>>> GOOD MORNING. THE MARCH
15TH, 2024 MEETING OF THE
SUSTAINABILITY CITY LIGHT, ARTS
AND CULTURE COMMITTEE WILL COME
TO ORDER. IT IS 9:32 A.M. I
AM TANYA WOO, CHAIR OF THE
COMMITTEE. WILL THE COMMITTEE
CLERK PLEASE CALL ROLL?
>> COUNCILMEMBER MOORE.
>> PRESENT.
>> COUNCILMEMBER MORALES .
>> HERE.
>> COUNCILMEMBER SAKA.
>> HERE.
>> COUNCILMEMBER STRAUSS.
>> PRESENT IT. CHAIR WOO.
>> PRESENT.
>> THERE OUR MEMBERS PRESENT.
>> IF THERE ARE NO OBJECTIONS,
THE AGENDA WILL BE ADOPTED.
HEARING NO OBJECTIONS, THE
AGENDA IS ADOPTED. WE WILL NOW
OPEN THE HYBRID PUBLIC COMMENT
PERIOD. PUBLIC COMMENTS SHOULD
RELATE TO ITEMS ON TODAY'S
AGENDA AND WITHIN THE PURVIEW
OF THIS COMMITTEE. CLERK, HOW
MANY SPEAKERS ARE SIGNED UP
TODAY?
>> CURRENTLY WE HAVE NO IN
PERSON SPEAKERS AND NO REMOTE
SPEAKERS.
>> GREAT. WE WILL PROCEED TO
OUR ITEMS OF BUSINESS. MEMBERS
OF THE PUBLIC ARE ENCOURAGED TO
EITHER SUBMIT AN PUBLIC COMMENT
ON THE SIGN IN CARDS AVAILABLE
NEAR THE PODIUM OR E-MAIL THE
COUNCIL AT COUNCIL CAP
SEATTLE.GOV. WE WILL NOW MOVE
ON TO THE ITEM OF BUSINESS.
WILL THE CLERK PLEASE READ
ITEMS ONE THROUGH EIGHT INTO
THE RECORD.
>> AGENDA ITEMS ONE THROUGH
EIGHT, APPOINTMENT 2766 THROUGH
APPOINTMENT 2773. THE
APPOINTMENT OF SAMANTHA WONG AS
THE DISTRICT BOARD FOR A TERM
TO NOVEMBER 30TH 2024. THE
REAPPOINTMENT OF ADRIAN LAM AS
A MEMBER OF THE DISTRICT BOARD
FOR US DECEMBER 31st, 2025.
THE APPOINTMENT REAPPOINTMENTS
OF MEGAN KISS GOOD ON, DIANA
GARCIA, YOLANDA SPENCER, LINDA
CHAVEZ LOWERY AND RIKKI GROSS
AS MEMBERS OF THE COMMISSION
FOR A TERM DECEMBER 31st, 2025
FOR BRIEFING, DISCUSSION OF
POSSIBLE VOTE.
>> ALL EIGHT ITEMS HAVE BEEN
READ INTO THE RECORD. WE WILL
FIRST CONSIDER A VOTE ON THE
TWO APPOINTMENTS DUE TO THE
BOARD FOLLOWED BY THE
CONSIDERATION OF THE SIX
APPOINTMENTS TO THE SEATTLE
ARTS COMMISSION. THE
DEPARTMENT CORN AIDERS AND
NOMINEES FOR THE INTERNATIONAL
SOCIAL REVIEW DISTRICT BOARD
HAVE JOINED US AT THE TABLE.
WHEN YOUR READY, PLEASE
INTRODUCE YOURSELVES, YOUR
COMMISSION AND WE WILL LEARN
MORE ABOUT THE TWO NOMINEES.
>> THANK YOU AND GOOD MORNING
COUNCILMEMBERS ON THIS
BEAUTIFUL FRIDAY. I'M REBECCA
FREESE DEAD AND WORK WITH THE
DEPARTMENT OF NEIGHBORHOODS
HISTORIC PRESERVATION PROGRAM.
AND I COORDINATE TWO OF THE
CITY'S EIGHT HISTORIC DISTRICT
SO THOSE ARE THE INTERNATIONAL
SPECIAL REVIEW DISTRICT WHICH
WE ARE HERE TO DISCUSS TODAY
AND THE COLUMBIA CITY LANDMARK
DISTRICT. THE INTERNATIONAL
SPECIAL REVIEW DISTRICT IS, HAS
A BOARD OF SEVEN MEMBERS MADE
UP OF INDIVIDUALS WHO ARE
ELECTED. FIVE OF WHOM ARE
ELECTED THROUGH THE COMMUNITY,
TO THE PROCESS OF THE
COMMUNITY-BASED ELECTION AND
TWO MEMBERS WHO ARE APPOINTED
BY CITY COUNCIL -- AXES BECOME
APPOINTED BY THE MAYOR'S
OFFICE AND CONFIRMED BY
COUNSEL. AND SO THE FIVE
ELECTED MEMBERS CONSIST OF
BUSINESS OWNERS, PROPERTY
OWNERS AND THE AT-LARGE SEAT.
AND THE TWO APPOINTED MEMBERS,
WE RESERVE FOR ARCHITECTS AND
INDIVIDUALS WHO HAVE THAT
TECHNICAL EXPERIENCE TO BRING
TO THE BOARD. SO THE TWO
CANDIDATES TODAY ARE SLATED TO
FILL POSITION THREE WHICH IS
ACTUALLY AN ELECTED SEAT BUT
THE SEA BECAME VACANT AT THE
END OF 2023 AND IN ACCORDANCE
WITH THE BOARD'S RULES. THE
MAYOR WILL APPOINT A
REPLACEMENT TO FULFILL THE
REMAINDER OF THE TERM WHICH
RUNS THROUGH NOVEMBER OF THIS
YEAR. AND THEN, POSITION SEVEN,
WHICH IS AN APPOINTED SEAT .
AND THIS IS A POSITION FOR
REAPPOINTMENT. THE BOARD IS
CHARGED WITH REVIEWING
APPLICATIONS FOR CHANGES OF
USE. THE UNDERLYING PRINCIPLE
USE OF THE SPACE WITHIN THE
BOUNDARIES OF THE HISTORIC
DISTRICT AND FOR ANY EXTERIOR
ALTERATIONS OR SITE ALTERATIONS
FOR PROPERTIES WITHIN THE
DISTRICT. AND THAT INCLUDES
PUBLIC RIGHTS-OF-WAY AND OPEN
SPACES IN ADDITION TO PRIVATE
PROPERTY.
>> I WANT TO INTRODUCE SAMANTHA
WONG. SHE IS BEING APPOINTED TO
THE POSITION THREE. SHE IS AN
ARCHITECT WITH FIVE YEARS OF
WORKING EXPERIENCE IN A BROAD
RANGE OF PROJECTS AND HAS
VOLUNTEER EXPERIENCE WORKING IN
THE DISTRICT. AND THEN, ADRIAN
LAM WHO HAS SERVED ON THE BOARD
FOR THE LAST TWO YEARS AND IS
CURRENTLY SERVING AS BOARD
CHAIR. SO THIS WOULD BE AN
APPOINTMENT FOR A SECOND TWO
YEAR TERM. AND ADRIAN IS ALSO
AN ARCHITECT WITH OVER 20 YEARS
OF EXPERIENCE. AND I WILL TURN
IT OVER TO MS. WONG .
>> I'M SAMANTHA AND I'M
EXCITED TO BE HERE IN THE
POSITION. I AM IN THE
HISTORIC PRESERVATION OF THE
CHINATOWN INTERNATIONAL
BUSINESS DISTRICT. I LOOK
FORWARD TO SERVING ON THE
BOARD.
>> GOOD MORNING COUNCILMEMBERS.
I'M ADRIAN LAM. AS REBECCA
SAID, I HAVE FIVE YEARS OF
EXPENSE WORKING IN SEATTLE AND
HAVE BEEN SERVING ON THE BOARD.
MY PRIMARY INTEREST REALLY IS
TO PROVIDE RELEVANT COMMENTS TO
EXPEDITE THE PROCESS THAT
APPLICANTS, -- THAT WAY, WE
REPRESENT BOTH THE COMMUNITY
AND ALSO, IT WOULD BE A NICE
COUNTERPOINT TO THE
PROFESSIONALS. THANK YOU .
>> THANK YOU FOR BEING HERE
TODAY. COLLEAGUES, ANY
QUESTIONS OR COMMENTS?
>> GREAT. I ALSO SERVED ON
THE BOARD AS I TOLD YOU EARLIER
AND I BELIEVE I WAS ON BOTH
SIDES WORKING WITH THE BOARD
AND REDEVELOPING AND THEN LATER
SERVED. I UNDERSTAND THE
IMPORTANCE OF PRESERVING ASIAN
CULTURE IN THE DISTRICT AND
MAKING SURE THERE IS MEANINGFUL
DEVELOPMENT AND COMMUNITY
OUTREACH AS WELL. I MOVE THAT
THE SPECIAL -- I MOVE THAT THE
COMMITTEE RECOMMEND
CONFIRMATION APPOINTMENTS 2772,
AND 2773, TO THE INTERNATIONAL
SPECIAL REVIEW DISTRICT BOARD.
IS THERE A SECOND?
>> SECOND.
>> IT IS MOVED AND SECONDED TO
CONFIRM THE APPOINTMENTS. ARE
THERE ANY FURTHER COMMENTS?
>> WILL THE CLERK CALL ROLL ON
THE CONFIRMATION OF THE
APPOINTMENTS.
>> COUNCILMEMBER MOORE.
>> AYE.
>> COUNCILMEMBER MORALES.
>> YES.
>> COUNCILMEMBER SAKA.
>> AYE.
>> COUNCILMEMBER STRAUSS.
>> YES.
>> CHAIR WOO.
>> YES, IT.
>> FIVE IN FAVOR AND ZERO
POST.
>> THE MOTION CARRIES IN THE
RECOGNITION OF CONFIRMATION
WILL BE SENT TO THE SEATTLE
CITY COUNCIL. THANK YOU.
>> THANK YOU VERY MUCH. NOW
WE WILL DISCUSS THE SIX
APPOINTMENTS TO THE SEATTLE
ARTS COMMISSION. WILL THE
DEPARTMENT COORDINATORS AND
NOMINEES FOR THE SEATTLE ARTS
COMMISSION PLEASE JOIN US AT
THE TABLE? WHEN READY, PLEASE
INTRODUCE YOURSELF, YOUR
COMMISSION AND THEN WE WILL
LEARN MORE ABOUT THE SIX
NOMINEES.
>> GOOD MORNING, CHAIR WOO AND
COUNCILMEMBERS. MY NAME IS
ALLIE LEE. AND THE EXECUTIVE
ASSISTANT AT THE DEPARTMENT
LIAISON TO THE SEATTLE ARTS
COMMISSION.
>> GOOD MORNING. I AM THE
INTERIM DEPUTY DIRECTOR FOR THE
OFFICE OF ARTS AND CULTURE.
>> I WOULD LIKE TO START WITH
A BRIEF OVERVIEW OF THE SEATTLE
ARTS COMMISSION. THE SEATTLE
ARTS COMMISSION IS COMPRISED OF
16 COMMUNITY MEMBER VOLUNTEERS
APPOINTED BY THE MAYOR AND THE
CITY COUNCIL AND THEY SUPPORT
THE WORK OF CULTURE. COMMISSION
MEMBERS INCLUDE ARTIST, ARE
PROFESSIONALS AND
ADMINISTRATORS AND CITIZENS
WITH STRONG CONNECTIONS TO THE
SEATTLE ARTS COMMUNITY. THE
MAYOR APPOINTS SEVEN OF THE
COMMISSIONERS. THE CITY COUNCIL
APPOINTS SEVEN. THE COMMISSION
ITSELF APPOINTS ONE MEMBER AND
THE 16TH NUMBER IS SELECTED
THROUGH THE YMCA GET ENGAGED
PROGRAM. THE SEATTLE ARTS
COMMISSION SUPPORTS THE CITY BY
ADVOCATING FOR ARTS POLICY,
CREATING ACCESS FOR EQUITABLE
PARTICIPATION IN THE ARTS AND
FOSTERING ARTS ENGAGEMENT FOR
ALL RESIDENTS. THERE ARE THREE
SUBCOMMITTEES OF THE ARTS
COMMISSION WHICH ARE THE
FACILITIES AN EQUITABLE
DEVELOPMENT COMMITTEE, THE
CULTURAL INVESTMENTS COMMITTEE
AND THE PUBLIC ART ADVISORY
COMMITTEE.
>> THE FIRST COUNSEL
APPOINTMENT CANDIDATE IS MEGAN
KISKADDON. MEGAN IS THE
EXECUTIVE DIRECTOR OF ON THE
BOARDS SEATTLE'S HOME FOR
CONTEMPORARY PERFORMANCE AND
PREVIOUSLY, SHE LED THE
EDUCATION AND COMMUNITY
ENGAGEMENT DIVISION AT SAN
FRANCISCO MUSEUM OF MODERN ART.
SHE ALSO SERVED ON THE SAN
FRANCISCO ARTS COMMISSION. SHE
HAS QUICKLY IMMERSED HERSELF IN
THE SEATTLE ARTS COMMUNITY AND
HAS DEVELOPED A REPUTATION AS
AN ARTS LEADER TO WATCH AND
COMMISSIONERS BELIEVE SHE WILL
BRING A FRESH PERSPECTIVE TO
THE SEATTLE ARTS COMMISSION FOR
I BELIEVE AS WELL.
>> THE SYSTEM WON'T ALLOW ME
TO TURN ON THE VIDEO BUT I
WANTED TO SAY HELLO AND THANK
YOU SO MUCH FOR YOUR
CONSIDERATION. HELLO
EVERYONE. THANK YOU FOR YOUR
CONSIDERATION. I LOOK FORWARD
TO SERVING THE CITY OF SEATTLE
THAT I NOW CALL HOME. AND
JUST ADVOCATING FOR THE ARTS
AND THE WAYS IN WHICH THEY
ENRICH OUR LIVES.
>> THANK YOU, MEGAN. THE NEXT
COUNSEL APPOINTMENT IS DIANA
GARCIA. DIANA GARCIA IS AN
INTERNATIONAL PERFORMER AND
BALLET AND MODERN DANCE ARE OF
MEXICAN DESCENT AND HAS A
FIERCE TALENT FOR CENTERING THE
MOVEMENT ARTS FOR AN INSTRUMENT
FOR HEALING AND TRANSFORMATIVE
PRACTICE. OUR COMMISSIONERS
FEEL HER ADVANCED UNDERSTANDING
OF THE SHARED HUMAN CONDITION
WILL SUPPORT THE COLLABORATIVE
WORK AND VISION OF THE SEATTLE
ARTS COMMISSION.
>> I BELIEVE DIANA IS JOINING
US A BIT LATER. WE WILL MOVE
HER TO THE END OF THE
CONVERSATION AND PRESENTATION.
>> NEXT IS COMMISSION
APPOINTMENT YOLANDA SPENCER.
YOLANDA SPENCER IS A MEMBER OF
THE CONFEDERATED TRIBES OF
YAKIMA NATION IN WASHINGTON AND
SHE IS A COMMUNITY SERVICES
DIRECTOR AND PROGRAM DIRECTOR
FOR THE REENTRY PROGRAM AT THE
CHIEF SEATTLE CLUB. YOLANDA HAS
EMBRACED ART AND ART INNOVATION
IS A POWERFUL TOOL FOR RE-
ENGAGEMENT AND HEALING THE
COMMUNITY SHE SERVES AND THE
SEATTLE ARTS COMMISSION WOULD
LIKE TO APPOINT YOLANDA TO THE
COMMISSION APPOINTED SEAT.
>> GOOD MORNING EVERYONE. ON
YOLANDA SPENCER. AND VERY
HONORED TO BE SELECTED TO JOIN
THIS GREAT COMMITTEE OF PEOPLE
TO NOT ONLY REPRESENTS OUR CITY
BUT THE PEOPLE THAT WE SERVE
DAILY AND I WOULD BE HONORED TO
BE PART OF THE ARTS COMMISSION.
THANK YOU.
>> THANK YOU, YOLANDA.
>> THE NEXT APPOINTMENT, NEXT
COUNSEL APPOINTMENT CANDIDATE
IS JOEL BARRAQUIEL TAN . JOEL
BARRAQUIEL TAN IS THE EXECUTIVE
DIRECTOR OF THE WING LUKE
MUSEUM OF THE ASIAN-PACIFIC
EXPERIENCE AND PREVIOUSLY THE
DIRECTOR OF COMMUNITY
ENGAGEMENT AT THE CENTER FOR
ARTS AND SAN FRANCISCO. HIS
DYNAMIC CAREER HAS REFLECTED
HIS LIFELONG COMMITMENT TO
RACIAL EQUITY, SOCIAL JUSTICE
AND CREATIVE EXPRESSION,
EVIDENT IN HIS THREE PLUS
DECADES OF EXPERIENCE AND
CULTURE ADVOCACY AND CULTURE
LEADERSHIP IN THE ARTS, PUBLIC
HEALTH, CIVIC ENGAGEMENT,
COMMUNITY DEVELOPMENT AND
SUSTAINABLE TOURISM AND THE
COMMISSIONERS BELIEVE THAT HE
WILL BE AN ASSET TO THE SEATTLE
ARTS COMMISSION.
>> YOU ARE ON MUTE.
>> I WANTED TO SAY HAPPY FRIDAY
TO EVERYONE. JOEL BARRAQUIEL
TAN. IT IS AN HONOR TO SERVE IN
THE INTEREST OF ARTS AND
CULTURE. WE VERY MUCH BELIEVE
THAT THE WORK CONTINUOUSLY
DRIVES AND CREATES BETTER
HEALTH, BETTER ECONOMY AND
BETTER GOVERNMENT. AND SO I'M
SUPER EXCITED PARTICULARLY TO
CHAMPION THE CHINATOWN
INTERNATIONAL DISTRICT
NEIGHBORHOOD . THANK YOU.
>> THANK YOU. THE NEXT
APPOINTMENT IS LINDA
CHAVEZ-LOWRY. LINDA IS
DIRECTOR OF OPPORTUNITIES AT
SEATTLE MAGAZINE , EXECUTIVE
DIRECTOR OF ARTS UNLIMITED AND
LEADS TO COMMUNICATION AND PR
FIRM GSA SOLUTIONS.
COMMISSIONERS FEEL HER FOCUS ON
ENHANCING RELATIONSHIPS THROUGH
CONNECTIONS WITH THE PRIVATE
NONPROFIT SECTOR AND HER
INITIATIVES PUT IN DIVERSE AND
EQUITABLE COMMUNITIES AND WOULD
BE AN ASSET TO THE SEATTLE ARTS
COMMISSION. LINDA.
>> THANK YOU SO MUCH. I AM
FROM DISTRICT ONE AND ROB SAKA
IS MY COUNCIL REPRESENTATIVE. I
WOULD ALSO LIKE TO GIVE A WARM
WELCOME TO THE NEW
COUNCILMEMBERS, TANYA WIN --
WOO, KATHY MOORE, BOB KETTLE
AND JOY HOLLINGSWORTH ENDED
GOING TO OUR OTHER
COUNCILMEMBERS, SARA NELSON,
DAN STRAUSS AND TAMMY MORALES.
I'M DEEPLY COMMITTED TO BEING
OF SERVICE TO THE ARTISTIC
COMMUNITY OF OUR CITY AS AN ART
COMMISSIONER. MY GOAL IS TO
MAKE ART ACCESSIBLE TO EVERYONE
BY INTEGRATING IT INTO OUR
DAILY LIVES FROM THE PUBLIC
INSTALLATIONS TO COMMUNITY ART
PROJECTS. AND I WILL BE A
STRONG ADVOCATE FOR LOCAL
ARTISTS BY PROVIDING THEM WITH
THE NECESSARY SUPPORT AND
RESOURCES TO FLOURISH.
ADDITIONALLY, I WILL PROMOTE
COOPERATION AND COMMUNICATION
AMONG THE CREATIVE COMMUNITY
AND THE PREPARATIONS,
EDUCATIONAL INSTITUTIONS AND
COMMUNITY GROUPS TO TACKLE
SOCIETAL PROBLEMS. I WILL ALSO
PRIORITIZE EDUCATION AND
ENCOURAGE YOUNG ARTISTS TO
EXPLORE THEIR TALENTS AND
EXPRESS THEMSELVES FREELY. AS
A BRAIN ANEURYSM SURVIVOR, I
HAD TO MAKE ADJUSTMENTS TO MY
LIFESTYLE IN ORDER TO ATTEND
THEATER PRODUCTIONS AND MUSIC
CONCERTS. HOWEVER, I'M SO
GRATEFUL FOR THE EFFORTS THAT
THE COMMUNITY, THE ART
COMMUNITY, HAS MADE IT TO BE
MORE AWARE OF THE SENSITIVITIES
THAT A NARROW DIVERGENT PERSON
MIGHT HAVE AND IT IS HEARTENING
TO SEE SOME OF THESE IN THE
AUDIENCE. IT IS I BELIEVE MY
DIVERSE PERSPECTIVE WOULD BE A
VALUABLE ADDITION TO THE ARTS
COMMISSIONS. THANK YOU.
>> THANK YOU, LINDA .
>> THE NEXT IS COUNSEL
REAPPOINTMENT RICKY GRABOSKI.
RICKY GRABOSKI IS THE EXECUTIVE
DIRECTOR OF THE ALL AGES MUSIC
VENUE PROJECT AND A COMMUNITY
CENTER IN SEATTLE. RICKEY HAS
DEDICATED HIS TIME TO
ADVOCATING FOR THE DIY SEEN AND
COMMUNITY CENTER CULTURED
SPACES WITH ALL AGES
PROGRAMMING AT THE INTERSECTION
OF ART AND ACTIVISM. HE ALSO
CURRENTLY SERVES AS THE CHAIR
OF THE FACILITIES AND EQUITABLE
DEVELOPMENT COMMITTEE OF THE
COMMISSION AND IS SEEKING
REAPPOINTMENT. I BELIEVE RIKKI
IS NOT ABLE TO JOIN US TODAY.
>> THANK YOU FOR THOSE WHO ARE
ABLE TO JOIN US. COLLEAGUES,
ANY QUESTIONS OR COMMENTS?
>> I AM SO HONORED AND PROUD
TO SEE SO MANY DISTINGUISHED
PEOPLE WHO ARE WILLING TO SERVE
ON THE ARTS COMMISSION. IT IS
VERY IMPORTANT ROLE IN THE
CITY. I MOVE THAT THE
COMMITTEE RECOMMEND
CONFIRMATION OF APPOINTMENTS
2766, THROUGH 2771, TO THE
SEATTLE ARTS COMMISSION. IS
THERE A SECOND?
>> SECOND.
>> IT IS MOVED AND SECONDED TO
CONFIRM THE APPOINTMENTS. ARE
THERE ANY FURTHER COMMENTS?
>> WILL THE CLERK PLEASE CALL
ROLL ON THE CONFIRMATION OF THE
APPOINTMENTS.
>> COUNCILMEMBER MOORE.
>> AYE.
>> COUNCILMEMBER MORALES.
>> YES .
>> COUNCILMEMBER SAKA.
>> AYE.
>> COUNCILMEMBER STRAUSS.
>> YES.
>> CHAIR WOO.
>> YES.
>> FIVE IN FAVOR AND ZERO
OPPOSED TO.
>> THE MOTION CARRIES AND THE
RECOMMENDATIONS THAT THE
WOMEN'S BE CONFIRMED WILL BE
SENT TO THE CITY COUNCIL. THANK
YOU.
>> WE WILL NOW MOVE ON TO THE
NEXT ITEM OF BUSINESS. WILL THE
CLERK READ THE SHORT TITLE OF
ITEM NINE INTO THE RECORD?
>> AGENDA ITEM NUMBER NINE, A
RESOLUTION RELATING TO THE CITY
LIGHT DEPARTMENT ENDORSING CITY
LIGHT'S WHOLESALE ENERGY RISK
MANAGEMENT POLICY FOR BRIEFING
AND DISCUSSION.
>> THANK YOU. OUR PRESENTERS
ARE CURRENTLY JOINING US AT THE
TABLE. WHEN READY, PLEASE
SHARE YOUR PRESENTATION AND
INTRODUCE YOURSELF AND BEGIN.
>> GOOD MORNING. I'M DAWN
LINDELL.
>> ON THE INTERIM GENERAL
MANAGER AND CEO FOR SEATTLE
CITY LIGHT.
>> I'M THE DIRECTOR OF
AFFAIRS AT SEATTLE CITY LIGHT.
>> KIRSTY GRAINER, CITY LIGHT
CHIEF FINANCIAL OFFICER.
>> SIOBHAN DOHERTY, DIRECTOR
OF THE MANAGEMENT DIVISION AT
SEATTLE CITY LIGHT.
>> RAMAN VISHWANATHAN,
DIRECTOR AT SEATTLE CITY LIGHT.
>> GOOD MORNING. ERIC
MCCONAUGHEY, COUNSEL CENTRAL
STAFF.
>> OKAY. WE WILL DIVE RIGHT IN.
I'M SO PLEASED TO JOIN YOU
THIS MORNING AT MY VERY FIRST
COMMITTEE MEETING AS THE
INTERIM GENERAL MANAGER AND CEO
OF SEATTLE CITY LIGHT. I LOOK
FORWARD TO MEETING WITH EACH OF
YOU INDIVIDUALLY PRIOR TO THE
CONFIRMATION PROCESS AT
COUNCIL. BUT I WOULD LIKE TO
ADD JUST A FEW REMARKS ABOUT MY
BACKGROUND AND INTEREST IN
SERVING AS GENERAL MANAGER OF
CITY LIGHT. I BRING MORE THAN
20 YEARS OF EXPERIENCE IN THE
UTILITY INDUSTRY. MOST
RECENTLY, I SERVED AS THE
GENERAL MANAGER IN THE CEO ROLE
AT BURBANK, WATER AND POWER IN
THE MEDIA CAPITAL OF THE WORLD
AND SOUTHERN CALIFORNIA.
PREVIOUSLY, I WAS WITH WESTERN
AREA POWER ADMINISTRATION WHICH
PROVIDES HYDROELECTRIC POWER
GENERATED BY 57 FEDERAL AREAS
OF 15 STATES IN THE WEST.
THERE I SERVED AS CHIEF
INFORMATION OFFICER AND THEN
CHIEF OPERATING OFFICER AND LED
TWO OF THE MULTISTATE REGIONAL
UTILITIES. PRIOR TO THAT, I
STARTED MY CAREER WITH COLORADO
SPRINGS UTILITIES, ANOTHER
LARGE PUBLIC POWER
ORGANIZATIONS SERVING WATER,
WASTEWATER, GAS AND ELECTRIC ,
TO THE GREATER COLORADO SPRINGS
AREA. I SERVED AS THE LEADER OF
CUSTOMER SERVICE, COMPLETED A
STENT IN OPERATIONS AND SERVED
IN THE CIO ROLE. CHIEF
INFORMATION OFFICER ROLE FOR
NINE ADDITIONAL YEARS. I WAS
DRAWN TO SEATTLE CITY LIGHT
BECAUSE MY VALUES ALIGN WITH
THE VALUES OF THE ORGANIZATION.
AND I COULDN'T PASS UP THE
OPPORTUNITY TO BE PART OF AN
ORGANIZATION THAT IS AN
INDUSTRY LEADER IN CLEAN ENERGY
AND ENVIRONMENTAL STEWARDSHIP.
THE ENERGY INDUSTRY IS
UNDERGOING SEVERAL MONUMENTAL
SHIFTS. WE ARE SEEING LOAD
INCREASES INTO THE FORESEEABLE
FUTURE AS WE CONTINUE TO
ELECTRIFY BUILDINGS AND
TRANSPORTATION, REDUCING
GREENHOUSE GAS. WE ARE SEEING
INCREASINGLY VARIABLE WEATHER
PATTERNS. WE KNOW THAT TO MEET
THE GROWING LOAD, WE NEED TO
SOURCE NEW CARBON FREE
GENERATION AND STORAGE. I
BELIEVE THIS IS THE ADAPTIVE
CHALLENGE OF OUR TIME AND I
WANT TO BE PART OF THE SOLUTION
PICK FIGURING OUT HOW TO SOLVE
THE ISSUE THAT HAS NOT BEEN
TACKLED BEFORE ALONG SIDE OF AN
AMAZING GROUP OF CREATIVE
PROFESSIONALS, MANY OF WHOM ARE
SITTING HERE, IN AN INNOVATIVE
COMMUNITY COMMITTED TO FINDING
SOLUTIONS. THIS MORNING, WE
WILL BRIEF YOU ON A PROPOSED
RESOLUTION THAT WOULD ADOPT
CHANGES TO THE WHOLESALE,
ENERGY RISK MANAGEMENT POLICY,
THE WERM, ODDLY NAMED, FOR
SEATTLE CITY LIGHT, TO PROVIDE
ELECTRICITY TO OUR CUSTOMERS 24
HOURS A DAY AND SEVEN DAYS A
WEEK. CITY LIGHT ACTIVELY
PARTICIPATES IN BUYING AND
SELLING WHOLESALE ENERGY
PRODUCTS. AND TODAY'S DYNAMIC
ENERGY SECTOR, ELECTRIC
UTILITIES, ESTABLISH POLICIES
AND PROCEDURES, TO EFFECTIVELY
MANAGE RISK , RISK EXPOSURE,
ASSOCIATED WITH WHOLESALE
ENERGY PURCHASES AND SALES.
THIS IS KNOWN AS THE WHOLESALE
ENERGY RISK MANAGEMENT POLICY
FOR CITY LIGHT. MULTIPLE
BUSINESS UNITS AT CITY LIGHT
PARTICIPATE IN THE DEVELOPMENT
OF THE INPUT AND OUTPUT THAT
ARE PART OF IDENTIFYING,
MONITORING, CONTROLLING AND
REPORTING ON THE RISK EXPOSURE
OF OUR ACTIVITIES IN THE
WHOLESALE ENERGY MARKET. AND
OUR PRESENTATION TODAY, WE WILL
DISCUSS CITY LIGHT'S ENGAGEMENT
IN THE WHOLESALE MARKETS, THE
EVOLUTION OF THE WHOLESALE
ENERGY RISK MANAGEMENT POLICY,
ITS IMPLEMENTATION AT CITY
LIGHT AND WHY WE ARE
RECOMMENDING CHANGES TO THE
POLICY TO MAKE SURE THAT WE
KEEP THOSE POLICIES CURRENT AND
ENSURE APPROPRIATE REVIEW AND
APPROVAL. WE WANT TO ENGAGE
WITH YOU IN FINDING THE RIGHT
BALANCE , ENABLING CITY LIGHT
TO RESPOND TO RAPIDLY CHANGING
MARKET CONDITIONS WHILE ALSO
ENABLING CITY COUNCIL TO HAVE
INSIGHT AND CONFIDENCE IN OUR
PROCESS. THIS EFFORT HAS BEEN
UNDER CONSTRUCTION BY STAFF FOR
MANY MONTHS. IT IS TIME TO
BRING SEATTLE CITY LIGHT'S
THOUGHTS TO THE COUNCIL
COMMITTEE FOR REVIEW. I'M GOING
TO HAND IT OFF TO THE CHIEF
FINANCIAL OFFICER KIRSTY
GRAINER TO RUN THROUGH THIS FOR
YOU .
>> AS GENERAL MANAGER OF DAWN
LINDELL SAID IN HER
INTRODUCTION, PART OF THE CITY
LIGHT BUSINESS IS OPERATING IN
THE WHOLESALE MARKET. EVERY
HOUR OF EVERY DAY, THE TEAM IS
TRANSACTING IN THE WHOLESALE
MARKET 24 HOURS A DAY, SEVEN
DAYS A WEEK.
>> THIS REALTIME BALANCING OF
OUR SUPPLY OF ELECTRICITY WITH
DEMAND FROM CUSTOMERS IS A PART
OF THE BUSINESS IN THIS CHART
ON THE SLIDE ILLUSTRATES THAT .
ON THE VERTICAL AXIS, THAT IS
THE VOLUME OF ELECTRICITY IN
AVERAGE MEGAWATTS. AND ACROSS
THE HORIZONTAL AXIS IS TIME.
THIS IS JUST A SNAPSHOT OF THE
WEEK OF OPERATION. IT HAPPENS
TO BE THE FIRST WEEK OF JANUARY
2023. THE LIGHT BLUE BARS ARE
THE CITY LIGHT RESOURCES. THIS
IS THE POWER GENERATED BY THE
HYDROELECTRIC DAMS AS WELL AS
CONTRACTS IN THE PORTFOLIO. AND
THE DARK BLUE LINE, THAT IS THE
DEMAND FROM CITY LIGHT
CUSTOMERS. OR WE CALL THIS
LOAD. AS I SAID, EVERY HOUR OF
EVERY DAY, CITY LIGHT IS
BALANCING THE SUPPLY AND DEMAND
AND THAT MEANS THAT IF THE
RESOURCES, THE LIGHT BLUE, IS
BELOW THE LOAD, THEN CITY LIGHT
IS OUT IN THE WHOLESALE MARKET
BUYING ELECTRICITY.
CONVERSELY, IF THE LOAD EXCEEDS
THE AMOUNT WE NEED FOR
CUSTOMERS, YOU CAN SEE WHERE
THE LIGHT BLUE GOES ABOVE THE
LOAD LINE. THEN WE WOULD BE
SELLING THAT POWER INTO THE
WHOLESALE MARKET BECAUSE IT IS
A SURPLUS. SO THESE WHOLESALE
MARKET TRANSACTIONS ARE A
SIGNIFICANT FINANCIAL RISK FOR
US. THEY ARE A SIGNIFICANT
PART OF THE BUDGET AND
OPERATIONS TO GIVE YOU SOME
CONTEXT. LAST YEAR, CITY LIGHT
SPENT $131 MILLION IN THE
MARKET PURCHASING POWER ON THE
WHOLESALE MARKET AND WE ALSO
SOLD 66 MILLION WORTH OF POWER
IN THE WHOLESALE MARKET. THESE
ARE JUST INDICATIVE NUMBERS BUT
WE WANT YOU TO UNDERSTAND THAT
FOR US, WHOLESALE ENERGY MARKET
TRANSACTIONS ARE IN THE TENS OR
EVEN HUNDREDS OF MILLIONS OF
DOLLARS. IT IS A SIGNIFICANT
PART OF OUR BUDGET. WHOLESALE
ENERGY RISK MANAGEMENT IS A SET
OF POLICIES AND PROCEDURES THAT
HELP CITY LIGHT MAKE PRUDENT
RISK-BASED DECISIONS AROUND THE
WHOLESALE ENERGY TRANSACTIONS.
THE NEXT SLIDE. THIS IS A
SLIDE THAT IS A LITTLE BIT OF
HISTORY. WAY BACK IN THE
1990S, POWER TRADING IN
SEATTLE, FOR CITY LIGHT, WAS
PRIMARILY ABOUT RELIABILITY.
ELECTRICITY IN THE REGION WAS
PLENTIFUL. IT WAS LOW-PRICED
AND IF CITY LIGHT NEEDED POWER,
YOU PICKED UP THE PHONE AND
CALLED AND BOUGHT SOME. AND IN
THE 1990S, CITY LIGHT MADE A
STRATEGIC MOVE TO DIVEST
OURSELVES OF RESOURCES
PRESUMING THE WHOLESALE MARKET
WOULD HAVE AMPLE AN EXPANSIVE
POWER AVAILABLE WHEN WE NEEDED
IT 2000-2001 CAME WHAT WE NOW
CALL THE WESTERN ENERGY CRISIS.
FOR SEATTLE, WHAT THIS MEANT
WAS DROUGHT CONDITIONS LEFT US
SHORT OF POWER. WE WERE IN THE
MARKET BUYING AS WE WERE
BUYING, THE PRICE OF
ELECTRICITY SKYROCKETED. WHAT
THIS MEANT WAS FINANCIALLY,
CITY LIGHT SPENT OVER $700
MILLION IN THE MARKET. WE
BURNED THROUGH OUR CASH
RESERVES. WE FOUND OURSELVES
OVER $500 MILLION IN DEBT. OUR
CREDIT WAS DOWNGRADED AND WE
WERE IN COUNCIL REGULARLY.
THERE WERE EMERGENCY RATE
INCREASES THAT ULTIMATELY
TOTALED 60% FOR CUSTOMERS. SO
THIS WAS A VERY SERIOUS CRISIS
FOR SEATTLE CITY LIGHT .
>> AND CITY LIGHT MADE SOME
BIG MOVES AND SEATTLE. WE
RESTRUCTURED THE UTILITY. WE
ESTABLISH A NEW RISK OVERSIGHT
FUNCTION THAT IS SEPARATE FROM
THE POWER TRADING . WE MOVED TO
AT THE BONNEVILLE POWER
ADMINISTRATION CONTRACT TO THE
PORTFOLIO AND THAT IS WHAT WE
WERE HERE TWO WEEKS AGO TALKING
ABOUT AND ANYONE LISTENING OUT
IN THE WORLD WANTS TO LOOK THAT
UP ON THE SEATTLE CHANNEL, I
BELIEVE YOU CAN WATCH THAT
VIDEO OUT THERE. TODAY, CITY
LIGHT GETS OVER ONE THIRD OF
OUR ELECTRICITY FROM BONNEVILLE
AND THIS WAS A MOVIE MADE IN
THE AFTERMATH OF THE ENERGY
CRISIS IN RESPONSE TO THAT.
>> OVER THE YEARS, SINCE THEN,
WE HAVE PUT INTO PLACE NEW
POLICIES AND PROCEDURES AND
THIS WILL CONTINUE TO EVOLVE IN
NATURE. THE FIRST FOREIGN
POLICY WAS ADOPTED BY CITY
COUNCIL IN 2008. AND SINCE
THEN, WE HAVE UPDATED IT
REGULARLY. NOT ALL OF THOSE ARE
SHOWN HERE ON THE TIMELINE .
IN 2011, THE RSA OR THE RATE
STABILIZATION ACCOUNT WAS
ESTABLISHED AND THIS IS AN
IMPORTANT MECHANISM THAT HELPS
INSULATE CITY LIGHT CUSTOMERS
FROM THIS FINANCIAL RISK THAT
THE UTILITY IS EXPOSED TO. A
CASH RESERVE AND SET OF RULES
AROUND THE OPERATION OF IT THAT
HELP BUFFER THE FINANCIAL
IMPACT OF THE WHOLESALE
TRANSACTIONS. AND THIS WAS
ESTABLISHED BY CITY COUNCIL IN
2011. IN 2018, THE COUNCIL
APPROVED EXTENDING THE CITY
LIGHT TRANSACTION AUTHORITY
FROM 2-5 YEARS AND IN 2020,
CITY LIGHT JOINED THE
CALIFORNIA ISO, EIM WHICH IS AN
AUTOMATED REALTIME MARKET AND
THIS REPRESENTED A BIG CHANGE
IN THE WAY THAT CITY LIGHT
OPERATES BECAUSE THIS IS AN
AUTOMATED REALTIME MARKET AND
IS MORE DYNAMIC AND HAS JUST
CHANGED HOW WE TRADE
ELECTRICITY. AND THAT BRINGS US
TO TODAY. THE LAST TIME CITY
COUNCIL FORMALLY ADOPTED THE
POLICY FOR WERM WAS 2015 AND WE
ARE BACK HERE TODAY WITH A
PROPOSED UPDATE THAT
ESTABLISHES BOTH AN UPDATED
POLICY AND ALSO AUTHORIZES CITY
LIGHT TO MAKE UPDATES TO THE
POLICY GOING FORWARD WITHOUT
COUNCIL LEGISLATION AND WE WILL
TALK ABOUT THAT LATER IN THE
PRESENTATION .
>> THE PURPOSE IS NOT TO BE AN
ALARMIST BUT TO PROVIDE CONTEXT
AND HISTORY AND I HOPE WE HAVE
ILLUSTRATED HERE HOW MUCH
THINGS HAVE CHANGED OVER THE
LAST 24 YEARS AND I WANT TO
MAKE SURE THE PURPOSE OF THIS
IS TO SHOW THAT THE MATURATION
AND WHY THINGS ARE DIFFERENT
TODAY THEN THEY WERE IN 2024 ,
I MEAN 24 YEARS AGO IN 2000.
WHAT IS ALSO RISK MANAGEMENT
POLICY DO? THE POLICY INCLUDES
ROLES AND RESPONSIBILITY IS FOR
POWER TRADING WITHIN CITY
LIGHT. IT SAID SWITCH
ELECTRICITY PRODUCTS THE
UTILITY IS ALLOWED TO BUY AND
SELL. IT ESTABLISHES THE
FORECAST AND METRICS THAT WE
USE THAT INFORM THE DECISIONS.
IT SETS PROCEDURES FOR HOW
EACH STEP OF A DECISION TO BUY
HER SELL POWER GET SIGNED OFF
ON. IT SETS THE FREQUENCY OF
MONITORING REPORTS AND IT
DESIGNATES TO THEY GO OUT TO
AND ALSO HOW FREQUENTLY AUDITS,
CONDUCTED BY INTERNAL STAFF AND
BY EXTERNAL AUDITORS, SHOULD BE
CONDUCTED. IT IS A VERY
DETAILED DOCUMENT. THERE IS A
POLICY COMPONENT AS WELL AS A
PROCEDURES COMPONENT AND IT IS
A VERY ROBUST AND TECHNICAL
DOCUMENT IN SOME PLACES.
>> THIS IS ONE ILLUSTRATION OF
OUR WERM POLICY AND ACTION.
THIS SHOWS THE SEGREGATION OF
DUTIES AND POWER TRADING. THE
COLORS ON THE BOXES THAT YOU
SEE HERE, ON TO A DIVISION
WITHIN CITY LIGHT MEANS THAT
THE DIFFERENT COLORS ROLL UP TO
A DIFFERENT SENIOR LEADER. THE
GREEN IS A POWER MANAGEMENT
DECISION AND THE BLUES THE
FINANCE DIVISION AND RISK
OVERSIGHT IS DARK BLUE AND THEN
BROWN IS THE UTILITY TECHNOLOGY
DIVISION. SO FOUR DIFFERENT
DIVISIONS CONTRIBUTE TO
DECISION-MAKING AROUND BUYING
AND SELLING POWER AND THE
WHOLESALE MARKET. WE HAVE A
RISK OVERSIGHT COUNCIL THAT WAS
ESTABLISHED AS PART OF THE
FIRST POLICY AND THIS WAS A
CROSS FUNCTIONAL TEAM MADE UP
OF AT LEAST THREE DIFFERENT
SENIOR LEADERS WHO OVERSEE
EVERY DECISION WE MAKE , WITH
RESPECT TO THE POWER HEDGING.
AND IF ANY OF THESE SENIOR
LEADERS HAVE CONCERNS OR THERE
IS A SPLIT VOTE IN A DECISION,
THEY HAVE THE AUTHORITY TO TAKE
THAT TO THE GENERAL MANAGER.
>> HAVING THESE DIFFERENT
PERSPECTIVES FEEDING INTO THE
DECISION-MAKING AND HAVING
SEPARATE BACK END PERFORMANCE
REPORTING HELPS KEEP A HEALTHY
DIALOGUE AND OVERSIGHT AROUND
THE WHOLESALE TRADING
OPERATIONS. I'M SHOWING ON
THE LEFT SIDE THAT THOSE ARE
THE INFLUX DECISIONS. YOU CAN
SEE THERE IS AN ARRAY OF
FORECASTS AND ANALYSIS OF
METRICS ALL PRODUCED BY
DIFFERENT GROUPS AND ON THE
BACK END, THE FINANCE OVERSIGHT
DIVISIONS PRODUCE TRACKING
REPORTS THAT REPORT ON HOW THE
POWER MANAGEMENT GROUP IS DOING
SO THERE IS A SEPARATE SET OF
TRACKING REPORTS ON THAT. AND
TO REALLY ILLUSTRATE HOW THIS
HAS MATURED COMPARED TO THE
1990S, IF WE HAD DRAWN THE SAME
PICTURE BACK THEN, ALMOST EVERY
BOX ON HERE WOULD BE GREEN AND
IT ALL HAPPENED IN ONE PART OF
THE ORGANIZATION. AND SO
THINGS HAVE CHANGED A LOT.
>> THE WEST AND OBVIOUSLY, WHY
WOULD CITY LIGHT PROPOSED
UPDATE THE POLICY AND PROPOSE
TO CHANGE HOW WE MAKE UPDATES
TO THE POLICY NOW? WE TALKED A
LITTLE BIT ABOUT HOW CITY LIGHT
RISK MANAGEMENT PRACTICES HAVE
EVOLVED AND MATURED AND THAT IS
PART OF IT. ANOTHER PART OF IT
IS AT THE UTILITY AND THE
REGULATORY LANDSCAPE THAT WE
OPERATE IN HAS ALSO EVOLVED AND
NOT -- AND MATURED. AT THE
FEDERAL LEVEL, THE FEDERAL
ENERGY REGULATORY COMMISSION,
THEY HAVE NEW REGULATIONS IN
PLACE THAT WERE NOT THERE TWO
DECADES AGO. IN PARTICULAR
RELATING TO MARKET MANIPULATION
WHICH WAS A FACTOR DURING THE
WESTERN ENERGY CRISIS. I'M
SURE EVERYBODY REMEMBERS THE
COMPANY ENRON SO THERE ARE
FEDERAL RULES NOW THAT WOULD
PREVENT SOME OF THOSE THINGS
FROM HAPPENING AGAIN AS WELL AS
AT THE STATE LEVEL. THERE ARE
NEW STATE REQUIREMENTS. AN
EXAMPLE OF THAT THE INTEGRATED
RESOURCE PLAN. YOU WILL BE
HEARING ABOUT THE IRP AND THE
INTEGRATED RESOURCE PLAN LATER
THIS YEAR WHICH IS A STATE
REQUIREMENT THAT CITY LIGHT DO
AN ANALYSIS OF THE RESOURCES
THAT WE HAVE TO MEET OUR
CUSTOMER PATIENTS LOAD. THAT
IS SOMETHING THAT WE HAVE TO
PRODUCED BY STATE LAW. U.S.
REGULATORS HAVE TO APPROVE IT.
AND THE IRP IS SOMETHING THAT
ALSO DIDN'T EXIST 20 YEARS
AGO. AND SO THE STRATEGY THAT
CITY LIGHT TOOK BACK IN THE 90S
TO BE SURE IT WOULD NEVER BE
ALLOWED TODAY. AND SO THE
REGULATORY LANDSCAPE IS MORE
MATURE AND HAS EVOLVED AND IT
IS ALSO MORE COMPLEX AND MORE
DYNAMIC. SO WHAT WE ARE SEEING
IS THE UTILITY ARE NEW
OPERATING RULES COMING OUT AND
NEW PRODUCT OPTIONS AND
EVOLVING REQUIREMENTS FROM THE
MARKET AND SO WHAT WE'RE
FINDING IS THINGS ARE MORE
ESTABLISHED BUT THEY ARE ALSO
CHANGING MORE FREQUENTLY AND
BECOMING MORE DYNAMIC. IT IS
IMPORTANT FOR US TO BE ABLE TO
HAVE A POLICY AND PROCEDURE
THAT REFLECTS THE REALITY OF
TODAY THAT WE ARE OPERATING IN
AND TO BE ABLE TO UPDATE THOSE
POLICIES TO REFLECT THE MARKETS
AND THE LANDSCAPE WE ARE
OPERATING WITHIN.
>> TO SUMMARIZE, THIS
RESOLUTION APPROVES A NEW
POLICY FOR WERM AND GRANTS THE
CITY LIGHT GENERAL MANAGER
AUTHORITY TO APPROVE UPDATES TO
THIS POLICY GOING FORWARD. THE
BENEFITS, IT ALLOWS UTILITY TO
MAKE REGULAR UPDATES WITHOUT
GOING THROUGH THE FULL
LEGISLATIVE PROCESS WHICH
ALLOWS US TO MORE NIMBLY MAKE
POLICY ADJUSTMENTS TO ALIGN
WITH THE CURRENT LANDSCAPE. WE
CAN RESPOND TO THE DYNAMIC
MARKET CONDITIONS THAT WE ARE
EXPANDING AND THIS HELPS US
MAINTAIN RELIABILITY AND
ADAPTABILITY WITHIN THE
WHOLESALE ENERGY MARKETS. IT
ALSO HELPS US MAINTAIN
COMPLIANCE WITH OUR REGULATORY
OBLIGATIONS AND REQUIREMENTS
WHICH ARE CONSISTENTLY
EXPANDING. AND THIS POLICY , WE
HAVE TO USE IT FOR VARIOUS
ENTITIES SUCH AS BOND ISSUERS,
FINANCIAL AUDITORS, REGIONAL
TRANSMISSION ORGANIZATIONS,
OTHER ENERGY PROVIDERS LIKE
BONNEVILLE. AND HAVING THIS
DOCUMENT UPDATED ALLOWS US TO
MEET THOSE NEEDS PROMPTLY.
>> I WANT TO STRESS THAT THE
PROPOSED CHANGE DOES NOT REDUCE
CITY COUNCIL'S AUTHORITY OVER
CITY LIGHT OPERATIONS. CITY
COUNCIL IS THE REGULATOR AND
DELEGATES AUTHORITY TO CITY
LIGHT AND TO THE CITY LIGHT
GENERAL MANAGER TO ENTER INTO
WHOLESALE POWER AGREEMENTS
WITHIN PARAMETERS THAT ARE
CODIFIED WITHIN THE SEATTLE
MUNICIPAL CODE. THE SEATTLE
MUNICIPAL CODE ALSO SETS THE
RULES FOR THE RATE
STABILIZATION ACCOUNT OPERATION
WHICH IS THIS GREAT STABLE
ACCOUNT RSA WHICH IS AN
IMPORTANT WHOLESALE RISK
MANAGEMENT TOOL FOR SEATTLE.
COUNSEL MUST ALSO EXQUISITELY
APPROVE LONG-TERM POWER
CONTRACTS, CONTRACTS OVER FIVE
YEARS IN DURATION. MARKET
DECISIONS, YOU APPROVE THE
INTEGRATED RESOURCE PLAN AND
YOU WILL BE HEARING MORE ABOUT
ALL OF THESE, ABOUT CONTRACTS,
MARKET DECISIONS AND THE IRP IN
THE COMING YEAR. AND YOU DO AND
YOU WILL CONTINUE TO RECEIVE
ROBUST REPORTING ON THE
WHOLESALE OPERATIONS IN THE
FINANCIAL OUTCOMES OF THE
OPERATIONS AS WELL AS THE
PROPOSED TO PROVIDE ANNUAL
UPDATES ON POLICY CHANGES.
THOSE ARE THE SLIDES WE HAD
TODAY AND I WILL TURN IT OVER
TO MORROW TO TALK ABOUT NEXT
STEPS. AND I WOULD BE HAPPY TO
ANSWER ANY QUESTIONS YOU HAVE.
>> LET'S TAKE QUESTIONS.
>> COLLEAGUES, ANY QUESTIONS
OR COMMENTS?
>> COUNCILMEMBER MOORE.
>> THANK YOU MADAM CHAIR.
MCCUE FOR THIS OVERVIEW AND
THANK YOU FOR JOINING US AGAIN
THIS MORNING. AND SO A COUPLE
OF QUESTIONS. MAYBE I WILL
START FIRST WITH -- I WOULD
APPRECIATE YOUR HELP HELPING ME
BETTER UNDERSTAND THE
UNDERLYING DNA MAKES OF THE
MARKET AT PLAY. THE WHOLESALE
POWER. AND SO IT SOUNDS LIKE WE
ARE CURRENTLY OPERATING UNDER A
DEFICIT. AND IT SHOWS THAT YOU
PURCHASE MORE WHOLESALE POWER
THAT WE SELL? WHY IS THAT
EXACTLY AND WE WILL START
THERE.
>> THE CHART, TO BE CLEAR, IT
WAS ONE WEEK IN THE WINTER. IT
DEPENDS A LOT ON THE WINTER ON
WEATHER. SO IF IT IS OF
SEASONALLY COLD OR UNSEASONABLY
HOT, THAT WILL BE A TIME THAT
WE SEE DEMAND TO SEE CITY LIGHT
CUSTOMERS GO HIGHER. THE
OTHER BIG FACTOR THAT
DETERMINES WHETHER CITY LIGHT
IS BUYING OR SELLING IN THE
MARKET IS HYDRO PRODUCTION. WE
ARE PREDOMINATELY A
HYDROELECTRIC UTILITY. WHEN IT
IS GOOD AND RAINING, WE HAVE
GOOD ELECTRICITY. WHEN IT IS
DRY AND DROUGHT CONDITIONS, WE
HAVE TO BUY ON THE MARKET TO
SUPPLEMENT. IT IS VERY DRY. SO
THAT IS THE REASON CITY LIGHT
WAS A NET BUYER IN THE MARKET.
SO THE PRODUCTION OUT OF THE
SKAGIT AND BOUNDARY,
HYDROELECTRIC FACILITIES WAS
LOWER THEN IT WOULD HAVE BEEN
IF THE WATER CONDITIONS WERE
MORE NORMAL .
>> THE ONE SLIDE, THE THIRD
BULLET, WE ARE OPERATING UNDER
$65 MILLION -- THIS IS THE
DEFICIT WE ARE OPERATING ON .
>> LAST YEAR.
>> LAST YEAR. IS THAT
REPRESENTATIVE OF ALL YEARS? IS
THAT GENERALLY THE CASE WHERE
WE ARE OPERATING UNDER A
DEFICIT EVERY YEAR WAS ARE WE A
DEFICIT NEUTRAL OR OPERATING
UNDER A SURPLUS ASKED WHAT
WOULD CONTRIBUTE TO THOSE
CONDITIONS? IS THAT A GOOD
THING?
>> GREAT QUESTION. AND YOU
REALLY GOTTEN AT THE HEART OF A
BIG STRATEGIC ISSUE FOR CITY
LIGHT AT THIS TIME RIGHT NOW IN
2024. IT IS TRUE THAT MORE AND
MORE, WE ARE FINDING OURSELVES
DEFICIT AND WATER CONDITIONS
ARE BELOW WHAT HISTORICALLY
WOULD HAVE BEEN CONSIDERED
NORMAL. AND IT APPEARS THAT
CLIMATE CHANGE AND OTHER
FACTORS MEAN THAT IT IS -- IF
ANYONE HERE IS A SKIER, YOU
PROBABLY NOTICED TO THE SNOW
TENDS TO NOT BE VERY GOOD IN
THE WINTER. WE HAVE HAD A LOT
MORE BAD SKIING YEARS THAN GOOD
ONES RECENTLY. AND SO WE ARE
SEEING LESS HYDRO PRODUCTION
THEN WE WOULD HAVE CONSIDERED
NORMAL IN OUR 100 YEAR HISTORY.
AND WE ARE WORKING TO
UNDERSTAND THAT, HOW MUCH OF
THAT IS CLIMATE CHANGE AND HOW
MUCH OF THAT IS BAD LUCK. BUT
IT IS A BIG ISSUE AND CITY
LIGHT DOES NEED TO PROCURE
ADDITIONAL RESOURCES SO THAT WE
CAN MAINTAIN A PRUDENT LEVEL OF
FIRM SUPPLY FOR OUR CUSTOMERS
AND NOT FIND OURSELVES IN THE
WHOLESALE MARKET MORE THEN WE
WANT TO BE.
>> I MIGHT ADD, I MENTIONED IN
MY OPENING -- WIND FIVE,
GENERAL MANAGER FOR SEATTLE
CITY LIGHT, I MIGHT ADD THAT ,
AS WE MOVE TOWARD MORE
TRANSPORTATION ELECTRIFICATION
AND MORE BUILDING
ELECTRIFICATION, WE ARE ADDING
LOAD. WE WILL SEE THE DARK LINE
GO UP CONSIDERABLY. AND WE
HAVE GOT TO PROCURE ADDITIONAL
RESOURCES TO MEET THAT LOAD ON
AN ONGOING BASIS. IT IS A
MATTER OF BALANCING COST AND
MEETING THE LOAD WITH RESOURCES
WE OWN. SO WHATEVER WE BUY, WE
PAY FOR REGARDLESS. AND SO WE
DON'T WANT TO HAVE -- WE
DON'T WANT TO PROCURE TOO MUCH
ENERGY THAT WE OWN ALL THE TIME
BECAUSE THE RATE PAYERS WOULD
PAY FOR THAT ALL THE TIME. SO
IT MAKES SENSE TO GO TO MARKET
AND BUY TO MEET THE
DIFFERENTIAL WHEN IT IS
OCCASIONAL. WHEN IT CAN GET
VERY EXPENSIVE THOUGH ARE ON
THE HIGH HIGHS IN THE LOW LOWS
IN TERMS OF WEATHER. SO I WOULD
ADD THAT AS WELL.
>> BASED ON WHAT I'M HEARING,
IT SOUNDS LIKE IT WOULD BE A
GOOD THING TO TRY TO -- GIVEN
THE MARKET CONDITIONS AND COST
VARIANCES, TO TRY TO BE DEFICIT
NEUTRAL AS MUCH AS POSSIBLE.
WE WOULD DEFINITELY HAVE TO
MEET THE LOAD OR THE DEMAND
HERE. THIS IS A CHALLENGE THAT
I WOULD LIKE TO BETTER
UNDERSTAND THE DYNAMICS OF. AND
I'M GLAD THAT THIS IS A
BRIEFING. BUT IN ANY EVENT,
THANK YOU FOR THAT. MY OTHER
QUESTION IS, WHAT IS THE
PRIMARY PURPOSE OR GOAL THE
SPECIFIC PROPOSED LEGISLATION
BRINGS AND HOW IS THE
LEGISLATION SPECIFICALLY
DESIGNED TO HELP US OBTAIN THAT
OBJECTIVE? I UNDERSTAND THAT
WE HAVE A RAPIDLY EVOLVING
REGULATORY LANDSCAPE IN THE
SAME PRINCIPLE IS TRUE FOR A
LOT OF INDUSTRIES BY THE WAY.
AS A LAWYER, I WILL SAY MAYBE
IT IS JUST GOOD JOB SECURITY
FOR LAWYERS AND COMPLIANCE
PROFESSIONALS OUT THERE . BUT
IN ANY EVENT, THERE IS A
RAPIDLY EVOLVING REGULATORY
LANDSCAPE . THIS, IT SOUNDS
LIKE I'M HEARING AMONG THE
BENEFITS, IT WILL HELP WITH
CITY LIGHT BEING MORE DYNAMIC
AND NIMBLE WHICH IS NOT IN AND
OF ITSELF A BAD THING.
GENERALLY GOOD. I WOULD LOVE
TO HEAR A MORE COMPELLING
JUSTIFICATION FROM YOUR
PERSPECTIVE. WHAT IS THE
SPECIFIC PROBLEM AND HOW IS IT
SPECIFICALLY DESIGNED TO HELP
ACHIEVE THAT OBJECTIVE?
>> SURE. LIKE I SAID, THE VERY
FIRST WHOLESALE ENERGY RISK
MANAGEMENT POLICY WAS ADOPTED
BY CITY COUNCIL FAIRLY RECENTLY
AND 2008. ACROSS THE INDUSTRY,
VERY FEW UTILITIES EVEN HAD
SUCH A THING. IT WASN'T A
THING. WORKING CLOSELY WITH
COUNSEL IN THE AFTERMATH OF THE
WESTERN ENERGY CRISIS TO SET UP
THESE POLICIES AND ESTABLISHES
VERY IMPORTANT. SINCE THEN, THE
UPDATES OF THE POLICY HAVE
TENDED TO BE MORE AND MORE WITH
INCREASED ADMINISTRATIVE . IT
IS NOT NEW. IT IS ADJUSTING IT
TO REFLECT OUR CHANGING NEEDS
THAT ARE DETERMINED BY THE
MARKETS WE OPERATE IN AND THE
REGULATORY LANDSCAPE. WE NEED
TO UPDATE THE POLICY FREQUENTLY
SO IT IS UP-TO-DATE. WE HAVE
NOT UPDATED IT SINCE 2015
OFFICIALLY WITH CITY COUNCIL.
THERE IS AN UNOFFICIAL VERSION
WE ARE CONSTANTLY UPDATING AND
AS YOU KNOW, THE LEGISLATIVE
PROCESS TAKES SEVERAL MONTHS,
START TO FINISH. IT IS A
DELIBERATIVE, AS IT SHOULD BE,
PROCESS. BUT IT DOESN'T LEND
ITSELF WELL TO HAVING AN
ADMINISTRATIVE DOCUMENT KEPT
UP-TO-DATE CONSTANTLY. AND SO
THAT IS WHY WE ARE PROPOSING TO
STREAMLINE THE POLICY DOCUMENT,
HAVE MORE OF THE DETAIL IN THE
PROCEDURES AND AUTHORIZE THE
GENERAL MANAGER TO KEEP THOSE
UPDATED AND CHANGED COUNSEL
PATIENTS ROLE FROM BEING ONE
WHERE EACH UPDATE IS EXPLICITLY
APPROVED TO MORE GENERAL
OVERSIGHT WHERE YOU RECEIVE
REPORTS FROM US ON WHAT UPDATES
ARE HAPPENING BUT YOU AREN'T
APPROVING EVERY EDIT AS WE ARE
DOING THEM. IT IS JUST LESS
PRACTICAL AND COMPARED TO WHERE
WE WERE 20 YEARS AGO, IT DOES
NOT MAKE SO MUCH SENSE ANYMORE.
WE HAD A GREAT CONVERSATION
WITH COUNSEL STAFF AS WE WERE
PREPARING FOR TODAY'S BRIEFING
AND A GREAT QUESTION THAT CAME
UP ARE, WHAT ARE OTHER
UTILITIES DOING IN THE SPACE?
>> MY FAVORITE QUESTION .
>> YOUR STAFFERS ARE DOING YOU
A SOLID. WE REACH OUT TO SOME
OF OUR PEERS AND WE LEARNED
THAT TACOMA PUBLIC UTILITIES
DID SOMETHING SIMILAR A FEW
YEARS AGO WHEN THEY WENT TO THE
UTILITY BOARD AND THEY MOVED
RESPONSIBILITY FOR UPDATING THE
WHOLESALE POLICY WITHIN THE
UTILITY. PUGET SOUND ENERGY,
THEY ARE THEIR OWN UTILITY BUT
ANOTHER ONE THEY BRING, THEY
HAVE A MORE SIMPLE POLICY THAT
GOES TO THEIR BOARD ONCE A YEAR
BUT MOST OF THE DOCUMENTATION
IS IN A PROCEDURE DOCUMENT
MAINTAINED INTERNALLY. WHO ARE
WE FORGETTING?
>> EUGENE .
>> SNOHOMISH.
>> WE TALKED WITH AUSTIN ENERGY
AS WELL WHO IS FURTHER AWAY BUT
THEY ARE THE OTHER UTILITY IN
THE COUNTRY WHO WAS OVERSEEN BY
CITY COUNCIL LIKE WE ARE SO WE
WERE CURIOUS TO UNDERSTAND WHAT
THEY DO AS WELL. WHAT WE HEARD
IS, UTILITIES ARE RECOGNIZING
THAT MAINTAINING THE POLICY IS
LESS OF A NEW EMERGENT ISSUE AS
IT IS AN ADMINISTRATIVE
FUNCTION RELATED TO HOW WE
OPERATE WITHIN THE REGULATORY
LANDSCAPE OF THE FEDERAL
GOVERNMENT, THE STATE
GOVERNMENT AND THE MARKETS WE
OPERATE IN. EVERY UTILITY
POLICY IS A LITTLE DIFFERENT.
SOME OF THEM, AS WE UNDERSTAND,
SAID THE BUDGET WITHIN THE
POLICY AND OF COURSE WE SET OUR
BUDGET THROUGH THE CITY BUDGET
PROCESS. THERE ARE DIFFERENCES
BUT IT SEEMS LIKE THE INDUSTRY
IS MOVING IN THIS DIRECTION.
>> THANK YOU FOR THAT
EXPLANATION AND THANK YOU.
KUDOS. SOUGHT OUT FOR
UNDERSTANDING WHAT.
JURISDICTIONS ARE DOING AND
APPROACHES THEY ARE TAKING AT
LEAST AT A HIGH LEVEL.
EXCELLENT ACTUALLY. THANK YOU.
THAT IS SOMETHING REALLY
IMPORTANT TO ME AND I MENTIONED
MANY TIMES BEFORE AND I ASK A
LOT OF QUESTIONS TO DEPARTMENT
HEADS ABOUT THAT AND IF THE
ANSWER IS, I DON'T KNOW OR
I'M RESPONSIBLE FOR SEATTLE
-- IN MY VIEW, THAT IS THE
WRONG ANSWER. AND TOTALLY OFF
BASE AND INCREASINGLY
UNACCEPTABLE. SO THANK YOU FOR
UNDERSTANDING AT LEAST AT A
HIGH LEVEL WHAT IS GOING ON AND
I WILL STOP AND LET MY
COLLEAGUES -- THANK YOU MADAM
CHAIR.
>> COUNCILMEMBER STRAUSS.
>> GOOD MORNING. JUST WANT TO
THANK YOU FOR THE BRIEFING AND
THE UNDERSTANDING OF WHERE WE
HAVE COME FROM IN THE SENSE
THAT IT WAS A PRETTY
UNREGULATED MARKET FOR
PURCHASING. WE DIVESTED IN
WHERE WE ARE GETTING OUR
ENERGY.
>> COUNCILMEMBER STRAUSS, CAN
YOU TALK INTO THE MICROPHONE?
>> YES. I SHOWED THAT
FEEDBACK EARLIER. THANK YOU FOR
SHARING THAT WITH ME. JUST TO
SAY WHEN WE HAVE THE CRISIS IN
THE LATE 90S, WE PROVIDED A
FRAMEWORK FOR ACCOUNTABILITY
WHICH IS WHAT IS IN HERE ON
WHAT WE ARE TALKING ABOUT AS
WELL AS RE-CREATED THE STREET
DIRECT CONNECTION TO BONNEVILLE
POWER ADMINISTRATION TO FILL IN
THE BANK. AND THE TIME SINCE
THEN, IT WAS GREAT TO HEAR FROM
YOU. A DEEP EXPLANATION ABOUT
HOW THE MARKET HAS BECOME MORE
REGULATED AND HOW WE HAVE
ENTERED INTO THESE AND BALANCE
MARKETS AND WE ARE LOOKING AT
THE DAY AHEAD MARKETS SO WE CAN
PREVENT THE HOURLY PURCHASING
THAT GOT US INTO THE MESS. AND
IS HOPEFUL TO HERE THE OTHER
PIECES OF ACCOUNTABILITY YOU
HAVE CREATED INTERNALLY IN THE
ORGANIZATION SO THAT I CAN FEEL
COMFORTABLE RELEASING SOME OF
THE ACCOUNTABILITY AND AT THE
SAME TIME, BE MORE FLEXIBLE AND
DYNAMIC WHILE CITY COUNCIL
STILL IS RETAINING ULTIMATE
AUTHORITY. AND ENSURING THAT
YOUR PROTECTING US FROM THE
CRISIS THAT WE EXPERIENCED IN
THE LATE 90S. SONATA QUESTION
THERE. JUST TO THANK YOU FOR
THE BRIEFING. APPRECIATE IT.
>> THANK YOU. THANK YOU FOR
BEING SO ATTENTIVE IN ANSWERING
MY QUESTIONS. AND I WILL CHAT
WITH OTHER COLLEAGUES TO SEE IF
WE MAY NEED MORE BRIEFINGS
REGARDING THIS. BUT THANK YOU
SO MUCH AND WE WILL DEFINITELY
DIRECT QUESTIONS YOUR WAY. SO
WE HAVE REACHED THE END OF
TODAY'S MEETING AGENDA. IS
THERE ANY FURTHER BUSINESS TO
COME BEFORE THE COMMITTEE
BEFORE WE ADJOURN?
>> HEARING NO FURTHER BUSINESS
TO COME BEFORE THE COMMITTEE,
WE ARE ADJOURNED. THANK YOU.