Investigation of ENSTAR's Fees Associated with Customer's Delinquent Accounts

Anchorage, AK - The Regulatory Commission of Alaska (Commission) has suspended the non-recurring fees proposed by ENSTAR Natural Gas Company (ENSTAR) for further investigation. On May 18, 2007, ENSTAR filed a tariff revision (TA152-4) requesting to implement new and revised non-recurring fees. In its filing, ENSTAR asserted that the revisions are necessary to recover costs associated with service reconnections, declined payments, late payments, meter tests and field contacts to inform customers of a pending disconnect.

On May 30, 2007, the Commission issued a public notice of the filing; and by the end of the comment period, the Commission received 45 comments in opposition to the proposed fees and provisions contained in ENSTAR’s filing.

According to Order U-07-084(1), the Commission’s concerns, in part, are that the costs ENSTAR seeks to recover through the tariff revisions are not adequately supported and may already recovered through rates currently in effect. The Commission is also concerned that ENSTAR’s filing may result in piecemeal ratemaking. As such, the Commission determined that ENSTAR has not met its burden to prove the reasonableness of the proposed fees; and therefore suspended ENSTAR’s filing for further investigation.

A hearing has been scheduled for December 11 through 13, 2007 and the Commission will reach a final decision on this matter no later than February 12, 2008.

For further information, a copy of U-07-084(1) can be downloaded in its entirety at [ ].

Press Release: Regulatory Commission of Alaska Investigates Enstar's Fees Associated with Customers' Delinquent Accounts
Date Issued: 7/23/2007