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RCA issues final ruling on 2011 test year rate case, ML&P to issue partial refund

ANCHORAGE, AK – (July 29, 2014) – Municipal Light & Power today began issuing customers a partial rate refund with approval of the Regulatory Commission of Alaska. Refunds to existing customers will be issued in the form of a payment credit on customer accounts. The payment credit will be reflected in the August billing cycle. Inactive customers will receive a check, less any outstanding account balance due ML&P. Checks will be sent to the customer’s last known address according to utility records.

In January 2013, in ML&P’s 2011 test year rate case, the RCA approved a 7.78 percent interim and refundable increase to ML&P’s demand and energy charges that were charged from Mar. 1-Oct. 24, 2013.

The RCA recently issued its permanent rate order in that case in which it reduced the rate increase to 6.57 percent. Because the permanent increase was lower than the interim and refundable increase, a partial refund is due to customers for rates charged Mar. 1-Oct. 24, 2013.

ML&P will calculate each customer’s refund individually. A sample residential customer’s total refund is calculated to be approximately $3.60. A sample commercial customer’s total refund is calculated to be approximately $194.

The refund includes the over-collected demand and energy charges plus 10.5 percent annual interest accruing from the date billed between Mar.1-Oct. 24, 2013 to the date refunded. Because all Anchorage electric utilities are required to apply a 2 percent undergrounding surcharge on each customer’s total bill, ML&P also will refund an additional 2 percent of the over-collected demand and energy charges to each customer. 

While ML&P is issuing customers a refund for rates charged Mar. 1-Oct. 24, 2013, customers should not expect to see a decrease in their future monthly electric bills. In September 2013, ML&P filed a 2012 test year rate case with the RCA and was granted new interim and refundable rates that went into effect on Oct. 25, 2013. The RCA’s final order in the new rate case is not expected until early 2015.

 

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