Form revised February 6, 2008

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Seattle City Light	Eric Campbell 4-3659	Karl Stickel/4-8085

Legislation Title:

A RESOLUTION endorsing the City Light Department’s Wholesale Energy Risk Management Policy and establishing it as the policy governing wholesale energy risk management at the City Light Department.

· Summary of the Legislation:

The legislation adopts a Wholesale Energy Risk Management policy document for Seattle City Light usage.

· Background: (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

In order to provide electricity to its customers economically, Seattle City Light routinely buys and sells wholesale energy products.  This transaction in wholesale energy markets necessarily exposes Seattle City Light funds to risk, including market and credit risk.

A wholesale energy risk management policy document is indicated by Industry Best Practice and requested by Council in Resolution 30632.

A proposed policy was sent to Council in March 2007 but not voted on and subsequently held because the Council deemed it sufficiently unresponsive to its prior direction in Resolution 30632.  Since that time substantial improvements have been made to the policy and Seattle City Light’s energy risk management program.  

· Please check one of the following:

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

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