY OR ONE MARKET
PARTICIPANT TO SELL IN THE
MARKET, AT LET'S SAY AT
WHATEVER ITS MARGINAL COST IS.
THAT VERY WELL COULD BE A NEW
OPPORTUNITY FOR THAT
PARTICIPANT. BUT ON THE FLIP
SIDE, THERE'S ALSO OPPORTUNITY
FOR POWER COSTS TO BE REDUCED.
SO THE IDEA THAT EFFICIENT
DISPATCH RESULTS IN AN
OPPORTUNITY FROM THE SUPPLY
SIDE FOR REVENUE, IT ALSO ON
THE LOAD SIDE IS AN OPPORTUNITY
FOR OUR CUSTOMERS TO RECEIVE
LOWER COST POWER IN HELPING
KEEP OUR RATES LOW. SO IT'S --
IT'S A COMBINATION OF BOTH
SUPPLY AND DEMAND. AND THE
EFFICIENCY ASSOCIATED WITH WITH
THE MARKET OPERATOR HAVING FULL
GRID VISIBILITY. IN HOW THE --
THE CONDITIONS OF THE MARKET
ARE. SO HOPEFULLY THAT MADE
SENSE.
>> YEAH, AND I ONLY ASK THAT
BECAUSE I'M IMAGINING THAT SOME
PEOPLE ARE LISTENING TO THIS
THINKING WHY DON'T WE JUST RUN
OUR OWN SYSTEM? YOU KNOW, AND
SO -- I JUST WANTED TO MAKE
SURE THAT IT'S UNDERSTOOD THAT
THIS IS -- THAT YOU ARE KEEPING
ULTIMATELY THE INTEREST OF THE
RATE PAYERS IN MIND. AND ALSO
KEEPING IN MIND THAT SUPPLY IS
VOLATILE FROM -- FROM ONE DAY
TO THE NEXT. THANKS. GO ON.
>> YEAH. OKAY. AGAIN, KIND OF
CARRYING ON OR FOLLOWING ON ON
THE "WHY NOW." WE AGAIN WANT TO
CONTINUE TO -- TO LEVERAGE THE
OPPORTUNITY FROM EIM. BUT
AGAIN, THE EIM REALLY ONLY
OPERATES IN SHORT TIME SPANS AS
WE SET THINGS UP EARLIER RIGHT?
THERE'S MULTIPLE TRADING
WINDOWS THAT -- THAT COULD USE
THE EFFICIENCIES ASSOCIATED
WITH A CENTRALLY DISPATCHED
ENERGY MARKET. SO DUE TO, YOU
KNOW, THE SUCCESS OF EIM, WHERE
THERE'S BEEN OVER $2 BILLION IN
BENEFITS ACROSS THE FOOTPRINT
FOR AND THROUGH MARKET
PARTICIPATION. IN EIM SINCE
2014. CLIMATE CHANGE IS
SHOWCASING RELIABILITY
CHALLENGES. WHERE FURTHER
COOPERATION IS NECESSARY IN
LIGHT OF DROUGHT, WILDFIRES,
AND HYDROUNCERTAINTY AS A
SPECIFIC ISSUE FOR US.
CUSTOMERS ARE DEMANDING FURTHER
INTEGRATION OF NONEMITTING
RESOURCES, AGAIN THOSE --
OPPORTUNITY FOR WIND AND SOLAR
NONEMITTING RESOURCES TO HAVE
ACCESS TO THE MARKET IN ORDER
FOR -- FOR THEIR DISPATCH TO
HELP SERVE US AND OUR
CUSTOMERS. I THINK THAT THAT'S
A WILDLY IMPORTANT ASPECT OF
MARKET EVOLUTION AND THE
OPPORTUNITY FOR NEW RESOURCES
TO BE DEPLOYED INTO THE REGION.
ALSO, AND THIS IS ESPECIALLY
HARD ON SEATTLE, AS WE WANT TO
MAXIMIZE THE VALUE OF OUR
RESOURCES AND OUR RESOURCE
CHARACTERISTICS. SO THIS GETS A
LITTLE BIT WONKY BUT I THAT'S
TELE-IMPORTANT THAT SIMPLE
ENERGY TRANSACTIONS DON'T FULLY
APPRECIATE THE ABILITY TO HYDRO
TO MEET THE FLEXIBILITY
COMPONENTS OF A CHANGING GRID.
IF YOU WERE TO PUT KIND OF A
VALUE ON WHAT AND WHY HYDRO IS
SO IMPORTANT, IT -- ITS ABILITY
AS JIM MENTIONED EARLIER ABOUT
LET'S SAY, YOU KNOW, CLOUD
COVER ON A FIVE MINUTE BASIS
MAKES, YOU KNOW, MULTIPLE
THOUSANDS OF NONEMITTING
RESOURCES UNAVAILABLE BECAUSE
THEIR SOLAR IS JUST NOT ABLE TO
GENERATE AND IT MIGHT BE A VERY
SMALL WINDOW OF TIME. BUT HYDRO
IS PERFECTLY POSITIONED TO
PLEAT THAT UNCERTAINTY NEED
WHERE IT CAN RAMP INCREDIBLY
QUICKLY AND RESPOND ALMOST
INSTANTANEOUSLY TO A NEED. BUT
WE NEED THE MARKET OPERATORS
AND THE AUTOMATION IN ORDER TO
ACHIEVE THAT, RATHER THAN, YOU
KNOW, WAIT FOR A CALL, PICK UP
THE PHONE, AND SAY HEY, CAN YOU
DISPATCH, YOU KNOW, THAT
MULTIPLE, YOU KNOW, WHATEVER
THAT ORDER MIGHT BE. SO HYDRO
IS UNIQUELY SITUATED TO
PARTICIPATE AND DERIVE NEW
REVENUE STREAMS AS MENTIONED
EARLIER THROUGH ITS
PARTICIPATION. FINALLY AND THIS
HAS BEEN MENTIONED A COUPLE OF
DIFFERENT TIMES, WE DON'T WANT
TO LOSE MOMENTUM. AS JIM SHOWED
EARLIER, MARKET EFFORTS IN THE
WEST HAVE COME AND GONE WITH NO
RESULTS FOR DECADES. SO NOW IS
THE TIME TO HARNESS MOMENTUM.
NEXT SLIDE. OKAY, THIS IS
ESSENTIALLY A REITERATION OF
THE LAST -- THE LAST SLIDE SO
WE DON'T NEED TO COVER THIS TOO
IN-DEPTH. BUT ONE HIGHLIGHT IS
THE IDEA OF THE EFFICIENT USAGE
OF OUR TRANSMISSION SYSTEM IS
IMPERATIVE TO KEEPING CUSTOMER
COSTS LOW. I THINK THAT WE
CAN'T LOSE SIGHT OF THE
TRANSLATION SYSTEM AND ITS
IMPORTANCE IN MARKETS AND
MARKET EVOLUTION. NEXT SLIDE.
WHAT WE'RE ULTIMATELY LOOKING
FOR IN A MARKET IS THROUGH THE
EVALUATION, THERE'S KIND OF A
LAUNDRY LIST OF WHAT WELL
DESIGN LOOKS LIKE TO US. IT'S
-- IT IS SOMETHING THAT REDUCE
PRODUCTION COSTS, INVESTMENT
COST SAVINGS IS AN IMPORTANT
ASPECT OF EVALUATING A MARKET.
BILATERAL OR BALANCING
AUTHORITY CONSOLIDATION IS
SOMETHING THAT WILL BE HELPFUL
EFFICIENCY MOST LIKELY THAT'S
MUCH FURTHER DOWN THE LINE WHEN
WE MOVE TO AN RTO OR ISO.
IMPROVED RELIABILITY AND ALSO
REDUCTION OVERALL CUSTOMER
COSTS. AND AGAIN, WE DON'T WANT
TO LOSE SIGHT OF THAT LAST
POINT OF IF ANYTHING THAT IS
THE HIGHLIGHT OF MARKETS AND
MARKET INTEGRATION IS WORKING
TOWARDS CONTINUING TO KEEP OUR
CUSTOMER COSTS LOW. NEXT
SLIDE. AGAIN, THE -- DESIRABLE
OUTCOMES ARE, YOU KNOW, THE
IDEA THAT EXISTING AN
ADDITIONAL -- THE ABILITY TO
INTEGRATE RENEWABLES, IS HUGELY
IMPORTANT IN -- FOR US. IN
WASHINGTON STATE AS WELL AS IN
SEATTLE WITH OUR COMPLIANCE
REQUIREMENTS. ADDITIONALLY, YOU
KNOW, FOCUSING ON THE RESULTS
OF THE MARKET AS A WHOLE. AND
THE FOOTPRINT AS A WHOLE IS
IMPORTANT IN THAT THE -- IN
ORDER TO DERIVE THE MOST
BENEFITS, WE NEED THE LARGEST
NUMBER OF MARKET PARTICIPANTS.
SO BEING ISLANDED IS -- NOT A
DESIRED OUTCOME AND WILL LIKELY
KIND OF FRACTURE THE MOMENTUM I
SPOKE OF EARLIER. S THIS, YOU
KNOW, MAYBE -- FOR THE SAKE OF
TIME, LET'S MOVE TO THE NEXT
SLIDE, PLEASE. THANK YOU.
RIGHT. THIS IS -- MAYBE ANOTHER
REITERATION OF WHAT OUR
INTERESTS ARE. AGAIN, CUSTOMER
BENEFITS BEING THE HIGHLIGHT.
NEXT SLIDE. AND THEN THE
REITERATING OUR ACTIVITIES.
CISO IN THEIR EXTENDED DAY
AHEAD MARKET IS A -- A
SIGNIFICANT -- SIGNIFICANT
MOVEMENT IN MARKET EVOLUTION.
AND AGAIN, HARNESSING THE
BENEFITS OF EIM IN THE DAY
AHEAD SPACE IS AN IMPORTANT
ASPECT OF OUR DELIBERATION OF
WHERE AND WHAT WE BELIEVE IS
THE RIGHT CHOICE FOR US. THE
W-MEG IN EXPLORING DIFFERENT
MARKET OPPORTUNITIES AND MARKET
FOOTPRINTS. THE MARKET PLUS
PROGRAM. AND WITH THAT,
LIBBINGAGE TO OUR RESOURCE
ADEQUACY WORK THAT SIOBHAN IS
GOING TO COVER IN A COUPLE OF
SECONDS. SO I JUST WANT TO
LEAVE WITH YOU THE NEXT SLIDE
ON A TIME FRAME OR A TIMELINE.
YOU KNOW, WE WERE CONTINUING TO
WORK ON DESIGN IN E-DAM AS WELL
AS IN MARKETS PLUS IN 2023 AND
2024. 2025 IS WHEN THE MARKET
-- THE EDM WILL MOST LIKELY
LAUNCH WITHCISO, SPP WILL MOST
LIKELY LAUNCH THEIR MARKET THE
FOLLOWING YEAR IN '26. AND I
JUST WANT TO LEAVE US WITH THE
IDEA THAT AN RTO MAY OR
MOSTLIKELY BE BE ON THE HORIZON
IN 2030. WITH BOTH COLORADO AND
NEVADA HAVING A -- REGULATORY
REQUIREMENT TO JOIN AN RTO BY
2030. SO WITH THAT I -- MY
PORTION IS OVER. THANK YOU.
>> GREAT. GOOD MORNING. THANK
YOU FOR HAVING US. I AM GOING
TO TALK A LITTLE BIT ABOUT THE
WESTERN RESOURCE ADEQUACY
PROGRAM. AND THIS IS JUST GOING
TO BE A SHORT OVERVIEW AND
INTRODUCTION TO RESOURCE
ADEQUACY. AND W. R. A. P.. YOU
GUYS SHOULD HAVE RECEIVED MEMO
LAST WEEK THAT GOES INTO
FURTHER DETAILS AND AS
MENTIONED EARLIER, WILL BE
COMING BACK TO THE COUNCIL
LATER THIS SPRING TO TALK IN
MORE DETAIL ABOUT THIS. AND ASK
FOR THE AUTHORITY TO JOIN THE
PROGRAM. BUT TO START OUT, I
WANT TO PROVIDE A QUICK
INTRODUCTION TO RESOURCE
ADEQUACY. AND THAT IS A
REGULATORY CONSTRUCT TO ENSURE
THAT THERE'S SUFFICIENT
RESOURCES TO MEET OUR
ELECTRICITY LOAD. NORMALLY,
THIS WOULD BE PART OF A MARKET
DESIGN. BUT IN THE ABSENCE OF A
MARKET IN THE NORTHWEST, WE ARE
WORKING WITH OUR COUNTERPARTIS
ACROSS THE REGION TO DEVELOP A
PROGRAM SPECIFICALLY FOR US. SO
FIRST LET'S TALK ABOUT WHY THIS
IS HAPPENING RIGHT NOW. THERE
HAVE BEEN A NUMBER OF STUDIES
THAT DEMONSTRATE THE POTENTIAL
NEED FOR ADDITIONAL RESOURCES
IN THE MIDDLE OF THIS DECADE.
AND THIS IS BEING DRIVEN BY A
COUPLE OF THINGS. THERE'S A LOT
OF FOSSIL FUEL GENERATION
THAT'S BEING RETIRED ACROSS THE
WEST. AND THIS IS BEING
REPLACED BY SOLAR AND WIND AND
OTHER RENEWABLE RESOURCES THAT
ARE INTERMITTENT. AND THEN THIS
IS BEING EXACERBATED BY LOAD
GROWTH INCLUDING
ELECTRIFICATION AND THEN SOME
OF THE EXTREME WEATHER EVENTS
THAT WE'VE SEEN AS WELL AS
DROUGHT CONDITIONS ARE MAKING
THIS EVEN MORE EXACERBATED.
THIS WAS ALSO CLEAR IN OUR IRP
THAT YOU GUYS REVIEWED LAST
YEAR. SO -- THE -- WESTERN
RESOURCE ADEQUACY PROGRAM OR W.
R. A. P. WAS DEVELOPED TO
ADDRESS THESE CHALLENGES. AND
ENSURE THAT THERE ARE
SUFFICIENT RESOURCES ACROSS THE
REGION. CURRENTLY, EACH UTILITY
IN THE WEST IS PLANNING FOR ITS
OWN RESOURCE NEEDS. THEY'RE NOT
COLLABORATING ACROSS THE
REGION. AND THERE IS NO
STANDARDIZATION ACROSS THE
REGION. THIS MEANS THAT WE
COULD BE EITHER OVERPROCURING
OR UNDERPROCURING BECAUSE WE
DON'T KNOW WHAT'S NEEDED ACROSS
THE REGION. WE'RE NOT
COORDINATING. THE W. R. A. P.
PROGRAM IS SEEKING TO CHANGE
THIS BY COORDINATING ON WHAT
RESOURCES ARE ACTUALLY
AVAILABLE TO MEET NEEDS ACROSS
THE REGION. THIS EFFORT STARTED
IN 2019. AND SEATTLE CITY LIGHT
HAS BEEN INVOLVED SINCE THE
BEGINNING. AND THIS WAS --
DRIVEN BY INDUSTRY PARTICIPANTS
BY THE DIFFERENT UTILITIES AND
THEY'RE SEEING THERE WAS A
POTENTIAL SHORTFALL COMING UP.
WE WILL BE BOUND BY THE
REQUIREMENTS OF THAT PROGRAM
ONCE WE JOIN THAT. AGAIN, THIS
IS NOT AN ORGANIZED MARKET. BUT
WOULD BE IN OTHER REGIONS WHERE
THERE ARE MARKETS THIS IS AN
ASPECT OF MARKETS BUT SINCE
THERE'S NO MARKET IN THE WEST,
THIS IS BEING DEVELOPED
SEPARATE FROM THAT. NEXT SLIDE.
THIS IS JUST A QUICK TIMELINE.
AS WE MENTIONED WE ARE PLANNING
TO COME BACK TO REQUEST THE
AUTHORITY TO EXECUTE CONTRACT
TO JOIN THIS PROGRAM. THE
PROGRAM DOES START OUT AS A
NONBINDING PHASE AS WE LEARN
HOW THE PROGRAM WILL OPERATE.
IT WILL THEN TRANSITION TO A
BINDING. AND EACH PARTICIPANT
HAS THE OPTION TO CHOOSE AT
WHAT POINT IN THE PROGRAM THEY
WANT IT TO GO BINDING UP TO
CERTAIN POINT. SO OUR PLAN IS
TO ELECT THAT LATEST BINDING
PHASE IN 2028. WHICH GIVES US
PLENTY OF TIME TO KNOW HOW THE
PROGRAM IS WORKING AND HOW IT
WOULD IMPACT OUR OPERATIONS AND
OUR PLANS. THAT'S MY LAST
SLIDE. I BELIEVE. YEAH, THANK
YOU.
>> DO YOU HAVE ANY OTHER
COMMENTS YOU'D LIKE TO MAKE AND
I HAVE FAILED TO -- TO POINT
OUT THAT WE DO HAVE CENTRAL
STAFF EXTRAORDINAIRE MICHAEL
McCONAGHY WITH US.
>> GOOD MORNING, JUST JUMP IN.
I DON'T HAVE ANYTHING TO ADD.
ILL REALLY APPRECIATE THE
DETAIL INVOLVED HERE. AND I
EXPECT THERE'LL BE SOME MORE
COMING AND MY UNDERSTANDING IS
THAT THIS IS THE REAL
FOUNDATION FOR FUTURE
DISCUSSIONS ABOUT RESOURCE
ADEQUACY AND I'LL STAY TUNED.
THANK YOU VERY MUCH.
>> AND WE WILL BE HAVING A -- A
TRANSPORTATION ELECTRIFICATION
BRIEFING COMING UP SOON TO SORT
OF TEE UP THE FACT THAT WE'VE
GOT A -- THAT OUR DEMAND FOR
HYDRO IS -- IS GROWING AT THE
SAME -- BECAUSE OF OUR
TRANSITION FROM FOSSIL FUELS.
AND AT THE SAME TIME, WITH --
WITH DROUGHTS AND FLOODS ET
CETERA, THAT YOU REALLY DO NEED
TO THINK ABOUT HOW CAN WE BEST
ENFORCEABILITY I THINK. SO I
REALLY APPRECIATE THIS OVERVIEW
AND IT'S KIND OF MAKING ME
THINK WELL, HOW COULD WE HAVE
BEEN OPERATING WITHOUT THIS
LEVEL OF COORDINATION UP TO
THIS POINT SO I APPRECIATE
THAT. DO MY COLLEAGUES HAVE ANY
QUESTIONS OR COMMENTS? YES,
COUNCILMEMBER HERBOLD.
>> THANK YOU. HAD A COUPLE OF
QUESTIONS. AND YOU MAY HAVE
COVERED THIS. ON SLIDE 26, AND
RESOURCE ADEQUACY, IT SAYS IT
IS NOT AN ORGANIZED MARKET. CAN
YOU TALK A LITTLE BIT MORE
ABOUT WHAT THAT MEANS? TO NOT
BE AN ORGANIZED MARKET.
>> YEAH. SURE. SO AN
ORGANIZATIONED MARKET IS
SIMILAR TO WHAT JOSH AND JIM
WERE SPEAKING ABOUT. WHERE
THERE'S AN AUTOMATED EXCHANGE
OF ELECTRICITY. THIS IS A
PLANNING PROGRAM. SO ABOUT
SEVEN MONTHS AHEAD OF WHEN WE
WOULD EXPECT DEMAND AND
ELECTRICITY GENERATION TO
OCCUR, WE WILL LOOK AT HOW MANY
RESOURCES DO WE HAVE AND WHAT'S
OUR EXPECTED DEMAND. AND THEN
THAT -- WE PLAN LITTLE BIT
ABOVE THAT DEMAND. THIS
PLANNING PROGRAM. WE'RE NOT --
WE'RE NOT SELLING OR BUYING
RESOURCES THROUGH THIS PROGRAM.
IT'S JUST A PLANNING PROGRAM TO
MAKE SURE THERE'S ENOUGH
RESOURCES AVAILABLE.
>> SO AN ORGANIZED MARKET WOULD
BE ONE -- THAT WAS BUYING
ANSELLING RESOUSES, IS THAT --
GOT IT.
>> ORGANIZED MARKET --
COUNCILMEMBER, AN ORGANIZED
MARKET WOULD EITHER BE
INDEPENDENT SYSTEM OPERATOR IF
IT'S ONE STATE. THINK TEXAS AND
ERCOT WHEN THEY HAD THE
MELTDOWN A COUPLE OF YEARS AGO.
OKAY AND IF IT'S A REGIONAL
ENTITY, IT'S CALLED AN RTO.
REGIONAL TRANSMISSION
ORGANIZATION. AND BOTH
INSTANCES THEY CONTROL THE
TRANSMISSION WITHIN THEIR
FOOTPRINT. AND TRANSMISSION
OWNERS ACTUALLY TURN THE
TRANSMISSION RESPONSIBILITY FOR
OPERATING THAT TRANSMISSION
OVER TO THE SYSTEM OPERATOR.
AND THEN THEY OPERATE IT IN THE
MOST EFFICIENT WAY AND THEY
USED EFFICIENT DISPATCH FOR THE
REGION.
>> OKAY. THAT'S HELPFUL. THANK
YOU.
>> JUST WANT TO SAY I JUST WANT
TO SAY ONE QUICK THING BECAUSE
IT WASN'T HERE WHEN COUNCIL DID
THE WORK TO APPROVE THE EIM BUT
I KNOW THAT SOME OF YOU WERE.
AND THAT WAS A DIFFERENT DEAL.
I MEAN, THAT WAS ALMOST LIKE
SOMETHING WHERE, YOU KNOW,
PEOPLE WENT DRAGGING AND
KICKING BECAUSE PAC WAS THE
FIRST DOMINO AND IT FELL. AND
SO THERE WAS A LOT OF CHOICE
AND MOST UTILITIES INCLUDING
CITY LIGHT DIDN'T REALLY START
-- IT WAS WHEN WE NOTICED THAT
THERE WAS LESS LIQUIDITY IN THE
PRIOR MARKET AND WE WERE
ACTUALLY -- HAD FEWER TRADING
PARTNERS THAT CAUSED US THAT
WAS ONE OF THE FACTORS THAT
CAUSED US TO MOVE INTO THE EIM.
THIS TIME, WITH THE E-DAM, THE
EXTENDED DAY AHEAD MARKET, THAT
JOSH WAS TALKING ABOUT, THERE
IS GENERAL CONSENSUS WITHIN THE
REGION THAT THIS IS GOING TO
HAPPEN. IT'S JUST A QUESTION OF
THERE'LL BE TWO, PROBABLY TWO
OPTIONS. AND UTILITIES WILL
MAKE A DECISION ABOUT WHICH
OPTION BEST SERVES THEIR NEEDS.
BUT IT'S NOT -- IT'S A VERY
DIFFERENT TIME. THERE'S AN
ACKNOWLEDGMENT AND EVEN THE
FEDERAL ENERGY REGULATORY
COMMISSION HAD BEEN VERY
VOCALLY OR SUPPORTING THE WEST
TO ORGANIZE BECAUSE WE ARE THE
ONLY PART OF THE COUNTRY THAT
DOESN'T OPERATE WITHIN AN
ORGANIZED MARKET.
>> GOT IT. GOT IT. AND THEN
SECONDLY, JUST SORT OF BIG
PICTURE. WE'VE HEARD ALL ABOUT
THE BENEFITS. BUT WHAT ARE THE
RISKS OF PARTICIPATING IN THIS?
EITHER TO THE UTILITY, TO THE
RATE PAYERS, AND ARE THERE
STEPS TO TAKE TO MITIGATE THOSE
RISKS? BUILT INTO THIS
PROPOSAL.
>> ARE ASKING ABOUT IN THE --
W. R. A. P. OR IN MARKETS
GENERALFULLY.
>> IN THE W. R. A. P.
>> OKAY. ONCE WE -- WHEN WE
JOIN -- WE BECOME BINDING,
THERE ARE FINANCIAL PENALTIES
IF YOU MAKE COMMITMENTS THAT
YOU DO NOT MEET. SO THE BIG --
BENEFIT OF THIS PROGRAM IS THAT
WE CAN DO MORE EFFICIENT
PLANNING. WE WON'T HAVE TO
OVERPROCURE. BUT IF WE MAKE
MISTAKER OR ARE NOT CLEAR IN
WHAT WE PLAN, WHEN WE -- HOW
MANY RESOURCES WE HAVE TO SHOW
UP, THERE ARE FINANCIAL
PENALTIES INVOLVED. BUT THAT
WOULD BE IN VERY RARE
CIRCUMSTANCES. THE BIG BENEFIT
IS THAT IN THOSE EXTREME
WEATHER EVENTS, WE ARE ABLE TO
MEET OUR CUSTOMER LOAD AND
WE'RE NOT -- SHORT ON
RESOURCES.
>> THANK YOU.
>> YEAH.
>> ARE THERE OTHER QUESTIONS
BECAUSE I HAVE ONE. SPEAKING I
WAS GOING TO ASK THAT QUESTION.
ARE THERE ANY COSTS OR FEES OR
TARIFFS OR ANY OF -- ANY
ADDITIONAL COSTS FOR
PARTICIPATING ONCE IN THIS
BECOMES BIND.
>> Caller: YEAH, THERE ARE
QUESTIONS. WE HAVE BEEN UNDER A
-- MOU, A MEMORANDUM OF
UNDERSTANDING WITH THE PROGRAM
WITH THE WESTERN POWER POOL AS
PART OF DEVELOPING THIS
PROGRAM. WHERE WE HAVE
CONTRIBUTED MONEY TO HELP THE
DEVELOPMENT OF IT BECAUSE WE DO
SEE IT AS VERY IMPORTANT. AND
THERE WILL BE ONGOING FEES.
THEY'RE PRETTY MINOR COMPARED
TO THE BENEFITS WE'RE GETTING
FROM THE PROGRAM.
>> THANK YOU.
>> I MIGHT -- ADD ALSO THAT
THERE IS A TARIFF ASSOCIATED
WITH THE PROGRAM THAT'S NOT YET
APPROVED. BUT THE W. R. A. P.
PROGRAM HAS A TARIFF THAT'S
BEEN FILED AT FEEC UNDER
DELIBERATION RIGHT NOW. BUT
ULTIMATELY IT WILL BE A --
REGULATORY DOCUMENT THAT
GOVERNS HOW THE PROGRAM WILL
OPERATE.
>> THANKS. OKAY. IF THERE ARE
NO OTHER -- SO I'M LOOKING --
SCANNING MY COLLEAGUES. SEEING
IF THERE ARE ANY OTHER
QUESTIONS AND I'M NOT SEEING
ANY. DO YOU WANT -- ANY
COMMENTS FROM PRESENTERS OR
ERIC TO WRAP UP? WILL WE --
INTERACT WITH THIS TOPIC NEXT,
PLEASE?
>> THANK YOU. ERIC, ANYTHING
FROM YOUR END?
>> NOPE. JUST A -- STILL
LOOKING FORWARD TO WHAT YOU ARE
PROBABLY GOING TO SAY. GENERAL
MANAGER THAT WE ANTICIPATE SOME
LEGISLATION AND SOME DECISION
MAKING IN THE FUTURE FOR
COUNCIL. AND MY ROLE I ALWAYS
LIKE TO SEE WHEN CITY LIGHT
COMES IN AND YOU DO THIS OFTEN.
EARLY AND OFTEN TO INFORM THE
COUNCIL SO THEY CAN HAVE A
BASIS FOR THE DECISION. WE'LL
GEAR UP FOR THAT AND COUNCIL
AND YOUR STAFF WILL BE MEETING
WITH CITY LIGHT STAFF TO
PREPARE FOR THAT DECISION
MAKING SEQUENCE. AND I'LL HAND
IT OVER TO THE GENERAL MANAGER.
THANKS.
>> THANKS ERIC. AND SO I GUESS
WHAT I WOULD SAY IS TWO THINGS.
ONE BECAUSE WE KNOW THESE ARE
REALLY TECHNICAL TOPICS WE
PROVIDED A PRETTY DETAILED MEMO
TO COUNCILMEMBER NELSON. AND I
BELIEVE COUNCILMEMBER STRAUSS.
IF OTHERS OR IF YOUR STAFF ARE
INTERESTED IN IT. WE CAN
CERTAINLY GET THAT OVER TO YOU
SO THAT YOU CAN DIG A LITTLE
DEEPER INTO JUST THE W. R. A.
P.. AND YES, WE EXPECT TO BRING
THIS BACK TO YOU HOPEFULLY NEXT
MONTH FOR ACTUAL ACTION.
>> THANK YOU.
>> MADAME CLAIRE?
>> YES, PLEASE.
>> MAY I ASK -- THANK YOU
MADAME CHAIR. A CLARIFYING
QUESTION FOR DIRECTOR SMITH. SO
WHEN YOU SAY YOU ARE GOING TO
COME BACK, SO ARE WE LOOKING AT
MAYBE YOU CAN ASK THIS MADAME
CHAIR OR ERIC, ARE WE LOOKING
AT PASSING AN ORDINANCE OR
RESOLUTION OR AN AGREEMENT TO
PASS ON THE AGREEMENT? WHAT
WILL THAT LOOK LIKE?
>> ERIC?
>> YEAH, MY UNDERSTANDING IS
THAT IT WOULD REQUIRE AN
ORDINANCE TO REQUIRE CITY LIGHT
TO ENTER INTO AN AGREEMENT WITH
W. R. A. P.. ASIDE OF THE CODE.
THE CITY -- THE SEATTLE
MUNICIPAL CODE ALLOWS CITY
LIGHT TO ENTER INTO LOTS OF
DIFFERENT KINDS OF AGREEMENTS
WITHOUT COUNCIL AUTHORITY.
THAT'S -- WELL UNDERSTOOD AND
IT WAS SORT OF DEEMED OUT
BECAUSE OF THE STUFF BUT THE
DECISION AT THIS LEVEL WOULD
REQUIRE COUNCIL TO APPROVAL IT
AS THE GOVERNING BODY. SO
THAT'S WHAT WE ANTICIPATE
SEEING AND IF I SAID ANYTHING
WRONG, CITY LIGHT FOLKS, I
MISREPRESENTED THINGS, PLEASE
CORRECT ME.
>> SO -- MADAME CHAIR, WE WOULD
BE GETTING AN AGREEMENT AHEAD
OF TIME TO LOOK AT TO VOTE ON?
>> ABSOLUTELY. AND WE WILL NEED
TO DISCUSS INTERNALLY WHEN THAT
HAPPENS BECAUSE WE'VE GOT A --
PRETTY FULL MONTH COMING UP. SO
--
>> OKAY. THANK YOU.
>> WE'LL GET BACK WITH MORE
SPECIFIC TIMING. OKAY. SO IF
THAT'S ALL ON THIS TOPIC, WELL,
WHILE I HAVE YOU STILL AT THE
TABLE AND BEFORE WE ADJOURN,
THIS IS OFF TOPIC. BUT THE --
THE ATTACKS ON SUBSTATIONS
SPEAKING OF INFRASTRUCTURE,
NATIONALLY AND MORE REGIONALLY,
HAVE, YOU KNOW, PROMPTED SOME
REPORTING AND SOME QUESTIONS
THAT I'M RECEIVING. SO AND
NOTHING HAS -- IMPACTED CITY
LIGHT INFRASTRUCTURE TO MY
KNOWLEDGE. BUT I JUST THOUGHT
I'D ASK JUST ASSUMING THAT YOUR
SECURITY FOLKS AND
INFRASTRUCTURE PEOPLE ARE ON
IT.
>> YEAH. LET ME JUST GIVE YOU
JUST A LITTLE BIT OF
INFORMATION AND HOPEFULLY WILL
MAKE EVERYONE FEEL A BIT
BETTER. SO FIRST OF ALL, AS
PART OF THE NORTH AMERICAN
ELECTRIC RELIABILITY
COOPERATION, SUBSTATIONS ARE
CATEGORIZED AS CRITICAL ASSETS
AND MUST MEET MINIMUM SECURITY
REQUIREMENTS. SO AND I THINK
WE'VE IMAGINED THE FOREIGN FACT
THAT THIS IS AN AUDIT YEAR
UNDER S. I. P. CREDIBILITY? SO
WE -- WE FOCUS BOTH ON CYBER
PROTECTION BUT ALSO ASK
PHYSICAL PROTECTION OF ASSETS.
THAT COULD INTERRUPT THE BULK
ELECTRIC SYSTEM. THAT'S
GENERALLY HOW THINGS ARE
DEFINED. WE'VE SPENT ABOUT $2
MILLION ANNUALLY ON SUBSTATIONS
SECURITY UPGRADES SINCE 2007.
SO AGAIN THAT'S BEEN A PRIORITY
AND IMPORTANT TO NOTE TOO JIM,
ACTUALLY RUNS THAT REGULATORY
PROGRAM AS WELL. AND CITY LIGHT
IS -- WE'RE REGULARLY IN
CONTACT WITH LOCAL AND FEDERAL
LAW ENFORCEMENT, FOR INSTANCE,
WHEN THINGS COME DOWN IN THE
FBI'S INVOLVED. WE HAVE ACCESS
TO THE CONVERSATIONS. WE ALSO
PARTICIPATE IN NATIONAL
INFORMATION SHARING SOURCES
THAT OFTEN PROVIDES TO US
INFORMATION THAT ISN'T EVEN
AVAILABLE PUBLICLY. IT'S --
INFORMATION THAT IS OF TOP OR
FAIRLY HIGH SECURITY LEVEL. [
CAPTIONERS TRANSITIONING ]
WE ALERTED SUBSTATION PERSONNEL
OF PERFORMING ROUTINING WORK OF
THE HEIGHTENED RISK. WE
REINFORCED PROCEDURES FOR AN
ACCESS AND FOR ESCALATING AND
WE ALSO REPRIORITIZED SOME
UPGRADING WORK. FAST FORWARD TO
THE MORE RECENT EVENTS IN THE
TACOMA AREA, INVOLVING TACOMA
POWER AND PSC. WHAT HAPPENED
THERE IS THE ACTIVITY DAMAGED
EQUIPMENT, BY ACTUALLY
OPERATING LIVE EQUIPMENT.
SUSPECTS WERE CAUGHT. THE
MOTIVE WAS DETERMINED AS LOCAL
PETTY THEFT. EVEN THIS MORNING,
I SAW AN ARTICLE IN THE PAPER
THAT SAID THEIR PLANS MAY HAVE
EXTENDED, BUT AGAIN, THEY WERE
CAUGHT. SO WE'VE BEEN REAL
FORTUNATE. WE'VE WORKED CLOSELY
WITH TACOMA POWER AND WORKED
WITH INDUSTRY PEERS TO
DETERMINE WHICH EQUIPMENT WAS
MANIPULATED AND HOW. WE
DETERMINED WE WERE IN FACT
USING THAT EQUIPMENT IN SOME
LOCATIONS, AND WE HAVE ALREADY
STARTED TO INTRODUCE MECHANISMS
TO REDUCE THE RISK ASSOCIATED
WITH IT. WE HAVE INVENTORIED,
AND ASSESSED OUR RISK. WE HAVE
A PLAN IN FORCE. AND MINIMUM
SECURITY REQUIREMENTS. I THINK
THE MOST IMPORTANT THING TO
NOTE IS THAT, BECAUSE I WAS
LIKE, WOW, WHY WOULD YOU GO
AFTER TACOMA, AND NOT CITY
LIGHT, THANKFULLY, BUT I THINK
THE THING HERE IS THIS WAS NOT
A CYBER ATTACK. THIS WAS NOT AN
ACT OF TERRORISM OR ESPIONAGE
OR ANYTHING. IT WAS LOCAL PETTY
THEFT. SO VERY DIFFERENT,
CERTAINLY ODD TO BE HONEST WITH
YOU, BUT REASSURING FOR US, AND
WE GOT A GOOD LEARNING OUT OF
IT, IN TERMS OF EQUIPMENT THAT
WE CAN MODIFY TO PREVENT ANY
VULNERABILITY IN THE FUTURE.
THANK YOU, COUNCILMEMBER, FOR
THE OPPORTUNITY TO SHARE THAT.
>> THANK YOU VERY MUCH FOR
RESPONDING. I APPRECIATE IT. SO
DID YOU HAVE ONE MORE THING TO
SAY? ALL RIGHT, SO WE'RE
HEADING UP INTO OUR
ADJOURNMENT, UNLESS I SEE ANY
OTHER HANDS. I DO NOT. SO THIS
CONCLUDES THE JANUARY 11th
MEETING OF THE ECONOMIC
DEVELOPMENT TECHNOLOGY AND CITY
LIGHT COMMITTEE. OUR NEXT
COMMITTEE MEETING IS SCHEDULED
FOR WEDNESDAY, JANUARY 25th AT
9:30 A.M., AND THIS MEETING IS
NOW ADJOURNED. IT IS 11:02.
>> THANK YOU.