ORDINANCE _________________

AN ORDINANCE relating to the City Light Department; establishing the City Light Review Panel and defining its composition and role, and repealing Ordinances 122335, 123032, and 123148 relating to the City Light Rates Advisory Committee, and ratifying and confirming certain prior acts.

WHEREAS, the City Light Department (City Light) is charged by the City with meeting the electricity needs of its customers cost effectively while complying with applicable policies and regulations; and

WHEREAS, to discharge that responsibility now and in the future, City Light must be prudently run with a view to its long-term viability; and

WHEREAS, City Light is the largest department in the City, with an annual budget of over one billion dollars and a workforce of over 1,600 people; and

WHEREAS, City Light manages generating assets, long-term power contracts, and transmission and distribution infrastructure required to meet the needs of its customers; and

WHEREAS, managing those assets wisely in the best interests of the rate-payers requires the utility to plan for the long term; and

WHEREAS, City Light faces significant challenges on a variety of fronts that require it to chart a course for the future; and

WHEREAS, to meet these challenges the utility is developing a strategic vision and plan to guide it over the next decade; and

WHEREAS, the Mayor and Council desire to have the input and engagement of the rate payers in formulating that plan; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Establishment of the City Light Review Panel.

The City Light Review Panel (Panel) is established.

Section 2. Composition of the Panel.

The Panel is comprised of nine members drawn from among City Light's customers, occupying numbered positions #1 through #9:

An economist or similar profession, preferably with a background in energy economics or commodity risk management (Position #1);

A financial analyst or similar profession, preferably with a background in financing large capital projects (Position #2);

A representative of a non-profit or non-governmental organization whose mission is to advocate for the efficient use of energy, preferably with knowledge of the electricity industry (Position #3);

A representative from among City Light's residential customers, preferably with knowledge of the electricity industry (Position #4);

A representative from among City Light's commercial customers, preferably with knowledge of financial planning and budgeting (Position #5);

A representative from among City Light's industrial customers, preferably with background in financial planning and budgeting (Position #6);

A representative from among the advocates for City Light's low income customers, preferably with experience navigating City government and knowledge of the electricity industry (Position #7);

At large (Position #8); and

A representative from among City Light's suburban franchise areas (Position #9).

The Mayor shall appoint the odd-numbered positions, beginning with Position #1 and the Council shall appoint the even-numbered positions beginning with Position #2. All Panel members shall be confirmed by the City Council.

Section 3. Terms of Appointment to the Panel.

The term of the appointment of members to the Panel shall, in general, be three years, except that at the inception of the Panel Positions #1, #2, and #3 shall be appointed for a term of one year and Positions #4, #5, and #6 shall be appointed for a term of two years. This will allow for staggered appointments of three Panel members each year thereafter, thus ensuring a degree of continuity of Panel membership. A member whose term has expired will continue to serve until a successor has been confirmed by the Council.

By a majority vote of its members, the Panel may dismiss a member for three consecutive unexcused absences. The Panel must advise the member to be dismissed, the Council, and the Mayor in writing at least five days before taking the action.

Upon the dismissal, resignation, or incapacity of a member of the Panel, the appointing authority for that Position may appoint a replacement to serve the remainder of the member's term without confirmation by the Council.

Panel members will serve without pay, but may be reimbursed for reasonable expenses for attending meetings.

Section 4. Role of the Panel.

The Panel shall

(a) review and assess City Light's strategic plan and provide an opinion on the merits of the plan and future revisions to it to the Mayor and the Council. The Council anticipates that the strategic plan will at a minimum consider long term strategies to rehabilitate and maintain City Light's infrastructure, provide for labor-force continuity, maintain a portfolio of resources adequate to meet the needs of its customers, and ensure continued regulatory compliance. The Panel will advise the Council to include other issues that should be part of City Light's strategic planning framework;

(b) assist the Mayor and the Council in engaging rate payers in discussions of the merits and implications of the strategic plan and revisions thereto;

(c) provide an assessment to the Mayor and the Council of the adequacy of financial policies to protect the financial integrity of the utility and the sufficiency of the policies to support implementation of the adopted strategic plan;

(d) review changes to City Light's rates not already authorized by the Seattle Municipal Code and provide an opinion to the Mayor and the Council on the adequacy and prudence of such rate changes in light of adopted planning assumptions and financial policies;

(e) in its second year or earlier, and at least once every three years thereafter, assess City Light's rate design to ensure that rates send the appropriate signals to customers to use electricity efficiently; and

(f) in its second year or earlier, and at least every three years thereafter, assess City Light's implementation of marginal cost allocation among customer classes to ensure that it provides a fair allocation of costs among customer classes and takes account of changes in costs and consumption.

Section 5. Panel Operating Rules.

The Panel shall establish its own rules for meeting attendance, quorum, meeting frequency, etc., except that the Panel shall meet at least four times in any 12-month period. Meetings shall be open to the public, except that meetings or portions thereof may be closed if RCW Chapter 42.30 would have allowed it to be closed had the Panel been subject to that law.

The minutes of Panel meetings and proceedings and Panel findings and recommendations shall be made public.

Section 6. Rate Setting.

The Council will not adopt rate changes proposed by the Mayor for at least sixty days after the Council Bill authorizing the rate change has been referred by the Council to the relevant standing Committee to allow the Panel sufficient time to review the proposed changes and sufficient opportunity for the public to provide input to both the Panel and the Council. However, this restriction does not apply to rate changes initiated by the Council to address emergent issues or to protect the financial integrity of the utility.

Section 8. Support for the Panel.

The Executive shall provide logistical and staff support to the Panel, and will make all reasonable efforts to address Panel requests for information or analysis pertinent to the issues under consideration by the Panel, and to do so in a timely manner.

The Panel shall work closely with staff designated by both the Council and the Mayor to ensure that, as it discharges its duties, the Panel understands the issues and concerns of the elected representatives of the City.

Section 7. Repeal of Prior Authority.

Ordinances 122335, 123032, and 123148 are repealed and any membership established under their authority is terminated.

Section 9. Any act consistent with the authority of this ordinance that is taken after its passage but prior to its effective date is hereby ratified and confirmed.

Section 10. Effective Date. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of ________________________, 2010, and signed by me in open session in authentication of its passage this _____ day of ___________________, 2010. _________________________________ President __________of the City Council

Approved by me this ____ day of _____________________, 2010. _________________________________ Michael McGinn

Filed by me this ____ day of __________________________, 2010. ____________________________________ City Clerk

February 1, 2010 Version #1b T