Fairbanks Natural Gas Discussing Economic Regulation by RCA
FAIRBANKS, AK, September 25, 2012-- Fairbanks Natural Gas LLC (FNG) today announced that it has initiated discussions with the Alaska Attorney General (AG) relating to the possible economic regulation of FNG by the Regulatory Commission of Alaska (RCA). In 2003, the RCA exempted FNG from economic regulation of rates, although FNG continues to file tariffs with the RCA and is subject to agreed upon limitations on its rate structure.
Since 2003, FNG has charged reasonable rates to its customers, and provided them substantial savings over heating oil. Currently pending before the RCA is Docket No. U-12-095, in which the RCA is revisiting the regulatory status of FNG, and the AG is analyzing whether certain stipulations agreed to by the parties in 2009 continue to adequately protect FNG’s customers.
FNG has indicated to the AG that it might be willing to accept full economic regulation by the RCA, if the new regulatory status were subject to a reasonable phase-in, and if certain other agreements could be reached. The discussions at this point are preliminary and ongoing, and neither party has committed to an agreement. FNG hopes that an agreement can be reached in the near future to provide certainty to FNG and its Fairbanks customers.
FNG is the natural gas utility providing gas service to Fairbanks, Alaska. The company initiated service to its first customer during the spring of 1998, and currently serves over 1,100 FNG residential and commercial customers. FNG will continue to expand its 70-mile underground distribution system to serve the Fairbanks area.