ENSTAR Base Rate ChangeENSTAR is facing many challenges as Cook Inlet gas fields age and the local gas supply market changes. The Regulatory Commission of Alaska approved the first increase in ENSTAR's base rates since 1986. ENSTAR is now well-positioned to provide safe, efficient, and reliable service to its 130,000 customers in Southcentral Alaska.
This increase in our base rates will be initiated in two steps: Step 1, effective August 9, 2010 by RCA order, is an increase in ENSTAR's base rates necessitated by changes in distribution non-gas costs (the costs of operating and maintaining ENSTAR's distribution system) and are intended to recover an additional $7 million in revenue. These non-gas costs include pipeline maintenance costs, vehicles and equipment, employee wages, taxes the company pays and the cost of capital needed to finance the company. Through the RCA-approved interim rate increase, $3.4 million of the $7 million is currently included in rates. Step II will recover an additional $3.7 million for the new South Peninsula Pipeline, once it is placed in service (expected to be late 2010 - early 2011). The new South Peninsula Pipeline will allow ENSTAR to receive and transport from new sources. Natural gas is one of the cleanest, safest and most reliable energy sources. ENSTAR Natural Gas has safely delivered natural gas to thousands of homes and businesses here in Southcentral Alaska for almost 50 years; we look forward to providing that same quality of care and customer service for another 50. Please see the information provided below for more on this increase and the new rate design. Under the new rate design, customer classes are based on the volume of gas that can flow through your meter, instead of the previously used designations of residential and commercial. Customers who use larger volumes of gas each month will pay more of the fixed costs of delivering service. You can tell which class you are in by looking at your bill. Ninety-seven percent of the customers who were classified as "residential" under the old billing system will be G1 customers under the new rate structure. Those customers can use the rate calculator below to understand how this rate increase and rate design change will impact their average monthly bill. · Rate Calculator All other customers may contact Customer Service to understand the changes in their monthly bill. For general questions and answers regarding this increase and rate design see the links below: · Q & A Sheets · Tariff Pages o Docket U-09-070 o G1 Sheet o G2 Sheet o G3 Sheet o G4 Sheet Information on Ratemaking: · Guide to Utility Ratemaking For any additional questions, please email us at email@example.com and we will respond to your question(s) promptly.
Posted: August 16, 2010
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