Regulatory Commission of Alaska

Public Comment for TA168-126 by Steve Tucker

AWWU’s proposed rate increase should be denied.

First, inflation was virtually non-existent in 2020.  Nationwide, inflation was barely 1%, and, in Alaska, the CPI was actually negative.  With negative inflation in Alaska, all of AWWUs operating costs, employee costs, and maintenance costs should have been lower than normal.  

Second, AWWU released a fact sheet stating that 9% of their revenues were profits after all net expenses were paid.  With a 9% profit margin, it’s difficult to understand how a rate increase is warranted.  

Third, 29% of AWWU’s budget is for employees.  Employee costs are too high.  AWWU needs a thorough review of its workforce and a significant reduction.  

Fourth, AWWU’s “peer utilities rate comparison” is very misleading.  AWWU compares itself to three much larger municipalities and 5 much smaller municipalities.  None of the listed comparisons are true peers. The fact is, AWWU has some of the highest rates in the nation for a city its size.......probably why the fact sheet doesn’t depict an actual peer comparison.  

Fifth, AWWU tells us that water is a minuscule portion of the budget since water from Eklutna Lake is so cheap.  Cheap and plentiful Eklutna water is why we are told there is no need to actually meter water use and charge accordingly. According to AWWU, 91% of water is from Eklutna Lake.  However, AWWU operates 22 reservoirs and 14 wells. 21 reservoirs and 14 wells seems a bit exorbitant to supply 9% of the water.   Rather than adding infrastructure, perhaps they should be reducing it. A reduction in infrastructure would also lead to a reduction in employees, lower maintenance, and lower operating costs.

Type

Comments

Date Filed

1/27/2021

Tracking Number

TR2100620

Filed By

Steve Tucker

Entities

Certificate(s)

Means Received

Internet

Related Matters

TA168-126	Anchorage Water and Wastewater Utility - Wastewater - Revenue Requirement Study

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