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 Seattle City Light
News Release |
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SEATTLE CITY LIGHT LOCKS IN LONG-TERM CONTRACT FOR BPA POWER |
For Immediate Release:
12/8/2008 1:59:00 PM |
For More Information Contact:
Scott Thomsen (206) 386-4233
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Agreement Secures Utility’s BPA Electric Supply Through 2028
SEATTLE - Seattle City Light Superintendent Jorge Carrasco announced today that the utility has signed a 17-year contract with the Bonneville Power Administration that secures approximately 40 percent of City Light’s energy load through Sept. 30, 2028.
"This contract is great news for Seattle City Light and its customers," Carrasco said. "By extending our relationship with BPA, we have secured our ability to acquire a substantial amount of low-cost hydroelectric power for the next two decades. This will help us continue to meet our customers’ electricity needs with low-cost, reliable, environmentally sensitive energy."
City Light has purchased power from BPA under long-term agreements for more than 30 years. The utility’s current contract expires in 2011, when the new power sales agreement will start.
Under the new agreement, City Light will purchase about 530 average Megawatts of electricity from BPA each year at the Tier 1 wholesale price. One average Megawatt is equal to 1 million Kilowatt-hours of electricity every hour or every day for a year. The utility also has the ability to purchase additional energy under BPA’s Tier 2 structure. How much additional electricity City Light has the right to buy from BPA during the term of the new contract will be determined by City Light's load growth after 2010.
BPA’s rates are adjusted every two years through a public rate case. BPA’s current wholesale power rates average about 2.7 cents per Kilowatt-hour. That’s less than half the current long-term forecast for spot market prices or the estimated costs per Kilowatt-hour to develop and build a new power plant.
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Seattle City Light is a publicly owned utility dedicated to exceeding our customers' expectations in producing and delivering low cost, reliable power in an environmentally responsible and safe way. We are committed to delivering the best customer service experience of any utility in the nation.
Seattle City Light
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Customer Service
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Call (206) 684-3000
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