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 5 - 5 - 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 ASSETS Utility Plant—Net 2015 Compared to 2014 Utility plant assets net of accumulated depreciation and amortization increased $233.2 million to $2,961.5 million in 2015. Utility plant assets were comprised of hydroelectric production plant $821.1 million which increased $57.5 million, transmission plant $230.9 million which increased $23.1 million, distribution plant $2,295.6 million which increased $101.4 million, general plant $338.5 million which increased $24.6 million, and intangible assets $482.1 million which increased $25.6 million. The net increase in utility plant assets were partially offset by a $58.9 million increase in Accumulated depreciation and amortization to $1,671.8 million. The $101.4 million increase in distribution plant is primarily due to $45.0 million for underground system, $17.9 million for transformers, $15.9 million for stations, $11.4 million for poles, $5.5 million for overhead system, and $5.4 million for streetlights. In hydroelectric production, an increase of $40.4 million was due to continued improvements for generation units at the Boundary project. Other components of utility plant include Construction work-in-progress $319.8 million which increased $67.4 million, Nonoperating property $11.8 million which increased $1.3 million, Assets held for future use $60.8 million which decreased $11.0 million, and Land and land rights $72.7 million, which increased $2.2 million. The $67.5 million increase in Construction work-in-progress is primarily due to increases in the following projects: $16.5 million for the new customer billing system, $16.0 million for Seattle Seawall, $15.7 million for Denny Substation, and $8.1 million for replacement of the energy management system. The decrease in Assets held for future use is primarily due to distribution assets being placed in service. See Note 2 Utility Plant of the accompanying financial statements. 2014 Compared to 2013 Utility plant assets net of accumulated depreciation and amortization increased $187.2 million to $2,728.3 million in 2014. Utility plant assets were comprised of hydroelectric production plant $763.6 million which increased $2.4 million, transmission plant $207.8 million which increased $5.9 million, distribution plant $2,194.2 million which increased $107.8 million, general plant $313.9 million which increased $8.7 million, and intangible assets $456.5 million which increased $15.9 million. The net increase in utility plant assets were partially offset by a $49.0 million increase in Accumulated depreciation and amortization to $1,612.9 million. The $107.8 million increase in distribution plant is primarily due to $58.4 million for underground system, $14.2 million for overhead system, $13.3 million for transformers, $8.5 million for poles, $8.0 million for streetlights and $3.4 million for meters. In hydroelectric production, an increase of $22.8 million was due to continued improvements for generation units at the Boundary project which are expected to be completed in 2015. The additions to hydroelectric production were offset by retirements, primarily related to generation unit improvements. Other components of utility plant include Construction work-in-progress $252.4 million which increased $88.3 million, Nonoperating property $10.5 million which increased $1.8 million, Assets held for future use $71.8 million which increased $3.1 million, and Land and land rights $70.5 million, which increased $2.3