Frequently Asked Questions on ML&P's Rate Increase.

On March 23, 2018, the RCA authorized the Municipality of Anchorage d/b/a Municipal Light and Power Department (ML&P) to increase its Energy Charge by 37.3 percent. ML&P ratepayers have been paying this rate since February 2017, as the rates were allowed on an interim and refundable basis while the rate case was pending before the RCA.  The permanent rate went into effect June 1, 2018.  A copy of the RCA's ruling can be reviewed from these links: U-17-008(13) and U-17-008(14)

Why did ML&P increase the rates?

In TA357-121 filed on December 30 2016, ML&P submitted the rate increase request to pay for the utility's investment in Plant 2A, which replaced ML&P's aging facilities that showed significant reliability and safety risks.  

Why did the RCA approve the request?

The RCA's role is to ensure regulated utilities provide safe and reliable service at just and reasonable rates.  During the rate case investigation, ML&P presented an engineering report with findings of significant reliability and safety risks associated with ML&P's aging facilities.  In ML&P's testimony (both prefiled and during the formal hearings held in December 2017), ML&P told the RCA that it investigated various ways to address the aging facilities and concluded that construction of Plant 2A was the best option.  (Copies of the hearing transcripts can be downloaded from Docket U-17-008.)  The RCA concluded that ML&P's decision to build Plant 2A was justified. (Note: The RCA's analysis of the challenge to ML&P's prudence to construct Plant 2A can be found in Order U-17-008(13) starting on Page 12.)

How was the public notified about the rate increase and was there an opportunity for comment?

In addition to the RCA's Notice of Utility Tariff Filing issued on January 4, 2017, ML&P posted information on their website and sent customers billing inserts about the rate increase.

Where can I access and review ML&P's tariff?

A copy of ML&P's tariff can be accessed from the RCA website by typing 121 in the "Find a Certificate" search box or click directly to this link: CPCN 121 Current Tariff.

Date Issued: 6/20/2018