Seattle City Light proposes back-to-back 9.5% rate hikes

Seattle City Light (SCL) customers are staring down steep rate hikes.

The utility is proposing back-to-back rate increases of 9.5% in 2027 and 2028, reflecting its efforts “to meet rising electricity demand, respond to climate impacts, and replace aging infrastructure.”

The utility said the average customer can expect to pay about $10 more per month each year, meaning customers will have $20 more on their bill if both increases take effect. The proposal is the centerpiece of a six-year strategic plan presented Wednesday to the Seattle City Council’s Parks and City Light Committee.

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

The utility cited aging infrastructure, inflation, tariffs, and supply chain disruptions as key cost drivers. From 2020 to 2025, wire and cable prices have risen 93%, transformers 23%, and electrical parts and materials more than 19%, according to SCL.

The utility also expects steady demand growth as 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,” SCL said.

What the rate hikes mean for data centers and 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 earlier this 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.

The Seattle City Council is expected to vote on the plan later this summer.

Read more of Aaron Granillo’s stories here.

Follow @https://twitter.com/aaronkirofm