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You are here: Home / Industry / Seattle Mayor Issues 2010 Budget

Seattle Mayor Issues 2010 Budget

October 7, 2009 By Brittany Quigley

 Outgoing Seattle Mayor, Greg Nickels, released his proposed 2010 budget last week. The budget recognizes the difficult economy and proposed an 8.8% increase in electricity rates for Seattle City Light. The Mayors press release indicates;

“The proposed budget assumes an 8.8 percent City Light rate increase on Jan. 1, 2010, which is included in legislation being submitted to Council. The rate increase is driven by lower wholesale energy sales, increasing costs (such as federal licensing), and general inflation. To reduce the size of the increase, Nickels eliminated 68 full-time equivalent City Light positions.
If adopted, City Light’s rates would still be lower than in 2002, when Nickels took office. And City Light has dramatically improved its financial situation since the West Coast power crisis in 2000 and 2001:
2002
2008
Rates: 6.30 cents per kWh
Rates: 5.64 cents per kWh
Bond rating: A+ (S & P)
Bond rating: AA- (S & P)
Net Income: -$1.9 million
Net Income: $131.6 million
Metric tons of greenhouse gas emissions offset: 0
Metric tons of greenhouse gas emissions offset: 64,345

Despite budget reductions, City Light is proposing to continue expansion of its conservation programs in 2010. In fact, simple conservation measures can offset the rate increase for many households. For example, an average residential customer can offset the increase by replacing 10 incandescent lights with high-efficiency bulbs or other conservation measures.”

The City Council will adopt a final budget likely by the end of November. A Rate Advisory Committee has been formed by the Mayor and the Council to review potential rate adjustments for Seattle City Light. NEEC is a participant on this committee. The advisory committee will make its recommendations to the Mayor and Council in early November. 
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