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 71 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT OTHER INFORMATION (UNAUDITED) - 71 - DEBT SERVICE COVERAGE Following is a table that provides information for the Department’s debt service coverage for years 2015, 2014, and 2013. The target level for debt service coverage was 1.8x on all bonds for 2015, 2014, and 2013 in accordance with current financial policies (which include a Rate Stabilization Account that will result in greater compliance of actual debt service coverage with the policy-specified level). ($ in millions) Debt Service Coverage 2015 2014 2013 OPERATING REVENUES: Retail power revenues 736.6 $ 720.8 $ 697.7 $ Short-term wholesale power revenues 61.2 96.8 63.0 Other power-related revenues (a)(b)(c) 36.8 50.8 40.4 Transfers from/(to) rate stabilization account (d) 23.4 (4.4) 18.3 Other operating revenues 24.9 22.4 22.8 Total operating revenues 882.9 $ 886.4 $ 842.2 $ OPERATING EXPENSES: Long-term purchased power—Bonneville and other 213.6 $ 214.3 $ 203.1 $ Short-term wholesale power purchases 26.8 14.9 19.8 Other power expenses 59.6 65.9 66.4 Transmission (e) 54.3 52.8 48.2 Distribution 65.1 59.7 59.5 Customer service 38.3 37.6 39.2 Conservation 29.1 27.3 21.5 Administrative and general 92.1 75.8 71.7 Taxes 81.1 80.0 79.3 Depreciation and amortization 112.0 105.8 102.3 Total operating expenses 772.0 $ 734.1 $ 711.0 $ NET OPERATING REVENUE (f) 110.9 $ 152.3 $ 131.2 $ Adjustments to Net Operating Revenue (g) City Taxes (h) 45.5 $ 44.6 $ 42.8 $ Depreciation and amortization 112.0 105.8 102.3 Depreciation & amortization included in operating & maintenance expenses (i) 27.1 24.8 22.3 Pension expense (j) 27.9 - - Pension contributions (j) (24.9) - - Valuation on exchange power, net (b)(c) 0.6 0.3 (0.2) BPA Conservation Augmentation/Agreement revenue (k) (0.9) (0.7) (0.5) Investment income (l) 6.7 5.4 4.7 Non-cash expenses (m) (0.3) 1.9 10.8 Other (n) 2.0 7.0 6.2 Total adjustments 195.7 $ 189.1 $ 188.4 $ Net Revenue Available for Debt Service 306.6 $ 341.4 $ 319.6 $ Total Debt Service (o) 189.6 $ 184.8 $ 172.8 $ Ratio of Available Net Revenue to Debt Service 1.62x 1.85x 1.85x December 31