Power rates in the upper Lynn Canal are going up 15%, effective October 1st. Earlier this summer, utility provider Alaska Power Company submitted an application to the Alaska Regulatory Commission for a rate increase of almost 25%.
In a document explaining its decision, the Commission states it has put Alaska Power Company’s request on hold while it investigates the request. In the meantime, it has granted the company an interim rate increase of 15%.
This rate increase is refundable to consumers in case the regulatory commission determines an appropriate long-term rate increase is lower than 15%.
The commission received about 100 comments from the public. A number of these requested an extended comment period. The commission will not grant that extension, but it says the public can still be heard. It encourages all interested parties to contact its office by October 27th and apply for permission to intervene during the hearings. The commission is also inviting the Attorney General to participate.
Alaska Power Company stated in its request that it is facing a more than $3.5M revenue shortfall. This would justify the close to 25% rate increase.
The regulatory commission put the request on hold to give itself time to analyze those numbers. The company also seeks to create a new entity in Gustavus, Gustavus Utility Services. The hearings will allow regulators to decide whether to grant that request.
The first power bills taking the rate increase into account will be sent out later this month.
