Electricity rates to go up again; it won't be last time, City Light warns

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Seattle City Light customers will pay an average 9.3 percent more for electricity starting in July, the third rate increase this year - but a mild hit compared to the jump expected in October.

The City Council approved the increase 6-0 yesterday. Like the previous average increases of 10 percent in January and 18 percent in March, this increase is considered a temporary surcharge, expected to be removed in 2002 or 2003.

The increases, as well as a new, higher rate approved yesterday for the top 1 percent of users, are meant to encourage conservation and raise money to repay $250 million City Light has borrowed to keep up with soaring power costs.

"This is to shore up City Light's financial solvency," said City Councilwoman Heidi Wills, who heads the council's energy committee.

City Light usually buys 10 to 15 percent of its power on the open market. Dry conditions have forced City Light to buy 10 percent more and deal with prices that have increased 10- to 20-fold, said Gary Zarker, City Light superintendent.

The 9.3 percent is an average, and residential customers are likely to pay a little less than that and commercial users are likely to pay a little more.

For the average residential customer in Seattle who pays $51.05 a month now for 860 kilowatt-hours, July's bill will rise to $55.26. City Light will also begin charging a new rate for residential customers who use more than 1,800 kilowatt-hours a month in the summer and more than 3,750 kilowatt-hours a month in the winter.

Worse news is around the corner. Next month, the city is expected to learn how much more the Bonneville Power Administration will charge City Light for a new power contract.

Starting in October, the increase could be about 22 percent, or $10 to $13 a month for the average residential customer, Zarker said. That's the rosiest forecast.

If the BPA fails to get local utilities such as City Light to conserve and buy less, and fails to persuade several aluminum companies to stop production and stop using so much electricity, the 22 percent increase would be much higher, he said.

The increase to come from the BPA would affect all City Light customers while the increase approved yesterday would exempt low-income households.

Beth Kaiman can be reached at 206-464-2441 or bkaiman@seattletimes.com.