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A new electric tariff
Chugach Electric files response to RCA order after lengthy commission review
Alan Bailey for Petroleum News
On Oct. 24 Chugach Electric Association made a new tariff filing with the Regulatory Commission of Alaska. The filing, which requires RCA approval, proposes an electricity rate rise of 4.56% for Chugach Electric's retail customers and 10.12% for electricity supplied to Seward Electric System. The filing comes in response to an RCA order issued on Sept. 25, requiring Chugach Electric to file new tariff sheets by Nov. 14.
In July of last year, the utility requested RCA approval of a new tariff that would have resulted in a 5.9% rate rise for its retail customers. In response the commission opened two dockets, which were subsequently combined, to investigate the tariff situation, while also gathering input from various parties with interests in what was happening. RCA's Sept. 25 order closed those dockets and specified conditions that the utility must meet in its revised tariff.
RCA had allowed the rates proposed in 2023 to go into effect on an interim basis -- the utility's customers would now be entitled to refunds based on the fact that the proposed electricity rates would be lower than originally planned.
Complies with RCA requirements Chugach Electric's new tariff complies with the RCA's requirements as spelled out in the Sept. 25 order. For example, the utility will not charge its transmission customers for their use of the transmission infrastructure that used to be owned by Municipal Light & Power prior to Chugach Electric's acquisition of ML&P. And the tariff meets a number of other conditions including an RCA mandated target limit on the financial gains the utility can make.
Chugach Electric has questioned RCA's ruling that the utility cannot charge its transmission customers for their use of what were ML&P's transmission assets. However, at the time Petroleum News went to press the commission had not responded to the utility's complaint.
Interim and permanent tariff sheets Chugach Electric has filed interim tariff sheets that apply from Sept. 1 to Nov. 30 for its north and south districts. The utility has also issued permanent tariff sheets that apply from Dec. 1 and encompasses both districts, with the same electricity rates for each district. Having identical rates for both districts was another RCA requirement. The north district, under its own certificate of public convenience and necessity, used to belong to ML&P -- once the tariff that combines the districts is in place, Chugach Electric will ask the RCA to revoke ML&P's old certificate.
In its new tariff Chugach Electric is also proposing to start a trial of "time of use pricing" in 2026. In 2025 up to 500 customers could volunteer to participate in the trial, whereby there would be lower charges for electricity used between 9 p.m. and 9 a.m. than at other times of the day. The idea is to discourage electricity use during the times when demand is highest.
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