Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 69 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 69 - The Department’s receivables from Lucky Peak were less than $0.1 million at December 31, 2016, and 2015, respectively. The Department’s payables to Lucky Peak were $0.1 million and $0.5 million at December 31, 2016, and 2015, respectively. British Columbia—High Ross Agreement—In 1984, an agreement was reached between the Province of British Columbia and the City under which British Columbia will provide the Department with energy equivalent to that which would have resulted from an addition to the height of Ross Dam. Delivery of this energy began in 1986 and is to be received for 80 years. In addition to the direct costs of energy under the agreement, the Department incurred costs of approximately $8.0 million in prior years related to the proposed addition and was obligated to help fund the Skagit Environmental Endowment Commission through four annual $1.0 million payments. These other costs are included in utility plant-in-service as an intangible asset, and are being amortized to purchase power expense over 35 years through 2035 (see Note 3 Utility Plant). Expenses incurred and energy received under these and other long-term purchased power agreements at December 31, 2016 and 2015 were as follows: ($ in millions) 2016 2015 2016 2015 Bonneville Block 80.0 $ 78.7 $ 264.7 269.8 Bonneville Slice 80.7 77.8 320.3 297.8 Long-term purchase power—Bonneville 160.7 156.5 585.0 567.6 Lucky Peak 6.9 6.3 38.8 31.7 British Columbia - High Ross Agreement 13.4 13.4 35.1 35.4 Grant County Public Utility District 2.3 3.2 2.9 2.7 Columbia Basin Hydropower 6.2 6.6 28.9 29.5 Bonneville South Fork Tolt billing credit (3.3) (3.3) - - Renewable energy - State Line Wind 24.8 20.8 42.5 34.2 Renewable energy - other 8.7 8.7 15.4 15.5 Exchanges and loss returns energy at fair value 5.5 6.1 56.0 71.2 Long-term purchased power booked out (5.4) (4.7) (32.7) (24.0) Long-term purchased power—other 59.1 57.1 186.9 196.2 Total 219.8 $ 213.6 $ 771.9 763.8 Expense Average Megawatts Renewable Energy Purchase and/or Exchanges—The Energy Independence Act, Chapter 19.285 Revised Code of Washington, requires all qualifying utilities in Washington State to meet certain annual targets of eligible new renewable resources and/or equivalent renewable energy credits as a percentage of total energy delivered to retail customers. The annual targets are: at least 3% by 2012, at least 9% by 2016, and at least 15% by 2020. The Department’s 2016 and 2015 resource portfolio is adequate to meet the 9% target and 3% target, respectively. Energy Exchange—Northern California Power Agency (NCPA) and the Department executed a long- term Capacity and Energy Exchange Agreement in March 1993. The Department delivers energy to NCPA from June through October 15. NCPA returns energy under conditions specified in the contract at a 1.2:1 ratio of exchange power, from November through April. The agreement includes financial settlement and termination options. In a letter NCPA dated May 17, 2011, NCPA gave seven year’s advance written notice to the Department terminating the agreement effective no later than May 31, 2018.