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City administrator advises caution on Climate Commitment Act compliance; recommends monitoring linkage and allowance prices
Summary
City Administrator Chris Searcy presented data showing uncertainty about linkage outcomes and higher Washington auction prices (~$65/metric ton) versus California, projected possible customer charge increases tied to allowance prices, and recommended watching market developments before proposing local policy actions.
City Administrator Chris Searcy told the Uniontown council on May 11 that updated modeling of the Climate Commitment Acts (CCA) impacts suggests uncertainty about the near-term benefits of immediate local action for the citys natural gas utility and a case for monitoring market linkage to California and Quebec.
Searcy reviewed comparative data from California and Washington, noting the state auction settlement price in Washington was about $65 per metric ton while California auctions ran under $30. He said Californias program began about a decade earlier and that Washingtons market dynamics (including demand for allowances and limited reserve supply) have produced higher auction prices. "The last one was about $65 a metric ton," Searcy said.
Searcy showed modeled customer impacts across scenarios: under lower carbon prices the incremental charge per hundred cubic feet (roughly per therm) would remain modest; under higher-price paths the CCA component could grow quickly. He estimated that around 2026 the incremental charge could be around 35¢ compared with a current overall gas rate near $1.30 per therm under some scenarios. He also noted that some newer service connections carry higher CCA charges.
Searcy recommended the city "sit back and watch" pending clearer market linkage outcomes and additional state reporting on greenhouse-gas inventories, and said staff had no immediate policy proposal to bring forward. He also said the council would enter a brief executive session to discuss bid/auction strategy under the CCA.
Why it matters: Potential allowance prices and market linkage could materially affect natural-gas customer charges over the next several years; municipal utilities should assess options for customer incentives and procurement strategy before committing to local programs.
What happens next: Staff will monitor allowance prices, state rulemaking on reserve allowances and potential linkage decisions; the council held an executive session to discuss bidding strategy under RCW 42.30.110(1)(q).
