Independent Auditors’ Report.............................................................................................................1-2 Management’s Discussion and Analysis (Unaudited).......................................................................3-18 - Required Supplementary Information FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015: Balance Sheets....................................................................................................................................20-21 Statements of Revenues, Expenses and Changes in Net Position...................................................23 Statements of Cash Flows...................................................................................................................24-25 Notes to Financial Statements............................................................................................................26-75 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) Defined Benefits Pension Plan 76 Schedules of Funding Progress 77 OTHER INFORMATION (UNAUDITED) Debt Service Coverage........................................................................................................................78-79 Interest Requirements and Principal Redemption on Long-term Debt............................................80 Statement of Long-term Debt..............................................................................................................81 Power Costs and Statistics..................................................................................................................82 Historical Energy Resources................................................................................................................83 Customer Statistics..............................................................................................................................84 TABLE OF CONTENTS AUDITED FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION (Unaudited) Highlights..............................................................................................................................................85 Financial Summary..............................................................................................................................86 Long-Term Debt....................................................................................................................................87 Customer Statistics..............................................................................................................................88 Power.....................................................................................................................................................89 Changes in Owned Total Generating Installed Capability..................................................................90 System Requirements..........................................................................................................................90 Taxes and Contributions by Seattle City Light to the Cost of Government.......................................91 Public Purpose Expenditures..............................................................................................................92 Annual Energy Savings Through Conservation..................................................................................92 Seattle City Light 2016 ANNUAL REPORT | Table of Contents