CHAIR, THERE ARE FIVE MEMBERS
PRESENT.
>> IF THERE IS NO OBJECTION, THE
AGENDA WILL BE ADOPTED. HEARING
NO EJECTION. -- OBJECTION. WE
HAVE FOUR ITEMS WE NEED TO VOTE
ON AND TO PUBLIC HEARINGS. WE
WILL GO RIGHT INTO THE PUBLIC
COMMENT PURIFICATION RELATE TO
ITEMS ON TODAY'S AGENDA AND
WITHIN THE PURVIEW OF THIS
COMMITTEE. FOR THOSE REGISTERED
TO SPEAK ON ITEMS ONE AND TWO,
WE WILL ACCEPT COMMENTS ON THOSE
ITEMS ONCE WE REACH THEM AND
OPEN THE PUBLIC HEARINGS. CLERK,
HOW MANY SPEAKERS ARE SIGNED UP
FOR TODAY?
>> CURRENTLY, WE HAVE ONE IN
PERSON AND ZERO.
>> THANK YOU. THE ONE SPEAKER
WILL HAVE TWO MINUTES . CLERK,
PLEASE READ THE PUBLIC COMMENT
INSTRUCTIONS.
>> THE PUBLIC COMMENT PERIOD
WILL BE MODERATED IN THE
FOLLOWING MANNER. IT IS UP TO 30
MINUTES. SPEAKERS WILL BE CALLED
IN THE ORDER IN WHICH THEY ARE
REGISTERED. SPEAKERS WILL HEAR A
WHEN 10 SECONDS ARE LEFT. THE
MICROPHONE WILL BE MUTED IF THEY
DO NOT AND COMMENTS WITHIN THE
ALLOTTED TIME TO ALLOW US TO
CALL ON THE NEXT SPEAKER.
>> THE PUBLIC COMMENT PERIOD IS
NOW OPEN. WE WILL BEGIN WITH THE
FIRST SPEAKER ON THE LIST.
>> THE FIRST IN-PERSON SPEAKER
IS .
>>
THIS IS WHAT I AM SUPPOSED TO
TALK IN? IT'S KIND OF LOW.
>> THEY BOTH SHOULD BE WORKING.
YOU MAY WANT TO USE THIS. IS A
LITTLE HIGHER.
>> THANK YOU SO MUCH. THIS IS
SUCH A BROAD COMMITTEE. I FEEL
LIKE I SHOULD ADDRESS THE
ELEPHANT IN THE ROOM. CITY LIGHT
POWER BILL. I AM BETWEEN
WINDFALLS AT THE MOMENT. AS SOON
AS I HAVE A CHUNK OF MONEY
COMING IN, YOU GUYS ARE GOING TO
GET PAID. I AM GOING TO SEND MY
GUYS OVER HERE TO TAKE CARE OF
THIS CITY LIGHT THING. ADDRESS
THE ELEPHANT IN THE ROOM. WHAT
ARE YOU REALLY HERE TO TALK
ABOUT TODAY IS THE ARTS. I AM
HERE TO TALK ABOUT THESE GUYS.
URBAN UNDERACHIEVERS. THEY ARE
REAL GOOD. I THINK WE SHOULD
GIVE THEM THE KEY TO THE CITY. A
DAY LIKE SEPTEMBER 1. -- FIVE. I
HAVE THESE LYRICS FROM THEIR
SONG. ONE OF THEM IS, MY TURTLE
DROWNS THE OTHER DAY. HE IS A
REPTILE. TEARS CAME DOWN. THERE
IS SILENCE IN THE SOUND WHEN
THERE IS NO ONE ELSE AROUND. THE
THINGS YOU DO WHEN YOU CAN'T
GET OUT. THERE IS A CONFIDENCE
AND BELIEVE AS I PAINT YOU THIS
MOTIF INDIGENOUS GOLDEN TEETH.
OLD-SCHOOL MITSUBISHI. SHE BOWS
HER HEAD. SO CLOSE. PLEASE
DON'T PUSH ME. I GOT THAT. HARD
AS HELL . SOFT LIKE COTTONELLE.
LET'S GO. OTHER LYRICS. GIVE ME
ALL YOUR KEYS . I AM HERE TO
BREAK INTO YOUR CITY. GIVE ME
ALL YOUR KEYS, MAN. I AM HERE TO
BREAK INTO YOUR CITY. GOOD
STUFF. I AM JUST THINKING,
SEPTEMBER 5 . LEBOWSKI DAY. WE
CAN DO THIS? DAN STRAUSS? THUMBS
UP. COUNCILMEMBER RINCK.
SEPTEMBER 5? MR. SOLOMON. A
LITTLE SMILE. NEVERMIND. WE
DON'T NEED THAT. APPRECIATE IT.
>> ALL RIGHT. THANK YOU. WITH
THAT, THERE ARE NO ADDITIONAL
REGISTERED SPEAKERS. WE WILL
PROCEED TO THE ITEMS OF
BUSINESS. WE WILL MOVE TO THE
FIRST ITEM OF BUSINESS. WILL THE
CLERK PLEASE READ ITEM 1 INTO
THE RECORD?
>> RESOLUTION 32176, RESOLUTION
RELATING TO THE CITY LIGHT
DEPARTMENT ACKNOWLEDGING AND
APPROVING THE CITY LIGHT
DEPARTMENT'S ADOPTION OF THE
BIENNIAL ENERGY CONSERVATION
TARGET FOR 2026-2027 AND 10 YEAR
CONSERVATION POTENTIAL.
DISCUSSION AND POSSIBLE VOTE.
>> AS PRESIDING OFFICER, I AM
NOW OPENING THE PUBLIC HEARING
ON RESOLUTION 32176. PUBLIC
COMMENT RELATING TO RESOLUTION
32176 IS ONLY ACCEPTED AT THIS
TIME. CLERK, HOW MANY SPEAKERS
DO WE HAVE SIGNED UP FOR THIS
PUBLIC HEARING?
>> CURRENTLY WE HAVE ZERO IN
PERSON SPEAKERS AND ZERO REMOTE
SPEAKERS.
>> OKAY. THERE IS NOT A MEMBER
OF THE PUBLIC PRESENT FOR THIS
PUBLIC HEARING ON RESOLUTION
32176. THE PUBLIC HEARING IS NOW
CLOSED. THIS ITEM IS SCHEDULED
FOR A VOTE ON THE SAME DATE AS
THE PUBLIC HEARING. THE RULES
MUST BE SUSPENDED TO ALLOW US TO
MOVE FORWARD WITH A VOTE TODAY.
IF THERE IS NO OBJECTION, THE
RULES WILL BE SUSPENDED TO ALLOW
THE COMMITTEE TO VOTE ON THE
SAME DAY A PUBLIC HEARING WAS
HELD. HEARING NO OBJECTION, THE
RULES ARE SUSPENDED AND THE
COMMITTEE WILL PROCEED WITH A
VOTE. I BELIEVE WE ARE MOVING TO
CITY LIGHT. THANK YOU.
>> THANK YOU PEERK GOOD MORNING,
COMMITTEE CHAIR RINCK AND
COMMITTEE MEMBERS. THANK YOU FOR
THE OPPORTUNITY TO PRESENT
SEATTLE CITY LIGHTS PROPOSED
ENERGY CONSERVATION TARGETS FOR
2026 AND 2027. IN EARLY AUGUST,
WE PRESENTED SEATTLE CITY LIGHTS
BIANNUAL ENERGY CONSERVATION
TARGET FOR THE NEXT TWO YEARS,
ALONG WITH A 10 YEAR
CONSERVATION POTENTIAL. THESE
TARGETS ARE CONSISTENT WITH
STATE REQUIREMENTS UNDER THE
WASHINGTON ENERGY INDEPENDENCE
ACT INITIATIVE 937, AS WELL AS
THE CLEAN ENERGY TRANSFORMATION
ACT , BOTH OF WHICH REQUIRE
UTILITIES LIKE CITY LIGHT TO
PURSUE ALL AVAILABLE
CONSERVATION THAT IS
COST-EFFECTIVE, RELIABLE AND
FEASIBLE. WE RETURNED TODAY TO
ADDRESS ANY ADDITIONAL QUESTIONS
SO THE COMMITTEE CAN MOVE TO
ADOPT THE RESOLUTION ITEM OF 16
AVERAGE MEGAWATTS FOR 2026-2027
, AND A CONSERVATION POTENTIAL
OF 78 AVERAGE MEGAWATTS FOR THE
10 YEAR PERIOD STARTING IN 2026.
I ALSO WANT TO CALL ATTENTION TO
SOME ADDITIONAL INFORMATION I
ASKED STAFF TO DEVELOP AND SHARE
WITH THE COMMITTEE THAT SHOWS
THE CUMULATIVE IMPACT OF THE
CITY OF SEATTLE'S CONSERVATION
FOCUSED ENERGY CODE, PLUS THE
ENERGY CONSERVATION ACHIEVED BY
SEATTLE CITY LIGHT IN
PARTNERSHIP WITH OUR CUSTOMERS.
ENERGY CONSERVATION REMAINS ONE
OUT OF OUR TOP RESOURCE CHOICES.
IT IS LOW COST, LOW RISK AND HAS
MINIMAL ENVIRONMENTAL IMPACT. IT
REDUCES DEMAND ON OUR SYSTEM AND
HELPS US AVOID COSTLY
INFRASTRUCTURE INVESTMENTS WHILE
SUPPORTING SEATTLE'S CLIMATE
AND AFFORDABILITY GOALS.
>> SHALL WE DO INTRODUCTIONS
FIRST? OKAY. I AM JENNIFER
FINNIGAN, CUSTOMER ENERGY
SOLUTIONS.
>> CHIEF CUSTOMER OFFICER AT
CITY LIGHT.
>> DIRECTOR OF CUSTOMER ENERGY
SOLUTIONS.
>> GENERAL MANAGER. AND CEO OF
SEATTLE CITY LIGHT.
>> ARE MY SLIDES SHOWING? GOOD
MORNING, COUNCIL MEMBERS. WE ARE
HERE TODAY TO SEEK APPROVAL OF
TO YEAR AND 10 YEAR CONSERVATION
TARGETS FOR SEATTLE CITY LIGHT.
THIS IS A STATE LEGISLATIVE
MANDATE OR REQUIREMENT SET BY
WASHINGTON INITIATIVE 937 AND
THE WASHINGTON ENERGY
INDEPENDENCE ACT. THOSE REQUIRE
US TO COME BEFORE YOU EVERY TWO
YEARS TO SEEK APPROVAL FOR THESE
CONSERVATION TARGETS. THIS IS
PART TWO OF A CONVERSATION WE
STARTED WITH YOU BACK IN AUGUST.
WE HAVE A VERY SHORT
PRESENTATION FOR YOU TODAY. WE
ARE SEEKING YOUR APPROVAL. WE
HAVE ONE NEW SLIDE OF
INFORMATION. WE ARE HERE TO
ANSWER YOUR QUESTIONS AS WELL.
THE NEXT ITEM ON TODAY'S
AGENDA, THE CLEAN ENERGY
IMPLEMENTATION PLAN, WHICH IS
PART OF THE CLEAN ENERGY
TRANSFORMATION ACT, IS TIED TO
THIS IN A SMALL WAY IN THAT THAT
REQUIRES US TO SET A FOUR YEAR
CONSERVATION TARGET. ALL OF
THESE THINGS ARE TIED TOGETHER.
THIS IS THE OFFICIAL REQUEST FOR
YOU TODAY. WE ARE SEEKING
APPROVAL OF A 10 YEAR
CONSERVATION TARGET OF 78
AVERAGE MEGAWATTS AND A TWO YEAR
CONSERVATION TARGET OF 16
AVERAGE MEGAWATTS. WE CALCULATED
THESE TARGETS BASED ON THE
CONSERVATION POTENTIAL
ASSESSMENT USING METHODOLOGIES
SET BY THE STATE. THE TWO YEAR
CONSERVATION TARGET REPRESENTS
AN 11% DECREASE FROM THE LAST
TIME WE CAME BEFORE YOU. THE
LOWER TARGET IS A RESULT OF
MARKET CONDITIONS, PARTICULARLY
IN VACANT OFFICE SPACE , HIGH
POLICY UNCERTAINTY AT THE
FEDERAL LEVEL, PASS PROGRAM
PERFORMANCE, AND THE LOWER
TARGET IS DUE, IN PART, TO THE
STRONGER ENERGY CODES WE
EXPERIENCE HERE IN SEATTLE AND
WASHINGTON STATE. THAT IS WHAT I
WILL TALK ABOUT ON THE NEXT
LINE. THE LAST TIME I CAME
BEFORE YOU WE DISCUSSED THAT
WHEN ENERGY CODES GET MORE
STRINGENT, ENERGY TARGETS GO
DOWN. UTILITIES CAN ONLY CLAIM
ENERGY SAVINGS THAT ARE ABOVE
THE MANDATED ENERGY CODES AND
STANDARDS. SO WE WANTED TO
CREATE A GRAPHIC THAT REPRESENTS
THAT IMPACT. WE WANTED TO SHOW
THAT TO YOU. THE LAST TIME I
CAME BEFORE YOU I SHOWED THE
PAST BIENNIAL TARGETS IN A SLIDE
SO MUCH OF THIS. IT IS SLIDE 14
IF YOU WANT TO REFER TO THAT.
THIS GRAPHIC IS EIGHT ZOOM IN
FOR THE PAST FIVE BIENNIAL
CONSERVATION TARGETS. LET ME
ORIENT YOU TO WHAT IS ON THE
SCREEN. THE HORIZONTAL AXIS IS
TIME, AND THIS IS SHOWN INTO
YOUR INCREMENTS STARTING IN 2014
AND 2015, AND GOING THROUGH 2022
THROUGH 2023. THE VERTICAL AXIS
IS AVERAGE MEGAWATTS. ONE
AVERAGE MEGAWATTS IS THE
EQUIVALENT ENERGY USE BY 1200
SEATTLE HOMES. THE BLACK BARS
REPRESENT BIENNIAL TARGETS THAT
HAVE BEEN APPROVED BY CITY
COUNCIL IN THE PAST. WHAT IS NEW
IN DIFFERENT IS THAT THE YELLOW
AREAS SHOWN IN THE 2018, 2019,
FORWARD ARE THE IMPACTS OF THE
FEDERAL STANDARDS. FEDERAL
STANDARDS ARE SET BY THE US
DEPARTMENT OF ENERGY. THEY ARE
APPROVED BY CONGRESS, AND A SET
THE MINIMUM STANDARDS FOR ENERGY
USE FOR THINGS THAT ARE SOLD
HERE IN THE UNITED STATES .
THESE STANDARDS CAN APPLY TO
EVERYTHING FROM AIR-CONDITIONERS
TO REFRIGERATORS. THE BLUE AREAS
ARE REPRESENTING THE WASHINGTON
STATE ENERGY CODE AND THE
SEATTLE ENERGY CODE. THE REASON
WHY I ZOOMED INTO THE PERIOD
STARTING 2014 AND 2015 IS
BECAUSE WE HAD WASHINGTON STATE
ENERGY CODE THE GOES INTO PLACE
EVERY THREE YEARS. WE HAVE GOOD
DATA GOING BACK TO THE 2016
ENERGY -- 2015 ENERGY CODE AND
2018 ENERGY CODE. SO WHEN WE --
WHEN THE WASHINGTON STATE ENERGY
CODE, 2015 CODE, WENT INTO
PLACE, IT IMPACTS BUILDINGS THAT
ARE PERMITTED . THEN IT TAKES
TIME FOR THOSE PERMITTED
BUILDINGS TO BE BUILT , AND THEN
FOR THE ENERGY SAVINGS TO BE
ACHIEVED. THAT IS WHY THE AMOUNT
OF ENERGY SAVINGS INCREASES OVER
TIME FOR FEDERAL STANDARDS AND
WASHINGTON STATE CODES AND
SEATTLE ENERGY CODES. IF WE LOOK
INTO THE 2020 AND 2021 BIENNIUM.
WE ARE SHOWING THE IMPACT OF THE
FEDERAL CODES AND STANDARDS, AND
THE WASHINGTON -- LOCAL ENERGY
CODES AND STANDARDS, IS ABOUT
61%. HAD THOSE NOT BEEN IN
PLACE, OUR TARGETS WOULD HAVE
BEEN MUCH HIGHER. THAT IMPACT IS
MAGNIFIED EVEN MORE WHEN WE LOOK
AT THE 2022 THROUGH 2023 TIME
PERIOD. THE REASON WE ARE HERE
TODAY IS TO SEEK APPROVAL OF THE
10 YEAR CONSERVATION TARGET OF
78 AVERAGE MEGAWATTS, AND THE
TWO YEAR CONSERVATION TARGET OF
16 AVERAGE MEGAWATTS.
>> THANK YOU. COLLEAGUES, I KNOW
WE HAD A ROBUST DISCUSSION ON
THIS TOPIC LAST MEETING. HAVING
CITY LIGHT QUÉBEC TODAY TO
PROVIDE THIS ADDITIONAL PIECE
AND FOR US TO TAKE ACTION. ANY
QUESTIONS AT THIS TIME?
COUNCILMEMBER STRAUSS.
>> THANK YOU, CHAIR. GOOD
MORNING, EVERYONE. I DON'T HAVE
ADDITIONAL COMMENTS TO SHARE
AFTER A LONG CONVERSATION AT THE
LAST COMMITTEE MEETING. THANK
YOU FOR ALL YOUR WORK. I WILL
JUST SAY THANK YOU, BECAUSE THE
ADDITIONAL SLIDE PUT INTO VISUAL
REPRESENTATION A LOT OF THE
CONVERSATION WE HAD IN MY OFFICE
AND THE BRIEFING, AND NOW HERE
ON THE DAIS. THANK YOU FOR YOUR
WORK. KEEP UP THE GOOD JOB.
>> MADAME CHAIR.
>> VICE CHAIR JUAREZ.
>> THANK YOU FOR NOTICING ME. A
QUICK QUESTION. I WASN'T AT THE
LAST MEETING. I WANTED TO ASK
JENNIFER WHO GAVE US THE
BACKGROUND ON THIS POWERPOINT.
INITIATIVE 937, IS THAT THE
STATE LAW PASSED IN 2007?
>> YES. THAT WAS THE ONE PASSED
IN 2007.
>> DO WE HAVE A SEATTLE MRS.
SIMPLE -- MUNICIPAL CODE THAT
CODIFIED THE STATE? OR DO WE
JUST GO BY STATE LAW FOR SEATTLE
CITY LIGHT?
>> I KNOW THAT WE HAVE SEATTLE
MUNICIPAL CODE THAT GIVES US
PERMISSION TO OFFER ENERGY
EFFICIENCY INCENTIVES . THAT IS
SIMILAR TO WHAT THE DEMAND
RESPONSE AUTHORITY WE ARE
SEEKING FROM YOU TODAY. I
BELIEVE THAT AUTHORITY WAS
REQUESTED AROUND THAT SAME TIME.
>> THANK YOU.
>> THANK YOU, VICE CHAIR JUAREZ.
COLLEAGUES, ANY ADDITIONAL
QUESTIONS? IF THERE ARE NONE , I
WILL MOVE US FORWARD TO SAY THAT
I MOVE THE COMMITTEE RECOMMEND
CONFIRMATION OF RESOLUTION
32176. IS THERE A SECOND?
>> SECOND.
>> THAT IS MY JOB ,
COUNCILMEMBER STRAUSS. I AM THE
VICE CHAIR. [ LAUGHTER ] I HAVE
ONE JOB. AND I WANT TO DO IT
WELL.
>> BOSS, THAT WAS MARK. IT
WASN'T ME.
>> SORRY.
>> I WITHDRAW MY SECOND. [
LAUGHTER ]
>> [ INAUDIBLE ] ONE JOB. I WANT
TO DO IT WELL.
>> I APPRECIATE YOUR ENTHUSIASM.
>> FRIDAY. IT'S SUNNY.
>> IT HAS BEEN MOVED AND
SECONDED A NUMBER OF TIMES TO
RECOMMEND THE ADOPTION OF THE
RESOLUTION. ARE THERE ANY
COMMENTS? WILL THE CLERK PLEASE
CALL THE ROLE -- CALL THE ROLL?
>> [ ROLL CALL ]
THERE ARE FIVE IN FAVOR IN ZERO
OPPOSED.
>> WONDERFUL. THE MOTION
CARRIES. THE COMMITTEE
RECOMMENDATIONS THAT THE
RESOLUTION WILL BE SENT TO THE
SEPTEMBER 16 CITY COUNCIL
MEETING. THANK YOU. WITH THAT,
WILL THE CLERK READ ITEM 2 INTO
THE RECORD?
>> RESOLUTION 32181 RELATING TO
THE CITY LIGHT DEPARTMENT
APPROVING THE CITY LIGHT
DEPARTMENT'S 2026-2029 CLEAN
ENERGY IMPLEMENTATION PLAN AS
REQUIRED BY WASHINGTON STATE'S
CLEAN ENERGY TRANSFORMATION
CHAPTER 19.405 RCW. DISCUSSION
AND POSSIBLE VOTE.
>> I AM NOW OPENING THE PUBLIC
HEARING ON RESOLUTION 32181.
PUBLIC COMMENT RELATING TO
RESOLUTION 32181 IS ONLY BEING
ACCEPTED AT THIS TIME. CLERK,
HOW MANY SPEAKERS ARE SIGNED UP
FOR THIS PUBLIC HEARING?
>> ZERO IN PERSON AND ZERO
REMOTE SPEAKERS AT THIS TIME.
>> THERE IS NOT A MEMBER OF THE
PUBLIC PRESENT FOR THIS PUBLIC
HEARING ON RESOLUTION 32181, AND
THIS PUBLIC HEARING IS NOW
CLOSED. ONE MOMENT. THIS ITEM IS
SCHEDULED FOR A VOTE ON THE SAME
DAY AS PUBLIC HEARING. THE RULES
MUST BE SUSPENDED TO ALLOW US TO
MOVE FORWARD WITH A VOTE TODAY.
IF THERE IS NO OBJECTION, THE
RULES WILL BE SUSPENDED TO ALLOW
THE COMMITTEE TO VOTE ON THE
SAME DAY A PUBLIC HEARING WAS
HELD. HEARING NO OBJECTION, THE
RULES ARE SUSPENDED. THE
COMMITTEE WILL PROCEED WITH A
VOTE. WITH THAT, WE HAVE
PRESENTERS AT THE TABLE. PLEASE
INTRODUCE YOURSELVES FOR THE
RECORD BEFORE SPEAKING.
>> I AM THE GENERAL MANAGER AND
CEO FOR SEATTLE CITY LIGHT.
>> CUSTOMER ENERGY SOLUTIONS.
>> GOOD MORNING. CHIEF OPERATING
OFFICER.
>> ENVIRONMENTAL EQUITY ADVISOR
AT CITY LIGHT.
>> STRATEGIC COMMUNITY OUTREACH
AND ENGAGEMENT ADVISOR.
>> PLEASE PROCEED.
>> GOOD MORNING, COUNCIL
MEMBERS. I APPRECIATE THE
OPPORTUNITY TO PRESENT THE
2026-2029 CLEAN ENERGY
IMPLEMENTATION PLAN. THIS IS A
CRITICAL STEP IN ADVANCING
SEATTLE'S COMMITMENT TO CLIMATE
ACTION, ENERGY EQUITY AND
LONG-TERM SUSTAINABILITY. THIS
PLAN FOR FILLS OUR STATUTORY
OBLIGATION UNDER WASHINGTON'S
CLEAN ENERGY TRANSFORMATION ACT
AND ALIGNS WITH THE CITY'S
BROADER STRATEGIC GOALS,
INCLUDING THE MAYOR'S EXECUTIVE
ORDER ON CLIMATE, AND THE 2024
INTEGRATED RESOURCES PLAN.
BEYOND COMPLIANCE, THIS IS ABOUT
PREPARING OUR COMMUNITY FOR
CLEANER, HEALTHIER AND MORE
RESILIENT FUTURE. EQUITY IS A
CENTRAL PILLAR OF THIS PLAN. WE
HAVE IDENTIFIED FOUR KEY EQUITY
INDICATORS TO GUIDE OUR WORK.
REDUCING ENERGY BURNING,
IMPROVING PUBLIC HEALTH,
EXPANDING ACCESS TO CLEAN ENERGY
JOBS, AND INCREASING
PARTICIPATION IN ENERGY
PROGRAMS. THIS PLAN REFLECTS
EXTENSIVE COMMUNITY INPUT. WE
PARTNERED WITH THE DEPARTMENT OF
NEIGHBORHOODS TO ENSURE
INCLUSIVE OUTREACH. THIS PLAN
REPRESENTS A BOLD, YET
PRACTICAL, VISION FOR SEATTLE'S
ENERGY FUTURE. IT BALANCES
INNOVATION WITH ACCOUNTABILITY
AND ENVIRONMENTAL PROGRESS WITH
COMMUNITY WELL-BEING. I AM GOING
TO NOW HANDED OFF TO OUR TEAM TO
PRESENT THE SLIDE DECK AND
ANSWER ANY QUESTIONS YOU MAY
HAVE BEFORE THE VOTE.
>> THANKS. GREAT INTRO. WE ARE
GOING TO TAKE A DEEPER DIVE ON
ALL THE TOPICS SHE JUST
ADDRESSED. TO REITERATE, WE ARE
HERE TODAY TO SEEK YOUR APPROVAL
AS OUR GOVERNING BOARD ON THE
SECOND CLEAN ENERGY
IMPLEMENTATION PLAN, OR CEIP.
THIS PLAN, AS YOU WILL SEE,
COVERS THE YEARS 2026 THROUGH
2029 , INCLUSIVE. IT IS REQUIRED
UNDER THE CLEAN ENERGY
TRANSFORMATION ACT. WE WILL HEAR
THE WORDS CETA AND CEIP SEVERAL
TIMES TODAY. THE CLEAN ENERGY
TRANSFORMATION ACT , ALSO KNOWN
AS CETA, IS A WASHINGTON STATE
LAW SIGNED BY GOVERNOR INSLEE IN
2019. IT COMMITS WASHINGTON
STATE TO AN ELECTRICITY SUPPLY
FREE OF GREENHOUSE EMISSIONS BY
2045. IT ALSO ENSURES THAT
CUSTOMERS BENEFITING FROM --
THAT ALL CUSTOMERS ARE
BENEFITING FROM THIS TRANSITION
TO CLEAN ENERGY. ALL UTILITIES
IN WASHINGTON STATE MUST FOLLOW
CETA. OVERALL, CETA ESTABLISHES
A PHASED TRANSITION TO CLEANER
ENERGY THAT INCLUDES INTERIM
TARGETS AT THE END OF THIS YEAR,
THERE IS A NO CALL STANDARD
WHICH WE ARE VERY MUCH IN LINE
WITH. MOVING FORWARD IN 2030,
CETA ALSO REQUIRES UTILITIES TO
GREENHOUSE GLATT -- GAS NEUTRAL
ELECTRICITY. WE ARE
WELL-POSITIONED TO MEET THAT
STANDARD. TRINITY REQUIRES
UTILITIES TO EQUITABLY SUPPLY
100% OF ELECTRICITY FROM
RENEWABLE OR NON-EMITTING
RESOURCES. WE WILL GO INTO THAT
IN MORE DETAIL. NOW WE WILL
DISCUSS THE CLEAN ENERGY
IMPLEMENTATION PLAN THAT
REQUIRES YOUR APPROVAL. THE CEIP
IS A FOUR YEAR ACTION PLAN
DETAILING HOW CITY LIGHT WILL
PROGRESS TOWARDS CETA
MILESTONES. THE PLAN SETS
INTERIM AND SPECIFIC TARGETS TO
MEET STANDARDS SET FOR 2030 AND
2045. IT INCLUDES RENEWABLE --
EXCUSE ME, RENEWABLE AND ENERGY
EFFICIENT TARGETS. IT ALSO
REQUIRES WE REACH CETA TARGETS
WITH EQUITY IN MIND. THE CEIP
ASKS US TO IDENTIFY INDICATORS ,
SPECIFIC ACTIONS, VULNERABLE
POPULATIONS AND HIGHLY IMPACTED
COMMUNITIES. WE CONSULTED WITH
THE COMMUNITY TO DEVELOP THESE
AND WILL SHARE THOSE IN MORE
DETAIL LATER IN THE
PRESENTATION. AS NOTED ON THE
GRAPHIC A --, THIS IS THE SECOND
CEIP. SEATTLE CITY COUNCIL
PREVIOUSLY APPROVED THE
2022-2025 CEIP IN 2022. UNDER
WASHINGTON LAW, UTILITIES ARE
REQUIRED TO SUBMIT THESE PLANS
EVERY FOUR YEARS. OVERALL, THE
2026-2029 CEIP REFLEX SEATTLE'S
CONTINUED COMMITMENT TO
ENVIRONMENTAL STEWARDSHIP,
EQUITY AND TRANSPARENCY. IT
FOCUSES ON NEAR-TERM MEASURABLE
STEPS TOWARDS CLEAN ENERGY WHILE
ENSURING THAT HIGHLY IMPACTED
COMMUNITIES AND VULNERABLE
POPULATIONS ARE NOT IN EQUITABLY
BURDENED DURING THE CLEAN ENERGY
TRANSITION. SO WHY YOUR APPROVAL
MATTERS. AS I MENTIONED,
UTILITIES MUST SUBMIT A
GOVERNING BOARD APPROVED CLEAN
ENERGY IMPLEMENTATION PLAN EVERY
FOUR YEARS . IT MUST OUTLINE THE
SPECIFIC ACTIONS THEY WILL TAKE
ON THE UPCOMING COMPLIANCE
PERIOD. THE CEIP IS A COMPLIANCE
REQUIREMENT UNDER WASHINGTON LAW
, AND THE DEADLINE TO SUBMIT
THIS TO WASHINGTON STATE IS
JANUARY 1, 2026.
>> AS MIKE MENTIONED, CETA HAS
VERY CLEAR LANGUAGE THAT AS WE
TRANSITION TO 100% RENEWABLE, WE
MUST ENSURE WE ARE NOT
DISPROPORTIONATELY BURDENING
HISTORICALLY HARMED COMMUNITIES.
SPECIFICALLY, CETA REQUIRES US
TO DO THREE THINGS. THE FIRST IS
DEFINED VULNERABLE POPULATION,
THE SECOND IS IDENTIFY
INDICATORS WHERE OUR -- WHICH
ARE GOALS OF HOW WE WANT TO
PROGRESS AS A UTILITY MAKE SURE
WE TRANSITION EQUITABLY. LASTLY,
SPECIFIC ACTIONS THAT ALLOW US
TO MAKE PROGRESS TOWARDS THE
INDICATORS/GOALS THAT WERE
IDENTIFIED, WHICH WILL ALSO BE
REQUIRED TO BE MEASURED AS WE
PROGRESS AS WELL. BEYOND THIS
REQUIREMENT, WE WANTED TO ENSURE
WE ARE MEANINGFULLY ENGAGING
CUSTOMERS, ESPECIALLY THOSE FROM
PRIORITY POPULATIONS. WE WANT TO
HAVE THEIR INPUT AND WORK
TOWARDS THESE LONG-LASTING
RELATIONSHIPS. AND SO, WE
APPROACHED THE WORK VERY
INTENTIONALLY. WE DID AN
INTEGRATED APPROACH WHERE WE
ACROSS SEVERAL PLANS. THESE ARE
JUST THREE . WE WANTED TO DO
OUTREACH TO AVOID OVERTAXING THE
SAME COMMUNITIES WE ARE TRYING
TO PREVENT OVERBURDENING
ALREADY. BEFORE WE WENT OUT,
THOUGH, WE STARTED WITH
REVIEWING WHAT WE HAD. WE HAD A
LOT OF REPORTS WE LOOKED THROUGH
A INCLUDING THE TRANSPORTATION
ELECTRIFICATION STRATEGIC PLAN.
WE LOOKED AT THE CURRENT MOST
UPDATED COMPREHENSIVE PLAN . AND
EVEN SOME FOCUS GROUPS THAT WE
HAD DONE AS A UTILITY. AND SO,
FROM THERE WE IDENTIFIED COMMON
PRIORITIES AND THEMES THAT AROSE
BY THE COMMUNITY, AND ALSO
IDENTIFY THE GAPS OF WHO WE HAVE
NOT HEARD FROM, AND WHO IS
COMPLETELY MISSING THAT WE
SHOULD GO BACK AND REALLY TALK
TO THEM. THAT IS KIND OF HOW WE
APPROACH OUR OUTREACH
OPPORTUNITIES, INCLUDING
ENGAGING NEIGHBORHOODS LIKE THE
SOUTH PARK NEIGHBORHOOD
ASSOCIATION, SEVERAL SEATTLE
COMMISSIONS, INCLUDING THE
DISABILITY COMMISSION,
SEATTLE'S INDIGENOUS ADVISORY
GROUP, AND SOME ADDITIONAL FOCUS
GROUPS WE HAD. THE RESULTS FROM
THE LITERATURE REVIEW AND
ENGAGEMENT WERE REALLY GREAT. WE
GOT SO MUCH GOOD FEEDBACK THAT,
NOT ONLY SERVES THESE PLANS, BUT
OTHER PLANTS AS THEY COME UP. I
REALLY WANT TO COMMEND THE TEAM
I GOT TO WORK WITH FROM CITY
LIGHT, AND ALSO FROM THE
DEPARTMENT OF NEIGHBORHOODS. A
REALLY GREAT TEAM EFFORT. A LOT
OF LOGISTICS. AS YOU CAN
IMAGINE, ALL THE OUTREACH TAKES
A LOT OF TEAM EFFORT. AS WE
ENGAGED FOLKS, ONE OF THE THREE
THINGS CETA ASKED US TO
COLLABORATE WITH THE COMMUNITY
ON IS TO IDENTIFY WHO WE NEED TO
CENTER FOR EQUITABLE
DISTRIBUTION OF ENERGY BENEFITS
AND REDUCTION OF BURDENS. THE
TWO SPECIFICS OF THE
POPULATIONS ARE IDENTIFIED AS
HONORABLE POPULATIONS AND HIGHLY
IMPACTED COMMUNITIES. VULNERABLE
POPULATIONS CAN BE THOUGHT OF AS
MORE OF A DEMOGRAPHIC TERM AND
SELF IDENTIFYING TERMS. WHEN WE
WERE OUT TALKING TO THE
COMMUNITY, WE ASKED FOLKS, WHO
WOULD BE THE MOST IMPACTED IF
THE POWER WERE TO GO OUT? WHO
ABSOLUTELY NEEDS IT TO SURVIVE?
CONSISTENTLY, FOLKS RAISED THE
POPULATIONS ON THE LEFT THAT YOU
SEE THEY ARE. -- THERE. FIRST,
IT IS SENSITIVE POPULATIONS THAT
NEED ELECTRICITY TO LIVE OR
SURVIVE. FOLKS ARE ON MEDICAL
DEVICES OR NEED MEDICINE THAT IS
REFRIGERATED. PEOPLE WHO RELY ON
AN ELECTRIC WHEELCHAIR THAT
NEEDS TO BE CHARGED. THE SECOND
GROUP ARE LOWER INCOME AND/OR
BLACK, INDIGENOUS OR PEOPLE OF
COLOR LIVING IN AGREEMENT AREAS
SUCH AS SOME OF THE
UNINCORPORATED AREAS WE SERVE
THROUGHOUT KING COUNTY AS WELL.
THE REASON FOR THIS IS
RECOGNIZING THAT THE CITY OF
SEATTLE HAS OTHER DEPARTMENTS
WHO OFFER VERY COMPLEMENTARY
SUPPORTIVE RESOURCES THAT SOME
OF THE CITIES AND UNINCORPORATED
AREAS DON'T HAVE ACCESS TO.
LASTLY, AND SURPRISINGLY, ARE
MONOLINGUAL IT -- OR -- ON THE
RIGHT WE HAVE THE HIGHLY
IMPACTED COMMUNITIES. THIS IS
FAIRLY CLEARLY DETERMINED BY THE
STATE'S OWN ENVIRONMENTAL
HEALTH DISPARITIES MAP. THE
INTERACTIVE MAP COMPARES THE
SENSES TRACK ACROSS THE STATE OF
WASHINGTON TO IDENTIFY
DISPARITIES AND RANK THEM FOR
MOST TO LEAST IMPACTED BY
ENVIRONMENTAL DISPARITIES. THIS
TOOL ANALYZES 19 INDICATORS
ACROSS ENVIRONMENTAL EXPOSURES,
ENVIRONMENTAL EFFECTS,
SOCIOECONOMIC FACTORS AND
SENSITIVE POPULATIONS. THE LOWER
RANKING ONES, AS YOU CAN SEE, OR
THE LIGHTER COLORS. THE HIGHLY
IMPACTED COMMUNITIES ARE THE
MOST ENVIRONMENTALLY EFFECTIVE.
THOSE ARE IDENTIFIED AS RANKING
OF NINE OR 10 AND ARE LARGELY
CONCENTRATED IN SOME OF THE
SOUTHERN PARTS OF THE CITY. AND
SO, BY IDENTIFYING THESE
COMMUNITIES AND POPULATIONS, WE
CAN AND MUST BE VERY INTENTIONAL
THAT THESE POPULATIONS ARE
PRIORITIZE AS WE COMMIT TO THE
TRANSITION OF 100%
RENEWABLE,/NOT EMITTING
RESOURCES. THE OTHER PORTION OF
THE PLAN WE ENGAGED FOLKS ON WAS
IDENTIFYING THE INDICATORS. THE
GOALS. THE SPECIFIC ACTIONS
WHICH WILL HELP US MAKE PROGRESS
TOWARDS THESE GOALS. BEFORE I
EVEN GET INTO THE DETAILS OF
WHAT IS IN HERE, I WANT TO NOTE
THAT THESE ACTIONS DON'T
REFLECT ALL OF WHAT SEATTLE CITY
LIGHT IS DOING. CITY LIGHT IS A
UTILITY LEADER WHEN IT COMES TO
THE EQUITY CENTERED PROGRAMMING.
WE REALLY HAD TO NARROW THE
SCOPE TO CENTER WHAT WE KEPT
HEARING CONSISTENTLY FROM
PRIORITY POPULATIONS. SO THERE
WERE FOUR BIT PRIORITIES WE
CONSISTENTLY HEARD ABOUT THAT
TURNED INTO THE FOUR INDICATORS.
AND SO, ONE OF THE ONES,
UNSURPRISINGLY, IS REDUCING
ELECTRIC ENERGY BURDEN. HERE WE
HAVE A LIST OF ACTIONS THAT WE
ARE GOING TO PURSUE TO MAKE SURE
WE REACH THIS GOAL. WE HAD
DEVELOPING AN ACCESSIBLE
IMMUNITY SOLO PROGRAM.
REGARDLESS IF YOU ARE A RENTER
OR OWNER. IF YOU ARE LOWER
INCOME OR ANYTHING, YOU CAN
ACCESS THIS PROGRAM AND ACCESS
MORE RENEWABLE ENERGY SOURCES.
WE WILL WORK TO INCREASE
ENROLLEES IN THE UTILITY
DISCOUNT PROGRAM AS THIS WAS A
PROGRAM FOLKS NOTED THE
DIFFICULTY IN APPLYING FOR. WE
WILL ALSO EVALUATE PRESS S --
CASE PRACTICES FOR A FAIR RATE
DEVELOPMENT. THIS IS AN
EXPENSIVE CITY TO LIVE IN, AND
WE WANT TO ENSURE CUSTOMERS
DON'T HAVE TO WORRY ABOUT HOW
THEY PAY FOR THE ELECTRICITY
BILL. WE WANT TO ENSURE WE GET
-- THAT PEOPLE ARE PAYING THEIR
FAIR SHARE FOR THEIR BELLS. THE
SECOND INDICATOR IS TO IMPROVE
ECONOMIC OPPORTUNITY ACCESS IN
THE GREEN ENERGY SECTOR.
SPECIFICALLY, FOLKS KEPT TALKING
ABOUT YOUNG PEOPLE. WE REALLY
WANTED TO CATER OUR ACTIONS
TOWARDS YOUTH OR YOUNGER FOLKS .
FIRST WAS CREATING AN AWARENESS
CAMPAIGN FOR HIGH SCHOOLERS SO
STUDENTS KNOW ABOUT THE WIDE
SWATH OF JOBS IN THE GREEN
ENERGY SECTOR. PRESLEY, I WOULD
NOT IMAGINE WORKING IN THE WILL
I DO. WE WANT TO MAKE SURE THAT
FOLKS, WHETHER YOU ARE PLANNING
TO DO A FOUR YEAR DEGREE OR WANT
TO GO STRAIGHT INTO THE TRADE,
THERE IS A PLACE FOR YOU IN THIS
INDUSTRY. WE WILL ALSO STAND UP
A HIGH SCHOOL INTERNSHIP PROGRAM
TARGETING STUDENTS AND INCOME
QUALIFIED HOUSEHOLDS. WE WANT TO
MAKE SURE HIGH SCHOOLERS KNOW
AND HAVE AN IDEA OF WORKING AT A
UTILITY IS LIKE. LAST IS
CONTINUING TO STAND UP AND
EXPAND THE EV CHARGER
INSTALLATION PROGRAM WHERE WE
WILL TARGET WOMEN AND MINORITY
OWNED BUSINESSES. WE WILL BE
INSTALLING A LOT OF CHARGERS IN
THE COMING YEAR AND WANT TO MAKE
SURE REDUCING THOSE BARRIERS FOR
FOLKS WHO MAY NOT TYPICALLY HAVE
THE SAME ACCESS. THANK YOU.
>> -- THE THIRD INDICATOR IS TO
IMPROVE COMMUNITY HEALTH. THIS
WAS A TOUGH ONE.
>> PLEASE PAUSE FOR ONE MOMENT.
I NOTICED THAT VICE CHAIR JUAREZ
HAS HER HANDS RAISED.
>> THANK YOU. YOU TALK VERY
FAST.
>> I APOLOGIZE.
>> IT'S OKAY. WE GOT A. YOU ARE
DOING GREAT. I JUST WANT TO MAKE
SURE I AM KEEPING UP WITH YOU. A
QUICK QUESTION. I DON'T KNOW IF
YOU CAN ANSWER, OR IF THE CEO
CAN. HAVE WE INCREASED THE UDP
PROGRAM? HAS THERE BEEN MORE
ENROLLEES? DO WE HAVE DATA ON
THAT?
>> WE DO HAVE DATA. THE NUMBER
OF ENROLLEES FLUCTUATES,
UNFORTUNATELY , IN THE LAST NINE
MONTHS NOW. WE HAVE SEEN SOME
DECLINES. PEOPLE ARE CONCERNED
WITH THE I.C.E. IMPACT . THEY
ARE CONCERNED ABOUT PUTTING --
ABOUT APPLYING FOR THINGS WHERE
THEY HAVE TO GIVE THEIR PERSONAL
INFORMATION. AND SO, WE ARE
ACTUALLY WORKING ON HOW WE CAN
MAKE THAT EASIER AND LESS
STRESSFUL IN THE CURRENT
CONDITIONS. THAT HAS IMPACTED
IT.
>> THANK YOU . THAT CAME UP IN A
CONVERSATION I HAD A COUPLE DAYS
AGO ABOUT IT. YOU HIT IT RIGHT
ON THE HEAD. THANK YOU SO MUCH.
I AM NOT MAKING A JOKE YOU.
I.C.E. HAS HAD A CHILLING EFFECT
ON ENROLLEES. I REMEMBER WHEN
NOW AT MAYOR HARRELL WAS PART OF
THIS COMMITTEE, AS WELL AS
COUNCILMEMBER. WE WOULD GET KIND
OF AN UPDATE ONCE IN A WHILE .
MADAME CHAIR, YOU WILL PROBABLY
GET THIS AS WELL. WE WERE
ENROLLEES AND WHAT COMMUNITIES
WE WERE HELPING OUT. WE WERE
STEADILY INCREASING IT. I WAS
ASKING BECAUSE I HAVE BEEN GONE
FOR A WHILE. I WAS ASKING FOR
THE UPDATE. I KNEW THERE WAS
SOME IMPACT ON THAT ON SOME OF
OUR NEIGHBORS, IMMIGRANT
NEIGHBORS, FRIENDS, RELATIVES .
THERE WAS CONCERN ABOUT GIVING
THE GOVERNMENT INFORMATION. I
WOULD BE FOREVER IN YOUR DEBT IF
YOU CAN PROVIDE THE CHAIR AND
US, AT SOME POINT, MAY BE BRIEF
AS WHERE WE ARE ON THAT AND WHAT
WE CAN DO TO MAKE SURE THAT
THOSE FOLKS ARE GETTING THE
BENEFITS OF THE UTILITY DISCOUNT
PROGRAM. BECAUSE THAT IS WHAT IT
WAS DESIGNED FOR, ALL THE
PRIORITY GROUPS YOU LISTED IN
PRIOR SLIDES. I WOULD HATE TO
SEE THAT SERVICE, PEOPLE NOT
TAKING ADVANTAGE OF IT OUT OF
FEAR. THANK YOU, MADAME CHAIR.
>> JUST TO LET YOU KNOW, THE
CURRENT NUMBERS ARE SLIGHTLY
OVER 35,000.
>> THANK YOU, VICE CHAIR JUAREZ.
FABULOUS BISHOPRIC I CERTAINLY
SHARE YOUR INTEREST ON THIS
TOPIC AND WILL CERTAINLY REVISIT
THIS GIVEN THE MOMENT WE ARE IN.
PLEASE PROCEED WITH THE
PRESENTATION. THANK YOU.
>> AND SO, AS I WAS MENTIONING,
THE THIRD INDICATOR IS IMPROVING
COMMUNITY HEALTH. FOR US TO
SUPPORT THIS GOAL, WE WILL BE
ABLE TO TARGET THE
TRANSPORTATION ELECTRIFICATION
INVESTMENTS IN OVERBURDEN
COMMUNITIES TO ENCOURAGE VEHICLE
ELECTRIFICATION, AND IDEALLY,
REDUCING CAR AND TRUCK EMISSIONS
IN THE SAME COMMUNITIES. THE
LAST INDICATOR, BUT NOT THE
LEAST, IS INCREASING PROGRAM
PARTICIPATION FROM HIGHLY
IMPACTED COMMUNITIES AND
VULNERABLE POPULATIONS. THE
SPECIFIC ACTIONS ARE TO INCREASE
UTILITY ASSISTANCE PARTNERSHIPS
WITH TRUSTED ORGANIZATIONS. WE
CURRENTLY PARTNER WITH A FEW
CBOs TO CUSTOMERS. WE WANT TO
EXPAND THOSE PARTNERSHIPS. THERE
ARE TRUSTED MESSENGERS. IN
TODAY'S CLIMATE, WE RECOGNIZE
THAT GOVERNMENT AGENCIES ARE NOT
NECESSARILY THE MOST TRUSTED
INDIVIDUALS. SO THESE
PARTNERSHIPS ARE CRUCIAL TO
INCREASING ENROLLMENT IN ALL
PROGRAMS. WE WILL ALSO REGULARLY
UPDATE AND IMPLEMENT THE
BIANNUAL LANGUAGE ACCESS PLAN TO
MAKE SURE COLLEAGUES HAVE EASY
ACCESS SO WE ARE PROVIDING THE
LANGUAGES THAT FOLKS ARE
SEEKING, AND THE RESOURCES THEY
NEED. LASTLY, WE WILL DO
TARGETED RECRUITMENT TOWARDS
COMMUNITY SERVING BUILDINGS LIKE
MULTIFAMILY BUILDINGS, SMALL
BUSINESSES AND ORGANIZATIONS TO
INCREASE AWARENESS AND
PARTICIPATION IN OUR PROGRAMS,
AND HOPEFULLY, GET MORE FOLKS
ENROLLED. LASTLY, INCREASE
ADOPTION OF THE WEATHERIZATION
AND ENERGY EFFICIENT PROGRAMS BY
CREATING A MORE COMPREHENSIVE
ONE-STOP SHOP ESSENTIALLY WHERE
PEOPLE CAN COME IN AND IDENTIFY
WHICH PROGRAMS THEY QUALIFY FOR.
I ALSO WANT TO NOTE THAT AS WE
WERE HAVING CONVERSATIONS, WE
HEARD A WIDE RANGE OF FEEDBACK
NOT SPECIFIC FOR THIS, BUT WAYS
TO IMPROVE AS HE UTILITY THAT WE
ARE REFUNDING ON AS WELL. JUST
WANT TO RECOGNIZE THAT WE ARE
BEING VERY INTENTIONAL. FOLKS
MENTIONED THINGS NOT SPECIFIC TO
THIS, WE TAKE THAT FEEDBACK AND
TRY TO DO BETTER FOR THESE
CUSTOMERS. AND SO, THANK YOU.
>> OKAY. THANK YOU . NOW WE WILL
TALK ABOUT SOME OF THE TARGETS I
MENTIONED EARLIER. WE TALKED
ABOUT EQUITY INDICATORS AND
SPECIFIC ACTIONS. THE CEIP ALSO
REQUIRES TERROR -- TARGETS WE
HAVE ON THE CURRENT SLIDE. THESE
ARE RENEWABLE AND NON-OMITTING
TARGETS FOR SERVING RETAIL,
ELECTRIC LOAD FOR THE NEXT FOUR
YEARS. THE TABLE SUMMARIZES
PROJECTED PERCENTAGES OF
RENEWABLE AND NON-EMITTING
ENERGY USED TO SERVE CITY LIGHT
LOAD EACH YEAR DURING THE
FOUR-YEAR PERIOD FROM 2026
THROUGH 2029. THESE ARE TARGETS.
RENEWABLE, IF YOU NEED TO KNOW ,
INCLUDES WATER, WIND, SOLAR,
GEOTHERMAL , RENEWABLE NATURAL
GAS, RENEWABLE HYDROGEN, WAVES,
OCEAN, SOME BIO DIESEL FUEL, AND
ALSO BIOMASS ENERGY.
NON-EMITTING INCLUDES
ELECTRICITY FROM GENERATING
FACILITY OR A RESOURCE THAT
PROVIDES ELECTRIC ENERGY
CAPACITY, OR WHAT WE CALL
ANCILLARY SERVICES. -- TO AN
ELECTRIC UTILITY. THIS CAN
INCLUDE NUCLEAR AS THAT DOES NOT
EMIT GREENHOUSE GASES. IT
EXCLUDES RENEWABLE RESOURCES.
TWO SPECIFIC CATEGORIES. THESE
ARE THE NUMBERS WE ARE
WELL-POSITIONED TO MEET. JUST TO
REITERATE, THESE PERCENTAGES
REPRESENT WHAT PERCENT OF OUR
LOAD IS BEING MET WITH WHAT TYPE
OF ENERGY. THESE ARE THE GOALS.
WE ARE WELL AHEAD OF THE
EXPECTED. THE BLUE TABLE
CONTAINS REQUIRED SPECIFIC
TARGETS FOR RENEWABLE ENERGY,
ENERGY EFFICIENCY AND DEMAND
RESPONSE. THE STATE REQUIRES A
FOUR-YEAR TARGET, AS LISTED ON
THE SLIDE, BUT THERE IS AN
ADDITIONAL ANNUAL BREAKDOWN
INCLUDED IN THE CEIP TEMPLATE
THAT IS PART OF YOUR PACKET. THE
RENEWABLE ENERGY -- EXCUSE ME.
RENEWABLE ENERGY IS THE TOTAL
AMOUNT OF FORECASTER RENEWABLE
ENERGY GENERATION FROM THE 2024
CITY LIGHT INTEGRATED RESOURCES
PLAN PROGRESS REPORT . THIS IS
IN CONTRAST TO THE PREVIOUS
SLIDE, WHICH ONLY REFLECTS
ENERGY TO SERVE LOAD. -- OVER
THE NEXT FOUR YEARS, INCLUDING
PLANNED RESOURCE ADDITIONS. THE
RENEWABLE ENERGY TARGET IS THE
QUANTITY OF AVERAGE MEGAWATTS OF
ELECTRICAL ENERGY GENERATION. IT
IS NOT A NAMEPLATE CAPACITY OR
NEEDED RESOURCE ADDITIONS, BUT
RATHER, EXPECTED ANNUAL
GENERATION FROM EXISTING
RESOURCES. THE INTEGRATED
RESOURCE PLAN DOES SPECIFY THE
MEGAWATT NAMEPLATE OF ADDITIONAL
RESOURCES NEEDED, BUT THE
RENEWABLE ENERGY TARGETS FOR
THIS CEIP DOES NOT INCLUDE NEW
SOURCES . THE ENERGY EFFICIENCY
AND DEMAND RESPONSE TARGETS ARE
FOR ADDITIONAL AVERAGE MEGAWATTS
AND MEGAWATTS RESPECTIVELY. THE
ENERGY EFFICIENCY TARGET IS THE
AMOUNT EXPRESSED IN AN AVERAGE
MEGAWATT OF THE FIRST-YEAR
SAVINGS OF ENERGY EFFICIENCY
RESOURCES EXPECTED TO BE
ACQUIRED DURING THE PERIOD.
DEMAND RESPONSE TARGETS INCLUDES
AN AMOUNT EXPRESSED IN THE
MEGAWATTS OF DEMAND RESPONSE
RESOURCES -- SOURCES ACQUIRED
DURING THE PERIOD. THESE ARE
CONSISTENT WITH THE RESOURCES
PLAN AND DEMAND-SIDE MANAGEMENT
POTENTIAL ASSESSMENT, WHICH WE
HAVE HEARD A LOT ABOUT. WE WOULD
ALSO -- WE ARE ALSO FEELING LIKE
WE ARE IN A REALLY GOOD PLACE
WITH ALL OF THESE TARGETS WITH
THE CURRENT PORTFOLIO. THE
ENERGY EFFICIENCY AND DEMAND
RESPONSE TARGET -- ACTUALLY. I
JUST READ THAT. NEXT SLIDE.
>> YOUR CADENCE IS A LOT
DIFFERENT. [ LAUGHTER ] YOU
MIGHT WANT TO PEP IT UP A BIT.
>> GOT IT. JUST TO CLOSE OUT. I
WANT TO SHARE THAT CEIP IS
CONSISTENT WITH OTHER CITY LIGHT
PLANS, SUCH AS THE STRATEGIC
PLAN, INTEGRATED RESOURCES PLAN,
DEMAND-SIDE MANAGEMENT POTENTIAL
ASSESSMENT. IT IS ALSO
CONSISTENT WITH OTHER CITY PLANS
IN THE CLIMATE ACTION PLAN
UPDATE. AS A REMINDER, UTILITIES
ARE REQUIRED TO SUBMIT THIS
PLAN. IS DUE AT THE END OF THIS
YEAR, JANUARY 1, 2026. WITH
THAT, WE THANK YOU FOR YOUR
ATTENTION.
>> THANK YOU.
>> THANK YOU , CITY LIGHT T.
COLLEAGUES, COMMENTS OR
QUESTIONS.
>> QUICKLY . THANK YOU FOR YOUR
PRESENTATION. AND FOR THE
CONVERSATION WE HAD IN THE
OFFICE BEFORE RECESS. I WILL SAY
THE SAME THING COUNCILMEMBER
JUAREZ SO. CHANGES DO NEED TO BE
MADE. THE DISCUSSIONS HAVE BEEN
GOING ON FOR YEARS, AND WE
CONTINUE TO HAVE THEM. I THINK
WE ARE AT A POINT OR CHANGES DO
NEED TO BE MADE. THANK YOU FOR
ALL YOUR WORK. THE CONVERSATIONS
WE WERE HAVING ABOUT VULNERABLE
POPULATIONS , AND THE FACT THAT
THE VULNERABLE POPULATIONS
DON'T NECESSARILY LIVE IN THE
CITY OF SEATTLE, AND AS HE
UTILITY, THE PROVIDER THAT IS
REGIONAL BEYOND JUST OUR CITY
BOUNDARIES, IT IS OUR JOB AS THE
BOARD OF CITY LIGHT TO THINK OF
THEM AS WELL. AND FOR THOSE
MEDICALLY VULNERABLE
POPULATIONS, ESPECIALLY, AS YOU
SAID, WHEELCHAIRS, BREATHING
DEVICES. WHETHER THAT IS AN
OXYGEN CONDENSER OR MEDICINE IN
THE FRIDGE, 24 HOUR POWER OUTAGE
CAN SEND PEOPLE TO THE HOSPITAL
THAT ARE OTHERWISE STABILIZED. I
REALLY APPRECIATE YOUR WORK.
REALLY GOOD JOB. THANK YOU.
>> THANK YOU, COUNCILMEMBER
STRAUSS. COLLEAGUES, ANY
ADDITIONAL QUESTIONS AT THIS
TIME? IF NOT, I WILL MOVE US
FORWARD. I MOVE THAT THE
COMMITTEE RECOMMEND THE ADOPTION
OF RESOLUTION 32181. IS THERE A
SECOND?
>> SECOND.
>> THAT WAS ME THIS TIME. [
LAUGHTER ]
>> NOW YOU'RE JUST MESSING WITH
ME. I SECOND THAT, MADAME CHAIR.
>> THANK YOU, VICE CHAIR. IT IS
MOVED AND SECONDED TO ADOPT THE
RESOLUTION. ANY FINAL COMMENTS?
WILL THE CLERK PLEASE CALL THE
ROLL ON THE COMMITTEE
RECOMMENDATION TO ADOPT THE
RESOLUTION?
>> [ ROLL CALL ] THERE ARE FIVE
IN FAVOR, ZERO OPPOSED AND ZERO
ABSTENTIONS.
>> THE MOTION CARRIES. THE
COMMITTEE RECOMMENDS THE
RESOLUTION BE ADOPTED AND WILL
BE SENT TO THE SEPTEMBER 16 CITY
COUNCIL MEETING. THANK YOU FOR
YOUR PRESENTATION AND TIME
TODAY, AND FOR YOUR WORK. WITH
THAT, WILL THE CLERK PLEASE READ
ITEM 3 INTO THE RECORD?
>> COUNCIL BILL 121063,
ORDINANCE RELATING TO THE CITY
LIGHT DEPARTMENT AUTHORIZING THE
DEPARTMENT TO DEVELOP PROGRAMS,
ENTER INTO AGREEMENTS WITH
CUSTOMERS AND OTHER PARTIES AND
PROVIDE INCENTIVES FOR
MODIFICATIONS TO CUSTOMER
ELECTRICITY CONSUMPTION, AND
AMENDING SECTION 21.49.130 OF
THE SEATTLE MUNICIPAL CODE.
BRIEFING, DISCUSSION AND
POSSIBLE VOTE.
>> WONDERFUL. THANK YOU. WITH
THAT, IF YOU COULD TAKE A MOMENT
TO INTRODUCE YOURSELVES FOR THE
RECORD.
>> GOOD MORNING. GENERAL MANAGER
AND CEO OF SEATTLE CITY LIGHT.
>> GOOD MORNING, COUNCIL
MEMBERS. CONSERVATION POLICY
ANALYST AT SEATTLE CITY LIGHT.
>> GOOD MORNING, COUNCIL
MEMBERS. DIRECTOR OF CUSTOMER
ENERGY SOLUTIONS AT CITY LIGHT.
>> GOOD MORNING. CHIEF CUSTOMER
OFFICER AT SEATTLE CITY LIGHT.
>> CUSTOMER ENERGY SOLUTIONS AT
SEATTLE CITY LIGHT.
>> GOOD MORNING, CHAIR RINCK AND
COMMITTEE MEMBERS. TODAY WE ARE
HERE TO SEEK LEGAL AUTHORITY TO
CREATE DEMAND RESPONSE PROGRAMS
AND SERVICES. THIS IS AN
IMPORTANT STEP IN PREPARING
SEATTLE'S ENERGY FOR A CLEANER,
MORE AFFORDABLE AND MORE
RESILIENT FUTURE. THIS LEGAL
AUTHORITY WILL ENABLE US TO
FULFILL OUR OBLIGATION UNDER THE
CLEAN ENERGY TRANSFORMATION ACT
AND SUPPORTS THE TARGETS
IDENTIFIED IN THE INTEGRATED
RESOURCES PLAN. MORE
IMPORTANTLY, IT GIVES US
PRACTICAL TOOLS TO MANAGE ENERGY
USE DURING TIMES OF HIGH DEMAND.
DEMAND RESPONSE IS SIMPLE IN
CONCEPT . INSTEAD OF BUYING MORE
COSTLY POWER , OR BUILDING NEW
INFRASTRUCTURE , WE WORK WITH
CUSTOMERS TO SHIFT OR REDUCE
ENERGY USE WHEN THE GRID IS
UNDER STRAIN. CUSTOMERS, SUCH AS
STEEL, MAY RECEIVE INCENTIVES
FOR PARTICIPATING IN THE ENTIRE
SYSTEM BENEFITS FOR LOWER COST
AND GREATER RELIABILITY. THIS IS
ABOUT MORE THAN COMPLIANCE. IT
IS ABOUT LOWERING COSTS FOR ALL
CUSTOMERS , IMPROVING OUR
ABILITY TO HANDLE EXTREME
WEATHER , AND CUTTING EMISSIONS
BY REDUCING RELIANCE ON FOSSIL
FUEL BASED POWER PURCHASES. I AM
NOW GOING TO HAND IT OFF TO OUR
TEAM TO KICK OFF THE
PRESENTATION AND ANSWER ANY
QUESTIONS YOU MAY HAVE BEFORE
THE VOTE.
>> THANK YOU PEERK GOOD MORNING,
COUNCIL MEMBERS. WE ARE HERE
TODAY TO PRESENT ON A DEMAND
RESPONSE ORDINANCE . KAREN WILL
BE THE PRESENTER TODAY. BEFORE I
TURN IT OVER TO HER, I WOULD
LIKE TO OPEN WITH A FEW REMARKS.
FIRST, THE DEMAND RESPONSE
ORDINANCE SEEKS TO GAIN
AUTHORITY TO DO THREE THINGS.
ONE, BUILD OUT OUR DEMAND
RESPONSE PORTFOLIO AND ESTABLISH
DEMAND RESPONSE PROGRAMS FOR OUR
CUSTOMERS. TO OFFER INCENTIVES
FOR MODIFICATIONS TO CUSTOMER
CONSUMPTION , AND TO ENTER INTO
AGREEMENTS WITH CUSTOMERS AND
OTHER PARTIES. IT IS BY DESIGN
THAT WE ARE HERE TODAY,
ALONGSIDE OUR COLLEAGUES, WHO
PRESENTED ON THE CLEAN ENERGY
IMPLEMENTATION PLAN. AS YOU
HEARD, THE CEIP DOES MANY
THINGS, BUT ONE THING IT DOES IS
REQUIRE UTILITIES TO SET AND
ACHIEVE A FOUR-YEAR TARGET THAT
IDENTIFIES ALL ACHIEVABLE ,
AVAILABLE AND COST-EFFECTIVE
DEMAND RESPONSE IN OUR SERVICE
TERRITORY. FOR THE FIRST TIME,
OUR DEMAND RESPONSE POTENTIAL
ASSESSMENT IDENTIFIED DEMAND
RESPONSES -- RESPONSE A
COST-EFFECTIVE RESOURCE AS PART
OF THE PLAN. THAT IS WHERE YOU
SEE 12 MEGAWATTS BY 2029. THIS
IS EXTREMELY SIMILAR TO HOW WE
APPROACH ENERGY EFFICIENCY. WE
FOLLOW A METHODOLOGY SET BY
STATE LAW TO PERFORM A STUDY,
WHICH IDENTIFIES COST-EFFECTIVE
POTENTIAL. WE COME BEFORE
COUNCIL TO SET THAT TARGET. WE
DESIGN AND IMPLEMENT A PORTFOLIO
OF PROGRAMS TO MEET THAT TARGET.
WE PROVIDE INCENTIVES TO
CUSTOMERS THROUGH PARTICIPATION
AGREEMENTS, AND WE REPORT ON OUR
ACCOMPLISHMENTS TO THE STATE.
THE CEIP REQUIRES RESET AND ME A
TARGET FOR DEMAND RESPONSE. WE
HAVE AUTHORITY TO DO THIS FOR
ENERGY EFFICIENCY, BUT WE DO NOT
YET FOR DEMAND RESPONSE, WHICH
IS WHY WE ARE HERE TODAY. IN THE
TEN-YEAR STRATEGIC ROADMAP,
MANAGING LOAD GROWTH AND PEAKS
IS ONE OF FOUR STRATEGIC
OUTCOMES WITHIN THE POWER SUPPLY
FOCUS AREA. WHILE UTILITIES
ACROSS THE NATION RUN DEMAND
RESPONSE PROGRAMS, IT IS A NEW
AND VERY IMPORTANT TOOL IN THE
CITY LIGHT TOOLBOX TO
COST-EFFECTIVELY MANAGE PEAK,
IMPROVING RELIABILITY AT BOTH
THE SYSTEM AND DISTRIBUTION
LEVEL, MITIGATING RATE PRESSURE
AND REDUCING EMISSIONS IN THE
PROCESS. THIS ORDINANCE WILL
GIVE CITY LIGHT AUTHORITY TO
BUILD OUT AN ENTIRE PORTFOLIO OF
DEMAND RESPONSE PRODUCTS AND
SERVICES IN PARTNERSHIP WITH
CUSTOMERS, ENABLE US TO MEET THE
CEIP TARGETS AND STRENGTHEN OUR
ALIGNMENT WITH THE STRATEGIC
PLAN. WITH THAT, I WILL HAND IT
OFF TO KAREN TO LEAVE THE
PRESENTATION. THANK YOU.
>> I WAS JUST CHECKING IF THERE
ARE TECH ISSUES.
>> THE CLERK HAS STEPPED OUT FOR
A MOMENT. I AM GOING TO PAUSE US
HERE FOR ONE SECOND. I THINK THE
SLIDES SHOULD BE MOVING.
COUNCILMEMBER SAKA, ARE YOU ABLE
TO SEE THE SLIDE DECK? OKAY.
>> MADAME CHAIR. WAS THERE A
SLIDE DECK WHEN CRAIG WAS
SPEAKING?
>> NO. THAT WAS JOE SPEAKING.
THERE WERE NO SLIDES. IT WAS
JUST MY INTRO.
>> OKAY, GOOD. I THOUGHT IT WAS
ME. IT WAS ME.
>> JUST TO CONFIRM , YOU CAN SEE
A SLIDE RIGHT NOW THAT SAYS
AGENDA.
>> I CAN NOW. THANK YOU.
>> WE ARE ALL SETTLED. PLEASE
PROCEED.
>> THANK YOU, EVERYONE. ON THE
AGENDA FOR TODAY AND WANTED TO
WALK YOU THROUGH THE STRUCTURE
OF THIS PRESENTATION. I WILL
START BY GIVING SOME
DEFINITIONS, KEY TERMS AROUND
DEMAND RESPONSE THAT WILL GIVE
YOU SOME BACKGROUND AND HELP
IMPROVE YOUR UNDERSTANDING
THROUGHOUT THE PRESENTATION.
THEN I WILL MOVE INTO THE FUTURE
OUTLOOK AND HIGHLIGHT FUTURE
PROBLEMS WE MIGHT BE SOLVING FOR
WITH DEMAND RESPONSE. THIRD, I
WILL DISCUSS DRIVERS, DISCUSSING
WHY WE ARE INTERESTED IN DEMAND
RESPONSE AS A POTENTIAL TOOL. I
WILL HIGHLIGHT SOME
OPPORTUNITIES , DESCRIBE
DIFFERENT THINGS WE CAN TAP
INTO, AND WHAT EXAMPLES MIGHT
LOOK LIKE. FINALLY, I WILL
REITERATE THE PURPOSE OF THE
ORDINANCE AND HIGHLIGHT WHAT WE
ARE ASKING APPROVAL FOR. FOR
DEFINITIONS , THE FIRST TERM IS
DEMAND RESPONSE, WHICH IS A
BROAD TERM FOR STRATEGIES USED
TO SHIFT WHEN ELECTRICITY IS
CONSUMED, REDUCE CONSUMPTION
DURING PEAK TIMES, OR REDUCE
TOTAL CONSUMPTION. I WILL BE
USING THIS GRAPHIC ON THE SLIDE
TO DEFINE A COUPLE OF THE KEY
TERMS. I WILL START FROM THE
BOTTOM MOVING UP. ON THE X AXIS
IS TIME AND ON THE Y IS
KILOWATTS, THE UNIT FOR POWER.
STARTING FROM THE BOTTOM, LOAD
IS THE TOTAL AMOUNT OF ENERGY
THAT CUSTOMERS ARE EXPECTED TO
CONSUME OVER A PERIOD OF TIME. I
WILL BE TALKING ABOUT TWO TYPES
OF LOAD. THE FIRST IS BASELOAD,
WHICH IS THE SOLID BLACK LINE
RUNNING ACROSS THE MIDDLE OF THE
GRAPHIC. THIS REPRESENTS A STUDY
-- STUDY CONTINUOUS ELECTRICITY
DEMAND THAT ELECTRICAL GRID
NEEDS TO BE ABLE TO ME AT ALL
TIMES. THIS IS WHAT WE NEED TO
BE ABLE TO SERVE OUR CUSTOMERS.
MOVING TO THE GREEN LINE, WHICH
IS ACTUAL LOAD, THIS IS THE
TOTAL AMOUNT OF ENERGY BEING
USED OVER TIME. IT FLUCTUATES
BECAUSE IT DEPENDS ON CONSUMER
DEMAND THROUGHOUT THE DAY.
TYPICALLY, THE ACTUAL LOAD IS
BELOW THE BASELOAD, AS YOU WILL
SEE AROUND THE MIDDLE OF THE
GRAPHIC. THIS TYPICALLY MEANS WE
ARE ABLE TO MEET CUSTOMER
DEMAND, BUT WE ARE STARTING TO
SEE SOME PEAKS EXCEEDING THE
BASELOAD, ON THE LEFT AND RIGHT
HAND SIDE OF THE GRAPHIC. THAT
MEANS WE NEED TO START LOOKING
INTO NEW SOLUTIONS TO MEET THIS
INCREASED CUSTOMER DEMAND.
MOVING TO THE TOP. PEAK IS THE
MAXIMUM AMOUNT OF POWER
CUSTOMERS ARE EXPECTED TO
CONSUME INSTANTANEOUSLY. WHILE
LOAD IS HAPPENING OVER TIME,
PEAK IS HAPPENING AT A REALLY
SPECIFIC MOMENT IN TIME. AS AN
EXAMPLE, A LOT OF UTILITIES HAVE
AN EVENING PEAK SOMETIME BETWEEN
5:00 BM AND 7:00 P.M.,
TYPICALLY, BECAUSE LOTS OF
PEOPLE ARE RETURNING HOME FROM
WORK AND TURNING ON ALL THEIR
ELECTRICAL APPLIANCES AT ONCE.
MOVING INTO THE FUTURE OUTLOOK.
THESE ARE SOME OF THE PROBLEMS
WE MIGHT BE SOLVING FOR IN THE
FUTURE. ON THIS CHARGE, ON THE X
AXIS IS YEARS AND Y IS
MEGAWATTS, WHICH IS A UNIT FOR
POWER. ON THE LEFT SIDE OF THE
CHART WE ARE SEEING HISTORICAL
DATA. THESE ARE IN SOLID LINES.
THIS IS WHAT HAS ALREADY
HAPPENED IN THE PAST BUT ON THE
RIGHT SIDE OF THE CHART IS
FORECAST DATA. THIS IS WHAT WE
THINK WILL HAPPEN IN THE FUTURE
BASED ON MODELING. THE BOTTOM
GRAY LINE REPRESENTS OUR 2024
CAUSE, AND THE BLUE LINE ON TOP
OF THAT REPRESENTS THE 2023
FORECAST. THE ONE THING THE
CHANGE BETWEEN 2020 AND 2023 IS
THAT IN 2020 WE DIDN'T REALLY
FORESEE ANYTHING THAT WOULD BE
HAPPENING IN THE FUTURE THAT
WOULD REALLY INCREASE
ELECTRICITY DEMAND IN OUR
SERVICE AREA. HOWEVER, IN 2023,
WE UPDATED THE FORECAST AND
STARTED INCLUDING THE IMPACTS OF
ELECTRIFYING TRANSPORTATION AND
BUILDINGS, PRIMARILY. WHAT THIS
RESULTED IN, THE BOTTOM HALF OF
THE CHART SHOWS US THAT,
OVERALL, ENERGY CONSUMPTION IS
INCREASING OVER TIME. THE TOP
PORTION OF THE CHART SHOWS US
THAT THE PEAKS ARE GETTING
BIGGER. THIS MEANS THE MAXIMUM
AMOUNT OF POWER WE ARE USING AT
ONCE IS INCREASING. THIS IS
POSING AN INTERESTING ISSUE FOR
US, BECAUSE WE HAVE TO FIGURE
OUT HOW TO SOLVE FOR BOTH OF
THESE NEW CHALLENGES. INCREASE
IN OVERALL LOAD AND MORE EXTREME
PEAKS. MOVING INTO DRIVERS FOR
WHY WE ARE INTERESTED IN DEMAND
RESPONSE. BUILDING AND
TRANSPORTATION ELECTRIFICATION
ARE INCREASING CUSTOMER
ELECTRICITY NEEDS. WE ARE ALSO
SEEING INCREASED FREQUENCY,
DURATION AND MAGNITUDE OF
EXTREME WEATHER EVENTS, LIKE
VERY COLD OR HOT WEATHER. WE ARE
ALSO SEEING THAT WHOLESALE
MARKET PRICES ARE GOING UP OVER
ALL, BUT THEY ARE ALSO GETTING
MORE UNPREDICTABLY EXPENSIVE,
ESPECIALLY DURING EXTREME
WEATHER EVENTS. IN ORDER TO MEET
OUR FUTURE ELECTRICITY NEEDS, IT
REQUIRES US, AS A UTILITY,
ADDING A MIX OF SUPPLY-SIDE
RESOURCES BY LARGE-SCALE WIND
AND SOLAR FARMS, AND ALSO
DEMAND-SIDE RESOURCES SUCH AS
ENERGY EFFICIENCY AND DEMAND
RESPONSE. DEMAND RESPONSE IS A
DEMAND-SIDE RESOURCE THAT CAN
HELP MEET FUTURE ELECTRICITY
NEEDS IN THE CLEAN ENERGY
INFORMATION -- IMPLEMENTATION
PLAN TARGET OF 12 MEGAWATTS BY
2029. IN TERMS OF OPPORTUNITIES
FOR DEMAND RESPONSE, THERE IS
REALLY SOMETHING FOR EACH TYPE
OF CUSTOMER, WHETHER THEY ARE
RESIDENTIAL, COMMERCIAL OR
INDUSTRIAL. WE ARE SEEING THAT
IN AN INCREASINGLY ELECTRIFIED
WORLD, THERE ARE DIFFERENT
OPPORTUNITIES FOR CUSTOMERS TO
PARTICIPATE THROUGH DIFFERENT
TECHNOLOGIES, LIKE SMART
THERMOSTATS, WATER HEATERS,
HEATING AND COOLING EQUIPMENT,
ELECTRIC VEHICLES, LIGHTING
CONTROLS, BATTERIES, TO NAME A
FEW. THERE ARE ALSO MULTIPLE
MECHANISMS THEM FOR DELIVERY IN
DEMAND RESPONSE PROGRAM LIKE
HAVING AN EFFECTIVE PROGRAM,
DEVELOPING A RATE, OR EVEN
DIRECTLY CONTRACTING WITH
CUSTOMERS. IT IS LIKELY WE WILL
NEED TO TAP INTO MOST OF THESE
OPTIONS TO BE ABLE TO BUILD UP A
COMPREHENSIVE PORTFOLIO TO MEET
OUR TARGETS. HERE IS ONE EXAMPLE
I WANTED TO HIGHLIGHT OF AN
INDUSTRIAL DEMAND RESPONSE
PROGRAM. WE HAVE ACTUALLY HAD
SEVERAL LARGE KEY CUSTOMERS
EXPRESS INTEREST IN A DEMAND
RESPONSE OFFERED TO HELP THEM
MANAGE THEIR COSTS. THE KEY
DRIVER IS REALLY A DESIRE TO
SAVE ON THEIR ENERGY BILL, DATA
INCREASING RATES, AND ALSO
MARKET UNCERTAINTY FOR THEIR
PRODUCTS. THESE CUSTOMERS,
INCLUDING ASH GROVE, HAVE
EXPRESSED THIS INTEREST TO CITY
COUNCIL. AS A RESULT, CITY LIGHT
HAS COMMITTED TO PARTNERING WITH
THESE CUSTOMERS TO DEVELOP A
DEMAND RESPONSE OFFERING. WE ARE
CURRENTLY IN THE PROCESS OF
DESIGNING A PROGRAM, AND THIS
WILL LAUNCH BY THE END OF THE
YEAR IF THIS ORDINANCE IS
APPROVED. AT A HIGH LEVEL, TO
DESCRIBE THE PROGRAM, THE
UTILITY WILL ASK CUSTOMERS TO
REDUCE THEIR ELECTRICITY
CONSUMPTION WILL RECEIVE THE
WHOLESALE MARKET PRICES ARE
SUFFICIENTLY HIGH. THIS OFTEN
HAPPENS WHEN WE HAVE EXTREME
WEATHER EVENTS SUCH AS EXTREME
HOT OR COLD. THE CUSTOMERS CAN
THEN RESPOND BY EITHER
MODIFYING, DELAYING OR SHUTTING
DOWN THERE INDUSTRIAL PROCESSES
AS A RESULT, FOR RESPONDING
CUSTOMERS RECEIVE AN INCENTIVE.
THE PURPOSE OF THIS PROGRAM IS
TO AVOID HIGH WHOLESALE MARKET
PRICES YEAR-ROUND. THE DESIGN IS
INTENTIONAL TO IMPROVE VALUE FOR
BOTH THE PARTICIPANTS THROUGH
INCENTIVES, AND ALSO THE UTILITY
AND ALL RATEPAYERS BY REDUCING
OUR COSTLY PURCHASES ON THE
WHOLESALE MARKET, AND ALSO
INCREASING OPPORTUNITY TO
BENEFIT FROM ANY EXCESS
GENERATION WE MIGHT HAVE. TO
WRAP UP AND REITERATE THE
PURPOSE OF THIS ORDINANCE,
SEATTLE CITY LIGHT IS SEEKING
THE AUTHORITY TO AMEND THE
SEATTLE MUNICIPAL CODE TO
ESTABLISH DEMAND RESPONSE
PROGRAMS , OFFER INCENTIVES FOR
MODIFICATIONS TO CUSTOMER
CONSUMPTION, AND ENTER INTO
AGREEMENTS WITH CUSTOMERS AND
OTHER PARTIES. IN THIS CASE,
OTHER PARTIES REFERS TO ANY
THIRD PARTIES THAT MIGHT BE
MANAGING ENERGY USAGE. THANK
YOU.
>> THANK YOU. COLLEAGUES,
OPENING THIS FOR QUESTIONS. VICE
CHAIR JUAREZ.
>> -- YOU ARE MUTED. WE CANNOT
HEAR YOU.
>> THERE WE GO. THANK YOU,
MADAME CHAIR. JUST A QUICK
QUESTION BUT I KNOW YOU
MENTIONED SOME OF THE OTHER
INDUSTRIAL CLIENTS, WHICH WE
HAVE CONTRACTS WITH. WHEN YOU
SAY INCENTIVES, WHAT ARE YOU
SAYING? ARE YOU SAYING YOU WILL
LOWER THEIR COSTS?
>> TO ANSWER THAT BRIEFLY, I
WOULD SAY YES. THOSE REDUCTIONS
IN ENERGY CONSUMPTION DURING
THOSE PEAK PERIODS , WE WOULD
PROVIDE A FINANCIAL INCENTIVE
FOR THEM OPTING IN TO THAT
EVENT. WE WOULD NOTIFY THEM THE
DAY PRIOR . IF WE KNOW IT WILL
BE VERY HOT THE NEXT DAY AND
PRICES ARE FORECAST TO BE VERY
HIGH, THE CUSTOMER DECIDES
WHETHER OR NOT THEY WOULD LIKE
TO OPT INTO THE EVENT. IF THEY
DO, THEY WOULD REDUCE OR SHIFT
THEIR ENERGY CONSUMPTION FOR A
PERIOD OF 24 HOURS. WHAT THAT
LOOKS LIKE IS AN INCENTIVE CHECK
TO THAT CUSTOMER.
>> IF YOU DON'T HAVE THE
ANSWER, THAT'S OKAY, BUT I KNOW
ONE OF OUR BIGGEST INDUSTRIAL
CLIENTS. IT LOOKS LIKE THE
PROGRAM IS VOLUNTARY IF YOU
NOTIFY THE DAY AHEAD. WHAT ARE
WE TALKING ABOUT ? IF YOU HAVE
AN EXAMPLE . IF YOU DON'T, I
UNDERSTAND. WHAT DOES THE DOLLAR
FIGURE LOOK LIKE? YOU KNOW,
BASELINE WHAT THEY NORMALLY PAY?
I KNOW THEY ARE BIG CLIENTS.
>> I CAN PULL THAT UP HERE IN A
MOMENT. I WOULD SAY FOR A
PARTICULAR EVENT, IT MIGHT LOOK
LIKE, IN THE TENS OF THOUSANDS
OF DOLLARS . MAYBE HUNDREDS OF
THOUSANDS. IT REALLY DEPENDS ON
THE MARKET PRICE OF ELECTRICITY
AT THAT MOMENT. THAT CHARGE THAT
KAREN SHARED EARLIER , WHEN WE
ARE BUYERS ON THE MARKET, WHEN
THERE IS MORE -- IF WE DON'T
HAVE ENOUGH SUPPLY TO MEET
DEMAND AND HAVE TO GO BUY IT.
LET SAY IT COSTS 10 BUCKS AT THE
STORE PICK WE CAN BUY THAT
CAPACITY FROM A CUSTOMER FOR
FIVE DOLLARS AND RETURN THE
OTHER FIVE DOLLARS WE SAVE
THROUGH ALL OF OUR CUSTOMERS IN
THE FORM OF REDUCED RATES. RATE
PRESSURE.
>> GOT IT. THANK YOU.
>> I JUST WANT TO ADD THAT THE
INDUSTRIAL CUSTOMERS IS TAKING A
HIT. THEY ARE TAKING A HIT TO
NOT PRODUCE DURING THIS TIME.
THE INCENTIVE CHECK HELPS TO
OFFSET SOME OF THE COSTS THEY
INCUR BY DECREASING OUR PEAK
LOAD. THAT PEAK PRICE OF ENERGY,
WE HAVE SEEN IT ABOVE $1000 PER
MEGAWATT HOUR. YOU KNOW, THAT
CERTAINLY CAN OFFSET OR
CONTRIBUTE TO SOME SIGNIFICANT
SAVINGS FOR ALL CUSTOMERS ,
BECAUSE THE PRICE WE PAY PER
MEGAWATT HOUR OFF THE MARKET IS
SPREAD ACROSS ALL CUSTOMERS.
EVERY CUSTOMER BENEFITS, AND
ONLY A COUPLE OF LARGE CUSTOMERS
WILL BE TAKING THE FINANCIAL
HIT. THAT IS MEANT TO
INCENTIVIZE THAT. I HOPE THAT
HELPS.
>> IT DOES. THANK YOU.
>> THANK YOU FOR THAT QUESTION,
VICE CHAIR JUAREZ. COUNCILMEMBER
SAKA.
>> THANK YOU, CHAIR, AND THANK
YOU TO THE CITY LIGHT TEAM . CEO
FOR SHARING YOUR EXPERTISE ON
THIS VERY, VERY IMPORTANT TOPIC.
IT IS EXCEPTIONALLY IMPORTANT
FOR OUR CITY, IMPORTANT FOR OUR
CUSTOMERS AND RATEPAYERS ACROSS
THE REGION. IT IS ALSO IMPORTANT
FOR ME AND MY OFFICE BECAUSE ONE
OF THE INDUSTRIAL CUSTOMERS THAT
YOU REFERENCED, NUCOR, IS ONE OF
MY CONSTITUENTS . I HAVE HAD THE
PLEASURE AND PRIVILEGE OF
ENSURING THEIR OPERATIONS
FIRSTHAND AND WITNESSING THE
MAGIC MADE, SO TO SPEAK. I
LEARNED THAT STEEL MANUFACTURING
, STEEL PRODUCTION, IS A VERY
ENERGY INTENSIVE PROCESS. AND
SO, DEMAND RESPONSE CAPABILITIES
AND PRICING , THAT IS DEFINITELY
ONE OF THEIR TOP PRIORITIES FOR
THE CITY. AND SO, I AM DELIGHTED
THAT THIS PROPOSAL HERE IS
BEFORE US TO HELP ENABLE . IT
BENEFITS MORE THAN JUST THE
NUCOR OF THE WORLD. IT BENEFITS
ALL RATEPAYERS WHEN WE HAVE
FLEXIBLE PRICING OPTIONS LIKE
THIS AS WELL. THIS IS SUPER COOL
STUFF. LOVE TO HEAR IT. NUCOR
STEEL IS A HUGE CUSTOMER ALSO
HAPPENS TO BE A CONSTITUENT OF
MINE. IF I RECALL CORRECTLY,
THEY ARE THE NUMBER TWO TOP RATE
PAYING CUSTOMER FOR CITY LIGHT
AFTER THE UNIVERSITY OF
WASHINGTON, AT LEAST -- IT MIGHT
BE DATED BY NOW. IN ANY EVENT, I
AM EXCITED THIS IS BEFORE US.
THANK YOU FOR ALL THE HARD WORK
THAT WENT BEHIND IT. I HAVE NOT
YET -- I AM COMFORTABLE IF WE
NEED A VOTE TODAY. I HAVE NOT
YET HAD AN OPPORTUNITY TO
DIRECTLY ENGAGE WITH NUCOR OR
ANYONE ELSE ON THIS YET. WE WILL
DO THAT. BUT HAPPY TO VOTE ON IT
TODAY. THANK YOU.
>> THE EXAMPLE I AM SHARING HERE
IS JUST ONE. WE ARE LOOKING TO
BUILD OUT A COMPREHENSIVE
PORTFOLIO THAT SPANS ALL OF OUR
CUSTOMERS, AND ALL THE VARIOUS
DEMAND RESPONSE OPPORTUNITIES
FOR DIFFERENT TYPES OF IN USES.
WE APPRECIATE YOUR SUPPORT FOR
HELPING US TO BEGIN TO BUILD A
REPOST -- ROBUST PORTFOLIO, JUST
AS WE HAVE DONE WITH THE ENERGY
EFFICIENCY PORTFOLIO.
>> I WILL ALSO ADD THAT WE HAVE
BEEN PARTNERING VERY CLOSELY
WITH NUCOR AND OTHER LARGE
INDUSTRIAL CUSTOMERS AS WE
DESIGN AND DEVELOP THIS
PARTICULAR OFFERING TO ENSURE IT
IS MUTUALLY BENEFICIAL TO THOSE
CUSTOMERS AND CITY LIGHT AND ITS
CUSTOMERS.
>> WONDERFUL. THANK YOU ALL. TO
ECHO COUNCILMEMBER SAKA 'S
ENTHUSIASM OR EXCITEMENT, I
SHARE AND THAT. COINCIDENTALLY,
I WILL BE DOING A SITE VISIT AT
NUCOR TODAY. VERY TIMELY
CONSIDERING THIS LEGISLATION.
COLLEAGUES, ANY ADDITIONAL
QUESTIONS AT THIS TIME?
>> I JUST WANT TO ADD THAT I DID
MY FIELD TRIP THERE. PRETTY
COOL.
>> I AM EXCITED.
>> WEARING HATS AND GOGGLES.
>> GOT IT. I DID IT WEAR HEELS
TODAY. I HOPE THAT HELPS.
WONDERFUL. WITH THAT,
COLLEAGUES, IT IS OUR INTENTION
-- COUNCILMEMBER STRAUSS?
>> I WANTED TO SAY THANK YOU FOR
PUTTING THIS TOGETHER. I KNOW
THE DEMAND RESPONSE WILL HELP
US, ESPECIALLY ONCE WE GET A
LITTLE BIT CLOSER TOWARDS TIME
OF DAY PRICING. ALL OF THESE
THINGS TOGETHER WILL HELP US
SMOOTH THE BUMP IN THE LOAD
REALLY, IT WILL SAVE US MONEY
OVER TIME AND KEEP OUR
RESERVOIRS WERE FULL SO WE ARE
ABLE TO BE MORE RESPONSIVE TO
OUR CUSTOMERS. I THINK THE NEXT
PRESENTATION WILL DEMONSTRATE
THE NEED FOR US TO BE A LITTLE
BIT MORE INDEPENDENT, AND THIS
IS HOW WE DO THAT. THANK YOU FOR
YOUR WORK.
>> THANK YOU, COUNCILMEMBER
STRAUSS. FINAL QUESTIONS? IT IS
OUR INTENTION TO MOVE THIS
FORWARD TODAY. WITH THAT, I MOVE
THAT THE COMMITTEE RECOMMENDS
THE ADOPTION OF COUNCIL BILL
121063. IS THERE A SECOND?
>> SECOND.
>> IT HAS BEEN MOVED AND
SECONDED. ARE THERE ANY FINAL
COMMENTS? WILL THE CLERK PLEASE
CALL THE ROLL TO ADOPT THE
ORDINANCE?
>> [ ROLL CALL ] FIVE IN FAVOR,
ZERO A POST AND ZERO
ABSTENTIONS.
>> THE MOTION CARRIES. THE
COMMITTEE RECOMMENDATION THAT
THE ORDINANCE BE CONFIRMED WILL
BE SENT TO THE SEPTEMBER 16 CITY
COUNCIL MEETING. PERFECT. NOW WE
WILL MOVE ON TO ITEM 4. WILL THE
CLERK PLEASE READ IT INTO THE
RECORD?
>> COUNCIL BILL 121062 ORDINANCE
RELATED TO CITY LIGHT DEPARTMENT
AUTHORIZING THE EXECUTION OF A
16 YEAR POWER PURCHASE AGREEMENT
WITH THE BONNEVILLE POWER
ADMINISTRATION AND RELATED
AGREEMENTS. BREATHING,
DISCUSSION AND POSSIBLE VOTE.
>> THANK YOU SO MUCH. I WANT TO
GIVE FOLKS A MOMENT TO COME UP
TO THE FRONT. WHEN FOLKS GET
SETTLED AND READY, IF YOU COULD
PLEASE INTRODUCE YOURSELF FOR
THE RECORD BEFORE SPEAKING.
>> THANK YOU. THIS IS GENERAL
MANAGER AND CEO FOR SEATTLE CITY
LIGHT.
>> LEGAL AFFAIRS ADVISOR FOR
SEATTLE CITY LIGHT.
>> POWER SUPPLY OFFICER FOR
SEATTLE CITY LIGHT.
>> MANAGER OF POWER CONTRACTS
AND REGIONAL AFFAIRS FOR SEATTLE
CITY LIGHT.
>> GOOD MORNING, CHAIR RINCK AND
COMMITTEE MEMBERS. TODAY WE ARE
HERE TO BRIEF YOU ON SEATTLE
CITY LIGHT'S PROPOSED LONG-TERM
POWER PURCHASE AGREEMENT WITH
THE BONNEVILLE POWER
ADMINISTRATION OR BPA. THIS IS
KNOWN AS THE PROVIDER OF CHOICE
CONTRACT. THIS CONTRACT
REPRESENTS THE BACKBONE OF OUR
REGIONAL POWER SUPPLY AND IS
CRITICAL FOR ENSURING
AFFORDABLE, RELIABLE AND CLEAN
ELECTRICITY FOR SEATTLE THROUGH
2044. BPA SUPPLIES ROUGHLY 40%
OF SEATTLE CITY LIGHT'S LOAD
TODAY, MAKING IT OUR SINGLE
LARGEST SOURCE OF POWER. THE
HYDROPOWER IS CARBON FREE , COST
ABASED AND REGIONALLY CONTROLLED
, ALIGNING WITH SEATTLE'S
CLIMATE AND AFFORDABILITY GOALS.
WITHOUT THIS CONTRACT, CITY
LIGHT WOULD NEED TO REPLACE
ABOUT 570 AVERAGE MEGAWATTS OF
POWER AT TWO 2003 TIMES THE COST
OF BPA POWER. THE PROVIDER OF
CHOICE PROCESS WAS
COLLABORATIVE, DEVELOPED WITH
UTILITIES ACROSS THE NORTHWEST
TO ENSURE FAIRNESS, STABILITY
AND REGIONAL RELIABILITY.
CONTINUING THIS LONG-STANDING
PARTNERSHIP , MAINTAIN
SEATTLE'S RESILIENCY TO CLIMATE
CHANGE AND HELPS KEEP ENERGY
BURDENS LOWER FOR VULNERABLE
COMMUNITIES. TODAY WE ARE ASKING
FOR YOUR APPROVAL OF THE
ORDINANCE THAT AUTHORIZES CITY
LIGHT'S GENERAL MANAGER AND CEO
TO EXECUTE THE NEW BPA PROVIDER
OF CHOICE CONTRACT AND RELATED
AGREEMENTS. THIS STEP ENSURES
THAT SEATTLE LOCKS IN THE LEAST
COST, MOST RELIABLE RESORTS IN
THE REGION FOR THE NEXT TWO
DECADES. I WILL NOW HAND OFF THE
PRESENTATION TO TO PRESENT THE
SLIDE DECK AND ADDRESS ANY
QUESTIONS YOU MAY HAVE REGARDING
THIS LEGISLATION.
>> THANK YOU PEERK GOOD MORNING.
THE AGENDA FOR TODAY IS A LITTLE
BIT OF BACKGROUND ARE POWER
SUPPLY RESOURCES FOR SEATTLE
CITY LIKE A BACKGROUND ON THE
BONNEVILLE POWER ADMINISTRATION.
THEN WE GET INTO DETAILS ON THE
CONTRACT PROCESS. THIS SLIDE
SHOWS ARE 2024 POWERMAX. --
POWERMAX. DEGREES SLICES
BONNEVILLE POWER ADMINISTRATION,
ABOUT 45% OF THE POWER SERVE TO
CITY LIGHT CUSTOMERS. THANKS TO
THE OWNERSHIP OF SEVERAL LARGE
DAMS AND THE LONG-TERM HYDRO
CONTRACTS, CITY LIGHT HAS A VERY
CLEAN POWER SUPPLY. OVER 90% OF
OUR POWER MIX IS EMISSIONS FREE.
IN ADDITION, THE BLUE SLICE IS
THE OWNED HYDROPOWER PROJECT,
INCLUDING THE SKAGIT PROJECT .
THE REST OF THE MIX COMES FROM
WIND AND OTHER RESOURCES. WE ARE
FORECASTING ARE LOW TO GROW IN
THE COMING YEARS. THIS IS THE
SAME INFORMATION THAT KAREN
NICELY PRESENTED IN THE LAST
PRESENTATION. ALONG THE
HORIZONTAL AXIS WE HAVE YEARS
THROUGH 2045. ALONG THE VERTICAL
AXIS WE HAVE MEGAWATTS. THE
LOWER BLUE SOLID LINE IS WHAT
THE ACTUAL ENERGY USAGE LOOKED
LIKE OVER THE PAST 10 PLUS
YEARS. DESPITE RAPID GROWTH IN
SEATTLE, WE HAVE KEPT
ELECTRICITY USAGE FLAT TO
SLIGHTLY DECLINING DUE TO THE
INVESTMENTS WE HAVE BEEN ABLE TO
MAKE IN ENERGY EFFICIENCY. THE
TOP BLUE LINE IS THE PEAKS. THIS
IS THE HIGHEST ENERGY USAGE
DURING THE DAY. THESE HAVE GONE
UP AND DOWN, BUT OVER THE PAST
COUPLE OF YEARS, WE HAVE SEEN A
NOTABLE INCREASE IN PEAK
ELECTRICITY. WE HIT A NEW PEAK
RECORD IN DECEMBER 2022 , AND
THEN AGAIN IN JANUARY 2024 . WE
BEAT THAT PEAK BY OVER 100
MEGAWATTS. THE TWO HIGHEST
USAGES WE HAVE HAD IN THE PAST
30 YEARS. WE EXPECT THIS TO
CONTINUE TO GROW AS A RESULT OF
SOME OF THE CHANGING, MORE
EXTREME WEATHER WE ARE SEEING.
WE ALSO EXPECT OUR FORECAST LOW
TO GROW. WE SEE THAT IS BEING
IMPACTED BY ELECTIVE VACATION
FROM BUILDINGS AND
TRANSPORTATION , AS WELL AS A
GROWTH AROUND THE CITY. TODAY WE
ARE ASKING FOR APPROVAL TO SIGN
A NEW CONTRACT WITH BONNEVILLE
POWER ADMINISTRATION. IT IS A
FEDERAL AGENCY UNDER THE
DEPARTMENT OF ENERGY . IN
ADDITION TO PROVIDING ABOUT 45%
OF CITY LIGHT'S POWER, THEY
PROVIDE 20% OF THE POWER ACROSS
THE REGION IN THE NORTHWEST.
THIS SLIDE IS SHOWING THE
BONNEVILLE SERVICE TERRITORY
ACROSS THE YELLOW. THEY SERVE
ALL OF WASHINGTON, OREGON AND
IDAHO. AND THEN, PARTS OF
MONTANA AND SLIGHT BITS OF
CALIFORNIA. ON THIS SLIDE, EACH
OF THE ORANGE SQUARES IS ONE OF
THE BONNEVILLE POWER
ADMINISTRATION OPERATED DAMS .
WE'RE GETTING PRIMARILY
HYDROPOWER FROM BONNEVILLE. THEY
ALSO SELL THE OUTPUT OF THE
NUCLEAR COLUMBIA GENERATING
STATION. WE ARE BUYING POWER
FROM BPA THROUGH A LONG-TERM
CONTRACT THAT WILL BE EXPIRING
IN SEPTEMBER 2028. OVER THE PAST
FOUR YEARS, WE HAVE COLLABORATED
WITH BPA AND OTHER CUSTOMERS
ACROSS THE REGION TO DEVELOP A
NEW CONTRACT FOR WHEN A CURRENT
CONTRACT EXPIRES. JOSH WILL TALK
A LITTLE BIT ABOUT THE PROCESS.
>> THANK YOU FOR THE BPA
OVERVIEW. WE ARE IN THE HOME
STRETCH. FOR THE LAST PORTION OF
THIS PRESENTATION, I PLAN TO
BRIEFLY GO OVER THE PROVIDER OF
CHOICE PROCESS, AND THE
ORDINANCE 'S AUTHORITY REQUEST
TO ENTER INTO THE NEXT CONTRACT
WITH BPA. BONNEVILLE INITIATED
CONTRACT RENEWAL DISCUSSIONS
BACK IN 2021 AND HAS PARTNERED
WITH CUSTOMERS TO BUILD A
MUTUALLY ACCEPTABLE CONTRACT
BETWEEN BPA AND VARIOUS
CUSTOMERS AND CUSTOMER CLASSES.
BOTH BONNEVILLE AND ITS
CUSTOMERS PERFORMED A
SIGNIFICANT LEVEL OF ADVOCACY
AND DUE DILIGENCE THROUGHOUT
THIS PROCESS , INCLUDING POLICY
REVIEW, LEGAL REVIEW ,
ADDRESSING RATE DESIGN EQUITY,
AND UPDATES TO PRODUCT DESIGN.
THIS WAS A LENGTHY PROCESS THAT
ONLY RECENTLY IN THE LAST TWO OR
THREE MONTHS HAS CUMULATED IN
THE FINAL CONTRACT LANGUAGE WE
ARE SEEKING APPROVAL TO ENTER
INTO. THE CONTRACT ITSELF IS A
POWER PURCHASE AGREEMENT TO
PURCHASE OUR SHARE OF THE
FEDERAL SYSTEM FOR 16 YEARS WITH
NO DISRUPTION TO CONTINUITY OF
SERVICE. THE CURRENT CONTRACT
EXPIRES ON SEPTEMBER 30, 2028.
THE NEW TERMS AND SERVICE
OFFERINGS START OCTOBER 1 AND
SERVICE OFFERINGS START OCTOBER
1, 2044 -- OCTOBER 1, 2028. THIS
IS A LARGE AND IMPORTANT PART OF
OUR PORTFOLIO . IT HAS A TOTAL
EFFECT A COST OF APPROXIMATELY
$3 BILLION OVER THE COURSE OF
THE CONTRACT. IN TERMS OF VALUE,
THERE ARE NO OTHER RESOURCES
AVAILABLE TO SERVE OUR CUSTOMERS
AT THE VOLUME AND PRICE IN THE
MARKET TODAY, OR PROJECTED INTO
THE FUTURE. THIS SLIDE
ILLUSTRATES ON THE VERTICAL AXIS
THE AVERAGE PRICE PER MEGAWATT
HOUR OF RESOURCE TYPES CITY
LIGHT INCLUDED IN EVALUATING THE
2024 INTEGRATED RESORTS LAMPERT
ON THE HORIZONTAL AXIS, THE
RESOURCE TYPES. THE BONNEVILLE
CONTRACT PRICE IS JUST ABOUT
HALF THE PRICE OF THE TWO
AVAILABLE INTERMITTENT
NON-EMITTING RESOURCES, WIND AND
SOLAR, AND MORE THAN THREE TIMES
LESS EXPENSIVE THAN A BASELOAD
NON-EMITTING RESOURCE SUCH AS
GEOTHERMAL. NONE OF THESE
RESOURCE TYPES CAN PROVIDE THE
SAME LEVEL OF PRICE OR VALUE AND
VOLUME THAT THE BONNEVILLE
PREFERENCE POWER CAN PROVIDE.
AGAIN, AS REFERENCED EARLIER,
BONNEVILLE PROVIDES BETWEEN 40%
TO 40% -- 45% OF OUR ANNUAL
ENERGY NEEDS. AS THE CONCLUDING
SLIDE, WHAT WE ARE -- INCLUDING
THE BACKGROUND PROVIDED , THE
INFORMATION ON THE DUE
DILLIGENCE WE HAVE PERFORMED ,
THE VALUE, THE PRODUCT WAS IN
TERMS OF THE AGREEMENT, AS WELL
AS THE PRACTICAL CONSIDERATIONS
ASSOCIATED WITH RESOURCE COSTS
AND AVAILABILITY, WE ARE
REQUESTING THE AUTHORITY TO
ENTER INTO A NEW AGREEMENT WITH
BONNEVILLE THROUGH THIS
ORDINANCE. THAT CONCLUDES OUR
SLIDES. WE ARE HAPPY TO ANSWER
QUESTIONS.
>> THANK YOU FOR THE
PRESENTATION. COLLEAGUES,
QUESTIONS. COUNCILMEMBER
STRAUSS.
>> WE HAD QUITE A BIT OF
DISCUSSION. WE KNOW THAT
BONNEVILLE POWER IS UNDER
IMMENSE PRESSURE FROM ALL OF
THEIR ENERGY DEMANDS ON THE EAST
SIDE OF THE STATE AND OTHER
PLACES. IT WILL BECOME MORE
EXPENSIVE. ALL THE WORK WE COULD
DO TO DRIVE DOWN OUR DEMAND HERE
IN THE CITY WHILE UNDERSTANDING
OUR DEMAND CURVE WILL KEEP GOING
UP, AND FOR GOOD REASON, BUT
THEN HOW WE SUPPLEMENT THAT. I
KNOW IN THE OTHER CONVERSATIONS
WE HAVE HAD, WE HAVE HAD MANY
DIFFERENT PRESENTATIONS OVER THE
LAST FEW MONTHS ABOUT CREATING
PUBLIC-PRIVATE PARTNERSHIPS . WE
HAVE GOT THE SOLAR PROJECT GOING
ON IN OREGON RIGHT NOW. WE HAVE
THE DEMOND -- DEMAND RESPONSE WE
JUST DISCUSSED. WE ARE LOOKING
AT OTHER GENERATION IDEAS.
ANYTHING ELSE WE NEED TO THINK
ABOUT AS WE ARE LOOKING AT
PROVIDER OF CHOICE CONTRACT ?
ESPECIALLY WITH BONNEVILLE AND
ALL THE CHANGES GOING ON AT THE
FEDERAL GOVERNMENT?
>> BONNEVILLE WILL CONTINUE TO
BE A REALLY IMPORTANT PART OF
OUR PORTFOLIO. AS A PREFERENCE
CUSTOMER UTILITY, WE HAVE ACCESS
TO A PORTION OF THE SYSTEM. WE
WILL CONTINUE TO PURSUE THAT AND
WORK CLOSELY WITH BONNEVILLE AND
OTHER PUBLIC POWER COLLEAGUES TO
MAKE SURE THAT CONTINUES TO BE
AN AVAILABLE RESOURCE FOR US. AS
YOU MENTIONED, WE'RE SEEING THE
LOAD GROW. WE WILL BE PURSUING
OTHER OPTIONS TO MEET THAT LOAD
GROWTH. DEMAND RESPONSE, ENERGY
EFFICIENCY WILL BE IMPORTANT
PARTS OF THAT. WE WILL ALSO LOOK
AT LARGE UTILITY SCALE
RESOURCES, WIND, SOLAR,
GEOTHERMAL, AS WELL AS SMALL
REACTORS.
>> IF WE COULD GO BACK TO SLIDE
NINE THAT TIED THIS ALTOGETHER.
YOU HAVE GOT WIND, SOLAR, THE
BPA CONTRACT, GEOTHERMAL, ALL
THAT DIFFERENT COST. WITHIN THIS
GREEN SECTION, THE $40 PER
MEGAWATT HOUR, IF WE ARE HAVING
TO BUY POWER FROM BONNEVILLE, IT
IS MORE THAN WHAT IS IN THIS
CONTRACT. IS THAT AT A DIFFERENT
COST?
>> YES. THE CONTRACTORS ACCESS
TO A PORTION OF THE SYSTEM. IT
IS CALLED TIER 1. BONNEVILLE
SERVES UP TO US AT COST. THEY
HAVE INVESTED A LOT OF MONEY
INTO BUILDING OUT THESE
HYDROPOWER PROJECTS. THEY ARE
VERY LAW OH -- LOW-COST NOW THAT
THEY ARE OPERATING. IF WE WANT
TO GO BEYOND THE TIER 1 PORTION,
THE REST WOULD BE SOLD AT MARKET
COST. THAT WOULD BE MORE
EXPENSIVE, SIGNIFICANTLY,
COMPARED TO THE $40 PER MEGAWATT
HOUR.
>> I AM SEEING 20% NORTHWEST.
THE BPA PROVIDES 28% . CAN YOU
REMIND ME HOW MUCH? 24% TO THE
CITY LIGHT?
>> IN THE 40s. BETWEEN 40% AND
45%.
>> WE ARE BASING ABOUT HALF OF
OUR RATE ON THIS GREEN BAR AT
$40 PER MEGAWATT HOUR. IT IS
ESSENTIALLY CORRECT, RIGHT?
>> THAT'S RIGHT. IT WILL
CHANGE. IT DOES CHANGE YEAR TO
YEAR DEPENDING ON THE WATER. IT
IS SO HYDROPOWER DEPENDENT. AS
THE LOAD GROWS, THAT SLICE FROM
BONNEVILLE WILL STAY THE SAME
SIZE AS A PERCENTAGE, IT WILL GO
DOWN. BUT IT IS A SIGNIFICANT
PART OF THE PORTFOLIO.
>> THAT IS SUCH AN IMPORTANT
THING THAT UNDERPINS ALL OF OUR
WORK HERE AT CITY LIGHT. YES, WE
GET 20% OF POWER FROM THE SKAGIT
HYDRO FACILITIES. YOU KNOW, I
DON'T KNOW WHAT THE BOUNDARY
DAM --
>> 20.
>> BOUNDARY ALONE ANOTHER 20.
FROM THERE, IT IS STILL 60% OF
OUR POWER LOAD WE HAVE TO GET.
SO THIS IS WHERE -- THIS IS WHY
WE HAVE BEEN ABLE TO KEEP RATES
DOWN. IF THIS CHANGES, IT
CREATES A BIG PROBLEM. THAT IS
THE IMPORTANCE OF THIS CONTRACT.
TYING IT BACK TO WHAT WE HAVE
BEEN DISCUSSING BEFORE, IF WE
ARE NOT ABLE TO GET OUR DEMAND
PEAKS SHAVED TO A LOWER LEVEL,
WE ARE GOING TO HAVE A MUCH
BIGGER PROBLEM, BECAUSE, CAN YOU
REMIND ME -- THE PUBLIC MARKET
FOR BONNEVILLE 'S POWER CHANGES
EVERY DAY. WHAT IS THE RANGE?
>> HOURLY, AND EVEN WITHIN THAT.
THE AVERAGE COST ON THE MARKET
FOR THE LAST FIVE YEARS HAS BEEN
IN THE 70s. BUT IT PEAKS WELL
OVER $1000 AT THOSE TOP HOURS
WHEN EVERYBODY NEEDS IT . IT WAS
PEAKING IN 2024 JANUARY.
>> IT WAS CONSISTENTLY $1000 PER
MEGAWATT HOUR OVER MLK WEEKEND.
>> EVERY HOUR EVERYONE ELSE WHO
DID NOT HAVE A CONTRACT LIKE IN
THIS GREEN BAR WAS PAYING $1000
FOR WHAT WE WERE PAYING 40.
>> WE WERE ALSO IN THAT MARKET.
WE WERE ALSO SELLING IN THAT
MARKET. BUT YES, IF WE DIDN'T
HAVE THE ENERGY AND HAD TO BUY
IT, IT WAS $1000 PER MEGAWATT.
THAT IS WHAT EVER UTILITY FACED.
SOME OF THEM RAN INTO $35
MILLION-$100 MILLION EXPENSE IN
ONE WEEKEND BECAUSE OF THAT.
>> AND THIS IS A 16 YEAR
PURCHASE AGREEMENT?
>> THAT'S RIGHT.
>> SO THIS WILL BE ON THE BOOKS
FOR THE NEXT 16 YEARS.
>> IT WILL GO THROUGH 2044.
>> OKAY. ANY REASON WE DON'T DO
LONGER? I KNOW THAT THE
RELICENSING PROCESS LAST 30
YEARS. IS THIS A STANDARD AMOUNT
OF TIME? SHOULD WE ASK FOR
LONGER?
>> BONNEVILLE HAS A STATUTORY
REQUIREMENT AROUND HOW LONG THE
CONTRACT IS. AND SO, SEVERAL
YEARS AHEAD OF THAT 2044 END
DATE WE WILL START NEGOTIATIONS
FOR THE NEXT CONTRACT.
>> HERE IS A TRICK QUESTION WE
ASKED IN THE BRIEFING . WHAT IS
THE DIFFERENCE BETWEEN THE
ROTATORS IN THE BONNEVILLE
SYSTEM THEN OUR SYSTEM? [
LAUGHTER ] WE WILL GET BACK TO
YOU ABOUT THAT LATER. WHICH ONE
IS WHICH? WE WILL FIND OUT ON
THE NEXT EPISODE OF THE
SUSTAINABILITY, CITY LIGHT AND
ARTS AND CULTURE COMMITTEE. WITH
THAT, OVER TO YOU, CHAIR. THANK
YOU FOR ALL YOUR WORK.
>> THANK YOU, COUNCILMEMBER
STRAUSS. COLLEAGUES, ADDITIONAL
QUESTIONS? NOT SEEING ANY RIGHT
NOW. I WILL HIGHLIGHT ONE
BUILDING ON OF POINT THAT
COUNCILMEMBER STRAUSS MAY. IN
PARTICULAR TO BONNEVILLE, I KNOW
AT THE BEGINNING OF THIS YEAR,
THERE WAS A SEATTLE TIMES PIECE
RELATED TO LAOS BY THE FEDERAL
ADMINISTRATION WORKERS AT
BONNEVILLE. THAT, OF COURSE,
RAISING CONCERNS ABOUT THE
ABILITY FOR BONNEVILLE TO
PRODUCE ENERGY AND RISING COSTS.
CAN YOU SPEAK TO HOW THAT MAY
HAVE BEEN ADDRESSED IN RECENT
MONTHS AND WHERE THINGS STAND
RIGHT NOW?
>> SURE. THE SECOND GO AROUND OF
VOLUNTARY REDUCTIONS WAS NARROW
ROAD SO THAT KEY POSITIONS AT
BONNEVILLE WERE NOT OFFERED
THAT, WHICH HELPED CONSIDERABLY.
JUST IN THE LAST WEEK OR SO, THE
HIRING FREEZE FOR A SMALL AMOUNT
OF SPECIFIC POSITIONS HAS BEEN
LIFTED. THEY ARE ABLE TO POST TO
FOR SOME OF THE POSITIONS THEY
NEED TO REPLACE IN CRITICAL
AREAS. YOU KNOW, OPERATIONAL,
MARKETING, ENGINEERING KINDS OF
THINGS. ANYTHING ELSE YOU WOULD
LIKE TO ADD?
>> NOPE.
>> THAT IS EXACTLY RIGHT. THE
END OF LAST WEEK THE
ADMINISTRATION LOOKED AT THE
FREEZE ON HIRING FOR
MISSION-CRITICAL STAFF AT
BONNEVILLE.
>> THAT'S A GREAT UPDATE AND
WHAT I CERTAINLY NEEDED TO HEAR
BEFORE MOVING FORWARD. I WANT TO
COMMEND THE WORK OF CITY LIGHT
ALSO WORKING WITH CONGRESSIONAL
DELEGATION AND OTHERS IN D.C. TO
ENSURE THAT BONNEVILLE REMAINS
ABLE TO FULFILL ITS ROLE IN
PROVIDING MUCH POWER TO THE
PACIFIC NORTHWEST. THANK YOU FOR
YOUR WORK.
>> THANK YOU.
>> COLLEAGUES, ANY FINAL
QUESTIONS? WE ARE TAKING ACTION
ON THIS TODAY. NOT SEEING ANY.
WITH THAT, I MOVE THAT THE
COMMITTEE RECOMMENDED ADOPTION
OF COUNCIL BILL 121062. IS THERE
A SECOND?
>> SECOND.
>> THANK YOU, VICE CHAIR. IT HAS
BEEN MOVED AND SECONDED TO
RECOMMEND THE ADOPTION OF THE
ORDINANCE. ANY FINAL COMMENTS?
WILL THE COMMITTEE CLERK PLEASE
CALL THE ROLL OF THE COMMITTEE
RECOMMENDATION TO ADOPT THE
ORDINANCE?
>> [ ROLL CALL ] THERE ARE FIVE
IN FAVOR, ZERO OPPOSED AND ZERO
ABSTENTIONS.
>> THE MOTION CARRIES. THE
COMMITTEE RECOMMENDATION THAT
THE ORDINANCE BE THE FIRM WILL
BE SENT TO THE SEPTEMBER 16 CITY
COUNCIL MEETING. COLLEAGUES, WE
HAVE REACHED THE END OF TODAY'S
AGENDA. IS THERE ANY FURTHER
BUSINESS TO COME BEFORE THE
COMMITTEE BEFORE WE ADJOURN? AND
THANK YOU, CITY LIGHT, FOR BEING
HERE. ANY FURTHER BUSINESS?
>> THANK YOU.
>> THANK YOU. WE ALL LEARNED A
LOT, COLLEAGUES. LIKE NOT TO
CROSS THE VICE CHAIR WHEN IT
COMES TO A SECOND. THANK YOU,
VICE CHAIR.
>> I JUST WANT YOU TO WATCH
GALAXY QUEST. IT IS A GREAT
SCENE. [ LAUGHTER ] I KNOW WHAT
I AM DOING THIS WEEKEND.
>> THANK YOU.
>> THANK YOU, ALL. HEARING NO
FURTHER BU