Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 11 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 and 2015 - 11 - Deferred Inflows of Resources 2016 Compared to 2015 Deferred inflows of resources increased by $4.3 million for a total of $94.2 million at the end of 2016. The significant activity occurring since 2010 has been principally the result of implementing, funding, and related activity of the RSA. Funding of the RSA from operating cash has the corresponding effect of deferring operating revenues in the rate stabilization unearned revenue account and vice versa. During 2016, a 1.5% surcharge on electric rates was in effect since August that contributed $4.4 million, with an offset of $5.5 million transferred to operating revenues for actual net wholesale revenues being lower than budget. $1.2 million in interest income was also earned, adding to the unearned revenue account, and leaving an ending balance of $66.1 million in the rate stabilization unearned revenue account. See Note 4 Rate Stabilization Account of the accompanying financial statements. Other deferred inflows of resources increased by $4.2 million to $28.1 million. The increase was mostly due to payments received from Bonneville in accordance with the Department’s Energy Conservation Agreement, net of earned revenue, offset by recognition of BPA Slice true up credit deferred at the end of 2015. 2015 Compared to 2014 Deferred inflows of resources decreased by $21.6 million for a total of $89.9 million at the end of 2015. The significant activity occurring since 2010 has been principally the result of implementing, funding, and related activity of the RSA. Funding of the RSA from operating cash has the corresponding effect of deferring operating revenues in the rate stabilization unearned revenue account and vice versa. During 2015, $23.4 million net was transferred to operating revenues as a result of lower actual net wholesale revenues than budget. The ending balance of the rate stabilization unearned revenue account was $66.0 million. Other deferred inflows of resources increased by $1.8 million to $23.9 million. The increase was mostly due to payments received from Bonneville in accordance with the Department’s Energy Conservation Agreement, net of earned revenue.