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City Light provides electricity and electrical and conservation services to its public and private customers. It is the largest public utility in the Pacific Northwest. Public responsibility for electrical energy dates to 1890 with creation of the Department of Lighting and Water Works. In 1902, Seattle voters passed a bond issue to develop hydroelectric power on the Cedar River under the administration of the Water Department. Electricity from this development began to serve Seattle in 1905. A City Charter amendment in 1910 created the Lighting Department. Under the leadership of Superintendent James D. Ross, the department developed the Skagit River hydroelectric project which began supplying power in 1924. Both public and private power was supplied to Seattle until 1951 when the City purchased the private electrical power supply operations, making the Lighting Department the sole supplier. The Boundary Project in northeastern Washington began operations in 1967 and supplied over half of City Light's power generation. By the early 21st century, approximately ten percent of City Light's income came from the sale of surplus energy to customers in the Northwest and Southwest with the remainder of City Light's financial support coming from customer revenue. The current name of the agency was adopted in 1978 when the Department was reorganized.

The Skagit Environmental Endowment Commission (SEEC) was established by a 1984 Treaty between Canada and the U.S. It is based on an agreement between the City of Seattle and the Province of British Columbia to settle the controversy over the High Ross Dam proposal