Rate increase approved for AP&T power customers

(Creative Commons Photo by Nicholas)
(Creative Commons Photo by Nicholas)

About 7,200 rural Alaskans will see their power bills go up after the first of the year. That’s because the Regulatory Commission of Alaska (RCA) last week approved an 11.18 percent rate increase for customers of Alaska Power Company, a subsidiary of Alaska Power and Telephone.

That’s lower than the hike the company asked for, but more than many residents in Southeast and the Interior say they can afford.

Alaska Power Company (APC) told the RCA it needed to increase rates 18 percent to offset a $2 million revenue shortfall in 2012. Company officials cited increasing operating costs, decreasing population in its service areas as well as a decline in demand as people make efforts to conserve energy.

APC serves communities in Northern Southeast, South Prince of Wales Island and Interior villages near Tok.

The rate case has been ongoing for about a year. At a consumer input hearing in April more than 30 people testified and opposed the rate increase. Many argued the same point – that residents and businesses have been trying to conserve energy to save money. But in doing so, they apparently shot themselves in the foot if that’s the reason APC is asking for a rate increase. Haines resident Leigh Horner put it this way:

“I guess, gee, all I have to say is, I feel like I’m being punished for conserving energy,” Horner said.

Haines borough assembly members who voted for the settlement also declined to explain why, saying the talks about the settlement were confidential.

The increase will go into effect after the first of the year. It affects two line items on a bill, not the overall amount. It means a customer in Haines will see about one-and-half-cent increase for each kilowatt-hour and a higher customer charge. Kilowatt-hours for other communities vary within APC’s service area.

APC is expected to revise its rates again next year because when it folds its newly acquired Gustavus Electric into its rate structure.

 

Sign up for The Signal

Top Alaska stories delivered to your inbox every week

Site notifications
Update notification options
Subscribe to notifications