>>> GOOD MORNING, THE AUGUST 2
MEETING OF THE CITY LIGHT, ARTS
AND CULTURE MEETING WILL COME
TO ORDER. WILL THE COMMITTEE
CLERK PLEASE CALL THE ROLL?
>> VICE CHAIR MOORE .
>> PRESENT.
>> COUNCILMEMBER MORALES.
COUNCILMEMBER SAKA.
COUNCILMEMBER STRAUSS.
>> PRESENT.
>> CHAIRWOMAN.
>> PRESENT.
>> THERE ARE FOUR MEMBERS
PRESENT.
>> THANK YOU. IF THERE IS NO
OBJECTION, THE AGENDA WILL BE
ADOPTED. HEARING NO OBJECTION
THE AGENDA IS ADOPTED. WE WILL
NOW OPEN THE HYBRID PUBLIC
COMMENT PERIOD. ITEMS SHOULD
RELATE TO ITEMS ON THE AGENDA.
WE ARE HAVING A PUBLIC HEARING
AS WELL TODAY, SO IF YOU WANTED
TO SPEAK DURING THE PUBLIC
COMMENT PERIOD, PLEASE DO NOT
SPEAK ON MATTERS THAT YOU WOULD
ADDRESS DURING THE PUBLIC
HEARING. WE WILL COME BACK TO
YOU FOR THE PUBLIC HEARING. SO
PLEASE ADDRESS COMMENTS IN THE
PUBLIC HEARING, IN THE PUBLIC
HEARING, AND PUBLIC COMMENTS
FOR PUBLIC COMMENTS. THANK YOU.
HOW MANY SPEAKERS WE HAVE
SIGNED UP TODAY?
>> WE HAVE ONE IN PERSON AND
THREE REMOTE.
>> THANK YOU. SO EACH SPEAKER
WILL HAVE TWO MINUTES. WE WILL
START WITH THE IN-PERSON
SPEAKERS FIRST. PUBLIC COMMENT
WILL BE MODERATED IN THE
FOLLOWING MANNER. THE PERIOD
WILL BE 20 MINUTES. SPEAKERS
WILL BE CALLED IN THE ORDER IN
WHICH THEY REGISTERED. WE WILL
OF COURSE START WITH IN PERSON
AND THEN GO TO ONLINE SPEAKERS
AND YOU WILL HEAR A TIME WITHIN
10 SECONDS LEFT OF YOUR TIME.
SO AT THE TWO MINUTE MARK, YOUR
MICS WILL BE MUTED. IF YOU DO
NOT END YOUR COMMENTS WITHIN
THE ALLOTTED TIME, WE WILL THEN
MOVE ON TO THE NEXT SPEAKER. SO
THE PUBLIC COMMENT PERIOD IS
NOW OPEN. WE WILL BEGIN WITH
THE FIRST SPEAKER ON THE LIST.
>> PARKER DAWSON.
>> TO HELP BETTER POSITION OUR
BUILDERS TO PROVIDE FOR THE
HEIGHTENED AND INCREASING
DEMAND OF POWER IN OUR CITY.
PARAMOUNT TO THIS WORK IS
ENSURING THAT CITY LIGHT HAS
THE PERSONNEL AND RESOURCES TO
BUILD OUT THE INFRASTRUCTURE
NECESSARY TO PROVIDE CLEAR AND
PREDICTABLE SERVICE HOOKUP
COSTS OR SERVICE CONNECTION
COST FOR NEW HOUSEHOLDS. THIS
GOAL IS COMPLEX AND IS MADE ALL
THE MORE DIFFICULT DUE TO OUR
RAPID RATE OF DECARBONIZING AND
THE FIRM COMMITMENT TO
REMAINING CARBON NEUTRAL. FIRST
THE ABILITY TO BECOME CARBON
NEUTRAL. THE LOAD BURDEN ON OUR
AGED AND WORN INFRASTRUCTURE
SHOWS. IT SHOWS IN ROUTINE
OUTAGES FOR CUSTOMERS IN
UNDERSERVED COMMUNITIES, AS
WELL AS IN INCREASED SERVICE
CONNECTION COSTS. THE RATE PATH
REPRESENTS ONE OF THE BEST
STRATEGIES WE CAN BE LEVERAGING
TO HELP CREATE A RELIABLE
FUNDING STREAM THAT HELPS
MAINTAIN THAT 24/7 ACCESS TO
SAFE, RELIABLE ENERGY. SO WE AT
THE BUILDERS ASSOCIATION
STRONGLY ENCOURAGE YOU ALL TO
ASK GREAT QUESTIONS AND TO PASS
THEIR STRATEGIC PLAN MOVING
FORWARD. THANK YOU ALL FOR YOUR
TIME.
>> THANK YOU.
>> OUR FIRST REMOTE SPEAKER IS
SABRINA. SABRINA, PRESS STAR
SIX.
>> GOOD MORNING EVERYONE.
THANK YOU FOR THIS OPPORTUNITY
TO ENTHUSIASTICALLY TESTIFY IN
SUPPORT OF SEATTLE CITY
LIGHT'S STRATEGIC PLAN UPDATE.
THIS PLAN BUILDS ON CITY
LIGHT'S COMMITMENT TO REIT --
TO MEET REDUCTION GOALS. WE
LOOK FORWARD TO DECARBONIZING
OUR OPERATIONS INCLUDING CARGO
AND CRUISE SHIP OPERATIONS. WE
ARE JOINTLY EMBARKING ON A
STRATEGY TO ELIMINATE EMISSIONS
AT SEATTLE'S WORKING
WATERFRONT. THE GOAL IS TO PUT
IN PLACE CLEAN, INDUSTRIES TO
TRANSITION AWAY FROM FOSSIL
FUEL. WORKING WITH SEATTLE CITY
LIGHT WE ARE COORDINATING
INFRASTRUCTURE IMPROVEMENTS --
AND IMPLEMENTATION OF
STRATEGIES FOR RESILIENT AND
RELIABLE ENERGY FOR THE PORT OF
SEATTLE AND FACILITIES AND
MARITIME INDUSTRIES IN THE
SEATTLE HARBOR. THIS STRATEGIC
PLAN REFLECTS SEATTLE CITY
LIGHT'S COMMITMENT TO DELIVER
ON THEIR PARTNERSHIP WITH US
AND OUR SHARED INTEREST WITH
ZERO EMISSIONS FOR SEATTLE.
THANK YOU SO MUCH FOR THIS
GREAT WORK YOU ARE DOING. THANK
YOU.
>> THANK YOU. STEVEN KOVACH,
PLEASE PRESS STAR SIX.
>> HI, THIS IS STEVEN KOVACH. I
AM WITH THE INTERNATIONAL
BROTHERHOOD -- I AM A BUSINESS
REPRESENTATIVE AND REPRESENT
THE WORKERS AT SEATTLE CITY
LIGHT AND I WANT TO SPEAK IN
FAVOR OF CITY LIGHT STRATEGIC
LAN -- STRATEGIC PLAN AND
ENCOURAGE THE COMMITTEE TO PASS
IT TO THE FULL COUNCIL. THIS
PLAN INCLUDES THE RATE
STRUCTURE CITY LIGHTS NEED TO
CONTINUE TO REBUILD AGING
INFRASTRUCTURE AND BUILD THE
INFRASTRUCTURE NEEDED FOR GRID
RELIABILITY. THIS ALSO GIVES
CITY LIGHT THE ABILITY TO
RECRUIT AND RETAIN THE MOST
QUALIFIED ELECTRICAL WORKERS
AND REBUILD THE CURRENT STAFF
TO LEVELS NEEDED TO ENSURE THE
INFRASTRUCTURE WORK CAN BE
COMPLETED. BY BEING ABLE TO
REBUILD IT WILL ALLOW CITY
LIGHT TO EXPAND ITS
APPRENTICESHIP PROGRAM, THUS
ENSURING CITY LIGHT HAS THE
WORKERS NEEDED IN THE FUTURE.
THE CONTRACT WITH THE IBEW,
WHICH WHEN IMPLEMENTED WILL
ALLOW THEM TO ADVERTISE FOR
WORKERS WHO LEFT FOR BETTER
OPPORTUNITIES. THE BEST
OPPORTUNITY NOW IS TO WORK FOR
SEATTLE CITY LIGHT. WE WILL
PARTNER TO SEEK OUT AND
ENCOURAGE NEW WORKERS TO APPLY.
THERE ARE SEVERAL OPPORTUNITIES
FOR US TO DO THIS. SOME OF THE
BIGGEST ARE THE ANNUAL LINE
WORKER RODEOS THROUGHOUT THE
NORTHWEST. WE WOULD LOVE TO BE
ABLE TO HAVE BANNERS
ADVERTISING CITY LIGHT'S WAGES
AND BENEFITS AND ENCOURAGE THE
PEOPLE ATTENDING THESE RODEOS
TO APPLY. ALMOST ALL OF THE
ATTENDEES -- I WANT TO THANK
YOU FOR YOUR TIME AND AGAIN
PLEASE PASS IT THROUGH THE
COMMITTEE AND TO THE FULL
COUNCIL. THANK YOU.
>> THANK YOU. NANCY HIRSCH,
PLEASE PRESS STAR SIX.
>> GOOD MORNING. THANK YOU
CHAIR WOO, MEMBERS OF THE
COMMUNITY. MY NAME IS NANCY
HIRSCH WITH THE NORTHWEST
ENERGY COALITION, A NONPROFIT
BRINGING AFFORDABLE AND
ACCESSIBLE ENERGY. WE SUPPORT
THE NEW RATE PLAN. WE ALSO NOTE
THAT THE IMPACT ON RESIDENTS
AND CUSTOMERS IS LESS THAN THE
AVERAGE. THIS IS VERY
IMPORTANT. AS CITY LIGHT'S
PROGRAMS TARGETED TO LOW INCOME
ARE CRITICAL TO MAINTAINING
AFFORDABILITY. UTILITIES ACROSS
THE STATE AND THE REGION AND
THE COUNTRY ARE FACING SIMILAR
RATE PRESSURES AS THEY MAKE
IMPORTANT INVESTMENTS TO
MODERNIZE THE GRID, DECARBONIZE
THE SYSTEM AND BRING ON
RENEWABLE ENERGY.
ENERGY-EFFICIENT RESOURCES TO
MEET SIGNIFICANT, GROWING POWER
DEMANDS. CITY LIGHT INVESTS IN
THE SYSTEM OF THE FUTURE WHICH
INCLUDES COMMUNITY-BASED
PROJECTS AND TECHNOLOGY. SOLAR
RESOURCES AND A STRONG STRATEGY
FOR SALMON IMPACTED BY THE
HYDROELECTRIC PROJECT. A KEY
STRATEGY FOR CITY LIGHT WILL BE
TO MANAGE ELECTRICITY DEMAND TO
REDUCE PEAK ENERGY USE BY
CUSTOMERS DURING EXTREME
WEATHER EVENTS. THIS TAKES
INVESTMENT IN DISTRIBUTED
SOLAR, BATTERY TECHNOLOGIES.
BUT THEY WILL BE LOWER COST IN
PROVIDING POWER TO MEET PEAK
DEMANDS WHEN PRICES ARE
SPIKING. THIS IS KEY TO
BUILDING COMMUNITY RESILIENCE.
WE ARE IN THE MIDST
CHALLENGING TIME. WE ARE
EXCITED ABOUT THE STRATEGY
GOING FORWARD AND URGE
ADOPTION. THANK YOU.
>> THANK YOU AND THAT CONCLUDES
OUR LIST OF PUBLIC COMMENTERS.
>> THANK YOU. AS A REMINDER
MEMBERS OF THE PUBLIC ARE
ENCOURAGED TO SUBMIT PUBLIC
COMMENT ON THE CARDS AT THE
PODIUM OR EMAIL THE COUNCIL.
THERE ARE NO ADDITIONAL
REGISTERED SPEAKERS AND WE WILL
NOW PROCEED TO OUR ITEMS OF
BUSINESS. WILL THE CLERK PLEASE
READ THE FIRST ITEM INTO THE
RECORD?
>> AGENDA ITEM 1, APPOINTMENT
OF ERIC CHAN AS MEMBER OF THE
INTERNATIONAL SPECIAL REVIEW
DISTRICT BOARD FOR A TERM TO
NOVEMBER 30, 2025, FOR
BRIEFING, DISCUSSION AND
POSSIBLE VOTE.
>> THANK YOU. PRESENTERS PLEASE
COME TO THE TABLE AND ONCE
READY, PLEASE INTRODUCE
YOURSELVES.
>> THIS ISN'T FOR ME, RIGHT?
OKAY. YOU GO FIRST.
>> GOOD MORNING. MY NAME IS
MINH CHAU LE FROM THE HISTORIC
PRESERVATION PROGRAM. I AM HERE
FILLING IN FOR WHO WOULD
NORMALLY BE STAFFING THIS
PROCEEDING AND, ERIC, WOULD YOU
LIKE TO INTRODUCE YOURSELF?
>> HELLO, THANK YOU,
COUNCILMEMBERS AND THANK YOU
FOR HAVING ME HERE, ALSO. THE
BACKGROUND ABOUT ME AS MY
FAMILY OWNS SHEA GARDEN
RESTAURANT. WE HAVE BEEN
LOCATED IN THE INTERNATIONAL
DISTRICT FOR 21 YEARS, SO I
HAVE BEEN THERE SINCE I WAS 10
YEARS OLD. PRETTY MUCH ALWAYS
THERE EVERY DAY. SO I HAVE BEEN
IN THE COMMUNITY FOR 21 YEARS
AS WELL. I'VE SEEN IT GROW. I
WOULD LIKE TO SEE IT PRESERVED,
THE HISTORICAL CONTEXT.
ESPECIALLY IN THE HISTORICAL
DISTRICT, LOTS OF DIVERSITY AND
HISTORICAL LANDMARK BUILDINGS,
TOO. I THINK THOSE ARE REALLY
IMPORTANT. MY RESTAURANT IS
LOCATED IN A HISTORICAL
LANDMARK, ALSO. WE'VE ALSO HAD
CUSTOMERS FOR OVER 21 YEARS IN
THE COMMUNITY, SO I FEEL LIKE
WE HAVE A VOICE FOR SOME OF THE
FOLKS WHO DON'T SPEAK UP. WITH
THEY COME TO OUR RESTAURANT
PRETTY MUCH EVERY DAY AND LIKE
I SAID WE HAVE BEEN A COMMUNITY
FOR 21 YEARS AND HOPEFULLY WHAT
I BRING TO THE TABLE IS
PRESERVING THE HISTORICAL
CONTEXT -- THANK YOU.
>> CHAIRPERSON, WOULD IT BE
HELPFUL AT THIS TIME TO PROVIDE
A LITTLE BIT OF BACKGROUND
ABOUT THE DISTRICT?
>> THAT WOULD BE AMAZING, THANK
YOU.
>> OKAY, THANK YOU. AND AGAIN,
REBECCA WHO WOULD NORMALLY BE
STAFFING SENDS HER GREETINGS TO
CHAIRPERSON WOO AND THE
COMMUNITY. SO THE BOARD WAS
ESTABLISHED IN THE EARLY 1970S
AND AFTER 50 YEARS IT IS STILL
GOING STRONG. THE CORE
RESPONSIBILITY OF THE BOARD IS
TO EVALUATE AND MAKE DECISIONS
ABOUT PROPOSED CHANGES. BECAUSE
THE ISRD IS RECOGNIZED AS BEING
AN EXCEPTIONAL PLACE AND
BECAUSE THE ISRD HOLDS VALUE IN
THE HEARTS OF COMMUNITY
MEMBERS, THE BOARD'S WORK AND
ITS DECISIONS ARE VERY
IMPORTANT AND VERY IMPACTFUL.
THE BOARD CONSISTS OF SEVEN
MEMBERS IN TOTAL, TWO OF WHOM
ARE CONFIRMED BY COUNCIL AND
THE REMAINING FIVE ARE ELECTED
IN A COMMUNITY ELECTION PROCESS
THAT IS HELD ANNUALLY. IT IS
ONE OF VERY FEW BOARDS AND
COMMISSIONS THROUGHOUT THE CITY
OF SEATTLE WHERE THE PUBLIC HAS
A DIRECT ROLE IN DECIDING WHO
IT'S BOARD MEMBERS ARE GOING
TO BE. THEY NOMINATE AND VOTE
FOR THE BOARD MEMBERS. THE
COMPOSITION OF THE BOARD IS
VARIED AND INCLUDES PEOPLE WITH
ARCHITECTURAL BACKGROUNDS,
PROPERTY OWNERS, BUSINESS
OWNERS, RESIDENTS, DISTRICT
EMPLOYEES, ADVOCATES, AND MORE.
SO IN OTHER WORDS IT IS A GROUP
OF PEOPLE WITH A GREAT DEAL OF
COLLECTIVE WISDOM THAT IS WELL
POISED TO BE MAKING THESE
IMPORTANT DECISIONS ON BEHALF
OF THE CITY FOR THEIR
COMMUNITY. THE LAST THING I
WILL SAY ABOUT THE BOARD AS YOU
MAY HAVE NOTICED A SLIGHT
IRREGULARITY IN OUR PACKETS
TODAY. ERIC CHAN IS BEING
CONSIDERED FOR POSITION NUMBER
1 AND NORMALLY THAT WOULD BE A
COMMUNITY ELECTED POSITION.
HOWEVER, THIS YEAR THAT
POSITION UNEXPECTEDLY BECAME
VACANT DUE TO A RESIGNATION AND
THEREFORE PER THE ISRD BYLAWS
IT IS BEING FILLED IN A
DIFFERENT MANNER, THROUGH
MAYORAL APPOINTMENT AND
CONFIRMATION IN ACCORDANCE WITH
THE BYLAWS.
>> THANK YOU. COLLEAGUES, ANY
QUESTIONS OR COMMENTS?
COUNCILMEMBER STRAUSS.
>> THANK YOU FOR YOUR VOLUNTEER
SERVICE. I WILL HAVE THREE
QUESTIONS FOR YOU AND I START
WITH THE STATEMENT. AS A REPEAT
CUSTOMER OF YOUR RESTAURANT I
AM A HAPPY CUSTOMER EXCEPT WHEN
WE CAN'T GET A SEAT BECAUSE
YOU ARE TOO POPULAR. SO, KEEP
UP THE GOOD WORK. THANK YOU FOR
YOUR COMMITMENT TO OUR
COMMUNITY. WHEN JOINING THE
ISRD, FROM YOUR PERSPECTIVE
WHAT YOU SEE THAT IS GOING
WELL, WHAT MIGHT NEED TO
IMPROVE AND WHAT ARE YOU
LOOKING TO ACHIEVE OR ASSIST
WITH? IT SEEMS LIKE YOU HAVE
PROBABLY HAD SOME INTERACTION
WITH THE REVIEW BOARD BEFORE.
>> THANK YOU SO MUCH,
COUNCILMEMBER STRAUSS. I HAD MY
FIRST MEETING LAST WEEKEND I
OBSERVED HOW IT WENT. OBVIOUSLY
MY MAIN GOAL IS PRESERVATION.
MAINTAINING CHINATOWN-INTERNATI
ONAL DISTRICT. MAINTAINING WHAT
IT LOOKS LIKE ON THE OUTSIDE. I
KNOW THERE ARE LOTS OF NEW
BUILDINGS BEING BUILT AROUND
US, BUT WE ARE NOT GOING TO
FALTER. I WOULD LIKE TO
PRESERVE THE CULTURE THERE. IN
LOT OF ELDERS IN THE COMMUNITY.
WITH NEW THINGS BEING BUILT UP
WE WERE TALKING ABOUT NEW
BUSINESSES AND HOW IT WOULD
AFFECT THE COMMUNITY. I THINK
PUBLIC SAFETY IS ALSO A BIG
ISSUE FOR US IN THE
INTERNATIONAL DISTRICT. I THINK
THAT IS SOMETHING THAT IS BEING
LOOKED AT RIGHT NOW AND I
REALLY APPRECIATE EVERYONE
LOOKING INTO THAT AS WELL. I
THINK PRESERVATION OF THE
CULTURE THERE IS IMPORTANT AND
AM HOPING TO KEEP OTHER
BUSINESSES AROUND, MAKING THEM
FEEL SAFE AND WELCOME, BECAUSE
LIKE I SAID WE HAVE BEEN AROUND
FOR 21 YEARS. HOPEFULLY FOR
ANOTHER 21 MORE YEARS AND
HOPEFULLY MY COLLEAGUES AROUND
US STAY FOR AS LONG, TOO.
>> I SHARE YOUR HOPE TO BE
AROUND FOR AT LEAST ANOTHER 21
YEARS AND IF THE ONLY PROBLEM
YOU HAVE IS THAT YOU ARE
POPULAR, IT IS A GOOD PROBLEM
TO HAVE. MINH CHAU LE, I SEEM
TO SEE YOU EVERYWHERE. THANK
YOU FOR WHAT YOU DO AND ALL THE
DIFFERENT BOARDS. IT IS ALWAYS
NICE TO SEE YOU FROM DISTRICT
SIX POINT
>> THANK YOU. THANK YOU FOR
YOUR SERVICE AND WILLINGNESS TO
CONTRIBUTE. AS WE ALL KNOW,
CHINATOWN-INTERNATIONAL
DISTRICT IS ON THE LIST OF THE
MOST ENDANGERED NEIGHBORHOODS.
AND IT IS DEFINITELY A DUTY AND
A LEFT TO HAVE YOU ON THE
BOARD. YOU CONTINUE THE LEGACY
OF YOUR FAMILY BUSINESS IN THE
CHINATOWN-INTERNATIONAL
DISTRICT AND ALSO THE
PRESERVATION AND CULTURAL
ASPECTS OF THE DISTRICT'S
LEGACY, AS WELL. SO I AM VERY
EXCITED TO SEE YOU IN THIS
ROLE. I'VE KNOWN YOU FOR A
LONG TIME AND SO, EXCITED IN
ALL THAT YOU HAVE DONE AND WILL
CONTINUE TO DO. SO WITH THAT I
MOVE THAT THE COMMITTEE
RECOMMEND CONFIRMATION OF THE
APPOINTMENT. DO I HAVE A
SECOND?
>> SECOND.
>> WILL THE CLERK PLEASE CALL
THE ROLL ON THE CONFIRMATION OF
THE APPOINTMENT?
>> I WOULD LIKE TO ACKNOWLEDGE
THAT COUNCILMEMBER SAKA HAS
JOINED US.
>> VICE CHAIR MOORE.
>> 1047 POINT
>> COUNCILMEMBER SAKA. R MORALE
>> COUNCILMEMBER STRAUSS.
>> YES.
>> CHAIR WOO.
>> YES.
>> THE MOTION CARRIES. THANK
YOU FOR BEING HERE TODAY AND
SHARING YOUR STORY. SO WE WILL
NOW MOVE ON TO OUR NEXT ITEM OF
BUSINESS. WILL THE CLERK PLEASE
READ OUR SECOND ITEM INTO THE
RECORD.
>> AGENDA ITEM 2, RESOLUTION
32138, A RESOLUTION RELATED TO
THE CITY LIGHT DEPARTMENT,
ACKNOWLEDGING AND APPROVING THE
2024 INTEGRATED RESOURCE PLAN
PROGRESS REPORT AS CONFORMING
WITH THE PUBLIC POLICY
OBJECTIVES OF THE CITY OF
SEATTLE AND THE REQUIREMENTS OF
THE STATE OF WASHINGTON AND
APPROVING THE PROGRESS REPORT
FOR THE BIENNIUM SEPTEMBER 2024
THROUGH AUGUST 2026.
>> SO AS PRESIDING OFFICER I AM
NOW OPENING THE PUBLIC HEARING
ON RESOLUTION 32138. CLERK DO
WE HAVE ANY SPEAKERS SIGNED UP
FOR THE PUBLIC HEARING?
>> THERE WAS ONE, BUT THEY
SPOKE DURING GENERAL PUBLIC
COMMENTS AND THEY ARE NOT
PRESENT.
>> BEING THERE IS NOT A MEMBER
OF THE PUBLIC REGISTERED OR
PRESENT FOR THIS PUBLIC HEARING
ON RESOLUTION 32138, THIS
PUBLIC HEARING IS NOW CLOSED.
THIS WAS THE SECOND PUBLIC
HEARING ON THIS. THANK YOU TO
THE PUBLIC WHO REACHED OUT TO
OUR OFFICE WITH YOUR FEEDBACK
AND FOR SPEAKING EARLIER IN THE
PUBLIC COMMENT PERIOD. I SEE
THE COORDINATORS AND PRESENTERS
ARE AT THE COMMUNITY TABLE.
PLEASE INTRODUCE YOURSELVES AND
BEGIN.
>> THANK YOU. GOOD MORNING.
CHAIR WOO AND COUNCILMEMBERS,
WE ARE HAPPY TO BE BEFORE YOU
TODAY TO BRING FORWARD -- OR BE
HERE TO ANSWER QUESTIONS I
GUESS -- ABOUT THE 2024
RESOURCES PLAN. MY NAME IS DAWN
LINDELL AND I AM GENERAL
MANAGER AND CEO FOR SEATTLE
CITY LIGHT.
>> I AM PAUL DOCKERY, I USE
HE/HIM PRONOUNS AND IM WITH
CITY LIGHT.
>> MY NAME IS SIOBHAN DOHERTY
--
>> AND I BELIEVE WE ARE HERE TO
ANSWER QUESTIONS. IF THERE ARE
ANY QUESTIONS WE ARE HAPPY TO
ADDRESS AND ANSWER.
>> THANK YOU FOR BEING HERE
AGAIN TODAY. THANK YOU FOR THE
TIME YOU SPENT ANSWERING ALL OF
OUR QUESTIONS AND BRIEFING ALL
OF US SEPARATELY AND ALSO THANK
YOU FOR SPENDING THE TIME
ANSWERING ALL OF MY QUESTIONS.
WE CAN SEE THE MEMOS FROM
SEATTLE CITY LIGHT ON-AIR
AGENDA. SO I HAVE A COUPLE OF
QUESTIONS, BUT WANTED TO
QUICKLY ASK YOU, CAN YOU
EXPLAIN THE METHODOLOGY USED TO
FORECAST FUTURE ELECTRICITY
DEMAND AND HOW IT ACCOUNTS FOR
VARIOUS ECONOMIC SCENARIOS?
WALK US THROUGH SOME OF THE
CONSIDERATIONS.
>> YEAH, ABSOLUTELY. THANK YOU
FOR THE QUESTIONS AND WE
RESPONDED IN THE MEMO. WE
PROVIDED A HIGH LEVEL SUMMARY
OF OUR METHODOLOGY FOR END-USE
LOAD FORECASTING AND CAN ANSWER
FOLLOW-UP QUESTIONS. AS I
MENTIONED WE USE A MODERN
FORECASTING TECHNIQUE AND THAT
EVALUATES OUR CONSUMPTION BASED
ON DIFFERENT SECTORS LIKE
RESIDENTIAL, COMMERCIAL AND
INDUSTRIAL AS WELL AS SEGMENTS
LIKE SINGLE-FAMILY HOMES,
MULTIFAMILY HOMES OR INDUSTRIAL
SPACES AND END USES LIKE
HEATING AND COOLING LOADS AND
DIFFERENT EQUIPMENT. WE USE
THAT TO INCORPORATE DIFFERENT
PROJECTIONS FOR ECONOMIC
INDICATIONS AS WELL AS
INCORPORATING MODERN CLIMATE
SCIENCE INTO OUR EXPECTATION OF
TEMPERATURE CHANGES OVER THE
COURSE OF THE STUDY PERIOD. WE
USE 30 YEARS OF WEATHER
SCENARIOS THAT HAVE BEEN
ADJUSTED FOR CLIMATE CHANGE TO
MODEL HOW HER LOAD CAN CHANGE
OVER THE NEXT 20 YEARS OF THE
STUDY PERIOD. IN THIS 2024
PROGRESS REPORT THE LARGEST
IMPACT TO OUR LOAD FORECAST
SINCE THE 2022 INTEGRATED
RESOURCE PLAN WAS ADDITIONAL
ELECTRIFICATION BASED ON THE
ADOPTION OF NEW POLICIES BY THE
CITY AND BY THE FEDERAL
GOVERNMENT'S INCENTIVES FOR
ADDITIONAL BUILDING
ELECTRIFICATION AND
TRANSPORTATION ELECTRIFICATION.
SO IN THAT WE DID SEE A
SIGNIFICANT PEAK LOAD INCREASE
BETWEEN NOW AND THE END OF THE
STUDY PERIOD IN 2040 AS WELL AS
ADDITIONAL INCREASES. BUILDING
ELECTRIFICATION, TRANSPORTATION
ELECTRIFICATION AS WELL AS
POPULATION TRENDS FOR THE CITY.
YOU HAVE ADDITIONAL FOLLOW-UP
QUESTIONS I CAN ANSWER?
>> THANK YOU FOR THAT. FOR
CLARIFICATION THIS IS A
PROGRESS REPORT OF CURRENT
ACQUISITIONS. THIS DOES NOT
INCLUDE FUTURE ACQUISITIONS,
THE ACQUISITION PLAN FOR
FUNDING TO MEET THE DEMAND THAT
WAS FORECASTED?
>> THAT IS CORRECT AND GOOD
ADDITIONAL FRAMING ON WHAT ARE
2024 PROGRESS REPORT IS. IT IS
A STUDY OF THE RESOURCES
NECESSARY TO MEET THE EXPECTED
LOAD GROWTH IN THE UTILITY. IT
IS NOT APPROPRIATIONS. NOT A
LIST OF THINGS WE WILL ACQUIRE
OR FUNDS. IT IS REALLY MEANT TO
BE A STUDY OF THE TYPES OF
RESOURCES WE EXPECT TO NEED
OVER THE PERIOD. ANY
ACQUISITIONS OR CONTRACTS FOR
RESOURCES WOULD BE A SEPARATE
AND RELATED UTILITY FUNCTION
AND WOULD COME BACK BEFORE THE
COUNCIL AT THAT TIME.
>> THANK YOU. SO WHAT METRICS
AND BENCHMARKS WILL BE USED TO
MEASURE THE SUCCESS AND
COST-EFFECTIVENESS OF THE
PROPOSED RESOURCE PLAN OVER
TIME?
>> ONE OF THE IMPORTANT
COMPONENTS OF THE 2024 PROGRESS
REPORT IS AN UPDATE ON THE 2022
INTEGRATED RESOURCE PLAN AND
WHEN WE DEVELOPED THESE PLANS
WE ARE LOOKING AT METRICS
AROUND HOW RELIABLE OUR POWER
SUPPLY IS TO SUPPORT THE GROWTH
OF THE UTILITY AND AS I
MENTIONED BEFORE, SINCE THIS IS
BUDGET, THESE RESOURCES WOULD
BE ACQUIRED THROUGH A SEPARATE
PROCESS. THOSE METRICS FOR HOW
EFFECTIVE WE ARE AT ACQUIRING
RESOURCES WOULD BE A SEPARATE
UTILITY FUNCTION.
>> I WOULD ADD THAT THE IRP IS
UP DATED EVERY FOUR YEARS -- SO
WE WILL IMMEDIATELY START OUR
NEXT IRP AND AS WE ACQUIRE
RESOURCES THAT WILL GO INTO
THOSE PLAN UPDATES, SO YOU WILL
SEE HOW WE ARE TRACKING TOWARD
CHANGES IN LOAD AND THE LOAD
CHANGES WE ARE SEEING.
>> THANK YOU. COLLEAGUES, ANY
QUESTIONS OR COMMENTS?
COUNCILMEMBER 1027 POINT
>> I AM HOGGING THE MIC OVER
HERE, BUT I AM GOING TO SPEAK
TO A COUPLE OF THE SLIDES HERE.
JUST BY PULLING THEM UP --
>> I HAVE IT IN FRONT OF ME IF
YOU TELL ME WHAT SIDE YOU WANT
TO GO TO.
>> S, LET'S START WITH SLIDE
FIVE. I HELD QUESTIONS OF THE
LAST MEETING BECAUSE WE WERE
SHORT ON TIME. HERE THEY ARE.
SO LOOKING AT WHAT WAS SAID
ABOUT EVERY FOUR YEARS WE HAVE
THE PLAN AND EVERY TWO YEARS
THE UPDATE. WHAT I APPRECIATE
ABOUT THIS IS WE HAVE SUCH A
CHANGING CLIMATE THAT IT IS MY
UNDERSTANDING WE ARE USING 30
YEARS OF WEATHER DATA. IS THAT
CORRECT?
>> THAT'S CORRECT.
>> AND HOW ARE YOU I GUESS
ADDRESSING CLIMATE CHANGE? HOW
ARE YOU FACTORING THAT IN THE
MODEL? IT WAS THE WARMEST JULY
WE HAD OR SOMETHING TO THAT
DEGREE. EVERY YEAR IT FEELS
LIKE IT IS THE WARMEST, THE
MOST OF SOMETHING REGARDING THE
CLIMATE. HOW IS THAT FACTORING
IN YOUR PROJECTION?
>> THANK YOU FOR THE QUESTION,
COUNCILMEMBER STRAUSS. WE DO
INCORPORATE SCIENCE TO THE
FUTURE LOADS. TO DO THAT WE USE
GLOBAL CLIMATE MODELS.
IMPORTANTLY, OUR UTILIZATION OF
THE END-USE LOAD FORECAST
ALLOWS US TO INCORPORATE
INTERACTION EFFECTS OF EXTREME
HEAT EVENTS AND COLD EVENTS AND
THE ADOPTION OF COOLING AND AIR
COOLING AND THE IMPACT ON PEAK
LOADS. 30 YEARS OF WEATHER DATA
OVER THAT 20 YEAR PERIOD BASED
ON MODERN SCIENCE TO MAKE SURE
WE ARE ADDRESSING HOW THOSE
EXTREME TEMPERATURES WILL
IMPACT OUR LOADS. IMPORTANTLY
ONE OF THE THINGS WE CONTINUE
TO WORK ON AND WORK WITH THE
UNIVERSITY OF WASHINGTON
CLIMATE IMPACT GROUP TO IMPROVE
THE DOWNSCALING OF MODELS USED
IN OUR FORECASTING. RIGHT NOW
WE DO NOT INCORPORATE THE
IMPACT OF CLIMATE CHANGE ON
STREAM FLOWS, BECAUSE WE HAVE
NOT GOTTEN GOOD DATA SETS TO
THE LEVEL NECESSARY FOR HYDRO
MODELING, BUT WE ARE WORKING
WITH THE UNIVERSITY OF
WASHINGTON TO DO THAT. WE HOPE
TO HAVE THAT IN PLACE FOR THE
NEXT PROGRESS REPORT AND AS YOU
MENTIONED, TO ADDRESS THESE
REPORTS EVERY TWO YEARS. AS WE
LEARN MORE ABOUT CLIMATE CHANGE
AND IMPACTS, WE NEED TO KEEP
UPDATING OUR UNDERSTANDING. I
WOULD ALSO ADD THAT WE HAVE
BEEN INCORPORATING CLIMATE
CHANGE INTO OUR INTEGRATED
RESOURCE PLAN SINCE 2016.
>> THANK YOU, BECAUSE I KNOW
FOR OUR UTILITY IT IS BOTH THE
GENERATION AND THE USAGE. SLIDE
SEVEN, LOOKING AT THE LOAD
FORECAST, CAN YOU CONFIRM FOR
ME THE BROWN LINE IS WHAT YOU
PREDICTED IN 2020 AND THE RED
LINE IS WHAT YOU PREDICTED
TODAY, IS THAT ACCURATE?
>> CORRECT. SINCE THE LOAD
FORECAST WE USED IN THE 2022
IRP WAS ACTUALLY THE 2020 LOAD
FORECAST. THIS TIME WE ARE
USING THE 2023 LOAD OR GUEST,
WHICH IS THE MOST RECENT FOR
THIS PROGRESS REPORT.
>> KIND OF THE CRAFTS CAN FEEL
SKEWED BECAUSE OF THE UNITS,
BUT THIS LOOKS LIKE A LARGE
CHANGE IN THE PAST THREE YEARS.
IS THAT DRIVEN BY CLIMATE
CHANGE? IS THAT DRIVEN BY
BUILDINGS ELECTRIFYING OR
TRANSPORTATION? IN THE LAST
THREE YEARS AND THE PUSH FOR
EV'S, WE DID NOT HAVE AN
ELECTRIC FORD F-150 THREE YEARS
AGO, SO HOW DO THESE NUMBERS
CHANGE?
>> WE GO INTO MORE DETAIL IN
THE PROGRESS REPORT, BUT THE
LARGEST DRIVERS ARE BUILT --
ARE BUILDING ELECTRIFICATION
AND TRANSPORTATION
ELECTRIFICATION. AS THE
ADOPTION OF NEW TECHNOLOGIES
FOR END-USE ELECTRIC SERVICE.
>> AND BUILDING ELECTRIFICATION
TRIPLED IN THIS TIMEFRAME AND
THE LOAD FOR ELECTRIFICATION, I
SHOULD SPECIFY THAT. THE LOAD
FOR ELECTRIFICATION TRIPLED AND
THE LOAD FOR TRANSPORTATION
ELECTRIFICATION GREW 70%. THESE
ARE SIGNIFICANT AND AS WE
CONTINUE TO LOOK AT THE LAST
FIVE YEARS OUT OF THE 25, WHICH
OF COURSE IN 2022 WAS ABOUT TWO
YEARS. THE LAST 25 OR 30 YEARS.
WE ARE SEEING THAT IMPACT.
SIGNIFICANTLY MORE WEATHER
EVENTS. SO AS WE LOOK AT OUR
INTEGRATED RESOURCES PLAN GOING
FORWARD, AS PAUL MENTIONED, WE
WILL DEFINITELY BE
INCORPORATING SOME SORT OF
AWAIT ON THE MORE CURRENT
NUMBERS TO ACCOUNT FOR THAT.
>> THANK YOU AND LUCKILY WE
DON'T HAVE TO MEET THESE
ANNUAL PEAKS TODAY. WE ARE
LOOKING OUT FOR 10 YEARS FROM
NOW OR 16 YEARS FROM NOW. AND
AGAIN, JUST NOTING THAT THESE
ARE THE PEAKS. THESE ARE NOT
THE CONSTANCE. IF WE COULD MOVE
ON TO SLIDE EIGHT, THOSE ARE
OUR NEEDS. HOW DO WE GET THERE?
SOMETHING I SEE HERE THAT WAS
NOT IDENTIFIED BEFORE, I
NOTICED THE ENHANCED
GEOTHERMAL.
>> CAN YOU SPEAK MORE INTO YOUR
MICROPHONE? THANK YOU.
>> IT IS ONE OF MY FAVORITE
THINGS TO SAY, SO I APPRECIATE
YOU HOLDING ME TO IT AS WELL.
SO WHEN I AM LOOKING AT SLIDE
EIGHT, WE JUST TALKED ABOUT OUR
NEEDS FOR THE PEAK. THIS IS
ALSO VERY IMPORTANT. I DON'T
KNOW IF THERE IS ANOTHER SIDE
THAT GETS INTO THE
YEAR-BY-YEAR. HOW DOES
GEOTHERMAL ENTER THIS
CONVERSATION? I KNOW WE HAVE
VOLCANOES NEARBY AND I AM
ASSUMING IT IS DIFFICULT TO
TRANSFER THAT ENERGY FOR MOUNT
RAINIER OVER HERE. CAN YOU TALK
ABOUT THAT.
>> ABSOLUTELY. ONE OF THE
CONCLUSIONS OF THIS PROGRESS
REPORT IS THE NEED TO LOOK AND
STUDY MORE RESOURCES LIKE THIS
ENHANCED GEOTHERMAL RESOURCE
AND WE MODELED THIS USING
ANALYSIS FROM THE NATIONAL
RENEWABLE ENERGY LABORATORIES
AND SCENARIOS FOR NEW
GEOTHERMAL TECHNOLOGIES. THESE
ARE ADVANCED, ENHANCED
GEOTHERMAL TECHNOLOGIES, WHICH
ARE NEW TECHNIQUES FOR
EXTRACTING GEOTHERMAL RESOURCES
THAT ARE NOT AS DEPENDENT ON
THE EXISTENCE OF ALL THREE
COMPONENTS OF GEOTHERMAL. THE
HEAT, THE STEAM, AND THE
LOCATION. SO THIS IS FAIRLY,
FRANKLY, NAIVE MODELING OF THIS
RESOURCE. WE BELIEVE WE NEED TO
SPEND MORE TIME NOT ONLY
EVALUATING THIS RESOURCE, BUT
ADDITIONAL TYPES OF RESOURCES
LIKE THIS THAT CAN RELIABLY
MEET LOAD SERVICE NEEDS. ONE OF
THE VALUES IN THIS RESOURCE IN
THE ENVIRONMENT WE ARE FACING
IS THE HIGH CAPACITY FACTORS,
UTILIZING TRANSMISSION
RESOURCES MORE RECENTLY. HAVING
A HIGHER CAPACITY FACTOR AND
USING THAT VERY EFFICIENTLY AND
WE SEE THAT IN ANOTHER AREA OF
NEED IN OUR EVALUATION,
UNDERSTANDING HOW ARE RESOURCE
CHOICES IMPACT TRANSMISSION --
ANYTHING YOU WOULD LIKE TO ADD?
>> YOU KNOW, THE OTHER KINDS OF
CLEAN, FIRM GENERATION, I THINK
IT IS JUST WORTH NOTING, THOSE
ARE THE SOURCES WE CAN DEPEND
ON EVERY HOUR OF EVERY DAY, NO
MATTER WHAT THE WEATHER. SO
HYDROPOWER OF COURSE IS OUR
BEST RATE HERE IN THE BEAUTIFUL
NORTHWEST. WE HAVE ALL OF THIS
WONDERFUL HYDROPOWER THAT HAS
ENABLED US TO HAVE THE
ADVANTAGE OF A VERY GOOD,
STRONG, CLEAN RESOURCE. THE
OTHER VIABLE SOURCES ARE
GEOTHERMAL, WHICH IS WHAT WE
PUT INTO THE MODEL, AND SMALL
MODULAR REACTORS TODAY. PEOPLE
ARE WORKING ON FUSION. I
BELIEVE THERE ARE AT LEAST FOUR
COMPANIES IN SEATTLE WORKING ON
THE FUSION QUESTION THAT HOLDS
POTENTIAL. PEOPLE TALK ABOUT
HYDROGEN AS AN OPTION. TO MAKE
CLEAN HYDROGEN REQUIRES THREE
MEGAWATTS OF CLEAN ENERGY TO
MAKE ONE MEGAWATT WORTH OF
HYDROGEN. HOWEVER, THE ONE
MEGAWATT IS FIRM, MEANING WE
CAN STORE IT AND WE CAN USE IT
WHEN WE NEED IT, BUT IT IS FOUR
TIMES THE COST. IT IS HUGELY
EXPENSIVE AS AN OPTION, BUT
MAYBE IT WILL TURN OUT TO BE
SOMETHING THAT WE LOOK AT. WE
WILL KEEP ALL OF OUR OPTIONS
OPEN. THE MODEL GOBBLED UP
GEOTHERMAL EVEN AT A
CONSIDERABLY HIGHER PRICE OF
THE OTHER OPTIONS AS SOON AS IT
WAS AVAILABLE, BECAUSE IT IS
FIRM AND AVAILABLE ALL THE
TIME. DO HAVE ROOM IN OUR
PORTFOLIO FOR ADDITIONAL SOLAR
AND WIND. AND TO BE ABLE TO
RELIABLY PROVIDE ENERGY WITH
THOSE RESOURCES AND WE MAKE THE
MOST USE OF SOLAR WIND AND
BATTERIES AS WE CAN.
>> AND MAYBE IF WE CAN MOVE TO
SLIDE 13. I REALIZE I GOT AHEAD
OF MYSELF. I WILL BE MOVING
BACK TO ASK ABOUT PEAKS AND
LOWS. THE QUESTION BECOMES,
WHAT IF GEOTHERMAL DOES NOT
WORK? WHAT I APPRECIATE ABOUT
THE DEPARTMENT OF COMMERCE IS
THE REQUIREMENT TO FILE THIS
REPORT EVERY TWO YEARS WITH AN
UPDATE EVERY FOUR YEARS.
LOOKING AT GEOTHERMAL ON OUR
PLAN FOR EIGHT YEARS FROM NOW,
AND THAT ALLOWS US IN THE
INTERIM, IF SOMETHING DOES NOT
WORK, FOR US TO ADJUST. THE
BIGGER PROBLEM WOULD BE IF WE
WEREN'T PLANNING FOR IT AND
WHAT WAS REALLY HELPFUL TO HEAR
FROM YOUR TEAM IN OUR MEETING,
EVERY TWO YEARS WE ADD TWO
YEARS TO THIS PLAN AND THINGS
CHANGE. AND SO I KNOW I BROUGHT
UP A NEW TECHNOLOGY THAT MAY OR
MAY NOT WORK. I WANTED TO MAKE
SURE TO BRING THIS BACK TO THE
REALITY THAT IF IT DOES NOT
WORK IT IS OKAY BECAUSE WE ARE
SETTING OURSELVES UP WITH
ENOUGH TIME TO PLAN. IF WE
COULD GO BACK TO SLIDE 10. IF
YOU COULD BRIEFLY DESCRIBE THIS
SLIDE, BECAUSE IT WILL INFORM
MY QUESTIONS ON SLIDE 11 AND
12.
>> THIS IS PART OF THE 2024
PROGRESS REPORT. ONE OF THE
THINGS WE ARE TAKING TIME TO DO
IS INCORPORATE SOME NEW
PRESENTATION INFORMATION AND
THIS IS ONE OF THE NEW GRAPHS
WE ARE SHOWING. IT SHOWS A
TYPICAL DAY FOR EACH MONTH OF
THE YEAR. SO IN THIS KEY WE ARE
SHOWING ONE DAYS LOAD. A RAMP
IN THE MORNING. A LOWELL IN THE
MIDDLE OF THE DAY AND A RAMP IN
THE EVENING. THE NEXT FEW
SLIDES YOU WILL SEE A TYPICAL
LOAD SHAPE FOR EACH MONTH OF
THE YEAR. SO WE HAVE 12 TYPICAL
LOADS, REPRESENTATIVE DAYS
LOAD, ONE FOR EACH MONTH OF THE
YEAR. THAT HELPS ARTICULATE
WHERE WE SEE STRESS AND HOW OUR
RESOURCES NEED TO MEET
DIFFERENT LOADS THROUGHOUT THE
YEAR.
>> SO THIS SLIDE RIGHT HERE IS
JUST SHOWING ONE DAY. THE NEXT
TWO SLIDES ARE USING ONE DAY AS
MEG SAMPLE FOR EVERY MONTH OF
THE YEAR, IS THAT AN EXAMPLE?
>> WELL SAID.
>> LET'S ROLL ONTO SLIDE 11.
>> AS I MENTIONED, ONE DAY FOR
EACH OF THE 12 MONTHS. THE
BLACK LINE IS THE MEDIAN LOAD
FOR THE STUDY PERIOD AND WE ARE
SHOWING THE YEAR 2025. THE
ORANGE, DARK LINES ARE THE
ACTUAL LOADS FROM STRESS EVENTS
AND THE ORANGE BAND IN THE
BACKGROUND ARE THE FULL RANGE
OF SIMULATED LOAD FOR THAT
HOUR, FOR THAT MONTH. ONE OF
THE IMPORTANT THINGS, WE AS
ANALYSTS LOOKING AT THIS GRAPH,
IS SEEING THAT EXTREME EVENTS
LIKE MLK WEEKEND, WHICH SHOWS
UP IN JANUARY, THAT THE PEAK
DAY WHERE WE SAW HISTORIC PEAKS
IS ALIGNED WITH THE TOP OF OUR
SIMULATED BAND. THAT SHOWS THE
WEATHER FORECAST AND ADAPTATION
OF OUR LOAD FORECAST BASED ON
THE SIMULATED WEATHER IS A GOOD
REPRESENTATION OF THE TYPES OF
LOAD WE CAN EXPECT TO SEE AND
IN FACT LOADS THAT WE DID SEE
UNDER PEAK CONDITIONS FELL
WITHIN THAT BAND. AS AN
INDICATION.
>> SO WE ARE SEEING THIS AT THE
TOP OF OUR PREDICTED BAND.
>> CORRECT.
>> I KNOW WHEN I WAS GROWING UP
THE SUMMERS WERE COOL ENOUGH
THAT YOU COULD ONLY DEPEND ON
THE FIRST WEEKEND OF AUGUST TO
ACTUALLY THAT
CLEARLCASE RIGHT NOW.
MORE AIR CONDITIONING AS WE
MOVE INTO A HOTTER CLIMATE
HERE, HOW HAS THAT CHANGED THIS
MODELING? WAS IT PREVIOUSLY THE
SUMMER WAS THE LOW IN THE
WINTER WAS THE HIGH?
>> EVEN IN THIS LOAD FORECAST
WE STILL SEE THE WINTER PEAKS
BEING THE DRIVER AND THAT IS
LARGELY BECAUSE OF BUILDING
ELECTRIFICATION AND THE
ADOPTION OF ELECTRIC HEATING.
WHEN WE GET HEAT PUMPS, WE GET
BOTH ELECTRIC HEAT IN THE
WINTER AND AIR CONDITIONING IN
THE SUMMER AND THIS LOAD
FORECAST DOES INCORPORATE
INCREASED LOAD IN THE SUMMER,
BUT THE INCREASED AIR
CONDITIONING LOAD DOES NOT
IMPACT OUR LOAD AS MUCH AS THE
HEATING IN THE WINTER, SO WE
STILL SEE WINTER IS THE PEAK.
BUT OUR SUMMER PEAKS ARE STILL
GROWING AND GROWING FASTER THAN
WE WOULD'VE DONE WITHOUT
BUILDING ELECTRIFICATION.
>> A NEW PERSON QUESTION. WHY
ARE THERE TWO PEAKS IN THE
WINTER? FOR EACH DAY THAT IS?
>> IT IS KIND OF A BEHAVIORAL
THING. IN THE WINTER IT IS
DARKER IN THE MORNING AND IT
GETS DARKER EARLY AT NIGHT. SO
WE SEE MORE LIGHTING NEEDS IN
THE MORNING AND EVENING,
WHEREAS IN THE SUMMER YOU HAVE
THE SAME BEHAVIORAL PATTERNS,
BUT YOU DON'T USE AS MUCH
LIGHTING. AND ULTIMATELY YOU
ARE ALREADY HIGHER BECAUSE OF
PROCESS TEAT AND HEATING NEEDS,
GENERALLY. YOU END UP WITH
THOSE SPIKING SHOULDERS DURING
THE DAY.
>> IF I WAS USING THIS MODEL,
OUR PEAK TODAY IS GOING TO BE
ABOUT 4:30, 5:00? IS THAT A
GOOD ESTIMATE?
>> IT IS GOOD.
>> ALL RIGHT, LOOKING AT THE
NEXT SLIDE, THIS IS REALLY WHEN
MY QUESTIONS ARE COMING. THANKS
FOR WALKING ME THROUGH THAT
BACKGROUND SO WE ARE ABLE TO
TALK ABOUT THIS. CAN YOU SHARE
WHAT THE DIFFERENCE IS IN THE
BLUE? THE MORE TRANSPARENT
COLORS, THE BANDS, THE BLUE AND
THE ORANGE, WHAT'S GOING ON?
>> AS WE WALKED THROUGH THIS
SLIDE, THE ORANGE LINE, WHICH
IS THE LOAD FOR EXTREME DAYS,
STAYED THE SAME. THEN WHAT WE
ARE DOING IS THE BAND, THE
ORANGE BAND WHICH IS THE
SIMULATED LOADS FOR THAT DAY IS
NOW REPRESENTING 2035 LOADS. SO
IF WE GO 10 YEARS INTO THE
FUTURE, WHAT LOADS DO WE EXPECT
GIVEN THAT CLIMATE CHANGE
ADJUSTED LOAD BOTTLE AND
BUILDING ELECTRIFICATION AND
TRANSPORTATION ELECTRIFICATION?
THAT WOULD BE THE TOP OF THAT
ORANGE BAND. SO SPECIFICALLY IN
JANUARY 2024 YOU WILL SEE OUR
MOST RECENT LOAD WAS AROUND
2026 MEGAWATTS. THIS SIMULATION
SAYS THAT IN 2035 PEAK LOAD IN
JANUARY COULD BE AS MUCH AS
2300 MEGAWATTS. AND WHAT THE
INTEGRATED RESOURCE PLAN IS
DOING IS TRYING TO BUILD A
PORTFOLIO OF RESOURCES THAT CAN
MEET NOT JUST THE PEAK WE JUST
SAW, BUT RELIABLY MEET THE
PEAKS WE ARE EXPECTING TO SEE
IN THE FUTURE. THE OTHER THINGS
ON THIS GRAPH, WE INCLUDED THE
BLUE LINE WHICH IS HOW OUR
GENERATION ACTUALLY PERFORMED
DURING THOSE EXTREME EVENTS.
THE ACTUAL GENERATION FROM OUR
PORTFOLIO DURING THAT DAY. AND
THE BLUE BAND IS OUR GENERATION
BAND, HOW WELL OUR GENERATION
PERFORMS AS WE STUDY IT. THE
BLUE BAND AND BLUE LINE ARE
WITHOUT ANY NEW RESOURCES ADDED
TO OUR PORTFOLIO.
>> I'M SEEING IN JANUARY,
JUNE, A LITTLE BIT IN OCTOBER,
BUT NOVEMBER AND DECEMBER THAT
ARE FORECASTED NEEDS ARE HIGHER
THAN OUR FORECASTED GENERATION.
IS THAT ESSENTIALLY WITH NEW
LOADS? ARE YOU INCLUDING ALL OF
THAT GEOTHERMAL, THE SOLAR, THE
BATTERY? IS THAT INFLUENCING
THIS OR ARE YOU CALLING OUT
THAT WE NEED TO DO MORE TO HAVE
THE BLUE HIGHER THAN THE
ORANGE?
>> THE ADDITION OF WIND AND
SOLAR AND GEOTHERMAL IS TO GET
THE BLUE RELIABLY HIGHER THAN
THE ORANGE. WHEN THE ORANGE
BAND IS HIGHER THAN THE BLUE
BAND, IT MEANS THAT YOU NEED
MORE RESOURCES TO MAKE SURE
THOSE ARE MET. THE BLUE BAND
DOES NOT INCLUDE NEW RESOURCES.
THE NEXT SLIDE IS THE RESOURCES
WE NEED IN ORDER TO MAKE SURE
THE BLUE BAND IS WHERE WE NEED
IT TO BE.
>> THAT WAS PROBABLY THE MOST
HELPFUL PART, UNDERSTANDING
THAT THE NEXT SLIDE IS WHAT
GETS OUR BLUE BAND ABOVE ARE
ORANGE. BEFORE WE MOVE ON I
WILL GIVE YOU A PLUG FOR YOUR
RATE PATH. COLLEAGUES, THANK
YOU FOR LISTENING TO ALL OF OUR
QUESTIONS. THE ORANGE LINE AND
THE BLUE LINE. THE BLUE IS
HIGHER THAN THE ORANGE. WE GET
TO SELL OUR POWER AT A VERY
HIGH RATE, WHICH IS WHAT KEEPS
OUR RATE PATH LOWER THAN IT
WOULD BE OTHERWISE. JUST WANTED
TO NOTE THAT. TO SUMMARIZE ALL
OF MY QUESTIONS AND WHAT YOU
PRESENTED HERE, TO GET THE BLUE
SHADED AREA ABOVE THE ORANGE IS
YOUR NEXT SLIDE, CORRECT?
>> THAT'S CORRECT.
>> YOU WANT TO SHOW THAT AND IT
WILL EXPLAIN WHY I AM
SUPPORTING THIS IRP TODAY?
>> YEAH, SO AS YOU WALKED US
THROUGH, IN ORDER TO RELIABLY
SERVE THE INCREASING LOAD WE
NEED TO ADD TO OUR PORTFOLIO
SUFFICIENTLY SO WHEN WE SEE
EXTREME EVENTS LIKE IN JANUARY
WE HAVE A PORTFOLIO OF
RESOURCES TO MEET THAT NEED AND
WHAT THIS SHOWS IS THE
YEAR-BY-YEAR BREAKDOWN OF THE
RESOURCES THAT WE SHOWED AT THE
TABLE IN THE BEGINNING. YOU SEE
SOLAR AND BATTERIES. WE STARTED
OFFERING ENHANCED GEOTHERMAL
TECHNOLOGY IN 2032 AND IF THIS
STUDY PICKED UP ALL OF THAT
ENHANCED GEOTHERMAL AS SOON AS
IT WAS OFFERED AND DID NOT
START PICKING UP WIND AND SOLAR
AGAIN UNTIL AFTER YOU DEPLETED
THE FULL UTILIZATION OF THAT
RESOURCE, AS MENTIONED THAT WAS
ALL OF THE RESOURCE WE OFFERED.
400 MEGAWATTS AND AS SOON AS WE
OFFERED IT -- REGARDLESS, AS
YOU ARTICULATED THE NEAR-TERM
STEPS REMAIN THE SAME. SOLAR
AND WIND ARE COMMERCIALLY
AVAILABLE RESOURCES.
>> WONDERFUL. THAT IS MY LAST
QUESTION. WE WILL SEE YOU BACK
IN TWO YEARS FOR THE UPDATE TO
THIS PLAN. BETWEEN HERE AND
THERE, BETWEEN HERE AND 2026,
WHAT ARE THE PROJECTIONS FOR
OBTAINING THAT SOLAR? ARE WE ON
TRACK?
>> WE WILL BE BACK HERE. THAT
IS PART OF OUR OTHER UTILITY
FUNCTION, TO ACQUIRE RESOURCES
AND ACQUISITION THOSE. WE WILL
BE BACK IN FRONT OF YOU TO GET
APPROVAL FOR THOSE RESOURCES.
ANYTHING ELSE?
>> THAT IS GREAT. WE WILL GO
OUT AND SEE WHAT IS AVAILABLE
ON THE MARKET. WE WILL FIND THE
RESOURCES AT THE LOWEST COST
POSSIBLE AND TRY TO FILL IN THE
GAPS.
>> WONDERFUL.
>> THANK YOU. COUNCILMEMBER
MOORE.
>> THANK YOU. THANK YOU FOR THE
PRESENTATION AND FOR THE
ADDITIONAL MATERIALS YOU
PROVIDED. THE ANSWERS TO
QUESTIONS CHAIR WOO SUBMITTED.
I GUESS I JUST HAVE A NUMBER OF
QUESTIONS AND CONCERNS. I NOTE
THAT IN THE ANSWERS TO THE
QUESTIONS, THAT YOU NOTE REALLY
THE MAIN DRIVER HERE IS
ELECTRIFICATION.
ELECTRIFICATION GROWTH FOR
BUILDINGS, BUT MORE IMPORTANTLY
FOR TRANSPORTATION. THAT IS
WHERE IT IS GOING TO BE IN THE
ELECTRICITY COSTS AND NEEDS,
BUT THEN I NOTE THAT YOU ALSO
STATE IN RESPONSE TO A QUESTION
ABOUT THE IRP THAT
UNFORTUNATELY ANALYSIS FOR THE
PROGRESS REPORT WAS NOT
COMPLETED IN TIME TO INFORM THE
2025 STRATEGIC PLAN RATE PATH
AND THE FINAL RESULTS OF THE
2024 IRP INDICATE THE AMOUNT OF
NEW RENEWABLE RESOURCES
REQUIRED WILL LIKELY BE GREATER
IN THE YEARS 2027 TO 2030, THEN
IDENTIFIED IN THE STRATEGIC
PLAN. THE EXACT AMOUNTS AND
IMPACT WILL BE BETTER KNOWN AS
WE GET MORE INFORMATION. SO I
AM JUST A LITTLE CONCERNED THAT
WE HAVE NOT ACTUALLY BEEN ABLE
TO INCORPORATE THE PROGRESS
REPORT INTO CALCULATING THE
RATES AND I AM JUST WONDERING
IF YOU CAN ADDRESS THAT.
>> I CAN START US OFF. THE
TIMING FOR THE AREA RESOURCE
PLAN, WHICH IS REQUIRED IN THE
STRATEGIC PLAN WAS A LITTLE BIT
OFF. YOU ARE RIGHT, THE FOLD
IRP WAS NOT COMPLETE WHEN WE
DID THE STRATEGIC PLAN MODELING
LAST YEAR. IT IS VERY SIMILAR
TO WHAT IS BETWEEN THE IRP. THE
SOLAR IS VERY SIMILAR. THERE IS
SLIGHTLY LESS WIND IN THE
STRATEGIC PLAN, BUT IN THE
FIRST TWO YEARS IT IS
INCORPORATING THE RIGHT AMOUNT
OF RESOURCES FOR THAT TIMELINE
AND THAT RATE PATH. WE DID
INCLUDE NEW RESOURCES IN THE
RATE PATH AND WE ARE LOOKING
FOR THE NEXT IRP TO HAVE THAT
COMPLETE BEFORE WE ARE READY
FOR THE NEXT STRATEGIC LAND. SO
WE HAVE ALREADY STARTED
PLANNING FOR THAT AND STARTED
THE MODELING PROCESS SO IT WILL
BE COMPLETE NEXT YEAR, BEFORE
WE START THE PROCESS FOR THE
STRATEGIC PLAN. I THINK FOR THE
FIRST TWO YEARS THE STRATEGIC
PLAN IS ON TARGET WITH THE IRP
AND WE WILL HAVE A BETTER
TIMELINE NEXT YEAR.
>> THANK YOU. I WANTED TO ADD
THE PART OF THE REASON SIOBHAN
DOHERTY HAS BEEN PROMOTED TO
THE OFFICER LEVEL IS BECAUSE
POWER MARKETING IS SUCH A
CRITICAL COMPONENT OF OUR
FUTURE AND SHE HAS TAKEN IT
UPON HERSELF TO ENSURE THAT OUR
TIME FRAMES ARE GOING TO MATCH
UP AND WE WILL ABSOLUTELY BE IN
LINE TO COORDINATE, SO WE ARE
NOT DUPLICATING EFFORTS AND SO
WE ARE NOT MAKING FULL USE OF
THE EXPENDITURE ON THE IRP
PROCESS. SO, THANK YOU.
>> YEAH, IN LOOKING AT THE RATE
PATH THAT HAS BEEN SET OUT, I
KNOW I MADE PREVIOUS COMMENTS
THAT I WAS CONCERNED THAT WE
WERE FRONTLOADING THE COST AND
I REMAIN CONCERNED ABOUT THE
FRONTLOADING OF THE COST, BUT I
ALSO REMAIN CONCERNED ABOUT THE
FACT THAT I DON'T THINK WE ARE
BEING FULLY TRANSPARENT ABOUT
HOW MUCH COSTS ARE GOING TO
NEED TO GO UP AFTER 2026. I
MEAN IN RESPONSE TO THESE
QUESTIONS WE TALK ABOUT WHY WE
HAVE HIGHER RATE COST FOR THE
NEXT TWO YEARS. WE KNOW THAT
WHOLESALE PRICES FOR
ELECTRICITY HAVE MORE THAN
DOUBLED COMPARED TO THE
PREVIOUS DECADE. RISING POWER
COSTS ARE THE SINGLE LARGEST
PRESSURE ON RATES. PEAK LOAD
WILL GROW 7% BY 2030 AND 16% BY
2035. YOU HAVE SIGNIFICANT
INVESTMENTS IN ELECTRICAL
INFRASTRUCTURE. IN ADDITION,
SEATTLE CITY LIGHT IS ALSO
ADDRESSING ASSETS LIKE BURIED
UNDERGROUND CABLE. I KNOW IT IS
NOT INTENTIONAL, BUT I AM VERY
CONCERNED. EITHER THAT WE ARE
FRONTLOADING COSTS WERE WE ARE
NOT REALLY BEING HONEST ABOUT
THE COSTS OUR RATEPAYERS WILL
BE FACING IN TWO YEARS TIME AND
SHOULDN'T WE BE TALKING ABOUT
THAT? AND IF THE COSTS NEED TO
BE HIGHER NOW AND PROTECTED, WE
NEED TO BE HONEST ABOUT THAT
RATHER THAN CREATING A FALSE
EXPECTATION THAT IN FOUR YEARS
RATES WILL GO DOWN. I DO
APPRECIATE THE ANSWER. AGAIN I
APPRECIATE VERY MUCH THESE
QUESTIONS SUBMITTED BY CHAIR
WOO. THE ACTUAL COST WAS NOT
GOING TO BE 5.4 POINT THAT IS
THE AVERAGE COST. NONETHELESS
WE ARE LOOKING AT A SIGNIFICANT
RATE INCREASE FOR RATEPAYERS
AND I KNOW THAT WAS AN ISSUE
IDENTIFIED. REALLY WHAT I AM
ASKING FOR IS GREATER
TRANSPARENCY AND HONESTY ABOUT
THE FACT WE REALLY DO HAVE
SIGNIFICANT INCREASE IN COSTS
WE ARE LOOKING AT AND ALL OF
THESE GRAPHS SHOW A TREMENDOUS
AMOUNT OF INCREASE IN DEMAND.
>> COUNCILMEMBER MOORE, THANK
YOU SO MUCH FOR THAT QUESTION.
I REALLY APPRECIATE THE
QUESTION. YOU ARE EXACTLY
RIGHT. WHAT WE HAVE DONE IS
PLACEHOLDERS. IT HAS BEEN A
JOURNEY THE LAST FIVE MONTHS AS
WE REALLY BEGIN TO DIG INTO
WHERE WE ARE IN TERMS OF
RELIABILITY. NEIGHBORHOOD
MEETINGS WHERE WE HEARD FROM
OUR CUSTOMERS ABOUT STRUGGLES
WITH RELIABILITY. WE HAVE COME
TO TERMS WITH AND WORKED ON NEW
LOOKS INCLUDING THE 24 YEAR
LOOK. SOMETHING I BROUGHT IN SO
THAT WE CAN REALLY SEE THE
DIFFERENCE IN PRICE. AND WE ARE
NOT THE ONLY UTILITY AT ALL
THAT HAS REALLY DEALT WELL WITH
THE COVID, 100 YEAR PANDEMIC
AND THEREFORE DID NOT TAKE THE
RATE INCREASES DURING THOSE
YEARS THAT REALLY WERE NEEDED
IN ORDER TO ENSURE THAT PEOPLE
COULD GET THROUGH THAT
DIFFICULT TIME. WHAT WE ARE
TRYING TO DO IS AVOID RATE
SHOCK AND ALSO MAKE SURE OF
WHAT WE NEED. SO WE HAVE SEEN A
SIGNIFICANT RISE IN
INFRASTRUCTURE COSTS. WHILE THE
CPI HAS GONE UP 89%, -- CPI FOR
ELECTRIC COMPONENTS FOR UTILITY
HAS GONE UP NEARLY 30. AND SO,
YOU KNOW, IT IS, IT IS PART, I
WOULD NOT CALL IT LACK OF
HONESTY. I WOULD SAY IT IS PART
HOPE THAT WE WILL SEE THOSE
PRICES COME BACK DOWN AND WE
DON'T WANT TO PUT IN SOMETHING
THAT WE MAY NOT HIT. WE ALSO
ARE VERY MUCH FOCUSED ON
FINDING EFFICIENCY IMPROVEMENTS
AND COST SAVINGS AND REALLY
GOING AFTER EVERY GRANT THAT IS
POSSIBLE TO HELP US OFFSET THE
COSTS. AND PRIOR TO THIS WE
WERE GOING AFTER SOME LARGER
GRANTS, BUT WE WEREN'T
ACTUALLY GOING AFTER
MEDIUM-SIZED OR SMALL ONES, BUT
WE NEED TO, BECAUSE THEY ADD
UP. WE ARE ALSO LOOKING AT
PARTNERSHIPS WITH OTHER
UTILITIES. AND WE MAY BE ABLE
TO SHARE COSTS ON SOME
RESOURCES AND THEREFORE REDUCE
THE COST. I AGREE WITH YOU THAT
THE OUTER YEARS WHERE WE HAVE
THE 5% PLACEHOLDER ARE LIKELY
TOO LOW. IN THE NEXT TWO YEARS
WE ARE GOING TO BE DOING A
STUDY ON OUR ASSETS. WE KNOW WE
HAVE A PROBLEM. WE CAN SEE THE
RELIABILITY, WHICH HAS DECLINED
EVERY SINGLE YEAR. SINCE 2017
AND I HAVE NOT LOOKED BACK
FURTHER THAN THAT, BUT WE HAVE
ASSETS. WE HAVE 330 LINES THAT
ARE DIRECT BURIED AND WE HAVE
TO REPLACE THOSE. THEY ARE ALL
PAST THEIR USEFUL LIFE. WE HAVE
BEEN REPLACING FIVE MILES PER
YEAR. THAT WOULD TAKE US 66
YEARS TO REPLACE ALL OF THAT
LINE AND WE CANNOT WAIT THAT
LONG. WE WOULD CONTINUE TO HAVE
THE OUTAGES. WHAT WE HAVE TO DO
IS GET A CLEAR PICTURE FOR YOU
ALL ON WHAT THAT LOOKS LIKE AND
THEN WE HAVE TO CREATE A 10
YEAR PLAN ON WHAT WE BELIEVE WE
CAN ACCOMPLISH AND WE HAVE TO
LOOK AT THE RATE IMPACT AND
DECIDE WHAT WE CAN LIVE WITH.
MEANWHILE WE WILL STAFF FULLY
AS OUR IBEW PRESIDENT
REFERENCED EARLIER. WE WILL
STAFF FULLY AND BE ABLE TO MOVE
A LOT FASTER THAN WE HAVE BEEN.
SO ALL OF THOSE THINGS WILL
START TO HELP. IN TWO YEARS WE
WILL HAVE A BETTER VIEW. WE
DON'T HAVE TO WAIT TWO YEARS
TO KEEP YOU POSTED. I WOULD
SUGGEST THAT AS WE COMPLETE
THESE EFFORTS WE MEET WITH YOU
ALL AND SHARE WITH YOU WHAT WE
ARE LOAND THAT WAY,
AGAIN, WE CAN DECIDE TOGETHER
WHAT THE RIGHT PATH FORWARD IS
FOR THIS UTILITY WITH ITS
INCREDIBLY HARD-WORKING PEOPLE
AND WHO HAVE DONE AN AMAZING
JOB MAINTAINING THE PREVIOUS
GENERATIONS INVESTMENT IN OUR
INFRASTRUCTURE. NOW IT IS OUR
TURN. IT IS OUR TURN TO INVEST
IN THIS INFRASTRUCTURE TO CARRY
US FORWARD FOR THE NEXT
GENERATION. SO WE JUST WANT TO
FIGURE OUT THE RIGHT PATH FOR
THAT. SO WE PUT IN
PLACEHOLDERS. WE KNOW THEY ARE
WRONG AND WE JUST DON'T KNOW
HOW WRONG. WE HAVE HIGH HOPES
THAT WE CAN MANAGE IT TO AN
ACCEPTABLE LEVEL AND I BELIEVE
WE ARE ON TRACK TO DO THAT. I
DON'T KNOW EXACTLY WHAT
ACCEPTABLE IS, BUT CERTAINLY
LESS THAN A DOUBLE-DIGIT RATE
HIKE.
>> THANK YOU. I REALLY
APPRECIATE THAT ANSWER. I
APPRECIATE THE HONESTY OF THE
ANSWER AND THE EXPLANATION OF
THE COMPLEXITY AND THE
IMPENDING COST. I GUESS MY
POSITION WOULD BE TO BETTER PUT
IN A NUMBER THAT OVERSTATES AND
THEN YOU CAN COME BACK AND SAY
LOOK HOW WE ARE ACTUALLY
REDUCING RATES, RATHER THAN WE
HAVE TO COME BACK NOW AND ASK
FOR A JUMP NO MATTER HOW MUCH
IT HAS AN IMPACT. I APPRECIATE
THE BALANCE IS A DIFFICULT LINE
YOU'RE WALKING. THAT IS MY
POSITION. THANK YOU.
>> THANK YOU. ANY FURTHER
QUESTIONS?
>> I'M JUST CURIOUS, WATCHING
THE BLUE ANGELS YESTERDAY AND
LOOKING AROUND -- HAS THAT BEEN
AN INFLUENCE, I KNOW IT IS NOT
PART OF YOUR PORTFOLIO, BUT
DOES THAT INFLUENCE THE
CONSUMPTION OR HOW MUCH OF
MALIK OR CITY -- HOW MUCH
ELECTRICITY IS AVAILABLE?
>> ABSOLUTELY. WE ARE
INCORPORATING SOLAR RESOURCES
TO HELP MEET OUR LOAD LOCALLY,
SO IT IS ABSOLUTELY PART OF OUR
EVALUATION AND MEETING THE
CITY'S NEEDS GOING FORWARD.
>> IS IT SIGNIFICANT OR IS IT
REALLY MINOR? YOU HAVE AN IDEA
IF THEY ARE GENERATING ENOUGH
TO ACTUALLY BE BOUGHT OR SOLD,
VERSUS KEEPING CERTAIN
BUILDINGS SUSTAINABLE?
>> I WILL GO TO THE SLIDE WHERE
IT SHOWS UP. IT IS THE CUSTOMER
SOLAR PROGRAM LINE ON THE
SLIDE. THE FIRST YEARS OF THE
PLAN WE EXPECT 12 MEGAWATTS OF
THAT RESOURCE. WHICH WOULD BE
CUSTOMER OWNED WITHIN THE
UTILITY, SO IT IS SIGNIFICANT.
THE BENEFITS OF THAT RESOURCE
THAT WE TRY TO INCORPORATE MORE
MODELING AND NOT HAVING TO USE
THIRD-PARTY TRANSMISSION TO GET
THAT. THE TRANSMISSION TO OUR
SERVICE TERRITORY AS WE
ARTICULATED AND AS WELL AS THE
IRP, IS AN AREA OF CONCERN FOR
US AND AN AREA TO CONTINUE TO
STUDY AND IMPROVE OUR MODELING.
I HOPE THAT ANSWERS YOUR
QUESTION.
>> THANK YOU. I AM HOPING WE
CAN LOOK THROUGH THE SLIDES
ALSO INCLUDED IN THE PACKET.
PAGE 23, WHICH IS THE MODELING
ANALYSIS OF UTILITIES RESOURCES
ADDITIONS AND COMPARISON. SO,
COULD YOU TALK MORE ABOUT WHAT
THIS GRAPH DEMONSTRATES?
>> WE WANTED TO INCORPORATE
INTO THE SLIDES IN CASE THERE
WERE QUESTIONS ABOUT POWER
PORTFOLIO AND HOW OUR PLAN
COMPARES TO OTHER UTILITIES
AROUND US. SO THIS IS OUR
PORTFOLIO MIX AND RESOURCES
COMPARED TO SOME OTHER
UTILITIES IN THE NORTHWEST AND
THE NEXT SLIDE ALSO COMPARES,
BECAUSE ONE OF THE BIG DRIVERS
OF PORTFOLIO ADDITION IS LOADS,
SO THE NEXT SLIDE, 24, COMPARES
THE LOAD FOR THOSE SIMILAR
UTILITIES AND PART OF THE
COMPARISON IS WHAT WE ARE
ENCOUNTERING AND WHAT WE NEED
TO ADDRESS IS VERY SIMILAR TO
WHAT THE OTHER UTILITIES ARE
FACING. I THINK YOU MENTIONED
EARLIER THAT WE ARE NOT ALONE
IN THIS CHALLENGE AND WE NEED
TO INCORPORATE NEW RESOURCES
AND IT DOES HAVE AN IMPACT ON
THE COST OF THOSE RESOURCES
THAT WE ARE TRYING TO ACQUIRE
FOR THE CITY OF SEATTLE.
>> PUBLIC UTILITIES, THE LOAD
APPEARS TO GET LOWER FOR PEAK?
WHILE OTHERS KIND OF MOVE
AROUND OR STAY THE SAME.
SEATTLE CITY LIGHT, AT PEAK
LOAD, IT SEEMS LIKE WE EXCEL
OTHERS IN TERMS OF USE.
>> I CAN SPEAK BRIEFLY TO THAT
TYPE OF DEMAND. WE HAVE A LOT
OF COMMERCIAL LOADS THAT ARE
VERY SUSCEPTIBLE TO HEATING AND
COOLING. SO IT IS A REFLECTION
OF THE BUILDING ELECTRIFICATION
AND TRANSPORTATION
ELECTRIFICATION FOR THE URBAN
CENTER.
>> INTERESTING, THANK YOU. I
HAVE ANOTHER QUESTION REGARDING
HOW THE IRP INFORMS THE
STRATEGIC PLAN. IS IT NORMAL
THAT THE IRP IS A LITTLE BIT
DELAYED TO BE INCLUDED IN THE
PLAN OR --
>> I THINK HISTORICALLY THEY
HAVE NOT BEEN ALIGNED. I THINK
IT HAS NOT BEEN AN ISSUE
HISTORICALLY BECAUSE WE HAVE
NOT NEEDED THE RESOURCES. THE
RESOURCES WE ALREADY OWNED WERE
MORE THAN ENOUGH TO MEET OUR
LOAD AND THE LOAD HAS BEEN
STEADY OR FLAT. SO THIS IS THE
FIRST YEAR. IN 2022 WE STARTED
TO SEE NEED, BUT THERE IS A
DRAMATIC INCREASE WHICH I THINK
MAKES IT MORE IMPORTANT, VERY
IMPORTANT THAT WE ALIGN THESE
PROCESSES IN THE FUTURE AND
THAT IS WHAT WE WILL DO.
>> IF I CAN ADD, I THINK THE
GAP WAS HIDDEN, AS SIOBHAN
DOHERTY HAS NOTICED. MY
EXPERIENCE IN THE OTHER
UTILITIES WE DO THE IRP AND
THAT BECOMES THE FORECAST. THEN
YOU JUST HAVE TO DO IT ONCE FOR
THAT AND YOU EXPAND AND BUILD
ON THAT. SO I THINK IT IS A
PLACE WHERE WE CAN FIND SOME
EFFICIENCY AND I CAN ASSURE YOU
THE TEAM IS ALL OVER THAT AND
WE WILL CONTINUE TO DO THAT. I
THINK THE KINDS OF QUESTIONS
YOU ARE ASKING IS EXACTLY WHAT
WE NEED TO BE ASKING OURSELVES
AFTER EACH THING THAT WE DO.
WHAT WENT WELL AND WHAT COULD
HAVE GONE BETTER? SO THAT WE
CAN MAKE THE CHANGES THAT WE
NEED TO MAKE AND THIS WAS NOT
SOMETHING I NEEDED TO BRING TO
THIS TEAM. THEY ALREADY
IDENTIFIED THAT WE HAD AN
OPPORTUNITY HERE, BY THE TIME I
CAME IN IN FEBRUARY. SO I AM
SUPER PROUD OF THEM FOR DOING
THAT WORK.
>> OKAY, THANK YOU. SO USUALLY,
HOW WOULD THE IRP, SO FORECASTS
FOR THE STRATEGIC PLAN, BUT IT
LOOKS LIKE PERHAPS THE 2022 IRP
WAS USED FOR THE STRATEGIC PLAN
OR WAS THERE ANY RELATION
BETWEEN THE TWO?
>> SO, WHEN PLANNING FOR THE
STRATEGIC PLAN IT WAS MOSTLY
DECEMBER AND JANUARY OF THIS
YEAR. WE HAD RECENTLY COMPLETED
A DEMAND-SIDE ASSESSMENT THAT
CAME TO COUNCIL EARLIER THIS
YEAR AND THAT WAS INDICATING A
NEED FOR RESOURCES SIMILAR TO
WHAT WE SEE IN THIS IRP UP
DATE. SO WE LOOKED AT THAT AND
SOME OF THE EARLY ANALYSIS
COMING OUT OF THIS IRP UPDATE
TO INFORM THE STRATEGIC LAND.
SO WE INDICATED MORE RESOURCES
IN THE STRATEGIC PLAN, BECAUSE
WE WERE SEEING INDICATIONS THAT
WE WOULD NEED MORE RESOURCES.
THIS IRP WAS NOT FULLY COMPLETE
AT THAT TIME, SO WE DID NOT
INCLUDE ALL OF THE RESOURCES
BECAUSE WE DID NOT WANT TO PUSH
RATES HIGHER THAN THEY SHOULD
BE.
>> THANK YOU. ANY ADDITIONAL
QUESTIONS OR COMMENTS? OKAY, SO
I MOVE THAT THE COMMITTEE
SUSPEND THE RULES AND MOVED TO
VOTE TO ADOPT RESOLUTION 32138.
IS THERE A SECOND?
>> SECOND.
>> IT IS MOVED AND SECONDED.
ARE THERE FURTHER COMMENTS?
WILL THE CLERK PLEASE CALL THE
ROLL?
>> VICE CHAIR MOORE.
>> AYE.
>> COUNCILMEMBER MORALES. WAS
THAT A YES?
>> YES.
>> THANK YOU. COUNCILMEMBER
SAKA.
>> AYE.
>> COUNCILMEMBER STRAUSS.
>> YES.
>> CHAIR WOO.
>> YES.
>> THE MOTION CARRIES AND OUR
RECOMMENDATION WILL BE SENT TO
THE SEATTLE CITY COUNCIL. SO,
THANK YOU AGAIN FOR BEING HERE
TODAY. WE WILL NOW MOVE TO THE
LAST ITEM OF BUSINESS. WILL THE
CLERK PLEASE READ THE ITEM INTO
THE RECORD?
>> AGENDA ITEM 3, A RESOLUTION
IN THE CITY LIGHT DEPARTMENT
ADOPTING A 2025 TO 2030
STRATEGIC PLAN UPDATE FOR THE
CITY LIGHT DEPARTMENT AND
ENDORSING THE ASSOCIATED
SIX-YEAR RATE PATH.
>> THANK YOU. SO AGAIN I WOULD
LIKE TO THANK SEATTLE CITY
LIGHT. THE LAST COMMITTEE RAN
OUT OF TIME. I'M SORRY ABOUT
THAT. WE ARE LOOKING FORWARD TO
A GREAT DISCUSSION TODAY. AS
COUNCILMEMBERS WE ALL HAVE TO
CONSIDER ANY PROPOSED RATE
INCREASES IN THE CONTEXT OF
OTHER RATE INCREASES SUCH AS
THE ONE ANNOUNCED AS WELL AS
OTHER TAX INCREASES REQUESTED
BY THE CITY SUCH AS THE
TRANSPORTATION LEVY. I KNOW
THERE ARE A LOT OF CONCERNS. I
WANT TO THANK CITY LIGHT AGAIN
FOR GETTING OUR QUESTIONS
ANSWERED AND ALL OF THEIR DUE
DILIGENCE. WHEN READY,
INTRODUCE YOURSELVES AND PLEASE
PROCEED.
>> THANK YOU, IM GENERAL
MANAGER AND CEO DAWN LINDELL .
>> MANAGER FOR STRATEGIC
LEARNING AND PERFORMANCE.
>> KRISTY GRAINGER, --
>> GOOD MORNING. ANDREW STRONG.
>> SIOBHAN DOHERTY, POWER
SUPPLY OFFICER.
>> GOOD MORNING, -- OPERATING
OFFICER.
>> WE ARE HERE AND READY TO
ANSWER ANY QUESTIONS.
>> GREAT, THANK YOU. COULD YOU
GIVE US A BREAKDOWN OF EACH
CUSTOMER CATEGORY AND HOW THE
5.4% INCREASE WOULD IMPACT EACH
OF THE RATES?
>> YES WE CAN.
>> YES, AS MENTIONED, SO THE
STRATEGIC PLAN PROPOSES RATE
INCREASE THAT AVERAGES 5.4%
ACROSS THE SYSTEM. LATER THIS
SUMMER CITY LIGHT WILL BRING
FORWARD A FULL RATE ORDINANCE
THAT WILL SET FEES AND CHARGES
FOR EACH CUSTOMER CLASS, SO WE
WILL DIG MORE INTO THE CUSTOMER
BREAKDOWN AT THAT TIME, BUT WE
DO HAVE ANALYSIS COMPLETE ON
THAT. SO WE RECEIVED APPROVAL
TO SHARE THAT FOR RESIDENTIAL
CUSTOMERS WE ARE ANTICIPATING
THAT INCREASES WILL BE SLIGHTLY
LOWER THAN THE 5.4% SYSTEM
AVERAGE. FOR RESIDENTIAL
CUSTOMERS THE INCREASE WILL
AVERAGE 5.3% IN 2025 AND 4.9%
IN 2026 AND THAT TRANSLATES TO
ABOUT FOUR DOLLARS PER MONTH
FOR MOST RESIDENTIAL CUSTOMERS.
MONTHLY BILL. THEN FOR
CUSTOMERS WHO ENROLLED IN
SEATTLE'S UTILITY DISCOUNT
PROGRAMS, THE GREAT PROGRAM WE
HAVE FOR CUSTOMERS TO QUALIFY
TO GET ASSISTANCE ON THEIR
BILLS. THIS PROGRAM HAS A 60%
DISCOUNT, SO FOR CUSTOMERS THIS
RATE INCREASE WILL BE ABOUT TWO
DOLLARS PER MONTH ON THEIR
MONTHLY BILLS. AND WE DO HAVE A
TABLE, I SUPPOSE. THANK YOU.
MAYBE WE CAN BRING IT UP.
DOES IT ADVANCE IF YOU JUST DO
ARROW DOWN?
>> NOT MOVING. OKAY.
>> MAYBE WHILE WE'RE BRINGING
UP THAT SLIDE, COULD YOU HELP
US UNDERSTAND THE KEY
ASSUMPTIONS DRIVING EACH RATE
INCREASE?
>> YEAH. OH.
>> WHICH ONE DO YOU WANT?
>> THE SLIDE ON RATE INCREASES
AND COST INCREASES.
>> ALL RIGHT. SO CITY LIGHT, WE
ARE A NOT FOR PROFIT PUBLIC
UTILITY. WE EXIST TO SERVE THE
PUBLIC. WE ARE REQUESTING TO
INCREASE ELECTRIC RATES. THERE
ARE THREE MAIN COST DRIVERS
THAT ARE DRIVING THE NEED FOR A
RATE INCREASE AND THE FIRST ONE
AND LARGEST FACTOR IS OUR POWER
COSTS ARE INCREASING. AS WE
MENTIONED EARLIER WHEN TALKING
ABOUT THE IRP, WHOLESALE
ELECTRICITY PRICES HAVE MORE
THAN DOUBLED COMPARED TO THE
LAST DECADE AND CITY LIGHT ARE
FORTUNATE THAT WE HAVE LOW-COST
POWER FROM HYDROELECTRIC AND
THE BONNEVILLE POWER
ADMINISTRATION. BUT AS OUR IRP
HAS SHOWN WE HAVE THE NEED FOR
NEW RESOURCES TO MEET
INCREASING DEMAND AND THESE
RESOURCES WILL BE MORE
EXPENSIVE THAN THE RESOURCES WE
HISTORICALLY HAD. A BIG PART OF
OUR RATE INCREASES CAPTURING
THE COST OF THE ELECTRICITY
THAT WE SERVE OUR CUSTOMERS.
BOTH FORWARD-LOOKING AND ALSO
OWING TO DROUGHT CONDITIONS AND
MARKET PRICES AND EXTREME
WEATHER EVENTS. THAT THE
UTILITY HAS BEEN EXPERIENCING
FOR THE PAST COUPLE OF YEARS.
OUR RATE STABILIZATION ACCOUNT,
WHICH IS A CASH RESERVE THAT
HELPS PROTECT RATEPAYERS FROM
MARKET RISKS. THIS CASH RESERVE
IS CLOSE TO EMPTY, SO PART OF
THIS POWER COST INCREASE AS
WELL HAS TO DO WITH
REPLENISHING THE RSA TO $100
MILLION SO WE CAN LEFT THE
SURCHARGE THAT IS CURRENTLY ON.
IT WILL BE AUTOMATICALLY
LIFTED. THE SECOND KEY COST
DRIVER IS WAGES. CITY LIGHT'S
WAGES HAVE ALL AND BEHIND
MARKET AND PART OF OUR RATE
PROPOSAL IS TO INCREASE WAGES
SO THAT CITY LIGHT CAN PAY A
FAIR MARKET RATE COMPARED TO
NEIGHBORING UTILITIES. AS
TESTIFIED AT THE BEGINNING OF
THIS COMMITTEE MEETING, WE ARE
LOSING STAFF TO NEIGHBORING
UTILITIES BECAUSE WE DO NOT PAY
A WAGE THAT IS COMPARABLE. SO
TO HAVE THE SKILLED ELECTRICAL
WORKERS TO DO THE WORK THAT WE
DO, WE NEED TO PAY A MARKET
WAGE. AS WE HAVE NOTICED,
UTILITY WORK, IT IS SKILLED. IT
REQUIRES A LOT OF TRAINING AND
IN SOME CASES IT IS DANGEROUS.
SO HAVING GOOD STAFF THAT ARE
SKILLED AND EXPERIENCED AND
PAYING THAT FAIR MARKET WAGE IS
VERY IMPORTANT. THE COST OF
MATERIALS IS ALSO RISING. SO
THE COST OF WAGES AS WELL AS
MATERIALS AND THOSE ARE REALLY
THE BIG COST DRIVERS UNDER OUR
RATE PROPOSAL FOR THE NEXT TWO
YEARS.
>> THANK YOU. WERE WE ABLE TO
FIND THAT SLIDE WITH THE
CUSTOMER CATEGORY AND THE
INCREASES?
>> YEAH, THAT --
THANK YOU, SO THIS IS A TABLE
THAT SOME ALLIANCES -- THAT
SUMMARIZES IMPACTS. WE
UNDERSTAND THE CUSTOMER SEE A
BILL AND A DOLLAR, SO IN THIS
TABLE WE SHOW EXAMPLE
RESIDENTIAL CUSTOMERS. THE
ELECTRIC BILL WILL VERY
DEPENDING WHETHER THEY LIVE IN
A CONDO OR A SINGLE-FAMILY
HOME. WHETHER THEY HEAT THEIR
HOME WITH ELECTRICITY OR SOME
KIND OF FOSSIL FUEL. THE TOP
PART OF THIS TABLE SUMMARIZES
CUSTOMERS AND WHAT THE MONTHLY
BILL WOULD LOOK LIKE IN 2024
COMPARED TO THE INCREASE THEY
WOULD EXPECT TO SEE IN 2025 AND
2026. FOR MOST RESIDENTIAL
CUSTOMERS, AND THIS HAS TO DO
WITH THE RATE DESIGN WE ARE
PROPOSING, THEY CAN EXPECT TO
SEE THEIR BILLS INCREASE FOUR
DOLLARS A MONTH AND FOR UTILITY
DISCOUNT PROGRAM PARTICIPANTS,
TWO DOLLARS PER MONTH. THE
BOTTOM PART OF THE CHART SHOWS
EXAMPLES OF COMMERCIAL AND
INDUSTRIAL CUSTOMERS. THERE IS
A BIG VARIETY IN ELECTRIC BILLS
DEPENDING ON IF YOU ARE RUNNING
A SMALL SHOP, A CARWASH WERE
RUNNING A HOSPITAL. SO THESE
SHOW A RANGE OF COMMERCIAL AND
INDUSTRIAL EXAMPLES AND THEN
WHAT THE PERCENTAGE INCREASE
WOULD TRANSLATE TO FREIGHT BILL
FOR A COMPANY LIKE THAT.
>> COULD YOU SPEAK BRIEFLY
ABOUT FUNDING SOURCES EXPLORED
FOR THESE INCREASES?
>> YEAH, SO ONE STRATEGY THAT
CITY LIGHT IS ACTIVELY PURSUING
IS GRANT OPPORTUNITIES. AT THE
FEDERAL LEVEL RIGHT NOW THERE
IS A LOT OF FUNDING TO SUPPORT
MODERNIZATION OF THE GRID AND
DECARBONIZATION AND UTILITY
WORK WE ARE DOING. SO CITY
LIGHT, WE ARE ACTIVELY PURSUING
ANY OPPORTUNITY WE CAN TO BRING
IN DOLLARS TO HELP KEEP OUR
RATES LOW. IN THE MEMO WE
PROVIDED WITH CITY COUNCIL WE
SUMMARIZED GRANTS THAT CITY
LIGHT HAS RECENTLY BEEN
AWARDED. ONE VERY EXCITING ONE
THAT WE RECENTLY RECEIVED FROM
THE DEPARTMENT OF COMMERCE IS
GOING TO HELP FAMILIES GET
CAUGHT UP ON THEIR ELECTRIC
BILLS. THIS IS THE CLEAN ENERGY
CREDITS AND THIS IS $19 MILLION
THAT WE ARE WORKING TO APPLY TO
BILLS TO HELP CUSTOMERS WHO MAY
BE BEHIND ON BILLS TO GET
CAUGHT UP AND SO THAT IS ONE
PARTICULAR GRANT WE ARE EXCITED
TO HAVE RECEIVED AND WE LOOK
FORWARD TO GETTING THAT APPLIED
TO CUSTOMER BILLS AS SOON AS WE
CAN.
>> WE ARE ON THE WAY.
>> WE ARE ALSO PURSUING GRANTS
AT THE FEDERAL LEVEL TO SUPPORT
DOING WORK ON OUR HYDRO
PROJECTS. GRID RESILIENCE AND
INTEGRATION PARTNERSHIPS. $50
MILLION, WHICH WOULD BE A BIG
DEAL IF WE WERE ABLE TO GET
THAT. WE ALSO ANTICIPATE THIS
COMING FROM THE CARBON MARKET
AND WE ARE GOING TO APPLY THOSE
AND USE THOSE TO SUPPORT THE
COST OF ELECTRIFICATION AND
HELP WORK WITH CUSTOMERS
LOOKING TO ELECTRIFY THE FLEETS
OR THE BUILDINGS. AND FINALLY
WE ARE VERY EXCITED TO PURSUE
PARTNERSHIPS WITH OTHER CITY
DEPARTMENTS TO HELP IMPROVE
SERVICES, HOPEFULLY WITHOUT
INCREASING COSTS AND ONE OF
THOSE IS A PILOT WE WILL DO
WITH THE DEPARTMENT OF
NEIGHBORHOODS. THE DEPARTMENT
OF NEIGHBORHOODS IS REALLY
GREAT AT OUTREACH AND REACHING
COMMUNITIES THAT ARE MAYBE A
LITTLE BIT MORE CHALLENGING TO
MAKE CONTACT WITH. SO WE LOOK
FORWARD TO WORKING WITH THE
DEPARTMENT OF NEIGHBORHOODS TO
HOPEFULLY GET OUT THERE AND
TALK TO CUSTOMERS WHO MAYBE
DON'T KNOW ABOUT OUR UTILITY
PROGRAMS, DISCOUNT PROGRAM. WHO
MAYBE DON'T KNOW ABOUT THE
OPPORTUNITIES WE HAVE FOR
CUSTOMERS WHO ARE BEHIND ON
THEIR BILLS. THOSE ARE JUST
SOME EXAMPLES OF WAYS WE ARE
PURSUING ADDITIONAL SOURCES OF
REVENUE TO HELP KEEP RATES LOW.
>> ARE THERE ANY STEPS BEING
TAKEN TO IMPROVE OPERATIONAL
EFFICIENCY AND REDUCING RATES
AND HOW CAN THESE IMPROVEMENTS
HELP CUSTOMERS SAVE ON FUTURE
RATE INCREASES?
>> ABSOLUTELY. WE UNDERSTAND
THAT RATE INCREASES ARE HARD
AND WE NEVER LIKE TO REQUEST
INCREASES. WE UNDERSTAND THAT
WE NEED TO DO EVERYTHING THAT
WE CAN TO IMPROVE EFFICIENCY
EVERY STEP OF THE WAY. OVER THE
PAST TWO BUDGET CYCLES, CITY
LIGHT RECEIVED $41 MILLION BY
SHIFTING SPENDING TO ADDRESS
RISKS AND HIGH PRIORITY NEEDS
LIKE CYBERSECURITY AND FISCAL
SECURITY SO WE CAN ADDRESS
THOSE NEEDS WITHOUT AN
ADDITIONAL RATE ASK. THIS ALSO
SHOWS EXAMPLES OF OTHER SAVINGS
WE HAVE BEEN ABLE TO PURSUE AND
ACHIEVE THROUGH REFUNDS,
GRANTS, AS WELL AS PROCESS
IMPROVEMENTS AND MOVING FORWARD
IN 2025 AND 2026 WE ARE
COMMITTED TO CONTINUE LOOKING
FOR NEW AND INNOVATIVE
OPPORTUNITIES. ONE THING THAT
DAWN BROUGHT WITH US IS
EXPERIENCE USING SIX SIGMA TO
IMPROVE PROCESSES. THAT IS ONE
THING WE ARE LOOKING TO LEAN
INTO. SORRY, I'M SORRY. NO PUN
INTENDED. AND WE ARE GOING TO
LOOK FOR MORE OPPORTUNITIES TO
CONTINUE TO GET LEANER, I DID
IT AGAIN. AND MORE EFFICIENT.
>> THANK YOU, COLLEAGUES. ANY
QUESTIONS OR COMMENTS?
COUNCILMEMBER MOORE.
>> THANK YOU. AGAIN I KEEP
HARPING ON THE RATE PATH. I
THINK WE HAD ASKED OR INDICATED
AN INTEREST IN HAVING A PLAN
PUT FORWARD THAT WOULD NOT
FRONTLOAD THE COSTS, THAT WOULD
SPREAD THE COSTS OUT. I DID
RECEIVE ANSWERS TO MY QUESTIONS
ABOUT THAT, WHICH I DID NOT
ACTUALLY RECEIVE A PROPOSAL
AFTER THAT REQUEST, BUT NOTING
THAT THE REASON THAT WE CAN'T
SMOOTH OUT THE RATE PATH OVER
THE NEXT SIX YEARS IS BECAUSE
OF MARKET-BASED WAGE
ADJUSTMENTS, BUT ALSO BECAUSE
THE CITY IS GOVERNED BY
FINANCIAL POLICIES THAT DIRECT
THE UTILITY TO DIRECT SERVICE
COVERAGE AT A MINIMUM OF 1.8
AND FUND THE CIP WITH
CURRENT YOUR REVENUE. ISN'T
THAT GOING TO BE THE CASE EVERY
YEAR? THAT THOSE LEGAL
REQUIREMENTS ARE IN PLACE EVERY
YEAR?
>> YES, THOSE ARE FINANCIAL
POLICIES SET BY CITY COUNCIL
THAT GOVERN HOW WE BALANCE
FUNDING OUR WORK THROUGH
REVENUE AND THROUGH SELLING
BONDS. THESE ARE THE POLICIES
THAT HELP THE UTILITY NOT
BECOME TOO LEVERAGED AND HELP
US KEEP OUR CREDIT RATING,
WHICH IS IMPORTANT TO SELL
BONDS AND GET GOOD INTEREST
RATES BECAUSE A LOT OF THE WORK
THAT WE DO IS CONSTRUCTION.
BEING ABLE TO HAVE A STRONG
CREDIT RATING AND BEING
FINANCIALLY SOUND IS VERY
IMPORTANT, SO THOSE FINANCIAL
POLICIES IS WHAT GOVERN AS
BEING FINANCIALLY STABLE AND
MAINTAINING THAT GOOD CREDIT
RATING.
>> SO THAT IS NOTHING DIFFERENT
DRIVING THE PARTICULAR
INABILITY TO SPREAD OUT THE
COSTS. I WOULD LIKE TO GO TO
SLIDE 18, WHERE WE SHOW COST
PRESSURES DRIVING UP RATES. AND
EACH YEAR FROM 2025 TO 2030,
POWER COSTS ARE GOING UP . EACH
YEAR FROM 2025 TO 2030 MARKET
WAGES ARE GOING UP. EACH YEAR
FROM 2025 TO 2030, CAPITAL
RECOVERY IS GOING UP. WHAT YOU
HAVE PRESENTED TO US IS RATES
ARE NOT GOING TO GO UP IN 2027
THROUGH 2030. WE WILL KEEP THEM
AT 5.0%. THAT DEFIES REALITY. I
APPRECIATE THE FACT YOU ARE
BEING OPTIMISTIC. I APPRECIATE
THE FACT YOU ARE LOOKING FOR
ALL SORTS OF ADDITIONAL
SOURCES, BUT WE KNOW THAT RATES
ARE GOING TO GO UP. YOU WILL BE
BACK HERE IN TWO YEARS. IT WILL
BE AN INCREASE. HOW MUCH? WE
DON'T KNOW. LET US BE HONEST
AND PUT A MORE ACCURATE MARKER
IN PLACE, PLEASE. I THINK WE
WANT TO OVERPROMISE AND
OVERDELIVER AND WE ALSO HAVE TO
BE HONEST ABOUT WHAT THIS IS
LOOKING AT. WE LOOK AT WHAT WE
DID IN THE PRIOR STRATEGIC PLAN
AND WE HAD IT LISTED AT 3% FOR
THIS YEAR. THAT WAS THE
FORECAST AND NOW WE ARE HERE
WITH A 2.4% INCREASE. AND WE
SAY WE WILL STAY AT 5% FOR THE
YEARS OUT. TRULY OUR OWN DATA
BELIES THAT, SO WHILE I AM
REQUESTING IS THAT YOU COME
BACK TO ME WITH A MORE ACCURATE
RATE PATH, SO THAT WE CAN BE
PREPARING THE PUBLIC FOR THAT
FACT AND WE ARE NOT LOOKING
LIKE FUELS WHEN WE COME BACK IN
TWO YEARS AND HAVE TO MAKE A
SIGNIFICANT INCREASE AND WE CAN
ALSO BE ON THE SAME PAGE ABOUT
HOW WE CAN WORK TO TRY TO
OVERDELIVER. THANK YOU.
>> COUNCILMEMBER STRAUSS.
>> THANK YOU. I JUST HAVE A
CLARIFYING QUESTION ABOUT WHAT
YOU WERE SHARING WITH CHAIR WOO
REGARDING CREDITS TO THE BILLS.
IS THAT MONEY WE ARE GETTING
FROM THE STATE? SAID ANOTHER
WAY, I AM NOT HERE LOBBYING ON
ANY INITIATIVES, JUST TRYING TO
UNDERSTAND IF INITIATIVES WERE
SUCCESSFUL, THAT COMMITMENT ACT
WAS REPEALED, WILL WE LOSE
THOSE CREDITS?
>> I DON'T BELIEVE WE WILL
LOSE THE ONES THAT WE APPLIED
NOW. BUT FUTURE BENEFITS FROM
THAT --
>> THIS YEAR'S ARE IN AND
THOSE WON'T GO AWAY, BUT
ANYTHING BEYOND DECEMBER IS AT
RISK. IF IT GOES DOWN. IF THAT
ANSWERS YOUR QUESTION.
>> THANK YOU. I THINK WHAT YOU
ARE HEARING GENERALLY IS WE
WANT TO BE REALISTIC ABOUT WHAT
OUR INFRASTRUCTURE PLACEMENT
IS, WHAT OUR WAGES ARE, ET
CETERA. ANDREW WE JUST TALKED
ABOUT INFRASTRUCTURE THAT NEEDS
TO BE REPLACED BECAUSE IT IS
AGING. I OFTEN COMPARE OUR
ELECTRICAL INFRASTRUCTURE TO MY
FORD PICKUP, THAT EVERY YEAR
SOMETHING HAS TO BE REPLACED. AL
PAUSE. BECAUSE WE DO WANT TO
KEEP RATES AS LOW AS POSSIBLE
FOR CUSTOMERS. AND I BELIEVE IT
WAS SLIDE 25 THAT SHOWS 27
COMPARING OUR RATES TO OTHERS.
WE ARE NOT THE LOWEST, WE ARE
DEFINITELY NOT THE HIGHEST
SEEING PORTLAND GENERAL WITH AN
8% RATE THIS YEAR, 13% NEXT
YEAR WITH PUGET SOUND ENERGY
MOVING UP TO 6.9 9.6 IN THE OUT
YEARS. QUESTION HERE, AND
COUNCILMEMBER WOO, THANK YOU
FOR ASKING THE QUESTION.
UNDERSTANDING WHAT THE IMPACT
IS TO OUR RESIDENTS, THE FULL
STORY IS NOT BEING SHOWN ON
SLIDE 17, SORRY FOR BOUNCING
AROUND, I HAVE THE PRESENTATION
UP, MYSELF. SLIDE 17, SHOWING
THAT PATH, IT'S GOING TO BE
LESS OF AN IMPACT FOR RESIDENTS
AS YOU JUST DESCRIBED. BUT
THESE NUMBERS DO JUMP OUT OF
THE PAGE AT US. AND I
APPRECIATE WHAT YOU SHARED
ABOUT THE CLIMATE COMMITMENT
ACT DOLLARS, AND ALSO THE
UTILITY DISCOUNT PROGRAM. I
WILL NOTE HERE FOR THE RECORD,
I WOULD STILL LIKE TO SEE SOME
CHANGES TO THE UTILITY DISCOUNT
PROGRAM. I WOULD LOVE TO WORK
WITH YOU ON THAT BOTH TO SMOOTH
THE CLIFF IF SOMEBODY MAKES A
DOLLAR TOO MUCH, THEY ARE JUST
OUT OF LUCK AS WELL AS, HOW DO
WE GET A HIGHER SUBSCRIPTION
RATE TO IT? I UNDERSTAND WE ARE
30% OF ELIGIBLE CUSTOMERS WHO
HAVE SUBSCRIBED TO IT. I THINK
THERE ARE PROBABLY SOME
ADMINISTERED BARRIERS THAT
COULD BE SMOOTHED OUT THERE.
ALL THIS TO SAY, YES,
COUNCILMEMBER MOORE, WE HAVE TO
BE REALISTIC ABOUT WHAT OUR
NEEDS ARE, AND YES, WE NEED TO
MAKE SURE THAT WE ARE
SUPPORTING OUR CUSTOMERS IN THE
BEST WAY POSSIBLE. SO -- I
GUESS I DIDN'T HAVE A QUESTION
OTHER THAN THE CLIMATE
COMMITMENT ACT. THANK YOU FOR
YOUR TIME.
>> COUNCILMEMBER SAKA?
>> THANK YOU, MADAM CHAIR. LOTS
OF GREAT DISCUSSION GOING ON
HERE, TODAY. I WANT TO THANK MY
COLLEAGUES FOR ASKING SOME
THOUGHTFUL QUESTIONS. I WANT TO
THANK OUR EXPERTS AT CITY LIGHT
HERE FOR YOUR TRANSPARENCY AND
CANDOR IN ANSWERING THESE VERY
TOUGH QUESTIONS. YOU KNOW,
THESE ARE REALLY IMPORTANT
TOPICS. AND IT IMPACTS
PEOPLE'S EVERYDAY LIVES AND
EXPERIENCES, NOT ONLY TODAY,
BUT FOR THE NEXT DECADE PLUS TO
COME. I SHARE -- YOU TOOK THE
WORDS OUT OF MY MOUTH,
COUNCILMEMBER MOORE. I AGREE, I
GUESS, I CONCUR WITH
COUNCILMEMBER MOORE THAT WE
NEED TO UNDER PROMISE AND OVER
DELIVER, AND ALWAYS ENDEAVOR TO
DO THAT. ALTHOUGH, I AM VERY
MINDFUL OF THE SENSITIVITY,
LIKE HOW DELICATE RATE
INCREASES ARE, AND IMPACT THEY
HAVE IN OUR CUSTOMERS,
PARTICULARLY RESIDENTIAL
CUSTOMERS AND THE MOST
VULNERABLE. AS YOU KNOW, IT IS
DEFINITELY ONE OF MY PRIORITIES
TO KEEP OUR RATES LOW. AND I
KNOW YOU ALL THROUGH YOUR
PREVIOUS ENGAGEMENT WITH IMPACT
TO COMMUNITIES INCLUDING
CUSTOMERS, YOU LEARNED THAT WAS
A CORE PRIORITY AS WELL
INCLUDING PREDICTABILITY. SO,
YEAH. I DON'T LOVE THE FACT
THAT THESE RATE INCREASES ,
PLACEHOLDERS AREN'T -- WE KNOW
TODAY THEY ARE NOT -- THEY ARE
NOT ACCURATE. ALTHOUGH, I DO
APPRECIATE YOU [ INAUDIBLE ] ,
THE WHOLE OPTIMISTIC APPROACH,
YOU KNOW? GENERALLY, I PREFER
TO LIVE IN MY HOPES AND NOT MY
FEARS. AT THE SAME TIME, YOU
KNOW, WE DO -- WE DO NEED
TOBIAS ON THE SIDE OF
TRANSPARENCY AND
ACCOUNTABILITY. AND WE HAVE ALL
THESE HUGE COSTS THAT WE KNOW
ARE IMPACTING OR -- FACTORS
THAT ARE IMPACTING COSTS,
INCLUDING, YOU KNOW, WE NEED TO
LIFT AND RESTORE THE RSA, THE
LABOR COST, THE -- INFLATION,
PLUS ALL THE NONTRIVIAL
INVESTMENTS THAT WE NEED TO
MAKE IN OUR CAPITAL IMPROVEMENT
PROJECTS, WHETHER IT IS
MODERNIZATION OF THE GRID,
DECARBONIZATION EFFORTS, JUST
LIKE NITTY-GRITTY CORE
UNDERGROUND REPLACEMENT OF THE
CABLES. LIKE THESE IMPORTANT
PROJECTS, WE HAVE ALL THESE
HUGE COMMITMENTS AND GOALS. WE
NEED TO ABSOLUTELY LIVE UP TO
THEM. BUT I DON'T WANT TO BE
IN A PLACE WHERE WE CAN LIVE UP
TO THEM ON PAPER, BUT
PERFORMANCE IS HORRIBLE, AND
RELIABILITY AND PREDICTABILITY
IS HORRIBLE. I DON'T WANT TO
TURN SEATTLE CITY LIGHT INTO --
WHAT IS IT? THE NIGERIAN
ELECTRO POWER AUTHORITY. BEING
HALF NIGERIAN MYSELF, IF YOU'VE
EVER BEEN TO NIGERIA, THE POWER
GOES OFF REGULARLY,
CONSISTENTLY, AND IT IS NOT
TIED TO A WEATHER EVENT. IT IS
BECAUSE OF BAD PLANNING, BAD
INFRASTRUCTURE, WE CAN'T HAVE
THAT. SO, I'M NOT PERSONALLY
IN THE BUSINESS OF KICKING
THESE TOUGH DECISIONS DOWN THE
ROAD ESPECIALLY AS IT RELATES
TO CAPITAL IMPROVEMENT
PROJECTS. LET US BE REALISTIC.
LET US BE TRANSPARENT. BECAUSE
RATES ARE GOING TO INCREASE,
WHICH WE KNOW. THE EXACT DEGREE
IS UNKNOWN AT THIS TIME.
CUSTOMERS DESERVE ANSWERS. AND
IS THERE CLARITY ON WHAT THAT I
PET PAYING THEIR FAIR SHARE
MORE. THOSE WHO ARE ABLE TO,
BUT WE NEED TO BE ABLE TO
CLEARLY ARTICULATE WHY AND WHAT
THEY ARE GOING TO GET IN
EXCHANGE FOR THAT. SO, I WILL
BE SUPPORTING THIS PROPOSAL TO
DAY. BUT I DO SHARE THE
CONCERNS THAT WERE RAISED, AND
I LOOK FORWARD TO WORKING
COLLABORATIVELY WITH YOU ALL TO
ADDRESS SOME OF THESE CONCERNS
AND BE A LITTLE MORE REALISTIC
. AS AN ASIDE, I AM NOT
PARTICULARLY OPTIMISTIC FOR
SAYING WHEN ABOUT GEOTHERMAL
AND THE PROSPECTS. ALTHOUGH, I
THINK THOSE ARE FAIR, REALISTIC
AND ACCEPTABLE ASSUMPTIONS YOU
ALL BAKED INTO THERE. BUT
COMPLEX STUFF, A LOT GOING ON,
ANYWAYS, LOOK FORWARD TO
CONTINUING THE PARTNERSHIP. SO,
THANK YOU. AND ALSO,
COUNCILMEMBER STRAUSS, I'M
REALLY SHOCKED AND SURPRISED
THAT YOU ONLY HAVE TO REPAIR
YOUR 1972 FORD PICK UP TRUCK
ONCE A YEAR. THAT IS PRETTY
AMAZING. BUT IN ANY EVENT --
>> THANK YOU, COUNCILMEMBER
SAKA. LUCKILY, I HAVE AAA, SO I
CAN GET IT TOWED AS NEEDED. I
BELIEVE YOU ARE FINISHED?
>> FINISHED AND NIGERIAN. YUP.
>> YOUR FINISHED SIDE HAS
STABLE UTILITY, CORRECT?
>> THAT THEY DO. I'VE BEEN IN
BOTH COUNTRIES.
>> THANK YOU. SO, I HAVE A
QUESTION. IF WE CAN GO TO SLIDE
NUMBER 23, CITY LIGHT'S CASH
RESERVES, SO, THE GRAPH ONLY
GOES UNTIL MARCH 24. AND WE ARE
NOW IN THE BEGINNING OF AUGUST
2024. DO YOU -- YOU KNOW? IS
THERE A PROJECTION FOR OUR
SURCHARGES GOING FORWARD? WHERE
ARE WE AT NOW?
>> THAT'S A GREAT QUESTION.
YEAH, THIS FORECAST GOT STALE
AS WE WERE WORKING THROUGH THE
STRATEGIC PLAN OF THE PROCESS.
IT WAS FRESH WHEN WE STARTED
WORKING ON THIS DECK, AND WE
HAVE NOT UPDATED IT. WE SHOULD
HAVE. YEAH, WE ARE INTO THE
WATER YEAR. IT HAS BEEN DRY.
BUT SIOBHAN AND HER TEAM HAVE
BEEN DOING A GOOD JOB MAKING
THE MOST OUT OF THE LIMITED
WATER THAT WE HAVE. AND WE ARE
-- THE RSA HAS NOT INCREASED.
BUT, WE ARE NOT -- I THINK WE
ARE A LITTLE BIT BETTER RIGHT
NOW THAN THAT DOTTED LINE. I
DON'T KNOW, SIOBHAN, DO YOU
WANT TO ADD ANYTHING TO HAVE A
SUMMER RUNOFF IS GOING?
>> YEAH. WE HAD HISTORICALLY
DRY WINTER AND SPRING. OUR LOW
WAS A LITTLE LIGHTER THROUGHOUT
THE EARLY PART OF THE YEAR. WE
HAD A WARM WINTER. EVEN THOUGH
IT WAS DRY, WE HAD A COOL
SPRING WHICH MEANT WE WERE ABLE
TO HOLD ONTO WATER IN THE
MOUNTAINS FOR LONGER WHICH
HELPS US. PRICES TEND TO BE LOW
IN THE SPRING. THEY GET MORE
EXPENSES AS WE MOVE INTO THE
SUMMER. WE HAVE BEEN ABLE TO
MANAGE THE WATER WE HAD
AVAILABLE REALLY WELL. BUT
AUGUST TENDS TO BE OUR HARDEST
MONTH. BY AUGUST, ANY OF THE
WATER RESERVES THAT WERE IN THE
SNOWPACK HAVE MELTED AND USED
UP. AUGUST IS REALLY THE
HARDEST MONTH FOR US. WE HAVE
DONE GOOD PLANNING. WE HEDGED
IN ORDER TO MEET THAT NEED. IT
DEPENDS ON WHETHER WE SEE HEAT
WAVES COMING UP. SO FAR, WE HAD
A VERY GOOD FIRST HALF OF THE
YEAR. IT WOULD DEPEND ON THE
WEATHER GOING FORWARD.
>> AND WHEN WE DO REACH THE
EMERGENCY REFILL PLAN, WHAT
DOES THAT LOOK LIKE?
>> I HOPE -- THE HOPE IS THAT
WE WILL NOT REACH THAT. AS
SIOBHAN JUST SAID, THIS MONTH,
AUGUST, IS THE ONE WHERE CITY
LIGHT HAS THE MOST FINANCIAL
UNCERTAINTY. NO WATER, POSSIBLE
HEAT WAVES, HIGH MARKET PRICES.
THIS MONTH, DON JUST KNOCKED ON
THE TABLE. WE ARE GOING TO BE
WATCHING AND KEEPING FINGERS
CROSSED THAT WE STAY ABOVE THE
$25 MILLION. IF WE DO, WE WILL
BE BACK HERE TALKING TO YOU
AGAIN ABOUT EMERGENCY REFILL
PLAN. -- WHICH COULD MEAN
INCREMENTAL RATE ASKS. I MEAN,
THAT WOULD BE A VERY DIRE
SITUATION. BECAUSE IT WOULD
MEAN OUR RESERVE IS IN DANGER
OF BEING EMPTY. AND WE NEED TO
BE ABLE TO BUY POWER TO SERVE
IT TO CUSTOMERS. OTHERWISE, WE
RISK BEING THE NIGERIAN -- I
MEAN, THAT IS WHAT HAPPENS WHEN
A UTILITY CAN'T GET
ELECTRICITY. YOU HAVE ROLLING
BROWNOUTS. IN CALIFORNIA AND IN
THE SOUTHWEST, THEY SOMETIMES
SEE THAT IN THE SUMMER. THAT'S
NOT A PLACE WHERE WE WANT TO
BE. I THINK I READ A STATISTIC
THAT THE AVERAGE PERSON ABOUT
THEIR ELECTRIC UTILITY SEVEN
MINUTES A YEAR THERE. AND I
THINK WE DON'T MIND BEING
TAKEN FOR GRANTED. THAT'S NOT
A BAD THING. WE WANT PEOPLE TO
BE ABLE TO NOT THINK ABOUT US
AND JUST GO TO CHARGE THEIR
PHONE AND TURN ON THE
ELECTRICITY AND KNOW THAT IT'S
GOING TO BE THERE. SO, BEING
ABLE TO SOURCE ELECTRICITY TO
SERVE OUR CUSTOMERS FOR ALL OF
THEIR NEEDS IS VERY IMPORTANT
TO US. THAT'S WHY WE TAKE THE
RSA STATUS VERY, VERY
SERIOUSLY.
>> I AM ALSO CONCERNED, TOO,
BECAUSE OF CLIMATE CHANGE AND
HOW WARM OUR SUMMERS,
YEAR-ROUND, HOW WARM OUR CITY
IS. SO, HOPEFULLY, WE WON'T
HAVE TO GET TO THAT POINT. I'M
GLAD TO HEAR THAT WE HAVE A
PLAN. HOPEFULLY, WE WILL NEVER
HAVE TO DEAL WITH THAT. SO, I
ALSO HAVE A QUESTION. COULD YOU
TALK ABOUT, IF THERE WERE ANY
COST EFFICIENCY ANALYSIS DONE
ON THE STRATEGIC PLAN OR
ANYTHING TO THAT MEASURE? WHAT,
FOR INSTANCE, WHAT IT WOULD
LOOK LIKE IF WE WERE TO REMOVE
A CERTAIN COMPONENT? I MEAN,
PROBABLY LIKE BROWNOUTS AND
OTHER ISSUES, OR IF WE WERE NOT
TO EXECUTE A CERTAIN PROJECT,
WHAT WOULD THAT MEAN? HAS THERE
BEEN ANY -- ANY STUDIES DONE?
>> WE -- WE ONLY PUT INTO THIS
RATE INCREASE AS COUNCILMEMBER
MOORE HAS SHOWN WHERE IT IS
DISCUSSED. WE ONLY PUT IN THE
COST OF THE POWER, THE COST OF
THE LABOR INCREASE, AND A
LITTLE BIT FOR THE INCREASED
TAXES. WE ARE ASSUMING WE WILL
FIND ENOUGH EFFICIENCY TO DO
OUR NEW PROGRAMS. SO, THAT IS
BUILT-IN. WE ARE -- WE ARE
DEPENDENT ON DOING THINGS
FASTER AND AT LESS COST. AND WE
BELIEVE THERE IS OPPORTUNITY
THERE. SO, FASTER AND LESS COST
IN ORDER TO DO THE NEW PROGRAMS
THAT WE NEED TO PUT IN FOR
FOLKS. WE WILL ALSO SHIFT. WE
ARE TAKING A HARD LOOK AT
PROGRAM PERFORMANCE. AND WE
WILL DO LESS OF THE ONES THAT
ARE NOT DELIVERING. WE WILL DO
MORE ON PROGRAMS THAT WILL
DELIVER FOR US. WE WILL BE --
SOME KEY PROGRAMS COMING UP IN
THE NEXT TWO-YEAR PERIOD. ONE
OF THOSE IS THE TIME OF USE
RATE. THAT WILL REQUIRE A
SIGNIFICANT AMOUNT OF OUTREACH
AND COMMUNICATION, WHICH WE
WILL DEPEND ON OUR EXTERNAL
COMMUNICATIONS MANAGER AND HER
GREAT SKILLS IN THAT ARENA.
BECAUSE WE HAVE TO GET THAT
CONSERVATION. IN ADDITION TO
THE 800 HUNDRED MEGAWATTS WE
NEED TO FIND THE NEXT FEW
YEARS, WE NEED AN ADDITIONAL
118 MEGAWATTS IN CONSERVATION.
SO, THAT IS ALSO BUILT IN. IN
TERMS OF ANALYSIS OF TAKING
SOMETHING OUT, WE ARE AT THE
PLACE IN THE RATE INCREASE THAT
IF WE TOOK SOMETHING OUT, WE DO
RISK NOT HAVING THE POWER THAT
WE NEED, AND WE RISK THE
CONTINUED DECLINE IN OUR
RELIABILITY. IF WE LOOK AT
SLIDE NUMBER 36 , THIS SHOWS
OUR OUTAGE HISTORY. SO, GOING
UP AS IT SHOWS MEANS AN
INCREASE IN OUTAGE. YOU CAN
LOOK AT THE DOTTED LINE. YOU
KNOW, THE DOTS GO UP AND DOWN.
IT DEPENDS ON THE WEATHER. BUT
THE TREND FOR OUR -- THE
DURATION OF THE OUTAGE WHICH IS
THE LOWER LINE AND, IN TERMS OF
THE SYSTEM DURATION FOR THE
OUTAGE, THEN THE UPPER LINE IS
WHAT THE CUSTOMER EXPERIENCES
IN TERMS OF MINUTES, I BELIEVE
MINUTES ARE WHAT IS ON THE Y
AXIS. AS WE CAN SEE, WE ARE
CONSISTENTLY DECLINING IN OUR
RELIABILITY. THEN IF WE LOOK AT
SLIDE NUMBER 37 -- BECAUSE
SOMETIMES WE MIGHT SAY, OKAY,
BUT EVERYONE IS. THE PROBLEM
IS, THE INDUSTRY AVERAGE ON
THIS IN TERMS OF OUTAGE MINUTES
ON THE Y AXIS AND YEARS IN THE
RIGHT BOTTOM, THE DOTTED LINE
IS THE INDUSTRY AVERAGE. AND
THE GREEN LINE IS US. AND SO,
YOU KNOW, WE ARE UNFORTUNATELY,
CONSIDERABLY ABOVE THE INDUSTRY
AVERAGE IN OUR OUTAGE MINUTES.
THAT IS THE DIRECT EXPERIENCE
OUR CUSTOMERS HAVE. WE WANT TO
IMPROVE THAT. AND SO, WE HAVE
GOT TO HAVE THE STAFF TO BE
ABLE TO ADDRESS THAT. WE CAN --
WE CAN HAVE THE SAME NUMBER OF
OUTAGES, BUT IF WE ADD BACK THE
SIX CREWS, THEY CAN RESPOND
MORE QUICKLY TO THE MULTIPLE
OUTAGES THAT WE HAVE. WE CAN
DEPLOY THEM, AND THEY CAN GET
THERE. SO, ADDING THAT EXTRA
LABOR BACK IN IS JUST KEY. AND
THEN, HITTING A GOOD HANDLE ON
THE UNDERLYING ASSET SITUATION
SO WE CAN TELL WHAT WE NEED TO
DO AND WHAT WE NEED TO REPLACE,
THAT IS NOT TILLED INTO THIS
BUDGET YET. THAT'S WHAT WE
NEED TO DO OVER THIS NEXT
COUPLE YEARS. THEN WE NEED TO
BUILD OUT THE RIGHT PATH TO
ADDRESS THIS. SO, YOU KNOW, I
THINK WE HAVE STAYED VERY LOW .
PROBABLY LOWER THAN WE ARE
COMFORTABLE WITH. BUT BECAUSE
WE ARE COMING OUT OF THIS
HISTORIC PANDEMIC, AND WE
DON'T WANT TO HAVE THAT ALMOST
RATE SHOCK, WE WANT TO GIVE A
LITTLE MORE TIME FOR THINGS TO
EVEN OUT. WHAT WE ARE
AGGRESSIVELY APPLYING FOR
FUNDING. NO FUNDING IS TOO
SMALL. [ LAUGHTER ] -- FOR US
TO GO AFTER. I -- YOU KNOW,
WHEN WE LOOKED AT THE SAVINGS
WE HAD OVER THE LAST YEAR, WHAT
I WANT TO POINT OUT IS, NOT
ONLY IS STAFF FINDING
EFFICIENCY, BUT THEY ARE -- I
MEAN, THEY ARE SALES SHOPPING.
WE NEED TO SPEND TIME WITH THE
INDUSTRY. THEY ARE DOING THE
EARLY BIRD DISCOUNT. WE ARE
COUNTING THAT $200. YOU KNOW?
WE ARE LOOKING FOR, HOW CAN WE
DO WHAT WE ARE DOING IN THE
LEAST EXPENSIVE WAY POSSIBLE SO
THAT WE FIND THE DOLLARS TO DO
THE PROGRAMS WE KNOW WE NEED TO
DO? AND I AM, YOU KNOW, I AM
PLEASED WITH HOW RESPONSIVE
THIS TEAM HAS BEEN WITH THAT.
>> CHAIR? UNFORTUNATELY, I NEED
TO LEAVE 13 MINUTES EARLY FROM
COMMITTEE WHICH IS ABOUT RIGHT
NOW. I SEE THAT WE STILL HAVE
SOME MORE QUESTIONS REGARDING
-- GOOD QUESTIONS, AND ALSO
REALLY GOOD ANSWERS. BECAUSE
SOMETHING WE AS THIS COUNCIL
ARE HAVING TO FACE IS, WE
DELAYED A LOT OF HARD DECISIONS
DURING THE PANDEMIC BECAUSE
PEOPLE WERE OUT OF WORK, DOWN
ON THEIR LUCK, AND WE KEPT THEM
STABILIZED. NOW WE ARE HERE,
HAVING TO CONFRONT THAT. I
MIGHT ASK, CHAIR, SINCE I HAVE
TO LEAVE, CAN WE VOTE AT THIS
AT THE NEXT MEETING?
>> YES, THANK YOU. YEAH, I
THINK I WOULD LIKE MORE TIME TO
WRAP MY HEAD AROUND THIS AND
ASK FURTHER QUESTIONS. AND SO ,
OH, YES? COUNCILMEMBER MOORE?
>> YES. THANK YOU. I WOULD
APPRECIATE NOT BEING ABLE TO
VOTE ON THIS TODAY. AND I JUST
-- HEADS UP, WILL PROBABLY BE
BRINGING AN AMENDMENT AROUND
THE RATE PATH. I THINK I VERY
MUCH APPRECIATE THE FACT WE ARE
TRYING TO KEEP NOT STICKER
SHOP, 5.4, BUT WE CAN DO 5.4
DURING -- GOING FORWARD. UNLESS
I HEAR WHY WE CAN'T DO THAT.
JUST A HEADS UP, I STARTED
THOSE CONVERSATIONS WITH
CENTRAL STAFF. ALSO, I WANTED
TO PUT A PLUG IN AND THINK
COLLEAGUES FOR NOTING THE
UTILITY DISCOUNT PROGRAM.
THAT'S INCREDIBLY IMPORTANT. I
APPRECIATE ALL THE WORK YOU ARE
DOING TO INCREASE THE AMI AND
ECHO THE COMMENTS OF
COUNCILMEMBER STRAUSS. I WOULD
LOVE TO BE HELPFUL WITH THAT.
JUST -- THANK YOU BOTH,
COUNCILMEMBER STRAUSS AND
COUNCILMEMBER SAKA FOR YOUR
COMMENTS, TOO. THANK YOU,
CHAIR.
>> SO I WILL ACKNOWLEDGE
FURTHER DISCUSSION IS NEEDED
BEFORE VOTING TODAY. WE WILL
NOT VOTE ON IT TODAY. WE WILL
CONSIDER IT FOR THE AUGUST 16th
COMMITTEE ME,
THANK YOU SO MUCH. THANK YOU,
COUNCILMEMBER STRAUSS. AND WE
HAVE -- IT LOOKS LIKE WE HAVE
REACHED THE END OF TODAY'S
MEETING AGENDA. IS THERE ANY
FURTHER BUSINESS COMING FROM
THE COMMUNITY BEFORE WE
ADJOURN? HEARING NO FURTHER
BUSINESS, THE TIME IS NOW
11:19, AND WE ARE ADJOURNED.
THANK YOU. ♪