Alaska Power and Telephone is seeking to put a large rate increase on its customers in the upper Lynn Canal. The public comment period closed last week and many residents expressed dissatisfaction with the proposal.
In mid august, utility provider Alaska Power and Telephone applied to the Regulatory Commission of Alaska for an authorisation to raise power rates in the northern Lynn Canal by 25%. The regulatory commission has the authority to approve or deny the rate increase, or suggest a different rate structure. AP&T cited the rising cost of materials, equipment, labor, transport and fuel as reasons to increase rates.
In testimonies, company executives described Alaska as a dangerous place to invest in infrastructure. They cited the boom and bust cycles of resource extraction economies, the high cost of the diesel that powers the company’s generators, and a trend towards energy efficient appliances that can reduce demand.
The documents claim AP&T serves around 8000 customers in 30 Alaskan communities; it is unclear how many will see large rate increases.
A public comment period ended on September 15th. Close to a hundred comments were submitted, many deplored the lack of a proper notice in local newspapers. The commission posted notices in two statewide newspapers not widely distributed in the upper Lynn Canal.
Steven Jones, a public information officer for the commission, said it would have put an undue financial burden on the company to notify each community in its local newspaper.
A previous proposal by AP&T was advertised in the Chilkat Valley News in 2012, at today’s rate the notice would have cost $225, the Skagway News would have charged a similar amount. Those two publications would have reached 3000 of AP&T’s customers in the northern Lynn Canal.
The revenue requirement study and testimonies by executives add up to almost 700 pages of documents. Many people who wrote to the commission said they found the comment period too short to properly assess the documents.
Haines Borough Manager Annette Kreitzer wrote to ask for an extension of the comment period.
A counsel for the municipality of Skagway wrote to register the municipality’s protest of the rate increase. Representatives for both municipalities asked that the commission allows all interested parties to participate in an investigation of the company’s request, and for the involvement of the State Department of Law.
Other commenters pointed out that most of the electricity in the upper Lynn Canal comes from hydro, which is not subject to price increases. They pointed to the increased electricity demand from heat pumps and electric vehicles. They asked why such a big increase, all at once. They wanted to know how much company executives got paid.
AP&T did not respond to multiple requests for interviews.
Steven Jones, from the regulatory commission, said a decision would be issued on the 28th of September.
