AN ORDINANCE relating to the City Light Department, amending SMC 21.49.086.G relating to the operation of the Rate Stabilization Account.

WHEREAS, the City established the Rate Stabilization Account within the Light Fund to buffer the City Light Department (City Light) and its customers from deviations of its Net Wholesale Revenues from those assumed in budgets; and

WHEREAS, the Council transferred operating fund balance at the end of 2012 into the Account to ensure that the Account is funded at a level that reduces the likelihood of rate surcharges in 2013, as provided for in SMC 21.49.086, should wholesale revenue be less than that assumed in the 2013 Budget; and

WHEREAS, The Account balance currently exceeds the threshold established in SMC 21.49.086.G, requiring the Council to take action to reduce the Account balance;

WHEREAS, The Council does not, at this point, wish to lower the Account balance; NOW, THEREFORE

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 2. SMC 21.49.086, which section was last amended by Ordinance 123757, is amended as follows:

21.49.086 Rate Stabilization Account

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G. Disposition of excess funds in the Rate Stabilization Account:

Effective January 1, 201(( 3 )) 4 ; whenever the amount in the Rate Stabilization Account exceeds $125 million, the City Council will initiate a rate review, if the Mayor has not already done so, within forty-five days that will decrease rates, allow City Light to cover more of its capital expenditures with cash from operations or defease outstanding debt in order to keep future rates low, increase its expenditures, or a combination of these measures, to bring the amount in the Account down to $125 million within a period of 12 or fewer months.

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Section 3. The provisions of this ordinance shall be retroactive to January 1, 2013.

Section 4. Any action consistent with this ordinance taken after its passage but prior to its effective date is hereby ratified and confirmed.

Section 5. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of ________________________, 2013, and signed by me in open session in authentication of its passage this

_____ day of ___________________, 2013.

_________________________________

President __________of the City Council

Approved by me this ____ day of _____________________, 2013.

_________________________________

Michael McGinn, Mayor

Filed by me this ____ day of __________________________, 2013.

____________________________________

Monica Martinez Simmons, City Clerk

(Seal)

Tony Kilduff LEG Changing RSA Trigger ORD January 11, 2013 Version #1

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