To our AEL&P Customers,

 At 4:00 a.m. on April 16th, two massive avalanches damaged or destroyed seven towers along a very steep and rugged one mile section of the Snettisham transmission line.  It severed our town from our inexpensive hydroelectric power source. 

The implications of this disaster, and in particular the economic hardship is faced by everyone in Juneau.  AEL&P staff is gearing up to assist those who need more time to pay the large bills that will be billed starting May 16th.  Yes, this change in the effective date of the billing is something the Regulatory Commission has just granted.  We held back billing the first customers of the month, to propose a tariff change to the effective date.  Everyone now has the same opportunity to conserve and have bills reflect their conservation efforts over a full billing period.

Your willingness to conserve may make this town famous in the eyes of energy conservation professionals.  Juneau holds a new record for our quick response.  Thank you, and keep up the good work.  Every kilowatt-hour you save is one less you are paying for, is one less we need to produce, and helps reduce greenhouse gas emissions.

What is this Emergency Power Cost Adjustment (also known as Emergency Cost of Power Adjustment or ECOPA)?

Electric customers pay rates that cover the cost of providing their service.  AEL&P’s normal rate structures are based on the cost of using water to turn the turbines to make electricity.  Now that diesel is needed to turn the turbines, the cost of providing electric service goes from the base price of rain water as fuel (zero fuel cost), to the cost of diesel, which is currently about $4.00/gallon.  Every utility has a Power Cost Adjustment to adjust rates according to changes in the fuel cost over/under the base rate cost of fuel. 

• The Power Cost Adjustment is only applied to the
  kilowatt-hours billed.
• ONLY the cost of fuel required to serve Juneau’s
  needs is included in the Power Cost Adjustment.
• AEL&P receives NO PROFIT on this emergency fuel charge.

How is the ECOPA calculated?  Will it be lower in June?

The ECOPA for May is based on the estimated cost of diesel since April 16th, spread across the number of estimated kilowatt-hours used in town in the month of May.  The early conservation effort was also factored into this estimate, reducing the amount of fuel and the number of kilowatt-hours.  Because the fuel cost for roughly 45 days must be spread over a 30 day period, the ECOPA will be 42.9 cents for bills rendered on May 16th, and until the full billing cycle is completed.

On June 16th, a new ECOPA will go into effect and will be lower than the first ECOPA because an estimated one month of fuel costs will be spread over one month’s estimated kilowatt-hours of use.  Assuming fuel prices don’t change dramatically, we project that the ECOPA between June 16th and July 15th will be somewhere between 29 and 33 cents per kilowatt-hour.

The contractor hopes to have the line reenergized by the end of July.  Depending on when Juneau starts receiving Snettisham power again, the July 16th ECOPA will either be similar to the June-July rate, or could be less.  ECOPA rates starting August 16th could still reflect the ECOPA, but only to the extent it is needed to refund or complete the billing to reflect actual diesel costs and actual kilowatt-hours.

Will rates ever go back to normal?

The emergency COPA will remain in effect until Snettisham energy is restored and the monthly billing cycle has made a full revolution ending on the 15th.  After that, we will return to our normal seasonal rates and normal COPA calculation mechanism.

Is my meter actually read and what is the billing period? 

Yes, only a few meters are estimated each month, and only when there is a problem gaining access.  About 40% or our meters are read remotely by either a power line carrier or by receipt of a radio signal.  Bills are always based on actual meter readings over approximately the prior 30 day period.

Why is the ECOPA rate so high when we are using less diesel than was expected?

The production cost of making kilowatt-hours with diesel is the same – about 10 kilowatt-hours per gallon of diesel, depending on the mix of generating units online.  Using more or less electricity does not change the cost of producing a kilowatt-hour.  As individuals, businesses and government buildings use fewer kilowatt-hours, and less diesel, the savings comes only because of their own conservation efforts…and results in money saved on bills.  This means that if folks or organizations are visibly using more energy, the community is not paying for their greater use of diesel … they pay for the diesel based on their own kilowatt-hours used.

I understand why this rate is needed, but I can’t pay all of this right now!  How is AEL&P preparing to help?

We are hoping to offer additional payment options, pending approval by the Regulatory Commission of Alaska.  AEL&P has a long tradition of working with our customers, and we will continue to do so.

Customers with overdue balances should call now to work out payment arrangements.  A down payment of 1/3 of the balance is customary and payments must be maintained according to the agreement to avoid disconnection.  Payment agreements are tailored to the customer’s circumstances and their prior success in handling payment agreements. 

Am I eligible for assistance from "Juneau Unplugged?"

The City and Borough of Juneau Assembly approved funding for a grant/loan program for residential customers who most need assistance.  The program is being administered through United Way and Catholic Community Service.  The Assembly also approved funding for a small business loan program, which will be administered through JEDC.

If your name is on the May AEL&P bill and your household income is within the limits set by the program, you may qualify for a grant/loan. 

If you have a small business, talk to the folks at JEDC about the loan program.