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The Regulatory Commission of Alaska (RCA) has approved AEL&P’s request to pass income tax savings through to its customers. Therefore, effective August 1, AEL&P customers will see a 6.73% decrease in electric rates as a result of the Tax Cuts and Jobs Act (TCJA). For a residential customer using an average of 750 kWh per month, this is a decrease of $6.40 per month. Residential customers at that same usage will also see a one-time credit to their account of approximately $45 (individual refunds will vary, based on actual usage).
AEL&P’s electric rates are determined by the cost to provide power to our community. Therefore, any significant increase or decrease in AEL&P’s costs directly impacts the rates our customers pay. When the TCJA took effect on Jan. 1, 2018, AEL&P’s tax expense decreased. AEL&P began tracking the resulting savings so these could be passed to its customers through lower rates. However, rate changes could not take effect until approved by the RCA.
With this RCA approval, customer rates will be reduced beginning Aug. 1, 2018, and all credits will be provided to customers by Aug. 30, 2018.
AEL&P’s last rate increase was 3.86 percent in November of 2016. In 2017, AEL&P’s rates were a full cent per kWh below the national average.
AEL&P files request with RCA to lower rates by 6.73 percent