This document provides an overview and update on the accomplishments and priorities of the utility company in 2012 and beyond. It summarizes that in 2012 the company focused on system maintenance like trimming vegetation and converting overhead lines to underground. It also improved outage management and asset management systems. Key priorities for 2013 and beyond include further system improvements, developing the workforce, improving security, and increasing environmental stewardship through conservation programs and protecting habitat. The strategic plan and approved budgets support investments in infrastructure, training, and efficiency savings through 2015.

1. Employee Update
Here is a brief overview of what we accomplished in 2012 and our priorities for 2013.
We welcome your questions and contributions
2012 2013 and Beyond
Customer Service and Reliability
System Maintenance
and Improvements
 Trimmed 692 miles of vegetation around
distribution and transmission lines.
 Relocated transmission and distribution
lines to make way for the new Alaskan Way
Viaduct tunnel.
 Converted 22,850 feet of overhead lines to
underground conduits along the Mercer
corridor, Burien, SeaTac and Shoreline.
 Converted 20% of West Seattle 4kv
distribution to new 26kV.
 Trim vegetation in 600 miles of corridor.
 Construction of the Denny Substation and
South Lake Union Network.
 Relocate transmission and distribution lines
back to the viaduct tunnel when it its
completed in 2016.
 Completion of West Seattle 26kV
conversion by 2018.
Outage Management
The Outage Management System entered its
second full year. We tested a phone service
that calls people to give them information
about their outage, such as an estimated
restoration time.
Will continue to add functionality and to
integrate the OMS in efforts to improve
customer service.
Asset Management
Phase two of WAMS initiated. This project
extends the use of this system to power
production, stations, facilities, shops, and
more.
Major projects included assessment of 28
substation transformers and the installation of
the first new substation transformer in 30
years, at North Substation; silicone injection
of more than 20 miles of underground cable;
processing of LIDAR data; completed work
orders for 2,000 poles and replaced 1,756.
WAMS testing and implementation planned
for April.
Planned system improvements include:
 Injection of 10 miles of cable, and design
and construction of five new miles.
 Replace or reinforce 2,000 poles.
LED Streetlights
12,890 residential streetlights were converted
to LEDs. 33,000 have been converted to date.
We will convert the remaining 8,000 sodium
streetlights to LEDs, and replace failing
underground wiring for 350.
Web and Social
Media
 Improved the navigation of our external
website.
 Increased our Twitter following by
11% and our Facebook “likes” by 37%.
 New efficient and accessible inWeb for
employees; install a content management
system.
 Perform Web design best practices
analysis and begin implementation.
High-Performance Workforce
Employee Support
 Met our goal to hire 11 apprentices.
 Hired 122 new employees.
 Promoted 49 employees.
 Hire six apprentices.
 Develop our own talent pool, and document
institutional knowledge to transfer to future
workforce.
 Develop an internship program.
 Implement leadership development
program throughout the utility.
Security and
Emergency
Management
 Helped to develop and provided Workplace
Violence Prevention Awareness training to
about 100 supervisors and more than 1,000
employees.
 Coordinated certification from the FERC for
security programs for Boundary, Skagit and
Tolt River Projects.
 Partnered in the Western Washington
Utility Copper Theft Task Force.
 Opened a new Dept. Operations Center.
 Deployed 14 employees and four vehicles
to Long Island Power Authority in New York
to support Sandy response.
 Participated in Evergreen Quake 2012.
 Enhance security at the North and South
Service Centers, Boundary guard shack
entrance, and South and Shoreline Sub
stations.
 Set up objectives and track the readiness
for emergencies for the Mitigation Team,
Incident Management Team, and Recovery
Team.
Volunteerism
Employees volunteered their time or funds at
eight events supported by City Light, including
the Puget Sound HeartWalk, the Skagit
Cleanup, Rebuilding Together Seattle, and
the Duwamish Alive Earth Day.
We will conduct at least one volunteer project
per quarter and raise local and regional
awareness of our corporate citizenship
efforts .
2013

2. 2012 2013 and Beyond
High-Performance Organization
Strategic Plan
 The plan was unanimously adopted by the
City Council in July.
 Rate ordinance unanimously approved in
September.
 Budget unanimously adopted in November.
The Strategic Plan calls for many new
investments including the Denny Substation,
streetlight infrastructure improvements, AMI,
and significant new investments in employee
training and safety programs. The plan also
assumes savings from new efficiencies
ramping up to $18 million/year by 2015.
Budget
The adopted 2012 budget was just under
$1.14 billion and funded 1,811 positions. We
ended the year within budget at all Council-
approved budget control levels, spending
about 90% of the approved total.
The Council approved a $1.14 billion budget
for capital and operating expenses in 2013
and $1.20 billion in 2014. These budgets fund
a total of 1,830 positions in each year.
Rates
The Council approved a rate increase
averaging 4.4% in 2013.
In 2012, the Council also approved a rate
increase of 5.6% for 2014.
J.D. Power and
Associates
City Light was ranked #2 (up from #5) among
west midsize utilities and #12 in the United
States by residential customers.
 Business customers ranked us #1 among
midsize utilities.
 City Light was tied for the #3 ranking
nationally among all 95 utilities that have
25,000 or more business customers.
Environmental Stewardship and Conservation
Energy Savings
 We are on track to meet our 2012-13 target
of 24 aMW under I-937.
 Achieved 13 aMW in energy conservation,
92% of the 2012 conservation plan goal (14
aMW).
 Funded energy upgrades for 288 small
businesses, and signed contracts for
another 480 commercial and industrial
projects.
 We shifted our Powerful Neighborhoods
program to multifamily housing, serving
16,648 households. The target was
10,000.
The 2013 conservation goal is 14 aMW.
Some of our initiatives:
 A New Conservation Potential Assessment
study to estimate the size and timing of
conservation resources.
 Commercial lighting incentives to
encourage retrofits.
 Provide weatherization services to 125
single family homes.
 Increase support for low-income customers
with high-bill audits, energy conservation
materials, and referrals to weatherization
services.
 Deliver the Solarize Seattle Program in 200
homes over two neighborhoods and
implement a second community solar
project.
Environmental
Protection
 City Light remained carbon neutral for the
eight year in a row.
 Purchased nine properties totaling more
than 86 acres in the Skagit watershed.
 Carried out the Surplus Property Pilot
Project encompassing six surplus
properties.
 Completed Phase 1 of Denny Substation
property environmental remediation.
 Maintain our carbon neutral status.
 Purchase about 100 acres of fish habitat
and studies of endangered fish
populations.
 Continue cleanup programs for Superfund
sites and other property remediations.
 Remain in compliance with FERC and
carry out appropriate studies for
relicensing.
Bonds
We issued $346 million par value of bonds
last July, but they sold at a premium so we
actually received about $388 million. About
$202 million went toward future capital
programs, $13 million was deposited into the
bond reserve account, and about $171 million
was used to refinance existing debt at lower
interest rates, saving ratepayers $20 million
over the life of the bonds.
We plan to issue about $250 million in new
bonds in 2013, and about $170-270 million
per year each year through 2018.