Jan 13 2011
Press Release: January 12, 2011
Council action reaffirms utility’s financial ratings
Seattle – The Seattle City Council today approved a utility bond refinance and an issuance of new bonds that saved Seattle City Light and its customers $10 million.
“Last year we created the $100 million Rate Stabilization Account and developed a strategy to change our financial policies to protect customers from unreasonable rate increases caused by wholesale revenue shortfalls,” said Councilmember Bruce Harrell. “Savings from this bond sale will help keep rates low.”
City Light’s rate of 6.88 cents per kilowatt hour is the lowest in the country among the top 25 cities. The national average is 9.89 cents. San Francisco’s rate is 13.47 cents and Los Angeles’ is 11.80 cents. When adjusted for inflation, City Light’s rates are lower than they were in 2004.
An element of this action is the Clean Renewable Energy Bond where City Light will receive subsidies from the Federal Government for expenses related to renewable energy.
Last year, City Council’s approval of a bond sale resulted in $57 million in savings and set the stage for City Light’s favorable bond ratings of AA- (Standard & Poor’s) and Aa2 (Moody’s) which allows City Light to borrow at a lower interest rate. This year’s bond sale reaffirms the strength and competitiveness of the utility and its commitment to its customers.
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