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 29 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 - 29 - Hydroelectric Production Transmission Distribution General Intangible Total 2014 ($ in millions) Original cost: Beginning balance 761.2 $ 201.9 $ 2,086.4 $ 305.2 $ 440.6 $ 3,795.3 $ Capital acquisitions 28.6 6.0 118.9 18.1 27.4 199.0 Dispositions (26.2) (0.1) (11.1) (9.4) (11.5) (58.3) Transfers and adjustments - - - - - - Total original cost 763.6 207.8 2,194.2 313.9 456.5 3,936.0 Accumulated depreciation and amortization: Beginning balance 350.3 77.6 765.0 193.9 177.2 1,564.0 Increase in accumulated depreciation and amortization 15.1 4.5 65.1 15.1 13.8 113.6 Retirements (26.5) (0.6) (16.5) (9.6) (11.5) (64.7) 338.9 81.5 813.6 199.4 179.5 1,612.9 Ending balance 424.7 $ 126.3 $ 1,380.6 $ 114.5 $ 277.0 $ 2,323.1 $ Note: 2014 Accumulated Depreciation and Amortization section has been revised to reflect 2015 reclassification of Removal work-in-progress from Accumulated Depreciation to Construction work-in-progress. Total accumulated depreciation and amortization 3. RATE STABILIZATION ACCOUNT The Rate Stabilization Account (RSA) is a restricted cash reserve established to reduce the need for rapid and substantial rate increases solely to comply with the Department’s bond covenants. In March 2010 the Seattle City Council adopted Resolution No. 31187 and Ordinance No. 123260, establishing revised financial policies and parameters for the operation of the RSA created by Ordinance No. 121637 in 2004. Ordinance No. 123260 identified the sources of significant funding of the RSA and specified parameters for its operation. The RSA is drawn down to supplement revenues when surplus power sales revenues are below the budgeted amount, and conversely, deposits are to be made to the RSA when the surplus power sales revenues are greater than budgeted. Deposits or withdrawals may be made up to and including the date 90 days after the end of the applicable year. Ordinance No. 123260 established a target size for the RSA of no less than $100.0 million and no greater than $125.0 million, and authorized the imposition of automatic temporary surcharges on electric rates when the RSA balance is within the below specified levels: