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2006 City Light
       rate review
 

Frequently Asked Questions


Why is City Light conducting a rate review?
City Light periodically reviews the rates it charges its customers to ensure that they are fair, equitable, adequate to meet its revenue requirements, and comply with the financial goals and policies established by the City Council.

When was the last time City Light conducted a rate review?
The last rate review that resulted in a comprehensive rate ordinance was conducted in 1999. Since that time, rates have been adjusted for various reasons such as increased power costs during the 2001 energy crisis, the second step in bringing network rates closer to full cost of service, and changes in energy rates that City Light pays to the Bonneville Power Administration.

When will the new rate structure be effective?
City Light anticipates that the new rate structure will be effective on January 1, 2007.

How far into the future will the new rates be applicable?
City Light anticipates that the new rates will be applicable through December 31, 2008, two full calendar years.

Is City Light going to review all of the different rates charged?
Yes. City Light will review and make adjustments to the rates as needed. This may include increasing or decreasing certain rates, creating new or dropping old rates.

What issues are being addressed by City Light in the 2006 rate review?
City Light has identified 11 issues. A description of those issues, along with other important rate information, can be found at Rate Review Discussion Topics.

Is City Light paying for construction or replacement of the Alaskan Way viaduct?
City Light is not paying for viaduct replacement. City Light does have transmission and distribution lines attached to the viaduct and buried along the right of way. The utility is responsible for relocation of lines in the right of way of a public transportation project. This would be true whether the viaduct is replaced by a tunnel, another aerial structure or a surface street. It is too early to say what the impact of relocation costs would be on City Light rates.

Who determines what rates City Light will charge its customers?
City Light, at the direction of the Mayor, prepares the rate review which includes customer input. The Mayor submits a rate proposal to the Council. Final rates are authorized by an ordinance that is voted on by City Council.

Does the Washington Utilities and Transportation Commission review or authorize the City Light rates?
No. City Light is a municipally-owned utility and is not regulated by Washington State. The Seattle City Council is City Light's regulatory authority.



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