Seattle's $1.5B tribal dam deal hikes power bills for upgrades
Seattle City Light has secured a $1.5 billion settlement with three indigenous tribes to continue operating hydroelectric dams on the Skagit River. The agreement also funds major upgrades to ageing infrastructure, but customers will face higher electricity rates in the coming years.
The deal follows years of negotiations with the Duwamish, Muckleshoot, and Snoqualmie tribes over dam operations and environmental concerns.
The settlement includes $1.8 billion for modernising the three dams and their powerhouses. An additional $979 million will fund a salmon bypass project, allowing fish to be trapped and transported around the structures.
Over the past five years, Seattle City Light raised rates annually: 2.3% in 2021, 4.3% in 2022, 5.7% in 2023, 4.9% in 2024, and 3.8% in 2025. But starting in 2027, customers will see steeper increases of 7 to 10% each year. These hikes will help cover the costs of replacing 330 miles of 60-year-old underground cables and upgrading other grid components, projects totalling $3 billion.
Outdated equipment has led to more frequent outages for customers. The utility also plans to update its strategic plan by mid-year to manage rising expenses and future investments.
A separate 0.5% annual rate increase will apply from 2027 to 2032 to fund the salmon bypass project. The construction costs for this initiative will further affect electricity bills.
The agreement ensures Seattle City Light can keep using the Skagit River dams while funding critical upgrades. Customers will pay more from 2027 onwards to support infrastructure improvements and environmental projects. The utility's updated strategic plan will outline how these changes will be managed in the long term.
