Seattle City Light rate hikes to be higher than forecast

It comes as no surprise that electricity bills continue to rise, and they are expected to go up even more than expected after Seattle City Light projected bigger price hikes than originally planned due to demand increases.

As part of its long-term strategic plan, City Light estimates customers will see a 5.4% cost increase in each of the next two years and a 5% increase each year after that through 2030.

“Nobody likes to pay more for something that they’re already getting,” Dawn Lindell, CEO and General Manager of City Light told The Seattle Times. “But for the utility to continue on its path of providing carbon-neutral power at a time of great uncertainty, it’s necessary.”

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The utility had previously anticipated a steady 3% rise through 2028. The upcoming year’s adjustment is expected to translate to roughly $5 more per month for the average user.

With the onset of the new year, numerous queries regarding the recent rate modifications have emerged. To address these, a compilation of frequently asked questions was prepared by the utility.

Why have rates increased, and when did this occur?

A 4.5% base rate hike, effective January 1, 2024, was sanctioned by the Seattle City Council in 2022. Concurrently, two additional surcharges were activated in 2023, coming into effect on the same date.

What prompted the 4.5% base rate hike?

The Seattle City Council’s approval of the 4.5% increase in 2022 was a response to escalating demands and costs, aligning with City Light’s Strategic Plan for 2023-2028.

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What are the two automatic surcharges, and their impact on rates?

The 1% Bonneville Power Authority (BPA) “passthrough” is an adjustment reflecting the BPA’s rate revisions and procurement volumes. It will remain in place until January 1, 2025. The 4% Rate Stabilization Act (RSA) surcharge, a temporary measure, was triggered following the RSA’s depletion in 2023.

When will the RSA surcharge be lifted?

The RSA surcharge will be rescinded once the RSA balance is restored to $100 million. Efforts are underway to replenish the RSA and eliminate the surcharge promptly.

How are residential and Utility Discount Program customers affected?

The rate increment signifies an approximate 10% surge for a standard residential customer, equating to an additional $9 monthly or $18 per billing cycle. Customers enrolled in the Utility Discount Program might anticipate a $4 monthly rise.

What assistance is available for bill payment?

City Light offers flexible payment arrangements and bill assistance initiatives for qualifying residential customers, including emergency aid and the Utility Discount Program. For further details, contact the Customer Service Center at (206) 684-3000.

How do City Light’s rates compare post-increase?

Even after the adjustments, City Light’s rates remain competitive, lower than many other cities across the country. The utility’s priority continues to be the provision of secure, dependable and eco-friendly electricity.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here.