Form revised December 9, 2004

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle City Light	Mike Little, 684-3233	Thomas Dunlap, 386-9120

Legislation Title:

AN ORDINANCE relating to the City Light Department; establishing a voluntary Green-Up Program and amending Section 21.49 of the Seattle Municipal Code.

· Summary of the Legislation: The proposed legislation creates a new voluntary Green-Up Program that complements the existing voluntary Green Power Program that was initiated in 2002. This new program offering will be available to all City Light customers. However, it is especially designed to meet the growing demands of medium-to-large commercial and institutional customers that desire to “green-up” a percentage of their electricity usage. Voluntary customer payments will come through utility bills and one-time payments. These payments will be used by City Light to purchase renewable energy products available from Northwest wind, biomass, and landfill gas projects. Green-Up Program revenues shall also be used to fund the marketing and administrative costs and expenditures for the program.

· Background: The existing voluntary Green Power Program was authorized by Council Bill 113944 (2001) and amended by Council Bill 114765 (2003). The Program was designed to fund the development of primarily smaller-scale, local renewable energy projects, such as solar, not included in City Light’s power portfolio. Its goals included creating awareness, improving operating experience, and stimulating market demand through technology demonstrations and education. The current program was not designed to allow customers to purchase green power as a percentage of their electricity use.

The proposed Green-Up Program will allow customers to “green-up” a percentage of their electricity use. Much of the recent growth in green power purchases throughout the United States has been due to large business and governmental commitments that require a percentage-based purchase. For example, the General Services Administration, Unico Properties, and a number of Leadership in Energy and Environmental Design (LEED) projects have expressed an interest in purchasing a green product from the Department. Seattle City Light’s Green-Up Program would help customers meet this growing corporate commitment.

· Please check one of the following:

____ This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

__X__ This legislation has financial implications. (Please complete all relevant sections that follow.)

Appropriations:

Fund Name and Number	Department	Budget Control Level*	2005 Appropriation	2006 Anticipated Appropriation
TOTAL

*See budget book to obtain the appropriate Budget Control Level for your department.

Notes: The Department anticipated launching the Green-Up Program when it submitted the 2005/2006 budgets. Within the adopted budget, the Department has sufficient budget authority to operate the program. This legislation is not requesting new budget authority.

Anticipated Revenue/Reimbursement: Resulting From This Legislation:

Fund Name and Number	Department	Revenue Source	2005 Revenue	2006 Revenue
41000	City Light	Voluntary Customer payments	$125,000	$225,000
TOTAL			$125,000	$225,000

Notes: Revenue is estimated based upon customer interest and experience of other electric utilities offering a similar program. The net proceeds from the revenue will be used to fund Green-Up Program marketing and administrative activities.

Total Regular Positions Created Or Abrogated Through This Legislation, Including FTE Impact:

Position Title and Department*		Fund Name	Fund Number	Part-Time/ Full Time	2005 Positions	2005 FTE	2006 Positions**	2006 FTE**
	TOTAL

Notes:

· Do positions sunset in the future? (If yes, identify sunset date):

Spending/Cash Flow:

Fund Name and Number	Department	Budget Control Level*	2005 Expenditures	2006 Anticipated Expenditures
41000	City Light	SCL100	$50,000	$100,000
41000	City Light	SCL700	$75,000	$125,000
TOTAL			$125,000	$225,000

* See budget book to obtain the appropriate Budget Control Level for your department.

Notes: Anticipate that revenue generated from the program will offset expenditures.

· What is the financial cost of not implementing the legislation? There is minimal direct financial cost of implementing the legislation. However, at the moment, the Department is offering this type of service to select customers with a customized purchase agreement that is cumbersome and labor intensive for the Department and the customer. Providing customers with a payment option on their utility bill is a simple mechanism to meet their needs and to reduce the overhead associated with customized purchase agreements.

· What are the possible alternatives to the legislation that could achieve the same or similar objectives? The Department could continue to offer a "green-up" option via a customized purchase agreement.

· Is the legislation subject to public hearing requirements: No

· Other Issues (including long-term implications of the legislation):

Please list attachments to the fiscal note below:

Attachment: Issues Brief – Seattle Green-Up Program