Apr 26 2009
Seattle City Light Financial Situation:
It is Time to Get Creative
You may have tuned in to the Energy and Technology Committee meeting of April 1, 2009, and heard the presentation and ensuing discussion with City Light Superintendent Jorge Carrasco. The presentation painted a dire picture of the Utility’s current financial condition. In my opinion, the Utility’s proposed solution to cut some core customer service elements were presented as a precursor to a request for a rate increase. In a press release dated, April 1, 2009, Mayor Greg Nickels proclaimed that he would not request a rate increase in 2009 and that he is supportive of the proposed cuts. On April 9th, Council President Richard Conlin and I co-wrote a letter to the Superintendent, requesting that the Utility re-examine many of their cuts. Our concern was that some may be ill-advised and could possibly produce unintended consequences. For example, cutting costs in tree trimming, which is designed to reduce the frequency of power outages, may not produce the actual savings we desire. Also, City Light’s proposed cuts to conservation may not recognize the value of conservation by the freeing up of energy and therefore may overstate the net savings to the Utility. When making budget cuts, I would like the net savings to be measurable, predictable, quantifiable…and most of all…real.
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