A new day is dawning for Seattle City Light. In our 2015 Annual Report, we focused on how City Light was becoming the utility of the future. That future is here. City Light made long strides in 2016 toward building new facilities, programs and technological systems that will keep us on the leading edge of electric utilities nationally. As Seattle continued to boom in 2016, City Light made great progress on the Denny Substation Project, the first new substation we’ve built in 30 years. Our crews and contractors began construction of the substation itself, and by the end of the year the substation’s unique outer wall took shape. Construction and installation also began on another crucial aspect of the project, the network itself. The Denny Substation is set to provide the power to match increased electrical demand around Seattle’s flourishing downtown core. To make City Light’s network more reliable and efficient, we moved toward modern standards in electrical metering with our Advanced Metering program. We selected the technology provider and began upgrading utility poles and installing the communications equipment to support the nascent network. The advanced meters will provide data and real-time information that were undreamt of in ages of less connectivity. City Light began installing advanced meters for all new construction in October of 2016. As City Light prepared for Seattle’s entry to a smart power grid, we also took steps to study how microgrids — power grids that can operate independently from the main distribution network — will increase the resiliency of our community. City Light was awarded a Washington FROM THE GENERAL MANAGER AND CEO LARRY WEIS State Clean Energy Fund grant to build a microgrid that will include a battery system, solar panels and emergency generators located at a to-be-designated community center. During a crisis, this stand-alone power grid will keep emergency services and communication networks operating. We are partnering with Seattle Parks and Recreation to site the project where it will support the community in times of urgent need. Mayor Edward Murray announced Seattle’s Drive Clean Initiative in 2016, a City-wide effort to increase the adoption of electric transportation. In response, the Seattle City Council also formalized a target of 30 percent electric vehicles in Seattle by 2030. To demonstrate our commitment to this initiative, City Light will assist in the installation of public fast-charging stations throughout Seattle and other cities in our service area. This program is specifically designed to address development gaps in the private electric vehicle charging market. Another of City Light’s long-planned technological upgrades, the New Customer Information System, went live in 2016 to replace a 15-year-old suite of software applications for both Seattle City Light and Seattle Public Utilities. All the modernization efforts and improvements City Light undertook in 2016 were motivated by our mission to deliver affordable, reliable and environmentally responsible electricity services. Our dedicated and talented employees are working to meet the needs of customers today while preparing for the needs of tomorrow. As a new day dawns for Seattle City Light, we are keeping our eyes on the horizon. Sincerely, Larry Weis