Form revised: December 6, 2011

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	CBO Analyst/Phone:
Seattle City Light	Barbara Greene/615.1091	Calvin Chow/684.4652

Legislation Title:

AN ORDINANCE relating to the City Light Department and authorizing the Superintendent of the City Light Department to accept on behalf of the City the new license from the Federal Energy Regulatory Commission to operate Seattle's Boundary Dam Hydroelectric Project (FERC Project No. 2144); and ratifying and confirming prior acts.

Summary of the Legislation:

This ordinance authorizes the Superintendent of the City Light Department to accept on behalf of

the City the new license from the Federal Energy Regulatory Commission (FERC) to operate Seattle's Boundary Dam Hydroelectric Project (FERC Project No. 2144).

Background: 

In 1961 the City acquired a fifty-year license from the FERC to operate the Boundary Dam

Hydroelectric Project. Since 2005 the City Light Department has been engaged in the FERC's

integrated licensing process, including an active negotiation process involving federal, state,

tribal, and other stakeholders. In 2010 by Ordinance 123229, the City authorized the

Superintendent of the City Light Department to file a comprehensive settlement agreement that

Outlined the fundamental terms and conditions relating to all disputed issues with the FERC. The

City Light Department submitted the comprehensive settlement agreement to the FERC March

29, 2010. The fifty-year license for the Boundary Dam Hydroelectric Project expired on

September 30, 2011, and the City is operating the Boundary Dam Hydroelectric Project under an

annual license issued by the FERC on October 4, 2011.

It is in the best interest of the City and its ratepayers that the City continue to own and operate

the Boundary Dam Hydroelectric Project in accordance with the terms and conditions of the

settlement agreement. The City anticipates that the FERC will issue a new multi-year license for

the Boundary Dam Hydroelectric Project before the end of 2012 with terms and conditions

consistent with the settlement agreement. The Superintendent of the City Light Department will

notify the City Council in the event that the new license is not consistent with the terms and

conditions of the settlement agreement.

Please check one of the following:

__X__ This legislation does not have any financial implications.

(Please skip to “Other Implications” section at the end of the document and answer questions a-h. Earlier sections that are left blank should be deleted. Please delete the instructions provided in parentheses at the end of each question.)

____    This legislation has financial implications.

(If the legislation has direct fiscal impacts (e.g., appropriations, revenue, positions), fill out the relevant sections below.  If the financial implications are indirect or longer-term, describe them in narrative in the “Other Implications” Section. Please delete the instructions provided in parentheses at the end of each title and question.)

Appropriations:

(This table should reflect appropriations that are a direct result of this legislation.  In the event that the project/programs associated with this ordinance had, or will have, appropriations in other legislation please provide details in the Appropriation Notes section below. If the appropriation is not supported by revenue/reimbursements, please confirm that there is available fund balance to cover this appropriation in the note section.)

Fund Name and Number	Department	Budget Control Level*	2012 Appropriation	2013 Anticipated Appropriation
TOTAL

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

Appropriations Notes: 

Anticipated Revenue/Reimbursement Resulting from this Legislation:

(This table should reflect revenues/reimbursements that are a direct result of this legislation.  In the event that the issues/projects associated with this ordinance/resolution have revenues or reimbursements that were, or will be, received because of previous or future legislation or budget actions, please provide details in the Notes section below the table.)

Fund Name and Number	Department	Revenue Source	2012 Revenue	2013 Revenue
TOTAL

Revenue/Reimbursement Notes:

Total Regular Positions Created, Modified, or Abrogated through this Legislation, Including FTE Impact:

(This table should only reflect the actual number of positions affected by this legislation.   In the event that positions have been, or will be, created as a result of other legislation, please provide details in the Notes section below the table.)

Position Title and Department	Position # for Existing Positions	Fund Name & #	PT/FT	2012 Positions	2012 FTE	2013 Positions*	2013 FTE*
TOTAL

* 2013 positions and FTE are total 2013 position changes resulting from this legislation, not incremental changes.  Therefore, under 2013, please be sure to include any continuing positions from 2012.

Position Notes:

Do positions sunset in the future? 

(If yes, identify sunset date)

Spending/Cash Flow:

(This table should be completed only in those cases where part or all of the funds authorized by this legislation will be spent in a different year than when they were appropriated (e.g., as in the case of certain grants and capital projects).  Details surrounding spending that will occur in future years should be provided in the Notes section below the table.)

Fund Name & #	Department	Budget Control Level*	2012 Expenditures	2013 Anticipated Expenditures
TOTAL

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

Spending/Cash Flow Notes:

Other Implications:

a) Does the legislation have indirect financial implications, or long-term implications?

Yes, this legislation has indirect financial implications and long-term implications. Financial implications are reflected in the SCL Relicensing and Implementation Division Budget for 2011 – 2012, and proposed budget for 2013 - 2014. 

The long-term implications are positive in that the new Boundary License will provide more economic security for the City’s ratepayers while preserving the City’s commitment to environmental stewardship. The Boundary Hydroelectric Project is Seattle City Light’s largest and most economical generation resource, meeting approximately 40% of Seattle’s annual needs for electricity, and is a reliable and renewable resource.  The new license will allow us continued unrestricted operations for up to 50 years, providing certainty for financial planning purposes. This certainty has been balanced with significant environmental improvements to Boundary facilities, the enhancement of native fish, protection of endangered plant and wildlife species, preservation of historic and cultural resources, new and improved recreational access and facilities, and protection of water quality in the Boundary Project area, which includes approximately 939 acres of land in northeast Washington.

b) What is the financial cost of not implementing the legislation?

The Federal Power Act required the City of Seattle to obtain a new license to operate Boundary Dam and the City will be bound by the terms of the new license, including funding the costs of implementing the protection, mitigation, and enhancement measures. It is in the best interest of the City to accept the new license in order to show its commitment to the new measures, to preserve SCL’s power portfolio, and to achieve more certainty in financial forecasting.  Failure to comply with the new FERC license will result in financial penalties and ultimately the requirement to stop operating Boundary Dam.

c) Does this legislation affect any departments besides the originating department? 

No.

d) What are the possible alternatives to the legislation that could achieve the same or similar objectives?

There are no possible alternatives to the legislation that would achieve the same or similar objectives.

e) Is a public hearing required for this legislation? 

No.

f) Is publication of notice with The Daily Journal of Commerce and/or The Seattle Times required for this legislation?

No.

g) Does this legislation affect a piece of property?

No.

h) Other Issues:

List attachments to the fiscal note below: None.