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 - 12 - 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 RESULTS OF OPERATIONS Condensed Statements of Revenues, Expenses, and Changes in Net Position ($ in millions) 2015 2014 2013 Operating revenues 882.9 $ 886.4 $ 842.2 $ Nonoperating revenues 16.7 18.5 11.1 Total revenues 899.6 904.9 853.3 Operating expenses 772.0 734.1 711.0 Nonoperating expenses 76.5 77.9 79.3 Total expenses 848.5 812.0 790.3 Income before capital contributions and grants 51.1 92.9 63.0 Capital contributions 39.0 27.7 47.9 Capital grants 0.4 0.7 1.8 Total capital contributions and grants 39.4 28.4 49.7 Change in net position 90.5 $ 121.3 $ 112.7 $ Year Ended December 31 SUMMARY 2015 Compared to 2014 Change in net position for 2015 was $90.5 million, a decrease of $30.8 million or 25.4% from 2014 change in net position of $121.3 million due in large part to lower net wholesale energy sales compared to 2014. Higher retail electric sales, transfers from/(to) RSA, and capital contributions were offset by lower power related revenues, net, and higher distribution, administrative and general, taxes, and depreciation, in addition to the lower net surplus power sales. 2014 Compared to 2013 Change in net position for 2014 was $121.3 million, an increase of $8.6 million or 7.6% from 2013 change in net position of $112.7 million. Higher retail electric sales, net wholesale energy sales, and investment earnings were offset in part by higher power related expenses, conservation, administrative and general, taxes, and depreciation. Lower transfers from/(to) RSA and capital contributions also decreased revenues. 12