As a public, not-for-profit utility, Seattle City Light makes decisions for the long-term benefit of our customers and the communities we serve. Effective January 1, 2026, you will see the previously approved average rate increase of 5.4% start appearing on your bill. Residential customers can anticipate an increase of around $4 per month; those enrolled in the Utility Discount Program will see a $2 increase per month on their bills. Business customers can expect to see overall bill increases between 4% to 7%, depending on their customer class and consumption profile.
How City Light sets rates
The 2025-2026 rate increases were first outlined in City Light’s 2025-2030 Strategic Plan update, which was approved and formally adopted by the Seattle City Council in fall 2024. The proposed rate increases were endorsed by the City Light Review Panel, which consists of representatives from all of City Light’s customer groups and areas of utility business expertise who advise the utility on strategic planning and utility rates.
As part of the rate setting process, City Light does a cost-of-service analysis, which leads to different sized average rate increases between rate classes as outlined below.
2026 Rate Increases by Class
See additional information on Residential Rates or Business Rates.
All City Light bills include a fixed monthly basic service charge. This charge covers the costs of metering, billing, customer support, and other services every customer needs regardless of how much energy they use. You will notice the basic service charge on your bill increases in 2026. This increase is to better match the actual costs for delivering these customer services.
We know even a small increase can be a burden for some. If you or someone you know is having trouble paying their electric bill, City Light has payments plans and bill assistance programs that are tailored to meet your needs.
City Light’s mission is to safely deliver affordable, reliable, and environmentally responsible electric service. We power Seattle and our neighboring communities, and we want to empower you with information, resources, and financial support to help you save energy and save money.
Why rate increases are necessary
We work hard to keep rates low and predictable for all customers, but rate adjustments are necessary to safely ensure the delivery of reliable and environmentally responsible energy. Seattle has long benefited from the foresight of past generations, but the time has come to invest in a resilient, clean, and reliable energy system. Our electric system is under increasing strain—from aging infrastructure, growing demand, and the impacts of climate change.
Investing in our grid for reliability and growth
Customers are experiencing more outages. While extreme weather plays a role, the primary cause is decades of underinvestment in our electric grid. We are increasingly relying on aging infrastructure that is now well beyond its intended lifespan.
For example:
- $2 billion is needed to replace 330 miles of direct-buried cable—now over 60 years old.
- $1 billion is required to upgrade other long-deferred grid components.
These investments are essential to ensure reliable service and to support Seattle’s growing electricity needs—from new housing and businesses to the electrification of vehicles and buildings.
Investing in new energy resources and transmission
Over the past five years, the average cost of market power has nearly doubled compared to the previous two decades. To reduce reliance on fluctuating markets, we must build our own clean, reliable generation.
We are investing in new energy resources to meet future demand. Seattle’s electricity needs are expected to grow significantly in the next decade, driven by growth and decarbonization goals. To address this challenge, we are:
- Pursuing wind, solar, and battery storage projects.
- Exploring firm, clean energy options like geothermal and small modular reactors.
- Planning new transmission lines to bring power to our urban service area.
License renewal
At the same time, we are renewing the federal license for the three dams that make up the Skagit River Hydroelectric Project, which provides 20% of Seattle’s electricity. The new 50-year license is estimated to cost nearly $4 billion and reflects our commitment to salmon recovery, Tribal partnerships, and environmental stewardship.
Climate impacts
Storms are becoming more intense, lasting longer, and affecting broader areas. Wildfires are an emerging risk across the West. Our grid must be ready to deliver power during extreme cold snaps, heat waves, and emergencies like fires or bomb cyclones. To do this, we must invest in new technologies that will enhance customer communications, improve cybersecurity, and help manage a more dynamic grid and respond faster to outages.
What the future holds
Looking ahead to 2027 and beyond, we anticipate annual rate increases of 7 to 10% to support major investments in infrastructure, modernizing the grid, and advancing clean energy. We are updating our Strategic Plan for 2027-2032 and expect to complete it by the second quarter of 2026. The plan will identify rates to address rising costs due to inflation and the critical investments we need to make to keep our electric system reliable, resilient, and ready for the future.