 Seattle City Light
News Release |
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| Subject:
Mayor announces biggest City Light rate cut in 35 years |
For Immediate Release:
7/19/2006 11:00:00 AM |
For More Information Contact:
Suzanne Hartman (206)615-0050
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Mayor announces biggest City Light rate cut in 35 years
Sound management ends energy crisis woes;
rates now among the lowest in the nation
SEATTLE- Mayor Greg Nickels today proposed the most sizable rate cuts for
City Light customers for at least the past 35 years. Under the mayor’s
2007 and 2008 plan, rates would drop between 2.2 percent for Seattle City Light
residential customers and 14 percent for medium-sized commercial customers.
The mayor’s new rates proposal sets the stage for steady and reliable
power rates for Seattle City Light customers in the years ahead.
“This proposal signals the end of the 2001 energy crisis for Seattle’s
electricity customers,” said Nickels. “With prudent planning and
good financial management, we have dug ourselves out of the financial hole
we were in five years ago. The days of using our credit card and racking up
debt are over. We are now in a position to begin work on some major projects
such as Alaskan Way tunnel utility relocation while reducing rates and paying
down debt.”
City Light is projecting net revenues for the biennium of $317.6 million from
sales of surplus power. The utility also has reduced its annual operating and
capital spending by $22 million since 2000.
“We’ve put City Light back on solid ground by using conservative
financial practices and living within our means,” Nickels said. “The
hard work is paying off for the utility and the ratepayers.”
The new rates mean that Seattle has the lowest commercial rate and the second
lowest residential rate of comparably-sized cities in the nation. In addition
to general rate relief, the proposal achieves City Light’s long-term
goal of setting rates to reflect the actual cost to serve its various classes
of customers. As a result, Seattle residential and low-income customers will
pay a lower rate, as will commercial and industrial customers. Other customers
may experience a small rate increase to reflect cost of service delivery.
The rate proposal now goes to the City Council for review and consideration.
Once passed, new rates will take effect on January 1, 2007.
“The proposed rates will generate sufficient revenue to operate our
utility, maintain our physical plant and infrastructure, pay down the debt
incurred as a result of the energy crisis, align rates with the true cost of
service, and provide more financial flexibility to carry us through good and
bad water years,” said Jorge Carrasco, superintendent of Seattle City
Light.
“These rates are fair and equitable,” Carrasco said. “No
customer classes will be unfairly subsidizing others. The mayor’s proposal
delivers on the rate relief we promised our customers, it will address our
remaining energy crisis debt and it will put us in a sound financial position
to meet any future challenges.”
For more information visit the mayor’s web site at www.seattle.gov/mayor.
Get the mayor’s inside view on efforts to promote transportation, public
safety, economic opportunity and healthy communities by signing up for The
Nickels Newsletter at www.seattle.gov/mayor/newsletter_signup.htm
View the rates proposal
fact sheet - Acrobat PDF
View a chart outlining
the impact of the rate cuts - Acrobat PDF
- 30 -
Office of the Mayor
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