SEATTLE — Seattle City Light (SCL) is proposing a pair of 9.5% rate increases in 2027 and 2028 as the utility seeks to modernize aging infrastructure, expand renewable energy resources, and prepare for growing electricity demand across the region.

The proposed increases are part of the utility’s new 2027-2032 Strategic Plan, which will be presented on Wednesday to the Seattle City Council’s Parks & City Light Committee.

SCL officials say the investments are necessary to maintain reliable service while responding to rising costs, climate challenges, and increased electrification as more customers adopt electric vehicles and switch from fossil-fuel heating systems.

“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,” the utility said in announcing the plan.

Why rates are rising

SCL cited several factors behind the proposed increases, including inflation, supply chain disruptions, higher labor costs, and the growing expense of utility equipment.

According to the utility, prices for key infrastructure materials have climbed sharply since 2020:

• Utility poles: up more than 19%
• Transformers: up 23%
• Wire and cable: up 93%

Officials also noted that electricity demand, which remained relatively flat for years, is expected to grow steadily as homes and businesses electrify transportation and heating systems.

Impact on customers

For a typical residential customer, SCL estimates that monthly bills would increase by about $10 in 2027 and another $10 in 2028.

Customers enrolled in the Utility Discount Program would see a smaller increase, with bills rising by approximately $4 per month in each of those years.

The utility emphasized that it plans to expand assistance programs and affordability measures to help customers manage higher costs.

Key investments planned

Revenue generated through the proposed rate increases would support several major initiatives, including:

• Adding new carbon-free energy resources such as wind, solar, battery storage, and transmission capacity.
• Replacing aging electrical infrastructure, including deteriorating underground power cables.
• Meeting obligations under the new Skagit Hydroelectric Project license.
• Modernizing technology systems to improve customer service, cybersecurity, grid resilience, and operational efficiency.

Expanded customer assistance

The proposal also includes measures designed to protect affordability and improve financial stability. Among the changes:

• Income eligibility for the Utility Discount Program would expand, potentially making an estimated 31,000 additional customers eligible.
• A new rate class would be created for large new or expanding data centers, aimed at reducing cost impacts on existing customers.
• The utility’s Rate Stabilization Account would be strengthened to better absorb fluctuations in power costs.

Looking ahead

SCL says the investments outlined in the six-year strategic plan are intended to protect the reliability of the electric grid while supporting the city’s long-term climate and clean-energy goals.

RELATED: Seattle City Light plans 5.4% rate hike in 2025 amid rising costs, demand

The Seattle City Council is expected to consider the proposal and vote on the strategic plan and 2027-2028 rate ordinance later this summer.