Chugach Outlet
November/December 2001, Number 195
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General Manager's Message
by Gene Bjornstad
RCA approves increase, decrease |
In many of my columns this year, I have passed information on to you about
the possibility, and then the reality, of rate increases, fuel surcharge adjustments
and other pertinent information that Chugach members need in order to budget their energy dollar.
In July Chugach filed a general rate case with the Regulatory Commission of Alaska -
the state agency that oversees regulated utilities like Chugach. {131556 Mo} While the
general rate case will continue for some time, when we originally filed the case,
Chugach also asked the Commission to approve interim rate increases of 4.5 percent,
with retail customers under the Small General Service and Lighting operating tariffs
being exempt from the increase.
On Sept. 5, the RCA approved an order that granted Chugach a 1.614 percent
across-the-board demand and energy rate increase on an "interim and refundable"
basis for bills rendered on or after Sept. 14.
On Sept. 25, Chugach submitted a Request for Reconsideration to the RCA regarding
specific adjustments to Chugach's revenue requirement for interim rates that were
used to establish the 1.614 percent increase. On Oct. 25, the Commission ruled on
Chugach's Request for Reconsideration, which resulted in a total interim base demand
and energy rate increase of 3.97 percent. Chugach submitted a compliance filing to
this order on Oct. 30, and the additional increase became effective for bills rendered in November.
While the RCA approved an interim demand and energy rate increase, it had previously
approved a change that decreased the fuel surcharge to Chugach's retail customers
effective Oct. 1. The surcharge decreased from 3.0630 cents per kilowatt-hour to 2.5430
cents per kwh.
In addition, the RCA approved a slight increase to the regulatory cost charge rate
from .0318 per kwh to .0360 per kwh effective Oct. 1.
Consequently, as a result of all these changes, the monthly bill for a Chugach
residential customer using 700 kwh per month of service will decrease by 1.78 percent
from $82.00 to $80.54.
I know that increases are never welcome; however, the decreasing fuel surcharge has
helped keep bills lower. Our current forecast is for that trend to continue into the
first part of 2002. While long-term changes in the energy market are unknown following
the events of Sept. 11, we at Chugach will continue to give you the best information we
have so that you can plan for the future.
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