The Chugach Board of Directors is considering implementing Simplified Rate Filing (SRF) procedures for base rate adjustments. The purpose of SRF is to establish expedited filing and rate adjustment procedures for nonprofit electric cooperatives regulated by the Regulatory Commission of Alaska (Commission). SRF avoids much of the cost and time-consuming process required by traditional general rate cases by limiting the number of topics that can be considered. If adopted, this change will enable Chugach to make moderate adjustments to demand and energy rates more efficiently than the current process allows.
Under SRF, the Chugach board has the major responsibility for rate adjustments rather than the Commission. However, Chugach is still required to submit filings to the Commission for approval before any rate changes can be implemented. While there is no limitation on decreases, base rate increases under SRF are limited to 8 percent in a 12-month period and 20 percent in a 36-month period. Rate adjustments under SRF only impact energy and demand rates. Changes in fuel and purchased power costs will continue to be adjusted on a quarterly basis through the fuel and purchased power rate adjustment process. If the Chugach board makes the decision to adopt the SRF method, and if approved by the Commission, Chugach would make filings every three months. The filings could adjust rates up or down, or leave them unchanged.
Per 3 AAC 48.730, you are being provided notice that the Chugach board will formally decide whether to proceed with the SRF rate adjustment process at its June 30, 2016 board meeting that will be held at 3 p.m. in the Chugach board room located at 5601 Electron Drive in Anchorage, Alaska.