Resolution _________________
A RESOLUTION relating to the City Light Department; adopting a 2015-2020 Strategic Plan for the City Light Department and endorsing a six-year rate path required to support the Strategic Plan.
WHEREAS, the City Light Department ("City Light") is the 10 th largest public utility in the nation, serving more than 400,000 customer accounts, and providing safe, affordable and reliable electricity to its customers; and
WHEREAS, Resolution 31383 of July 2012 adopted City Light's 2013-2018 Strategic Plan and endorsed a six-year rate path that supported that plan; and
WHEREAS, Resolution 31383 also specified that City Light would review and update the Strategic Plan every two years, adding two years and re-evaluating the remaining four years of the existing Strategic Plan; and
WHEREAS, City Light has reviewed and updated the Strategic Plan by: (a) reviewing changes in its operating environment for the 2015-2018 period and making adjustments to remain within the previously approved rate path; and (b) adding a forecast of
revenues, expenditures and investments for two additional years, 2019 and 2020; and
WHEREAS, City Light continues to face challenges which include: (a) providing ever higher levels of customer service; (b) encouraging even more conservation while also covering its fixed costs; (c) satisfying power requirements with increasingly
expensive resources; (d) maintaining aging infrastructure while improving its technology; (e) training and developing its workforce to adapt to evolving industry requirements; and (f) finding and achieving new operational efficiencies; and
WHEREAS, City Light seeks to provide rate predictability and stability in future rates, and to avoid the pattern of volatile rate adjustments that characterized the decade before the adoption of the 2013-2018 Strategic Plan; and
WHEREAS, in consultation with the Mayor and the City Council, City Light initiated the Strategic Planning process in 2010 to provide more transparency and accountability for decision-making within City Light; and
WHEREAS, Ordinance 123256 establishes the City Light Review Panel (Review Panel) to represent City Light ratepayers and requires the Review Panel to review and assess City Light's strategic plans; and
WHEREAS, the Review Panel has reviewed City Light's progress in carrying out the first year of the Strategic Plan on a quarterly basis in 2013, and also reviewed the Utility's proposed changes for the 2015-2020 Strategic Plan Update; and
WHEREAS, Ordinance 123256 also charges the Review Panel with assessing City Light's rate design and its implementation of marginal cost allocation, by its second year of operation; and
WHEREAS, the Strategic Plan update, including the rate design assessment, included extensive customer engagement, with customer and stakeholder group meetings, neighborhood council meetings, limited-English-speaking customer outreach, online surveys,
advertising, and social media outreach; and
WHEREAS, the resulting Strategic Plan Update, which includes the rate design proposal, is a package of investments and improvements to achieve operational efficiencies, improve customer service and reliability, strengthen City Light's workforce,
increase rate predictability and financial stability, and continue City Light's commitment to conservation and environmental leadership; and
WHEREAS, the City Council has reviewed the Strategic Plan Update, the associated six-year rate path, the recommendation of the Review Panel, and the results of customer engagement; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE, THE MAYOR CONCURRING, THAT:
Section 1. The City Council adopts City Light's proposed 2015-2020 Strategic Plan Update (the "Strategic Plan"), a copy of which is attached as Attachment A and incorporated by reference.
Section 2. To achieve the goals of the Strategic Plan, an average system rate increase of 4.4% per year is anticipated over the period of 2015-2020. The following six-year rate path for City Light rates is endorsed:
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
Anticipated System Rate Adjustment |
4.2% |
4.9% |
5.0% |
3.9% |
3.6% |
4.9% |
Section 3. The City Council requests that the executive submit the 2015-2016 City Light Proposed Budget in support of the Strategic Plan.
Section 4. The City Council requests that the executive submit a 2015-2016 City Light Rate Proposal in support of the Strategic Plan, including the endorsed system rate increases of 4.2% in 2015 and 4.9% in 2016. The rates for 2015 and 2016 should
reflect City Light's existing rate design rather than the rate design discussed in the Strategic Plan starting on page 7. The Council intends to decide the issue of rate design by April 30, 2015.
Section 5. City Light will continue to review and update the Strategic Plan every two years, adding two years to the Strategic Plan and re-evaluating the subsequent six-year rate path. The next review and adjustment of the Strategic Plan will be
finalized in 2016 and will encompass the years 2017-2022.
Section 6. The City Council requests that City Light report on the cost, health, environmental concerns, and customer data security implications of AMI (smart meters) to the Energy Committee by September 30, 2014. The report should document the costs
of AMI implementation, the background information and utility studies that have led City Light to conclude there will be no significant adverse effects from AMI deployment, and plans for customer education. The City Council will establish a public
forum prior to September 30, 2014, for the purpose of allowing the public to share community or health concerns regarding the development of AMI. Council intends to consider this information and that brought forward by the public during deliberations
for the 2015-2016 Budget.
Adopted by the City Council the ____ day of ____________________, 2014, and signed by me in open session in authentication of its adoption this________ day
of ______________________, 2014.
_________________________________
President ___________of the City Council
THE MAYOR CONCURRING:
_________________________________
Edward B. Murray, Mayor
Filed by me this ____ day of ________________________, 2014.
____________________________________
Monica Martinez Simmons, City Clerk
(Seal)
Attachments:
Attachments:
Attachment A: Seattle City Light 2015-2020 Strategic Plan Update
Attachment B: Appendix 1 -Financial Update
Attachment C: Appendix 2 -Outreach Summary
Attachment D: Appendix 3 -Strategic Plan Initiative Update Summaries
Attachment E: Appendix 4 -Review Panel Recommendations Letter
Paula J. Laschober/Tony Kilduff SCL 2015-2020 Strategic Plan RES June 30, 2014 Version 4