Keeping the lights on in Juneau could be more expensive this fall. Alaska Electric Light & Power – the privately owned electric utility that powers the city – wants to increase its rates. The company announced Friday that, overall, customers can expect to pay 8 percent more on their electric bill by the end of 2017.
According to a press release, rates will increase gradually.
In November, rates could go up by nearly 4 percent, pending approval from the Regulatory Commission of Alaska or RCA. It’s an increase to pay for a backup diesel generation plant in the Mendenhall Valley and improvements to the electric utility’s systems. AEL&P has invested over $50 million for additions and upgrades. The diesel plant makes up about $22 million of that.
In December of 2017, rates will go up another 4.24 percent. Again, pending RCA approval.
It would be the first rate increase since 2010. That increase followed the utility’s Lake Dorothy hydro project coming online.
Editor’s Note: This story has been updated to explain AEL&P’s investment for upgrades and improvements.