Municipal Light & Power Seeks Rate Increase to Recoup Investments
ANCHORAGE, AK – (Dec. 28, 2012) – Municipal Light & Power has filed a request for rate relief with the Regulatory Commission of Alaska based on revenue requirement and cost of service studies using a 2011 test year.
The studies show that a 9.72 percent rate increase to ML&P’s energy and demand charges is required to permanently finance investments the utility has made to its transmission and distribution system and should be applied on an across-the-board basis to all customers. Because the rate increase is applied only to the demand and energy charges, the overall increase to the typical consumer’s total monthly bill will be between 6 and 7 percent.
If the rate increase is fully implemented, ML&P’s net income will increase by $6.9 million.
“Safe, affordable and reliable power is important to our customers,” said General Manager James Posey. “Efficiency upgrades to our aging infrastructure assure that our service remains competitively priced while meeting our customers’ reliability expectations.”
ML&P proposes to implement the permanent increase over 15 months in two steps. If approved by the RCA, the 2012 permanent rate increase will raise the average residential bill a total of $3.84 per month from today’s rates. ML&P has asked for 80 percent of the permanent rate increase to be effective on an interim and refundable basis within 45 days of the filing.
ML&P’s six-year Capital Improvement Program calls for the utility to spend $459 million through 2017 in new generation, the Beluga River Unit Gas Field, distribution system improvements and other capital projects.
More information is available online at www.mlandp.com.