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City Light unveils strategic plan and proposes 9.5% rate increase in 2027 and 2028; data center and RSA policy changes proposed
Summary
Seattle City Light presented a 2027'1032 strategic plan and a rate ordinance proposing 9.5% increases in 2027 and 2028 and policy changes including a new large-load (data center) rate, expanded Rate Stabilization Account and broader utility-discount eligibility; the committee heard the presentation and set a schedule for follow-up materials and votes.
City Light leaders presented the 2027'1032 strategic plan and associated rate ordinance to the committee on June 17, outlining a proposed rate path and several policy changes the utility says are needed to fund reliability and supply investments.
Interim CEO Rob Santoff and City Light staff framed the increase as a response to several drivers: growing electricity demand from electrifying buildings and transportation, higher costs for new clean resources, increasing maintenance needs on an aging distribution system, investment in new technology (including DERMS and batteries) and inflation that has pushed material costs up by nearly 40% over five years. "This rate increase represents a significant increase in Seattle's energy future," staff said.
City Light proposed a 9.5% retail rate increase in 2027 and another 9.5% in 2028, with projected increases in the 7% to 11% range through 2032. City Light's Review Panel chair Leo Lam read the panel's unanimous endorsement of the proposed plan after two years of review. The rate ordinance also proposes three policy changes:
- A new large-load rate class for customers such as data centers with new or expanded service above a 10 MVA threshold; under the proposal such customers would pay up front for grid investments required to serve them and accept penalties and curtailment obligations to contain risk to other customers.
- Expansion of the Rate Stabilization Account (RSA) to manage power-supply cost fluctuations and to increase target cash reserves from $100 million to $150 million (ceiling $200 million) with automatic surcharge thresholds to replenish the account.
- Expansion of eligibility for the Utility Discount Program by lowering the threshold from 70% to 60% of area median income, which City Light estimates would add about 31,000 eligible households.
Councilmembers asked technical questions about supply risk, the consequences of not adopting the rates (panel and staff warned of reliability and maintenance shortfalls and potential outages) and the moratorium/workgroup on new data-center connections. City Light established a schedule for written questions (due June 24), a memo response by June 30, an in-depth presentation July 1, and a final committee vote planned for July 15 and a full council vote thereafter.
