Regulatory Commission of Alaska

Public Comment for TA310-4 by Heath Smith

Regulatory Commission of Alaska
Stephen McAlpine, Chair 
701 West Eighth Avenue, Suite 300 
Anchorage, AK 99501

 
RE: Enstar Tariff TA310-4


Please know that as an Enstar customer affected by this proposed tariff I am deeply troubled that it does not address what made the original tariff such a misrepresentation of the agreement that Enstar presented while brokering this deal with the stakeholders.

In a public meeting with the Homer City Council Enstar officials justified their $1.1 million construction cost overrun as a typical 10% in the construction world.  What is actually typical in the construction world is that there is a 10% contingency included with construction costing as to insure that those paying for it are prepared for that possibility.

Interestingly, Enstar overran their cost estimates by $1 million on the Funny River project as well. You know how that is getting paid for, and by who! 

There clearly needs to be greater accountability when it comes to project costs to insure the rate payers are not bilked on the back end.

Lastly, a rate of return on “aid to construction” money is a tricky way to imply that somehow we agreed to the terms as presented to the RCA. No one in there right mind would have agreed to such terms. I’d say they got a great rate of return solely based on what they got from the state in way of $8 plus million in gas line build out. That would of been 3 to 1 on every dollar if they had been able to construct to budget! Plus, they were guaranteed their money back through the tariff! 

Please deny Enstar Tariff TA310-4, and insist they formulate a tariff structure that fairly represents what the rate payers were originally led to believe to be the deal.

Thank you for your time and consideration in this matter.

Sincerely,

Heath Smith
570 Lee Dr
Homer  AK  99603
9072998226

Type

Comments

Date Filed

3/11/2019

Tracking Number

TR1901331

Filed By

Heath Smith

Entities

Certificate(s)

Means Received

Internet

Related Matters

TA310-4	ENSTAR Natural Gas Company - General Rule Revision (Homer Extension Surcharge Methodology Update)

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701 West Eighth Avenue, Suite 300 Anchorage, Alaska 99501-3469
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