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 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 - 58 - ($ in millions) 2015 2014 Other liabilities: Unearned capital fees 24.6 $ 20.7 $ Customer deposits—sundry sales 4.5 5.4 Unearned operations and maintenance revenues 0.2 0.2 Unearned revenues—other 0.4 0.4 Total 29.7 $ 26.7 $ 15. DEFERRED INFLOWS OF RESOURCES Seattle City Council passed resolutions authorizing the reporting of certain credits as regulatory liabilities in accordance with GASB Statement No. 62 of the GASB, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB & AICPA Pronouncements. The unearned revenue for the Rate Stabilization Account for 2015 and 2014 is the result of spreading retail electric revenues and related activity over multiple periods to reduce the need for rapid and substantial rate increases (see Note 3 Rate Stabilization Account). Payments received from Bonneville’s Energy Conservation Agreement are amortized to revenues over 20 years. Bonneville Slice contract true-up credits are reported as regulatory liabilities in the year invoiced and recognized as revenue in the following year. Seattle City Council affirmed the Department's practice of recognizing the effects of reporting the fair value of exchange contracts in future periods for rate making purposes and maintaining regulatory accounts to spread the accounting impact of these accounting adjustments, in Resolution No. 30942 adopted January 16, 2007 (see Note 17 Long-Term Purchased Power, Exchanges, and Transmission). Deferred inflows of resources at December 31, 2015 and 2014 consisted of the following: ($ in millions) 2015 2014 Deferred inflows of resources: Unearned revenue—rate stabilization account 66.0 $ 89.4 $ Bonneville energy conservation agreement 17.7 16.4 Bonneville Slice true-up credit 5.6 5.6 Exchange energy: regulatory gain 0.6 0.1 Total 89.9 $ 111.5 $ 16. SHORT-TERM ENERGY CONTRACTS AND DERIVATIVE INSTRUMENTS The Department engages in an ongoing process of resource optimization, which involves the economic selection from available energy resources to serve the Department’s load obligations and using these resources to capture available economic value. The Department makes frequent projections of electric loads at various points in time based on, among other things, estimates of factors such as customer usage and weather, as well as historical data and contract terms. The Department also makes recurring projections of resource availability at these points in time based on variables such as estimates of stream flows, availability of generating units, historic and forward market information, contract terms, and 58