Tuesday, January 09, 2001, 12:00 a.m. Pacific

City Light proposes 18 percent increase in electric rates

by Mark Higgins Seattle Times assistant metro editor Seattle City Light wants to raise electric rates an additional 18 percent, but for customers the worst may not be over.

City Light could be back this spring seeking a larger increase if California's power crisis deepens or the winter's dry spell worsens, Superintendent Gary Zarker acknowledged yesterday under questioning from City Council members.

"There are many uncertainties that could drive prices even higher," Zarker said. Not only is the price of California power unpredictable, but the Bonneville Power Administration is expected to raise its wholesale rates at least 17 percent and maybe more on March 9, Zarker said.

City Light's proposed 18 percent increase, which is subject to council approval, is in addition to a 10 percent surcharge that kicked in just last week. Both increases are expected to last about two years.

The combined 28 percent increase would mean the average residential bill would rise to $48 a month from $39 starting on March 1. Commercial and industrial rates will likewise rise by 18 percent.

The council's energy committee will hold public hearings on the rate proposal tomorrow and Friday, and the council could vote as soon as next week on the new rates.

"We're in the middle of a crisis, but for Seattle's citizens it will be short-lived,'' Mayor Paul Schell pledged. Seattle recently secured a 10-year contract for electricity from BPA and an additional source of energy from a gas-powered plant in Klamath Falls, Ore.

Those two new sources will kick in later this year and further insulate the city from having to buy expensive out-of-state power during winter and spring months. City Light also is looking into buying a small amount of wind-generated power.

"Nevertheless, despite our foresight, for the next nine months, we'll suffer from California's sadly mistaken deregulation policies which have opened the way for price-gouging market manipulation by power companies and power brokers down there,'' Schell said.

The most important thing customers can do, Schell urged, is to conserve energy now. City Light will spend $500,000 on a radio, television and print campaign over the next seven weeks to try to convince people to conserve 10 percent at home and at work by turning off extra lights, computer monitors and running major home appliances during evening hours.

City Light is also considering giving every interested ratepayers a free fluorescent light bulb in February to convince people to make the switch to more energy efficient bulbs.

A 10 percent reduction in power usage in January, when demand is high, would save City Light $500,000 a day, according to the public utility.

"We've got to insulate ourselves as much as possible from the wild price gouging of the energy market,'' Schell said. "We've got to conserve. We've got to save electricity. Each and every one of us."

The city also has taken the stand that it has no surplus power to sell to California, despite a recent request by U.S. Energy Secretary Bill Richardson that it do so, Zarker said. The city is also developing a legal strategy to further protect its ratepayers.

Meantime, Zarker suggested, pray for rain. More precipitation means the city can generate more hydropower at its Western and Eastern Washington dams. The weather in November and December was the third driest in 75 years, according to City Light.

"Maybe the happiest news is it's pouring rain outside," Zarker said yesterday.

INFORMATION

Hearings on rate hike The Seattle City Council's energy committee will hold an emergency public hearing on the City Light proposal for a rate increase at noon tomorrow. A second public hearing will be 2 p.m. Friday. Both hearings will be in the 11th floor council chambers at City Hall

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-- Martin Thompson (mthom1927@aol.com), January 09, 2001