>> GOOD MORNING, THE MARCH 1st,
2024 MEETING OF THE
SUSTAINABILITY, CITY LIGHT,
ARTS AND CULTURE WILL COME TOO
EARLY AT 9:31 A.M.. I AM TANYA
WOO. WITH THE CLERK PLEASE
CALL THE ROLE?
>> COUNCILMEMBER MORALES?
>> HERE.
>> SAKA?
>> HERE.
>> FIVE MEMBERS PRESENT
>> THE AGENDA WILL BE ADOPTED.
HEARING NO OBJECTION, THE
AGENDA IS ADOPTED. WELCOME.
TO OUR SECOND MEETING . TODAY,
WE WILL BE HEARING A
PRESENTATION BY ONE OF OUR
PARTNERS, THE BONNEVILLE POWER
ADMINISTRATION. WE WILL OPEN
THE HYBRID PUBLIC COMMENT
PERIOD WHICH SHOULD RELATE TO
THE ITEMS ON THE AGENDA WITHIN
THE PURVIEW OF THIS COMMITTEE.
HOW MANY SPEAKERS ARE SIGNED UP
?
>> ONE IN PERSON SPEAKERS
SIGNED UP AND ZERO ONLINE.
>> EACH SPEAKER WILL HAVE TWO
MINUTES AND WE WILL START WITH
OUR ONE IN PERSON SPEAKER AND
CLERK, PLEASE READ THE PUBLIC,
AND INSTRUCTIONS
>> THE PUBLIC COMMENTS ARE UP
TO 20 MINUTES , SPEAKERS WILL
BE CALLED IN THE ORDER IN WHICH
THEY REGISTERED AND SPEAKERS
WILL HEAR A TIME WHEN 10
SECONDS ARE LEFT, THE
MICROPHONES WILL BE MUTED IF
THEY DO NOT STOP WITHIN THE
ALLOTTED TIME. THE PUBLIC
COMMENT IS NOW OPEN AND WE HAVE
THE FIRST SPEAKER. THE FIRST
PUBLIC COMMENT SPEAKER IS
JEFF.
>> HELLO ? I JUST WANT TO SAY
THAT EVERYBODY ON CITY
COUNIL -- I RESEARCHED THIS
PRIOR TO COMING TO THE MEETING,
SO THE U.S. CAN BE SURE YOU'RE
NOT GETTING BS FROM THE
PRESENTERS. I WOULD ENCOURAGE
YOU FOR THIS MEETING AND ANY
MEETING GOING FORWARD, TO MAKE
SURE YOU GOOGLE THE SUBJECT AT
HAND. ANY FELLOW
COUNCILMEMBERS NOT DOING THAT,
YOU WILL MAKE SURE THEY DO
THAT. PRIOR TO HEARING
INFORMATION THAT HAS BEEN
PRESENTED , WHETHER OR NOT IT
IS ACCURATE AND BE A REFRESHER
AS OPPOSED TO BEING THE FIRST
TIME YOU HAVE HEARD IT SO YOU
CAN AS THE PRESENTER GOOD
QUESTIONS AND HAVE A
PRODUCTIVE MEETING. I AM
TRYING TO REMEMBER WHAT ELSE I
WAS GOING TO SAY.
>> THE YOU HAVE SOMETHING --
DID YOU HAVE TO SAY SOMETHING
ABOUT THAT BONNEVILLE POWER
ADMINISTRATION ?
>> JUST ONE SECOND.
THAT IS ALL. THANK YOU.
>> THANK YOU. ARE THERE ANY
ADDITIONAL SPEAKERS?
>> CHAIR, THERE ARE NO
ADDITIONAL REGISTERED
SPEAKERS.
>> MEMBERS OF THE PUBLIC ARE
ENCOURAGED TO SUBMIT WRITTEN
COMMENTS ON THE SIDE OF CARS
AVAILABLE ON THE PODIUM OR
EMAIL THE COUNCIL. WE WILL NOW
MOVE ON TO OUR FIRST ITEM OF
BUSINESS, WILL THE CLERK PLEASE
READ ITEM NUMBER ONE INTO THE
RECORD ?
>> AGENDA ITEM 1, THE
BONNEVILLE POWER AND ATTRITION
. -- ADMINISTRATION.
>> WILL THE PRESENTERS JOIN US
AND SHARE THE PRESENTATION .
WHEN READY , INTRODUCE
YOURSELVES AND BEGIN YOUR
PRESENTATION.
>> GOOD MORNING, COUNCILMEMBERS
. I AM THE DIRECTOR OF
GOVERNMENT AND LEGISLATIVE
AFFAIRS FOR SEATTLE CITY LIGHT.
>> I AM KRISTY GRAINGER, THE
CHIEF FINANCIAL OFFICER FOR
SEATTLE CITY LIGHT.
>> I AM PAUL DOCKERY, THE
SENIOR MANAGER OF ENERGY
RESOURCE IN PLANNING FOR
SEATTLEITE. -- SEATTLE CITY
LIGHT.
>> THANK YOU FOR THE
OPPORTUNITY TO VISIT A
BRIEFING, WE USUALLY DON'T GET
TO DO THIS, BONNEVILLE POWER
ADMINISTRATION IS AN IMPORTANT
PARTNER TO SEATTLE CITY LIGHT,
AND IT IS IMPORTANT TO OUR
CUSTOMERS IN THE CITY LIGHT
SERVICE TERRITORY.
>> PAUL AND I WILL SPLIT
DUTIES FOR PRESENTING THIS
PRESENTATION. WE HAVE A
POWERPOINT. CAN YOU SEE IT?
>> THANK YOU. READY TO GO.
GREAT. WE WILL TALK ABOUT
BONNEVILLE POWER
ADMINISTRATION. WHY ARE WE
HERE TODAY AND WHAT ARE WE
TALKING ABOUT? ONE THIRD OF THE
SEATTLE ELECTRICITY COMES FROM
THE BONNEVILLE POWER
ADMINISTRATION , SOMETIMES WE
JUST CALL IT BONNEVILLE OR
BPA. AS MANY OF YOU KNOW,
SEATTLE CITY LIGHT , WE HAVE
HYDROELECTRIC FACILITIES, AND
WE GENERATE A LITTLE MORE
THAN HALF OF THE POWER WE SERVE
OUR CUSTOMERS THROUGH OUR OWN
GENERATION. A BIG PORTION OF
THE POWER , 36% OF THE POWER WE
SERVE OUR CUSTOMERS COMES FROM
A PURCHASE FROM BONNEVILLE.
THIS IS A GOOD THING FOR OUR
CUSTOMERS BECAUSE THE PRICE WE
PAY FOR THE POWER THAT COMES
FROM BONNEVILLE IS VERY LOW.
UNDER $40 IS A GOOD DEAL FOR
A MEGAWATT HOUR OF POWER.
BONNEVILLE IS A MAJOR
TRANSMISSION PROVIDER IN THE
REGION AND THE HIGH-VOLTAGE
LINES THAT BONNEVILLE OWNS AND
OPERATES ARE HOW WE MOVE POWER
FROM BONNEVILLE -- SORRY, FROM
THE DAM, WHEN WE BUY POWER ON
THE WHOLESALE MARKET, THAT IS
HOW WE MOVE POWER TO SEATTLE TO
SERVE EVERYTHING. THAT
BONNEVILLE CONTRACT IS A BIG
PART OF OUR BUDGET, $191
MILLION PER YEAR, WHY IS THIS
IMPORTANT RIGHT NOW TO THE
LONG-TERM CONTRACT IS 17 YEARS
AND COMING UP FOR RENEWAL SOON,
IT EXPIRES IN OCTOBER OF 2028 ,
WHICH MAY SOUND LIKE A LONG
TIME FROM NOW BUT IT IS QUITE
SOON AND WE ARE ALREADY
STARTING CONVERSATIONS WITH
PEOPLE IN THE REGION ABOUT WHAT
THE NEXT CONTRACT WILL LOOK
LIKE.
>> WE ARE BONNEVILLE POWER
ADMINISTRATION SECOND-LARGEST
POWER CUSTOMER BEHIND OUR
NEIGHBORS TO THE NORTH,
SERVING SNOHOMISH COUNTY. IT
SHOWS 36% OF POWER WE USED TO
SERVE , BUT THE TRANSMISSION TO
GET ALL OF THAT POWER OTHER
THAN 25% OF OUR POWER USES THE
BONNEVILLE TRANSMISSION
SYSTEM.
>> WHAT IS BPA? BONNEVILLE IS
A FEDERAL POWER MARKETING
AGENCIES, ONE OF FOUR IN THE
COUNTRY. HEADQUARTERS ARE DOWN
THE ROAD IN PORTLAND, OREGON.
AS YOU KNOW, SEATTLE CITY LIGHT
, WE ARE A PUBLIC POWER UTILITY
. WE ARE NOT FOR PROFIT. UNLIKE
PUGET SOUND ENERGY OR A
FOR-PROFIT REGULATED ELECTRIC
UTILITY THAT HAS INVESTORS.
PUBLIC POWER UTILITIES LIKE
SEATTLE CITY LIGHT GIVE
PREFERENCE TO PURCHASE POWER
FROM BPA AT COST. THE PRICE
WE PAY FOR THE POWER IS LOW
BECAUSE BONNEVILLE IS NOT
MAKING A PROFIT FROM SELLING
THE POWER PRODUCED BY ALL OF
THE DAMS AND OTHER FACILITIES.
PREFERENCE IS VERY IMPORTANT .
IT IS A FEDERAL POLICY . IT HAS
BEEN IN LAW FOR OVER 80 YEARS .
LIKE ANY FEDERAL POLICY, THEY
DO COME UP FROM TIME TO TIME
AND THIS IS THE REASON WHY
SEATTLE CITY LIGHT IS ASKING
THE REGION, ADVOCATING FOR THE
INTEREST OF SEATTLE AND RESPECT
FOR BONNEVILLE AND TRAVELING
BACK TO WASHINGTON, D.C. FROM
TIME TO TIME TO ADVOCATE WITH
THE FEDERAL GOVERNMENT FOR THE
INTEREST OF SEATTLE. YOU CAN
TELL , NOT JUST SEATTLE,
BONNEVILLE IS THE POWER
COMPANY AND TRANSMISSION WHO
SUPPLIES 20% OF THE POWER TO
THE ENTIRE NORTHWEST IN ANY
REGIONAL POLICYMAKING , THEY
ARE A BIG DEAL. THIS IS A MAP
FROM THE SEATTLE TIMES. IT IS
A GOOD MAP THAT SHOWS THE SPAN
OF BONNEVILLE . BONNEVILLE
SELLS POWER FROM 31 FEDERAL
DAMS. A LOT OF THEM ARE ON THE
COLUMBIA RIVER BUT ALSO ON THE
SNAKE RIVER, THAT GOES INTO
IDAHO AND SMALLER RIVER SYSTEMS
IN OREGON AND MONTANA AS
WELL. BONNEVILLE SELLS THE
OUTPUT FROM THE PACIFIC
NORTHWEST APACHE IS ONLY
NUCLEAR POWER PLANT, THE
COLUMBIA GENERATING STATION.
BECAUSE WE PURCHASE POWER FROM
BONNEVILLE AND THEY GET A
MIXTURE OF ALL OF THE
GENERATING FACILITIES, PART OF
THE POWER IN SEATTLE IS
NUCLEAR. THE WAY THAT OUR --
WE BUY POWER FROM BPA THROUGH
A CONTRACT, THEY HAVE THREE
OPTIONS, BLOCK, WHERE THE
UTILITY GETS A PREDICTABLE
BLOCK OF POWER EVERY MONTH,
SLICED , WHERE THE UTILITY GETS
A SLICE OF WHATEVER IS
GENERATED, THEY CAN SHARE. THAT
CAN CHANGE DEPENDING ON
CONDITIONS. YOU GET FLEXIBILITY
AND WHERE THE ELECTRICITY IS
SHAPED EVERY HOUR, THIS IS AN
EXPENSIVE PRODUCT. BECAUSE IT
IS TAILORED EVERY HOUR. CITY
LIGHT PURCHASES LOCK WHICH
PROVIDES ELECTRICITY TAILORED
TO MEET OUR NEEDS. YOU CAN SEE
FROM THE CHART, HOW IT WORKS
IS THE YELLOW, THE BPA BLOCK,
WE GET MORE IN THE WINTER WHEN
OUR LOAD IS HIGHER FROM HEATING
NEEDS. WE TAKE LESS IN THE
SPRING WHEN OUR OWN HYDRO
FACILITIES ARE PRODUCING ENOUGH
POWER TO OUR LOAD. ONE THING
THAT YOU WILL BE HEARING FROM
CITY LIGHT ABOUT IN THE
FUTURE, WE TALKED ABOUT THIS AT
THE LAST COMMITTEE MEETING ,
CITY LIGHT HAS A NEED FOR MORE
ELECTRICITY IN THE FUTURE. OUR
LEGACY HYDRO FACILITIES ARE
NOT GOING TO BE ENOUGH TO SERVE
THE GROWING SEATTLE NEEDS IN
THE FUTURE AND WE WILL NEED TO
BE OUT GETTING CONTRACTS AND
PROCURING NEW POWER RESOURCES ,
WIND AND SOLAR , OTHER
RENEWABLES, BUT WE WILL BE CITY
COUNCIL APPROVAL TO BRING THOSE
NEW RESOURCES INTO OUR
PORTFOLIO. YOU WILL BE HEARING
MORE ABOUT THAT DOWN THE ROAD.
YOU CAN SEE FROM THE START,
AUGUST , WHEN IT IS HOT, MORE
AND MORE SO , WE HAVE AIR
CONDITIONING IN SEATTLE. THAT
IS AN AREA. IN THE WINTER , IN
DECEMBER, THE BLUE LINE GOES
ABOVE THE YELLOW , TWO TIMES OF
YEAR WHEN WE WILL BE LOOKING TO
BRING ON MORE RESOURCES TO MEET
THE GROWING DEMAND IN SEATTLE.
>> I WILL JUST FORESHADOWED
LATER IN OUR PRESENTATION , WE
WILL TALK ABOUT THE REST OF THE
CUSTOMERS IN THE REGION SERVED
BY BONNEVILLE. ALL OF US AS
CUSTOMERS HAVE OPTIONS, THOSE
THREE OPTIONS FOR PRODUCT,
DEPENDING ON THE INDIVIDUAL
CUSTOMER CIRCUMSTANCES, THEY
CAN CHOOSE THOSE. WE WILL TALK
MORE ABOUT THAT IN FUTURE
SLIDES. ANY PUBLIC POWER
UTILITY IN THE PRIOR GRAPHIC ,
THE YELLOW REGION IS ELIGIBLE
FOR ONE OF THOSE PRODUCTS.
>> THIS IS ABOUT TRANSMISSION,
BPA IS POWER AND TRANSMISSION ,
TRANSMISSION IS HOW WE MOVE
POWER ACROSS THE REGION. THE
DARK GREEN LINES ON THE MAP ARE
ALL OF THE TRANSMISSION FROM
BPA. THIS IS MOST OF THE
TRANSMISSION REGION . CITY
LIGHT DOES ON A LITTLE BIT OF
HIGH-VOLTAGE TRANSMISSION LINES
BUT I LOVE THE POWER WE MOVE
AROUND THE REGION IS ON THE BPA
LINES. THIS IS AN IMPORTANT
THING. IN THE TOP CORNER, THAT
IS WHERE THAT DAM IS COME IN
THE NORTHEAST CORNER OF THE
STATE. WE USED TO BONNEVILLE
TRANSMISSION LINES TO MOVE THE
ELECTRICITY WE GENERATE TO
SEATTLE.
>> ONE OTHER THING ON
BONNEVILLE BEFORE WE TRANSITION
, THEY ARE ONE OF FOUR FEDERAL
POWER AGENCIES, ITS OWN
UNIQUE THING WITHIN THE
FEDERAL GOVERNMENT. THEY ARE A
PART OF THE U.S. DEPARTMENT OF
ENERGY. BUT THEY ARE FULLY
FUNDED BY THEIR SALES OF POWER
AND TRANSMISSION TO CUSTOMERS,
WHICH MEANS THEY ARE THEIR OWN
AGENCY WITHIN THE FEDERAL
GOVERNMENT. THEY DO NOT RELY ON
MONEY FROM -- WHAT IS THE
RIGHT TERM? TAXPAYER FUNDING.
>> LIKE SEATTLE CITY LIGHT IS.
WE ARE NOT FUNDED BY SEATTLE
TAXES BUT FULLY FUNDED BY
REVENUE FROM ELECTRICITY. IN
THE NEXT SECTION, WE WILL TALK
ABOUT POLICY ISSUES THAT ARE
COMING UP RELATED TO BPA AND
DECISIONS YOU WILL BE HEARING
ABOUT , WE WILL NEED CITY
COUNCIL ENGAGEMENT IN THE
COMING YEARS.
>> THIS IS OUR LIST OF POLICIES
THAT ARE ONGOING WITH THE
BONNEVILLE POWER ADMINISTRATION
, TODAY WE FOCUS ON THREE,
THIS CONTRACT DEVELOPMENT FOR
THE NEXT CONTRACT TIME, WHICH
WE REFER TO AS THE POST-2020
CONTRACT BECAUSE OUR CURRENT
AGREEMENT EXPIRES ON OCTOBER
31st, 2028 . WE WILL TALK MORE
ABOUT THAT. THE SECOND IS DAY
AHEAD MARKET CHOICE , WHICH
CONTINUES THIS EVOLUTION OF
POWER MARKETS . WE WILL TALK
ABOUT HOW BONNEVILLE IS
ENGAGING IN THAT AND WE ARE
WORKING WITH BONNEVILLE ON
THAT TO START MARKET EVOLUTION.
THIRD, TRANSMISSION,
TRANSMISSION, TRANSMISSION, WE
WILL TALK ABOUT TRANSMISSION
SYSTEM EXPANSION AND GENERATOR
CONNECTION. THIS IS A NUMBERED
LIST, DO NOT INTERPRET IT AS A
RANKED LIST. GOOD WORK ON THE
OTHER TOPICS BUT TODAY WE JUST
FOCUS ON THE TOP THREE. FIRST ,
THIS CONTRACT DEVELOPMENT. AS
WE MENTIONED, IN THE MIDST OF A
17 YEAR CONTRACT WITH BPA THAT
STOPS IN 2028 . 130 OTHER
PREFERENCE CUSTOMERS ALSO HAVE
CONTRACTS THAT EXPIRE IN 2028
AT THE SAME TIME. BONNEVILLE
IS CURRENTLY HOSTING PUBLIC
PROCESS FOR INTERESTED
STAKEHOLDERS TO DISCUSS THE
TERMS AND CONDITIONS OF THIS
CONTRACT. BECAUSE IT IS SUCH A
LARGE AND FAR-REACHING AGENCY ,
WITH A LOT OF CUSTOMERS, THEY
HAVE STANDARD OFFERINGS OF
CONTRACTS WHERE YOU CAN CHOOSE
PRODUCTS. ULTIMATELY, ALL 130
CUSTOMERS ARE PART OF A
MULTILATERAL NEGOTIATION TO SET
THE TERMS OF THE AGREEMENT. IN
OUR ENGAGEMENT WITH BONNEVILLE
ON THIS VERY IMPORTANT TOPIC,
WE SET THREE PRIORITIES FOR
ADVOCACY , ONE, EMISSIONS
POLICY , WE ARE ADVANCING
POLICIES THAT ARE CONSISTENT
WITH SEATTLE APOLOGISTS
ADMISSIONS REDUCTION
OBLIGATIONS ANGLES BECAUSE WE
RECEIVE BENEFITS OF LOWER
EMISSIONS ASSOCIATED WITH
HYDROPOWER WE PURCHASE FROM
BONNEVILLE . IT ALSO HELPS US
MEET CITY GOALS AROUND CARBON
EMISSIONS AND STATE-LEVEL
REQUIREMENTS . WE WANT TO MAKE
SURE THE NEXT CONTRACT
CONTINUES TO ADVANCE THAT
INTEREST WE HAVE IN EMISSIONS
REDUCTIONS. THE SECOND IS ABOUT
PRODUCT DESIGN, BLOCK, SLICED,
LOAD FOLLOWING ARE THE
PRODUCTS CURRENTLY OFFERED
UNDER THE CURRENT CONTRACT. WE
ARE ON A BLOCK PRODUCT. IT IS
NOT A FOREGONE CONCLUSION THAT
BONNEVILLE WILL CONTINUE
OFFERING ALL OF THOSE PRODUCTS
AND NOT A FOREGONE CONCLUSION
THEY COULD NOT OFFER OTHER
PRODUCTS. AS THE ENERGY
RESOURCE STRATEGY AND PLANNING
PERSON IN THE ROOM, I DO
BELIEVE THE PRODUCT DESIGN IS
CRITICALLY IMPORTANT TO
UNDERSTANDING AND INTERACTING
WITH THE WHOLESALE MARKET AND
SERVING THE LOAD AT THE LOWEST
POSSIBLE COST. THE LAST AREA
OF ADVOCACY IS ENERGY
EFFICIENCY. SEATTLE HAS MADE
SIGNIFICANT INVESTMENTS IN
ENERGY EFFICIENCY WHICH HAS
PROVIDED US ROOM TO GROW AND
HAVE ADDITIONAL LOADS. WE CAN
GROW INTO THIS LOAD , POWER
SUPPLY FROM BONNEVILLE AT THE
LOW-COST EMISSIONS RATE . WE
ARE ADVOCATING TO GET CREDIT
FOR THAT INVESTMENT IN ENERGY
EFFICIENCY TO CARRY FORWARD
INTO THE NEXT CONTRACT.
OTHERWISE, THIS ACCESS TO
LOW-COST AND LOWER EMISSIONS
SERVICE WE HAVE ENABLED THROUGH
THESE ENERGY EFFICIENCY
PURCHASES WOULD EXPIRE AT THE
END OF THE 17 YEAR AGREEMENT
AND WE WANT TO MAKE SURE OUR
CUSTOMERS GET CREDIT FOR THE
INVESTMENT IN ENERGY EFFICIENCY
AND CONTINUE TO HAVE ACCESS TO
THIS RESOURCE INTO THE NEXT
CONTRACT. THOSE ARE OUR THREE
AREAS OF FOCUS IN ADVANCING OUR
INTERESTS AND THE INTERESTS OF
SEATTLE IN THIS CONTRACT OF
ELEMENT. IT IS A MULTILATERAL,
130 PEOPLE WITH INTERESTS IN
THIS PROCESS AND BONNEVILLE IS
ENGAGING IN A PUBLIC PROCESS
TO HELP INFORM THEIR DECISIONS.
NOW, THE SECOND ISSUE. THE
FIRST ONE , THE CONTRACT, THAT
IS A BIG ISSUE . THE NEXT ONE
IS JUST AS BIG . WITH REGARDS
TO REGIONAL ELECTRIC MARKETS .
IN ORDER TO PROVIDE
COST-EFFECTIVE RELIABLE SERVICE
TO SEATTLE, WE BUY AND SELL
POWER FROM OTHER UTILITIES AND
POWER PRODUCERS IN THE REGION
THROUGH WHOLESALE ELECTRIC
MARKETS. WE DO THAT IN
DIFFERENT WAYS AND AT DIFFERENT
TIMES . FOR INSTANCE, THERE ARE
LONG-TERM CONTRACTS LIKE THE
ONE WITH BONNEVILLE, 17 YEAR
AGREEMENT IS A LONG-TERM
PROCUREMENT , BUT FORWARD
CONTRACTS FOR POWER FOR FUTURE
MONTHS OR QUARTERS THAT HAPPEN
EITHER WITHIN THE YEAR TO THE
NEXT YEAR . THERE ARE ALSO
PURCHASES AND SALES IN THE DAYS
AND HOURS LEADING UP TO
ELECTRIC SERVICE. ONE OF THE
AREAS OF EVOLUTION IN -- IS
DAY AHEAD MARKET , WHEN WE
PURCHASE, WE ARE SELLING POWER
IN THE DAYS IN ADVANCE OF
ELECTRIC SERVICE WHICH WE HAVE
TO DO EVERY MINUTE OF EVERY
DAY, PROVIDING SERVICE TO MAKE
SURE THE LIGHTS STAY ON.
BONNEVILLE AND CITY LIGHT ,
OTHER UTILITIES IN THE WEST ARE
EVALUATING NEWLY FORMING DATA
NETWORKS , TWO OF WHICH ARE
UNDER DEVELOPMENT, ONE IS THE
CALIFORNIA INDEPENDENT SYSTEM
OPERATOR'S EXTENDED DAY AHEAD
MARKET, AND THE SOUTHWEST POWER
POOL. BONNEVILLE IS AND IS
CURRENTLY IN A PUBLIC PROCESS ,
ANOTHER ONE AROUND THEIR REVIEW
OF WHAT MARKET TO CONTINUE TO
ADVANCE, EITHER THE MARKETS
PLUS OR THE EDAM AND THEY WILL
PUBLISH LEANING IN APRIL OF
2024. THIS WILL HAVE INFLUENCE
ON US BECAUSE WE ARE A LARGE
PURCHASER OF POWER FROM
BONNEVILLE AND USE THEIR
TRANSMISSION SYSTEMS . THIS IS
A BIG SCOPE OF WORK FOR US
ENGAGING AND MAKING SURE OUR
INTERESTS ARE REFLECTED IN THE
PROCESS BY BONNEVILLE AND THE
RATIONALE FOR JOINING A MARKET
. AND WILL HAVE CONSEQUENCES
FOR OUR POWER CONTRACTS AND
THE NEXT CONTRACT AND THE
REMARKETING OF OUR RESOURCES .
>> I WANT TO UNDERSCORE, A LOT
OF UTILITIES IN THE REGION WILL
BE MAKING THIS SAME DECISION,
DO WE GO TO MARKETS PLUS OR
EDAM, NOBODY WANTS TO BE AT
THE BETAMAX EQUIVALENT OF
MARKETS. THIS IS A DECISION WE
WILL BE TALKING ABOUT MORE IN
THE COMING MONTHS AND YEARS AS
WE MAKE THIS DECISION. WE
MADE THIS DECISION ABOUT THE
HOURLY MARKET AND DAY-AHEAD
PHASE.NOW MOVED TO THE AS THE
FINANCE PERSON, CITY LIGHT'S
EXPOSURE TO THE WHOLESALE
MARKET IS SOMETHING WHERE WE
NEED -- IT IS UNAVOIDABLE, WE
HAVE TO TRANSACT IN THE
WHOLESALE MARKET BECAUSE WE
NEED TO BALANCE ELECTRICITY
MODES EVERY HOUR OF EVERY DAY.
WE HAVE TO BE IN THE WHOLESALE
MARKET. THERE IS A BIG
FINANCIAL RISK TO THE UTILITY
AND TO THE CITY FROM OUR
INTERACTION IN THE WHOLESALE
MARKET . IF YOU RECALL, THE
WESTERN ENERGY CRISIS IS OVER
TWO DECADES AGO BUT THAT WAS A
VERY BIG DEAL FOR CITY COUNCIL,
CITY LIGHT, WE WERE IN THE
WHOLE $500 MILLION. THIS IS A
FINANCIAL RISK . THE MARKETS
HAVE EVOLVED TREMENDOUSLY OVER
THE LAST TWO DECADES. TALKING
ABOUT AUTOMATIC MARKETS WHERE
WE USE TECHNOLOGY TO BALANCE IS
FANTASTIC ADVANCEMENTS. BUT AT
THE SAME TIME , THIS IS A PART
OF OUR BUSINESS THAT IS
SOPHISTICATED AND RISKY.
UNAVOIDABLE. COMING UP PRETTY
SOON , A POLICY UPDATE WITH
RESPECT TO HOW WE DO WHOLESALE
RISK MANAGEMENT AROUND OUR
MARKET INTERACTIONS . THERE
WILL BE A RESOLUTION COMING,
SOME HOUSEKEEPING, WE HAVE NOT
UPDATED IT FOR OVER A DECADE.
YOU WILL BE HEARING ABOUT THAT
SOON.
>> THAT IS ON THE MARCH 15th
AGENDA . WE HOPE TO HAVE THE
WHOLESALE ENERGY RISK
MANAGEMENT POLICY COMING BEFORE
YOU . A CHANCE TO SEE HOW WE
MANAGE THE RISK OF BEING IN THE
MARKET IN TERMS OF BUYING AND
SELLING.
>> THANK YOU .
>> TRANSMISSION , TRANSMISSION
, TRANSMISSION, THE REGION'S
NEED FOR MORE TRANSMISSION IS
THREE DRIVERS, THE DEMAND FOR
ELECTRICITY IN THE REGION IS
GROWING. BOTH BECAUSE OF
TECHNICAL INDUSTRY GROWTH AND
BUILDING AND TRANSPORTATION
ELECTRIFICATION, DRIVING MORE
LOAD ACROSS THE REGION. THERE
IS ALSO A REDUCTION IN THE
OPERATIONAL POWER PLANTS ALONG
THE I-FIVE CORRIDOR. BECAUSE
THE NEW RESOURCES THAT WE ARE
BRINGING ONTO THE GRID ARE FROM
WIND AND SOLAR LOCATED
GENERALLY EAST OF THE CASCADES
WHERE THERE ARE BETTER WIND AND
SOLAR RESOURCES FOR SEATTLE
CITY LIGHT, THIS DEMAND GROWTH
COMES IN THE FORM OF INCREASED
LOAD THAT WE HAVE TO SERVE AS
A UTILITY. OUR EXPECTATION IS ,
OVER THE NEXT 10 YEARS, OUR
NEED FOR ENERGY WILL INCREASE
BY ABOUT 10% AND THE NEED TO
MEET PEAKS, THE TOP DEMAND, IS
EXPECTED TO INCREASE 20% OF
WHAT WE SAW IN JANUARY DURING
THE WINTER STORM EVENT. BY
2035. WE WILL NEED TO INCREASE
OUR SERVICE TO EVENTS LIKE
THAT BY ABOUT 20% , A
SIGNIFICANT INCREASE IN OUR
NEED FOR TRANSMISSION AND
RESOURCES TO SERVE THAT LOAD
WITHIN THE CITY OF SEATTLE.
THAT , AS WE SAW ON THE EARLIER
MAP, THE BONNEVILLE POWER
ADMINISTRATION HAS A
TRANSMISSION NETWORK THAT
SERVES EAST AND WEST OF THE
CASCADES, WE HAVE TO WORK WITH
THEM AND ADVOCATE ADVANCE
POLICIES CONSISTENT WITH
INCREASING TRANSMISSION FOR
LOAD SERVICE IN THE REGION,
INCLUDING TO US.
>> AS FAR AS THE TRANSITION
AWAY FROM FOSSIL FUELS , THESE
NUMBERS ARE GOOD NEWS FOR THE
RESOURCE PLANNING GUIDE THIS
MEANS WE HAVE WORK TO DO TO
MAKE SURE WE CAN RELIABLY SERVE
THE ELECTRICITY NEEDS IN
SEATTLE AS THEY GROW IN THE
FUTURE.
>> THE INFRASTRUCTURE -- NOT
THE INFRASTRUCTURE -- THE
INFRASTRUCTURE JOBS ACT PASSED
IN 2021 BY CONGRESS IS AN
IMPORTANT RESOURCE FOR
BONNEVILLE POWER
ADMINISTRATION, THERE IS
SIGNIFICANT INVESTMENT IN
TRANSMISSION INCLUDED IN THAT
LEGISLATION AND WE'RE HOPING
TO SEE REAL MOVEMENT ON THE
BUILDING OF ADDITIONAL
TRANSMISSION FOR BONNEVILLE
CUSTOMERS .
>> TO FOLLOW UP ON THIS SLIDE
AND TIE IT TO WHAT WE HAVE SEEN
IN THE NEWS, THE NEED TO
INTERCONNECT ADDITIONAL
RESOURCES IS A CONSTRAINT
ACROSS THE NATION. WE SEE THIS
IN CALIFORNIA AND IN THE
BONNEVILLE SERVICE TERRITORY
AND IN THE EASTERN INTERCONNECT
WHERE THE NEED TO ADD RESOURCES
IS A CONSTRAINT ON THE
TRANSMISSION SYSTEM ACROSS THE
COUNTRY.
>> JUST LIKE IT WOULD BE
DIFFICULT TO PUT A NEW ROAD
ACROSS THE STATE, BECAUSE YOU
CUT ACROSS DIFFERENT PIECES OF
LAND WITH DIFFERENT OWNERS ,
CREATING NEW TRANSMISSION LINES
IS VERY DIFFICULT BECAUSE YOU
HAVE TO MOVE THE ELECTRICITY
ACROSS ON VARIOUS FARMLAND AND
THERE IS A LOT OF WORK THAT HAS
TO BE DONE TO MAKE THAT HAPPEN.
TIMELINES
>> THIS IS THE POLICY DECISION
TIMELINE FOR BONNEVILLE POWER
ADMINISTRATION , THE WORK
STREAMS BONNEVILLE HAS ONGOING
WITHIN THE REGION THE PROVIDER
OF CHOICE REFERS TO THE POST
2028, THAT IS THE TERM FOR THIS
NEW CONTRACT. THEY ARE GOING
THROUGH A RECORD DECISION
PROCESS NOW, THEY EXPECT TO
ISSUE SOME POLICY DECISIONS
EARLY THIS YEAR. THAT JUST
LEADS INTO A BUNCH OF WORK
AROUND CONTRACT DEVELOPMENT.
THEY ARE ASKING US TO BE READY
TO SIGN CONTRACTS BY THE END OF
2025. ON THE THIRD STREAM IS
THE DAY AHEAD MARKETS. THEIR
TIMELINE FOR TRYING TO DEVELOP
LEANINGS WITHIN THE SPRING
AND HAVE DECISIONS LATER THIS
YEAR ON WHAT MARKET TO JOIN.
FOR US, THESE ARE FEEDING INTO
OUR INTERNAL PROCESSES BECAUSE
THE DECISIONS BY BONNEVILLE DO
MAKE A DIFFERENCE IN OUR
DECISIONS ON ACTIONS,
SPECIFICALLY WHAT PRODUCTS TO
CHOOSE AND THE NEXT CONTRACT
AND HOW TO ENGAGE IN REGIONAL
MARKET EXPANSION AND DAY-AHEAD
MARKETS.
>> WHEN WE -- BEFORE WE SIGN
THE CONTRACT, WE WILL GO BACK
TO THE CITY COUNCIL FOR
APPROVAL IN 2025. THE OTHER ONE
IS THE DAY AT MARKET WHICH --
WHEN WE CHOOSE WHAT MARKET
CITY LIGHT WILL JOIN, THAT WILL
COME TO THE CITY COUNCIL AS
WELL AS WE ANTICIPATE POSSIBLY
LATER IN 2024 OR EARLY 2025 ,
AGAIN, AS WE SAID, WHERE
BONNEVILLE CHOOSES TO GO WILL
HAVE IMPACT ON US AND WE WILL
NEED TO HAVE A GOOD SIGNAL
ABOUT WHERE BONNEVILLE WILL BE
GOING IN TERMS OF WHICH
DAY-AHEAD MARKET THEY WILL
CHOOSE.
>> WE HAD A LIST OF ISSUES AND
SOME HAVE PROCESSES WHICH
OVERLAP, RESIDENTIAL EXCHANGE,
OTHER WORK STREAMS WITH
BONNEVILLE AND CITY LIGHT TO
MAKE SURE THE CITY'S INTEREST
ARE ADVANCED. I CAN EXPLAIN
RESIDENTIAL EXCHANGE IN THE
MOST BASIC OF TERMS . PART OF
THE FEDERAL STATUTE ASSOCIATED
WITH THE BONNEVILLE POWER
ADMINISTRATION , MAKING SURE
ALL CUSTOMERS IN THE REGION,
NOT JUST PREFERENCE CUSTOMERS ,
GET BENEFITS FROM THE FEDERAL
GOVERNMENT'S INVESTMENT IN OUR
INFRASTRUCTURE AND RESIDENTIAL
EXCHANGE IS ONE OF THE
MECHANISMS WHERE IT BENEFITS
ACCRUED FROM HAVING FEDERAL
INVESTMENT IN THE REGION GO TO
CUSTOMERS OF INVESTOR-OWNED
UTILITIES AS WELL.
>> ONE OF OUR UTILITIES IN
OUR AREA BENEFIT FROM
RESIDENTIAL EXCHANGE . THAT IS
BEGINNING TO HEAT UP AND
ANOTHER ISSUE WE WILL BE
INVOLVED WITH. NO DECISION
COMING TO THE CITY COUNCIL ON
THAT.
>> THAT IS IT.
>> HAPPY TO TAKE QUESTIONS.
>> ANY QUESTIONS?
>> COUNCILMEMBER SAKA?
>> THANK YOU, CHAIR WOO. I
HAVE A FAIR AMOUNT OF
QUESTIONS, I DON'T KNOW WHERE
TO START . I WILL ASK A COUPLE
AND SEE IF MY COLLEAGUES HAVE
ANY OTHER QUESTIONS. I WILL
FINISH LATER AS NEEDED THANK
YOU VERY MUCH FOR THIS RATHER
INSIGHTFUL PRESENTATION. GOING
BACK TO -- SO, I WOULD LIKE
TO BETTER UNDERSTAND THE
SOURCES OF THE POWER FOR BPA.
PRIMARILY POWER ACROSS 31
FEDERAL DAMS, SLIDE FROM THE
"SEATTLE TIMES" MAP. NUCLEAR
AS WELL. WOULD LOVE TO HEAR
THE BREAKDOWN THERE MAY OR MAY
NOT HAVE BEEN A SLIDE ON THE
BREAKDOWN WHAT ARE THE VARIOUS
CATEGORIES AND SOURCES OF POWER
FOR BPA?
>> 83% HYDRO, 50% NUCLEAR, 2%
OF THE RESOURCES WHICH ARE
SMALL CONTRACTS TO WIN, BIO
MASS, PART OF THE
NON-SPECIFIED IS BALANCING
PURCHASES AND SALES, AND THE
DAY-AHEAD MARKET. JUST LIKE
CITY LIGHT, WHEN THE RESOURCES
DON'T MATCH THE LOAD, WE HAD
TO SELL OR BUY FROM THIRD
PARTIES TO MAKE SURE WE CAN
MEET OUR LOAD IN A GIVEN HOUR
AND BONNEVILLE DOES THAT MIX.
>> HOW DOES THATAS WELL WHICH
IS PART OF OUR RESOURCE
ALLOCATION ALIGNED WITH THE
CITY'S CLIMATE GOALS?
>> IT IS PART OF THE MIX WE
SHOW , THE CLEANEST AND LOW
EMISSIONS OF THAT . ONE OF THE
REASONS WE ARE ADVANCING OUR
INTEREST IN THE PROVIDER
CHOICE PROCESS AROUND THE
MISSIONS IS TO MAKE SURE THAT
THAT PORTION OF THE SERVICE
FROM UNSPECIFIED MEET OUR
GOALS AND EXPECTATIONS THAT WE
ARE INFLUENCING THEIR POLICY TO
MAKE SURE THEY ARE TRYING TO
AVOID AS MANY OMISSIONS IN THE
REGION AS POSSIBLE .
>> PART OF THE ADVOCACY WE DO
IS MAKING SURE BONNEVILLE STAYS
A CLEAN ENERGY PROVIDER. I WILL
JUST MENTION, THE NUCLEAR THAT
WE GET INTO THING ABOUT 4% OF
OUR LOAD, WITH THE NUCLEAR
POWER THROUGH THE BONNEVILLE
CONTRACT AN ADMISSION FREE --
EMISSION FREE.
>> YOU MENTIONED A BENEFIT OF
PURCHASING POWER FROM BPA , AS
A PUBLIC UTILITY PROVIDER, WE
CAN PURCHASE THAT POWER AT
COST. HOW ARE WE PASSING THAT
COST SAVINGS ONTO OUR OWN
CUSTOMERS?
>> THE LOW-COST WE ARE ABLE
TO GET POWER FROM BPA , IS
PASSED ONTO OUR CUSTOMERS AND
THAT IS A REASON SEATTLE HAS
THE RATES AS LOW AS WE DO. THE
POWER WE GET FROM BONNEVILLE
IS LOW-COST AND WHAT WE GET
FROM OUR OWN FACILITIES IS
RELATIVELY LOW COST COMPARED TO
OTHER UTILITIES ACROSS THE
COUNTRY WHO MAY HAVE COAL OR
NATURAL GAS. IT IS A FACTOR IN
SEATTLE HAVING LOW RATES
COMPARED TO OTHER URBAN AREAS
ACROSS THE COUNTRY.
>> I WILL SEE IF MY COLLEAGUES
HAVE ANY COMMENT OR QUESTIONS.
>> ARE THERE ANY OTHER
QUESTIONS OR COMMENTS?
>> I GUESS, TWO THINGS, TALK
ABOUT -- YOU MENTIONED
MULTILATERAL NEGOTIATIONS WITH
100 OR SO OTHER CITIES . TALK
ABOUT THAT PROCESS AND WHEN YOU
ANTICIPATE -- IT SOUNDS LIKE ,
IF YOU WILL BE COMING BEFORE US
NEXT YEAR TO SIGN THE CONTRACT,
THAT IS WELL UNDERWAY ALREADY.
CAN YOU TALK ABOUT WHERE THAT
PROCESS IS HEADED? AND, YOU
MENTIONED, I THINK YOU SAID YOU
WILL BE COMING BACK TO TALK
ABOUT THE WHOLESALE MARKET
RISK. INTERESTED TO KNOW HOW
THAT ISSUE PLAYS INTO THE
CONTRACT NEGOTIATIONS.
>> ON THE TIMELINE , THIS
GRAPHIC SHOWS THE PROVIDER
CHOICES, THE MULTIPARTY
PROCESS TO DETERMINE WHAT THEY
WILL OFFER. IT HAS BEEN ONGOING
FOR AT LEAST THREE YEARS TO
SET UP THE NEGOTIATIONS, THE
PROCESS I TRY TO AVOID
NEGOTIATION BECAUSE IT IS A
STAKEHOLDER DRIVEN PROCESS, THE
BONNEVILLE POWER ADMINISTRATION
ADMINISTRATOR GETS TO ISSUE A
DECISION ON WHAT TO OFFER. I
MENTIONED, 130 DIFFERENT
PEOPLE, BUT THE WORK FOR SOME
SMALL UTILITIES IS DONE
PRIMARILY THROUGH TRADE
ORGANIZATIONS. THAT PROCESS IS
LARGELY THROUGH AN AGGREGATION
OF TRADE ORGANIZATIONS
REPRESENTING A LARGE VOLUME OF
THOSE CUSTOMERS. AND UTILITIES
LIKE SEATTLE CITY LIGHT AND
OTHER PUBLIC PREFERENCE
CUSTOMERS, POWER CUSTOMERS,
ADVOCATING FOR THEIR OWN
INTERESTS.
>> THE WHOLESALE RISK POLICY,
IT RELATES TO BONNEVILLE IN
BOTH HAVE TO DO WITH OUR POWER
SUPPLY AND HOW WE INTERACT IN
THE WHOLESALE MARKETS. IT IS
MORE GENERALLY ABOUT THE
RESOLUTION THAT IS CURRENTLY
IN PLACE. IT HAD A PRETTY HIGH
ADMINISTRATIVE LIFT FOR COUNCIL
AND COUNCIL STAFF BECAUSE ,
COMING OUT OF THE WESTERN
ENERGY CRISIS IN 2002 ,
COUNCIL FELT LIKE THEY NEEDED
TO HAVE REPORTING AND OVERSIGHT
, APPROVAL OF POLICIES, CITY
LIGHT DID NOT HAVE A RISK
FUNCTION, OUR WHOLESALE TEAM
WAS A LOT SMALLER. THE
RESOLUTION CALLED FOR A LOT OF
COUNCIL OVERSIGHT OVER THE
OPERATIONS OF CITY LIGHT IN
THAT SPACE . OVER THE LAST TWO
DECADES, AS WE HAVE MATURED
AND THINGS HAVE EVOLVED, THE
CITY COUNCIL HAS MANY OTHER
HIGH RISK ISSUES, INTERESTING
POLICY CHALLENGES, YOU ARE
TAKING ON , WE ARE MAKING AN
ADJUSTMENT SO IT BETTER
REFLECTS THE LANDSCAPE WE ARE
OPERATING IN IN 2024.
>> WE MENTIONED THE TRADE
ASSOCIATION , THE PUBLIC POWER
COUNCIL IS THE TRADE
ASSOCIATION THAT WE PARTICIPATE
WITH ALONG WITH OTHER
CUSTOMERS OF BONNEVILLE WHO
HAVE QUARTERLY POLICYMAKER
FORUMS WHICH ARE VIRTUAL. YOU
OR YOUR STAFF ARE WELCOME TO
JOIN, I SEND THAT INFORMATION
OUT TO ERIC TO MAKE SURE YOU
GET THAT IF YOU WANT TO TUNE IN
TO SOME OF THESE DECISIONS.
TOWARDS POLICYMAKERS WHO WILL
NOT BE INVOLVED IN THE
DAY-TO-DAY OPERATIONS, IT IS AT
THE RIGHT LEVEL TO HELP YOU
STAY ALONG WITH THESE
DECISIONS AS THEY ARE BEING
MADE.
>> THAT IS HELPFUL. THANK YOU .
>> ANY OTHER QUESTIONS ?
CONTINUE?
>> THANK YOU, MADAM CHAIR. WE
WILL INCREASINGLY RELY ON WIND
AND SOLAR SOURCES TO MEET OUR
DEMANDS. AND, SO, CURIOUS TO
BETTER UNDERSTAND, BEYOND THE
2028 NEGOTIATIONS WITH BPA ,
HOW ARE WE PLANNING FOR THAT,
WHEN IS THAT NEED, LIKE, WHEN
IS THAT GOING TO BE
ANTICIPATED ? IS THERE A
DROPDEAD DATE? HOW ARE YOU
PLANNING FOR THAT RIGHT NOW?
>> I CAN GO TO PROCESS AND IN
QUANTITIES AND TIMELINES . THE
PROCESS FOR UNDERSTANDING OUR
RESOURCE NEEDS IS TO BE
INTEGRATED RESOURCE PLANNING
PROCESS WHICH WE GO THROUGH
EVERY TWO YEARS . WE AT LEAST
UPDATE OUR RESOURCE PLANS TO
REFLECT OUR CURRENT LOAD
PLANS, THE FORECAST ,
UNDERSTANDING THE DEMAND NEEDS
OF THE CITY AND TRYING TO FIND
THE BEST PORTFOLIO OF
RESOURCES TO SERVE THAT
CHANGING LOAD. OUR LAST UPDATE
WAS IN 2022 AND WERE WORKING
ON A PROGRESS REPORT TO TAKE TO
COUNCIL THIS YEAR. IN THAT 2022
REPORT, WE IDENTIFIED THE NEED
FOR 400 MEGAWATTS OF A
COMBINATION OF WIND AND SOLAR
RESOURCES BY 2030 AND DO EXPECT
, AND HAVE SEEN OUR LOAD
FORECAST INCREASE SINCE WHEN
WE DID THE STUDY IN 2022 . WE
ARE EXPECTING THAT NEED FOR
RESOURCES WILL INCREASE BEYOND
THAT 400 MEGAWATTS IN THE NEXT
UPDATE.
>> CAN I FOLLOW-UP? IN 2021 ,
AND 2022, LOAD WAS DOWN BECAUSE
EVERYBODY WAS AT HOME AND MOST
POWER IS FOR COMMERCIAL. DO I
UNDERSTAND THAT CORRECTLY?
>> TWO THIRDS .
>> IT WAS DOWN BECAUSE OF THE
PANDEMIC , NOBODY WAS GOING
SHOPPING OR DOING ANYTHING
ELSE. I AM ASSUMING THINGS ARE
PICKING BACK UP. CAN YOU TALK
ABOUT THAT AND HOW WE ARE
BACK?
>> I WILL SPEAK ANECDOTALLY
AND, TO OUR OVERARCHING TRENDS
COME IN THIS MOST RECENT
WINTER EVENT, A PEAK LOAD OF
2027 MEGAWATTS , THAT IS THE
HIGHEST PEAK WE HAVE SEEN SINCE
1990.
>> OVER MARTIN LUTHER KING DAY
WEEKEND WHEN IT WAS REALLY
COLD.
>> AND THAT IS AN INDICATION OF
THE ELECTRIFICATION OF SOME
LOADS IN THE CITY AND INCREASED
ELECTRICAL HEATING LOADS IN THE
CITY. OUR LOAD FORECAST TEAM
DOES A LOT OF WORK TO
UNDERSTAND AND USES WITHIN THE
CITY AND THEY HAVE AN ONGOING
FORECAST TO UNDERSTAND , AS WE
HAVE THE BUILDING
ELECTRIFICATION AND
TRANSPORTATION ELECTRIFICATION,
HOW THAT PEAK AND LOAD WILL
CONTINUE TO GROW IN THE FUTURE.
I MENTIONED THE STAT, AN
INCREASE IN PEAK LOADS OF
ABOUT 20% BY 2035. I
MENTIONED 2000 MEGAWATTS, WE
EXPECT TO HAVE A PEAK OF 2500
MEGAWATTS, OR 2400 TO 2500 ,
WE FORECAST WITH PRECISION BUT
IT IS IN THE RANGE. THAT IS A
SIGNIFICANT INCREASE ON THE
ELECTRIC NEEDS, ENERGY NEEDS
CITY LIGHT SERVES IN THE CITY
WHICH DRIVES TO THE NEED FOR
TRANSMISSION TO MAKE SURE WE
CAN GET THOSE RESOURCES WE ARE
IDENTIFYING THROUGH THOSE PLANS
TO SERVE THE CITY.
>> YOU MENTIONED THAT 10% --
WELL, WE WILL GROW BY 10% ,
NEED TO GROW OUR SOURCING BY
10% TO MEET THE DEMAND. BUT ,
TO MEET THE DEMAND SPIKE
FORECAST, 20% , THERE IS A
DELTA. CAN YOU BETTER DESCRIBE
OR HELP ME BETTER UNDERSTAND,
RATHER , WHAT SPECIFICALLY IS
DRIVING -- WHAT FACTORS ARE
SPECIFICALLY DRIVING THAT
DEMAND SPIKE? AND ACCOUNT FOR
THE VARIANCE? ALSO, FOR
EXAMPLE , I UNDERSTAND, ON ONE
OF THE OTHER SLIDES, THE TECH
INDUSTRY IS DRIVING THE
OVERALL DEMAND WHAT IS
ACCOUNTING FOR THAT DELTA
SPECIFICALLY? IS IT , FOR
EXAMPLE, INCREASING RELIANCE ON
ELECTRIC HEATING SOURCES ? WHAT
OTHER FACTORS ARE DRIVING THAT?
>> ABSOLUTELY WHAT IS DRIVING
IT, LARGELY ELECTRIFICATION OF
BUILDINGS AND TRANSPORTATION.
MY ANALOGY THAT I WOULD DRAW ,
HAVE YOU EVER BEEN TO A WAVE
POOL? IF YOU ADD MORE WATER,
YOUR WAVES ARE BIGGER. THE 10%
IS HOW MUCH WATER IS IN THE
WAVE POOL, THE 20% RELATES TO
HOW BIG THE WAVES ARE BECAUSE
YOU HAVE A WATER. THE DELTA
IS YOUR DIFFERENCE. THAT IS
LARGELY DRIVEN BY BUILDING
ELECTRICIAN, HEATING IS A
DRIVER, THE PEAK IS ELECTRICAL
HEATING IN THE WINTER. WE ARE
SEEING AS PART OF OUR ENERGY
NEEDS, INCREASED PEAK IN THE
SUMME BECAUSE OF AIR
CONDITIONING LOADS INCREASING
>> ON THE ELECTRIFICATION OF
TRANSPORTATION , WE THINK ABOUT
INDIVIDUAL PASSENGER EVs, BUT
THE DRIVER, WASHINGTON STATE
FERRY SYSTEM, ELECTRIFYING THE
FAIRIES ACROSS THE SOUND, A
PARTNERSHIP WITH KING COUNTY
METRO TRANSIT FOR SEVERAL YEARS
AND THEY HAVE ELECTRIC TRANSIT
BUSES ON THE ROUTE. A
GROUNDBREAKING FOR THE ELECTRIC
INFRASTRUCTURE , CHARGING
INFRASTRUCTURE NECESSARY TO
CONTINUE THE COMMITMENT TO
FLEET ELECTRIFICATION. WE
HAVE TRUCKS AT THE PORT. WE
HAVE A NEW SHORE POWER
CONNECTION GOING IN AT PIER
66. THOSE USED TO BE, ECRU
SHIP IS NO PLUGGING IN FOUR OR
FIVE HOTELS , BECAUSE THEY'RE
SO BIG. WHEN THEY PLUG-IN , IT
IS A BIG SURGE ON THE SYSTEM
AND WE HAVE TO PLAN FOR THAT
LEVEL OF DEMAND EVEN THOUGH IT
IS NOT A CONSISTENT, 24/7
LOAD. WE ARE COMMITTED TO
REDUCING POWER MISSIONS,
EXCITING , BUT A CHALLENGE AS
AN ELECTRIC UTILITY TO MEET
THOSE GROWING LOADS ON OUR
SYSTEM.
>> THAT IS TERRIFIC. THANK YOU
FOR SHARING THAT. YES, THOSE
ARE ALL IMPORTANT SOURCES AS
WE GROW OUR EV CHARGING
INFRASTRUCTURES, PORT, BUSES
, BUT SINGLE OCCUPATION -- WE
WILL BE LOOKING FOR
OPPORTUNITIES TO MAKE
INVESTMENTS TO ALLOW FOR TESLA
AND PERSONAL VEHICLES -- SO,
I HOPE THAT IS PART OF
FORECASTING AS WELL ?
>> ABSOLUTELY.
>> THANK YOU.
>> GREAT. I HAVE A QUESTION,
RATES TO SEATTLE CITY LIGHT
WENT UP, 1% WAS CAUSED FROM BPA
, BECAUSE OF THE LOW DEMAND FOR
THE MARKET?
>> YES, THAT WAS ON THE BPA
CONTRACT BPA SETS THE RATES
AND WE HAVE A RATE PASS
THROUGH, BECAUSE IT IS
SOMETHING THAT NOBODY AT THE
CITY OF SEATTLE CAN CONTROL, WE
DO NOT HAVE A SPECIAL PROCESS
TO CHANGE THE RATES. WE HAVE A
PASS-THROUGH WHERE WE TAKE WHAT
WE BUDGETED FOR FOR BPA
CONTRACT COSTS , AND WHAT THE
CONTRACT COST COMES BACK AT,
AND PAT PASTOR RATE, THAT 1%
WAS FROM THAT. I BELIEVE IT
WAS DOUGLAS HAVING THE
OPPORTUNITY TO TAKE MORE POWER
FROM BONNEVILLE THEN WE
BUDGETED FOR A RATE PASS
THROUGH BUT IT MEANT THAT WE
WERE ABLE TO TAKE MORE OF THE
LOW-COST BPA POWER FROM THE
CONTRACT AND THAT IS WHAT
CAUSED THAT RATE INCREASE.
OVERALL , IT HELPS US KEEP OUR
COSTS DOWN, IF THAT MAKES
SENSE. INDIRECTLY HELP THE RSA
SURCHARGE GO AWAY FASTER.
>> CHEAPER FROM BONNEVILLE
THAN ON THE MARKET IF WE CAN
GET THAT POWER.
>> DO WE HAVE INFLUENCE ON THE
CHOICE FROM BONNEVILLE IN HOW
THEY WANT -- IN WHICH MARKET
THEY CHOOSE?
>> IT IS AN AREA WHERE WE
CONTINUE TO ADVOCATE FOR OUR
INTERESTS AND TRY TO WORK WITH
OUR PARTNERS IN THE REGION TO
MAKE SURE THAT CHOICE IS RECENT
AND ALIGNED WITH OUR INTERESTS.
WE DO NOT HAVE -- WE ARE ONE
OF 130, THE SECOND-LARGEST
POWER CUSTOMER OF BONNEVILLE
BUT WE ARE ADVOCATING AND TRY
TO ELEVATE OUR INFLUENCE IN
THAT PROCESS, BUT WE WILL NOT
DRIVE THEM TO A SPECIFIC
DECISION.
>> IN TERMS OF TRANSMISSION
SYSTEM EXPANSION, GENERATOR
INTERCONNECTION, HOW DOES THAT
AFFECT US IN SEATTLE OR WITH
SEATTLE CITY LIGHT?
>> 75% OF OUR POWER COMES
THROUGH THE TRANSMISSION SYSTEM
ON BONNEVILLE , THAT PERCENTAGE
IS LIKELY TO INCREASE AS WE
INCREASE RESOURCES TO SERVE OUR
LOAD FOR GROWTH. WE NEED
BONNEVILLE AS A PARTNER IN THE
REGION FOR TRANSMISSION TO
INVEST IN THE TRANSMISSION
INFRASTRUCTURE IN THE REGION TO
MAKE SURE WE CAN GET RESOURCES
FROM WIND AND SOLAR AND SERVE
LOAD IN SEATTLE. CRIMINAL
MAKING SURE THE RESOURCES
COST-EFFECTIVE AND INTERACT
WITH THE SYSTEM AND WE CAN GET
TRANSMISSION FROM THOSE SOURCES
TO OUR LOAD.
>> GREAT. ANY OTHER QUESTIONS?
OKAY, I LOOK FORWARD TO
SEEING YOU AT OUR NEXT MEETING
IN TWO WEEKS TO LEARN MORE
ABOUT MARKET RISK.
>> THANKS.
>> WE HAVE REACHED THE END OF
THE AGENDA. ANY OTHER BUSINESS
LIKE HEARING NO OTHER
BUSINESS, WE ARE ADJOURNED.
THANK YOU.