AEL&P files rate request with RCA

July 15, 2022

The increased costs of providing safe and reliable energy to the community of Juneau have resulted in the need for AEL&P to file a rate increase request with the Regulatory Commission of Alaska (RCA). This is a two-part request that spans 2022 and 2023.

AEL&P is seeking a 4.5 percent increase which could take effect as early as September 2, 2022. An additional increase of 4.5 percent would take effect in October 2023 if approved by the RCA.  Our last rate adjustment was a decrease of 6.73 percent in 2018. AEL&P has not had a rate increase since 2016, during which time inflation has risen more than 15%.  

Rate increases cannot take effect without the authorization of the RCA; the RCA typically acts on interim rate increase requests (the first part) in 45 days and must rule on permanent rate increase requests (the second part) within approximately 15 months from the date of filing.

For a residential customer using an average of 750 kWh a month, the requested 2022 interim increase will result in a monthly increase of $3.61 in the summer rate months (June through October) and $4.29 in the winter rate months (November through May). 

If the combined total rate request is approved, in fall 2023 the same residential customer using an average of 750 kWh a month will see an additional monthly increase (second step) of $4.59 in the summer rate months and $5.18 in the winter rate months. 

If the combined total rate request is granted, AEL&P’s residential rates will remain well below the 2021 national average of 13.72 cents per kWh, and significantly below average residential rates in Alaska.

Increased costs including additions and upgrades to the electric system, as well as increased depreciation, operating, and maintenance expenses are the main drivers in this rate request.

The costs to replace facilities and update the electric system are often several times more expensive than when originally installed. Over the last six years, AEL&P has invested more than $50 million dollars for additions and upgrades to ensure the ability to provide Juneau with safe, reliable, reasonably priced energy.

Investments in the six-year period include the Gold Creek flume replacement, pole replacements, substation upgrades, system redundancy, automation, transmission and distribution line improvements.

AEL&P is sensitive to the effect this rate increase may have on our customers.  To assist customers, a credit counselor and energy services specialist are available to help customers find ways to reduce their usage, make payment arrangements, and connect with community resources that can help customers pay their bills. Additionally, customers can find helpful information on managing energy use at www.aelp.com.

For more information about this rate filing, please visit aelp.com or contact media@aelp.com or call 907.523.7070.

 

 

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