How the 2025-2026 rate increases will affect you

Seattle City Light is a public, not-for-profit utility, and we make decisions for the long-term benefit of our customers and the communities we serve. We work hard to keep rates low and predictable for all our customers, but rate adjustments are sometimes necessary to safely ensure the delivery of reliable and environmentally responsible energy. City Light is planning rate increases in 2025 and 2026, with the first becoming effective on Jan. 1, 2025, following anticipated adoption by the Seattle City Council in mid-November.

Residential customers can anticipate an increase of around $4 per month in 2025 and 2026. Residents enrolled in the Utility Discount Program will see a $2 increase per month on their bills. Businesses can expect to see overall bill increases between 4% to 7%, depending on their customer class and consumption profile.

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.

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All City Light bills include a fixed monthly basic service charge. You will notice the basic service charge on your bill increases in 2025 and 2026. This increase is to better match the actual costs for delivering customer services like metering, billing, and customer support.

City Light is also preparing to launch a new time of use (TOU) rate option in mid-2025. Time of use rates offer participating residents and businesses the opportunity to save on their bills by reducing their electricity use during peak hours. To prepare for this new TOU rate offering, the second-block residential rate is being phased out. This means that going forward, the per kilowatt-hour energy price will not step up when a household uses more electricity.

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.

City Light's rate philosophy

As your public, not-for-profit electric utility, City Light's rates are designed to collect enough revenue to maintain existing and planned operations while also moving forward on strategic investments that reflect the utility's response to new industry challenges and opportunities.

The proposed rate increases support steps needed to make meaningful progress toward Seattle's climate goals, invest in new resources, and improve transmission and distribution systems to reliably meet this future demand.

The 2025-2026 rate increases were first proposed in City Light's 2025-2030 Strategic Plan update, which was approved by the Seattle City Council in September. 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. The rate increases support the priorities identified in this year's Strategic Plan update, including:

• Supporting growing demand for electricity
• Adapting to climate change
• Meeting clean energy milestones
• Improving reliability and resiliency
• Prioritizing our shared energy future

The new electric rates for 2025 and 2026 are expected to be formally adopted by the Seattle City Council in November alongside the City's 2025-2026 budget.

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