Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90Seattle City Light 2015 Annual Report - 8 - THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 and 2014 Other Assets 2015 Compared to 2014 Other assets increased by $19.8 million to $339.5 million. Conservation costs, net, increased by $15.7 million. The regulatory asset for environmental cleanup costs decreased by $3.3 million and are mostly associated with cleanup of the Lower Duwamish Waterway Superfund Site. These environmental costs are being recovered through rates over a 25 year period. The balance of Other assets increased by $7.4 million. Long term receivables increased $10.1 million as the result of completion of Shoreline underground electrical infrastructure. This was partly offset by a net $2.1 million decrease in damage repair costs awaiting billing to other parties. Other deferred charges decreased by a net $0.6 million. See Note 6 Other Assets of the accompanying financial statements. 2014 Compared to 2013 Other assets increased by $18.7 million to $319.7 million. Conservation costs, net, increased by $13.8 million. The regulatory asset for environmental cleanup costs increased by $2.8 million, mostly associated with cleanup of the Lower Duwamish Waterway Superfund Site. These environmental costs are being recovered through rates over a 25 year period. Other assets increased net $2.1 million. Deferred Outflows of Resources 2015 Compared to 2014 Deferred outflows of resources increased by $30.5 million to $49.8 million. In 2015, the Department implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27 concerning accounting for pension plans. The Department deferred 2015 employer pension contributions and losses related to differences between projected and actual investment earnings totaling $33.4 million. See Note 11 Seattle City Employees’ Retirement System of the accompanying financial statements. Charges on advance refunding decreased a net $2.9 million to $16.4 million. Net activity is the result of additions due to new refunding bond issues and decreases for amortization. 2014 Compared to 2013 Deferred outflows of resources are specifically for Charges on advance refunding of prior lien bonds in recent years. In 2014, Charges on advance refunding decreased by $6.7 million for a total of $19.3 million. 8