Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 23 - 23 - THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 ($ in millions) 2016 2015 OPERATINGREVENUES: Retail power revenues 788.0 $ 736.6 $ Short-termwholesale power revenues 62.9 61.2 Other power-related revenues 32.6 36.8 Transfers from/(to) rate stabilization account (0.1) 23.4 Other operating revenues 19.8 24.9 Total operating revenues 903.2 882.9 OPERATINGEXPENSES: Long-termpurchased power—Bonneville and other 219.8 213.6 Short-termwholesale power purchases 15.1 26.8 Other power expenses 60.1 59.6 Transmission 53.5 54.3 Distribution 63.5 65.1 Customer service 42.6 38.3 Conservation 30.2 29.1 Administrative and general 105.0 92.1 Taxes 85.2 81.1 Depreciation and amortization 120.8 112.0 Total operating expenses 795.8 772.0 OPERATINGINCOME 107.4 110.9 NONOPERATINGREVENUES AND (EXPENSES): Other revenues and (expenses)—net 14.6 16.7 Interest expense Interest expense—net (85.8) (85.7) Amortization of bond costs—net 10.7 9.2 Total interest expense (75.1) (76.5) Total nonoperating expenses (60.5) (59.8) INCOME BEFORE CAPITAL CONTRIBUTIONS AND GRANTS 46.9 51.1 CAPITAL CONTRIBUTIONS AND GRANTS: Capital contributions 37.9 39.0 Capital grants 0.5 0.4 Total capital contributions and grants 38.4 39.4 CHANGE IN NET POSITION 85.3 90.5 NET POSITION: Beginning of year 1,132.2 1,275.5 Adjustment for the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions - (233.8) Beginning of year, as adjusted 1,132.2 1,041.7 End of year 1,217.5 $ 1,132.2 $ See notes to financial statements.