Seattle City Council Transportation & Utilities Committee Special Meeting 92520

I have 2020 special meeting of the Transportation and Utilities Committee will come to order.

The time is 930 AM.

I'm Alex Peterson, chair of the committee.

Will the clerk please call the roll?

Gonzalez.

Here.

Herbold.

Morales.

Here.

Strauss.

Present.

Chair Peterson.

Here.

Great.

So we have a quorum.

If there's no objection, today's proposed agenda will be adopted.

Hearing no objection, the agenda for today is adopted.

This will be an electrifying committee meeting because it's all Seattle City Lights.

And I want to take a moment to thank all the workers from Seattle City Light who have been restoring power during these rainstorms.

You know, we see the occasional outage down trees, et cetera.

And those crews are out there in the middle of the night in the pouring rain, fixing things for all of us.

And so I just want to have a shout out to them.

The City of Seattle is fortunate to operate two major utility enterprises, Seattle Public Utilities and Seattle City Light.

And this also keeps the City Council busy with a large volume of legislation, which is why we're here today as we get ready for our fall budget season to handle some of this business that Seattle City Light's been working on and presenting to us today.

The first three items, there are five items on the agenda.

The first three items relate to electrification of the transportation infrastructure.

The second half of the agenda concerns two technical items for Seattle City Light.

So at this time, I'd like to open up the remote public comment period.

I'll ask that everyone please be patient as we learn to operate this new system in real time and navigate through the inevitable growing pains.

We're always looking for ways to fine tune this process and add new features to allow additional ways for public participation in our council meetings.

remains the strong intent of the City Council to have public comment regularly included on meeting agendas.

However, the City Council reserves the right to modify these public comment periods at any point if we deem that the system's being abused or it's unsuitable for allowing our meetings to be conducted efficiently and in a manner in which we're able to conduct our necessary business.

So I'll moderate the public comment period in the following manner.

We'll have it up to 20 minutes, and each speaker will be given two minutes to speak.

I'll call on two speakers at a time and in the order in which they're registered on the council's website.

If you have not registered to speak but would like to, you can still sign up before the end of this public comment period by going to the council's website at seattle.gov forward slash council.

The public comment link is also listed on today's agenda.

Once I call the speaker's name, staff will unmute the appropriate microphone and an automatic prompt of you have been unmuted will be the speaker's cue that it is their turn to speak.

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As a reminder, public comment should relate to an item on today's agenda.

Speakers will hear a chime when 10 seconds are left of the allotted time.

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Once you've completed your public comment we ask that you please disconnect from the line and if you plan to continue following the meeting please do so via award-winning Seattle Channel or using the listening options listed on the agenda.

So the public comment period is now open.

We'll begin with the first speaker on the list, which is Alice Lockhart, followed by Leah Missick.

Go ahead, Alice.

Good morning, Council.

This is Alice Lockhart with 350 Seattle.

And we were actually asked by a community member to comment on the City Light Transportation Electrification Strategic Plan.

What a mouthful.

A plan has really great aspirations, but like most governmental climate plans, it is missing metrics.

It has no metrics, no hard and fast timeline, and no commitment to total electrification by a specific state.

That's, of course, a problem.

We are all a little busy right now, Council and 350 Seattle, trying to defund SPD and save transit and housing and human services.

But City Light's core competency should be achieving electrification.

It would be really great if before the council vote on this plan, council could ask for it to be amended such that at least the next step section includes a strong commitment with a timeline to develop an actionable, measurable, time-based plan for reaching 100% electrification by a date commensurate with the climate crisis, say 2030. The climate crisis has a timeline and our government plans to deal with it really should also have timelines.

Um, and this might be, if the council opted to ask for that the first time I've seen such a government plan with the timeline and metrics in, um, our region, it would be great.

It's, um, and you you're the ones to do it.

Thank you so much.

Thank you.

Our next speaker is Leah Missick, followed by Thomas Ashley.

Go ahead, Leah.

Hi, good morning.

My name is Leah Missick, and I'm the Washington Transportation Policy Manager at Climate Solutions.

We're in strong support of Seattle City Light's Transportation Electrification Strategic Investment Plan and the ordinance that would grant City Light the authority to offer transportation electrification incentive programs.

The transportation sector is responsible for the largest share of Seattle's greenhouse gas emissions and air pollution.

As the Washington Environmental Health Disparities Map so clearly shows, this pollution is also not felt equally.

It is urgent, both for the climate and for our health, that we power our transit, our freight, and other vehicles with City Life's 100% clean electricity.

Without utility support, we will not be able to rapidly electrify at the rate that's necessary to meet Seattle's climate goals.

Legally, the city must grant City Light's authority to start this work so we can legally move forward with developing a more detailed implementation plan, including program development based on extensive community outreach, particularly with environmental justice communities.

Any and all vehicles on the road need to be clean.

This is a step in that direction.

It is also a benefit to all of City Light's customers, since this will put downward pressure on rates, not to mention the positive health impacts from reduced air pollution.

We cannot delay climate action any longer.

The more time we take to cut emissions, the harder it will be to do what must be done.

Thank you for the ability to comment today, and I urge your support.

Thank you.

Thank you, Leah.

The next speaker is Thomas Ashley, followed by Michael Ruby.

Go ahead, Thomas.

Good morning.

Thomas Ashley speaking in strong support of City Light strategic investment plan to support transportation electrification.

I'm vice president of policy and market development for Green Lots, which is a leading electric vehicle charging software and services company.

And I just want to communicate Green Lots, very strong support for the strategic investment plan.

which frankly is one of the most robust and we believe well-balanced and thought-out plans that we have seen in this space.

We urge your Chair Peterson's and the council members' support for the plan.

And also wanna highlight that there really is no better time thus far for Seattle to affirm its commitment to the community and residents, and indeed the world, of its support for a healthier community and a zero emissions future.

Thank you.

Thank you, Thomas.

Our next speaker is Michael Ruby, followed by Rachel Ludwick.

Hi.

I am Mike Ruby, I live in Wallingford.

Gertrude Stein famously said of Oakland, there is no there, there.

That summarizes what I have to say about the City Light Transportation Electrification Strategic Investment Plan.

There is no plan there.

This plan does nothing to convince the reader that City Light appreciates the scope of what is required to move forward the electrification of Seattle's vehicle fleet.

I urge you to send this plan back to City Light for further development and more information.

that will demonstrate that City Light understands what it needs to do in providing the infrastructure and power capacity that will be needed to achieve Seattle's climate goals.

The plan is summarized in two places, the tables on page 13 and 14 and page 20. These are all reasonable, high-level priorities, and the offered examples would all be useful.

But that is not enough.

There is nothing there or anywhere else in the plan that documents that it is convincing that City Light understands the magnitude of the task before us and is preparing to meet it.

The priorities and examples are sufficiently vague, really nothing more than a catalog of good ideas, that City Light could do very little and still be able to say they met the plan's intent.

The study from Rocky Mountain Institute in your docket evaluates three scenarios for future penetration of electric vehicles in the Seattle automobile market.

Only the aggressive scenario will take us to Seattle's adopted goal of 30% of the automobile fleet electric by 2030. The proposed plan does not give any indication that City Light is building the capability or capacity to support the aggressive scenario laid out in the Rocky Mountain Institute study.

In addition to the resolution adopting the plan, City Light has sent you two ordinances supporting the plan.

These ordinances are needed and should be forwarded to the council due pass.

But the plan itself needs much more work, and the city council needs to be clear to City Light that it expects more.

It is certainly reasonable to ask them to come back to you in December with a more useful and convincing document.

Thank you, Mr. Ruby.

Next speaker is Rachel Ludwig, followed by Rachel Brumbaugh.

Go ahead, Rachel Ludwig.

Hi, my name is Rachel Ledwick.

While I actually think much of this plan from Seattle City Lights electrification plan is fine, we're preparing for our in progress Boston Trans electrification and for electrified freight, and that's great.

This largest single source of carbon emissions in Seattle are from personal passenger vehicles.

Even the most optimistic scenario in the Rocky Mountain Institute study, as the previous commenter noted, only gets us to 30% of passenger vehicles being converted to EVs by 2030. which means mode shifts are going to be incredibly important if we want to achieve climate goals, because that's still a lot of carbon emissions in 2030. The presentation includes a slogan of just saying no to one-to-one ICEDV, but very little in this plan would discourage that happening.

Bikes and personal mobility are mentioned, but none of the suggested offerings apply unless you drive a car.

We do not encourage giving up cars.

Shell Sea Lights incentives are not aligned with the city's climate and transportation goals to shift modes to less harmful ones, Every EV charged helps SEL's budget, but electric cars have costs.

Air and water pollution due to tire and brake dust, congestion and injury and death.

The electricity comes from our hydroelectric system, which is great, but it still harms waterways and our habitats for salmon and other life.

We should be electrifying our vehicles, but we should also be trying to reduce our electrical use.

Reduction of harm in transportation demands mode shift.

SEL's plans should reflect more than what is efficient for the utility or for rate payers, But what serves all our communities now and in the future, this plan is not that.

We should certainly have electric charging stations, but our plan for transportation electrification for personal transportation should support more than electric cars.

Thank you so much, City Council, for looking at this.

Thank you, Rachel.

Our next speaker is also Rachel.

Rachel Brombaugh, followed by Arvia Morris.

Go ahead, Rachel.

Hello, my name is Rachel Brumbaugh, and I'm the acting director of Climate and Energy Initiatives in the office of King County Executive Dow Constantine.

I'm speaking in support of City Light's Transportation Electrification Strategic Investment Plan.

The transportation sector produces the highest amount of carbon emissions in King County.

It is time to urgently address the transportation sector to reduce tailpipe emissions and benefit from clean sources of electricity.

We recently transmitted King County's 2020 Strategic Climate Action Plan to the King County Council.

Vehicle electrification is a key strategy to reaching our shared countywide emission reduction targets of 50% by 2030. The plan supports this goal.

The electrification of our transit fleet is also a key component of our plan, and City Light has partnered with King County Metro on the development of a south-based test facility where the first 40 long-range battery electric buses will charge.

City Light has provided valuable input and guidance on design, timelines, technical solutions for rates and load management that promote low-cost, low-impact solutions.

Climate justice is also a priority for King County, as it is for Seattle.

We support the plan's focus on addressing environmental inequities endured by near-road communities and seek to work in partnership with City Light and frontline communities on equitable solutions.

King County supports the Transportation Electrification Strategic Investment Plan, and we look forward to collaborating.

I thank you for the opportunity to testify today.

Thank you, Rachel.

Next up is Arvia Morris, followed by Philip Jones.

Go ahead, Arvia.

Hi, my name's Arvia Morris.

I live in Wallingford, and I'm a climate activist and work with many different groups.

The plan says the right things at a very high level.

It's not clear how benchmarking and reporting on progress will be achieved.

Where is accountability for being in sync with the city greenhouse gas reduction plan?

Accountability issues, there's no, I have no confidence because in 2017, 20 fast chargers were supposed to be installed by 2020. And I don't believe this happened.

I think that we're well below 20 chargers.

So how are we gonna achieve all of these big goals, vague goals in the plan?

Are these goals even sufficient for the city to meet 80% emission reduction by 2030?

How does this fit with the Seattle City Light Plan of 30% electrification of light-duty vehicles by 2030?

These goals seem well below what is needed to meet the city's targets, and it's not clear that this plan will even achieve that 30% electrification of light-duty vehicles.

People will want to drive electric cars when they are confident they can get a charge.

There are many barriers to multi-dwelling charging.

Charging in multi-dwelling units is mentioned, but no specific goals such as number of buildings with EV on site are not.

These are just a few of the issues with the vagueness of the plan.

The faster we electrify, the more people will be spared a chronic disease and death.

The planning must include more ambitious, more term goals, more trackable targets so the public know we are seriously aiming to achieve our GHG goals.

70% of all GHG comes from cities.

City policies matter.

The public wants to have accountability to our GHG goals.

Thank you.

Thank you, Arvia.

Next up, Philip Jones, followed by Robert Goetsch.

Go ahead, Philip.

Thank you, Chair Peterson, members of the committee.

My name is Philip Jones.

I'm a resident of Seattle, North Capitol Hill.

I served as a utilities commissioner.

in Olympia for 12 years under Governor Gregoire and the current governor, worked heavily on issues like transportation, electrification, and storage.

And I'd just like to say to some of the folks on the phone, it took three tries to get 1512 passed.

And I was a commissioner for part of that.

And we wasted some time there just getting the gift of public funds that we go with.

So I understand that some people want to go faster.

but we've already spent a few years trying to get the legislation passed.

This is a, as Tom and Rachel said, this is a state of the art plan.

It's not focused on strategy as much as implementation.

It is very difficult to build public charging stations and get steel in the ground and get this, uh, get things going.

So I think we should try to work with a plan.

It has a strong emphasis on equity.

I work in 25 states around the country, and this is probably one of the best plans, especially on the equitable access issues for both transit, heavy duty, and then light duty vehicles.

It's also very good on the stakeholder process, and they've set up an excellent stakeholder process with the BIPOC communities, the ports, King County Metro, and others.

So I think you should be proud of this plan.

It's ripe.

It's ready to be implemented.

Just let me say one last thing.

The hybrid model of own and operate, as well as working with where City Light owns and operates infrastructure, as well as third parties, is well-crafted.

And multifamily units especially need the emphasis of Seattle City Light to build out and actually own and operate the infrastructure.

Thank you.

Thank you, Phillip Jones.

Next, we have Robert Goetsch followed by Iris Antman.

Go ahead, Robert.

Hello, thank you, council members, for the time today.

I'm here to strongly support the electric location plan and ordinance put forth by Seattle City Light today to go to full council on the 6th, and it's far past the time for a plan like this.

But my support does come with a caveat.

The plan indicates quite clearly that we shouldn't do one-for-one EV replacement, and alludes to the importance of personal mobility options outside of electric vehicles.

And I love that, and I thank you guys for noting that.

The problem for me is twofold, is that the action steps here don't reflect those priorities.

And from what I can tell, won't reflect those priorities until much later in this process, if at all.

I would love to see further updates to the plan to factor in how SEL can help improve other light electric vehicles, like scooters and bikes, to be better used and charged within our city.

The other issue that we have here is with council, quite frankly, and it is the process in order to get the systems in place that we need to decarbonize our city, like bike lanes and bus lanes.

It should not take a three-year process to design a simple pipeline.

It should not take 20 years to fix the Berkeley Trail.

We need to begin, we shouldn't take 300 years to build out our sidewalk network.

We cannot decarbonize without these things.

And it's time, it's well past time to do these things.

So I encourage SDL to meet those goals that it states that it has and find ways to get over the bureaucratic hurdles between different departments and be a booster of these items and products services that can get us around town.

SDL could be the biggest booster of these light electric transportation options.

And I know there are a million reasons under the sun why it would be difficult or something that it seems like you can't or should not do and oversteps intergovernmental lines.

I strongly encourage you to fight past that because we do not have the time to be stuck on these things.

And unlike the last commenter's note that we need to be patient here, We don't have the time for patience, and you all know that.

So I thank you for your time today, and I hope you have a wonderful weekend.

Thank you, Robert.

Iris Ammon, followed by Annabelle Drayton.

Go ahead, Iris.

Thank you.

Hi, my name is Iris Ammon.

Thank you for taking my comments this morning.

We're in a climate crisis, and we all need to take bold steps to address this.

SCL is in a position to do so.

The ordinances you propose to incentivize switching to electric vehicles for customers are potentially helpful measures and should be passed.

However, the transportation electrification plan you have put forth falls far short of what is needed now to meet our 2030 goal of having 30% of vehicles in Seattle electric.

As proposed, it may not even meet a 10% goal.

This is not nearly sufficient.

I encourage this committee to reject this resolution and ask SEL planners Please to rework the plan and return to the council in December with recommendations in line with the goal of 30% of automobiles in Seattle be electric vehicles by 2030. In addition, we need a much more aggressive public EV charger program.

We have clean electricity in Seattle.

We must maximize its potential to have a meaningful effect on mitigating climate change.

If there's any place in the U.S. that can be a success at electrification, It is Seattle.

Thank you very much.

Thank you, Iris.

And committee members, we have just three more speakers.

We've got Annabelle Drayton, followed by Kimberly Kitchen.

Annabelle, go ahead.

Good morning.

My name's Annabelle Drayton.

I'm a policy associate with the Northwest Energy Coalition, an alliance of over 100 member organizations united around clean and affordable energy.

My work focuses on the intersection of the transportation and utility sectors And I've worked with each Northwest utilities at various levels on the design of their transportation, electrification plans and programs.

I'm here in support of the transportation, electrification, strategic investment plan.

And I urge you to adopt resolution 31971 and to pass Council Bill 119895. Electric utilities have an obligation to reliably, efficiently and affordably serve their customers.

And as electric vehicle adoption of all vehicle classes continues to accelerate, It is imperative that Seattle City Light take proactive steps to support the efficient integration of this new load.

Proactive planning is imperative to ensure direct and indirect benefits accrue to all customers, especially to frontline communities and low-income households who are disproportionately impacted by air pollution and higher transportation energy burdens.

The T-CIP's priority investment areas were developed through meaningful input from stakeholders and community members and aligned with community needs.

The transportation electrification strategic investment plan includes several commitments by Seattle City Light, including to continue inclusive collaboration geared towards developing programs that help advance racial equity, to integrate demand-side management components and new program offerings to avoid or reduce the need for traditional transmission and distribution system upgrades and optimize the grid.

This is essential to support greater access to affordable energy for Seattle City Light customers.

And to continue shaping metrics through our participatory process that will help evaluate equitable access to TE, reduce carbon emissions, grid management outcomes, and other important factors that relate to transportation, electrification, utility investments.

These are essential components of transportation planning and will help guide Seattle City Light's TE program design and implementation in collaboration with stakeholders and environmental justice communities moving forward.

Thank you, Annabelle.

Next up, we have Kimberly Kinchin, followed by Robin Briggs, and Robin Briggs is our last speaker.

Go ahead, Kimberly.

Thank you, City Council.

My name is Kimberly Kinchin, not Kitchen, for the record.

I live on Capitol Hill, and I'm commenting on Resolution 31971. This legislation is such an easy win.

EVs are very sexy, and they don't require any major changes or sacrifices from people who drive or from anyone at all, really.

And that's actually a problem, because we're at a point in the climate crisis when EVs are not going to save us.

They're not zero emissions.

When you look at the byproducts, they're use a manufacturer creates.

And easy wins in the climate crisis are hardly ever the most effective solutions.

Unfortunately, it took a pandemic for us to see one very effective solution when at the start of lockdown, people drove their personal vehicles a lot less and within a week or two, our air quality improved by undeniably significant measures.

That wasn't a 10-year time frame like this proposal.

It took only weeks.

Most drivers could drive less, most of them could, but communicating that is not sexy and too many of us appear not to even want to try to ask that.

So we do need a campaign that something like the federal government created when it encouraged people to grow Victory Gardens to support the war effort in World War II.

We need more and better public transit.

We need safe and accessible bike and walk routes.

And we need people to shift modes.

And we need to encourage all of us to get behind that.

It could take more than weeks, but it wouldn't take a decade.

And it would be a real win for everyone.

So if you vote yes, please keep front of mind that this easy win is not an effective win.

Quick postscript.

EVs are and will continue to be expensive.

So the assertion that this is somehow good on equity is very hard for me to believe.

Thanks for your time.

Thank you, Kimberly.

And our last speaker is Robin Briggs.

Go ahead, Robin.

Hi, my name is Robin Briggs and I live on Capitol Hill.

Climate change is my biggest concern and I'm all in favor of preparing the grid for transportation electrification and putting in place the charging infrastructure we are going to need.

Seattle City Light should be able to pay incentives to accelerate the move to electrification.

I am concerned about the plan of paying financial incentives to private companies who are installing chargers.

We should make it as easy for them as possible to get through the permitting process But let's make sure that Metro, the schools, and other public entities have the help they need before using public monies for private companies.

I also think Seattle City Light should include incentives for electric bikes.

Electric bikes are electric vehicles that we often don't consider, but they're a great way of getting around without adding a lot of congestion.

Thank you, Robin.

Are you finished?

Okay.

Yeah.

Thank you very much.

Thank you, Robin.

That concludes our public speakers.

So we're going to be closing the public comment period and getting into the items of business on our agenda.

Just a reminder to committee members, we did talk the last committee about the Internet for All report and action plan.

based on the resolution sponsored by Council President Gonzalez and Council Member Deborah Juarez and me.

And so if you do have any comments on the action plan, please just send it to my office or it's the Seattle Department of Information Technology in the next week or so.

That would be great.

Now on the items of business for this agenda today, We'll be considering the first three pieces together.

We'll vote separately on the items, but we're going to read them all into the record at the same time because they all deal with electrification.

The first two items are subject to possible vote today and getting those to the Monday, October 5 City Council meeting.

So they're not going to go directly on Tuesday.

There'll be some time in the middle there until Monday, October 5. That's the plan for these, the resolution and then the ordinance.

And then there's a third item, which is a draft council bill that Seattle City Light is going to be submitting soon, but it's related to this electrification process.

And so we're going to have the clerk read items 1, 2, and 3 into the record, and then we'll hear from Seattle City Light.

We have a couple of presentations.

So go ahead, clerk, and read items 1, 2, and 3 into the record, please.

OK, before I do that, I will note for the record that I believe Council Member Herbold is now in attendance.

Thank you.

Item 1, resolution 31971, a resolution relating to the City Light Department adopting a transportation electrification strategic investment plan for the City Light Department that will guide the development of the utilities infrastructure strategy and investment priorities related to the electrification of transportation for a briefing discussion and possible vote.

Item two, council bill 119895, an ordinance relating to the City Light Department, granting authority for the department to offer incentive programs in the electrification of transportation for its customers, including the promotion of electric vehicle adoption and advertising programs to promote the utility services incentives or rebates and adding a new chapter 21.53 to the Seattle Municipal Code for briefing discussion and possible vote.

Item three, presentation on amendment to Seattle Municipal Code 21.49.090, which currently imposes a barrier to the efficient and timely deployment of electric vehicle charging sites.

SCL proposes legislation clarifying City Light's discretion to allow additional services on a parcel for briefing and discussion.

Thank you.

And everybody, we do have our city council central staff expert here, Eric McConaughey, who follows Seattle City Light items.

And so, Eric, if you want to make any introductory comments beforehand, or we can just turn it over to Seattle City Light to do these presentations.

I'll just take a moment to say good morning.

It's great to be here.

I look forward to the presentations and I note that, as you pointed out, these pieces of legislation go together.

The resolution allows for council to then pass the ordinance that follows it.

So they work in tandem.

And that may have already been said, but part of my role is to emphasize those sorts of things.

So that being said, I think I'll step back.

And as usual, if there's any follow-up questions that you would like me to work with the utility, I will do that.

Thank you, Eric.

And so I'd like to turn it over now to the general manager of Seattle City Light, Debra Smith.

Good morning.

Good morning.

Thank you so much for being here with us.

And I really do want to take a moment to appreciate having a special City Light meeting and allowing us to move some of these important initiatives forward, in particular, transportation, electrification.

And now we've all gotten good at the acronym.

So T-CIP has been an effort that we've been working on for a long time, as noted by a number of the speakers, starting with the Rocky Mountain work, even as we were working towards the legislative fix in Olympia that would allow us to begin to offer incentives.

I want to say that I drive an electric vehicle and this summer my husband and I during COVID bought electric bikes, so I get it and really appreciate the value of both.

And I will say, you know, living in Seattle, particularly downtown Seattle, the electric bike serves me incredibly well.

So acknowledging all that's been heard and excited to talk with you about these initiatives today.

So I'm going to go ahead and introduce all of staff, all of the staff members that are going to be presenting to you today so that we can get that done up front.

I'll offer just a few opening remarks about items number one and two.

the Transportation Electrification Strategic Investment Plan, and then I'll turn it over to Scott.

Also, just really want to thank all of the council members, Chair Peterson for working with us again, particularly on the One Site, One Service, the modification to SMC.

I want to just offer a hello to Eric and to Toby, and thank you for your support in getting us here.

So the staff that we have today, we have a great group presenting for City Light.

We've got Emeka Anyanwu, who is our engineering and innovation officer.

He's been with the city for a couple of years now, and he's just been a fabulous addition to our staff.

As is David Logsdon, who I think you've met, many of you've met in the past.

He is our director of electrification.

Strategic technology comes to us from New York, and he has brought incredible ideas and and and opportunities to the city in a very, very short time joined us right before covet.

And it's amazing.

He has not skipped a beat.

We've got Victor Koto, who's the program manager for customer care and energy solutions in many ways.

He is the individual who has done a lot of the boots-on-the-ground work here, so really appreciate his efforts.

Jenny Levesque, who's our external communications manager, and as noted in some of the discussion or the public comment, and as will be noted in our presentation, this is really the beginning of an implementation plan, and we have lots of community input to continue gathering.

We are by no means done with that.

In fact, in some ways, in addition to just COVID slowing down business as usual, it has impacted and did impact our ability to do public outreach.

So we will be continuing to pursue that very, very diligently under Jenny's expertise.

And then of course, Maura, who is our Director of Government and Legislative Affairs, and she is also, as I noted earlier, our Chief Technology Individual today.

When we move into the open access transmission tariff item, that's a mouthful as well, we call it the OAT.

We will have Jim Baggs, who's our compliance officer, Kathy Leone-Woods, who's the director of regulatory affairs for City Light, as well as Melissa Skelton, who's a strategic advisor in regulatory affairs, and much of the work that you'll see today has really been under Melissa's tutelage.

And then again, Maura will be helping us along with the technology.

Lastly, we have a finance item, which is much more of a housekeeping item.

And we'll have Kirstie Granger, who is City Light's Chief Financial Officer, as well as Chris Ruffini, our Finance Director, Karsten Croft, who is the Manager of Financial Planning and Rates, And of course, Maura Brugger on the PowerPoint.

So that's our lineup for today.

And I'm just going to offer a couple of opening comments and then we will get going.

So City Light has been a long been committed to enabling customer choice in many ways and guaranteeing sustained public value from the utility grid.

So we do view the utility grid.

It is an investment that belongs to our community and we are beholden to make the most value of it as we can.

As an increasing number of City Light customers have chosen to go electric and electrify both fleets and personal vehicles, City Light sought to understand and accelerate customer adoption of electric vehicles in a manner that equitably and sustainably maximizes grid benefits for our customers.

And we did hear from folks during the public comment about targets, metrics.

It's really challenging.

Our role as a public entity is to accelerate and to make possible adoption.

We recognize that personal choice around electrification, whether it is for public or a private entity who is electrifying fleets, or whether it's you and I at home, those are choices that get made.

And our job is to create the infrastructure that allows them to make that choice as easily as possible.

And as noted, yes, there are cost benefit values to electric vehicles.

And we do know that adoption will continue to increase as price points come down, and as access to charging infrastructure becomes more available.

So City Light envisions a utility of the future that's responsive to the wants and needs of the community members, most impacted by environmental and social inequities.

We do take that incredibly seriously.

We operate a modernized grid that enables real-time smart technology interaction and provides economic opportunities through infrastructure investments and upgrades.

with our clean energy, because we are very fortunate as a city to have access to our hydropower system, primarily from Skagit and our boundary dams.

The Pacific Northwest as a whole is in a unique position to electrify the transportation sector and to deliver a triple win for our customers, the environment, and the utility.

And as noted, in response to those needs and recent state legislation, City Light developed a transportation electrification strategic investment plan for 2021 to 2024 to offer customer incentives and promote the electrification of transportation to ensure that we bring maximum value and convenience to our customer owners as we enable this transition.

We're here today to present this plan to you and to seek your support for our transportation electrification based legislative packages so that we can begin this crucial work.

So Emeka and David will take you through about a 20-minute presentation covering our process.

We have lots of time left over for questions, and so we welcome them and we look forward to hearing from you.

Gentlemen?

All right.

Thank you, Debra.

And so, again, we really appreciate the opportunity to bring this work before you all today.

The resolution ordinance we have before you today were developed, as I think has been pointed out earlier, in response to the 2019 passage of House Bill 1512 by the Washington State Legislature.

And that bill grants utilities the authority to provide customer incentives following, to drive the adoption of, following the adoption of a transition electrification plan by our governing board, which of course is the city council.

So the resolution, as Eric pointed out, adopts our transportation electrification strategic investment plan.

And then the ordinance amends the Seattle Municipal Code to activate that ability for us to promote transportation electrification and provide incentives to our customers.

So I think, you know, the thing to start out with, Maura, if you'll go to the next slide, please.

is really to point out sort of the main takeaways for today, right, things that we hope that everybody walks away from this discussion with.

The first thing is, again, and this can't be said too strongly, especially in light of some of the comments, our focus has been to listen to and engage with communities.

You know, we need to establish our approach for how we're going to set our priorities and we are We are intent on minimizing earlier premature conclusions to avoid confirmation bias or doing what sort of feels right just to us.

And so we intend to be accountable to an ongoing process of community engagement.

You know, key to that is that City Light strives to incorporate and elevate the voices of environmental justice communities who traditionally and historically have been excluded, have been left out of these conversations about how transportation electrification is planned and developed.

And so by centering those people in those communities, experiencing environmental inequities through community outreach and engagement, we think that will result in solutions that meet the needs of all of our customers.

At City Light, we're committed to serving our Black, Indigenous, and other persons of color, immigrants, refugees, people experiencing low incomes, youth, and English language learners or folks who have English not as their first language.

We are centering those needs and making them a priority in our work here.

That leads us to the second key point.

We resoundingly heard over the course of several years that transit is a top priority.

So in the conversation about mode shift, I think that is one of the places where we gain some of that efficiency.

Other modes of transportation certainly matter, but public transit takes the cake.

It makes the most impact for these communities.

So the next thing, again, is to reiterate that transportation electrification for us is not about trading in internal combustion engine vehicles for EVs.

Single occupant vehicles are simply not the preferred solution.

They're not the future.

We may have some temporary detour for transitional reasons, including, of course, the pandemic, where folks are sort of making choices around their comfort level with riding mass transit.

The long-term path is about shared modes, shared production, and ensuring equitable access.

And then the last item on the slide is the foundational one.

The grid is the platform that enables this future that we all envision.

As Deborah said, it's a publicly-owned asset that shouldn't be devalued for the narrow interest that ultimately accrue to only a small number of people or individuals.

It really is the connective tissue that binds together every version of our decarbonized electrified future together.

And so it's a key part of how we get to an equitable energy future.

And so in order to achieve that, it's really, it's not our grandparents' grid, so to speak.

The new grid needs to be dynamic.

It needs to be distributed, flexible, and smart.

It needs to be up to the task of getting us to that future that we desire.

So next I'll talk a little bit about how this fits into the city's big picture.

If we can go to the next slide.

So we've really engaged on a fairly deep citywide coordination on transportation electrification.

City Light's vision and goals for this future electrified transportation system, as talked about in the plan, are aligned with and support our city's climate goals and the updated citywide transportation electrification strategy, which will be finalized later this year.

That citywide TE plan is a multi-department effort to electrify transportation at scale and to tackle climate change and poor air quality resulting from the combustion of dirty fossil fuels.

The plan is currently being finalized, as I said, and the cross-departmental team looks to implement strategies that will reduce fossil fuel consumption in the transportation sector through electrification and supporting the outcomes of the Green New Deal.

City Light, the Office of Sustainability and Environment, and Seattle Department of Transportation are leading that citywide transportation electrification effort in collaboration with several other departments across the city.

So our strategic investment plan is a critical component of that citywide plan.

And in order to achieve those ambitious goals set out in that plan that everyone will see later this year, it's really essential that we have the authority, that City Light as a utility have the authority to offer customer incentives and services for transportation electrification, as well as the authority to promote electric vehicle adoption and advertise our utility services, which is codified in the legislation.

And so we'll go to the next slide, please.

So finally, before I hand it off, I'll just say that as we look at where we are today, I think it's important to frame where we are relative to our peers with this work.

Snohomish PUD, Tacoma Power, and Avista have had their plans already approved by the governing bodies.

We understand that Puget Sound Energy is planning to submit their plans.

So when you look at our neighbors here in the region, it's clear that we need to keep on pace and not fall behind.

We have a mandate from the Council, from our review panel, from our customer owners to be a regional leader.

How we be a regional leader is to not be last in getting past this milestone so we can get to the work of delivering transportation electrification to our customers.

With that, I will hand it off to David.

David will walk us through the path we have taken to develop the plan and share with you how City Light will be prioritizing our investments in transportation electrification.

David?

Great.

Thank you, Emeka.

And I wanted to just tag along on that note on regional leadership.

I'm David Logsdon, Director of Electrification and Strategic Technology here at Seattle City Light.

As Deborah mentioned, I moved here just at the start of this year, January, right before COVID hit.

I come most recently from New York and Crowne Edison, where I worked on electrification and grid modernization initiatives.

And I just wanted to say a big part of what drove me to move my family over here and work for Emeka and Deborah on these initiatives has been The the ability we have to lead in the region on transportation electrification the conditions are absolutely right here in the region.

The policy support is in place.

This plan represents Seattle City Light's contributions towards that.

And looking at this slide I think one of the key things to note here is just the extensive history that leads up to today.

The buildup to today goes back at least five years.

And that's really looking at 2015. You see City Light completed a study to look at the implications of EV adoption in our service area.

We did this work in collaboration with energy and environment economics and other Northwest utilities.

And the goal there was really to understand the environmental grid and economic benefits from transportation electrification.

That study had a number of key findings that have continued to influence how we look at transportation electrification and are reflected in the strategic investment plan.

One of the key findings I really wanted to highlight is that the study found that over the life of each electric vehicle added to the grid, City Light and our customer owners can receive a net system benefit of about $1,250 per personal EV, and then $120,500 per bus or heavy-duty vehicle.

So the significant benefits for our customer owners are a big driver for the benefits that can come from transportation electrification.

And based on those promising initial results, City Light continued to invest in initial pilot programs.

So we had pilot programs in residential and public EV charging, primarily under Drive Clean Seattle initiative.

And then we continued to add to that.

We added further rigor to our transportation electrification benefit analysis, so built off that analysis that was initially done in 2015 with an additional strategy report.

We developed that strategy report with Rocky Mountain Institute in 2019. And this report dived more deeply and looked at the state of the electric mobility market, projected impacts to city light that may come from market adoption of personally owned vehicles, medium heavy duty fleet vehicles, And that work really heavily informed the investment value framework.

And it's helped us to identify what we can do to reduce barriers to access, to accelerate EV adoption, and to effectively manage the grid impacts of that adoption.

So these include things like preparing for heavy-duty electrification by closely partnering with customers that have aggressive transportation electrification plans, as well as developing new rates, improved customer service strategies for transportation market.

And you'll see some of the rate pilots we have later on.

And then also strategies around investing in charging infrastructure with emphasis on universal access and continuing to expand coverage.

And then you kind of, moving along the timeline, you can see the passage of Washington House Bill 1512, which has been mentioned a few times and is really a key part of why we're here.

That passed almost one year ago.

And that's really when we began the work on the plan in earnest.

So really at the start of that building of the plan, we really wanted to ensure meaningful inclusion across our service area.

We wanted to especially incorporate and elevate the voices of environmental justice communities in our work.

So our first set of initiatives included conducting a racial equity analysis using the City of Seattle Racial Equity Toolkit as well as conducting in-depth outreach and engagement which we'll be talking about in more detail a few slides on.

And we developed this plan by really leading with our values and incorporating what we've heard from those environmental justice communities and other stakeholders in that Phase 1 outreach.

And to shape the strategic investment plan priorities that we're now presenting to council in this plan, in that outreach, we work closely with community stakeholders, other city departments, particularly Office of Sustainability and Environment, the Department of Transportation, Department of Neighborhoods, as well as the mayor's office.

And we're here today, just looking at the timeline, we're here today to seek city council's approval to activate that new statutory authority to allow us to fully deliver on the strategic investment plan And following that we're ready to proceed to the next wave of work which really includes the second phase of community outreach so that we can continue to engage even more deeply with communities to inform the program design efforts as we build up the portfolio of new programs and services that we'll actually be implementing.

So that's the process perspective and some of the rich history that has led to today.

And on the next slide I'd like to now take us back to the plan development itself a little more deeply and talk about how we approached it.

And I already mentioned that we centered on our values.

So I just wanted to share those actual values and we'll talk a little bit more about how they were reflected in the development of the plan.

The core of plan development was really to first get square on on these key strategies and values.

All of our offerings are going to reflect and balance these three key values you see on the slide.

So the first of those is equity.

And with equity we want to conduct environmental justice community centered collaboration and engagement right from the start.

And that's already mostly complete with the phase one outreach effort that I talked about, and we'll be talking about again in a moment.

This is really key for us, and we really need to continue to prioritize positive outcomes and minimize harm, especially for our underserved communities.

Next value is environment.

We've talked quite a bit and heard in the public comments quite a bit about the key driver that transportation electrification can serve as in combating overall greenhouse gas emissions, In our area, transportation represents two-thirds of the greenhouse gas emissions in the region.

And we also want to tap the air quality and public health benefits from reduced traffic congestion.

And many of the fleets and transit opportunities that we seek to electrify do have big impacts, especially in environmental justice communities.

Third value is the grid.

And Emeka mentioned the grid is really the platform that enables all of what we're talking about with this plan.

We want to optimize that shared asset.

We want to avoid upgrades.

We want to maximize the benefits of transportation electrification fully while also ensuring ongoing reliability, resiliency, and safety of the grid.

So on the next slide, we can start to see how these values really became manifest in the development of the plan.

And that's primarily tied to the extensive stakeholder outreach we conducted already and will continue to conduct as we move on to the next stage.

So we really started with the communities that we serve.

And in the past Seattle City Light has received clear and direct feedback that we really need to center our offerings on the communities we serve and especially communities experimented experiencing environmental and social inequities in our transportation electrification planning process.

So we took that to heart and we've really built the process around starting by first conducting the racial equity analysis and then engaging deeply with our community stakeholders especially environmental justice community leaders and other stakeholder groups throughout the area.

And in this process, this phase one outreach, we shared a draft of our strategic priorities with at least 25 environmental justice community leaders, over 40 stakeholder groups, including environmental justice organizations, community-based organizations in all council districts, environmental advocacy organizations, multiple commercial local government, nonprofit fleets, labor unions, labor councils.

We also met with shared mobility stakeholders, transportation network companies, taxi companies.

And what we heard resoundingly from those stakeholders was that we should focus on a couple of key priorities, and I'll put these in order.

And there's a lot more detail on this in the community and stakeholder summary that's included in the legislative package.

Those ranked priorities that we heard from stakeholders were, number one, educating and continuing to work with communities as we develop the plan, as we create an actual implementation plan based on these strategic priorities.

Number two was prioritizing public transit.

Number three was electrifying fleets, especially those that run through the Duwamish Valley.

And that's particularly impactful as those fleets do operate primarily in environmental justice communities.

have the big potential to reduce emissions and mitigate health impacts in those communities.

And fleet programs and incentives are also a great way to impact a large number of vehicles fairly quickly.

Number four, expand at-home and near-home charging for multifamily residents to allow for more equitable access.

And number five was electrify high-mileage ride-hailing vehicles.

Those ride-hailing vehicles have a big impact as they drive three to four or five more times and more miles than regular passenger cars.

So that's what we heard from the phase one outreach and engagement.

And on this slide that Maura's brought up, I think you can directly see that that's really reflected in the strategic priorities we shaped in the plan.

And so this slide we're currently on, which we'll stay on.

This slide presents the transportation, electrification, investment priorities that we're bringing to council today.

These are the priorities that were shaped directly by outreach.

And that stack that I read of what we heard from community, if you read just from top to bottom of these slides, That's basically, essentially 100% lines up with what we heard from communities.

And each of these priorities is paired with equity outcomes that we intend to achieve as we move on towards implementation.

And I think what we can do now is maybe just work our way down from the top here, and we can start with those areas of most importance as we move on to the next phase of working with communities to build out a full portfolio.

So number one, and this again matches everything that I just said we heard from communities, number one is continuing to educate and connect with communities to hear their priorities and reflect those priorities in our work.

We really want to make sure that communities are aware of the full benefits of transportation electrification and how they can access them.

And to that end, I mentioned a little bit that we've concluded our phase one outreach.

The phase two outreach, an engagement effort that we hope to undertake after receiving approval, It will be focused on building even deeper and more meaningful engagement with our community members and leaders.

There, we're hoping to build relationships, educate.

This outreach is really going to go beyond that.

In this phase two outreach, we're going to be working closely with community stakeholders on topics that actually get into program design, development, and implementation.

We want to truly collaborate with community members right from the start and ensure we meet their needs.

Continuing through the priorities, you can see transit's a top priority.

And I'm going to pause.

I didn't see it, but we have a hand raised at the moment.

Council Member Herbold, I believe.

Thank you.

Chair Peterson, may I?

Yes, please.

Thank you so much.

Just looking at the strategic investment priorities, I'm curious as to whether or not maritime vehicles made the list, whether or not you're talking about ships or ships for purposes of cargo or cruise ships.

I don't see these being prioritized and just wondering is that was that a function of people not being asked or just people just simply were they asked and they didn't rate that as a priority?

I think it did come up in some of the the community priorities in terms of public transit and especially in the the environmental impacts that people hope to see there.

And I think you'll see some more on that as we get into the milestone slide and I believe we'll be talking in a moment about some of the existing work we've been doing with Washington State Ferries and hope to expand on the partnership with with Port of Seattle.

And I think that in some of the the outreach we heard from I want to say it was South Park community asked about e-boats.

So I think that We are quite keyed up to work with maritime applications, especially with the work with the port and with the ferries.

And we did hear that from some community stakeholders.

So that was a transportation use that people were given the opportunity to prioritize?

Yes.

It was on the list?

Yes, it was.

And they just didn't choose it?

Some did.

Yeah.

It just didn't make it as a top priority?

I would say not quite the top, you know, public transit's a top priority with a focus on buses and access.

We did hear from some stakeholders and definitely an interest in the environmental benefits.

Okay, thank you.

And if I may, it's in your plan.

Yes, yes.

Yeah, okay, so that's the important thing, that it is in your plan.

Yes.

In addition to these others.

Yes, and we've got existing work with Port of Seattle, and we're working with them on their clean energy strategic master plan, as well as Washington State ferries on their push to electrify the ferries.

Good, thank you.

Sure.

For more than just a, to really quickly layer onto that, for more than just a transportation perspective, from an emissions perspective, you know, the work that we're doing with the port on their Seattle Waterfront Clean Energy Strategic Plan really targets a place where we have emissions in one of those, you know, some of those communities that have been historically most affected by emissions.

So that's very much a priority for us.

Great.

Okay, I'll continue on here.

So we talked about transit We've talked about fleets and fleets, as we've said, represent a significant source of air and carbon emissions are a great place to start and definitely aligned with what we've heard from community.

And then we've got a wide variety of multimodal areas for personal mobility.

We're going to continue to prioritize their reducing barriers to access, especially for those living in multi-unit dwellings, high mileage applications and shared mobility.

And we're also going to work to include anti-displacement strategies and infrastructure project designs.

The communities can really truly enjoy the benefits of transportation electrification where they live and work while staying in place.

So these are our priorities.

And we're very committed to ensuring that our resource allocation matches these priorities as we move towards implementation.

And we're going to be setting those and refining those based on ongoing community feedback.

And we'll be including also a framework for how those communities can hold us accountable for this.

So now the next and I believe one of the final slides you're going to see how some of the initial milestones that will achieve across these priority areas.

In these initial two year milestones, you can see an early demonstration of our commitment to prioritizing and initiating work based on the investment priorities from the last slide.

And I did want to highlight here that the plan delivers a process, and we aren't at the point of delivering a complete portfolio.

That's really going to be shaped in the next stage after getting approval through that ongoing phase two community outreach.

So these initial two-year milestones are going to continue to be built out and expanded on as we implement the four-year plan, which covers 2021 through 2024. The types of program offerings are going to fit into three major categories.

Incentives in the forms of rebates, financing, discounts, in-kind.

to reduce costs for customer-owned transportation electrification equipment.

And I should say those incentives are specifically to support charging infrastructure rather than the vehicles themselves.

And then in addition to incentives, services, City Light is going to provide services to encourage and enable transportation electrification.

And then ongoing education and program outreach.

And we've talked quite a bit about that already, especially with the next stage of phase two outreach.

So budget authority for this plan is going to be included in City Light's submitted budgets and consistent with the state law's limitations.

The plan's initial investments are going to lead to financial benefit for all of our customer owners, especially as the retail revenue from the new sales are expected to be greater than the long-term cost to deliver the plan.

This will actually lower rates and provide an overall benefit to all customers.

And now I'm going to hand the microphone back to Mecca to talk this slide a little bit more and to wrap us up.

Thanks again, David.

And so I will try to kind of get us to the to the finish line here pretty quickly.

And just to take a cue from my colleague, David, I will also say, like him, I'm a Seattle transplant, came to Seattle City Light about two and a half years ago.

And like David, I came here from the Midwest because I saw the promise of this work in Seattle and the opportunity for us to really lead regionally and nationally in this space.

But I think in closing, I'll tie the milestones back to the takeaways that we started with.

We really do want to listen to our communities to set the priorities.

Community and stakeholder outreach and awareness is really at the core of the plan.

You can see that in that pink bar sort of about two-thirds of the way down.

So this is really a feedback loop that is helping us prioritize work and goals on an ongoing basis.

And so, you know, I would certainly urge folks to look at the specific programs or projects that are mentioned here, certainly not as all-inclusive or exhaustive of everything we expect to do, whether in the four-year window or beyond.

It really is just us having that right feedback loop with our communities to know what we should be working on.

As some of the speakers, of course, have pointed out, we did set a goal to install DC fast chargers.

And in fact, we do have 16 of those already in place.

All of them will be online as of October.

And we expect to have, we are on track to have 21 of them in place and online by the first quarter of next year.

And really, a lot of that delay was owing to the pandemic and some of the construction delays that came from that.

But it's also really important to note in doing that work, We were insistent that we not sacrifice community input in the process of deploying these.

And so we've worked closely with our communities and listened to their needs, even as we've gone through the process and not been willing to sort of forego that to sort of get a result or an outcome.

So our strategic partnerships around transit really reflect the community feedback.

You heard from one of our partners at King County about that in the comment period.

And so it's also our commitment to electrifying commercial government and nonprofit fleets, which all deliver substantial environmental benefits for impacted communities and are really good bang for the buck and upfront values.

But transit is a top priority.

We do need to say, just say no to a one-to-one ICE to EV conversion.

Here, you can see that initial commitment to electrifying buses, ferries as was asked by the council member earlier, And certainly other public transit is a priority for us.

King County Metro, like I said, is a close partner.

We are building on that partnership and evolving the customer relationship as we do so.

We're working on strong partnership and strong collaboration with the Port of Seattle and have really good relationships and partnership with the Washington State Ferries as well.

So making a lot of progress in that sense and prioritizing transit.

And then finally, I can't emphasize how much the grid is essential and crucial to enabling future electrification.

I mean, it is the platform.

There are substantial benefits from electrification, but It can substantially increase in places and spots demand and strain on the grain on the grid at the bulk and regional scale.

And so we really need to modernize and develop the grid of the future really to allow for manage and maximize the benefits of electrification.

So that's where our good modernization plan and work comes in, and you'll see that kind of in the bottom center of your screen.

That is a pivotal milestone for us is to get that work done.

That work will be undertaken in parallel to this plan and will be a key enabler for everything this plan aims to achieve, including and perhaps especially, I would say especially, maintaining and enhancing equity in our energy system.

We must also examine and rework existing policies so that they don't stand in the way of our customer owners as they make the choice to electrify.

So the ongoing work with SDOT, with OSC and others to develop a master infrastructure plan, which is also called out at the bottom right of your screen.

That will seek to streamline the processes for installing this transportation electrification, charging infrastructure, including permitting, easements, and efficient and transparent interconnection and service upgrade processes.

Those process innovations really will enable expedient and safe installations.

And so with that, I think I'm to the end of the transportation electrification and strategic investment plan specifics.

Council Member Strauss, I see you have your hand up.

Yeah, go ahead Council Member Schrems.

Thank you, Emeka and David.

This is such a fantastic presentation, and I really appreciate all of your hard work.

From the backgrounds that both of you have, it looks like Seattle has different weather today.

Emeka, it is a sunny day, and David, you're a little bit more cloudy.

What I can say is, both of you said that you are transplants to the city, and being somebody that's born and raised in the city, I can say that you are now a Seattleite.

It's not for me to give you, but I have to say that the intellect and perspective that you bring to our city is what puts us on the cutting edge.

And so we couldn't be doing this without you.

One of the things that I heard that you said is that the electrification of vehicles is a benefit to all customers.

And I really wanna raise this back to the top and highlight this because we know as energy efficiency makes great strides, whether it's light bulbs or weatherization or solar panels on people's roofs, we understand that we have a greater ability to use our clean energy.

And with City Light being a carbon neutral electric source, this allows us to have immense impacts.

the additional load from electrical vehicles, being able to use that load for electrical vehicles.

Granted, there are externalities as public comment shared with us of electric vehicles.

It is better to use electricity than our carbon and gasoline.

I guess one of my questions is, Looking at, and you began to address this with transit, with the port, and with the ferries, I understand that we have the Bainbridge route from the Coleman dock with the Washington State ferries is one place that they're going to pilot their electrification.

Fun fact for everyone, you may or may not already know, is our ferries are already electric engines.

They use diesel generators within their Within the ferries within the engine room to power their, their electric engines and.

Something that City Light shared with me, which is really great, so this is not, I can't take credit for understanding this, is that from the Bertha drilling, drilling the waterfront tunnel, we have a substation on the waterfront that can use to do fast charging of our Washington state ferries.

So talk, I guess my questions here are, can you speak to electrifying our bus fleet, how we're doing that, because those are, again, larger, batteries that need to be charged, how we're going to be working to electrify our ferry fleet, and how are we going to, and Council Member Herbold kind of touched on this about our port, understanding that the port is also moving through an exercise to see if we can't get, you know, charging, extending the grid over to the terminal in Inner Bay.

Can you talk specifically about these three areas?

How are we working to quickly electrify our bus fleet, how we're supporting Washington State Ferries at Coleman Dock, and how we're supporting our port.

I'd love to jump in on that first.

Okay.

So thank you, Councilmember Strauss.

You know, this is a great question because, you know, we've got transit as a key priority and you see some of the milestones we had that discussion earlier.

You know, these large transit customers who are seeking to electrify, they have, you know, they're very important because they have some of the biggest potential impacts on environment and communities and the overall greenhouse gas emissions.

But that also can mean they have the biggest impact on the grid.

And we have to extensively plan to meet those large additional loads coming onto the grid.

So for that reason, we really want to partner with these customers as early as possible, especially these large customers, to work with them to help shape their long-term plans.

around electrification.

So you mentioned a couple of different customers that I'll try to come back to, but King County Metro, we've actually got already a memorandum of agreement with them on their charging infrastructure and want to keep working with them creatively to explore how that load shows up on the grid and explore strategies that can actually help minimize the future load on the grid and make it most efficient.

So things like managed charging how do they build out their infrastructure, but also how do they coordinate charging within like a large bus depot to not place the maximum strain on the grid, which means building out maximum capacity.

So we want to build most efficiently by working closely with them.

We've also got close partnerships with the Port of Seattle that we mentioned, and we're working with them and hope to reach a similar formal agreement to what we have with King County Metro towards the work we're engaging with them on.

but working closely with the port to help shape their future electrification plans and do that in the most efficient way possible.

And then when you mentioned Washington state ferries, when you think about these things, you have some of these loads that are showing up in similar geographies.

So like Port of Seattle, Washington state ferries, potentially even some of the bus charging, the heavy duty charging.

So we really have to closely plan with them based on existing capacity, but this is also ties back to grid modernization.

because we want to plan with them in new ways too.

You know, for Washington State Ferries, for instance, we have a service agreement with them already for some of the initial capacity they need for ferry charging.

But we're really wanting to look at the long term and look at all of these things holistically and what happens as you electrify all of these customers at once and have, or not at once, but over a close period of time and manage those strains on the grid.

And we want to do that in the most cost effective way.

So we're also looking at things like distributor energy resources, batteries and microgrids, and how can we use that to help manage future load growth in non-traditional ways?

So, like, you can do, in a lot of cases, what might be called non-wires alternatives, where you're putting distributed energy resources into place at lower cost than traditional T&D infrastructure.

That's something we're also closely exploring.

Yeah, thanks, David.

And I'll just quickly layer onto that just to emphasize a point that David made in there, which is that A big part of the innovation here is innovating the customer relationship.

The kind of close and early partnership we're talking about here with the ferries, with King County Metro, with the Port of Seattle, are not necessarily your traditional utility customer relationship.

But we're innovating that relationship because it is necessary.

You know, I'm sort of classically trained as an engineer.

That's how I started my career.

And so I'm a systems thinker.

And really, it is sort of that systemic, that structural change, that shift in mindset that's going to enable all of the benefits that we're seeking to achieve here.

Thank you.

That's very helpful.

And Councilmember Herbold raised this as well.

Can you speak a little bit more to our maritime customers and how we can support them in this work?

Yeah, I mean, I think it begins, like I said, in terms of sort of understanding what they're trying to do and figuring out How do we work with them to ensure that they can accomplish aggressive goals, and they can be as aggressive as they want to be with those goals, while making sure that we don't have unintended consequences of stranded assets or other sort of reliability or stability issues on the grid?

Because, I mean, again, you know, those things ultimately impact all of our customers who all own the grid together, and so we want to avoid that.

But the kind of deep partnership, and I really appreciate it, hearing from our colleague at King County this morning, because really that speaks to sort of that relationship and that deep partnership we have on a very technical and granular level to achieve better outcomes on the back end.

Deborah, go ahead, please.

Oh, I was just going to add that we've been working closely and Mac and David have both been working closely with with Marshall foster from the office of the waterfront and very early on in this process.

We made a strong commitment as a city that we would work cross departmentally to try and really make sure that the waterfront was as that all of the, the maritime activity coming in and out of the waterfront.

was clearly in our mind, both in terms of current electrification, but also in terms of infrastructure that would support that over a period of time.

Certainly, the cruise industry and the issues that we're dealing with right now with respect to, as a result of COVID, perhaps changed the timeline on that, but in no way has the commitment to working closely with that department, that city department, and others, including SDOT.

That has not changed at all.

Thank you, that is really an excellent answer to my questions.

Emeka, something that you said is the grid is the platform and we need to maximize our benefits.

I was watching award-winning Seattle Channel last night about some of the first, when Snoqualmie Falls was having its powerhouse installed, it was the first underground powerhouse in the nation.

And it was interesting at that time, there were some powerhouses that were put in in the city of Seattle, because at that time, without the alternating current, electricity could only travel a mile at a time.

And so some of the powerhouses that were on the waterfront, Seattleites worried that they should have put those generating stations at the top of the hill, because otherwise they would have to pump the electricity uphill.

Interesting how lack of information sometimes influences how people think.

I guess I just want to come back to what Emeka was saying, which is the grid is the platform.

And you shared the micro grids and the importance that we don't overload our overall grid as we make some of these transitions.

And I just want to highlight that that process innovation is what's going to keep us at the cutting edge.

And I just want to highlight and compliment you and raise up your work that you're doing here.

One of the things that you discussed is the multiple services for one charging place, and you also kind of talked about whether it's the ferries, the crews, and the buses.

Can you speak a little bit more about the importance of this and how and why it's important that, for instance, if we have a customer that has a building, let's say it's a McDonald's, and they want to have a charging station, How can we, or a charging station that allows us to service Metro or others, or can you talk about the multiple services for one station?

And thank you, Council Member Strauss.

I think that's a nice segue to the next slide and the next item on the agenda, item three, which is a draft Council Bill right now, and they're ready to go with that slide.

Is it okay if we dive into that?

Oh, Council Member before we get into this next piece of legislation.

Thank you.

I did want to ask a specific question around the priorities.

I didn't see working with our solid waste contractors through SPU to continue the conversion of garbage and recycling fleets to electric vehicles.

Just wondering whether or not that is an element in the plan, since that is a really important initiative that SPU has begun, and we want to see more of those electric trucks?

That support is going to be ongoing, and it'll be considered under, I would say, the fleet category.

And I think we maybe just failed to call it out on this particular infographic.

But that is what we want to continue to support.

Very good.

So the first eight slides of this PowerPoint deal with the first two items on our agenda, the resolution and the ordinance that go together, as Eric McConaghy mentioned.

And then Seattle City Lights putting the finishing touches on another council bill that will go directly to the full council on October 5. And it's all part of this package.

And so this slide here speaks to that.

So General Manager Smith, did you want to speak to this single site?

single service issue?

Well I'm going to actually let Emeka do that because this has been an this was a thing for me.

I think it came up in the comments and and I know it's it's something that I think it even came up in a question from one of the council members.

I mean we as a city we had a goal that was set in 2017 about the number of publicly owned charging stations and this is actually a great example of even in our TSIP We're looking at a 4 year window and the technologies that will be available to us in years 3 and 4 are things I propose that we can't think of them today.

So we can develop a framework that extends into the future, but the technologies are changing and developing and evolving so rapidly.

that part of it is the need to be very agile.

So in the charging infrastructure space, that's also true.

There was a time for us where we really needed to be the one putting in charging infrastructure.

Since then, the private sector has a very strong interest in investing in our community and investing in infrastructure.

That's good for Seattle.

And that happens both in terms of charging infrastructure, I think, as you heard, Last week, it's true in terms of a 5G rollout.

So one of our goals as a city is to make it easier and make it possible to receive those dollars.

One of the big issues or one of the big opportunities for the city has been Volkswagen dollars.

And that's kind of where I wrapped my head around this and we were struggling.

So I asked Emeka quite honestly, and he had actually moved on from his job.

He had done a stint as the engineering officer.

He moved on into this new space.

And I said, can you can you get rid of this hurdle that everyone is having to jump over and then I have to have meetings about and it was a lot harder than we thought.

But I think it is it's a it's a housekeeping issue, but it's super important to us.

And so I'm going to let him make a talk about it because we couldn't be here without him.

Thank you, Debra.

I really appreciate very, very gracious words.

I mean, I think, you know, I can't overemphasize how much of a team effort this was working with our engineering folks and our operations folks and others to sort of to kind of put this together.

And so I'll be really quick with this.

And it sort of gets to council member Strauss's question as well.

You know, the single site, single service provision is a provision of our of the municipal code that sort of was initially put in place.

It was intended to provide for safety for our crews and for the public and first responders by avoiding multiple sources of energy basically to a single site.

Now, it sort of over the years has taken on a character where it sort of developed this kind of colloquial name, one site, one service.

And it sort of becomes a barrier and kind of, frankly, a brick wall at times for some of our developers, particularly in this case, where it got highlighted, as Deborah said, is with private electric vehicle charging developers, where they are unable to access the energy they need from the grid because of their location on a site that already has power.

And the reality is, of course, there are ways for us to provide for that.

without sort of creating any safety issues or for the public or for first responders.

And so what we've done is sort of proposed this amendment to the municipal code language that sort of clarifies that City Light has the discretion, using its good engineering and technical judgment, to find ways to service our customers with more than one source on a site when necessary.

you know, to us, this is really sort of a first step, but this is the kind of sort of nuts and bolts stuff we're gonna have to do in lots of places to enable this new future.

I think, you know, the point that Council Member Strauss was making earlier about just sort of the dynamicness of how we ensure that we are meeting these needs when they come and that we are being multiple really with our solutions.

and trying to be efficient and trying to maximize value, try to optimize value by finding multiple uses and really thinking about the architecture of the grid in different ways really is what serves to get us where we're trying to go with electrification.

It really isn't about sort of building out traditional fixed assets like we've done historically, but really thinking about that architecture differently.

We think this is a really good step.

It's certainly been well received by the electric vehicle charging providers that we've worked with.

We've worked closely, for example, with folks like EVGO and Electrify America, which is the execution arm of the VW settlement that Deborah mentioned, and had really good responses so far to what we're proposing.

Council Member Herbold.

Thank you.

I just want to, if anybody is listening from the Puget Ridge co-housing group in West Seattle, specifically Stu Yarbitz, this was an issue that they raised with me last year.

co-housing site, there's probably about 25, 30 different households living there, and they were trying to get a charging station.

And it was considered one site, even though it was home to a couple dozen more than that households.

And so Seattle City Light was super helpful.

They helped them pursue a variance to the one site, one service policy, but want to really appreciate their efforts kind of pushing this issue forward and helping to make it really obvious that we need to go sort of beyond a pathway for variance to the policy, but we needed to take another look at the policy itself.

Well, thank you, Council Member.

And again, I'll just reiterate, this definitely has been near and dear to me in terms of doing this work.

And I'll point out that this is actually part of a two-pronged approach.

The other thing that we've done is we've already altered our requirements for electric service connection, which is sort of a standards document that we have on our website for developers to incorporate this as of June of this year.

So we've taken the first step on our side, sort of our procedural side, and then this municipal code sort of update is the second step of that.

And electrification aside, although it's I think a very important driving principle for this new policy, I'm wondering, I understand the one site, one service issue was a barrier not to just establishing electrification stations, but also in the permitting of detached accessory dwelling units.

Will this change also help with that issue as well?

Yeah, we expect it to be helpful with that issue.

We expect it to be helpful even with some of the 5G installations like Debra mentioned.

There are lots of places where this helps because it acknowledges a much more dynamic grid architecture than, you know, that exists today as compared to historically.

Thank you.

Thank you, Councilmember.

Councilmembers, any questions about the first two items that we'll actually be voting on now?

Resolution 31971, which has the Strategic Investment Plan attached to it, and then the Enabling Ordinance, Council Bill 119895. know that the last piece that we just discussed will be coming directly to Council on October 5, but we're going to vote on the resolution, the ordinance, the first ordinance right now.

Any questions for Seattle City Light before we make motions?

Councilmember Herbold?

Thank you.

I'm just interested to know what City Light's response is to much of the public testimony that we heard at the beginning of the meeting related to the need for more benchmarks and timelines in the plan.

Just wondering what your thoughts are about that request from the public.

So I'll maybe take a stab at that first.

And if Deborah or David want to jump in, they can.

But I will just say we recognize and acknowledge certainly those concerns.

It's important really to point out that this, what we've brought forward today is the first step in that work, right, in order to get to the kind of ambitious and aggressive goals that the commenters have talked about, we have to start.

And this is that start.

We think certainly, as we've talked about moving into the second phase of our community engagement, will leave pretty rapidly later this year.

We are prepared and geared up to start that outreach pretty much as soon as this is approved.

And so later this year and into early next year, we expect to begin talking about the specific program offerings and ideas that we have in collaboration with our communities.

to begin developing an implementation plan.

And so we want to get started here.

That's what this is about.

But we certainly were right with them on the urgency to meet the climate change crisis.

So are you committing to us today that the next phase of the project will include that more level of detail on benchmarks and goals?

That's going to be developed in this next stage.

No, absolutely.

I'm certainly why, and I see my boss certainly nodding along with me in the background too, right?

I think we are all in lockstep about that's absolutely what we expect to follow.

And again, pretty rapidly, we've geared up to start right away.

Thank you.

Thank you, Council Member Herbold for asking that question.

I have the same question and I wanna thank those speakers for taking the time to review the plan and call us and to be constantly pushing, even though we are, CLC Light is the best and ahead of so many things and we also wanna keep pushing.

So thanks for those callers and thanks for the response.

Yes, General Manager Smith.

Thank you just a quick comment again, I, I agree with you.

I totally appreciate the input and just know that I've been here now almost 2 years and we are very much pivoting in our culture to be more results driven adoption of clear, clear action plans with clear ideas of or clearly defined.

we have a plan for how we will measure our success.

That is true here as David and Emeka and the rest of the team are developing the actual programs that we will be rolling out to customers, they will all have defined success measures attached to them with targets.

All right, council members, I move that the committee recommend adoption of resolution 31971. Is there a second?

Second.

It's been moved and seconded to recommend adoption of the resolution.

Any final comments?

Will the clerk please call the roll on the committee recommendation that this resolution be adopted?

Gonzalez?

Aye.

Herbold?

Aye.

Morales?

Strauss?

Yes.

Chair Peterson?

Yes.

Morales, find your mute.

She might have had to step away for a moment.

Yeah, that's fine.

We have four yes and no opposition.

Thank you.

The motion carries and the committee recommendation that the resolution be adopted will be sent to the October 5 City Council meeting.

And council members, I now move that the committee recommend passage of the council bill 119895, which accompanies this.

Is there a second?

Second.

It's been moved and seconded to recommend a passage of the bill.

Any final comments?

Okay, I see no final comments.

Will the clerk please call the roll on the committee recommendation that this bill pass?

Gonzales?

Aye.

Herbold.

Aye.

Morales.

Strauss.

Yes.

Chair Peterson?

Yes.

Four ayes, no opposition.

The motion carries, and the committee recommendation that the bill pass will be sent to the October 5 City Council meeting.

Now, item 3 on the agenda we also just talked about and was part of the PowerPoint presentation, slide number 9. That council bill will be going directly to the full council as part of this full package on Monday, October 5. So now we're going to go to item four on our agenda.

Will the clerk please read item four into the record?

Council Bill 119899, an ordinance relating to the City Light Department amending section 21.49.125 of the Seattle Municipal Code updating the City Light Department's open access transmission tariff and rates to meet changes in costs and regulations for briefing, discussion, and possible vote.

Thank you.

And as usual, we'll open it up to Eric McConaghy from our City Council Central staff has any introductory remarks.

Otherwise, we can turn it over to General Manager Smith.

Council member, thank you for asking.

I don't have any introductory remarks and I'm all ears.

Thank you.

Okay.

General manager Smith, please take it away.

Great.

Thank you.

This is a technical item.

It's actually very interesting and I think you're going to find a bit of education about the transmission assets that the city owns.

Just a connection back.

So, you know, we talk about the grid.

And certainly for Seattle, much of the grid that we think about is our distribution grid.

It's the way we are serving businesses, homes, industrial customers, and that is generally distribution level.

voltage conduit that meets those needs.

That's not always the case.

We have very large customers where they are served at a higher voltage, and that's normal.

And we also own transmission, particularly from our Skagit project, and that's really going to be the focus of this discussion.

I do have to say one thing, though, just because I was surprised Emeka didn't say it.

So a long time ago, I am not an engineer.

So I tend to think about these things in a non-technical way.

So, you know, usually when he does a talk, he talks about the phone, because I made the analogy that, you know, our smartphones are the grit.

They are the foundation that allows us to do all kinds of cool things in our lives.

And I know that, like me, I'm sure all of you have contemplated what life would be like right now if we did not have smart devices and or access to the internet.

So what our responsibility is as a utility company is to provide infrastructure that allows others to, if you will, create apps that ride on that infrastructure and contribute to the quality of life.

Certainly when you talk about, and probably some of you have attended meetings or conferences that talk about smart cities, and smart city applications all rely on the grid.

Typically, as the way of fueling and moving a smart city forward.

So this again is a pricing discussion, because when a city has access capacity in the city owned infrastructure, it makes sense to get the most value from that infrastructure.

So we do do that with respect to our transmission.

And this is this this presentation is going to talk about how we charge customers other than ourselves who might ride on that on that portion of the grid.

So with that, I'm going to turn it over to Jim Baggs for just a moment to introduce.

And I think most of you know Jim.

And he's been with the city quite a while and has served in different roles.

But this is really the area where Jim has extreme expertise.

And so it's way too geeky for me.

Jim?

for the geeky part.

Thank you, Debra.

And I'll just say a couple of words and then introduce Melissa Skelton, who's gonna do the bulk of this presentation.

But it is a little bit piling on to what Debra said and Ameka said earlier, I couldn't help but think throughout this whole grid is a platform conversation that we've had going on here is that is so true on a local level and around Seattle and everything that was said leading up to this point too.

But one of the things that's, lost on most of the public, and it is kind of a geeky sort of thing, is that the western United States and part of Canada and northern Mexico is all one big electric machine, and it's all interconnected physically, and there are commercial transactions as well.

So even though no one really sees it very much, Every hour of every day, our customers and the citizens of Seattle are benefiting from this interconnectedness that we have with the rest of the West.

And this transmission open access tariff is just one piece of the way in which we manage those relationships throughout the West.

And as Deborah said, some of the commercial practices with other customers.

It's important, even though it's not necessarily terribly visible on a day-to-day basis.

So, with that, I will introduce Melissa Skelton, who's from our Regulatory Affairs area, and she's going to run through this presentation.

Thank you.

Great.

Thank you, Jim.

Good morning, Chairman Peterson, Vice Chair Strauss, Council Members Gonzalez, Herbold, and Morales.

As Deborah introduced me, my name is Melissa Skelton, and Jim noted I work in the Regulatory Affairs Office.

Joining me today is Kathy Leone-Woods, who is our Director of Regulatory Affairs.

And we are very pleased to be here today to present our update to our Open Access Transmission Tariff, or OAT.

So I will be the one providing the presentation, and Kathy or I are both available if you have any technical questions on this legislation.

So first, I will introduce you to what an OAT is to set the stage for understanding the legislation, which is, you know, like noted, a technical bill updating what was approved by the Council back in 2009. Then I will provide you a short history of City Lights OAT.

So this includes the work done over the last several years to bring the OAT to where it is today, updated to reflect industry rate and the business needs of City Light.

Then I will highlight the key policy affirmations and provisions to this 2020 OAT update, including wholesale transmission rates.

And I will conclude with a few comments about the internal OAT implementation at City Light with this update.

Next slide, please, Maura.

Great, thank you.

Alright, so for those of you who don't spend the days and nights in the depths of transmission tariffs, like I do and Kathy does, a little bit about what it is.

So an open access transmission tariff governs how others can transmit their electricity between points on our transmission system and lines.

So OATs were created to enable choice of generation and utility providers and to ensure that transmission was not a barrier to that.

So the OAT is a suite of uniform template or pro forma for legal beagles agreements and rates that are standard across the utility industry.

And they require transmission owners to provide open, comparable, and non-discriminatory access on transmission systems to wholesale transmission customers for the interconnection of generation.

So the OAT defines the terms and conditions of that transmission service, and as noted a little bit earlier, transmission for our purposes here generally means lines that are rated 115 kV and above for the longer distance transmission of electricity.

So for City Light, that means, as Deborah noted, our transmission lines, for example, leading up to our hydro projects like at Skagit, and also east side lines utilized by Bonneville Power Administration and others.

And so for your awareness, eligible customers who could take wholesale transmission service under this tariff are other electric utilities, such as Puget Sound Energy or Snohomish PUD, and federal power marketing agencies, again, such as Bonneville, or any entity generating electricity for sale or resale.

Next slide, please, Maura.

Okay, great.

So brief background of City Lights Out and how we got to where we are here today.

So in the early 2000s, the Federal Energy Regulatory Commission, or FERC, opened inquiries examining provisions of the Federal Power Act, specifically the Open Access Transmission Service.

So FERC's the federal regulator who's responsible for ensuring the reliability of interstate transmission of electricity.

FERC examined transmission tariffs to ensure there was not undue discrimination or preference in transmission services and that the services and rates were just and reasonable.

So this and other efforts by FERC at that time stem from issues surrounding the energy crisis.

So at that time, City Light and other public power utilities like us came to an agreement with FERC that we would administer an oat like the pro forma that's required of FERC rate regulated investor owned utilities like Puget.

And we would administer those oats independent of any FERC rate regulation over us.

So we established our first oat in 2009 with council's approval.

And over the last 10 years, since FERC has first established its formal oath, there have been several updates to their provisions.

Over the last five years, since 2015, City Light has been reviewing those updates to the pro forma, led recently by my group, Regulatory Affairs, but also with input across the organization, from engineering, finance, power management, system operations, risk management, legal, and others.

In this comprehensive examination, we also hired two consultants, one legal review with a public power emphasis and one rates review with a deep history in establishing OATS methodology and rates.

We also reviewed many other OATS from other utilities for comparability.

So other public power utilities, regional utilities, and utilities who have joined the energy imbalance market in California for EIM specific provisions to ensure we were updating as appropriate for City Light.

And I will speak to EIM here shortly.

Next slide, please, Marth.

Okay, so now I will run you through the key policy affirmations and provisions of this 2020 OAT update.

So, of course, we're here because we own transmission lines and facilities in Washington State.

One of the key policy decisions made internally in City Light was to transition legacy contracts that we had that contained transmission elements to this updated OAT.

So in the past, City Light negotiated bundled agreements with other utilities, such as Puget and Snohomish, which included generation, transmission, and interconnection components.

So now we're unbundling those agreements to bring City Light in line with common and standardized utility practices.

We are still committing to provide transparent and non-discriminatory service.

And as I noticed previously, these 2020 OAT updates are modeled after the FERC Pro Forma, that standardized template for utilities, except for some small modifications to fit our municipal business needs.

Next slide, please.

So some of our modifications to those Pro Forma terms and conditions account for our status as a municipal utility.

You know, we don't have the same operational considerations as an investor-owned utility.

You know, a lot's the same, but there are some differences.

So this update allows for point-to-point transmission service, which is the transmission of capacity and energy from the point of receipt on our system to the point of delivery to where that power's going on a firm or non-firm basis.

Also, I noted earlier, we joined California's Independent System Operator, or CAISO's, Energy and Balance Market, or EIM.

We joined in April 2020, so just earlier this year.

The EIM is a real-time energy and balance market that allows participants to engage in supply and demand.

The market does that by automatically finding the lowest-cost resource from across the larger region to meet real-time needs, so that results in a balanced supply and demand at the lower cost, and that's great for our customers and for the region.

So in our joining EIM, we contractually committed to update our OAT for EIM operations.

And so one of the attachments in the materials is attachment Q, which accommodates our entrance into the energy and balance market.

So another consideration was in transmission planning.

City Light has joined Northern Grid, which is a regional transmission planning organization consolidated from Columbia Grid and the Northern Tier Transmission Group.

We continue to explore updates to our transmission planning process and the materials that's attachment K.

with the formalization of transmission planning requirements of Northern Grid.

And last, but certainly not least, is our review of our wholesale transmission methodology and rates.

Next slide, please.

So we hired, as I noted earlier, an expert rates consultant for OAT and conducted a comprehensive review of our wholesale transmission methodology and rates to ensure that we were allocating our costs proportionately and appropriately to transmission.

We generally followed FERC methodology using our 2018 financials to update our rate schedules that are contained in the legislation and updated our rates from 2008 to 2018, as I noted.

So the rates have increased from 2009, of course, due to the passage of time, but also because of the update to the FERC methodology as advised by our rates consultant, which includes all City Lights transmission lines in our calculations.

However, I want to make, you know, pretty clear here.

We expect a neutral fiscal impact as the OAT rates methodology requires cost-based transmission service.

So tariff's not like a moneymaker for the utility, unfortunately, because FERC does require that those rates be just and reasonable and not unduly discriminatory or preferential.

So all customers pay the same amount, you know, when they take service.

Next slide, please.

So that's the history and provisions to this OAT update.

Then we move into implementation.

We begin updating our implementation process internally to move those legacy agreements that I noted that we have as they expire into this updated OAT pro forma structure.

This will occur with some small shifts in responsibility and interactions internally in City Light and through the tariff implementation.

And of course, that includes updates to various business practices, as you can see on this slide, financial accounting, standards of conduct, implementing a transmission website, and the like.

So that's, next slide, please.

That's all for my formal part of the presentation.

I'd like to see if the committee has any questions.

I'd be happy to answer any.

Kathy is also available here.

I thank you for your time so far.

Thank you.

Thank you.

I see Council Member Strauss' question.

Thank you, Chair.

Thank you, Melissa.

And also, thank you, Jim Baggs.

It's great to see you.

Being this is the first time I've seen you in committee, I just want to call out the fact is we were waiting for Deborah Smith to come on board here.

Jim was the one that kept a steady hand on the on the till of City Light and just call out the fact that when we had a billing backlog, Jim came in and helped really make sure granted the staff that work with you are the ones that get that job done.

But Jim, you have done yeoman's work for our city light.

So I just wanted to highlight and thank you.

My one question about Western power grid.

It's my understanding that we've got three power grids generally in the United States, Northeastern, Western, and then is Texas its own grid?

I can't speak to that.

I might link to Kathy to that.

I believe that it's still the zone.

I haven't paid attention to the regions, what's happening outside.

Kathy, can you help with that?

Yes.

Yes, it is.

Yes, there's the West.

It's a whole other country, they say.

Yeah.

Excellent.

So just really great to see you, Jim.

And thank you for that update.

Melissa, thank you for a really great presentation.

And I think you answered the question when you said that we have to keep our rates fair and uniform.

Since other entities are using our power grid to move their electricity, is it at all possible for us to charge them a higher rate for moving dirty power across our lines or make them buy carbon credits?

Is there anything we can do to disincentivize dirty electricity?

Yeah, that's a great question.

Thank you for asking it.

Like you stated and I noted earlier in my presentation, the rates are uniform throughout.

We treat everyone the same.

What that does allow also, you know, when you're talking about the dirty power, as you state, is that it provides equal access to alternative and renewable forms of power.

So, you know, we can't charge any different rates for the renewable power versus coal power, but we're providing equal access to the system.

Thank you.

This is both, I'll merge both of my questions into one.

I think that I know the answer, but also for the energy imbalance market and the fact that we are not regulated by FERC because we are regulated by the city.

Again, do we get any benefits from the energy imbalance market for being publicly owned?

And are there any benefits that we receive for being publicly owned rather than investor and profit owned?

Yeah, so thank you for those questions.

So the energy imbalanced market, we aren't treated any differently as a public power entity there.

I think there's 10 or 11 other entities that have joined EIM, but I'm by no means the expert in EIM and the utility, but there's no specific benefit to being a public power entity.

And then as to your second question, as far as kind of like authority over City Light and our open access transmission tariff, I want to make clear.

So we are not rate regulated by FERC.

So we are, you know, more wholly generally regulated by FERC at a high level, but it is up to you, City Council, as our regulator to keep us kind of in check.

And so I don't know if you had this as a question, but if there were any issues with the OAT or if we have any updates or if we're not falling in line with what we should be doing, the last The last recourse would be someone could take us to FERC.

And I'll speak personally here.

I don't know if Kathy has any comments or Jim as well on this.

If someone took us to FERC, we have failed in regulatory affairs at City Light.

So I would anticipate going forward that we will take a look at the rates internally.

I can't guess what that is because that won't be in our group going forward, maybe every three to five years.

And if we have rate updates, we'll bring them back to you so that you can, you know, take a look at it.

Council can approve those going forward.

And then if we have any updates to the pro forma, we will, you know, conduct those internally.

If there's anything significant, we'd bring it back to you for sure.

I might add one brief comment on top of what Melissa said, which is absolutely correct.

Going back to Commissioner Strauss' question, your question about the differentiation in rates, and this is really more context than anything else, but part of the impetus behind the development of open access tariffs nationwide really had to do with a long-time historical perspective in which utilities were able to basically control the transportation network and do utility things and accept or deny permission for other entities to use or use their networks to provide alternative sources of energy and the like.

And there was a point in the 90s when FERC came along and said, enough already.

There are these other alternative types of electricity, many of which are renewables, but other providers besides monopoly-owned utilities across the country.

and mandated the development of open access tariffs to essentially level the playing field so that utilities could not prohibit some of the cleaner sources of energy from being developed and brought into the grid.

Thank you, Jim.

So now we are on the opposite side of that coin where we can't prohibit dirty electricity.

That's interesting to see how things have shifted.

And thank you.

Those are all my questions.

Really great presentation, Melissa, Kathy.

Thank you all.

Thank you.

Hey, it is worth noting, though, before you move on, that while we can't prohibit Washington State's Clean Energy Transformation Act, which was put in voted in place by, you know, the last legislative session, or is it two sessions ago now?

I think it was 19, same as the Transportation Electrification Authority.

Over time, that is, you know, so it is true.

I mean, and of course, it's a grid and you put stuff in one end and theoretically it comes out the other end, but it also, it's like, it's like one of those old sprinklers where they used to lay on the ground with holes everywhere.

So, in fact, you know, power's coming out everywhere.

Everyone needs it along the way on that grid.

And so, You know, Washington State did a good thing.

And as that ramps up and as those provisions and requirements change, you know, any dirty power that might be going in would only be riding briefly on our system because it isn't going to be staying in Washington State.

And ironically, this is just a quick aside, but you'll find this interesting, I think.

I was on a call yesterday for one of our industry trade groups, and we were talking about the legislative outlook for 2021. around power and clean energy.

Before 2019, I thought Oregon would pass a cap and trade, a form of taxing carbon.

I thought Oregon would do that in 2019 because they worked on it for a couple of years.

And then I thought Washington would have an opportunity to piggyback.

And as it happened, Oregon did not get that through.

The Republican electeds actually walked out to not take a vote.

It was a big deal.

And Washington passed CETA.

So now what's happening in Oregon is I think Oregon is looking very seriously at going for more of a clean energy, a CETA type ruling instead of taxation.

So as you begin to expand and the distance that this interconnected grid is covering, and you begin to ramp up those clean energy requirements in the West, essentially, Council Member, you'll get there.

You'll get there over time, but you will get there.

Thank you, General Manager Smith, and thanks for those questions, Council Member Strauss.

Any other questions on this item for Council Bill 119-899?

OK, committee members, I'd like to move now that the committee recommend passage of Council Bill 119899. Is there a second?

Second.

Second.

Thank you.

It's been moved and seconded to recommend passage of this bill.

Any final comments?

All right.

Will the clerk please call the roll on the committee recommendation that this bill pass?

Gonzales?

Aye.

Herbold?

Aye.

Morales.

Aye.

Strauss.

Yes.

Chair Peterson.

Yes.

Five ayes and no nos.

Motion carries and the committee recommendation that the bill pass will be sent to the October 5 City Council meeting.

Now, committee members, the final item on our agenda, Council Bill 119898, Will the clerk please read this item five into the record.

Council Bill 119898, an ordinance relating to the City Light Department amending subsection 21.49.086D of the Seattle Municipal Code to define the net wholesale revenue target used in rate stabilization account operations for 2021 through 2024. for briefing, discussion, and possible vote.

Thank you.

And to our City Council Central staff, Eric McConaghy, any introductory comments?

Not much to say other than what you'll hear today will have, it does have a direct effect on customer bills.

There's a small surcharge that goes into bills that will be explained.

And so this is something that customers would be interested in, it is important, and there's a possibility of good news at the top of next year.

And I'm scooping Kirstie a little bit, I should let her explain that.

Thank you.

Thank you, Eric.

General Manager Smith, please.

Yeah, I'm also going to just- Council President.

Thank you.

I mentioned in the chat box that I unfortunately have a conflict at 1130 am I expected that we would be done by now.

So I apologize for that scheduling.

Snafu on my end just wanted to say thanks to Seattle City Light for well done work during today's committee hearing.

And I'm really sorry that I won't be here for your last presentation.

It's not for lack of interest, but unfortunately, I just have a different commitment that starts right now at 1130. So I wanted to make sure that the clerk and and the chair were aware that I'm now going to, unfortunately, have to excuse myself from the meeting, but I appreciate the opportunity to have been able to listen and vote in favor of the previous legislation.

Thank you.

Thank you, Council President.

General Manager Smith, go ahead and introduce this item for us.

Yeah, and this is, again, it's an important piece.

It does directly impact rates.

To reiterate, as a publicly owned utility, you are our rate-setting body.

And this is a piece of that, so we appreciate the opportunity to talk with you and get this locked in.

Before I finish, just because I know we're going to be ending and we are running a bit late, I was remiss this morning in not introducing Craig Smith.

So I think many of you know Craig Smith.

He was not an official presenter because as we have stood up our new innovation and electrification group under David Logsdon, that work has moved away from Craig.

But I did also want to share with you that Craig continues to work very closely with MECA and his team.

And Craig has actually just accepted an opportunity to be our chief customer officer.

So Craig has a huge body of work in front of him, less work around electrification, but all the items that you saw today, they started under Craig's watch.

And I just want to make sure he gets the credit for that because He brought us a long way.

So with that, I'm going to turn it over to our Chief Financial Officer, Kirstie Granger, and her team.

Great, thank you.

So this is a short ordinance and I hope a quick four-slide presentation for this topic.

Maura, if you could move to the next.

There we go.

So this ordinance pertains to net wholesale revenue, which is the revenue that City Light gets from the sales of surplus electricity.

As you may know, our clean, low cost, primarily hydroelectric resources generate more power than we need to serve our customer owners.

And this is a good thing.

It protects us from market risk.

And then we sell the surplus power to other utilities and This supplements our revenues, which helps keep rates low, which is good.

One challenge around these revenues is that they are notoriously hard to forecast and budget for.

There's a lot of internal, I mean, external forces.

There's uncertainty on the supply and the demand side, hydro runoff, weather, retail demand, plus the market value of the surplus electricity is hard to predict.

We move on to the next slide, Maura.

Thank you.

So enter the rate stabilization account, which was established actually in the aftermath of the last recession in 2011. The RSA is a mechanism for limiting the impact of these external factors on City Light's revenues and our rates.

And I acknowledge the slide has a lot of numbers, and I'm not going to dig into it too much, but the point is that the RSA is a cash reserve.

and a set of accounting rules that are established by ordinance in municipal code.

And they buffer the uncertainty of net wholesale revenues.

And the way it works is that we target or budget lowercase budgets and a certain amount of revenues.

And then if the revenues that we realize are higher, we deposit the extra into the RSA.

And conversely, if the revenues come in lower, then we withdraw and supplement.

from the RSA.

And if this RSA reserve gets depleted, at certain levels, automatic rate surcharges come on to refill it.

And as Eric mentioned, we do have a small surcharge in place right now, 3%, and we'll talk a little bit more about that in rates later in the presentation.

So again, the purpose of this ordinance is to establish this baseline or target or budget, we use those terms sort of interchangeably, for 2021 and future years.

because that is required by Municipal Code.

Next slide, Maura.

Great, okay.

So you can see here in the green table what the ordinance does is establish that baseline of $60 million for 2021 and then $40 million for the years 2022, 23, and 24. And normally, this ordinance would be part of a larger legislative package.

It would follow in the wake of our strategic plan.

It would be accompanied by a rate ordinance.

And then all of that would feed into the budget process.

But 2020 is not a normal year.

Our strategic plan is paused.

We don't have a rate action proposed for 2021. And so this ordinance is the only budget prelude item that City Light has this year.

And you'll note, 2021, the 60 million that we have there, obviously, that's higher than we have had in 2020 or in some previous years.

But it is supported by fundamentals, empirical factors.

We are seeing lower electricity consumption from our retail customers, particularly on the commercial and industrial side.

And we anticipate that this will continue along with the recession into 2021. And so this will reduce our retail sales, but we will take that energy and sell it on the wholesale market.

and recapture some of the revenue that we will have lost.

And so it's important to recognize that interplay as we go into setting our budgets.

And furthermore, the market prices in 2021 are quite strong, and we are seeing incremental revenues from City Light's participation in the WEIM.

So all of these factors together are making for What we hope will be a very strong year for wholesale revenues in 2021. Our current forecast is 74 million, which is even a little higher than when we were drafting this ordinance.

So with all of that in mind, that 60 million we feel is a pretty prudent target for next year.

And then for the out years, 2022 through 24, that 40 million is a placeholder value.

And we would anticipate that this could be updated in future budget rates cycles as needed.

So that's what the ordinance is all about.

My last slide, thanks Mara, perfect.

It's just a quick discussion about rates because the RSA does impact rates as it is a rate mechanism.

So the RSA surcharge right now is at 3% and it increased back in November of 2019, although customers wouldn't have seen this impact on their bills because there was another rate change that happened concurrently where we decreased due to the BPA pass-through.

And so what actually happened in rates was a tiny rate decrease.

We had a general increase that averaged 4.7% at the beginning of this year.

And then looking forward, as I mentioned, we don't anticipate having a rate increase for 2021 pending budget proceedings.

So we'll be talking more about that in the coming months.

And then the good news, as Eric alluded, is that we anticipate that given the RSA baselines, the net wholesale revenue targets proposed in this ordinance, presuming that we have an okay snowpack and a good runoff and our forecasts materialize, those revenues come through, the RSA surcharge should decrease and then be lifted in 2021. And so that will be some very welcome rate relief for our customer owners.

And that's all I have.

What questions?

I'm going to turn it over to you.

I'm going to turn it over to you.

I'm going to turn it over to you.

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I'm going to turn it over to you.

I'm going to The rates will not go up and in fact will initially go down as your prediction.

That's that's right.

We don't have any plans to increase rates for 2021 and hopefully the rates will will go down again.

The.

The whole intent of the RSA is to balance this very uncertain revenue component.

And so there is some uncertainty as to what will happen, but we feel pretty good that we will be able, that these rate decreases will come through and that that surcharge will be lifted next year.

Thank you.

Council Member Herbold.

Thank you, a couple questions.

Can you clarify, are the automatic rate surcharges that refill the RSA, those are surcharges on residential customers, but they're triggered by a loss of revenue on the wholesale side?

All customers.

Okay, but triggered by the loss of revenue on the wholesale side.

Yes, and then can you also explain on slide for why the forecast for 2021 and 2022 is higher than the baseline?

Is that just a typical forecasting?

So that that forecast is. put together by our staff.

We have models that look at what hydro volumes are forecast to be, what the prices are forecast to be, and then it puts it all together and generates a forecast and it moves around quite a bit.

So it's a It's a thing that we are constantly checking.

So yeah, right now, the baseline that we've set looks pretty conservative compared to the forecasts that we have right now.

As I mentioned, when we drafted this ordinance, I think the market prices and the hydro was not quite as strong as it is now.

So it's moving week on week.

And just to add on that, City Light was in the process of slowly ramping those down.

So were we not having the, or expecting the year next year, which is a result of both what we expect to be a good water year, where prices are currently, but also really importantly, the reduction in retail load associated with COVID means theoretically, we will have more revenue to sell in the market, which is why you see us taking, you know, expecting higher levels potentially next year than we have.

And it's part of why we're having a good year this year.

It's also related to our participation in the energy imbalance market.

So you'll recall we went live in April.

But again, that was the end of the winter weather where prices are typically higher.

So those are part of the reason.

If those things weren't happening, what you would see for 2021, which is what was in our last strategic plan that is still in place, what you would see is 45 million, because we were stair-stepping down our projections each year to 40 million, and then we hold.

Okay.

Thank you.

Thank you.

Council members, any final questions?

Council member Strauss.

Thank you, Chair Peterson.

And my apologies for always having so many questions.

Christy, such a great presentation.

And thank you for noting that this is usually part of a larger package.

And we were expecting the strategic plan update to come this year.

Granted, due to extenuating circumstances, COVID, we're waiting on that.

It's really helpful for me to understand that retail usage is hard to determine.

This year, even more difficult to determine And we know that retail demand is down, which makes us also need to shift to wholesale in a larger way than usual.

I've got a number of questions about wholesale, selling our energy on the wholesale market.

I guess one of them is, how do we strategically sell our energy on the market?

And what I mean by that is, I guess I'll just ask you all of my questions at once and I'll let you kind of go from there, which is how does a whole selling whole on the wholesale market rather than retail impact the water behind the dams?

How do we strategically sell this power?

Can we turn on and off our dam productivity to meet our retail needs and then to simultaneously when Retail needs are low.

Can we turn the dam productivity on and off to sell our energy strategically at the highest rate possible?

Can we control our load?

Is there any controls that we can put on the load on our grid to strategically sell this electricity?

And then finally, how does our depleted snowpack and the need to keep water behind the dams for future use impact the rate stabilization fund?

Sorry for all of those questions.

There they are all at once.

I have one additional question after that.

Great.

I'll take a second.

And then, Kirsten, you follow up.

So first of all, I can see Emeka's ready, too.

So we're OK.

Well, Emeka, if you want to talk about the dams, why don't you go ahead and talk about the dams?

I'm sure any of us could do a fine job here, but I'll give it a shot.

So I'll just say to the council member, I think a lot of what you've mentioned is part of what makes the hydro assets we have so important.

to the decarbonization mission.

And I think most experts would tell you, for example, the Boundary Dam is one of the most flexible and dynamic hydro resources there is in the region, certainly.

And so, you know, our assets are very flexible.

They certainly allow us to ramp up and ramp down and be very dynamic with how we use our energy and therefore be very, very thoughtful and productive with how we play in the marketplace.

I think also to your point about load control, you know, that is a really important point, a really important part of the dynamic future grid that we're talking about, the grid modernization, right?

You know, think of it sort of like an equation, you know, when you only have the ability to control supply, you're much less dynamic than if you have some control over your demand, right?

And so being able to control both sides of that equation is certainly something that we are after that is part of our strategic intent.

And so we are looking at sort of flexible loads and dynamic loads and demand side management like demand response programs to help us increase our capabilities in that.

And that will only become more effective and more useful and more valuable to us as time goes on.

Yeah, and I would just throw in and say, So we operate Skagit and Boundary, which are our two facilities.

We actually are able to operate them strategically in tandem.

So we ramp up and we ramp down to take advantage of flows, prices, as well as the load curve for the City of Seattle.

And so we can, we do have within the bounds of our FERC license, we have the ability to hold water, to move water.

A spill, which is typically a summer or early summer, late spring activity.

Spill is when we're getting so much water from runoff and we don't have much ability to control that.

So you'll look at a year and you'll say, well, what does the year look like?

What do prices look like?

A lot of that has to do with how quickly The things warm up, quite frankly, in the mountains and how quickly that snow melts and the water comes because we are protecting fish, we're protecting recreation, we're protecting environment.

A good example, last year was a terrible water year.

And I don't remember the exact number, but I wanna say we made like $14.7 million, somewhere in, I'm going from memory, but it was a very low water year.

And partly, that was very much about water.

And honestly, we never had enough water to even open the Skagit Recreational Facilities because water was so low.

When water's low, the interesting thing is, when generation is down because of the water year, prices do tend to go up.

So you'll make up some of what you lost in volume on price, but generally you'll never make up all of that, because even though there may be spikes, there'll be a day or, you know, there was a day in August where the region had troubles meeting the demand.

So, you know, our goal continues to be to, as Emeka said, make the best use of the resource.

And one of our strategies around that, which we will be bringing back to you when we bring our next strategic plan, we would have been bringing it to you sooner, is to look at different pricing structures and potentially using a time of day rates that allow us to incent customers to use less power during times when that power has the most value in the market.

By doing so, we would be able to sell more, increase our revenues, and then in turn, as you've seen through this presentation, that does fall back as a direct benefit to our rate payers.

Thank you.

That was very helpful.

You got most of it, yeah.

Christy, anything to add there, no?

So I think you highlighted a couple of things there that are really important.

I won't discuss boundary, but I will say that the Skagit dams are above our salmon runs, is my understanding.

And so as the dam salmon conversation occurs, that is a benefit that the dams that we have in the Skagit are above the salmon runs.

And it's also really a benefit that the dams are cascading, and so as we diminish the water load behind one dam, it just flows into the next, which is a really important aspect of our ability to retain our water.

I guess my last question here, it's kind of in the same vein that I've been talking about all day.

I think I know the answer, but can we charge more money for clean electricity on the wholesale market?

Deborah, you're on mute.

Yeah, that's a great question.

So, gosh, when I started in this industry, we were just forming markets and there was no transparency and everything was a bilateral agreement.

Today, we have very liquid, very transparent markets.

So, You know, when you when we are surplus, our real time trading floor is up there 24 7 and they are balancing, you know, within the hour within the 15 minute increments to make sure that the people that we serve here have everything they need and that we are able to take advantage of any surplus or.

purchase if we are short in the hour.

So that's how that all works.

But the market sets the price and the price is dependent on the qualities or attributes of the product.

So yes, one of the advantages to the EIM when the council at the time, you know, that was a big decision that was made and it was a really important decision.

We were not the first public utility to join the EIM because we slowed our implementation slightly to allow the technology to catch up, but we were the first public utility in the region to make that decision.

And it was largely an environmentally based decision.

There are financial issues impacted, but what it does is it, it allows us to sell surplus power into California, where there is a premium placed on the carbon free attributes of our resource.

And so it's not that we can charge more.

It's that the market places are not in most places a true renewable resource.

And that is unless it's run a river or small hydro.

It is a carbon free resource.

And Um, and that carbon free attributes, especially as we think about Sita, or, you know, if we do place a price on carbon per se, that carbon free resource comes ever more valuable.

And I just want to say, this will not be the 1st time we have discussions about this because.

We are at the beginning of our Skagit relicensing process, and that's one of the decisions, you know, we will be starting the study phase and as early as November meeting with the tribes and others to talk about what studies will incorporate in the plan.

But as we move through that process, that will be the issue.

We want to do everything we can for fish and for the environment.

We want to value and support the indigenous populations and the people, the tribes on whose land we operate facilities.

And we want to make sure that our resource remains economical and holds its value for the people of Seattle.

So you're kind of going to be balancing all three of those.

And at the end of the day, the council will wind up learning quite a bit about that.

I look forward to that, and Kirstie, such a great presentation.

General Manager Smith, amazing.

Thank you for your leadership here.

And Mecca, I couldn't, our city would be in a, we would not be in as good of a place were it not for you being here on our team.

And so thank you all for answering all of my questions.

Thank you, Council Member Strauss.

Any other questions, Council Members, before we move to adopt this council bill?

Okay, seeing no further questions, I move the committee recommend passage of Council Bill 119898. Is there a second?

Second.

Thank you.

The bill has been moved and seconded to recommend passage.

Any final comments?

Okay, will the clerk please call the roll on the committee recommendation that this bill pass?

Herbold.

Yes.

Morales.

Yes.

Strauss.

Yes.

Chair Peterson.

Yes.

It's four yes, nobody no.

Thank you.

The motion carries and the committee recommendation that the bill pass will be sent to the October 5 City Council meeting.

Everybody, this concludes the September 25, 2020 meeting of the Transportation and Utilities Committee.

The committee will be in hiatus for the council's required 2021 budget process.

We will meet again Wednesday, December 2nd.

All right, thank you, everybody.

Enjoy the weekend.

Bye, thank you.

Thank you, bye.