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Seattle City Light How Do We Fill the Gap? Choices 900 Seattle's Growing Gap Between Supply and Demand for Our Future 700

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Seattle City Light How Do We Fill the Gap? Choices 900 Seattle's Growing Gap Between Supply and Demand for Our Future 700 Our Electricity Our Environment Seattle City Light How Do We Fill The Gap? Choices 900 Seattle's Growing Gap Between Supply and Demand for our future 700 Seattle must make some difficult decisions this year. 500 Hot weather and deregulation have sent electricity prices off the charts in the West. At the same time, our 300 Additional Power We'll Need demand for power is growing here at home. Megawatts* Average 100 Competition is fierce for the electricity to serve that 0 growth. WeÕve embarked on a plan to help us become 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 independent from todayÕs unstable power markets. Year * One average megawatt serves 820 Seattle homes We believe it leads to greater reliability for our electric system at an affordable price and with better results for the environment. And we need you, because you are part of the solution. Why do we need more electricity? SeattleÕs commercial growth is strong Ð in office buildings, computers and communications. And these businesses are big users of electrical power. At the same time, some of our power supply contracts are expiring. So where do we get the power we need? We have several choices, but all come with a cost. ● We can buy power from the Bonneville Power Administration which markets the electricity produced by the federal dams on the Columbia. But supplies are limited. ● Power from natural gas plants is another option, but even the most efficient units contribute to global warming. ● We can and will accelerate our commitment to energy efficiency, taking advantage of the most advanced technologies in the marketplace. In the Earth Day Resolution passed earlier this year, the Mayor and Seattle City Council directed City Light to double its rate of conservation savings. ● We can invest in renewables such as wind, geothermal and solar power. The Earth Day Resolution also directs City Light to meet load growth with energy from renewable sources Market Power wherever possible. (Our highest 53.0 2000 cost) ● Finally, we can compete with other utilities for power on the open market, but prices can be volatile and supply uncertain. In recent months the cost of market power has skyrocketed, and prices are predicted to remain high. Rooftop Solar 37.7 Photovoltaics Some combination of these sources will serve Seattle’s growing need for reliable electricity. But what combination is best for us? Central Station 15.6 Photovoltaics Fuel Cell 9.7 Market Power (Our Cost of electricity 8.1 highestBiomass 1999 cost) 7.4 Geothermal ConservationSmall (High HydroCoal range) Gasification 5.9 5.5 5.5 MunicipalWind WasteIndustrial IncinerationLandfill Cogeneration GasMontana Coal Plant 4.9 Long-termNatural Contracts GasCentralia Combustion Coal Plant Turbine in cents per kilowatt hour 4.6 4.4 4.2 4.0 3.8 BPA Mix 3.3 3.1 3.1 Conservation (Low range) 2.4 SCL's SkagitSCL's Project Boundary Project 1.5 1.1 Market Power (Our Sources: Seattle City Light/ Pacific Northwest 0.6 0.2 lowest 1999 cost) Regional Power Planning Council/City Light 2000 Conservation Potential Assessment/ Mix of carbon- and non-carbon producing sources Non carbon-producing source Carbon-producing source March 2000 Natural Gas Forecast. Power we own Our Hydroelectric Legacy is Our Strength Early in the last century, SeattleÕs leaders had the vision to sells the surplus to other utilities and uses this income to build a city-owned hydroelectric system to serve our cityÕs defray operating costs. This means our customers pay less. needs. Fueled by snowmelt and spring runoff, these In fact, City Light customers enjoy the lowest power bills of plants provide non-polluting power at about a penny any major U.S. city. per kilowatt hour. Our plan builds on this vision of renewable, affordable and But itÕs more than just clean, affordable electricity for our reliable hydroelectric energy. It adds more federally-pro- homes and businesses. At many times during the year, rain- duced power, new renewables such as wind, solar and geot- fall and river flows are so abundant that we generate more hermal, and low-impact natural gas to enhance stability and power than our customers need. At these times, City Light ensure that our legacy of clean, affordable power will be enjoyed for generations. How City Light met Seattle’s Power we buy needs in 1999 Market Power Bonneville Power Administration 21% Boundary Seattle purchased 17% of its electrical needs in 1999 from this 26% federal power agency. The contract ends in September 2001 and Seattle is working on a new agreement that includes more elec- tricity from this source. At around 2.4 cents per kilowatt hour, BPA power is among our least costly alternatives. BPA Skagit Long-Term Contracts 17% Long-term Other Hydro 22% contracts 1% Seattle meets about 13% of its needs through long-term contracts 13% and agreements with other utilities, including Grant County Public Utility District and British Columbia Hydro. All of SeattleÕs long-term contract power comes from hydroelectric facilities. In 1999, the average cost of this power was 3.3 cents per kilowatt/hour. Choices Wholesale Market Electricity Regulatory changes in the utility industry make electricity to make us independent an actively traded commodity. In California this year, the com- bination of deregulation, economic growth and hot weather has created unprecedented prices for electricity. In July, this power How City Light plans to meet cost City Light 53 cents per kilowatt hour. Some California utili- Seattle’s needs in 2005 ties paid three times this amount. Right now Seattle residential Renewables customers pay 4.6 cents per kilowatt hour for electricity deliv- BPA 5% Boundary 33% 23% ered to their homes. To cover this growing expense, City Light has asked the Seattle City Council to temporarily add ten per- cent to the power portion of our customersÕ bills. This will add about three dollars per month for the average residential customer. Even with this, Seattle Skagit electricity rates will continue to be the lowest in urban America. 20% Long-term Combustion Other Hydro But to keep them that way and secure our future, we must contracts Turbine 1% 10% 8% become independent of unstable wholesale power markets. Skagit Project Boundary Dam Our three large Skagit dams com- Skagit Pend Boundary Dam is SeattleÕs largest, providing River Oreille prise 27% of our generating capacity. Columbia River 38% of our generating capacity. Rain and River While some of this is sold, most is runoff patterns in northeastern Washington Snake used right here in Seattle. We oper- River mean that about one third of BoundaryÕs power ate these dams in ways that protect is surplus to SeattleÕs needs and can be sold. the fish. They are upstream of the This dam is also upstream of salmon spawning riverÕs salmon runs, and water is areas. We are cooperatively working with tribes released or held back according to and other agencies to study and enhance resi- the needs of the fish. dent fisheries at Boundary. Conservation Savings Meet Half of Load Growth for Seattle City Light 300 Seattle’s Projected Growth in Electricity Use Without Conservation 250 200 Choices Total Energy Saved 150 that you make Average Megawatts (aMW) Average 100 More than 20 years ago, Seattle chose the path that led to our internationally recognized conservation program. It 50 Seattle’s Actual & Projected Growth remains our first priority. Every kilowatt we save is one less in Electricity Use With Conservation 0 we have to generate or buy. And it saves us all money. 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Since 1977, Seattle has saved enough energy to electrify WeÕre working hard right now with all our customers all the homes in our city for 18 months. ThatÕs 5 billion kilo- on new and creative ways to improve efficiency through watt hours of electricity generated without burning innovations in energy-efficient lighting technology, one cubic foot of natural gas or a single lump of coal. improved industrial motors and controls, and super-effi- cient building standards. Wholesale Market Electricity Prices Since 1996 $200 WeÕve set out to double our conservation program Ð an $180 Prices Through ambitious goal. In the past, the conservation choices $160 August 2000 you have made have helped us cut our electricity load $140 growth in half. Those choices have saved you money $120 as well. You can continue to help Ð and save Ð by every- $100 day choices you make: turn off lights when you donÕt Forecast Prices for need them, turn off the computer when youÕre done Dollars/MWh $80 Prices in Remainder of 2000 Past Years $60 using it, wash your clothes in cold or warm water and 1998 run big energy users like clothes dryers at night when $40 2000 1999 power costs less. $20 1997 1996 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Focus on Fish Seattle is proud of its record on salmon. We operate our Skagit hydroelectric dams to protect fish first, generating power around the needs of the fish. The results are impressive. The Skagit River’s native Pink and Chum salmon runs are the largest in the Northwest and were ranked “extremely” healthy by the American Fisheries Society. Our Choices must be good for our environment Since 1990, Seattle’s conservation programs have kept 975,000 tons of carbon diox- ide out of our atmosphere. This is the equivalent of taking 22,000 cars off the road for nine years. Global Warming The effects of global warming are real.
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