1.5% increase to AEL&P revenue approved by RCA

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Juneau, Alaska (KINY) – The Regulatory Commission of Alaska (RCA) has issued a final order on AELP’s general rate increase request that was submitted on Jul. 15, 2022.

Electric rate changes in Alaska often happen in two steps.

First, interim rates are usually approved within 45 days of the filing.

The RCA approved AELP’s request for an interim revenue increase of 4.5% on Sept. 2, 2022.

Second, the RCA may then approve additional changes to rates in a final ruling usually issued 15 months after the filing.

With this order, the RCA has approved an increase to revenue of 1.5% effective Oct. 25, 2023.

A residential customer using an average of 750 kWh a month will see a monthly increase of $2.40 in the summer rate months (June through October) and $2.72 in the winter rate months (November through May).

To see the complete breakdown of how these changes to AELP’s revenue impact the rates paid by customers, please visit www.aelp.com.

This rate request was the result of increased costs to provide safe and reliable energy to the Juneau community.

AELP’s last rate adjustment was a decrease of 6.73 percent in 2018. AELP’s last rate increase was in 2016.

Between the 2016 increase request and the time of AELP’s filing on this current request in July 2022, inflation rose more than 15%.

Over the six years between rate requests, AELP invested more than $53 million dollars for system additions and upgrades to ensure the ability to provide Juneau with safe, reliable, reasonably priced energy.

These investments included upgrades to the electric system, such as the Gold Creek flume replacement, pole replacements, substation upgrades, system redundancy, automation, and transmission and distribution line improvements.

Increased depreciation and operating and maintenance expenses were also significant drivers in this rate request.

With this increase, AELP’s residential rates remain well below the 2022 national average of 15.12 cents per kWh, and significantly below average residential rates in Alaska.

AEL&P is sensitive to the effect this rate increase may have on our 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.