If you can believe it, we have had another power outage in Queen Anne today. After power was restored to the majority of 6,656 residents affected by the blackout this morning – there are still 156 people between Mercer St. to the north, Denny Way to the south, Taylor Ave N. to the east and 1st Ave S. to the west waiting to have their power back – there was a second outage at 11 a.m. that knocked out power to another 340 people.

The most up-to-date information from Seattle City Light says that both outages are again attributed to “underground cable failure.” They had estimated to reroute and restore power to those affected by this second outage by 2 p.m., but clearly that time has come and gone.

Eager for more information, I called Seattle City Light to speak to a representative, who informed me that there are, in fact, around 500 people between the two outages still without power. He said Seattle City Light hopes to get power back to the first 156 customers who have been without power since around 5 a.m. this morning (this applies to the area between Mercer St. to the north, Denny Way to the south, Taylor Ave N. to the east and 1st Ave S. to the west) by 8:40 p.m. tonight. So if you’re at work right now, you might want to plan to go out for dinner, and remember to set your alarm on your cell phone in the morning in case power goes out again.

There is still no estimated restoration time for the second outage group, an estimated 336 people who lost their power at 11 a.m., due to the difficult nature of the repairs. “Because it is underground it’s a little more difficult to say when it’s going to be restored,” our City Light representative said. This outage is within the general boundaries of Roy Street to the north, Eagle Street to the south, Valley Street to the east and 2^nd Avenue W to the west.

Although City Light says both outages have been confined to Lower Queen Anne, many readers at the top of the hill have commented that their power went out as well. Rissy wrote,

Well, the article says lower QA, but I live on Upper QA. Way up McGraw & 6th. We had no power either. I have lived on the top of the hill since 2001 and September was the first time I remember losing power.

These power outages make three in one week, and are part of a long string of recent power problems in Queen Anne. And the timing is kind of ironic – this week City Council passed 13.8 percent rate increase for Seattle City Light that will go into effect January 1, 2010. Here’s the council press release sent out today:

Faced with the choice between raising electricity rates or incurring higher borrowing costs, financial uncertainty, and violating its own financial policies, Council opted to pass a 13.8 percent rate increase over two years that will go into effect in 2010. The increase closes a $140 million gap between City Light revenues and spending plan.

“This rate increase will help maintain City Light’s financial stability while protecting our strong bond ratings,” said Council Budget Chair Jean Godden.  “We’ve worked hard over the past eight years to put City Light on a solid financial footing – now is not the time to reverse that course. It’s a question of paying a few dollars now or a whole lot more later.”

City Light has relied heavily on selling its excess power, but the unpredictability and volatility of the current market has resulted in City Light burning through cash reserves that will be depleted by mid-2010 without a reasonable rate increase. Due to the slumping economy and decreased demand, City Light will fall well below revenue projections from selling surplus energy.

The package passed by Council includes $1 million in energy efficiency investments that the Mayor’s proposal did not include.

“Increasing energy conservation saves money in addition to reducing our carbon footprint,” explained Council President Richard Conlin. “The time of financial crisis is the exact time to conserve resources.”

The rate increase ensures that the utility will continue to provide stable service, improve our aging infrastructure and borrow money at the lowest possible interest rates. Utilities receive a bond rating based on their ability to repay what they borrow. The rating is based on cash reserves and policies that prevent shortages. By avoiding a downgrade in its bond rating City Light will save as much as $90 million over the next ten years in borrowing costs.

“Seattle City Light is our greatest public asset. It is our responsibility to maintain it as a strong public utility. We need to preserve its long-term viability,” said Councilmember Nick Licata.

While Council policy requires that City Light maintain 2.0 debt service coverage (DSC), City Light’s DSC today is about 1.3, well below the requirements set by the Council in 2004. The rate increase will push City Light’s DSC closer to 1.8. In the bond market, City Light currently has an AA- rating, which allows it to borrow cheaply. However if the utility were to go to the bond market with its current DSC, it would pay much higher borrowing costs.

“Seattle City Light ratepayers were able to enjoy decreases over the past few years because of the reserves built from selling excess power, but the environment today is completely different,” said Conlin. “It’s now time that we do what’s right to ensure that Seattle’s power remain clean and affordable well into the future.”

What do you think? If you have any more information, are outside the Seattle City Light boundaries and have still been affected by the blackout, or would like to voice your opinion on the rate increase, comment below or email us at tips@queenanneview.com.