Sustainability, City Light, Arts and Culture Committee 8/2/2024

Call to Order >>> GOOD MORNING, THE AUGUST 2 MEETING OF THE CITY LIGHT, ARTS AND CULTURE MEETING WILL COME TO ORDER. WILL THE COMMITTEE CLERK PLEASE CALL THE ROLL? >> VICE CHAIR MOORE . >> PRESENT. >> COUNCILMEMBER MORALES. COUNCILMEMBER SAKA. COUNCILMEMBER STRAUSS. >> PRESENT. >> CHAIRWOMAN. >> PRESENT. >> THERE ARE FOUR MEMBERS PRESENT. >> THANK YOU. IF THERE IS NO Public Comment OBJECTION, THE AGENDA WILL BE ADOPTED. HEARING NO OBJECTION THE AGENDA IS ADOPTED. WE WILL NOW OPEN THE HYBRID PUBLIC COMMENT PERIOD. ITEMS SHOULD RELATE TO ITEMS ON THE AGENDA. WE ARE HAVING A PUBLIC HEARING AS WELL TODAY, SO IF YOU WANTED TO SPEAK DURING THE PUBLIC COMMENT PERIOD, PLEASE DO NOT SPEAK ON MATTERS THAT YOU WOULD ADDRESS DURING THE PUBLIC HEARING. WE WILL COME BACK TO YOU FOR THE PUBLIC HEARING. SO PLEASE ADDRESS COMMENTS IN THE PUBLIC HEARING, IN THE PUBLIC HEARING, AND PUBLIC COMMENTS FOR PUBLIC COMMENTS. THANK YOU. HOW MANY SPEAKERS WE HAVE SIGNED UP TODAY? >> WE HAVE ONE IN PERSON AND THREE REMOTE. >> THANK YOU. SO EACH SPEAKER WILL HAVE TWO MINUTES. WE WILL START WITH THE IN-PERSON SPEAKERS FIRST. PUBLIC COMMENT WILL BE MODERATED IN THE FOLLOWING MANNER. THE PERIOD WILL BE 20 MINUTES. SPEAKERS WILL BE CALLED IN THE ORDER IN WHICH THEY REGISTERED. WE WILL OF COURSE START WITH IN PERSON AND THEN GO TO ONLINE SPEAKERS AND YOU WILL HEAR A TIME WITHIN 10 SECONDS LEFT OF YOUR TIME. SO AT THE TWO MINUTE MARK, YOUR MICS WILL BE MUTED. IF YOU DO NOT END YOUR COMMENTS WITHIN THE ALLOTTED TIME, WE WILL THEN MOVE ON TO THE NEXT SPEAKER. SO THE PUBLIC COMMENT PERIOD IS NOW OPEN. WE WILL BEGIN WITH THE FIRST SPEAKER ON THE LIST. >> PARKER DAWSON. >> TO HELP BETTER POSITION OUR BUILDERS TO PROVIDE FOR THE HEIGHTENED AND INCREASING DEMAND OF POWER IN OUR CITY. PARAMOUNT TO THIS WORK IS ENSURING THAT CITY LIGHT HAS THE PERSONNEL AND RESOURCES TO BUILD OUT THE INFRASTRUCTURE NECESSARY TO PROVIDE CLEAR AND PREDICTABLE SERVICE HOOKUP COSTS OR SERVICE CONNECTION COST FOR NEW HOUSEHOLDS. THIS GOAL IS COMPLEX AND IS MADE ALL THE MORE DIFFICULT DUE TO OUR RAPID RATE OF DECARBONIZING AND THE FIRM COMMITMENT TO REMAINING CARBON NEUTRAL. FIRST THE ABILITY TO BECOME CARBON NEUTRAL. THE LOAD BURDEN ON OUR AGED AND WORN INFRASTRUCTURE SHOWS. IT SHOWS IN ROUTINE OUTAGES FOR CUSTOMERS IN UNDERSERVED COMMUNITIES, AS WELL AS IN INCREASED SERVICE CONNECTION COSTS. THE RATE PATH REPRESENTS ONE OF THE BEST STRATEGIES WE CAN BE LEVERAGING TO HELP CREATE A RELIABLE FUNDING STREAM THAT HELPS MAINTAIN THAT 24/7 ACCESS TO SAFE, RELIABLE ENERGY. SO WE AT THE BUILDERS ASSOCIATION STRONGLY ENCOURAGE YOU ALL TO ASK GREAT QUESTIONS AND TO PASS THEIR STRATEGIC PLAN MOVING FORWARD. THANK YOU ALL FOR YOUR TIME. >> THANK YOU. >> OUR FIRST REMOTE SPEAKER IS SABRINA. SABRINA, PRESS STAR SIX. >> GOOD MORNING EVERYONE. THANK YOU FOR THIS OPPORTUNITY TO ENTHUSIASTICALLY TESTIFY IN SUPPORT OF SEATTLE CITY LIGHT'S STRATEGIC PLAN UPDATE. THIS PLAN BUILDS ON CITY LIGHT'S COMMITMENT TO REIT -- TO MEET REDUCTION GOALS. WE LOOK FORWARD TO DECARBONIZING OUR OPERATIONS INCLUDING CARGO AND CRUISE SHIP OPERATIONS. WE ARE JOINTLY EMBARKING ON A STRATEGY TO ELIMINATE EMISSIONS AT SEATTLE'S WORKING WATERFRONT. THE GOAL IS TO PUT IN PLACE CLEAN, INDUSTRIES TO TRANSITION AWAY FROM FOSSIL FUEL. WORKING WITH SEATTLE CITY LIGHT WE ARE COORDINATING INFRASTRUCTURE IMPROVEMENTS -- AND IMPLEMENTATION OF STRATEGIES FOR RESILIENT AND RELIABLE ENERGY FOR THE PORT OF SEATTLE AND FACILITIES AND MARITIME INDUSTRIES IN THE SEATTLE HARBOR. THIS STRATEGIC PLAN REFLECTS SEATTLE CITY LIGHT'S COMMITMENT TO DELIVER ON THEIR PARTNERSHIP WITH US AND OUR SHARED INTEREST WITH ZERO EMISSIONS FOR SEATTLE. THANK YOU SO MUCH FOR THIS GREAT WORK YOU ARE DOING. THANK YOU. >> THANK YOU. STEVEN KOVACH, PLEASE PRESS STAR SIX. >> HI, THIS IS STEVEN KOVACH. I AM WITH THE INTERNATIONAL BROTHERHOOD -- I AM A BUSINESS REPRESENTATIVE AND REPRESENT THE WORKERS AT SEATTLE CITY LIGHT AND I WANT TO SPEAK IN FAVOR OF CITY LIGHT STRATEGIC LAN -- STRATEGIC PLAN AND ENCOURAGE THE COMMITTEE TO PASS IT TO THE FULL COUNCIL. THIS PLAN INCLUDES THE RATE STRUCTURE CITY LIGHTS NEED TO CONTINUE TO REBUILD AGING INFRASTRUCTURE AND BUILD THE INFRASTRUCTURE NEEDED FOR GRID RELIABILITY. THIS ALSO GIVES CITY LIGHT THE ABILITY TO RECRUIT AND RETAIN THE MOST QUALIFIED ELECTRICAL WORKERS AND REBUILD THE CURRENT STAFF TO LEVELS NEEDED TO ENSURE THE INFRASTRUCTURE WORK CAN BE COMPLETED. BY BEING ABLE TO REBUILD IT WILL ALLOW CITY LIGHT TO EXPAND ITS APPRENTICESHIP PROGRAM, THUS ENSURING CITY LIGHT HAS THE WORKERS NEEDED IN THE FUTURE. THE CONTRACT WITH THE IBEW, WHICH WHEN IMPLEMENTED WILL ALLOW THEM TO ADVERTISE FOR WORKERS WHO LEFT FOR BETTER OPPORTUNITIES. THE BEST OPPORTUNITY NOW IS TO WORK FOR SEATTLE CITY LIGHT. WE WILL PARTNER TO SEEK OUT AND ENCOURAGE NEW WORKERS TO APPLY. THERE ARE SEVERAL OPPORTUNITIES FOR US TO DO THIS. SOME OF THE BIGGEST ARE THE ANNUAL LINE WORKER RODEOS THROUGHOUT THE NORTHWEST. WE WOULD LOVE TO BE ABLE TO HAVE BANNERS ADVERTISING CITY LIGHT'S WAGES AND BENEFITS AND ENCOURAGE THE PEOPLE ATTENDING THESE RODEOS TO APPLY. ALMOST ALL OF THE ATTENDEES -- I WANT TO THANK YOU FOR YOUR TIME AND AGAIN PLEASE PASS IT THROUGH THE COMMITTEE AND TO THE FULL COUNCIL. THANK YOU. >> THANK YOU. NANCY HIRSCH, PLEASE PRESS STAR SIX. >> GOOD MORNING. THANK YOU CHAIR WOO, MEMBERS OF THE COMMUNITY. MY NAME IS NANCY HIRSCH WITH THE NORTHWEST ENERGY COALITION, A NONPROFIT BRINGING AFFORDABLE AND ACCESSIBLE ENERGY. WE SUPPORT THE NEW RATE PLAN. WE ALSO NOTE THAT THE IMPACT ON RESIDENTS AND CUSTOMERS IS LESS THAN THE AVERAGE. THIS IS VERY IMPORTANT. AS CITY LIGHT'S PROGRAMS TARGETED TO LOW INCOME ARE CRITICAL TO MAINTAINING AFFORDABILITY. UTILITIES ACROSS THE STATE AND THE REGION AND THE COUNTRY ARE FACING SIMILAR RATE PRESSURES AS THEY MAKE IMPORTANT INVESTMENTS TO MODERNIZE THE GRID, DECARBONIZE THE SYSTEM AND BRING ON RENEWABLE ENERGY. ENERGY-EFFICIENT RESOURCES TO MEET SIGNIFICANT, GROWING POWER DEMANDS. CITY LIGHT INVESTS IN THE SYSTEM OF THE FUTURE WHICH INCLUDES COMMUNITY-BASED PROJECTS AND TECHNOLOGY. SOLAR RESOURCES AND A STRONG STRATEGY FOR SALMON IMPACTED BY THE HYDROELECTRIC PROJECT. A KEY STRATEGY FOR CITY LIGHT WILL BE TO MANAGE ELECTRICITY DEMAND TO REDUCE PEAK ENERGY USE BY CUSTOMERS DURING EXTREME WEATHER EVENTS. THIS TAKES INVESTMENT IN DISTRIBUTED SOLAR, BATTERY TECHNOLOGIES. BUT THEY WILL BE LOWER COST IN PROVIDING POWER TO MEET PEAK DEMANDS WHEN PRICES ARE SPIKING. THIS IS KEY TO BUILDING COMMUNITY RESILIENCE. WE ARE IN THE MIDST CHALLENGING TIME. WE ARE EXCITED ABOUT THE STRATEGY GOING FORWARD AND URGE ADOPTION. THANK YOU. >> THANK YOU AND THAT CONCLUDES OUR LIST OF PUBLIC COMMENTERS. >> THANK YOU. AS A REMINDER MEMBERS OF THE PUBLIC ARE ENCOURAGED TO SUBMIT PUBLIC COMMENT ON THE CARDS AT THE PODIUM OR EMAIL THE COUNCIL. Appt 02922: Appointment of Eric Chan as member, International Special Review District Board THERE ARE NO ADDITIONAL REGISTERED SPEAKERS AND WE WILL NOW PROCEED TO OUR ITEMS OF BUSINESS. WILL THE CLERK PLEASE READ THE FIRST ITEM INTO THE RECORD? >> AGENDA ITEM 1, APPOINTMENT OF ERIC CHAN AS MEMBER OF THE INTERNATIONAL SPECIAL REVIEW DISTRICT BOARD FOR A TERM TO NOVEMBER 30, 2025, FOR BRIEFING, DISCUSSION AND POSSIBLE VOTE. >> THANK YOU. PRESENTERS PLEASE COME TO THE TABLE AND ONCE READY, PLEASE INTRODUCE YOURSELVES. >> THIS ISN'T FOR ME, RIGHT? OKAY. YOU GO FIRST. >> GOOD MORNING. MY NAME IS MINH CHAU LE FROM THE HISTORIC PRESERVATION PROGRAM. I AM HERE FILLING IN FOR WHO WOULD NORMALLY BE STAFFING THIS PROCEEDING AND, ERIC, WOULD YOU LIKE TO INTRODUCE YOURSELF? >> HELLO, THANK YOU, COUNCILMEMBERS AND THANK YOU FOR HAVING ME HERE, ALSO. THE BACKGROUND ABOUT ME AS MY FAMILY OWNS SHEA GARDEN RESTAURANT. WE HAVE BEEN LOCATED IN THE INTERNATIONAL DISTRICT FOR 21 YEARS, SO I HAVE BEEN THERE SINCE I WAS 10 YEARS OLD. PRETTY MUCH ALWAYS THERE EVERY DAY. SO I HAVE BEEN IN THE COMMUNITY FOR 21 YEARS AS WELL. I'VE SEEN IT GROW. I WOULD LIKE TO SEE IT PRESERVED, THE HISTORICAL CONTEXT. ESPECIALLY IN THE HISTORICAL DISTRICT, LOTS OF DIVERSITY AND HISTORICAL LANDMARK BUILDINGS, TOO. I THINK THOSE ARE REALLY IMPORTANT. MY RESTAURANT IS LOCATED IN A HISTORICAL LANDMARK, ALSO. WE'VE ALSO HAD CUSTOMERS FOR OVER 21 YEARS IN THE COMMUNITY, SO I FEEL LIKE WE HAVE A VOICE FOR SOME OF THE FOLKS WHO DON'T SPEAK UP. WITH THEY COME TO OUR RESTAURANT PRETTY MUCH EVERY DAY AND LIKE I SAID WE HAVE BEEN A COMMUNITY FOR 21 YEARS AND HOPEFULLY WHAT I BRING TO THE TABLE IS PRESERVING THE HISTORICAL CONTEXT -- THANK YOU. >> CHAIRPERSON, WOULD IT BE HELPFUL AT THIS TIME TO PROVIDE A LITTLE BIT OF BACKGROUND ABOUT THE DISTRICT? >> THAT WOULD BE AMAZING, THANK YOU. >> OKAY, THANK YOU. AND AGAIN, REBECCA WHO WOULD NORMALLY BE STAFFING SENDS HER GREETINGS TO CHAIRPERSON WOO AND THE COMMUNITY. SO THE BOARD WAS ESTABLISHED IN THE EARLY 1970S AND AFTER 50 YEARS IT IS STILL GOING STRONG. THE CORE RESPONSIBILITY OF THE BOARD IS TO EVALUATE AND MAKE DECISIONS ABOUT PROPOSED CHANGES. BECAUSE THE ISRD IS RECOGNIZED AS BEING AN EXCEPTIONAL PLACE AND BECAUSE THE ISRD HOLDS VALUE IN THE HEARTS OF COMMUNITY MEMBERS, THE BOARD'S WORK AND ITS DECISIONS ARE VERY IMPORTANT AND VERY IMPACTFUL. THE BOARD CONSISTS OF SEVEN MEMBERS IN TOTAL, TWO OF WHOM ARE CONFIRMED BY COUNCIL AND THE REMAINING FIVE ARE ELECTED IN A COMMUNITY ELECTION PROCESS THAT IS HELD ANNUALLY. IT IS ONE OF VERY FEW BOARDS AND COMMISSIONS THROUGHOUT THE CITY OF SEATTLE WHERE THE PUBLIC HAS A DIRECT ROLE IN DECIDING WHO IT'S BOARD MEMBERS ARE GOING TO BE. THEY NOMINATE AND VOTE FOR THE BOARD MEMBERS. THE COMPOSITION OF THE BOARD IS VARIED AND INCLUDES PEOPLE WITH ARCHITECTURAL BACKGROUNDS, PROPERTY OWNERS, BUSINESS OWNERS, RESIDENTS, DISTRICT EMPLOYEES, ADVOCATES, AND MORE. SO IN OTHER WORDS IT IS A GROUP OF PEOPLE WITH A GREAT DEAL OF COLLECTIVE WISDOM THAT IS WELL POISED TO BE MAKING THESE IMPORTANT DECISIONS ON BEHALF OF THE CITY FOR THEIR COMMUNITY. THE LAST THING I WILL SAY ABOUT THE BOARD AS YOU MAY HAVE NOTICED A SLIGHT IRREGULARITY IN OUR PACKETS TODAY. ERIC CHAN IS BEING CONSIDERED FOR POSITION NUMBER 1 AND NORMALLY THAT WOULD BE A COMMUNITY ELECTED POSITION. HOWEVER, THIS YEAR THAT POSITION UNEXPECTEDLY BECAME VACANT DUE TO A RESIGNATION AND THEREFORE PER THE ISRD BYLAWS IT IS BEING FILLED IN A DIFFERENT MANNER, THROUGH MAYORAL APPOINTMENT AND CONFIRMATION IN ACCORDANCE WITH THE BYLAWS. >> THANK YOU. COLLEAGUES, ANY QUESTIONS OR COMMENTS? COUNCILMEMBER STRAUSS. >> THANK YOU FOR YOUR VOLUNTEER SERVICE. I WILL HAVE THREE QUESTIONS FOR YOU AND I START WITH THE STATEMENT. AS A REPEAT CUSTOMER OF YOUR RESTAURANT I AM A HAPPY CUSTOMER EXCEPT WHEN WE CAN'T GET A SEAT BECAUSE YOU ARE TOO POPULAR. SO, KEEP UP THE GOOD WORK. THANK YOU FOR YOUR COMMITMENT TO OUR COMMUNITY. WHEN JOINING THE ISRD, FROM YOUR PERSPECTIVE WHAT YOU SEE THAT IS GOING WELL, WHAT MIGHT NEED TO IMPROVE AND WHAT ARE YOU LOOKING TO ACHIEVE OR ASSIST WITH? IT SEEMS LIKE YOU HAVE PROBABLY HAD SOME INTERACTION WITH THE REVIEW BOARD BEFORE. >> THANK YOU SO MUCH, COUNCILMEMBER STRAUSS. I HAD MY FIRST MEETING LAST WEEKEND I OBSERVED HOW IT WENT. OBVIOUSLY MY MAIN GOAL IS PRESERVATION. MAINTAINING CHINATOWN-INTERNATI ONAL DISTRICT. MAINTAINING WHAT IT LOOKS LIKE ON THE OUTSIDE. I KNOW THERE ARE LOTS OF NEW BUILDINGS BEING BUILT AROUND US, BUT WE ARE NOT GOING TO FALTER. I WOULD LIKE TO PRESERVE THE CULTURE THERE. IN LOT OF ELDERS IN THE COMMUNITY. WITH NEW THINGS BEING BUILT UP WE WERE TALKING ABOUT NEW BUSINESSES AND HOW IT WOULD AFFECT THE COMMUNITY. I THINK PUBLIC SAFETY IS ALSO A BIG ISSUE FOR US IN THE INTERNATIONAL DISTRICT. I THINK THAT IS SOMETHING THAT IS BEING LOOKED AT RIGHT NOW AND I REALLY APPRECIATE EVERYONE LOOKING INTO THAT AS WELL. I THINK PRESERVATION OF THE CULTURE THERE IS IMPORTANT AND AM HOPING TO KEEP OTHER BUSINESSES AROUND, MAKING THEM FEEL SAFE AND WELCOME, BECAUSE LIKE I SAID WE HAVE BEEN AROUND FOR 21 YEARS. HOPEFULLY FOR ANOTHER 21 MORE YEARS AND HOPEFULLY MY COLLEAGUES AROUND US STAY FOR AS LONG, TOO. >> I SHARE YOUR HOPE TO BE AROUND FOR AT LEAST ANOTHER 21 YEARS AND IF THE ONLY PROBLEM YOU HAVE IS THAT YOU ARE POPULAR, IT IS A GOOD PROBLEM TO HAVE. MINH CHAU LE, I SEEM TO SEE YOU EVERYWHERE. THANK YOU FOR WHAT YOU DO AND ALL THE DIFFERENT BOARDS. IT IS ALWAYS NICE TO SEE YOU FROM DISTRICT SIX POINT >> THANK YOU. THANK YOU FOR YOUR SERVICE AND WILLINGNESS TO CONTRIBUTE. AS WE ALL KNOW, CHINATOWN-INTERNATIONAL DISTRICT IS ON THE LIST OF THE MOST ENDANGERED NEIGHBORHOODS. AND IT IS DEFINITELY A DUTY AND A LEFT TO HAVE YOU ON THE BOARD. YOU CONTINUE THE LEGACY OF YOUR FAMILY BUSINESS IN THE CHINATOWN-INTERNATIONAL DISTRICT AND ALSO THE PRESERVATION AND CULTURAL ASPECTS OF THE DISTRICT'S LEGACY, AS WELL. SO I AM VERY EXCITED TO SEE YOU IN THIS ROLE. I'VE KNOWN YOU FOR A LONG TIME AND SO, EXCITED IN ALL THAT YOU HAVE DONE AND WILL CONTINUE TO DO. SO WITH THAT I MOVE THAT THE COMMITTEE RECOMMEND CONFIRMATION OF THE APPOINTMENT. DO I HAVE A SECOND? >> SECOND. >> WILL THE CLERK PLEASE CALL THE ROLL ON THE CONFIRMATION OF THE APPOINTMENT? >> I WOULD LIKE TO ACKNOWLEDGE THAT COUNCILMEMBER SAKA HAS JOINED US. >> VICE CHAIR MOORE. >> 1047 POINT >> COUNCILMEMBER SAKA. R MORALE >> COUNCILMEMBER STRAUSS. >> YES. >> CHAIR WOO. >> YES. >> THE MOTION CARRIES. THANK YOU FOR BEING HERE TODAY AND SHARING YOUR STORY. SO WE WILL NOW MOVE ON TO OUR NEXT ITEM OF BUSINESS. WILL THE CLERK PLEASE READ OUR SECOND ITEM INTO THE RECORD. >> AGENDA ITEM 2, RESOLUTION 32138, A RESOLUTION RELATED TO Res 32138: A resolution relating to the City Light Department THE CITY LIGHT DEPARTMENT, ACKNOWLEDGING AND APPROVING THE 2024 INTEGRATED RESOURCE PLAN PROGRESS REPORT AS CONFORMING WITH THE PUBLIC POLICY OBJECTIVES OF THE CITY OF SEATTLE AND THE REQUIREMENTS OF THE STATE OF WASHINGTON AND APPROVING THE PROGRESS REPORT FOR THE BIENNIUM SEPTEMBER 2024 THROUGH AUGUST 2026. >> SO AS PRESIDING OFFICER I AM NOW OPENING THE PUBLIC HEARING ON RESOLUTION 32138. CLERK DO WE HAVE ANY SPEAKERS SIGNED UP FOR THE PUBLIC HEARING? >> THERE WAS ONE, BUT THEY SPOKE DURING GENERAL PUBLIC COMMENTS AND THEY ARE NOT PRESENT. >> BEING THERE IS NOT A MEMBER OF THE PUBLIC REGISTERED OR PRESENT FOR THIS PUBLIC HEARING ON RESOLUTION 32138, THIS PUBLIC HEARING IS NOW CLOSED. THIS WAS THE SECOND PUBLIC HEARING ON THIS. THANK YOU TO THE PUBLIC WHO REACHED OUT TO OUR OFFICE WITH YOUR FEEDBACK AND FOR SPEAKING EARLIER IN THE PUBLIC COMMENT PERIOD. I SEE THE COORDINATORS AND PRESENTERS ARE AT THE COMMUNITY TABLE. PLEASE INTRODUCE YOURSELVES AND BEGIN. >> THANK YOU. GOOD MORNING. CHAIR WOO AND COUNCILMEMBERS, WE ARE HAPPY TO BE BEFORE YOU TODAY TO BRING FORWARD -- OR BE HERE TO ANSWER QUESTIONS I GUESS -- ABOUT THE 2024 RESOURCES PLAN. MY NAME IS DAWN LINDELL AND I AM GENERAL MANAGER AND CEO FOR SEATTLE CITY LIGHT. >> I AM PAUL DOCKERY, I USE HE/HIM PRONOUNS AND IM WITH CITY LIGHT. >> MY NAME IS SIOBHAN DOHERTY -- >> AND I BELIEVE WE ARE HERE TO ANSWER QUESTIONS. IF THERE ARE ANY QUESTIONS WE ARE HAPPY TO ADDRESS AND ANSWER. >> THANK YOU FOR BEING HERE AGAIN TODAY. THANK YOU FOR THE TIME YOU SPENT ANSWERING ALL OF OUR QUESTIONS AND BRIEFING ALL OF US SEPARATELY AND ALSO THANK YOU FOR SPENDING THE TIME ANSWERING ALL OF MY QUESTIONS. WE CAN SEE THE MEMOS FROM SEATTLE CITY LIGHT ON-AIR AGENDA. SO I HAVE A COUPLE OF QUESTIONS, BUT WANTED TO QUICKLY ASK YOU, CAN YOU EXPLAIN THE METHODOLOGY USED TO FORECAST FUTURE ELECTRICITY DEMAND AND HOW IT ACCOUNTS FOR VARIOUS ECONOMIC SCENARIOS? WALK US THROUGH SOME OF THE CONSIDERATIONS. >> YEAH, ABSOLUTELY. THANK YOU FOR THE QUESTIONS AND WE RESPONDED IN THE MEMO. WE PROVIDED A HIGH LEVEL SUMMARY OF OUR METHODOLOGY FOR END-USE LOAD FORECASTING AND CAN ANSWER FOLLOW-UP QUESTIONS. AS I MENTIONED WE USE A MODERN FORECASTING TECHNIQUE AND THAT EVALUATES OUR CONSUMPTION BASED ON DIFFERENT SECTORS LIKE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL AS WELL AS SEGMENTS LIKE SINGLE-FAMILY HOMES, MULTIFAMILY HOMES OR INDUSTRIAL SPACES AND END USES LIKE HEATING AND COOLING LOADS AND DIFFERENT EQUIPMENT. WE USE THAT TO INCORPORATE DIFFERENT PROJECTIONS FOR ECONOMIC INDICATIONS AS WELL AS INCORPORATING MODERN CLIMATE SCIENCE INTO OUR EXPECTATION OF TEMPERATURE CHANGES OVER THE COURSE OF THE STUDY PERIOD. WE USE 30 YEARS OF WEATHER SCENARIOS THAT HAVE BEEN ADJUSTED FOR CLIMATE CHANGE TO MODEL HOW HER LOAD CAN CHANGE OVER THE NEXT 20 YEARS OF THE STUDY PERIOD. IN THIS 2024 PROGRESS REPORT THE LARGEST IMPACT TO OUR LOAD FORECAST SINCE THE 2022 INTEGRATED RESOURCE PLAN WAS ADDITIONAL ELECTRIFICATION BASED ON THE ADOPTION OF NEW POLICIES BY THE CITY AND BY THE FEDERAL GOVERNMENT'S INCENTIVES FOR ADDITIONAL BUILDING ELECTRIFICATION AND TRANSPORTATION ELECTRIFICATION. SO IN THAT WE DID SEE A SIGNIFICANT PEAK LOAD INCREASE BETWEEN NOW AND THE END OF THE STUDY PERIOD IN 2040 AS WELL AS ADDITIONAL INCREASES. BUILDING ELECTRIFICATION, TRANSPORTATION ELECTRIFICATION AS WELL AS POPULATION TRENDS FOR THE CITY. YOU HAVE ADDITIONAL FOLLOW-UP QUESTIONS I CAN ANSWER? >> THANK YOU FOR THAT. FOR CLARIFICATION THIS IS A PROGRESS REPORT OF CURRENT ACQUISITIONS. THIS DOES NOT INCLUDE FUTURE ACQUISITIONS, THE ACQUISITION PLAN FOR FUNDING TO MEET THE DEMAND THAT WAS FORECASTED? >> THAT IS CORRECT AND GOOD ADDITIONAL FRAMING ON WHAT ARE 2024 PROGRESS REPORT IS. IT IS A STUDY OF THE RESOURCES NECESSARY TO MEET THE EXPECTED LOAD GROWTH IN THE UTILITY. IT IS NOT APPROPRIATIONS. NOT A LIST OF THINGS WE WILL ACQUIRE OR FUNDS. IT IS REALLY MEANT TO BE A STUDY OF THE TYPES OF RESOURCES WE EXPECT TO NEED OVER THE PERIOD. ANY ACQUISITIONS OR CONTRACTS FOR RESOURCES WOULD BE A SEPARATE AND RELATED UTILITY FUNCTION AND WOULD COME BACK BEFORE THE COUNCIL AT THAT TIME. >> THANK YOU. SO WHAT METRICS AND BENCHMARKS WILL BE USED TO MEASURE THE SUCCESS AND COST-EFFECTIVENESS OF THE PROPOSED RESOURCE PLAN OVER TIME? >> ONE OF THE IMPORTANT COMPONENTS OF THE 2024 PROGRESS REPORT IS AN UPDATE ON THE 2022 INTEGRATED RESOURCE PLAN AND WHEN WE DEVELOPED THESE PLANS WE ARE LOOKING AT METRICS AROUND HOW RELIABLE OUR POWER SUPPLY IS TO SUPPORT THE GROWTH OF THE UTILITY AND AS I MENTIONED BEFORE, SINCE THIS IS BUDGET, THESE RESOURCES WOULD BE ACQUIRED THROUGH A SEPARATE PROCESS. THOSE METRICS FOR HOW EFFECTIVE WE ARE AT ACQUIRING RESOURCES WOULD BE A SEPARATE UTILITY FUNCTION. >> I WOULD ADD THAT THE IRP IS UP DATED EVERY FOUR YEARS -- SO WE WILL IMMEDIATELY START OUR NEXT IRP AND AS WE ACQUIRE RESOURCES THAT WILL GO INTO THOSE PLAN UPDATES, SO YOU WILL SEE HOW WE ARE TRACKING TOWARD CHANGES IN LOAD AND THE LOAD CHANGES WE ARE SEEING. >> THANK YOU. COLLEAGUES, ANY QUESTIONS OR COMMENTS? COUNCILMEMBER 1027 POINT >> I AM HOGGING THE MIC OVER HERE, BUT I AM GOING TO SPEAK TO A COUPLE OF THE SLIDES HERE. JUST BY PULLING THEM UP -- >> I HAVE IT IN FRONT OF ME IF YOU TELL ME WHAT SIDE YOU WANT TO GO TO. >> S, LET'S START WITH SLIDE FIVE. I HELD QUESTIONS OF THE LAST MEETING BECAUSE WE WERE SHORT ON TIME. HERE THEY ARE. SO LOOKING AT WHAT WAS SAID ABOUT EVERY FOUR YEARS WE HAVE THE PLAN AND EVERY TWO YEARS THE UPDATE. WHAT I APPRECIATE ABOUT THIS IS WE HAVE SUCH A CHANGING CLIMATE THAT IT IS MY UNDERSTANDING WE ARE USING 30 YEARS OF WEATHER DATA. IS THAT CORRECT? >> THAT'S CORRECT. >> AND HOW ARE YOU I GUESS ADDRESSING CLIMATE CHANGE? HOW ARE YOU FACTORING THAT IN THE MODEL? IT WAS THE WARMEST JULY WE HAD OR SOMETHING TO THAT DEGREE. EVERY YEAR IT FEELS LIKE IT IS THE WARMEST, THE MOST OF SOMETHING REGARDING THE CLIMATE. HOW IS THAT FACTORING IN YOUR PROJECTION? >> THANK YOU FOR THE QUESTION, COUNCILMEMBER STRAUSS. WE DO INCORPORATE SCIENCE TO THE FUTURE LOADS. TO DO THAT WE USE GLOBAL CLIMATE MODELS. IMPORTANTLY, OUR UTILIZATION OF THE END-USE LOAD FORECAST ALLOWS US TO INCORPORATE INTERACTION EFFECTS OF EXTREME HEAT EVENTS AND COLD EVENTS AND THE ADOPTION OF COOLING AND AIR COOLING AND THE IMPACT ON PEAK LOADS. 30 YEARS OF WEATHER DATA OVER THAT 20 YEAR PERIOD BASED ON MODERN SCIENCE TO MAKE SURE WE ARE ADDRESSING HOW THOSE EXTREME TEMPERATURES WILL IMPACT OUR LOADS. IMPORTANTLY ONE OF THE THINGS WE CONTINUE TO WORK ON AND WORK WITH THE UNIVERSITY OF WASHINGTON CLIMATE IMPACT GROUP TO IMPROVE THE DOWNSCALING OF MODELS USED IN OUR FORECASTING. RIGHT NOW WE DO NOT INCORPORATE THE IMPACT OF CLIMATE CHANGE ON STREAM FLOWS, BECAUSE WE HAVE NOT GOTTEN GOOD DATA SETS TO THE LEVEL NECESSARY FOR HYDRO MODELING, BUT WE ARE WORKING WITH THE UNIVERSITY OF WASHINGTON TO DO THAT. WE HOPE TO HAVE THAT IN PLACE FOR THE NEXT PROGRESS REPORT AND AS YOU MENTIONED, TO ADDRESS THESE REPORTS EVERY TWO YEARS. AS WE LEARN MORE ABOUT CLIMATE CHANGE AND IMPACTS, WE NEED TO KEEP UPDATING OUR UNDERSTANDING. I WOULD ALSO ADD THAT WE HAVE BEEN INCORPORATING CLIMATE CHANGE INTO OUR INTEGRATED RESOURCE PLAN SINCE 2016. >> THANK YOU, BECAUSE I KNOW FOR OUR UTILITY IT IS BOTH THE GENERATION AND THE USAGE. SLIDE SEVEN, LOOKING AT THE LOAD FORECAST, CAN YOU CONFIRM FOR ME THE BROWN LINE IS WHAT YOU PREDICTED IN 2020 AND THE RED LINE IS WHAT YOU PREDICTED TODAY, IS THAT ACCURATE? >> CORRECT. SINCE THE LOAD FORECAST WE USED IN THE 2022 IRP WAS ACTUALLY THE 2020 LOAD FORECAST. THIS TIME WE ARE USING THE 2023 LOAD OR GUEST, WHICH IS THE MOST RECENT FOR THIS PROGRESS REPORT. >> KIND OF THE CRAFTS CAN FEEL SKEWED BECAUSE OF THE UNITS, BUT THIS LOOKS LIKE A LARGE CHANGE IN THE PAST THREE YEARS. IS THAT DRIVEN BY CLIMATE CHANGE? IS THAT DRIVEN BY BUILDINGS ELECTRIFYING OR TRANSPORTATION? IN THE LAST THREE YEARS AND THE PUSH FOR EV'S, WE DID NOT HAVE AN ELECTRIC FORD F-150 THREE YEARS AGO, SO HOW DO THESE NUMBERS CHANGE? >> WE GO INTO MORE DETAIL IN THE PROGRESS REPORT, BUT THE LARGEST DRIVERS ARE BUILT -- ARE BUILDING ELECTRIFICATION AND TRANSPORTATION ELECTRIFICATION. AS THE ADOPTION OF NEW TECHNOLOGIES FOR END-USE ELECTRIC SERVICE. >> AND BUILDING ELECTRIFICATION TRIPLED IN THIS TIMEFRAME AND THE LOAD FOR ELECTRIFICATION, I SHOULD SPECIFY THAT. THE LOAD FOR ELECTRIFICATION TRIPLED AND THE LOAD FOR TRANSPORTATION ELECTRIFICATION GREW 70%. THESE ARE SIGNIFICANT AND AS WE CONTINUE TO LOOK AT THE LAST FIVE YEARS OUT OF THE 25, WHICH OF COURSE IN 2022 WAS ABOUT TWO YEARS. THE LAST 25 OR 30 YEARS. WE ARE SEEING THAT IMPACT. SIGNIFICANTLY MORE WEATHER EVENTS. SO AS WE LOOK AT OUR INTEGRATED RESOURCES PLAN GOING FORWARD, AS PAUL MENTIONED, WE WILL DEFINITELY BE INCORPORATING SOME SORT OF AWAIT ON THE MORE CURRENT NUMBERS TO ACCOUNT FOR THAT. >> THANK YOU AND LUCKILY WE DON'T HAVE TO MEET THESE ANNUAL PEAKS TODAY. WE ARE LOOKING OUT FOR 10 YEARS FROM NOW OR 16 YEARS FROM NOW. AND AGAIN, JUST NOTING THAT THESE ARE THE PEAKS. THESE ARE NOT THE CONSTANCE. IF WE COULD MOVE ON TO SLIDE EIGHT, THOSE ARE OUR NEEDS. HOW DO WE GET THERE? SOMETHING I SEE HERE THAT WAS NOT IDENTIFIED BEFORE, I NOTICED THE ENHANCED GEOTHERMAL. >> CAN YOU SPEAK MORE INTO YOUR MICROPHONE? THANK YOU. >> IT IS ONE OF MY FAVORITE THINGS TO SAY, SO I APPRECIATE YOU HOLDING ME TO IT AS WELL. SO WHEN I AM LOOKING AT SLIDE EIGHT, WE JUST TALKED ABOUT OUR NEEDS FOR THE PEAK. THIS IS ALSO VERY IMPORTANT. I DON'T KNOW IF THERE IS ANOTHER SIDE THAT GETS INTO THE YEAR-BY-YEAR. HOW DOES GEOTHERMAL ENTER THIS CONVERSATION? I KNOW WE HAVE VOLCANOES NEARBY AND I AM ASSUMING IT IS DIFFICULT TO TRANSFER THAT ENERGY FOR MOUNT RAINIER OVER HERE. CAN YOU TALK ABOUT THAT. >> ABSOLUTELY. ONE OF THE CONCLUSIONS OF THIS PROGRESS REPORT IS THE NEED TO LOOK AND STUDY MORE RESOURCES LIKE THIS ENHANCED GEOTHERMAL RESOURCE AND WE MODELED THIS USING ANALYSIS FROM THE NATIONAL RENEWABLE ENERGY LABORATORIES AND SCENARIOS FOR NEW GEOTHERMAL TECHNOLOGIES. THESE ARE ADVANCED, ENHANCED GEOTHERMAL TECHNOLOGIES, WHICH ARE NEW TECHNIQUES FOR EXTRACTING GEOTHERMAL RESOURCES THAT ARE NOT AS DEPENDENT ON THE EXISTENCE OF ALL THREE COMPONENTS OF GEOTHERMAL. THE HEAT, THE STEAM, AND THE LOCATION. SO THIS IS FAIRLY, FRANKLY, NAIVE MODELING OF THIS RESOURCE. WE BELIEVE WE NEED TO SPEND MORE TIME NOT ONLY EVALUATING THIS RESOURCE, BUT ADDITIONAL TYPES OF RESOURCES LIKE THIS THAT CAN RELIABLY MEET LOAD SERVICE NEEDS. ONE OF THE VALUES IN THIS RESOURCE IN THE ENVIRONMENT WE ARE FACING IS THE HIGH CAPACITY FACTORS, UTILIZING TRANSMISSION RESOURCES MORE RECENTLY. HAVING A HIGHER CAPACITY FACTOR AND USING THAT VERY EFFICIENTLY AND WE SEE THAT IN ANOTHER AREA OF NEED IN OUR EVALUATION, UNDERSTANDING HOW ARE RESOURCE CHOICES IMPACT TRANSMISSION -- ANYTHING YOU WOULD LIKE TO ADD? >> YOU KNOW, THE OTHER KINDS OF CLEAN, FIRM GENERATION, I THINK IT IS JUST WORTH NOTING, THOSE ARE THE SOURCES WE CAN DEPEND ON EVERY HOUR OF EVERY DAY, NO MATTER WHAT THE WEATHER. SO HYDROPOWER OF COURSE IS OUR BEST RATE HERE IN THE BEAUTIFUL NORTHWEST. WE HAVE ALL OF THIS WONDERFUL HYDROPOWER THAT HAS ENABLED US TO HAVE THE ADVANTAGE OF A VERY GOOD, STRONG, CLEAN RESOURCE. THE OTHER VIABLE SOURCES ARE GEOTHERMAL, WHICH IS WHAT WE PUT INTO THE MODEL, AND SMALL MODULAR REACTORS TODAY. PEOPLE ARE WORKING ON FUSION. I BELIEVE THERE ARE AT LEAST FOUR COMPANIES IN SEATTLE WORKING ON THE FUSION QUESTION THAT HOLDS POTENTIAL. PEOPLE TALK ABOUT HYDROGEN AS AN OPTION. TO MAKE CLEAN HYDROGEN REQUIRES THREE MEGAWATTS OF CLEAN ENERGY TO MAKE ONE MEGAWATT WORTH OF HYDROGEN. HOWEVER, THE ONE MEGAWATT IS FIRM, MEANING WE CAN STORE IT AND WE CAN USE IT WHEN WE NEED IT, BUT IT IS FOUR TIMES THE COST. IT IS HUGELY EXPENSIVE AS AN OPTION, BUT MAYBE IT WILL TURN OUT TO BE SOMETHING THAT WE LOOK AT. WE WILL KEEP ALL OF OUR OPTIONS OPEN. THE MODEL GOBBLED UP GEOTHERMAL EVEN AT A CONSIDERABLY HIGHER PRICE OF THE OTHER OPTIONS AS SOON AS IT WAS AVAILABLE, BECAUSE IT IS FIRM AND AVAILABLE ALL THE TIME. DO HAVE ROOM IN OUR PORTFOLIO FOR ADDITIONAL SOLAR AND WIND. AND TO BE ABLE TO RELIABLY PROVIDE ENERGY WITH THOSE RESOURCES AND WE MAKE THE MOST USE OF SOLAR WIND AND BATTERIES AS WE CAN. >> AND MAYBE IF WE CAN MOVE TO SLIDE 13. I REALIZE I GOT AHEAD OF MYSELF. I WILL BE MOVING BACK TO ASK ABOUT PEAKS AND LOWS. THE QUESTION BECOMES, WHAT IF GEOTHERMAL DOES NOT WORK? WHAT I APPRECIATE ABOUT THE DEPARTMENT OF COMMERCE IS THE REQUIREMENT TO FILE THIS REPORT EVERY TWO YEARS WITH AN UPDATE EVERY FOUR YEARS. LOOKING AT GEOTHERMAL ON OUR PLAN FOR EIGHT YEARS FROM NOW, AND THAT ALLOWS US IN THE INTERIM, IF SOMETHING DOES NOT WORK, FOR US TO ADJUST. THE BIGGER PROBLEM WOULD BE IF WE WEREN'T PLANNING FOR IT AND WHAT WAS REALLY HELPFUL TO HEAR FROM YOUR TEAM IN OUR MEETING, EVERY TWO YEARS WE ADD TWO YEARS TO THIS PLAN AND THINGS CHANGE. AND SO I KNOW I BROUGHT UP A NEW TECHNOLOGY THAT MAY OR MAY NOT WORK. I WANTED TO MAKE SURE TO BRING THIS BACK TO THE REALITY THAT IF IT DOES NOT WORK IT IS OKAY BECAUSE WE ARE SETTING OURSELVES UP WITH ENOUGH TIME TO PLAN. IF WE COULD GO BACK TO SLIDE 10. IF YOU COULD BRIEFLY DESCRIBE THIS SLIDE, BECAUSE IT WILL INFORM MY QUESTIONS ON SLIDE 11 AND 12. >> THIS IS PART OF THE 2024 PROGRESS REPORT. ONE OF THE THINGS WE ARE TAKING TIME TO DO IS INCORPORATE SOME NEW PRESENTATION INFORMATION AND THIS IS ONE OF THE NEW GRAPHS WE ARE SHOWING. IT SHOWS A TYPICAL DAY FOR EACH MONTH OF THE YEAR. SO IN THIS KEY WE ARE SHOWING ONE DAYS LOAD. A RAMP IN THE MORNING. A LOWELL IN THE MIDDLE OF THE DAY AND A RAMP IN THE EVENING. THE NEXT FEW SLIDES YOU WILL SEE A TYPICAL LOAD SHAPE FOR EACH MONTH OF THE YEAR. SO WE HAVE 12 TYPICAL LOADS, REPRESENTATIVE DAYS LOAD, ONE FOR EACH MONTH OF THE YEAR. THAT HELPS ARTICULATE WHERE WE SEE STRESS AND HOW OUR RESOURCES NEED TO MEET DIFFERENT LOADS THROUGHOUT THE YEAR. >> SO THIS SLIDE RIGHT HERE IS JUST SHOWING ONE DAY. THE NEXT TWO SLIDES ARE USING ONE DAY AS MEG SAMPLE FOR EVERY MONTH OF THE YEAR, IS THAT AN EXAMPLE? >> WELL SAID. >> LET'S ROLL ONTO SLIDE 11. >> AS I MENTIONED, ONE DAY FOR EACH OF THE 12 MONTHS. THE BLACK LINE IS THE MEDIAN LOAD FOR THE STUDY PERIOD AND WE ARE SHOWING THE YEAR 2025. THE ORANGE, DARK LINES ARE THE ACTUAL LOADS FROM STRESS EVENTS AND THE ORANGE BAND IN THE BACKGROUND ARE THE FULL RANGE OF SIMULATED LOAD FOR THAT HOUR, FOR THAT MONTH. ONE OF THE IMPORTANT THINGS, WE AS ANALYSTS LOOKING AT THIS GRAPH, IS SEEING THAT EXTREME EVENTS LIKE MLK WEEKEND, WHICH SHOWS UP IN JANUARY, THAT THE PEAK DAY WHERE WE SAW HISTORIC PEAKS IS ALIGNED WITH THE TOP OF OUR SIMULATED BAND. THAT SHOWS THE WEATHER FORECAST AND ADAPTATION OF OUR LOAD FORECAST BASED ON THE SIMULATED WEATHER IS A GOOD REPRESENTATION OF THE TYPES OF LOAD WE CAN EXPECT TO SEE AND IN FACT LOADS THAT WE DID SEE UNDER PEAK CONDITIONS FELL WITHIN THAT BAND. AS AN INDICATION. >> SO WE ARE SEEING THIS AT THE TOP OF OUR PREDICTED BAND. >> CORRECT. >> I KNOW WHEN I WAS GROWING UP THE SUMMERS WERE COOL ENOUGH THAT YOU COULD ONLY DEPEND ON THE FIRST WEEKEND OF AUGUST TO ACTUALLY THAT CLEARLCASE RIGHT NOW. MORE AIR CONDITIONING AS WE MOVE INTO A HOTTER CLIMATE HERE, HOW HAS THAT CHANGED THIS MODELING? WAS IT PREVIOUSLY THE SUMMER WAS THE LOW IN THE WINTER WAS THE HIGH? >> EVEN IN THIS LOAD FORECAST WE STILL SEE THE WINTER PEAKS BEING THE DRIVER AND THAT IS LARGELY BECAUSE OF BUILDING ELECTRIFICATION AND THE ADOPTION OF ELECTRIC HEATING. WHEN WE GET HEAT PUMPS, WE GET BOTH ELECTRIC HEAT IN THE WINTER AND AIR CONDITIONING IN THE SUMMER AND THIS LOAD FORECAST DOES INCORPORATE INCREASED LOAD IN THE SUMMER, BUT THE INCREASED AIR CONDITIONING LOAD DOES NOT IMPACT OUR LOAD AS MUCH AS THE HEATING IN THE WINTER, SO WE STILL SEE WINTER IS THE PEAK. BUT OUR SUMMER PEAKS ARE STILL GROWING AND GROWING FASTER THAN WE WOULD'VE DONE WITHOUT BUILDING ELECTRIFICATION. >> A NEW PERSON QUESTION. WHY ARE THERE TWO PEAKS IN THE WINTER? FOR EACH DAY THAT IS? >> IT IS KIND OF A BEHAVIORAL THING. IN THE WINTER IT IS DARKER IN THE MORNING AND IT GETS DARKER EARLY AT NIGHT. SO WE SEE MORE LIGHTING NEEDS IN THE MORNING AND EVENING, WHEREAS IN THE SUMMER YOU HAVE THE SAME BEHAVIORAL PATTERNS, BUT YOU DON'T USE AS MUCH LIGHTING. AND ULTIMATELY YOU ARE ALREADY HIGHER BECAUSE OF PROCESS TEAT AND HEATING NEEDS, GENERALLY. YOU END UP WITH THOSE SPIKING SHOULDERS DURING THE DAY. >> IF I WAS USING THIS MODEL, OUR PEAK TODAY IS GOING TO BE ABOUT 4:30, 5:00? IS THAT A GOOD ESTIMATE? >> IT IS GOOD. >> ALL RIGHT, LOOKING AT THE NEXT SLIDE, THIS IS REALLY WHEN MY QUESTIONS ARE COMING. THANKS FOR WALKING ME THROUGH THAT BACKGROUND SO WE ARE ABLE TO TALK ABOUT THIS. CAN YOU SHARE WHAT THE DIFFERENCE IS IN THE BLUE? THE MORE TRANSPARENT COLORS, THE BANDS, THE BLUE AND THE ORANGE, WHAT'S GOING ON? >> AS WE WALKED THROUGH THIS SLIDE, THE ORANGE LINE, WHICH IS THE LOAD FOR EXTREME DAYS, STAYED THE SAME. THEN WHAT WE ARE DOING IS THE BAND, THE ORANGE BAND WHICH IS THE SIMULATED LOADS FOR THAT DAY IS NOW REPRESENTING 2035 LOADS. SO IF WE GO 10 YEARS INTO THE FUTURE, WHAT LOADS DO WE EXPECT GIVEN THAT CLIMATE CHANGE ADJUSTED LOAD BOTTLE AND BUILDING ELECTRIFICATION AND TRANSPORTATION ELECTRIFICATION? THAT WOULD BE THE TOP OF THAT ORANGE BAND. SO SPECIFICALLY IN JANUARY 2024 YOU WILL SEE OUR MOST RECENT LOAD WAS AROUND 2026 MEGAWATTS. THIS SIMULATION SAYS THAT IN 2035 PEAK LOAD IN JANUARY COULD BE AS MUCH AS 2300 MEGAWATTS. AND WHAT THE INTEGRATED RESOURCE PLAN IS DOING IS TRYING TO BUILD A PORTFOLIO OF RESOURCES THAT CAN MEET NOT JUST THE PEAK WE JUST SAW, BUT RELIABLY MEET THE PEAKS WE ARE EXPECTING TO SEE IN THE FUTURE. THE OTHER THINGS ON THIS GRAPH, WE INCLUDED THE BLUE LINE WHICH IS HOW OUR GENERATION ACTUALLY PERFORMED DURING THOSE EXTREME EVENTS. THE ACTUAL GENERATION FROM OUR PORTFOLIO DURING THAT DAY. AND THE BLUE BAND IS OUR GENERATION BAND, HOW WELL OUR GENERATION PERFORMS AS WE STUDY IT. THE BLUE BAND AND BLUE LINE ARE WITHOUT ANY NEW RESOURCES ADDED TO OUR PORTFOLIO. >> I'M SEEING IN JANUARY, JUNE, A LITTLE BIT IN OCTOBER, BUT NOVEMBER AND DECEMBER THAT ARE FORECASTED NEEDS ARE HIGHER THAN OUR FORECASTED GENERATION. IS THAT ESSENTIALLY WITH NEW LOADS? ARE YOU INCLUDING ALL OF THAT GEOTHERMAL, THE SOLAR, THE BATTERY? IS THAT INFLUENCING THIS OR ARE YOU CALLING OUT THAT WE NEED TO DO MORE TO HAVE THE BLUE HIGHER THAN THE ORANGE? >> THE ADDITION OF WIND AND SOLAR AND GEOTHERMAL IS TO GET THE BLUE RELIABLY HIGHER THAN THE ORANGE. WHEN THE ORANGE BAND IS HIGHER THAN THE BLUE BAND, IT MEANS THAT YOU NEED MORE RESOURCES TO MAKE SURE THOSE ARE MET. THE BLUE BAND DOES NOT INCLUDE NEW RESOURCES. THE NEXT SLIDE IS THE RESOURCES WE NEED IN ORDER TO MAKE SURE THE BLUE BAND IS WHERE WE NEED IT TO BE. >> THAT WAS PROBABLY THE MOST HELPFUL PART, UNDERSTANDING THAT THE NEXT SLIDE IS WHAT GETS OUR BLUE BAND ABOVE ARE ORANGE. BEFORE WE MOVE ON I WILL GIVE YOU A PLUG FOR YOUR RATE PATH. COLLEAGUES, THANK YOU FOR LISTENING TO ALL OF OUR QUESTIONS. THE ORANGE LINE AND THE BLUE LINE. THE BLUE IS HIGHER THAN THE ORANGE. WE GET TO SELL OUR POWER AT A VERY HIGH RATE, WHICH IS WHAT KEEPS OUR RATE PATH LOWER THAN IT WOULD BE OTHERWISE. JUST WANTED TO NOTE THAT. TO SUMMARIZE ALL OF MY QUESTIONS AND WHAT YOU PRESENTED HERE, TO GET THE BLUE SHADED AREA ABOVE THE ORANGE IS YOUR NEXT SLIDE, CORRECT? >> THAT'S CORRECT. >> YOU WANT TO SHOW THAT AND IT WILL EXPLAIN WHY I AM SUPPORTING THIS IRP TODAY? >> YEAH, SO AS YOU WALKED US THROUGH, IN ORDER TO RELIABLY SERVE THE INCREASING LOAD WE NEED TO ADD TO OUR PORTFOLIO SUFFICIENTLY SO WHEN WE SEE EXTREME EVENTS LIKE IN JANUARY WE HAVE A PORTFOLIO OF RESOURCES TO MEET THAT NEED AND WHAT THIS SHOWS IS THE YEAR-BY-YEAR BREAKDOWN OF THE RESOURCES THAT WE SHOWED AT THE TABLE IN THE BEGINNING. YOU SEE SOLAR AND BATTERIES. WE STARTED OFFERING ENHANCED GEOTHERMAL TECHNOLOGY IN 2032 AND IF THIS STUDY PICKED UP ALL OF THAT ENHANCED GEOTHERMAL AS SOON AS IT WAS OFFERED AND DID NOT START PICKING UP WIND AND SOLAR AGAIN UNTIL AFTER YOU DEPLETED THE FULL UTILIZATION OF THAT RESOURCE, AS MENTIONED THAT WAS ALL OF THE RESOURCE WE OFFERED. 400 MEGAWATTS AND AS SOON AS WE OFFERED IT -- REGARDLESS, AS YOU ARTICULATED THE NEAR-TERM STEPS REMAIN THE SAME. SOLAR AND WIND ARE COMMERCIALLY AVAILABLE RESOURCES. >> WONDERFUL. THAT IS MY LAST QUESTION. WE WILL SEE YOU BACK IN TWO YEARS FOR THE UPDATE TO THIS PLAN. BETWEEN HERE AND THERE, BETWEEN HERE AND 2026, WHAT ARE THE PROJECTIONS FOR OBTAINING THAT SOLAR? ARE WE ON TRACK? >> WE WILL BE BACK HERE. THAT IS PART OF OUR OTHER UTILITY FUNCTION, TO ACQUIRE RESOURCES AND ACQUISITION THOSE. WE WILL BE BACK IN FRONT OF YOU TO GET APPROVAL FOR THOSE RESOURCES. ANYTHING ELSE? >> THAT IS GREAT. WE WILL GO OUT AND SEE WHAT IS AVAILABLE ON THE MARKET. WE WILL FIND THE RESOURCES AT THE LOWEST COST POSSIBLE AND TRY TO FILL IN THE GAPS. >> WONDERFUL. >> THANK YOU. COUNCILMEMBER MOORE. >> THANK YOU. THANK YOU FOR THE PRESENTATION AND FOR THE ADDITIONAL MATERIALS YOU PROVIDED. THE ANSWERS TO QUESTIONS CHAIR WOO SUBMITTED. I GUESS I JUST HAVE A NUMBER OF QUESTIONS AND CONCERNS. I NOTE THAT IN THE ANSWERS TO THE QUESTIONS, THAT YOU NOTE REALLY THE MAIN DRIVER HERE IS ELECTRIFICATION. ELECTRIFICATION GROWTH FOR BUILDINGS, BUT MORE IMPORTANTLY FOR TRANSPORTATION. THAT IS WHERE IT IS GOING TO BE IN THE ELECTRICITY COSTS AND NEEDS, BUT THEN I NOTE THAT YOU ALSO STATE IN RESPONSE TO A QUESTION ABOUT THE IRP THAT UNFORTUNATELY ANALYSIS FOR THE PROGRESS REPORT WAS NOT COMPLETED IN TIME TO INFORM THE 2025 STRATEGIC PLAN RATE PATH AND THE FINAL RESULTS OF THE 2024 IRP INDICATE THE AMOUNT OF NEW RENEWABLE RESOURCES REQUIRED WILL LIKELY BE GREATER IN THE YEARS 2027 TO 2030, THEN IDENTIFIED IN THE STRATEGIC PLAN. THE EXACT AMOUNTS AND IMPACT WILL BE BETTER KNOWN AS WE GET MORE INFORMATION. SO I AM JUST A LITTLE CONCERNED THAT WE HAVE NOT ACTUALLY BEEN ABLE TO INCORPORATE THE PROGRESS REPORT INTO CALCULATING THE RATES AND I AM JUST WONDERING IF YOU CAN ADDRESS THAT. >> I CAN START US OFF. THE TIMING FOR THE AREA RESOURCE PLAN, WHICH IS REQUIRED IN THE STRATEGIC PLAN WAS A LITTLE BIT OFF. YOU ARE RIGHT, THE FOLD IRP WAS NOT COMPLETE WHEN WE DID THE STRATEGIC PLAN MODELING LAST YEAR. IT IS VERY SIMILAR TO WHAT IS BETWEEN THE IRP. THE SOLAR IS VERY SIMILAR. THERE IS SLIGHTLY LESS WIND IN THE STRATEGIC PLAN, BUT IN THE FIRST TWO YEARS IT IS INCORPORATING THE RIGHT AMOUNT OF RESOURCES FOR THAT TIMELINE AND THAT RATE PATH. WE DID INCLUDE NEW RESOURCES IN THE RATE PATH AND WE ARE LOOKING FOR THE NEXT IRP TO HAVE THAT COMPLETE BEFORE WE ARE READY FOR THE NEXT STRATEGIC LAND. SO WE HAVE ALREADY STARTED PLANNING FOR THAT AND STARTED THE MODELING PROCESS SO IT WILL BE COMPLETE NEXT YEAR, BEFORE WE START THE PROCESS FOR THE STRATEGIC PLAN. I THINK FOR THE FIRST TWO YEARS THE STRATEGIC PLAN IS ON TARGET WITH THE IRP AND WE WILL HAVE A BETTER TIMELINE NEXT YEAR. >> THANK YOU. I WANTED TO ADD THE PART OF THE REASON SIOBHAN DOHERTY HAS BEEN PROMOTED TO THE OFFICER LEVEL IS BECAUSE POWER MARKETING IS SUCH A CRITICAL COMPONENT OF OUR FUTURE AND SHE HAS TAKEN IT UPON HERSELF TO ENSURE THAT OUR TIME FRAMES ARE GOING TO MATCH UP AND WE WILL ABSOLUTELY BE IN LINE TO COORDINATE, SO WE ARE NOT DUPLICATING EFFORTS AND SO WE ARE NOT MAKING FULL USE OF THE EXPENDITURE ON THE IRP PROCESS. SO, THANK YOU. >> YEAH, IN LOOKING AT THE RATE PATH THAT HAS BEEN SET OUT, I KNOW I MADE PREVIOUS COMMENTS THAT I WAS CONCERNED THAT WE WERE FRONTLOADING THE COST AND I REMAIN CONCERNED ABOUT THE FRONTLOADING OF THE COST, BUT I ALSO REMAIN CONCERNED ABOUT THE FACT THAT I DON'T THINK WE ARE BEING FULLY TRANSPARENT ABOUT HOW MUCH COSTS ARE GOING TO NEED TO GO UP AFTER 2026. I MEAN IN RESPONSE TO THESE QUESTIONS WE TALK ABOUT WHY WE HAVE HIGHER RATE COST FOR THE NEXT TWO YEARS. WE KNOW THAT WHOLESALE PRICES FOR ELECTRICITY HAVE MORE THAN DOUBLED COMPARED TO THE PREVIOUS DECADE. RISING POWER COSTS ARE THE SINGLE LARGEST PRESSURE ON RATES. PEAK LOAD WILL GROW 7% BY 2030 AND 16% BY 2035. YOU HAVE SIGNIFICANT INVESTMENTS IN ELECTRICAL INFRASTRUCTURE. IN ADDITION, SEATTLE CITY LIGHT IS ALSO ADDRESSING ASSETS LIKE BURIED UNDERGROUND CABLE. I KNOW IT IS NOT INTENTIONAL, BUT I AM VERY CONCERNED. EITHER THAT WE ARE FRONTLOADING COSTS WERE WE ARE NOT REALLY BEING HONEST ABOUT THE COSTS OUR RATEPAYERS WILL BE FACING IN TWO YEARS TIME AND SHOULDN'T WE BE TALKING ABOUT THAT? AND IF THE COSTS NEED TO BE HIGHER NOW AND PROTECTED, WE NEED TO BE HONEST ABOUT THAT RATHER THAN CREATING A FALSE EXPECTATION THAT IN FOUR YEARS RATES WILL GO DOWN. I DO APPRECIATE THE ANSWER. AGAIN I APPRECIATE VERY MUCH THESE QUESTIONS SUBMITTED BY CHAIR WOO. THE ACTUAL COST WAS NOT GOING TO BE 5.4 POINT THAT IS THE AVERAGE COST. NONETHELESS WE ARE LOOKING AT A SIGNIFICANT RATE INCREASE FOR RATEPAYERS AND I KNOW THAT WAS AN ISSUE IDENTIFIED. REALLY WHAT I AM ASKING FOR IS GREATER TRANSPARENCY AND HONESTY ABOUT THE FACT WE REALLY DO HAVE SIGNIFICANT INCREASE IN COSTS WE ARE LOOKING AT AND ALL OF THESE GRAPHS SHOW A TREMENDOUS AMOUNT OF INCREASE IN DEMAND. >> COUNCILMEMBER MOORE, THANK YOU SO MUCH FOR THAT QUESTION. I REALLY APPRECIATE THE QUESTION. YOU ARE EXACTLY RIGHT. WHAT WE HAVE DONE IS PLACEHOLDERS. IT HAS BEEN A JOURNEY THE LAST FIVE MONTHS AS WE REALLY BEGIN TO DIG INTO WHERE WE ARE IN TERMS OF RELIABILITY. NEIGHBORHOOD MEETINGS WHERE WE HEARD FROM OUR CUSTOMERS ABOUT STRUGGLES WITH RELIABILITY. WE HAVE COME TO TERMS WITH AND WORKED ON NEW LOOKS INCLUDING THE 24 YEAR LOOK. SOMETHING I BROUGHT IN SO THAT WE CAN REALLY SEE THE DIFFERENCE IN PRICE. AND WE ARE NOT THE ONLY UTILITY AT ALL THAT HAS REALLY DEALT WELL WITH THE COVID, 100 YEAR PANDEMIC AND THEREFORE DID NOT TAKE THE RATE INCREASES DURING THOSE YEARS THAT REALLY WERE NEEDED IN ORDER TO ENSURE THAT PEOPLE COULD GET THROUGH THAT DIFFICULT TIME. WHAT WE ARE TRYING TO DO IS AVOID RATE SHOCK AND ALSO MAKE SURE OF WHAT WE NEED. SO WE HAVE SEEN A SIGNIFICANT RISE IN INFRASTRUCTURE COSTS. WHILE THE CPI HAS GONE UP 89%, -- CPI FOR ELECTRIC COMPONENTS FOR UTILITY HAS GONE UP NEARLY 30. AND SO, YOU KNOW, IT IS, IT IS PART, I WOULD NOT CALL IT LACK OF HONESTY. I WOULD SAY IT IS PART HOPE THAT WE WILL SEE THOSE PRICES COME BACK DOWN AND WE DON'T WANT TO PUT IN SOMETHING THAT WE MAY NOT HIT. WE ALSO ARE VERY MUCH FOCUSED ON FINDING EFFICIENCY IMPROVEMENTS AND COST SAVINGS AND REALLY GOING AFTER EVERY GRANT THAT IS POSSIBLE TO HELP US OFFSET THE COSTS. AND PRIOR TO THIS WE WERE GOING AFTER SOME LARGER GRANTS, BUT WE WEREN'T ACTUALLY GOING AFTER MEDIUM-SIZED OR SMALL ONES, BUT WE NEED TO, BECAUSE THEY ADD UP. WE ARE ALSO LOOKING AT PARTNERSHIPS WITH OTHER UTILITIES. AND WE MAY BE ABLE TO SHARE COSTS ON SOME RESOURCES AND THEREFORE REDUCE THE COST. I AGREE WITH YOU THAT THE OUTER YEARS WHERE WE HAVE THE 5% PLACEHOLDER ARE LIKELY TOO LOW. IN THE NEXT TWO YEARS WE ARE GOING TO BE DOING A STUDY ON OUR ASSETS. WE KNOW WE HAVE A PROBLEM. WE CAN SEE THE RELIABILITY, WHICH HAS DECLINED EVERY SINGLE YEAR. SINCE 2017 AND I HAVE NOT LOOKED BACK FURTHER THAN THAT, BUT WE HAVE ASSETS. WE HAVE 330 LINES THAT ARE DIRECT BURIED AND WE HAVE TO REPLACE THOSE. THEY ARE ALL PAST THEIR USEFUL LIFE. WE HAVE BEEN REPLACING FIVE MILES PER YEAR. THAT WOULD TAKE US 66 YEARS TO REPLACE ALL OF THAT LINE AND WE CANNOT WAIT THAT LONG. WE WOULD CONTINUE TO HAVE THE OUTAGES. WHAT WE HAVE TO DO IS GET A CLEAR PICTURE FOR YOU ALL ON WHAT THAT LOOKS LIKE AND THEN WE HAVE TO CREATE A 10 YEAR PLAN ON WHAT WE BELIEVE WE CAN ACCOMPLISH AND WE HAVE TO LOOK AT THE RATE IMPACT AND DECIDE WHAT WE CAN LIVE WITH. MEANWHILE WE WILL STAFF FULLY AS OUR IBEW PRESIDENT REFERENCED EARLIER. WE WILL STAFF FULLY AND BE ABLE TO MOVE A LOT FASTER THAN WE HAVE BEEN. SO ALL OF THOSE THINGS WILL START TO HELP. IN TWO YEARS WE WILL HAVE A BETTER VIEW. WE DON'T HAVE TO WAIT TWO YEARS TO KEEP YOU POSTED. I WOULD SUGGEST THAT AS WE COMPLETE THESE EFFORTS WE MEET WITH YOU ALL AND SHARE WITH YOU WHAT WE ARE LOAND THAT WAY, AGAIN, WE CAN DECIDE TOGETHER WHAT THE RIGHT PATH FORWARD IS FOR THIS UTILITY WITH ITS INCREDIBLY HARD-WORKING PEOPLE AND WHO HAVE DONE AN AMAZING JOB MAINTAINING THE PREVIOUS GENERATIONS INVESTMENT IN OUR INFRASTRUCTURE. NOW IT IS OUR TURN. IT IS OUR TURN TO INVEST IN THIS INFRASTRUCTURE TO CARRY US FORWARD FOR THE NEXT GENERATION. SO WE JUST WANT TO FIGURE OUT THE RIGHT PATH FOR THAT. SO WE PUT IN PLACEHOLDERS. WE KNOW THEY ARE WRONG AND WE JUST DON'T KNOW HOW WRONG. WE HAVE HIGH HOPES THAT WE CAN MANAGE IT TO AN ACCEPTABLE LEVEL AND I BELIEVE WE ARE ON TRACK TO DO THAT. I DON'T KNOW EXACTLY WHAT ACCEPTABLE IS, BUT CERTAINLY LESS THAN A DOUBLE-DIGIT RATE HIKE. >> THANK YOU. I REALLY APPRECIATE THAT ANSWER. I APPRECIATE THE HONESTY OF THE ANSWER AND THE EXPLANATION OF THE COMPLEXITY AND THE IMPENDING COST. I GUESS MY POSITION WOULD BE TO BETTER PUT IN A NUMBER THAT OVERSTATES AND THEN YOU CAN COME BACK AND SAY LOOK HOW WE ARE ACTUALLY REDUCING RATES, RATHER THAN WE HAVE TO COME BACK NOW AND ASK FOR A JUMP NO MATTER HOW MUCH IT HAS AN IMPACT. I APPRECIATE THE BALANCE IS A DIFFICULT LINE YOU'RE WALKING. THAT IS MY POSITION. THANK YOU. >> THANK YOU. ANY FURTHER QUESTIONS? >> I'M JUST CURIOUS, WATCHING THE BLUE ANGELS YESTERDAY AND LOOKING AROUND -- HAS THAT BEEN AN INFLUENCE, I KNOW IT IS NOT PART OF YOUR PORTFOLIO, BUT DOES THAT INFLUENCE THE CONSUMPTION OR HOW MUCH OF MALIK OR CITY -- HOW MUCH ELECTRICITY IS AVAILABLE? >> ABSOLUTELY. WE ARE INCORPORATING SOLAR RESOURCES TO HELP MEET OUR LOAD LOCALLY, SO IT IS ABSOLUTELY PART OF OUR EVALUATION AND MEETING THE CITY'S NEEDS GOING FORWARD. >> IS IT SIGNIFICANT OR IS IT REALLY MINOR? YOU HAVE AN IDEA IF THEY ARE GENERATING ENOUGH TO ACTUALLY BE BOUGHT OR SOLD, VERSUS KEEPING CERTAIN BUILDINGS SUSTAINABLE? >> I WILL GO TO THE SLIDE WHERE IT SHOWS UP. IT IS THE CUSTOMER SOLAR PROGRAM LINE ON THE SLIDE. THE FIRST YEARS OF THE PLAN WE EXPECT 12 MEGAWATTS OF THAT RESOURCE. WHICH WOULD BE CUSTOMER OWNED WITHIN THE UTILITY, SO IT IS SIGNIFICANT. THE BENEFITS OF THAT RESOURCE THAT WE TRY TO INCORPORATE MORE MODELING AND NOT HAVING TO USE THIRD-PARTY TRANSMISSION TO GET THAT. THE TRANSMISSION TO OUR SERVICE TERRITORY AS WE ARTICULATED AND AS WELL AS THE IRP, IS AN AREA OF CONCERN FOR US AND AN AREA TO CONTINUE TO STUDY AND IMPROVE OUR MODELING. I HOPE THAT ANSWERS YOUR QUESTION. >> THANK YOU. I AM HOPING WE CAN LOOK THROUGH THE SLIDES ALSO INCLUDED IN THE PACKET. PAGE 23, WHICH IS THE MODELING ANALYSIS OF UTILITIES RESOURCES ADDITIONS AND COMPARISON. SO, COULD YOU TALK MORE ABOUT WHAT THIS GRAPH DEMONSTRATES? >> WE WANTED TO INCORPORATE INTO THE SLIDES IN CASE THERE WERE QUESTIONS ABOUT POWER PORTFOLIO AND HOW OUR PLAN COMPARES TO OTHER UTILITIES AROUND US. SO THIS IS OUR PORTFOLIO MIX AND RESOURCES COMPARED TO SOME OTHER UTILITIES IN THE NORTHWEST AND THE NEXT SLIDE ALSO COMPARES, BECAUSE ONE OF THE BIG DRIVERS OF PORTFOLIO ADDITION IS LOADS, SO THE NEXT SLIDE, 24, COMPARES THE LOAD FOR THOSE SIMILAR UTILITIES AND PART OF THE COMPARISON IS WHAT WE ARE ENCOUNTERING AND WHAT WE NEED TO ADDRESS IS VERY SIMILAR TO WHAT THE OTHER UTILITIES ARE FACING. I THINK YOU MENTIONED EARLIER THAT WE ARE NOT ALONE IN THIS CHALLENGE AND WE NEED TO INCORPORATE NEW RESOURCES AND IT DOES HAVE AN IMPACT ON THE COST OF THOSE RESOURCES THAT WE ARE TRYING TO ACQUIRE FOR THE CITY OF SEATTLE. >> PUBLIC UTILITIES, THE LOAD APPEARS TO GET LOWER FOR PEAK? WHILE OTHERS KIND OF MOVE AROUND OR STAY THE SAME. SEATTLE CITY LIGHT, AT PEAK LOAD, IT SEEMS LIKE WE EXCEL OTHERS IN TERMS OF USE. >> I CAN SPEAK BRIEFLY TO THAT TYPE OF DEMAND. WE HAVE A LOT OF COMMERCIAL LOADS THAT ARE VERY SUSCEPTIBLE TO HEATING AND COOLING. SO IT IS A REFLECTION OF THE BUILDING ELECTRIFICATION AND TRANSPORTATION ELECTRIFICATION FOR THE URBAN CENTER. >> INTERESTING, THANK YOU. I HAVE ANOTHER QUESTION REGARDING HOW THE IRP INFORMS THE STRATEGIC PLAN. IS IT NORMAL THAT THE IRP IS A LITTLE BIT DELAYED TO BE INCLUDED IN THE PLAN OR -- >> I THINK HISTORICALLY THEY HAVE NOT BEEN ALIGNED. I THINK IT HAS NOT BEEN AN ISSUE HISTORICALLY BECAUSE WE HAVE NOT NEEDED THE RESOURCES. THE RESOURCES WE ALREADY OWNED WERE MORE THAN ENOUGH TO MEET OUR LOAD AND THE LOAD HAS BEEN STEADY OR FLAT. SO THIS IS THE FIRST YEAR. IN 2022 WE STARTED TO SEE NEED, BUT THERE IS A DRAMATIC INCREASE WHICH I THINK MAKES IT MORE IMPORTANT, VERY IMPORTANT THAT WE ALIGN THESE PROCESSES IN THE FUTURE AND THAT IS WHAT WE WILL DO. >> IF I CAN ADD, I THINK THE GAP WAS HIDDEN, AS SIOBHAN DOHERTY HAS NOTICED. MY EXPERIENCE IN THE OTHER UTILITIES WE DO THE IRP AND THAT BECOMES THE FORECAST. THEN YOU JUST HAVE TO DO IT ONCE FOR THAT AND YOU EXPAND AND BUILD ON THAT. SO I THINK IT IS A PLACE WHERE WE CAN FIND SOME EFFICIENCY AND I CAN ASSURE YOU THE TEAM IS ALL OVER THAT AND WE WILL CONTINUE TO DO THAT. I THINK THE KINDS OF QUESTIONS YOU ARE ASKING IS EXACTLY WHAT WE NEED TO BE ASKING OURSELVES AFTER EACH THING THAT WE DO. WHAT WENT WELL AND WHAT COULD HAVE GONE BETTER? SO THAT WE CAN MAKE THE CHANGES THAT WE NEED TO MAKE AND THIS WAS NOT SOMETHING I NEEDED TO BRING TO THIS TEAM. THEY ALREADY IDENTIFIED THAT WE HAD AN OPPORTUNITY HERE, BY THE TIME I CAME IN IN FEBRUARY. SO I AM SUPER PROUD OF THEM FOR DOING THAT WORK. >> OKAY, THANK YOU. SO USUALLY, HOW WOULD THE IRP, SO FORECASTS FOR THE STRATEGIC PLAN, BUT IT LOOKS LIKE PERHAPS THE 2022 IRP WAS USED FOR THE STRATEGIC PLAN OR WAS THERE ANY RELATION BETWEEN THE TWO? >> SO, WHEN PLANNING FOR THE STRATEGIC PLAN IT WAS MOSTLY DECEMBER AND JANUARY OF THIS YEAR. WE HAD RECENTLY COMPLETED A DEMAND-SIDE ASSESSMENT THAT CAME TO COUNCIL EARLIER THIS YEAR AND THAT WAS INDICATING A NEED FOR RESOURCES SIMILAR TO WHAT WE SEE IN THIS IRP UP DATE. SO WE LOOKED AT THAT AND SOME OF THE EARLY ANALYSIS COMING OUT OF THIS IRP UPDATE TO INFORM THE STRATEGIC LAND. SO WE INDICATED MORE RESOURCES IN THE STRATEGIC PLAN, BECAUSE WE WERE SEEING INDICATIONS THAT WE WOULD NEED MORE RESOURCES. THIS IRP WAS NOT FULLY COMPLETE AT THAT TIME, SO WE DID NOT INCLUDE ALL OF THE RESOURCES BECAUSE WE DID NOT WANT TO PUSH RATES HIGHER THAN THEY SHOULD BE. >> THANK YOU. ANY ADDITIONAL QUESTIONS OR COMMENTS? OKAY, SO I MOVE THAT THE COMMITTEE SUSPEND THE RULES AND MOVED TO VOTE TO ADOPT RESOLUTION 32138. IS THERE A SECOND? >> SECOND. >> IT IS MOVED AND SECONDED. ARE THERE FURTHER COMMENTS? WILL THE CLERK PLEASE CALL THE ROLL? >> VICE CHAIR MOORE. >> AYE. >> COUNCILMEMBER MORALES. WAS THAT A YES? >> YES. >> THANK YOU. COUNCILMEMBER SAKA. >> AYE. >> COUNCILMEMBER STRAUSS. >> YES. >> CHAIR WOO. >> YES. >> THE MOTION CARRIES AND OUR RECOMMENDATION WILL BE SENT TO THE SEATTLE CITY COUNCIL. SO, THANK YOU AGAIN FOR BEING HERE TODAY. WE WILL NOW MOVE TO THE LAST ITEM OF BUSINESS. WILL THE CLERK PLEASE READ THE ITEM INTO THE RECORD? >> AGENDA ITEM 3, A RESOLUTION IN THE CITY LIGHT DEPARTMENT ADOPTING A 2025 TO 2030 STRATEGIC PLAN UPDATE FOR THE CITY LIGHT DEPARTMENT AND ENDORSING THE ASSOCIATED SIX-YEAR RATE PATH. >> THANK YOU. SO AGAIN I WOULD LIKE TO THANK SEATTLE CITY LIGHT. THE LAST COMMITTEE RAN OUT OF TIME. I'M SORRY ABOUT THAT. WE ARE LOOKING FORWARD TO A GREAT DISCUSSION TODAY. AS COUNCILMEMBERS WE ALL HAVE TO CONSIDER ANY PROPOSED RATE INCREASES IN THE CONTEXT OF OTHER RATE INCREASES SUCH AS THE ONE ANNOUNCED AS WELL AS OTHER TAX INCREASES REQUESTED BY THE CITY SUCH AS THE TRANSPORTATION LEVY. I KNOW THERE ARE A LOT OF CONCERNS. I WANT TO THANK CITY LIGHT AGAIN FOR GETTING OUR QUESTIONS ANSWERED AND ALL OF THEIR DUE DILIGENCE. WHEN READY, INTRODUCE YOURSELVES AND PLEASE PROCEED. >> THANK YOU, IM GENERAL MANAGER AND CEO DAWN LINDELL . >> MANAGER FOR STRATEGIC LEARNING AND PERFORMANCE. >> KRISTY GRAINGER, -- >> GOOD MORNING. ANDREW STRONG. >> SIOBHAN DOHERTY, POWER SUPPLY OFFICER. >> GOOD MORNING, -- OPERATING OFFICER. >> WE ARE HERE AND READY TO ANSWER ANY QUESTIONS. >> GREAT, THANK YOU. COULD YOU GIVE US A BREAKDOWN OF EACH CUSTOMER CATEGORY AND HOW THE 5.4% INCREASE WOULD IMPACT EACH OF THE RATES? >> YES WE CAN. >> YES, AS MENTIONED, SO THE STRATEGIC PLAN PROPOSES RATE INCREASE THAT AVERAGES 5.4% ACROSS THE SYSTEM. LATER THIS SUMMER CITY LIGHT WILL BRING FORWARD A FULL RATE ORDINANCE THAT WILL SET FEES AND CHARGES FOR EACH CUSTOMER CLASS, SO WE WILL DIG MORE INTO THE CUSTOMER BREAKDOWN AT THAT TIME, BUT WE DO HAVE ANALYSIS COMPLETE ON THAT. SO WE RECEIVED APPROVAL TO SHARE THAT FOR RESIDENTIAL CUSTOMERS WE ARE ANTICIPATING THAT INCREASES WILL BE SLIGHTLY LOWER THAN THE 5.4% SYSTEM AVERAGE. FOR RESIDENTIAL CUSTOMERS THE INCREASE WILL AVERAGE 5.3% IN 2025 AND 4.9% IN 2026 AND THAT TRANSLATES TO ABOUT FOUR DOLLARS PER MONTH FOR MOST RESIDENTIAL CUSTOMERS. MONTHLY BILL. THEN FOR CUSTOMERS WHO ENROLLED IN SEATTLE'S UTILITY DISCOUNT PROGRAMS, THE GREAT PROGRAM WE HAVE FOR CUSTOMERS TO QUALIFY TO GET ASSISTANCE ON THEIR BILLS. THIS PROGRAM HAS A 60% DISCOUNT, SO FOR CUSTOMERS THIS RATE INCREASE WILL BE ABOUT TWO DOLLARS PER MONTH ON THEIR MONTHLY BILLS. AND WE DO HAVE A TABLE, I SUPPOSE. THANK YOU. MAYBE WE CAN BRING IT UP. DOES IT ADVANCE IF YOU JUST DO ARROW DOWN? >> NOT MOVING. OKAY. >> MAYBE WHILE WE'RE BRINGING UP THAT SLIDE, COULD YOU HELP US UNDERSTAND THE KEY ASSUMPTIONS DRIVING EACH RATE INCREASE? >> YEAH. OH. >> WHICH ONE DO YOU WANT? >> THE SLIDE ON RATE INCREASES AND COST INCREASES. >> ALL RIGHT. SO CITY LIGHT, WE ARE A NOT FOR PROFIT PUBLIC UTILITY. WE EXIST TO SERVE THE PUBLIC. WE ARE REQUESTING TO INCREASE ELECTRIC RATES. THERE ARE THREE MAIN COST DRIVERS THAT ARE DRIVING THE NEED FOR A RATE INCREASE AND THE FIRST ONE AND LARGEST FACTOR IS OUR POWER COSTS ARE INCREASING. AS WE MENTIONED EARLIER WHEN TALKING ABOUT THE IRP, WHOLESALE ELECTRICITY PRICES HAVE MORE THAN DOUBLED COMPARED TO THE LAST DECADE AND CITY LIGHT ARE FORTUNATE THAT WE HAVE LOW-COST POWER FROM HYDROELECTRIC AND THE BONNEVILLE POWER ADMINISTRATION. BUT AS OUR IRP HAS SHOWN WE HAVE THE NEED FOR NEW RESOURCES TO MEET INCREASING DEMAND AND THESE RESOURCES WILL BE MORE EXPENSIVE THAN THE RESOURCES WE HISTORICALLY HAD. A BIG PART OF OUR RATE INCREASES CAPTURING THE COST OF THE ELECTRICITY THAT WE SERVE OUR CUSTOMERS. BOTH FORWARD-LOOKING AND ALSO OWING TO DROUGHT CONDITIONS AND MARKET PRICES AND EXTREME WEATHER EVENTS. THAT THE UTILITY HAS BEEN EXPERIENCING FOR THE PAST COUPLE OF YEARS. OUR RATE STABILIZATION ACCOUNT, WHICH IS A CASH RESERVE THAT HELPS PROTECT RATEPAYERS FROM MARKET RISKS. THIS CASH RESERVE IS CLOSE TO EMPTY, SO PART OF THIS POWER COST INCREASE AS WELL HAS TO DO WITH REPLENISHING THE RSA TO $100 MILLION SO WE CAN LEFT THE SURCHARGE THAT IS CURRENTLY ON. IT WILL BE AUTOMATICALLY LIFTED. THE SECOND KEY COST DRIVER IS WAGES. CITY LIGHT'S WAGES HAVE ALL AND BEHIND MARKET AND PART OF OUR RATE PROPOSAL IS TO INCREASE WAGES SO THAT CITY LIGHT CAN PAY A FAIR MARKET RATE COMPARED TO NEIGHBORING UTILITIES. AS TESTIFIED AT THE BEGINNING OF THIS COMMITTEE MEETING, WE ARE LOSING STAFF TO NEIGHBORING UTILITIES BECAUSE WE DO NOT PAY A WAGE THAT IS COMPARABLE. SO TO HAVE THE SKILLED ELECTRICAL WORKERS TO DO THE WORK THAT WE DO, WE NEED TO PAY A MARKET WAGE. AS WE HAVE NOTICED, UTILITY WORK, IT IS SKILLED. IT REQUIRES A LOT OF TRAINING AND IN SOME CASES IT IS DANGEROUS. SO HAVING GOOD STAFF THAT ARE SKILLED AND EXPERIENCED AND PAYING THAT FAIR MARKET WAGE IS VERY IMPORTANT. THE COST OF MATERIALS IS ALSO RISING. SO THE COST OF WAGES AS WELL AS MATERIALS AND THOSE ARE REALLY THE BIG COST DRIVERS UNDER OUR RATE PROPOSAL FOR THE NEXT TWO YEARS. >> THANK YOU. WERE WE ABLE TO FIND THAT SLIDE WITH THE CUSTOMER CATEGORY AND THE INCREASES? >> YEAH, THAT -- THANK YOU, SO THIS IS A TABLE THAT SOME ALLIANCES -- THAT SUMMARIZES IMPACTS. WE UNDERSTAND THE CUSTOMER SEE A BILL AND A DOLLAR, SO IN THIS TABLE WE SHOW EXAMPLE RESIDENTIAL CUSTOMERS. THE ELECTRIC BILL WILL VERY DEPENDING WHETHER THEY LIVE IN A CONDO OR A SINGLE-FAMILY HOME. WHETHER THEY HEAT THEIR HOME WITH ELECTRICITY OR SOME KIND OF FOSSIL FUEL. THE TOP PART OF THIS TABLE SUMMARIZES CUSTOMERS AND WHAT THE MONTHLY BILL WOULD LOOK LIKE IN 2024 COMPARED TO THE INCREASE THEY WOULD EXPECT TO SEE IN 2025 AND 2026. FOR MOST RESIDENTIAL CUSTOMERS, AND THIS HAS TO DO WITH THE RATE DESIGN WE ARE PROPOSING, THEY CAN EXPECT TO SEE THEIR BILLS INCREASE FOUR DOLLARS A MONTH AND FOR UTILITY DISCOUNT PROGRAM PARTICIPANTS, TWO DOLLARS PER MONTH. THE BOTTOM PART OF THE CHART SHOWS EXAMPLES OF COMMERCIAL AND INDUSTRIAL CUSTOMERS. THERE IS A BIG VARIETY IN ELECTRIC BILLS DEPENDING ON IF YOU ARE RUNNING A SMALL SHOP, A CARWASH WERE RUNNING A HOSPITAL. SO THESE SHOW A RANGE OF COMMERCIAL AND INDUSTRIAL EXAMPLES AND THEN WHAT THE PERCENTAGE INCREASE WOULD TRANSLATE TO FREIGHT BILL FOR A COMPANY LIKE THAT. >> COULD YOU SPEAK BRIEFLY ABOUT FUNDING SOURCES EXPLORED FOR THESE INCREASES? >> YEAH, SO ONE STRATEGY THAT CITY LIGHT IS ACTIVELY PURSUING IS GRANT OPPORTUNITIES. AT THE FEDERAL LEVEL RIGHT NOW THERE IS A LOT OF FUNDING TO SUPPORT MODERNIZATION OF THE GRID AND DECARBONIZATION AND UTILITY WORK WE ARE DOING. SO CITY LIGHT, WE ARE ACTIVELY PURSUING ANY OPPORTUNITY WE CAN TO BRING IN DOLLARS TO HELP KEEP OUR RATES LOW. IN THE MEMO WE PROVIDED WITH CITY COUNCIL WE SUMMARIZED GRANTS THAT CITY LIGHT HAS RECENTLY BEEN AWARDED. ONE VERY EXCITING ONE THAT WE RECENTLY RECEIVED FROM THE DEPARTMENT OF COMMERCE IS GOING TO HELP FAMILIES GET CAUGHT UP ON THEIR ELECTRIC BILLS. THIS IS THE CLEAN ENERGY CREDITS AND THIS IS $19 MILLION THAT WE ARE WORKING TO APPLY TO BILLS TO HELP CUSTOMERS WHO MAY BE BEHIND ON BILLS TO GET CAUGHT UP AND SO THAT IS ONE PARTICULAR GRANT WE ARE EXCITED TO HAVE RECEIVED AND WE LOOK FORWARD TO GETTING THAT APPLIED TO CUSTOMER BILLS AS SOON AS WE CAN. >> WE ARE ON THE WAY. >> WE ARE ALSO PURSUING GRANTS AT THE FEDERAL LEVEL TO SUPPORT DOING WORK ON OUR HYDRO PROJECTS. GRID RESILIENCE AND INTEGRATION PARTNERSHIPS. $50 MILLION, WHICH WOULD BE A BIG DEAL IF WE WERE ABLE TO GET THAT. WE ALSO ANTICIPATE THIS COMING FROM THE CARBON MARKET AND WE ARE GOING TO APPLY THOSE AND USE THOSE TO SUPPORT THE COST OF ELECTRIFICATION AND HELP WORK WITH CUSTOMERS LOOKING TO ELECTRIFY THE FLEETS OR THE BUILDINGS. AND FINALLY WE ARE VERY EXCITED TO PURSUE PARTNERSHIPS WITH OTHER CITY DEPARTMENTS TO HELP IMPROVE SERVICES, HOPEFULLY WITHOUT INCREASING COSTS AND ONE OF THOSE IS A PILOT WE WILL DO WITH THE DEPARTMENT OF NEIGHBORHOODS. THE DEPARTMENT OF NEIGHBORHOODS IS REALLY GREAT AT OUTREACH AND REACHING COMMUNITIES THAT ARE MAYBE A LITTLE BIT MORE CHALLENGING TO MAKE CONTACT WITH. SO WE LOOK FORWARD TO WORKING WITH THE DEPARTMENT OF NEIGHBORHOODS TO HOPEFULLY GET OUT THERE AND TALK TO CUSTOMERS WHO MAYBE DON'T KNOW ABOUT OUR UTILITY PROGRAMS, DISCOUNT PROGRAM. WHO MAYBE DON'T KNOW ABOUT THE OPPORTUNITIES WE HAVE FOR CUSTOMERS WHO ARE BEHIND ON THEIR BILLS. THOSE ARE JUST SOME EXAMPLES OF WAYS WE ARE PURSUING ADDITIONAL SOURCES OF REVENUE TO HELP KEEP RATES LOW. >> ARE THERE ANY STEPS BEING TAKEN TO IMPROVE OPERATIONAL EFFICIENCY AND REDUCING RATES AND HOW CAN THESE IMPROVEMENTS HELP CUSTOMERS SAVE ON FUTURE RATE INCREASES? >> ABSOLUTELY. WE UNDERSTAND THAT RATE INCREASES ARE HARD AND WE NEVER LIKE TO REQUEST INCREASES. WE UNDERSTAND THAT WE NEED TO DO EVERYTHING THAT WE CAN TO IMPROVE EFFICIENCY EVERY STEP OF THE WAY. OVER THE PAST TWO BUDGET CYCLES, CITY LIGHT RECEIVED $41 MILLION BY SHIFTING SPENDING TO ADDRESS RISKS AND HIGH PRIORITY NEEDS LIKE CYBERSECURITY AND FISCAL SECURITY SO WE CAN ADDRESS THOSE NEEDS WITHOUT AN ADDITIONAL RATE ASK. THIS ALSO SHOWS EXAMPLES OF OTHER SAVINGS WE HAVE BEEN ABLE TO PURSUE AND ACHIEVE THROUGH REFUNDS, GRANTS, AS WELL AS PROCESS IMPROVEMENTS AND MOVING FORWARD IN 2025 AND 2026 WE ARE COMMITTED TO CONTINUE LOOKING FOR NEW AND INNOVATIVE OPPORTUNITIES. ONE THING THAT DAWN BROUGHT WITH US IS EXPERIENCE USING SIX SIGMA TO IMPROVE PROCESSES. THAT IS ONE THING WE ARE LOOKING TO LEAN INTO. SORRY, I'M SORRY. NO PUN INTENDED. AND WE ARE GOING TO LOOK FOR MORE OPPORTUNITIES TO CONTINUE TO GET LEANER, I DID IT AGAIN. AND MORE EFFICIENT. >> THANK YOU, COLLEAGUES. ANY QUESTIONS OR COMMENTS? COUNCILMEMBER MOORE. >> THANK YOU. AGAIN I KEEP HARPING ON THE RATE PATH. I THINK WE HAD ASKED OR INDICATED AN INTEREST IN HAVING A PLAN PUT FORWARD THAT WOULD NOT FRONTLOAD THE COSTS, THAT WOULD SPREAD THE COSTS OUT. I DID RECEIVE ANSWERS TO MY QUESTIONS ABOUT THAT, WHICH I DID NOT ACTUALLY RECEIVE A PROPOSAL AFTER THAT REQUEST, BUT NOTING THAT THE REASON THAT WE CAN'T SMOOTH OUT THE RATE PATH OVER THE NEXT SIX YEARS IS BECAUSE OF MARKET-BASED WAGE ADJUSTMENTS, BUT ALSO BECAUSE THE CITY IS GOVERNED BY FINANCIAL POLICIES THAT DIRECT THE UTILITY TO DIRECT SERVICE COVERAGE AT A MINIMUM OF 1.8 AND FUND THE CIP WITH CURRENT YOUR REVENUE. ISN'T THAT GOING TO BE THE CASE EVERY YEAR? THAT THOSE LEGAL REQUIREMENTS ARE IN PLACE EVERY YEAR? >> YES, THOSE ARE FINANCIAL POLICIES SET BY CITY COUNCIL THAT GOVERN HOW WE BALANCE FUNDING OUR WORK THROUGH REVENUE AND THROUGH SELLING BONDS. THESE ARE THE POLICIES THAT HELP THE UTILITY NOT BECOME TOO LEVERAGED AND HELP US KEEP OUR CREDIT RATING, WHICH IS IMPORTANT TO SELL BONDS AND GET GOOD INTEREST RATES BECAUSE A LOT OF THE WORK THAT WE DO IS CONSTRUCTION. BEING ABLE TO HAVE A STRONG CREDIT RATING AND BEING FINANCIALLY SOUND IS VERY IMPORTANT, SO THOSE FINANCIAL POLICIES IS WHAT GOVERN AS BEING FINANCIALLY STABLE AND MAINTAINING THAT GOOD CREDIT RATING. >> SO THAT IS NOTHING DIFFERENT DRIVING THE PARTICULAR INABILITY TO SPREAD OUT THE COSTS. I WOULD LIKE TO GO TO SLIDE 18, WHERE WE SHOW COST PRESSURES DRIVING UP RATES. AND EACH YEAR FROM 2025 TO 2030, POWER COSTS ARE GOING UP . EACH YEAR FROM 2025 TO 2030 MARKET WAGES ARE GOING UP. EACH YEAR FROM 2025 TO 2030, CAPITAL RECOVERY IS GOING UP. WHAT YOU HAVE PRESENTED TO US IS RATES ARE NOT GOING TO GO UP IN 2027 THROUGH 2030. WE WILL KEEP THEM AT 5.0%. THAT DEFIES REALITY. I APPRECIATE THE FACT YOU ARE BEING OPTIMISTIC. I APPRECIATE THE FACT YOU ARE LOOKING FOR ALL SORTS OF ADDITIONAL SOURCES, BUT WE KNOW THAT RATES ARE GOING TO GO UP. YOU WILL BE BACK HERE IN TWO YEARS. IT WILL BE AN INCREASE. HOW MUCH? WE DON'T KNOW. LET US BE HONEST AND PUT A MORE ACCURATE MARKER IN PLACE, PLEASE. I THINK WE WANT TO OVERPROMISE AND OVERDELIVER AND WE ALSO HAVE TO BE HONEST ABOUT WHAT THIS IS LOOKING AT. WE LOOK AT WHAT WE DID IN THE PRIOR STRATEGIC PLAN AND WE HAD IT LISTED AT 3% FOR THIS YEAR. THAT WAS THE FORECAST AND NOW WE ARE HERE WITH A 2.4% INCREASE. AND WE SAY WE WILL STAY AT 5% FOR THE YEARS OUT. TRULY OUR OWN DATA BELIES THAT, SO WHILE I AM REQUESTING IS THAT YOU COME BACK TO ME WITH A MORE ACCURATE RATE PATH, SO THAT WE CAN BE PREPARING THE PUBLIC FOR THAT FACT AND WE ARE NOT LOOKING LIKE FUELS WHEN WE COME BACK IN TWO YEARS AND HAVE TO MAKE A SIGNIFICANT INCREASE AND WE CAN ALSO BE ON THE SAME PAGE ABOUT HOW WE CAN WORK TO TRY TO OVERDELIVER. THANK YOU. >> COUNCILMEMBER STRAUSS. >> THANK YOU. I JUST HAVE A CLARIFYING QUESTION ABOUT WHAT YOU WERE SHARING WITH CHAIR WOO REGARDING CREDITS TO THE BILLS. IS THAT MONEY WE ARE GETTING FROM THE STATE? SAID ANOTHER WAY, I AM NOT HERE LOBBYING ON ANY INITIATIVES, JUST TRYING TO UNDERSTAND IF INITIATIVES WERE SUCCESSFUL, THAT COMMITMENT ACT WAS REPEALED, WILL WE LOSE THOSE CREDITS? >> I DON'T BELIEVE WE WILL LOSE THE ONES THAT WE APPLIED NOW. BUT FUTURE BENEFITS FROM THAT -- >> THIS YEAR'S ARE IN AND THOSE WON'T GO AWAY, BUT ANYTHING BEYOND DECEMBER IS AT RISK. IF IT GOES DOWN. IF THAT ANSWERS YOUR QUESTION. >> THANK YOU. I THINK WHAT YOU ARE HEARING GENERALLY IS WE WANT TO BE REALISTIC ABOUT WHAT OUR INFRASTRUCTURE PLACEMENT IS, WHAT OUR WAGES ARE, ET CETERA. ANDREW WE JUST TALKED ABOUT INFRASTRUCTURE THAT NEEDS TO BE REPLACED BECAUSE IT IS AGING. I OFTEN COMPARE OUR ELECTRICAL INFRASTRUCTURE TO MY FORD PICKUP, THAT EVERY YEAR SOMETHING HAS TO BE REPLACED. AL PAUSE. BECAUSE WE DO WANT TO KEEP RATES AS LOW AS POSSIBLE FOR CUSTOMERS. AND I BELIEVE IT WAS SLIDE 25 THAT SHOWS 27 COMPARING OUR RATES TO OTHERS. WE ARE NOT THE LOWEST, WE ARE DEFINITELY NOT THE HIGHEST SEEING PORTLAND GENERAL WITH AN 8% RATE THIS YEAR, 13% NEXT YEAR WITH PUGET SOUND ENERGY MOVING UP TO 6.9 9.6 IN THE OUT YEARS. QUESTION HERE, AND COUNCILMEMBER WOO, THANK YOU FOR ASKING THE QUESTION. UNDERSTANDING WHAT THE IMPACT IS TO OUR RESIDENTS, THE FULL STORY IS NOT BEING SHOWN ON SLIDE 17, SORRY FOR BOUNCING AROUND, I HAVE THE PRESENTATION UP, MYSELF. SLIDE 17, SHOWING THAT PATH, IT'S GOING TO BE LESS OF AN IMPACT FOR RESIDENTS AS YOU JUST DESCRIBED. BUT THESE NUMBERS DO JUMP OUT OF THE PAGE AT US. AND I APPRECIATE WHAT YOU SHARED ABOUT THE CLIMATE COMMITMENT ACT DOLLARS, AND ALSO THE UTILITY DISCOUNT PROGRAM. I WILL NOTE HERE FOR THE RECORD, I WOULD STILL LIKE TO SEE SOME CHANGES TO THE UTILITY DISCOUNT PROGRAM. I WOULD LOVE TO WORK WITH YOU ON THAT BOTH TO SMOOTH THE CLIFF IF SOMEBODY MAKES A DOLLAR TOO MUCH, THEY ARE JUST OUT OF LUCK AS WELL AS, HOW DO WE GET A HIGHER SUBSCRIPTION RATE TO IT? I UNDERSTAND WE ARE 30% OF ELIGIBLE CUSTOMERS WHO HAVE SUBSCRIBED TO IT. I THINK THERE ARE PROBABLY SOME ADMINISTERED BARRIERS THAT COULD BE SMOOTHED OUT THERE. ALL THIS TO SAY, YES, COUNCILMEMBER MOORE, WE HAVE TO BE REALISTIC ABOUT WHAT OUR NEEDS ARE, AND YES, WE NEED TO MAKE SURE THAT WE ARE SUPPORTING OUR CUSTOMERS IN THE BEST WAY POSSIBLE. SO -- I GUESS I DIDN'T HAVE A QUESTION OTHER THAN THE CLIMATE COMMITMENT ACT. THANK YOU FOR YOUR TIME. >> COUNCILMEMBER SAKA? >> THANK YOU, MADAM CHAIR. LOTS OF GREAT DISCUSSION GOING ON HERE, TODAY. I WANT TO THANK MY COLLEAGUES FOR ASKING SOME THOUGHTFUL QUESTIONS. I WANT TO THANK OUR EXPERTS AT CITY LIGHT HERE FOR YOUR TRANSPARENCY AND CANDOR IN ANSWERING THESE VERY TOUGH QUESTIONS. YOU KNOW, THESE ARE REALLY IMPORTANT TOPICS. AND IT IMPACTS PEOPLE'S EVERYDAY LIVES AND EXPERIENCES, NOT ONLY TODAY, BUT FOR THE NEXT DECADE PLUS TO COME. I SHARE -- YOU TOOK THE WORDS OUT OF MY MOUTH, COUNCILMEMBER MOORE. I AGREE, I GUESS, I CONCUR WITH COUNCILMEMBER MOORE THAT WE NEED TO UNDER PROMISE AND OVER DELIVER, AND ALWAYS ENDEAVOR TO DO THAT. ALTHOUGH, I AM VERY MINDFUL OF THE SENSITIVITY, LIKE HOW DELICATE RATE INCREASES ARE, AND IMPACT THEY HAVE IN OUR CUSTOMERS, PARTICULARLY RESIDENTIAL CUSTOMERS AND THE MOST VULNERABLE. AS YOU KNOW, IT IS DEFINITELY ONE OF MY PRIORITIES TO KEEP OUR RATES LOW. AND I KNOW YOU ALL THROUGH YOUR PREVIOUS ENGAGEMENT WITH IMPACT TO COMMUNITIES INCLUDING CUSTOMERS, YOU LEARNED THAT WAS A CORE PRIORITY AS WELL INCLUDING PREDICTABILITY. SO, YEAH. I DON'T LOVE THE FACT THAT THESE RATE INCREASES , PLACEHOLDERS AREN'T -- WE KNOW TODAY THEY ARE NOT -- THEY ARE NOT ACCURATE. ALTHOUGH, I DO APPRECIATE YOU [ INAUDIBLE ] , THE WHOLE OPTIMISTIC APPROACH, YOU KNOW? GENERALLY, I PREFER TO LIVE IN MY HOPES AND NOT MY FEARS. AT THE SAME TIME, YOU KNOW, WE DO -- WE DO NEED TOBIAS ON THE SIDE OF TRANSPARENCY AND ACCOUNTABILITY. AND WE HAVE ALL THESE HUGE COSTS THAT WE KNOW ARE IMPACTING OR -- FACTORS THAT ARE IMPACTING COSTS, INCLUDING, YOU KNOW, WE NEED TO LIFT AND RESTORE THE RSA, THE LABOR COST, THE -- INFLATION, PLUS ALL THE NONTRIVIAL INVESTMENTS THAT WE NEED TO MAKE IN OUR CAPITAL IMPROVEMENT PROJECTS, WHETHER IT IS MODERNIZATION OF THE GRID, DECARBONIZATION EFFORTS, JUST LIKE NITTY-GRITTY CORE UNDERGROUND REPLACEMENT OF THE CABLES. LIKE THESE IMPORTANT PROJECTS, WE HAVE ALL THESE HUGE COMMITMENTS AND GOALS. WE NEED TO ABSOLUTELY LIVE UP TO THEM. BUT I DON'T WANT TO BE IN A PLACE WHERE WE CAN LIVE UP TO THEM ON PAPER, BUT PERFORMANCE IS HORRIBLE, AND RELIABILITY AND PREDICTABILITY IS HORRIBLE. I DON'T WANT TO TURN SEATTLE CITY LIGHT INTO -- WHAT IS IT? THE NIGERIAN ELECTRO POWER AUTHORITY. BEING HALF NIGERIAN MYSELF, IF YOU'VE EVER BEEN TO NIGERIA, THE POWER GOES OFF REGULARLY, CONSISTENTLY, AND IT IS NOT TIED TO A WEATHER EVENT. IT IS BECAUSE OF BAD PLANNING, BAD INFRASTRUCTURE, WE CAN'T HAVE THAT. SO, I'M NOT PERSONALLY IN THE BUSINESS OF KICKING THESE TOUGH DECISIONS DOWN THE ROAD ESPECIALLY AS IT RELATES TO CAPITAL IMPROVEMENT PROJECTS. LET US BE REALISTIC. LET US BE TRANSPARENT. BECAUSE RATES ARE GOING TO INCREASE, WHICH WE KNOW. THE EXACT DEGREE IS UNKNOWN AT THIS TIME. CUSTOMERS DESERVE ANSWERS. AND IS THERE CLARITY ON WHAT THAT I PET PAYING THEIR FAIR SHARE MORE. THOSE WHO ARE ABLE TO, BUT WE NEED TO BE ABLE TO CLEARLY ARTICULATE WHY AND WHAT THEY ARE GOING TO GET IN EXCHANGE FOR THAT. SO, I WILL BE SUPPORTING THIS PROPOSAL TO DAY. BUT I DO SHARE THE CONCERNS THAT WERE RAISED, AND I LOOK FORWARD TO WORKING COLLABORATIVELY WITH YOU ALL TO ADDRESS SOME OF THESE CONCERNS AND BE A LITTLE MORE REALISTIC . AS AN ASIDE, I AM NOT PARTICULARLY OPTIMISTIC FOR SAYING WHEN ABOUT GEOTHERMAL AND THE PROSPECTS. ALTHOUGH, I THINK THOSE ARE FAIR, REALISTIC AND ACCEPTABLE ASSUMPTIONS YOU ALL BAKED INTO THERE. BUT COMPLEX STUFF, A LOT GOING ON, ANYWAYS, LOOK FORWARD TO CONTINUING THE PARTNERSHIP. SO, THANK YOU. AND ALSO, COUNCILMEMBER STRAUSS, I'M REALLY SHOCKED AND SURPRISED THAT YOU ONLY HAVE TO REPAIR YOUR 1972 FORD PICK UP TRUCK ONCE A YEAR. THAT IS PRETTY AMAZING. BUT IN ANY EVENT -- >> THANK YOU, COUNCILMEMBER SAKA. LUCKILY, I HAVE AAA, SO I CAN GET IT TOWED AS NEEDED. I BELIEVE YOU ARE FINISHED? >> FINISHED AND NIGERIAN. YUP. >> YOUR FINISHED SIDE HAS STABLE UTILITY, CORRECT? >> THAT THEY DO. I'VE BEEN IN BOTH COUNTRIES. >> THANK YOU. SO, I HAVE A QUESTION. IF WE CAN GO TO SLIDE NUMBER 23, CITY LIGHT'S CASH RESERVES, SO, THE GRAPH ONLY GOES UNTIL MARCH 24. AND WE ARE NOW IN THE BEGINNING OF AUGUST 2024. DO YOU -- YOU KNOW? IS THERE A PROJECTION FOR OUR SURCHARGES GOING FORWARD? WHERE ARE WE AT NOW? >> THAT'S A GREAT QUESTION. YEAH, THIS FORECAST GOT STALE AS WE WERE WORKING THROUGH THE STRATEGIC PLAN OF THE PROCESS. IT WAS FRESH WHEN WE STARTED WORKING ON THIS DECK, AND WE HAVE NOT UPDATED IT. WE SHOULD HAVE. YEAH, WE ARE INTO THE WATER YEAR. IT HAS BEEN DRY. BUT SIOBHAN AND HER TEAM HAVE BEEN DOING A GOOD JOB MAKING THE MOST OUT OF THE LIMITED WATER THAT WE HAVE. AND WE ARE -- THE RSA HAS NOT INCREASED. BUT, WE ARE NOT -- I THINK WE ARE A LITTLE BIT BETTER RIGHT NOW THAN THAT DOTTED LINE. I DON'T KNOW, SIOBHAN, DO YOU WANT TO ADD ANYTHING TO HAVE A SUMMER RUNOFF IS GOING? >> YEAH. WE HAD HISTORICALLY DRY WINTER AND SPRING. OUR LOW WAS A LITTLE LIGHTER THROUGHOUT THE EARLY PART OF THE YEAR. WE HAD A WARM WINTER. EVEN THOUGH IT WAS DRY, WE HAD A COOL SPRING WHICH MEANT WE WERE ABLE TO HOLD ONTO WATER IN THE MOUNTAINS FOR LONGER WHICH HELPS US. PRICES TEND TO BE LOW IN THE SPRING. THEY GET MORE EXPENSES AS WE MOVE INTO THE SUMMER. WE HAVE BEEN ABLE TO MANAGE THE WATER WE HAD AVAILABLE REALLY WELL. BUT AUGUST TENDS TO BE OUR HARDEST MONTH. BY AUGUST, ANY OF THE WATER RESERVES THAT WERE IN THE SNOWPACK HAVE MELTED AND USED UP. AUGUST IS REALLY THE HARDEST MONTH FOR US. WE HAVE DONE GOOD PLANNING. WE HEDGED IN ORDER TO MEET THAT NEED. IT DEPENDS ON WHETHER WE SEE HEAT WAVES COMING UP. SO FAR, WE HAD A VERY GOOD FIRST HALF OF THE YEAR. IT WOULD DEPEND ON THE WEATHER GOING FORWARD. >> AND WHEN WE DO REACH THE EMERGENCY REFILL PLAN, WHAT DOES THAT LOOK LIKE? >> I HOPE -- THE HOPE IS THAT WE WILL NOT REACH THAT. AS SIOBHAN JUST SAID, THIS MONTH, AUGUST, IS THE ONE WHERE CITY LIGHT HAS THE MOST FINANCIAL UNCERTAINTY. NO WATER, POSSIBLE HEAT WAVES, HIGH MARKET PRICES. THIS MONTH, DON JUST KNOCKED ON THE TABLE. WE ARE GOING TO BE WATCHING AND KEEPING FINGERS CROSSED THAT WE STAY ABOVE THE $25 MILLION. IF WE DO, WE WILL BE BACK HERE TALKING TO YOU AGAIN ABOUT EMERGENCY REFILL PLAN. -- WHICH COULD MEAN INCREMENTAL RATE ASKS. I MEAN, THAT WOULD BE A VERY DIRE SITUATION. BECAUSE IT WOULD MEAN OUR RESERVE IS IN DANGER OF BEING EMPTY. AND WE NEED TO BE ABLE TO BUY POWER TO SERVE IT TO CUSTOMERS. OTHERWISE, WE RISK BEING THE NIGERIAN -- I MEAN, THAT IS WHAT HAPPENS WHEN A UTILITY CAN'T GET ELECTRICITY. YOU HAVE ROLLING BROWNOUTS. IN CALIFORNIA AND IN THE SOUTHWEST, THEY SOMETIMES SEE THAT IN THE SUMMER. THAT'S NOT A PLACE WHERE WE WANT TO BE. I THINK I READ A STATISTIC THAT THE AVERAGE PERSON ABOUT THEIR ELECTRIC UTILITY SEVEN MINUTES A YEAR THERE. AND I THINK WE DON'T MIND BEING TAKEN FOR GRANTED. THAT'S NOT A BAD THING. WE WANT PEOPLE TO BE ABLE TO NOT THINK ABOUT US AND JUST GO TO CHARGE THEIR PHONE AND TURN ON THE ELECTRICITY AND KNOW THAT IT'S GOING TO BE THERE. SO, BEING ABLE TO SOURCE ELECTRICITY TO SERVE OUR CUSTOMERS FOR ALL OF THEIR NEEDS IS VERY IMPORTANT TO US. THAT'S WHY WE TAKE THE RSA STATUS VERY, VERY SERIOUSLY. >> I AM ALSO CONCERNED, TOO, BECAUSE OF CLIMATE CHANGE AND HOW WARM OUR SUMMERS, YEAR-ROUND, HOW WARM OUR CITY IS. SO, HOPEFULLY, WE WON'T HAVE TO GET TO THAT POINT. I'M GLAD TO HEAR THAT WE HAVE A PLAN. HOPEFULLY, WE WILL NEVER HAVE TO DEAL WITH THAT. SO, I ALSO HAVE A QUESTION. COULD YOU TALK ABOUT, IF THERE WERE ANY COST EFFICIENCY ANALYSIS DONE ON THE STRATEGIC PLAN OR ANYTHING TO THAT MEASURE? WHAT, FOR INSTANCE, WHAT IT WOULD LOOK LIKE IF WE WERE TO REMOVE A CERTAIN COMPONENT? I MEAN, PROBABLY LIKE BROWNOUTS AND OTHER ISSUES, OR IF WE WERE NOT TO EXECUTE A CERTAIN PROJECT, WHAT WOULD THAT MEAN? HAS THERE BEEN ANY -- ANY STUDIES DONE? >> WE -- WE ONLY PUT INTO THIS RATE INCREASE AS COUNCILMEMBER MOORE HAS SHOWN WHERE IT IS DISCUSSED. WE ONLY PUT IN THE COST OF THE POWER, THE COST OF THE LABOR INCREASE, AND A LITTLE BIT FOR THE INCREASED TAXES. WE ARE ASSUMING WE WILL FIND ENOUGH EFFICIENCY TO DO OUR NEW PROGRAMS. SO, THAT IS BUILT-IN. WE ARE -- WE ARE DEPENDENT ON DOING THINGS FASTER AND AT LESS COST. AND WE BELIEVE THERE IS OPPORTUNITY THERE. SO, FASTER AND LESS COST IN ORDER TO DO THE NEW PROGRAMS THAT WE NEED TO PUT IN FOR FOLKS. WE WILL ALSO SHIFT. WE ARE TAKING A HARD LOOK AT PROGRAM PERFORMANCE. AND WE WILL DO LESS OF THE ONES THAT ARE NOT DELIVERING. WE WILL DO MORE ON PROGRAMS THAT WILL DELIVER FOR US. WE WILL BE -- SOME KEY PROGRAMS COMING UP IN THE NEXT TWO-YEAR PERIOD. ONE OF THOSE IS THE TIME OF USE RATE. THAT WILL REQUIRE A SIGNIFICANT AMOUNT OF OUTREACH AND COMMUNICATION, WHICH WE WILL DEPEND ON OUR EXTERNAL COMMUNICATIONS MANAGER AND HER GREAT SKILLS IN THAT ARENA. BECAUSE WE HAVE TO GET THAT CONSERVATION. IN ADDITION TO THE 800 HUNDRED MEGAWATTS WE NEED TO FIND THE NEXT FEW YEARS, WE NEED AN ADDITIONAL 118 MEGAWATTS IN CONSERVATION. SO, THAT IS ALSO BUILT IN. IN TERMS OF ANALYSIS OF TAKING SOMETHING OUT, WE ARE AT THE PLACE IN THE RATE INCREASE THAT IF WE TOOK SOMETHING OUT, WE DO RISK NOT HAVING THE POWER THAT WE NEED, AND WE RISK THE CONTINUED DECLINE IN OUR RELIABILITY. IF WE LOOK AT SLIDE NUMBER 36 , THIS SHOWS OUR OUTAGE HISTORY. SO, GOING UP AS IT SHOWS MEANS AN INCREASE IN OUTAGE. YOU CAN LOOK AT THE DOTTED LINE. YOU KNOW, THE DOTS GO UP AND DOWN. IT DEPENDS ON THE WEATHER. BUT THE TREND FOR OUR -- THE DURATION OF THE OUTAGE WHICH IS THE LOWER LINE AND, IN TERMS OF THE SYSTEM DURATION FOR THE OUTAGE, THEN THE UPPER LINE IS WHAT THE CUSTOMER EXPERIENCES IN TERMS OF MINUTES, I BELIEVE MINUTES ARE WHAT IS ON THE Y AXIS. AS WE CAN SEE, WE ARE CONSISTENTLY DECLINING IN OUR RELIABILITY. THEN IF WE LOOK AT SLIDE NUMBER 37 -- BECAUSE SOMETIMES WE MIGHT SAY, OKAY, BUT EVERYONE IS. THE PROBLEM IS, THE INDUSTRY AVERAGE ON THIS IN TERMS OF OUTAGE MINUTES ON THE Y AXIS AND YEARS IN THE RIGHT BOTTOM, THE DOTTED LINE IS THE INDUSTRY AVERAGE. AND THE GREEN LINE IS US. AND SO, YOU KNOW, WE ARE UNFORTUNATELY, CONSIDERABLY ABOVE THE INDUSTRY AVERAGE IN OUR OUTAGE MINUTES. THAT IS THE DIRECT EXPERIENCE OUR CUSTOMERS HAVE. WE WANT TO IMPROVE THAT. AND SO, WE HAVE GOT TO HAVE THE STAFF TO BE ABLE TO ADDRESS THAT. WE CAN -- WE CAN HAVE THE SAME NUMBER OF OUTAGES, BUT IF WE ADD BACK THE SIX CREWS, THEY CAN RESPOND MORE QUICKLY TO THE MULTIPLE OUTAGES THAT WE HAVE. WE CAN DEPLOY THEM, AND THEY CAN GET THERE. SO, ADDING THAT EXTRA LABOR BACK IN IS JUST KEY. AND THEN, HITTING A GOOD HANDLE ON THE UNDERLYING ASSET SITUATION SO WE CAN TELL WHAT WE NEED TO DO AND WHAT WE NEED TO REPLACE, THAT IS NOT TILLED INTO THIS BUDGET YET. THAT'S WHAT WE NEED TO DO OVER THIS NEXT COUPLE YEARS. THEN WE NEED TO BUILD OUT THE RIGHT PATH TO ADDRESS THIS. SO, YOU KNOW, I THINK WE HAVE STAYED VERY LOW . PROBABLY LOWER THAN WE ARE COMFORTABLE WITH. BUT BECAUSE WE ARE COMING OUT OF THIS HISTORIC PANDEMIC, AND WE DON'T WANT TO HAVE THAT ALMOST RATE SHOCK, WE WANT TO GIVE A LITTLE MORE TIME FOR THINGS TO EVEN OUT. WHAT WE ARE AGGRESSIVELY APPLYING FOR FUNDING. NO FUNDING IS TOO SMALL. [ LAUGHTER ] -- FOR US TO GO AFTER. I -- YOU KNOW, WHEN WE LOOKED AT THE SAVINGS WE HAD OVER THE LAST YEAR, WHAT I WANT TO POINT OUT IS, NOT ONLY IS STAFF FINDING EFFICIENCY, BUT THEY ARE -- I MEAN, THEY ARE SALES SHOPPING. WE NEED TO SPEND TIME WITH THE INDUSTRY. THEY ARE DOING THE EARLY BIRD DISCOUNT. WE ARE COUNTING THAT $200. YOU KNOW? WE ARE LOOKING FOR, HOW CAN WE DO WHAT WE ARE DOING IN THE LEAST EXPENSIVE WAY POSSIBLE SO THAT WE FIND THE DOLLARS TO DO THE PROGRAMS WE KNOW WE NEED TO DO? AND I AM, YOU KNOW, I AM PLEASED WITH HOW RESPONSIVE THIS TEAM HAS BEEN WITH THAT. >> CHAIR? UNFORTUNATELY, I NEED TO LEAVE 13 MINUTES EARLY FROM COMMITTEE WHICH IS ABOUT RIGHT NOW. I SEE THAT WE STILL HAVE SOME MORE QUESTIONS REGARDING -- GOOD QUESTIONS, AND ALSO REALLY GOOD ANSWERS. BECAUSE SOMETHING WE AS THIS COUNCIL ARE HAVING TO FACE IS, WE DELAYED A LOT OF HARD DECISIONS DURING THE PANDEMIC BECAUSE PEOPLE WERE OUT OF WORK, DOWN ON THEIR LUCK, AND WE KEPT THEM STABILIZED. NOW WE ARE HERE, HAVING TO CONFRONT THAT. I MIGHT ASK, CHAIR, SINCE I HAVE TO LEAVE, CAN WE VOTE AT THIS AT THE NEXT MEETING? >> YES, THANK YOU. YEAH, I THINK I WOULD LIKE MORE TIME TO WRAP MY HEAD AROUND THIS AND ASK FURTHER QUESTIONS. AND SO , OH, YES? COUNCILMEMBER MOORE? >> YES. THANK YOU. I WOULD APPRECIATE NOT BEING ABLE TO VOTE ON THIS TODAY. AND I JUST -- HEADS UP, WILL PROBABLY BE BRINGING AN AMENDMENT AROUND THE RATE PATH. I THINK I VERY MUCH APPRECIATE THE FACT WE ARE TRYING TO KEEP NOT STICKER SHOP, 5.4, BUT WE CAN DO 5.4 DURING -- GOING FORWARD. UNLESS I HEAR WHY WE CAN'T DO THAT. JUST A HEADS UP, I STARTED THOSE CONVERSATIONS WITH CENTRAL STAFF. ALSO, I WANTED TO PUT A PLUG IN AND THINK COLLEAGUES FOR NOTING THE UTILITY DISCOUNT PROGRAM. THAT'S INCREDIBLY IMPORTANT. I APPRECIATE ALL THE WORK YOU ARE DOING TO INCREASE THE AMI AND ECHO THE COMMENTS OF COUNCILMEMBER STRAUSS. I WOULD LOVE TO BE HELPFUL WITH THAT. JUST -- THANK YOU BOTH, COUNCILMEMBER STRAUSS AND COUNCILMEMBER SAKA FOR YOUR COMMENTS, TOO. THANK YOU, CHAIR. >> SO I WILL ACKNOWLEDGE FURTHER DISCUSSION IS NEEDED BEFORE VOTING TODAY. WE WILL NOT VOTE ON IT TODAY. WE WILL CONSIDER IT FOR THE AUGUST 16th COMMITTEE ME, THANK YOU SO MUCH. THANK YOU, COUNCILMEMBER STRAUSS. AND WE HAVE -- IT LOOKS LIKE WE HAVE REACHED THE END OF TODAY'S MEETING AGENDA. IS THERE ANY FURTHER BUSINESS COMING FROM THE COMMUNITY BEFORE WE ADJOURN? HEARING NO FURTHER BUSINESS, THE TIME IS NOW 11:19, AND WE ARE ADJOURNED. THANK YOU. ♪