AN ORDINANCE relating to the rates, terms and conditions for the use and sale of electricity supplied by the City Light Department; and amending Seattle Municipal Code Chapter 21.49 in connection therewith.

WHEREAS, Resolution 30428 (adopted December 10, 2001) established new financial policies for City Light, including the policy that net revenue available to fund capital requirements in each calendar year should be positive with a probability of at least 95%, taking into account the variability of cash flows resulting from the uncertainty of water conditions, market prices and system load; and

WHEREAS, Resolution 30685 (adopted June 21, 2004) established long term rate-setting objectives and electric rate policies for the City of Seattle; and

WHEREAS, Resolution 30761 (adopted May 2, 2005) affirmed the net revenue policy described above, and established a 2.0 debt service coverage target for firstand second-lien light and power system debt; and

WHEREAS, public meetings have been held during which rate payers and concerned citizens were given the opportunity to comment on proposed changes to the electric rates; and

WHEREAS, the City Council has reviewed the rates set out herein, and has determined that they are consistent with the policies established by Resolutions 30428, 30685 and 30761 and that the cost of service, regulations, control of use and the manner and quality of distribution are consistent with providing the users of electric service supplied by the City of Seattle efficient electric service at low cost; NOW THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Section 21.49.020 of the Seattle Municipal Code is amended to read as follows:

21.49.020 Definitions.

A. The following terms or abbreviations, as used in this chapter, have the following meanings:

1. "Applicant" means any person, firm, corporation, government agency, or other entity requesting electrical service from the Department.

2. "BPA" means the Bonneville Power Administration or successor agency.

3. "City" means The City of Seattle.

4. "City customer" means a customer receiving service at a location in the City of Seattle or in Whatcom County at a site related to the Department's Skagit facilities. Through April 30, 2003, "city customer" also means a customer receiving service at a location in the City of Tukwila.

5. "Customer" means any person, firm, corporation, government agency, or other entity that uses, has used , contracts, or has contracted for electric service from the Department.

6. "Department" means the Seattle City Light Department of the City, its Superintendent, or any duly authorized employee of the Department.

7. "Duplex" means a detached building containing two (2) dwelling units.

8. "Dwelling unit" means a single unit providing complete independent living facilities for one (1) or more persons, including provisions for living, sleeping, eating, cooking, and sanitation. "Dwelling unit" excludes dwellings where tenancy is typically of a transient nature, such as hotels, motels, lodges, transitional housing and student dormitories. "Dwelling unit" also excludes living arrangements, such as residences for religious orders, the elderly or the disabled, in which the residents do not live independently.

9. "Flat rate" means a fixed charge for a streetlight, floodlight, pedestrian light or a fixed amount of energy consumption.

10. "House service" or "house meter" means service for rooms or areas used in common by the occupants of a multiple unit building.

11. "KV" means kilovolt.

12. "KVA" means kilovolt-ampere.

13. "KVarh" means reactive kilovolt-ampere hours.

14. "KW" means kilowatt.

15. "KWh" means kilowatt-hour.

16. "Master meter" means service which supplies electrical energy to more than one (1) dwelling unit or boat moorage and is measured through a single inclusive metering system.

17. "Medical life support equipment" is any piece of equipment which is prescribed by a licensed medical physician, generally accepted in the medical industry as life support equipment, and dependent on electrical service for its operation, such as kidney dialysis units, iron lungs, etc.

18. "MW" means megawatt.

19. "Multiple dwelling building" means any building or any portion of the building which contains three (3) or more dwelling units used, rented, leased, let, or hired out to be occupied, or which are occupied and have provisions for living, sleeping, eating, cooking, and sanitation.

20. "Net metering program" means a Department program under which eligible customers that operate net metering systems may generate electricity for their own use, sell the excess to the Department and purchase any deficit from the Department.

21. "Net metering system" means a fuel cell or a facility for the production of electrical energy that uses as its fuel either solar, wind, or hydropower; has a generating capacity of not more than twenty-five kilowatts; is located on the customer's premises; operates in parallel with the electric utility's transmission and distribution facilities; and is intended to offset part or all of that customer's requirements for electricity.

22. "New Large Load" means any service fed from an expanded or a new installation equal to or greater than 12.5 MVA of energized capacity installed within any consecutive five (5) -year period after August 31, 2000. Installed capacity may be a measure of either dedicated feeder or transformer capacity, with the following qualifications:

a. The measure of energized installed transformer capacity excludes any redundant transformer capacity required in a network area.

b. Also excluded from the measure of energized installed transformer capacity is any redundant capacity paid for by the customer, that is installed for the purpose of obtaining enhanced reliability.

c. When the energized installed capacity is a measure of dedicated feeder capacity, the installation shall not be considered a new large load until such time as the consumption is confirmed to be equal to or greater than ten (10) annual average MW. The installation shall then be back-billed on Schedule VRC for city

customers or VRT for Tukwila customers, on a true-up basis, from the beginning of the twelve-month period when the rolling average consumption equals or exceeds ten (10) annual average MW. Customers anticipating becoming a new large load have the option of earlier proposing a tailored delivery package pursuant to Section 21.49.059 (C).

d. Where a present customer relocates their existing service within the Department's service area, the customer's previous load shall be considered to be transferred, establishing the baseline from which increases will be measured.

23 22. "Peak period" means Monday through Saturday, six (6:00) a.m. to ten (10:00) p.m.

24 23. "Power factor" is the ratio kW to kVA.

25 24. "Premises" means all of the real property at a single geographic location utilized by a customer.

26 25. "RCW" means Revised Code of Washington.

26. "Reserved distribution capacity" means capacity reserved by the Department on a distribution circuit to which a customer can transfer its load when that customer's normal, preferred or main service circuit is unavailable.

27. "Residence" means a single-family dwelling.

28. "Suburban customer" means any customer that is not a city customer or a Tukwila customer.

29. "Transitional housing" means a unit or facility that serves as temporary living quarters for individuals or families and is subsidized in whole or in part (e.g., rent and/or utilities) by a non-profit corporation or a government entity, which is responsible for the unit or facility as owner or master leaseholder, or through a written agreement with a landlord.

29 30. "Tukwila customer" means a customer receiving service at a location in the City of Tukwila after April 30, 2003.

30 31. "Underground distribution network" means an electrical distribution configuration in which two (2) or more City-owned secondary cables are bussed together so that the loss of any one (1) associated distribution feeder cable will not interrupt service to the customer.

31 32. "Var" means volt-ampere-reactive, the unit of measure of reactive power in a circuit.

B. The following terms, as used for the purpose of applying rate schedules, have the following meanings:

1. "General service" means service to any customer who does not qualify for residential service. General service rates also apply to the separately metered electricity use by residential customers where that use is not for domestic purposes; or, to a single-metered service which includes domestic uses but for which the major portion of the service (defined by square footage of usable space) is used on an ongoing and regular basis for the conduct of business. General service uses include, but are not limited to, manufacturing, processing, refining, freezing, lighting, water heating, power purposes, air conditioning and space heating, traffic control systems, and electricity provided to the common use areas of duplex or multiple-dwelling buildings.

a. "Standard general service" means service to any general service customer who does not qualify for network general service.

b. "Network general service" means service to any general service customer which is provided through an underground distribution network supplied by the Broad Street, Massachusetts Street, or Union Street Substations, except for service to customers who are certified by the Department as having predominantly residential use of electricity.

2. "Residential service" means permanent electric service furnished to a dwelling unit that is separately metered for domestic use. It includes any second service determined to be domestic use and billed on the same residential account. It excludes dwellings where tenancy is typically of a transient nature such as hotels, motels, and lodges. It also excludes services which use electricity for both domestic and commercial purposes if the major portion of the service (defined by square footage of usable space) is used on an ongoing and regular basis for the conduct of business.

Boarding, lodging, rooming houses or group homes shall be considered residential services if not more than four (4) separate sleeping quarters exist for use by other than members of the customer's family. A "boarding, lodging, or rooming house" means a building other than a hotel, motel or lodge which advertises as a boarding, lodging, or rooming house, or is a licensed place of business with rooms available for rent. A group home is an agency which operates and maintains a group care facility on a twenty-four (24) hour basis in a dwelling unit for the care of not more than ten (10) persons (including minor children of staff residing on the premises).

Section 2. Section 21.49.021 of the Seattle Municipal Code is deleted.

21.49.021 Rate schedules.

The City will implement a new automated system to bill customers at a point in time after January 1, 2000. In the new billing system, rate schedules will be designated by an alphabetic code consisting of either one (1) letter or three (3) letters. Prior to the implementation of the new billing system, rate schedules will continue to be designated by a numeric code consisting of one (1) or two (2) integers. The implementation of the new billing system and the change in the rate codes will not affect the rates charged for service. The following table identifies the numeric codes that will be used prior to the implementation of the new billing system and the corresponding alphabetic codes that will be use when the new billing system is implemented.

Rate Schedule Alphabetic Code Numeric Code

Residential: City RSC 20 Residential: Suburban RSS 50 Residential elderly/disabled: City REC 26 Residential elderly disabled: Suburban RES 51 Residential low-income: City RLC 27 Residential low-income: Suburban RLS 52

Small general service: City SMC 31 Small general service: Suburban SMS 56

Medium standard general service: City MDC 34, 35 Medium standard general service: MDS 57, 58 Suburban Medium network general service MDD 60, 61

Large standard general service: City LGC 38 Large standard general service: LGS 59 Suburban Large network general service LGD 62

High demand general service HDC 42 Variable rate general service VRC 44

Floodlights F 3, 7 Streetlights T 48

In the following sections, references to rate schedules will be made exclusively through use of the new alphabetic codes. However, the rates designated by the alphabetic codes will also apply to the period during which the numeric codes are still used.

Section 3. Section 21.49.030 of the Seattle Municipal Code is amended to read as follows:

21.49.030 Residential rates (Schedules RSC, RST and RSS).

A. Schedules RSC, RST and RSS are for all separately metered residential services, except those subject to Schedules REC, RET, RES, RLC, RLT and RLS.

Schedule RSC (Residential: City)

Schedule RSC is for residential City customers, except those subject to Schedules REC and RLC.

RATES EFFECTIVE JUNE 14, 2002: Energy Charges: Summer Billing Cycles (April -September) First 10 kWh per day at 4.25 cents per kWh

All over 10 kWh per day but less than or equal to 100 kWh per day at 8.58 cents per kWh All additional kWh per day at 10.00 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 4.25 cents per kWh All over 16 kWh per day but less than or equal to 167 kWh per day at 8.58 cents per kWh All additional kWh per day at 10.00 cents per kWh

Base Service Charge: 9.73 cents per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: Summer Billing Cycles (April -September) First 10 kWh per day at 4.33 cents per kWh All over 10 kWh per day but less than or equal to 100 kWh per day at 8.66 cents per kWh All additional kWh per day at 10.08 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 4.33 cents per kWh All over 16 kWh per day but less than or equal to 167 kWh per day at 8.66 cents per kWh All additional kWh per day at 10.08 cents per kWh

Base Service Charge: 9.73 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 3.76 cents per kWh All additional kWh per day at 7.93 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 3.76 cents per kWh All additional kWh per day at 7.93 cents per kWh

Base Service Charge: 9.73 cents per meter per day

Schedule RST (Residential: Tukwila)

Effective May 1, 2003, Schedule RST is for residential Tukwila customers, except those subject to Schedules RET and RLT.

RATES EFFECTIVE MAY 1, 2003:

Energy Charges:

Summer Billing Cycles (April -September)

First 10 kWh per day at 4.66 cents per kWh All over 10 kWh per day but less than or equal to 100 kWh per day at 8.99 cents per kWh All additional kWh per day at 10.41 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 4.66 cents per kWh All over 16 kWh per day but less than or equal to 167 kWh per day at 8.99 cents per kWh All additional kWh per day at 10.41 cents per kWh

Base Service Charge: 9.73 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 4.31 cents per kWh All additional kWh per day at 8.72 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 4.31 cents per kWh All additional kWh per day at 8.72 cents per kWh

Base Service Charge: 9.73 cents per meter per day

Schedule RSS (Residential: Suburban)

Schedule RSS is for residential suburban customers, except those subject to Schedules RES and RLS.

RATES EFFECTIVE JUNE 14, 2002:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 4.35 cents per kWh All over 10 kWh per day but less than or equal to 100 kWh per day at 8.68 cents per kWh All additional kWh per day at 10.10 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 4.35 cents per kWh All over 16 kWh per day but less than or equal to 167 kWh per day at 8.68 cents per kWh All additional kWh per day at 10.10 cents per kWh

Base Service Charge:

9.73 cents per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 4.43 cents per kWh All over 10 kWh per day but less than or equal to 100 kWh per day at 8.76 cents per kWh All additional kWh per day at 10.18 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 4.43 cents per kWh All over 16 kWh per day but less than or equal to 167 kWh per day at 8.76 cents per kWh All additional kWh per day at 10.18 cents per kWh

Base Service Charge:

9.73 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 4.04 cents per kWh All additional kWh per day at 8.24 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 4.04 cents per kWh All additional kWh per day at 8.24 cents per kWh

Base Service Charge:

9.73 cents per meter per day

B. Normal residential service shall be limited to singlephase.

C. If Schedules RSC, RST and RSS are applied to transient occupancy in separately metered living units, billing shall be in the name of the owner on a continuous basis.

D. Duplexes using a single meter prior to October 13, 1978 shall be considered as a single residence for the purpose of applying Schedules RSC, RST and RSS. For a new duplex or a larger service to an existing duplex, each residence shall be separately metered.

E. If an electric water heater providing potable water is served under Schedules RSC, RST and RSS, it shall be a storagetype insulated tank heated by elements which are thermostatically controlled. The maximum element wattage shall not exceed five thousand five hundred (5,500) watts.

F. All electrical service provided for domestic uses to a single residential account, including electrically heated swimming pools, shall have all consumption of electricity added together for billing on Schedules RSC, RST and RSS.

Section 4. Section 21.49.040 of the Seattle Municipal Code is amended to read as follows:

21.49.040 Residential rate assistance (Schedules REC, RET, RES, RLC, RLT and RLS).

A. Schedules REC, RET, RES, RLC, RLT and RLS are available to qualified low-income residential customers.

Schedules REC (Residential Elderly/Disabled: City) and RLC (Residential Low-Income: City)

Schedules REC and RLC are available for separately metered residential service provided to City customers who show satisfactory proof that they have a City Light residential account and reside in the dwelling unit where the account is billed and that they:

1. For Schedule RLC, receive Supplemental Security Income pursuant to

42 USC Sections 1381 -1383; or

2. For Schedule RLC, reside in a household in which the annual income of all household members together does not exceed two hundred (200) percent of the poverty level for the number of individuals in the household as computed annually by the U.S. Government or the City; or

3. For Schedule REC, reside in a household in which the annual income of all household members together does not exceed seventy (70) percent of the Washington State median income for the number of individuals in the household as computed annually by the state or the City and are:

a. Blind, or

b. Sixty-five (65) years of age or older, or

c. Disabled and receive funds from a disability program as a result of a disability that prevents them from working consistent with the requirements of 42 USC Section 401 et seq., or

d. Require medical life support equipment which utilizes mechanical or artificial means to sustain, restore, or supplant a vital function.

RATES EFFECTIVE JUNE 14, 2002:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 1.79 cents per kWh

All kWh over 10 kWh per day but less than or equal to 100 kWh per day at 3.19 cents per kWh All additional kWh per day at 4.00 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 1.79 cents per kWh All kWh over 16 kWh per day but less than or equal to 167 kWh per day at 3.19 cents per kWh All additional kWh per day at 4.00 cents per kWh

Base Service Charge: 4.87 cents per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 1.83 cents per kWh All kWh over 10 kWh per day but less than or equal to 100 kWh per day at 3.23 cents per kWh All additional kWh per day at 4.04 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 1.83 cents per kWh All kWh over 16 kWh per day but less than or equal to 167 kWh per day at 3.23 cents per kWh All additional kWh per day at 4.04 cents per kWh

Base Service Charge: 4.87 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 1.57 cents per kWh All additional kWh per day at 2.93 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 1.57 cents per kWh All additional kWh per day at 2.93 cents per kWh

Base Service Charge: 4.87 cents per meter per day

Schedules RET (Residential Elderly/Disabled: Tukwila) and RLT (Residential Low-Income: Tukwila)

Effective May 1, 2003, Schedules RET and RLT are available for separately metered residential service provided to Tukwila customers who show satisfactory proof that they have a City Light residential account and reside in the dwelling unit where the account is billed and that they:

1. For Schedule RLT, receive Supplemental Security Income pursuant to

42 USC Sections 1381 -1383; or

2. For Schedule RLT, reside in a household in which the annual income of all household members together does not exceed two hundred (200) percent of the poverty level for the number of individuals in the household as computed annually by the U.S. Government or the City; or

3. For Schedule RET, reside in a household in which the annual income of all household members together does not exceed seventy (70) percent of the Washington State median income for the number of individuals in the household as computed annually by the state or the City and are:

a. Blind, or

b. Sixty-five (65) years of age or older, or

c. Disabled and receive funds from a disability program as a result of a disability that prevents them from working consistent with the requirements of 42 USC Section 401 et seq., or

d. Require medical life support equipment which utilizes mechanical or artificial means to sustain, restore, or supplant a vital function.

RATES EFFECTIVE MAY 1, 2003:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 1.99 cents per kWh All kWh over 10 kWh per day but less than or equal to 100 kWh per day at 3.39 cents per kWh All additional kWh per day at 4.20 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 1.99 cents per kWh All kWh over 16 kWh per day but less than or equal to 167 kWh per day at 3.39 cents per kWh All additional kWh per day at 4.20 cents per kWh

Base Service Charge: 4.87 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 1.83 cents per kWh All additional kWh per day at 3.26 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 1.83 cents per kWh All additional kWh per day at 3.26 cents per kWh

Base Service Charge: 4.87 cents per meter per day

Schedules RES (Residential Elderly/Disabled: Suburban) and RLS (Residential Low-Income: Suburban)

Schedules RES and RLS are available for separately metered residential service provided to suburban customers who show satisfactory proof that they have a City Light residential account and reside in the dwelling unit where the account is billed and that they:

1. For Schedule RLS, receive Supplemental Security Income pursuant to

42 USC Sections 1381 -1383; or

2. For Schedule RLS, reside in a household in which the annual income of all household members together does not exceed two hundred (200) percent of the poverty level for the number of individuals in the household as computed annually by the U.S. Government or the City; or

3. For Schedule RES, reside in a household in which the annual income of all household members together does not exceed seventy (70) percent of the Washington State median income for the number of individuals in the household as computed annually by the state or the City and are:

a. Blind, or

b. Sixty-five (65) years of age or older, or

c. Disabled and receive funds from a disability program as a result of a disability that prevents them from working consistent with the requirements of 42 U.S.C. USC Section 401 et seq., or

d. Require medical life support equipment which utilizes mechanical or artificial means to sustain, restore, or supplant a vital function.

RATES EFFECTIVE JUNE 14, 2002:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 1.84 cents per kWh All kWh over 10 kWh per day but less than or equal to 100 kWh per day at 3.24 cents per kWh All additional kWh per day at 4.05 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 1.84 cents per kWh All kWh over 16 kWh per day but less than or equal to 167 kWh per day at 3.24 cents per kWh All additional kWh per day at 4.05 cents per kWh

Base Service Charge: 4.87 cents per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 1.88 cents per kWh All kWh over 10 kWh per day but less than or equal to 100 kWh per day at 3.28 cents per kWh All additional kWh per day at 4.09 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 1.88 cents per kWh All kWh over 16 kWh per day but less than or equal to 167 kWh per day at 3.28 cents per kWh All additional kWh per day at 4.09 cents per kWh

Base Service Charge: 4.87 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges:

Summer Billing Cycles (April -September) First 10 kWh per day at 1.70 cents per kWh All additional kWh per day at 3.06 cents per kWh

Winter Billing Cycles (October -March) First 16 kWh per day at 1.70 cents per kWh

All additional kWh per day at 3.06 cents per kWh

Base Service Charge: 4.87 cents per meter per day

B. Applicants for Schedules REC, RLC, RET, RLT, RES and RLS shall verify the information required to certify their eligibility for residential rate assistance and shall provide such other data as is deemed appropriate upon forms and in the manner determined by the City's Human Services Department.

C. Schedules REC, RLC, RET, RLT, RES and RLS and any other form of residential rate assistance established by the Department are not available to those otherwise eligible persons who own their dwelling unit and who use electric heat as defined in Seattle Municipal Code Section 21.52.210 (Ordinance 109675, Section 2) but who have not completed or who are not in the process of completing the energy conservation measures required for participation in the Comprehensive Residential Weatherization Program described in Seattle Municipal Code Section 21.52.260 (Ordinance 109675, Section 8). Customers who own their own dwelling unit and who use electric heat have one (1) year from the date of application for Schedules REC, RLC, RET, RLT, RES and RLS to complete the energy conservation measures. Eligibility for residential rate assistance may be continued by the Department, however, if the Department determines that the customer's failure to complete the required energy conservation measures is the fault of the City in failing to furnish or properly administer the Low-income Electric Program set forth in Seattle Municipal Code Section 21.52.250 (Ordinance 109675, Section 7).

D. Schedules REC, RLC, RET, RLT, RES and RLS shall not apply to any subsidized unit operated by the Seattle Housing Authority, the Housing Authority of the County of King, or the Federal Government where utility allowances are provided.

E. Normal residential service under Schedules REC, RLC, RET, RLT, RES and RLS shall be limited to single-phase.

F. If Schedules REC, RLC, RET, RLT, RES and RLS are applied to transient occupancy in separately metered living units, billing shall be in the name of the owner on a continuous basis.

G. Duplexes using a single meter prior to October 13, 1978 shall be considered as a single residence for the purpose of applying Schedules REC, RLC, RET, RLT, RES and RLS. For a new duplex or a larger service to an existing duplex, each residence shall be separately metered.

H. If an electric water heater providing potable water is served under Schedules REC, RLC, RET, RLT, RES and RLS, it shall be a storage-type insulated tank heated by elements which are thermostatically controlled. The maximum element wattage shall not exceed five thousand five hundred (5,500) watts.

I. All electric service provided for domestic uses to a single residential account, including electrically heated swimming pools, shall have all consumption of electricity added together for billing on Schedules REC, RLC, RET, RLT, RES and RLS.

J. The Department will contract for the provision of free parts and service to owners of electric ranges, water heaters, permanently connected electric heat, microwave ovens, electric clothes dryers, dishwashers, refrigerators, and freezers when a customer requiring service for such appliances is billed under Schedules REC, RLC, RES and RLS.

Section 5. Subsection A of Section 21.49.052 of the Seattle Municipal Code is amended to read as follows:

21.49.052 Small general service (Schedules SMC, SMT, and SMS and SMD.

A. Small general service is general service provided to customers whose maximum demand is less than fifty (50) kW who are not demand metered or, if demand metered, have had in the previous calendar year more than half of their normal billings at less than fifty (50) kW of maximum demand. Classification of new customers as small general service customers will be based on the Department's estimate of maximum demand in the current year.

Schedule SMC (Small General Service: City)

Schedule SMC is for small standard general service provided to City customers who are not demand metered or, if demand metered, have in the previous calendar year more than half of their normal billings at less than fifty (50) kW of maximum demand. Classification of new customers will be based on the Department's estimate of maximum demand in the current year.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges: All energy at 6.05 cents per kWh

Minimum Charge: 20.00 cents per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: All energy at 6.13 cents per kWh

Minimum Charge: 20.00 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: All energy at 5.51 cents per kWh

Minimum Charge: 23.00 cents per meter per day

Discounts: Transformer losses in kWh - .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule SMT (Small General Service: Tukwila)

Effective May 1, 2003, Schedule SMT is for small standard general service provided to Tukwila customers who are not demand metered or, if demand metered, have in the previous calendar year more than half of their normal billings at less than fifty (50) kW of maximum demand. Classification of new customers will be based on the Department's estimate of maximum demand in the current year.

RATES EFFECTIVE MAY 1, 2003:

Energy Charges: All energy at 6.43 cents per kWh

Minimum Charge: 20.00 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: All energy at 5.89 cents per kWh

Minimum Charge: 23.00 cents per meter per day

Discounts: Transformer losses in kWh - .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule SMS (Small General Service: Suburban)

Schedule SMS is for small standard general service provided to suburban customers who are not demand metered or, if demand metered, have in the previous calendar year more than half of their normal billings at less than fifty (50) kW of maximum demand. Classification of new customers will be based on the Department's estimate of maximum demand in the current year.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges: All energy at 6.16 cents per kWh

Minimum Charge: 20.00 cents per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: All energy at 6.24 cents per kWh

Minimum Charge: 20.00 cents per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: All energy at 5.77 cents per kWh

Minimum Charge: 23.00 cents per meter per day

Discounts: Transformer losses in kWh - .53285 x kW + .00002 x kW2 + .00527 x kWh

Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule SMD (Small General Service: Network)

Schedule SMD is for small network general service.

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: All energy at 5.51 cents per kWh

Minimum Charge: 23.00 cents per meter per day

Discounts: Transformer losses in kWh - .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.21 per kW of monthly maximum demand

***

Section 6. Subsection A of Section 21.49.055 of the Seattle Municipal Code is amended to read as follows:

21.49.055 Medium general service (Schedules MDC, MDT, MDS and MDD).

A. Medium general service is general service provided to customers who have in the previous calendar year half or more than half of their normal billings at fifty (50) kW of maximum demand or greater and have more than half of their normal billings at less than one thousand (1,000) kW of maximum demand. Classification of new customers will be based on the Department's estimate of maximum demand in the current year.

Schedule MDC (Medium Standard General Service: City)

Schedule MDC is for medium standard general service provided to City customers.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges: All energy at 5.86 cents per kWh

Demand Charges: All kW of maximum demand at $1.03 per kW

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: All energy at 5.94 cents per kWh

Demand Charges: All kW of maximum demand at $1.03 per kW

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: All energy at 4.67 cents per kWh

Demand Charges: All kW of maximum demand at $1.03 per kW

Minimum Charge (to be charged as soon after January 1, 2007, as the Department's billing system can be programmed to include it): 60.00 cents per meter per day

Discounts: Transformer losses in kWh - 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule MDT (Medium Standard General Service: Tukwila)

Effective May 1, 2003, Schedule MDT is for medium standard general service provided to Tukwila customers.

RATES EFFECTIVE MAY 1, 2003:

Energy Charges: All energy at 6.25 cents per kWh

Demand Charges: All kW of maximum demand at $1.03 per kW

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: All energy at 5.15 cents per kWh

Demand Charges: All kW of maximum demand at $1.03 per kW

Minimum Charge (to be charged as soon after January 1, 2007, as the Department's billing system can be programmed to include it): 60.00 cents per meter per day

Discounts: Transformer losses in kWh 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment $0.17 $0.21 per kW of monthly maximum demand

Schedule MDS (Medium Standard General Service: Suburban)

Schedule MDS is for medium standard general service provided to suburban customers.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges: All energy at 5.97 cents per kWh

Demand Charges: All kW of maximum demand at $1.03 per kW

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: All energy at 6.05 cents per kWh

Demand Charges: All kW of maximum demand at $1.03 per kW

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: All energy at 5.04 cents per kWh

Demand Charges: All kW of maximum demand at $1.03 per kW

Minimum Charge (to be charged as soon after January 1, 2007, as the Department's billing system can be programmed to include it): 60.00 cents per meter per day

Discounts: Transformer losses in kWh - 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule MDD (Medium Network General Service)

Schedule MDD is for medium network general service.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges: All energy at 6.35 cents per kWh

Demand Charges: All kW of maximum demand at $1.59 per kW

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges:

All energy at 6.43 cents per kWh

Demand Charges: All kW of maximum demand at $1.59 per kW

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: All energy at 5.51 cents per kWh

Demand Charges: All kW of maximum demand at $1.59 per kW

Minimum Charge (to be charged as soon after January 1, 2007, as the Department's billing system can be programmed to include it): 60.00 cents per meter per day

Discounts: Transformer losses in kWh - 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment --

$0.17 $0.21 per kW of monthly maximum demand

***

Section 7. Section 21.49.057 of the Seattle Municipal Code is amended to read as follows:

21.49.057 Large general service (Schedules LGC, LGT, LGS and LGD).

A. Large general service is network general service provided to customers who have in the previous calendar year half or more than half of their normal billings at one thousand (1,000) kW of maximum demand or greater, and also standard general service provided to customers who have in the previous calendar year half or more than half of their normal billings at one thousand (1,000) kW of maximum demand or greater and have more than half of their normal billings at less than ten thousand (10,000) kW of maximum demand. Classification of new customers will be based on the Department's estimate of maximum demand in the current year.

Schedule LGC (Large Standard General Service: City)

Schedule LGC is for large standard general service provided to City customers.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges:

Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.91 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.17 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten

(10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $10.07 per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.99 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.25 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $10.07 per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.33 cents per kWh Off-peak: Energy used at all times other than the peak period at 3.56 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.80 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.21 per kW

Minimum Charge: $27.93 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts: Transformer losses in kWh - 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule LGT (Large Standard General Service: Tukwila)

Effective May 1, 2003, Schedule LGT is for large standard general service provided to Tukwila customers.

RATES EFFECTIVE MAY 1, 2003:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 6.27 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.53 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $10.07 per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 6.00 cents per kWh Off-peak: Energy used at all times other than the peak period at 4.00 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.80 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.21 per kW

Minimum Charge: $27.93 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts: Transformer losses in kWh - 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule LGS (Large Standard General Service: Suburban)

Schedule LGS is for large standard general service provided to suburban customers.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 6.01 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.27 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $10.07 per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 6.09 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.35 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW

Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $10.07 per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.81 cents per kWh Off-peak: Energy used at all times other than the peak period at 3.88 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.80 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.21 per kW

Minimum Charge: $27.93 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts:

Transformer losses in kWh - 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule LGD (Large Network General Service) Schedule LGD is for large network general service.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 6.24 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.48 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.84 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $10.33 per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 6.32 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.56 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.84 per kW

Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $10.33 per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.94 cents per kWh Off-peak: Energy used at all times other than the peak period at 3.96 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $1.68 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.21 per kW

Minimum Charge: $27.93 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts: Transformer losses in kWh - 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

B. For customers metered on the primary side of a transformer, the Department will either program the meter to deduct computed transformer losses or provide a discount for transformer losses by reducing the monthly kWh billed by the number of kWh computed in Section 21.49.057, subsection A.

C. For customers who provide their own transformation from the Department's standard distribution system voltage of four (4) kV, thirteen (13) kV, or twenty-six (26) kV to a utilization voltage, a discount for transformer investment will be provided in the amount stated in Section 21.49.057, subsection A. Existing customers served by the Department's 34.5 kV system as of January 1, 1995 shall be considered as receiving standard distribution voltage for the purpose of this section. This 34.5 kV voltage will not be offered as a standard distribution system voltage for any new customers.

D. The Department will provide one (1) transformation from the available distribution system voltage of four (4) kV or higher to a standard service voltage, and metering normally will be at the service voltage level. However, if the Department determines that it is either uneconomical or impractical to meter at the service voltage level, the Department will meter at the distribution voltage level and will either program the meter to deduct computed transformer losses or will reduce the monthly kWh billed by the amount of the discount for transformer losses.

If the customer elects to receive service from the Department's available distribution system voltage of four (4) kV or higher, metering will be at the distribution voltage level and the discounts for transformer losses, if applicable, and for transformer investment, if applicable, will be applied to the customer's billings. However, if the Department determines that it is either uneconomical or impractical to meter at the distribution voltage level, the Department will meter at the service voltage level and the discount for transformer losses will not be applicable.

Section 8. Section 21.49.058 of the Seattle Municipal Code is amended to read as follows:

21.49.058 High demand general service (Schedules HDC, and HDT, HDI , VRC and VRT.

A. High demand general service is standard general service provided to customers who have in the previous calendar year half or more than half of their normal billings at ten thousand (10,000) kW of maximum demand or greater. Classification of new customers will be based on the Department's estimates of maximum demand in the current year.

Schedule HDC (High Demand General Service: City)

Schedule HDC is for high demand standard general service provided to cityCity customers who have not signed an agreement to be served under Schedule HDI or VRC.

RATES EFFECTIVE APRIL 1, 2002:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.72 cents per kWh Off-peak: Energy used at all times other than the peak period at 4.96 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $122.00 per meter per day

RATES EFFECTIVE APRIL 1, 2003:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.80 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.04 cents per kWh

Demand Charges:

Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $122.00 per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.08 cents per kWh Off-peak: Energy used at all times other than the peak period at 3.40 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.80 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.21 per kW

Minimum Charge: $118.82 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts: Transformer losses in kWh - 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment - $0.17 $0.21 per kW of monthly maximum demand

Schedule HDT (High Demand General Service: Tukwila)

Effective May 1, 2003, Schedule HDT is for high demand standard general service provided to Tukwila customers who have not signed an agreement to be served under Schedule VRT.

RATES EFFECTIVE MAY 1, 2003:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 6.08 cents per kWh Off-peak: Energy used at all times other than the peak period at 5.32 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $122.00 per meter per day

RATES EFFECTIVE JANUARY 1, 2007:

Energy Charges: Peak: Energy used between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at 5.27 cents per kWh Off-peak: Energy used at all times other than the peak period at 3.52 cents per kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.80 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.21 per kW

Minimum Charge: $118.82 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts: Transformer losses in kWh 1756 + .53285 x kW + .00002 x kW2 + .00527 x kWh Transformer investment $0.17 $0.21 per kW of monthly maximum demand

Schedule HDI (High Demand General Service Interruptible)

Schedule HDI is available to customers that agree to enter into a contract acceptable to the Department providing for interruptible service. Such interruptible customers will be furnished service under the following conditions and rates:

1. Conditions. The Department may interrupt power deliveries to the customer when power supply conditions in the Pacific Northwest wholesale power market offer opportunities for both the customer and the Department to realize gain from interrupting power that the customer would otherwise have consumed. A "trigger price" for wholesale power shall be established defining the price that triggers the Department's option to interrupt. Net revenues above the defined trigger price received by means of such interruption shall be shared equally between the Department and the customer. The trigger price for calendar years 2002 and 2003 is established at fifty-five dollars ($55) per megawatt hour. The Department is authorized to establish a new trigger price for each subsequent two(2) year period by written notification to those customers that have entered into an interruptible contract. For those customers that enter into such an interruptible contract, the provisions of subsection 21.49.058 E shall not apply, but the provisions of Sections 21.49.110 U and 21.49.110 V shall continue to apply.

2. Rates. For those high-demand customers entering into an interruptible contract under this subsection, the following rates shall apply:

a. JANUARY 1, 2002 THROUGH DECEMBER 31, 2003:

Energy Charges:

Peak: Energy used between six (6:00) a.m and ten (10:00) p.m, Monday through Saturday, excluding major holidays,* at 4.00 cents per kWh Off-peak: Energy used at all times other than the peak period at 3.5 cents per kWh

Bonneville Rate pass through:

Both the peak and off-peak energy rates contain a 0.6 cents per kWh component reflecting the Bonneville surcharge. This component will be automatically increased or decreased during the two(2) year rate period to reflect any change in the Bonneville surcharge.

Demand Charges:

Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $122.00 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts:

Transformer losses in kWh --

1756 + .53285 x kW + .00002 x kW2+ .00527 x kWh Transformer investment - $0.17 per kW of monthly maximum demand

b. JANUARY 1, 2004:

Commencing January 1, 2004, the energy rate for such interruptible customers shall be standard high-demand general service energy and demand charges for both peak and off-peak hours plus an additional "extraordinary power cost adjustment" in the amount of 9.725 cents per kWh in each period applied to all kWh consumed by the customer after December 31, 2003, until the customer has consumed a total of five (5) times that customer's actual kWh consumption in calendar year 2000 (or such other calendar year from 1997 through 2001 that the Department determines to be representative of that customer's annual consumption), at which point the extraordinary power cost adjustment shall no longer be charged.

3. Additional Interruptible Options. In addition to the conditions and rates set out above, the Department is delegated the authority to enter into additional contract terms and payment provisions for a Schedule HDI customer that provide further interruptible options and/or power scheduling improvements that benefit the Department.

Schedule VRC (Variable Rate General Service: City)

Schedule VRC is an optional rate schedule for high demand general service provided to customers eligible to be served under Schedule HDC. A customer that chooses this rate schedule may not return to a standard rate schedule for a period of one (1) year after electing this schedule, provided that, should a new rate ordinance which changes Schedule VRC be adopted during this time, the customer may request return to a standard rate schedule upon the effective date of the new ordinance.

At the time a customer elects to take service under Schedule VRC, the customer must choose whether to pay an energy charge as defined in Option 1 DJ-COB or Option 2 DJ Mid-Columbia. After choosing an energy charge option, a customer may not choose a different energy charge option for a period of one (1) year except that, should a new rate ordinance which changes Schedule VRC be adopted during this time, the customer may request a change in energy charge option upon the effective date of the new ordinance or may request return to a standard rate schedule upon the effective date of the new ordinance.

RATES EFFECTIVE OCTOBER 1, 2001:

Energy Charge:

Option 1 DJ-COB

(DJ-COB price in cents/kWh 0.07 cents/kWh) x 1.1562 + 0.15 cents/kWh

The DJ-COB (Dow Jones-California Oregon Border) price is the appropriate peak or off-peak DJ-COB firm price converted to cents per kWh for the day and time period of the consumption. Peak and offpeak periods will be as defined by the DJ-COB price rather than as defined in the Demand Charges section of Schedule VRC or elsewhere in the ordinance codified in this section. In the case that a price is not available for a given day, the average of the preceding and following days' prices will be used. Peak and off-peak prices will be calculated separately via this method.

Option 2 DJ Mid-Columbia

DJ Mid-Columbia Price in cents/kWh x 1.1562 + 0.15 cents/kWh

The DJ Mid-Columbia (Dow Jones Mid-Columbia) price is the appropriate firm peak or off-peak DJ Mid-Columbia price index converted to cents per kWh for the day and time period of the consumption. Peak and off-peak periods will be as defined by the DJ Mid-Columbia price index rather than as defined in the Demand Charges section of Schedule VRC or elsewhere in this section. In the case that a price is not available for a given day, the average of the preceding and following days' prices will be used. Peak and off-peak prices will be calculated separately via this method.

Retail Services Charge: 1.46 cents/kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak period maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $122.00 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts: Transformer losses in kWh 1756 + .53285 x kW + .00002 x kW2+ .00527 x kWh Transformer investment $0.17 per kW of monthly maximum demand

Schedule VRT (Variable Rate General Service: Tukwila)

Effective May 1, 2003, Schedule VRT is an optional rate schedule for high demand general service provided to customers eligible to be served under Schedule HDT. A customer that chooses this rate schedule may not return to a standard rate schedule for a period of one (1) year after electing this schedule, provided that, should a new rate ordinance which changes Schedule VRT be adopted during this time, the customer may request return to a standard rate schedule upon the effective date of the new ordinance.

At the time a customer elects to take service under Schedule VRT, the customer must choose whether to pay an energy charge as defined in Option 1 DJ-COB or Option 2 DJ Mid-Columbia. After choosing an energy charge option, a customer may not choose a different energy charge option for a period of one (1) year except that, should a new rate ordinance which changes Schedule VRT be adopted during this time, the customer may request a change in energy charge option upon the effective date of the new ordinance or may request return to a standard rate schedule upon the effective date of the new ordinance.

RATES EFFECTIVE MAY 1, 2003:

Energy Charge: Option 1 DJ-COB (DJ-COB price in cents/kWh 0.07 cents/kWh) x 1.1562 + 0.15 cents/kWh

The DJ-COB (Dow Jones-California Oregon Border) price is the appropriate peak or off-peak DJ-COB firm price converted to cents per kWh for the day and time period of the consumption. Peak and offpeak periods will be as defined by the DJ-COB price rather than as defined in the Demand Charges section of Schedule VRT or elsewhere in the ordinance codified in this section. In the case that a price is not available for a given day, the average of the preceding and following days' prices will be used. Peak and off-peak prices will be calculated separately via this method.

Option 2 DJ Mid-Columbia

DJ Mid-Columbia Price in cents/kWh x 1.1562 + 0.15 cents/kWh

The DJ Mid-Columbia (Dow Jones Mid-Columbia) price is the appropriate firm peak or off-peak DJ Mid-Columbia price index converted to cents per kWh for the day and time period of the consumption. Peak and off-peak periods will be as defined by the DJ Mid-Columbia price index rather than as defined in the Demand Charges section of Schedule VRT or elsewhere in this section. In the case that a price is not available for a given day, the average of the preceding and following days' prices will be used. Peak and off-peak prices will be calculated separately via this method.

Retail Services Charge: 1.55 cents/kWh

Demand Charges: Peak: All kW of maximum demand between six (6:00) a.m. and ten (10:00) p.m., Monday through Saturday, excluding major holidays,* at $0.40 per kW Off-peak: All kW of maximum demand in excess of peak period maximum demand, at all times other than the peak period, at $0.17 per kW

Minimum Charge: $122.00 per meter per day

* Major holidays excluded from the peak period are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Discounts: Transformer losses in kWh 1756 + .53285 x kW + .00002 x kW2+ .00527 x kWh Transformer investment $0.17 per kW of monthly maximum demand

B. For customers metered on the primary side of a transformer, the Department will either program the meter to deduct computed transformer losses or provide a discount for transformer losses by reducing the monthly kWh billed by the number of kWh computed in Section 21.49.058, subsection A.

C. For customers who provide their own transformation from the Department's standard distribution system voltage of four (4) kV, thirteen (13) kV, or twenty-six (26) kV to a utilization voltage, a discount for transformer investment will be provided in the amount stated in Section 21.49.058, subsection A. Existing customers served by the Department's 34.5 kV system as of January 1, 1995 shall be considered as receiving standard distribution voltage for the purpose of this section. This 34.5 kV voltage will not be offered as a standard distribution system voltage for any new customers.

D. The Department will provide one (1) transformation from the available distribution system voltage of four (4) kV or higher to a standard service voltage, and metering normally will be at the service voltage level. However, if the Department determines that it is either uneconomical or impractical to meter at the service voltage level, the Department will meter at the distribution voltage level and will either program the meter to deduct computed transformer losses or will reduce the monthly kWh billed by the amount of the discount for transformer losses.

If the customer elects to receive service from the Department's available distribution system voltage of four (4) kV or higher, metering will be at the distribution voltage level and the discounts for transformer losses, if applicable, and for transformer investment, if applicable, will be applied to the customer's billings. However, if the Department determines that it is either uneconomical or impractical to meter at the distribution voltage level, the Department will meter at the service voltage level and the discount for transformer losses will not be applicable.

DE. Customers must provide hourly load schedules each day for the following day. If a customer's load follows a regular pattern, the Department may, at its discretion, waive this requirement and request only to be informed of temporary or permanent changes to the pattern.

EF. The Department may request voluntary load interruption during an emergency. If interruption occurs, the demand charge will be waived for the billing period in which the interruption occurs.

F. Customers who request service under Schedule VRC will be selected solely at the option of Seattle City Light.

G. Customers served under Schedule VRC shall provide Seattle City Light with access to their telephone equipment and pay any initial and ongoing charges for additional telephone equipment needed for the Department to communicate with its metering equipment.

Section 9. Section 21.49.059 of the Seattle Municipal Code is deleted.

21.49.059 New large load general service (Schedule NLL).

A. New large load general service is general service provided to a new large load.

1. The NLL rate shall not apply to individually metered services served from the installed capacity of a new large load customer when such individually metered service is a:

a. Residential service individually metered and billed by the Department; or

b. Retail space individually metered and billed by the Department.

2. Any issues of load imbalance among the remaining nonretail and nonresidential tenants shall be addressed though an application for customer submetering pursuant to SMC Section 21.49.100 H3.

B. Unless otherwise superceded by n individually adopted contract rate pursuant to subsection C of this section, a new large load customer shall be billed pursuant to the rates set forth in SMC Section 21.49.058, Schedule VRC.

C. Notwithstanding the one (1)-year commitment otherwise provided in Schedule VRC, a new large load customer may elect to work with the Department to create a more tailored power delivery package either before a new large load is energized or after being billed under Schedule VRC for any period of time.

1. Elements of a tailored power delivery package could include:

a. A power price indexed to alternate market price indices as in the energy charge of Schedule VRC;

b. Pass-through cost of a specific power supply contract provided to the Department by a third party;

c. A power price index rate, as in subsection C1a of this section, combined with the pass-through of the cost of a specific power supply contract provided to the Department by a third party, as in subsection C1b of this section;

d. Pass through of the costs, in whole or in part, of the Department's equity position in a new generation resource;

e. A power price based upon the Department's estimated cost of purchasing power for the new large load over an identified period, including an appropriate risk premium for the power price risk that the Department would be assuming;

f. A rate based on the new resources rate charged by the Bonneville Power Administration for that portion of the customer's power needs the Department is able to purchase from the Bonneville Power Administration under Bonneville's current or future contract provisions for serving new large loads.

g. Supplementing purchased power with the Department's own generation resources, provided the price of utilizing those resources is related to market value; or

h. Other power purchase arrangements and associated prices that may be proposed as a result of discussions between the Department and a new large load customer.

2. Such a tailored power delivery package shall also include:

a. Energy and demand charges which reflect the incremental cost of providing energy and capacity to meet the requirements of the new large load, including the costs of transmitting energy to the Department's service area and the cost of transmission losses, taxes, ancillary services and administrative services directly related to the provision of new large load service;

b. The cost of mitigating greenhouse gas emissions associated with the provision of energy to serve the new large load in accordance with Resolution 30144;

c. A delivery charge which reflects the incremental costs, other than costs incurred in connecting the customer to the electrical delivery system, of delivering power to the customer through the Department's transmission and distribution systems; and

d. Charges to recover the costs of customer service, billing, public purpose programs and streetlighting services;

e. A term of five (5) years, or less, except when exceptional circumstances or power purchase arrangements justify a longer term.

3. Any such tailored power delivery package shall be adopted by ordinance.

D. In addition to installation costs under SMC Section 21.49.110 T, a

new large load customer shall reimburse the Department for all costs incurred in extending distribution lines and providing substation capacity to supply three-phase service to the new large load.

Section 10. Subsections A, B and J of Section 21.49.060 of the Seattle Municipal Code are amended to read as follows:

21.49.060 Contract street and area lighting rates (Schedules F, and T and P.

A. Schedule F is available to all customers, including but not limited to water and sewer districts and King County, who privately contract with the Department for floodlights operating from dusk to dawn. Schedule T is available to all customers, including but not limited to water and sewer districts and King County, who privately contract with the Department for dusk-to-dawn lighting of streets, alleys, and other public thoroughfares. Schedule P is available to all customers, including but not limited to water and sewer districts and King County, who contract with the Department for pedestrian lighting.

Schedule F-Floodlights

RATES EFFECTIVE DECEMBER 24, 1999:

Option E: 200 Watt Sodium Vapor, 22,000 lumens $2.27 per month 400 Watt Sodium Vapor, 50,000 lumens $4.29 per month

Option M: 200 Watt Sodium Vapor, 22,000 lumens $6.05 per month 400 Watt Sodium Vapor, 50,000 lumens $7.55 per month

RATES EFFECTIVE MARCH 1, 2002:

Option E: 200 Watt Sodium Vapor, 22,000 lumens $2.30 per month

400 Watt Sodium Vapor, 50,000 lumens $4.36 per month

Option M: 200 Watt Sodium Vapor, 22,000 lumens $6.32 per month 400 Watt Sodium Vapor, 50,000 lumens $7.82 per month

RATES EFFECTIVE JANUARY 1, 2007:

Option E: 200 Watt Sodium Vapor, 22,000 lumens $4.99 per month 400 Watt Sodium Vapor, 50,000 lumens $9.45 per month

Option M: 200 Watt Sodium Vapor, 22,000 lumens $10.37 per month 400 Watt Sodium Vapor, 50,000 lumens $14.36 per month

Schedule T-Streetlights

RATES EFFECTIVE DECEMBER 24, 1999:

Option M: 100 Watt Sodium Vapor, 9,000 lumens $3.73 per month 150 Watt Sodium Vapor, 16,000 lumens $4.35 per month 200 Watt Sodium Vapor, 22,000 lumens $4.71 per month

250 Watt Sodium Vapor, 27,500 lumens $5.46 per month 400 Watt Sodium Vapor, 50,000 lumens $6.96 per month

Option C: 100 Watt Sodium Vapor, 9,000 lumens $5.17 per month 150 Watt Sodium Vapor, 16,000 lumens $5.88 per month 200 Watt Sodium Vapor, 22,000 lumens $6.31 per month 250 Watt Sodium Vapor, 27,500 lumens $7.07 per month 400 Watt Sodium Vapor, 50,000 lumens $8.63 per month

RATES EFFECTIVE MARCH 1, 2002:

Option M: 100 Watt Sodium Vapor, 9,000 lumens $3.89 per month 150 Watt Sodium Vapor, 16,000 lumens $4.52 per month 200 Watt Sodium Vapor, 22,000 lumens $4.88 per month 250 Watt Sodium Vapor, 27,500 lumens $5.65 per month 400 Watt Sodium Vapor, 50,000 lumens $7.18 per month

Option C: 100 Watt Sodium Vapor, 9,000 lumens $5.44 per month 150 Watt Sodium Vapor, 16,000 lumens $6.17 per month 200 Watt Sodium Vapor, 22,000 lumens $6.60 per month 250 Watt Sodium Vapor, 27,500 lumens $7.38 per month 400 Watt Sodium Vapor, 50,000 lumens $8.97 per month

RATES EFFECTIVE JANUARY 1, 2007:

Option M: 100 Watt Sodium Vapor, 9,000 lumens $5.87 per month 150 Watt Sodium Vapor, 16,000 lumens $7.11 per month 200 Watt Sodium Vapor, 22,000 lumens $7.99 per month 250 Watt Sodium Vapor, 27,500 lumens $9.45 per month 400 Watt Sodium Vapor, 50,000 lumens $12.47 per month

Option C: 100 Watt Sodium Vapor, 9,000 lumens $8.38 per month 150 Watt Sodium Vapor, 16,000 lumens $9.66 per month 200 Watt Sodium Vapor, 22,000 lumens $10.69 per month 250 Watt Sodium Vapor, 27,500 lumens $10.70 per 400 Watt Sodium Vapor, 50,000 lumens $15.28 per month

Schedule P-Pedestrian Lights

RATES EFFECTIVE JANUARY 1, 2007:

Option M: ZED47A 70 Watts $6.22 per month Option C: ZED47A 70 Watts $11.66 per month

Option P: ZED47A 70 Watts $34.53 per month

B. The monthly charge for Option E floodlights covers energy only; charges for lamp replacement and fixture maintenance are in addition to the monthly charge. The monthly charge for Option M floodlights, and for Option M streetlights and pedestrian lights includes energy, lamp replacement, fixture maintenance costs and scheduled pole maintenance costs. For Option C streetlights and pedestrian lights, the monthly charge includes the Option M charges as well as the capital costs of fixtures. For Option P pedestrian lights, the monthly charge includes Option C charges as well as the capital cost of poles.

***

J. The Department shall have the authority to determine and establish charges for other types and sizes of streetlights, and floodlights and pedestrian lights by the same method used in the determination of the charges established in Schedules F , and T and P.

***

Section 11. Section 21.49.065 of the Seattle Municipal Code is amended to read as follows:

21.49.065 Duct, vault and pole rental rates.

A. General Rental Provisions. Rental rates shall be charged on an annual basis based on the installations and attachments existing as of January 1st of each year. The full annual rental rate shall be charged for the year in which an installation or attachment is made, regardless of what point in the year use of City Light facilities commences.

Each lessee shall submit annually to City Light an inventory listing the amount of duct and vault space and the number of poles used, together with the location of all ducts, vaults and poles used. This inventory shall be effective as of January 1st of each year and submitted to City Light no later than February 1st of each year. Rental charges shall be due within thirty (30) days of invoice by City Light.

Any installations or attachments not identified in the lessee's inventory shall be charged at three (3) times the rental rates set forth below. In addition, in the event the lessee fails to submit an annual inventory, the lessee shall also reimburse City Light for all costs associated with performing an inventory of lessee's use of City Light facilities.

RATES EFFECTIVE DECEMBER 24, 1999:

Duct Rental: $4.37 per duct-foot per year

When a customer installs an innerduct in a rented duct, the rental rate shall be: $4.37 per innerduct-foot per year

Vacant innerducts shall be available to the Department for rental to other parties.

Vault Rental: $16.16 per square foot of wall space per year $4.37 per square foot of ceiling space per year

Wall space and ceiling space include clearance required by the Safety Standards for Electrical Construction. WAC 296-44.

Pole Attachment Rental: $14.19 per pole per year for poles owned solely by the Department $7.09 per pole per year for poles owned jointly by the Department and one (1) other party $4.73 per pole per year for poles owned jointly by the Department and two (2) other parties

RATES EFFECTIVE MARCH 1, 2002:

Duct Rental: $4.52 per duct-foot per year

When a customer installs an innerduct in a rented duct, the rental rate shall be: $4.52 per innerduct-foot per year

Vacant innerducts shall be available to the Department for rental to other parties.

Vault Rental: $16.74 per square foot of wall space per year $4.52 per square foot of ceiling space per year

Wall space and ceiling space include clearance required by the Safety Standards for Electrical Construction, WAC 296-44.

Pole Attachment Rental: $14.70 per pole per year for poles owned solely by the Department $7.35 per pole per year for poles owned jointly by the Department and one (1) other party $4.90 per pole per year for poles owned jointly by the Department and two (2) other parties

RATES EFFECTIVE JANUARY 1, 2007:

Duct Rental: $4.98 per duct-foot per year

When a customer installs an innerduct in a rented duct, the rental rate shall be: $4.98 per innerduct-foot per year

Vacant innerducts shall be available to the Department for rental to other parties.

Vault Rental: $18.91 per square foot of wall space per year $4.98 per square foot of ceiling space per year

Wall space and ceiling space include clearance required by the Safety Standards for Electrical Construction, WAC 296-44.

Pole Attachment Rental: $18.55 per pole per year for poles owned solely by the Department $9.28 per pole per year for poles owned jointly by the Department and one (1) other party $6.18 per pole per year for poles owned jointly by the Department and two (2) other parties

Section 12. Section 21.49.081 of the Seattle Municipal Code is amended to read as follows:

21.49.081 Automatic BPA cost adjustment.

Each time that BPA adjusts its rates from those in its block and slice power sales agreements (PSAs) with City Light effective as of January 1, 2007, City Light will calculate the difference (in dollars) between what City Light would have paid for its BPA purchases under the PSAs for a twelve (12) month period beginning October 1, 2001on the effective date of the BPA adjustment under the rates contained in the BPA Final Proposal of May 2000and what City Light will actually pay for the same period under the adjusted BPA ratesin effect October 1, 2001. The dollar difference will then be multiplied by 1.1095, which is the effective tax rate, and the product divided by forecast load (in kWh) over the twelve (12) month period beginning October 1, 2001to calculate a number (in dollars/kWh rounded to the nearest ten thousandth of a dollar) which will be called the "BPA increment."

For example, if the an increase in BPA contract costs equaledPSA rates results in increased costs to the Department of Eighteen Million, Four Hundred Twenty-two Thousand, Five Hundred Forty-three Dollars ($18,422,543) $18,422,543 per year(a seventeen (17) percent increase), this cost increase amount would be multiplied by the 1.1095 effective tax rate to get required additional customer revenue of Twenty Million, Four Hundred Thirty-nine Thousand, Eight Hundred Eleven Dollars ($20,439,811) $20,439,811. This The additional revenue required would then be divided by the forecast nine billion, one hundred thirty-six million, four hundred seven thousand (9,136,407,000)kWh load to calculate a the BPA incrementof $.0022/kWh.

As soon as practical after a BPA adjustment in PSA rates, Energy energy charges in effect on October 1, 2001 under all rate schedules except Schedules T, P, and F, and VRC and energy charges scheduled to take effect on March 1, 2002 under all rate schedules except T, F, and VRC will be increased or decreased by the BPA increment, provided that for customers served under Schedules REC, RLC, RET, RLT, RES, and RLS, energy charges shall be increased or decreased by one-half ( 1/2) of the BPA increment. The BPA increment will increase or decrease equally first block and second block charges in residential rates and peak and off-peak rates for large and high demand general service customers as well as the single energy charges for small and medium general service customers.

If at any time after October 1, 2001December 31 2006 BPA announces an adjustment in the rates to be charged under the PSAs for sales of power or other services to City Light, then City Light shall recompute the BPA increment for the purpose of ensuring that only the increase or decrease in costs under City Light's contracts with BPA the PSAwill be passed through to City Light's customers. The increment will be based on the projected load for a twelve (12) month period. City Light's rates shall be adjusted to give effect to the recomputedBPA increment, and the adjusted rates shall take effect on the same date asafter the effective date of the adjusted BPA rates as soon as the billing process can be implemented.

Section 13. Chapter 21.49 of the Seattle Municipal Code is amended to add a new section, SMC 21.49.085, to read as follows:

21.49.085 Reserved distribution capacity charge (Schedule RDC).

A. Non-residential customers located in areas of the Department's service territory where there is adequate distribution capacity may request that the Department reserve capacity sufficient to meet their loads on a circuit which is different from their normal service circuit. Such customers shall pay a reserved distribution capacity charge.

Schedule RDC (Reserved Distribution Capacity), effective January 1, 2007

$0.23 per kW of monthly maximum demand

B. The acceptance and continued implementation of a customer's request for reserved distribution capacity shall always be contingent on the Department's sole determination that adequate distribution capacity is available.

Section 14. Subsection D of Section 21.49.090 of the Seattle Municipal Code is amended to read as follows:

21.49.090 Rate, meter reading, and billing provisions.

***

D. Totalizing Multiple Meters. The Department may waive the application of rates to each meter and permit the reading of two (2) or more meters at a single contiguous location to be totaled for billing purposes when the premises are billed for electric service under large general service or high demand general service rate schedules, as defined in SMC 21.49.057 and 21.49.058, and the Department determines that the maintenance of adequate service and/or that the Department's convenience requires more than one (1) meter for each type of service or load classification.

***

Section 15. Subsections B, C, H and K of Section 21.49.100 of the Seattle Municipal Code are amended to read as follows:

21.49.100 Application and contract provisions.

***

B. Service Contracts and Agreements: Customers' Obligations. Applicants or customers desiring electric service shall make application to and may be required to sign an application furnished by the Department before service is supplied. Failure to notify the Department of use of service or to sign a contract when requested shall constitute sufficient cause for the Department to disconnect or refuse to provide electric service. Upon acceptance by the Department, the application shall constitute a contract between the Department and the applicant by which the Department agrees to furnish and the applicant agrees to accept and pay for electric service for the premises specified under the rates, terms, and provisions prescribed from time to time by ordinance. In the absence of an application for service or signed contract, the furnishing of electric service by the Department and the use of such service by the customer shall constitute a contract and the customer agrees to pay for such electric service under the rates, terms and provisions of the applicable rate ordinance as amended from time to time. The acceptance of application for service by the Department or the use by the customer of electric service provided by the Department will constitute an open and continuous contract for electric services between the Department and the customer.

In cases where the customer is a tenant, the property owner or his agent must provide notice to the Department of the dates a tenant starts and ends occupancy or has control of the premises. Such notices must be made within ten (10) working days of the start and end dates. Failure of a property owner to provide such notice may result in billing charges to the property owner for a tenant's use of electric service. The receipt and acceptance of a payment of a periodic billing by the Department does not constitute payment in full for electric service unless it reflects the actual amount of service provided. In the event the bill reflects an amount that is less than the amount of electric service provided, the customer shall be liable for such difference. The customer is liable for all services rendered at the published rate and failure of the utility to bill does not release the customer from such liability. The open and continuing contract remains in effect until terminated by the customer or the Department and the customer will be required to pay any unbilled or underbilled service costs that are billed or rebilled within six (6) years of the date of termination. In the event that a customer uses the electric service provided by the Department but fails to receive billing for service, it shall be the customer's responsibility to notify the Department of the failure to receive a bill. It shall be the customer's responsibility to notify the Department in writing within sixty (60) days from the billing date, if a customer receives a bill on which the customer believes that the wrong rate schedule has been applied or that any other defect in billing exists. The Department assumes no responsibility for retroactive adjustments prior to the bill for which the Department has been provided such written notice.

C. Department's Obligation to Serve; Customers' Obligation to Pay. The Department, within its capabilities and under the rates, terms, and provisions of applicable City ordinances, shall supply electric service to all customers upon approval of application for electric service. The customer shall be responsible for all charges under the conditions of the contract and the rates and terms prescribed by ordinance or written Department rules and regulations, and shall be responsible for all charges to the time specified in the application or for the period of occupancy and/or control of the premises. Notice to close an account or disconnect service to any premises shall be given by the customer at any business office of the Department. If the customer fails to close an account, the customer will be responsible up to the date the Department closes the account. If the customer does not give prior written notice to the Department to close an account or disconnect service to a premises on a certain date, the Department may bill the customer to a closing date determined by the Department, unless the customer is able to substantiate to the Department's satisfaction that the customer terminated the use of the Department's electric service at an earlier date. In cases where the customer is a tenant, and the property owner fails to give notice to the Department pursuant to subsection B, the owner may be charged for a tenant's use of electric service. If a tenant properly closes an account and is no longer occupying the space, the closing date will not change regardless of any owner/tenant lease agreement. If the customer fails to close an account, the customer will be responsible up to the date the Department closes the account.

***

H. Prohibition of Submetering: Exceptions. The Department shall not provide electricity to any customer who submeters any part of the electricity for the purpose of resale or apportionment or who otherwise apportions the costs of electric energy use to any other consumer, except that the Department shall permit such resale or apportionment for the following purposes:

1. Boat Mooring Establishments. New or upgraded service to boat mooring establishments shall be master metered. The Department will not provide meters for individual moorage spaces nor directly bill individual boat moorage tenants at a boat moorage establishment where a new service has been installed or an existing service has been upgraded after September 25, 1982.

Resale by customer operators shall be at an average rate not to exceed the operator's average cost per kWh as billed by the Department and shall not exceed the proportion of the costs for which the boat moorage tenant is responsible.

2. Mobile Home Parks. This exception applies to only those mobile home park operators submetering and reselling electricity as of August 1, 1980. New or upgraded services to mobile home parks will be provided in accordance with written Department rules and regulations.

Resale by customer operators shall be at an average rate not to exceed the operator's average cost per kWh as billed by the Department and shall not exceed the proportion of the costs for which the mobile home park tenant is responsible.

3. Other Purposes. On a case-by-case basis, the Department may permit a customer, subject to the provisions of Section 21.49.110 J, to submeter for the purpose of apportioning the cost of electric energy; provided, however, such determination must be based on an objective review and must relate to an economic imbalance relating to service and/or protection of each customer's rights under this chapter and RCW 80.28.

Resale by customer operators shall be at an average rate not to exceed the operator's average cost per kWh as billed by the Department and shall not exceed the proportion of the costs for which the tenant is responsible.

Submetering permitted under this Subsection H shall:

a) Be a permanent installation compliant with the National Electric Code (NEC), as well as State and local codes;

b) Be inspected and approved by the authority having jurisdiction;

c) Be listed for the purpose by a recognized testing laboratory;

d) Be compliant with American National Standards Institute (ANSI) C12.20 0.5 Accuracy Class;

e) Have records showing accuracy tests traceable to the National Institute of Standards and Technology (NIST); and

f) Have maintenance records for the life of the equipment.

All records shall be maintained in accordance with State regulations, and open to inspection and audit. On request, at no charge to the tenant, the customer operator shall provide accuracy tests traceable to NIST.

The Department shall charge the customer operator for all costs resulting from confirming compliance with the above requirements and investigating or correcting impermissible submetering.

***

K. Account Service Charge. An applicant or a customer shall be charged an account service charge for establishing an account. The charge shall be included in the initial billing to the first permanent occupant after the establishment of an account. The schedule of charges shall be established through the Administrative Code process. The account service charge shall not apply in the following cases:

1. For a name, address, or rate schedule change involving the same premises and account, or the addition of names to existing accounts;

2. For temporary service used for the purpose of new construction;

3. For meters or other charges added to an existing account;

4. For customers billed on Schedules REC, RES, RET, RLT, RLC and RLS;

5. For the transfer of responsibility for an existing account for service to an existing premises from the occupant of record to another party, and the assumption by that other party of the obligation to pay for the service, when no opening or closing of the account is involved;

6. For billing of vacancy current to property owners or authorized agent;

7. For a change in status between vacant and occupied.

***

Section 16. Subsection E of Section 21.49.110 of the Seattle Municipal Code is amended to read as follows:

21.49.110 Electric service connection provisions.

E. Prohibition of Master Metering. The Department shall not supply electricity for any new service to a duplex or multiple-dwelling building for the purpose of master metering the energy usage of the dwelling units, a central space heating system or HVAC system, or a central domestic water heating system. The Department shall not supply electricity for any larger service to an existing duplex or multiple-dwelling building for the purpose of master metering new central or individual space heating or HVAC systems. The existence of alternative laundry or dining arrangements for residents of multiple-dwelling buildings (such as central kitchens and dining rooms where residents can buy or eat their meals, or a central laundry), in addition to the availability of cooking and/or laundry facilities within the individual dwelling units, will not be considered grounds for an exemption from the prohibition of master metering.

This prohibition does not apply to multiple-dwelling buildings such as transitional housing, student dormitories and residences for religious orders, the elderly or the disabled, in which the residents do not live independently.

In situations with a mix of living accommodations where some residents live independently and some do not, those buildings or portions of buildings which provide non-transient independent dwelling units will not be eligible for master metering.

Accessory Housing Exception. An owner occupied dwelling unit also containing an additional "accessory housing unit" meeting all provisions as defined in Seattle Municipal Code Chapter 23.44 and approved by The City of Seattle shall be exempt from the master metering provisions of this chapter.

Other Exceptions: Exemption from the master metering prohibition for residential dwelling situations not covered in the provisions of this chapter may be granted on a case-by-case basis by the Department.

Section 17. Section 21.49.110 of the Seattle Municipal Code is amended to add a new subsection "X", to read as follows:

21.49.110 Electric service connection provisions.

X. Letter of Credit or Cash Deposit for New or Enlarged Services. Any applicant or customer that receives Department authorization for a new or enlarged service installation, the consumption of which would be billed under any of the Department's Large General Service or High Demand General Service rate schedules (Schedules LGD, LGS, LGT, LGD, HDC and HDT), as determined by the Department, shall be required to obtain a letter of credit in favor of the Department that is issued by a bank acceptable to the Department, or make a cash deposit with the Department, in the amount of the material and labor costs of the transformers and associated equipment (including network protectors) required for that installation before the Department approves the service for connection. The standards to be applied to the letter of credit will be set forth in a Departmental Policy and Procedure.

If the Department determines that, within 36 calendar months of the date of the Department's approval of the service for connection, the maximum kilowatt demand of the installation over six or more months of normal billings in a calendar year reached eighty (80) percent of the maximum kilowatt demand requested by the applicant or customer, the applicant or customer shall have no obligation to pay the material and labor costs of the transformers and associated equipment (including network protectors) for the installation. If an applicant or customer has deposited cash, the Department shall, within 30 days of such determination, refund the deposit with interest earned at the rate of interest on the City's cash pool for the period during which the deposit was held, to the applicant or customer's last known address. It shall be the applicant or customer's responsibility to notify the Department of the appropriate address. If an applicant or customer has obtained a letter of credit and the Department determines that the required demand has been met, the Department shall so notify the applicant or customer and, upon request, so notify the provider of the letter of credit.

If the Department determines that, within 36 calendar months of the date of the Department's approval of the service for connection, the required demand has not been met, the applicant or customer shall reimburse the Department for the material and labor costs of the transformers and associated equipment (including network protectors) required for that installation. If an applicant or customer has deposited cash, the Department shall retain the deposit for its uses and the applicant or customer shall have no further claim to such money. If an applicant or customer has obtained a letter of credit, the Department shall, within 30 days after such determination, bill the applicant or customer for the full amount of the letter of credit, at the address most recently provided to the Department. If such amount is not paid within 30 days after the date of the invoice, the Department may call on the letter of credit.

Section 18. This ordinance shall take effect and be in force on the later of January 1, 2007 or thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect on the later of January 1, 2007 or as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2006, and signed by me in open session in authentication of its passage this _____ day of __________, 2006. _________________________________ President __________of the City Council

Approved by me this ____ day of _________, 2006. _________________________________ Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2006. ____________________________________ City Clerk

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