Seattle City Light, the city’s publicly owned electric utility, recently made an announcement that may bring some unwelcome news to its customers. Beginning January 1, 2024, all customers can expect to see a nearly 10% increase in their electric bills. This rate hike comes as the utility seeks to address various operational and maintenance costs while also investing in future infrastructure improvements.
For the average residential customer, this increase translates to approximately $9 per month or $18 per bimonthly billing cycle. However, customers enrolled in the Utility Discount Program (UDP) should anticipate an estimated $4 monthly increase on average. Additionally, the BPA passthrough and RSA surcharge will contribute to an average increase of $4 per month for all customers.
Seattle City Light understands the potential impact this rate increase may have on its customers’ budgets. To help alleviate the financial burden, the utility is offering a range of assistance programs. Customers who qualify can take advantage of flexible payment plans and bill assistance programs to help manage their expenses during this transition.
The rate increase includes 4.5% base rate increase approved by the Seattle City Council, a 1% surcharge to cover higher costs from the Bonneville Power Administration (PBA) in 2024 and a 4% Rate Stabilization Account (RSA) surcharge due to increased net wholesale power costs resulting from unfavorable weather and market price conditions. It is important for customers to explore available options and determine if they are eligible for assistance.
While rate increases are never welcome news, it is essential to understand the underlying reasons behind the rise in costs. The additional revenue generated from this rate increase will be directed towards maintaining the reliability of the power grid, improving infrastructure, and ensuring a sustainable energy future for the city.
