Low electricity prices could mean higher rates for Seattle.

• Position: News Briefs - Brief Article

Raise rates or assume additional debt? This is the question Seattle City Light must answer to close a projected $160 million budget deficit. Last year, City Light raised rates nearly 60 percent after being forced to buy power from the wholesale market at a price higher than expected. The average homeowner's electric bill is now $324 more per year than it was in 1999. Now that the utility has surplus power, market prices have dropped. City Light says it could get just $22 a megawatt-hour for electricity it purchased for between $30 and $50. Barring a market reversal, the utility will not have enough money to pay for expenses...