McGinn proposes 31-percent Seattle City Light rate hike
SEATTLE -- Seattle Mayor Mike McGinn says a proposed 31-percent rate hike for City Light customers would help the utility become more dependable and actually be good for business, but some local business owners claim the increase would take another cut from their already dwindling profits.
The plan is to raise rates roughly five percent every year for the next six years. For the majority of Seattle residents, the rate increase would mean paying an extra $35 a year, but it would add up to thousands of dollars for many local businesses.
Businesses like Hotel Monaco would be hit especially hard by the increase. The hotel's manager said electricity accounts for 30 percent of its energy and utility costs, and the monthly bill can be as high as $10,000.
If McGinn's proposal goes through, the hotel will eventually be forced to raise prices.
"It's going to be passed on to the guests at some point," the manager said.
McGinn said the increase would actually be good for businesses, especially for high-tech companies.
"Outages to them would be a big deal and harm their productivity, so we need to make sure we have reliable power," he said.
Seattle City Light also hopes to build a new $200 million power substation, but officials know the hike will be a tough sell.
While the plan certainly won't be popular for many businesses, places like the Fred Hutchinson Cancer Research Center support it because they need a reliable power system to protect their lifesaving research.
"If the cells are lost, the patients won't get their chance for treatment. For the majority of them, this is their only chance for survival," said the center's Dr. Shelly Heimfeld.
The City Council will get the proposal on Tuesday and will officially take up the matter next week.
The plan is to raise rates roughly five percent every year for the next six years. For the majority of Seattle residents, the rate increase would mean paying an extra $35 a year, but it would add up to thousands of dollars for many local businesses.
Businesses like Hotel Monaco would be hit especially hard by the increase. The hotel's manager said electricity accounts for 30 percent of its energy and utility costs, and the monthly bill can be as high as $10,000.
If McGinn's proposal goes through, the hotel will eventually be forced to raise prices.
"It's going to be passed on to the guests at some point," the manager said.
McGinn said the increase would actually be good for businesses, especially for high-tech companies.
"Outages to them would be a big deal and harm their productivity, so we need to make sure we have reliable power," he said.
Seattle City Light also hopes to build a new $200 million power substation, but officials know the hike will be a tough sell.
While the plan certainly won't be popular for many businesses, places like the Fred Hutchinson Cancer Research Center support it because they need a reliable power system to protect their lifesaving research.
"If the cells are lost, the patients won't get their chance for treatment. For the majority of them, this is their only chance for survival," said the center's Dr. Shelly Heimfeld.
The City Council will get the proposal on Tuesday and will officially take up the matter next week.
How about rewarding customers for cutting down on their power use instead of constantly trying to "fix" the problem by raising rates?
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To be perfectly honest, I don't know how Seattle City Light operates, but an earnest approach to alternative energy ought to be central to the theme. There are all kinds of buildings on those hills that are aching for solar power. Use it and stop nickel and diming the people.