Jun 07 2010
Council approves legislation to limit capital spending and audit expenditures at City Light
Press Release issued on Monday, 6/07/2010:
Seattle – Today, the Seattle City Council approved Resolution 31219 establishing new protocols for City Light to use when seeking approval for large capital projects. This new process was developed following challenges City Light experienced in providing the Council with information related to meeting power demands in the South Lake Union area. Councilmember Bruce Harrell asked the City Council to retain Energy and Environmental Economics (EEE) to establish best practices for determining the process by which capital projects are approved.
The new protocols guided by the recommendations of EEE are designed to enhance communication between City Light and the Council and augment the Council’s ability to review the Capital Improvement Plan (CIP) during the budget process. It will be a tool for Council to use when it analyzes the need for new capital expenditures. These protocols will also be conducive to third party review. This effort is part of the larger scale, strategic planning at City Light which will establish priorities of what projects are immediately necessary and what expenditures can be eliminated or strategically deferred.
“Passage of this resolution will help guide Council’s decisions on future capital expenditures by requiring the Utility to provide justification for significant projects,” said Councilmember Bruce Harrell, Chair of the Energy, Technology and Civil Rights Committee. “Large, unmonitored capital projects can increase customer rates and it is critical to have a thorough analysis of any factors that have a tendency to increase rates.”
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