Update: Seattle City Light’s 2027-2032 Strategic Plan was approved by Seattle City Council on July 7, 2026.
The energy industry is at a turning point, and so are we. How we use energy, where it comes from, and what it costs is changing quickly.
Like utilities across the nation, City Light faces rising cost pressures due to aging infrastructure; needs for new generation, transmission, and technology to manage significantly growing loads; and broader economic factors such as inflation, tariffs, supply chain disruptions, and rising wages.
We’re committed to meeting this reality head on — and ensuring our work stays aligned with what matters most to our customers: reliability, affordability, and sustainability.
Today, we are presenting our 2027-2032 Strategic Plan and rate ordinance to Seattle City Council’s Parks & City Light Committee. The plan reflects the work ahead of us to meet rising electricity demand, respond to climate impacts, and replace aging infrastructure. It includes a proposed 9.5% average rate increase in both 2027 and 2028 to fund these investments.
We’re Here to Help
We recognize that electricity bills are only one piece of the rising costs families and businesses are facing. As we move forward with the critical investments described in the Strategic Plan, we remain firmly dedicated to managing costs responsibly and making the most of each dollar entrusted to us by our customers.
City Light is committed to ensuring all customers have access to clean, affordable, and reliable electricity no matter their financial circumstances. We offer a variety of programs and tools to help customers manage their energy use and afford their utility bills. We will be expanding this support next year to reach more customers. We are helping customers with strategies to cut waste, reduce energy consumption, and keep more money in their pockets with our simple energy-saving tips and customer programs.
Greater Investment Required to Meet our Challenges
Several interconnected pressures are driving the need for higher rates, including rising power costs, an aging grid, and inflation.
We held rates low as the region and the world recovered from a pandemic, and our rates have not kept pace with inflation. From 2020 to 2025, prices for electric parts and materials have escalated dramatically including utility poles, up more than 19%; transformers, up 23%; and wire and cable, up 93%.
After years of relatively flat electricity demand, we expect to see steady growth as more residents and businesses adopt electric vehicles and transition from fossil-fuel based heating and cooling to electric alternatives. To meet that demand reliably, we need to invest in significant new resources: wind, solar, batteries, firm capacity, and expanded transmission, as well as demand-side solutions.
While each customer’s bill impact will depend on many factors including energy usage, heat source, age and size of their home, a typical residential customer can expect their monthly bill to increase by about $10 in 2027 and another $10 in 2028. Customers participating in the Utility Discount Program will see bills increase by approximately $4 a month in 2027 and again in 2028.
What We Will Deliver
We took a hard look at where we stand today — examining industry trends, shifting customer needs, and what we’ve heard from stakeholders — to identify the areas that require urgent, proactive planning and greater investment. The proposed rate increase will support essential priorities, including:
- Procuring new carbon-free generation resources to meet growing electricity demand.
- Replacing aging infrastructure, including failing direct-buried underground electrical cable, to reliably serve customers.
- Fulfilling commitments made in the new license for the Skagit Hydroelectric Project to secure this reliable carbon-free resource for the long-term and responsibly steward the river.
- Modernizing outdated technology systems to improve operational efficiency, customer service, cyber security, and grid resiliency.
Expanding Assistance, Protecting Affordability, Growing Our Safety Net
In addition to establishing rates for the next two years, the rate ordinance includes several provisions designed to protect affordability and financial stability:
- Expands income eligibility for participation in the Utility Discount Program, making it available to an estimated 31,000 more customers.
- Protects affordability for existing customers by creating a new rate class for large new or expanding data centers.
- Strengthens the Rate Stabilization Account by increasing reserve levels and broadening the types of power cost volatility it is designed to buffer.
As a public utility, City Light does not operate for profit or growth. Our purpose is to serve our customers and community, and we are committed to delivering safe, reliable, and clean electricity at the best value possible.
The investments outlined in our strategic plan are significant, and so is what they protect: a resilient grid, a sustainable energy future, and equitable access to affordable power for every customer we serve.
What’s Next
We anticipate City Council will vote on adopting the Strategic Plan and our 2027-2028 rate ordinance later this summer.