KPLU Local News
(2010-03-05)
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A City Light surveyor measures snow depth last year.
City of Seattle photo.
In a normal year, Seattle City Light gets enough power from its hydroelectric dams to serve all its customers and then some. The utility projected it would generate $120 million dollars in surplus sales this year. But the mild winter has now reduced that projection by at least half. Snow pack is at its 8th lowest level in 50 years.
"This is certainly the effects of global warming, the effects of climate change, the effects of el Nino," says Seattle City Council Member Bruce Harrell, who chairs the energy technology and civil rights committee. He says they're considering setting up a new rainy day fund for City Light.
"This fund, we'd like to get to the amount of $100 million." Harrell says it "will allow us to deal with this fluctuation or volatility that we've had to address for several years."
But getting enough money to create the fund may require at least a temporary rate hike for electricity from Seattle City Light.
In the past Seattle has opted for keeping rates low rather than setting money aside. But City Light Superintendent Jorge Corrasco says the weather has become so unpredictable, it's time to do what cities such as Tacoma did long ago.
"Other utilities, knowing the hydro volatility, decided we'd rather build reserves over time. So that when you had bad water years, you had some buffer that can help us. And in my view, we need to move in that direction."
The city estimates a temporary rate hike of 3% could generate about 18 million dollars in a year. It would cost the average household about $17 and might be refunded in subsequent years if there's a surplus. Seattle's City Council is to decide the issue in the next month. © Copyright 2012, KPLU
