Council approves 9.5% Seattle City Light rate hikes, puts transit tax on November ballot

Seattle City Light customers are about to see their monthly electricity bills go up.

The Seattle City Council on Tuesday unanimously approved back-to-back rate increases of 9.5% in 2027 and 2028. Seattle City Light proposed the increases “to meet rising electricity demand, respond to climate impacts, and replace aging infrastructure.”

The average Seattle City Light customer can expect to pay about $10 more per month each year, meaning a total increase of $20 per month when both rate hikes take effect.

Seattle still among cheapest major cities for electricity

“However, even with these rate increases, Seattle still has one of the lowest electrical utility rates of any major city in the United States,” Seattle City Councilmember Debora Juarez said on Tuesday.

Seattle City Councilmember Bob Kettle, like the rest of the council, voted yes. However, he reminded his colleagues that Seattle residents are facing higher sales taxes, property taxes and now higher utility rates.

“This affordability challenge is real, and it’s gonna have other aspects to it too,” he said. “We need to be thoughtful in that bigger strategic picture too, across the entire enterprise, and I think that’s gonna be our challenge moving forward.”

Council also puts transit levy on November ballot

Also on Tuesday, the city council unanimously voted to put a transit levy on the November ballot. If approved, the city’s transit sales tax would rise from 0.15% to 0.3% for 10 years. The median household would pay an extra $29 a year.

The money would pay for more frequent bus service, safety upgrades for drivers and passengers, and free Orca cards for low-income households.

“Right now, our transit system is breaking records and delivering real value for our families,” Seattle Mayor Katie Wilson said. “I appreciate the city council’s partnership in crafting a package to voters offering a low-cost way to bring people more and better of the cheapest travel option available, public transit.

“It’s a package that respects people’s hard-earned dollars and brings 100,000 more bus trips to Seattle every year and funds 22,000 free transit passes for low-income households,” she continued. “Next week, we will gather in City Hall so I can sign the bill and send it to voters for their consideration this November.”

Why Seattle City Light says rates are rising

Seattle City Light cited aging infrastructure, inflation, tariffs, and supply chain disruptions as key cost drivers. From 2020 to 2025, wire and cable prices rose 93%, transformers 23%, and electrical parts and materials more than 19%, according to the utility.

“The energy industry is at a turning point, and so are we,” the utility said earlier this year when the proposal was released. “How we use energy, where it comes from, and what it costs is changing quickly.”

Seattle City Light also expects steady demand growth as Seattle residents adopt electric vehicles and switch from fossil-fuel heating to electric alternatives.

“To meet that demand reliably, we need to invest in significant new resources: wind, solar, batteries, firm capacity, and expanded transmission, as well as demand-side solutions,” the utility said.

New data center rates and expanded utility discounts for low-income customers

The rate ordinance includes a new rate class for large data centers after the Seattle City Council passed a moratorium on the centers last month. It would also expand income eligibility for the Utility Discount Program to an estimated 31,000 additional customers. Discount participants would see increases of about $4 per month each year.

“The investments outlined in our strategic plan are significant, and so is what they protect: a resilient grid, a sustainable energy future, and equitable access to affordable power for every customer we serve,” the utility said.

Contributing: Aaron Granillo

Frank Lenzi is the News Director for KIRO Newsradio. Read more of his stories here.

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