RAPA Recent Cases (alphabetical)
Aurora Energy
RCA Docket No. U-10-58 (Steam Heat). Utility Profile.
On August 4, 2010, Aurora Energy, LLC. requested approval for exemption of its steam heat utility service from economic regulation. AG-RAPA's expert witness testified that the utility's commitment to a market-based (fuel oil) rate cap satisfied concerns about protecting ratepayers from unreasonable pricing if steam heat was deregulated and merged with hot water heat rates. The RCA issued its decision on April 29, 2011 denying Aurora's petition for exemption from economic regulation and denying its request to merge its steam heat customers with its hot water customers. The RCA decision indicated that the utility failed to provide clear and convincing evidence in support of its petition. On June 14, 2011, the RCA stated it would reconsider its decision. A revised decision on the merits is pending.
Beluga Pipe Line Company (BPL)
RCA Docket No. P-11-07. (Pipeline). Utility Profile.
On December 7, 2010 BPL filed a request to change its tariff to charge rates to transport natural gas based on a capacity-based rate rather than on a volumetric basis. In the alternative, BPL asked to increase it volumetric tariff rate to transport natural gas from $.25/Mcf to $2.54/Mcf. After the AG entered an appearance in the docket, a settlement was reached with BPL agreeing to maintain its existing volumetric tariff rates, and ENSTAR and Chugach Electric Association each agreeing to certain volumetric shipping commitments. The RCA approved this settlement on November 7, 2011.
Golden Heart Utilities (GHU)/College Utilities Corp. (CUC)
RCA Docket Nos. U-05-43/U-05-44. (Water and Sewer). Utility profile.
GHU and CUC each provide water and sewer utility service in Fairbanks. Fairbanks Sewer and Water (FSW) is the holding company for both of these investor-owned utilities. In 2006, GHU/CUC requested a 13.31 percent rate increase for the water utilities, and a 12.29 percent rate increase for the wastewater utilities. FSW proposed to impose these rate increases as postage stamp rates across both the two water and wastewater utility service areas. The AG participated in these dockets and after a hearing held in August 2006, the RCA issued an order reducing GHU/CUC's rates and requiring a refund. This decision was appealed to the superior court which in June 2009 affirmed parts of the order and remanded others for additional determinations. A hearing was held on the remand issues in August 2011. A final decision is pending.
Golden Heart Utilities (GHU)/College Utilities Corp. (CUC)
RCA Docket Nos. U-07-76/U-07-77. (Water and Sewer). Utility profile.
GHU and CUC each provide water and sewer utility service in Fairbanks. Fairbanks Sewer and Water (FSW) is the holding company for both of these investor-owned utilities. In June 2007, GHU/CUC filed a rate case seeking a 23.36 percent rate increase for water utilities, and a 7.07 percent rate increase for wastewater utilities. After the AG entered an appearance in this case, a hearing was held and an order issued requiring GHU and CUC to reduce their rates and make refunds. The Commission's order also allows GHU/CUC to file annual rate adjustments to pass fuel, power and transportation costs directly to ratepayers. The RCA's decision is currently on appeal to the superior court.
Golden Heart Utilities (GHU)/College Utilities Corp. (CUC)
RCA Docket Nos. U-11-77/78 (Water and Sewer). Utility profile.
On June 17, 2011 GHU/CUC filed a request to increase rates by 10.3% for its water service and by 14.3% for its wastewater service. The AG has entered an appearance in these dockets and will file testimony addressing GHU/CUC's rate requests on February 27, 2012, and a hearing will be held in Fairbanks beginning on June 12, 2012 for the RCA to decide whether to allow GHU/CUC its requested rate increase in whole or in part.
Home Water, LLC (Home Water)
RCA Docket No. U-11-76. (Water). Utility Profile.
Home Water provides water utility service to five subdivisions in the Mat-Su Valley. On June 1, 2011, Home Water filed a request to increase water rates charged in three of these subdivisions: Majestic Hills subdivision by 24.44%, Meadow Brook subdivision by 32.13% and Northern Lights Terrace subdivision by 72.31 percent. The AG entered an appearance and after conducting an investigation filed testimony supporting Homes Water's requested $56 per month water rate for its Majestic Hills and Northern Lights Terrace customers, but proposed a $50.99 monthly rate for customers of the Meadow Brook subdivision rather than the $52.92 rate requested. The AG testimony also recommended that Home Water be placed under dividend restriction until a healthy equity level is achieved. A hearing is scheduled to be held in this docket beginning on April 17, 2012.
Homer Electric Association (HEA)/ Chugach Electric Association (CEA)
RCA Docket Nos. U-11-94/U-11-95. (Electric). Utility Profile.
In these dockets, Chugach and HEA asked the RCA to approve Chugach's sale of its Bernice Lake Power Plant (BLPP) assets to HEA, and for HEA to be allowed to include the full purchase price in consumer rates. HEA's filing stated it needed to purchase the BLPP assets in order to self-generate electric power for its consumers beginning in 2014 as a cheaper alternative to building alternative power production facilities. Because the $11 million purchase price required HEA to pay approximately $7.5 million for the BLPP assets above its net book value ($4 million), the AG elected to participate in the dockets to determine whether inclusion of this added $7.5 million in consumer rates was reasonable. After an investigation and mediation, the AG determined that the excess $7.5 million that HEA was being asked to pay for the BLPP assets above net book value was offset by tangible benefits to ratepayers exceeding this amount, and as a result a settlement was presented to the Commission recommending that HEA's and Chugach's requests be granted. A hearing was held on the settlement in November 2011, and the RCA approved the settlement on December 23, 2011.
Homer Electric Association (HEA)
RCA Docket No. U-10-97. (Electric). Utility Profile.
In November 2010, HEA filed a request to increase its rates by 1.8% or $1.5 million together with a rate redesign which incorporated a minimum usage charge. The AG elected to participate in this docket, and after the AG's investigation and presentation of testimony, the parties reached a settlement in October 2011. Under the settlement agreement, HEA's rate increase was limited to .7% and its minimum usage charge was capped to not exceed $38.38/month. This minimum usage charge cap was set to match an average HEA residential customer's monthly cost of customer related service. On December 9, 2011, the RCA accepted the settlement.
Matanuska Telephone Association –
Long Distance (MTA-LD)
RCA Docket No. U-11-123 (Telecommunications). Utility Profile.
MTA-LD provides long distance telecommunications services primarily to consumers in Eagle River and the Mat-Su Valley. Its parent, Matanuska Telephone Association (MTA), is the local exchange carrier (LEC) in that service area. MTA-LD, is a reseller of long distance services reselling services purchased from GCI and ACS Long Distance.
In this docket, MTA-LD is seeking to implement a new bundled flat rate local and long distance plan with unlimited minutes. To do so, MTA-LD is also seeking a waiver from the RCA's geographic rate averaging regulations that will allow it to offer this long distance service promotion only within its local exchange service area, instead of state-wide. The AG is participating in this docket which is scheduled to go to hearing on April 30, 2012.
TDX Adak Generating, LLC.
RCA Docket No. U-10-104. (Electric). Utility Profile.
TDX Adak (TDX) provides electric power utility service on Adak Island. This utility was acquired by TDX in 2008 from the City of Adak. At the time TDX acquired the utility, it was in a significant state of disrepair. In October 2010 TDX Adak filed a request to increase rates by 136%. The AG elected to participate in the docket, conducted an investigation and presented testimony agreeing a substantial rate increase (approximately 61%) was warranted. Another intervenor in the docket, Adak Telephone Utility, argued that a 5.39% rate decrease should be ordered rather than allow any rate increase. The docket went to hearing in October 2011, and an order was issued January 20, 2012. In its Order, the RCA agreed with most of the positions taken by the AG's witness at hearing, but limited one significant AG adjustment to 50% of what was requested. This decision resulted in the RCA concluding an 85% rate increase was warranted based on the facts presented.
