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Regulatory Commission of Alaska Requests Comments on ENSTAR's Proposed Rate Increase

Strategic Insights

— 1 min read

The Regulatory Commission of Alaska has issued a Public Notice requesting comments on ENSTAR Natural Gas Company's recent filing, TA354-4, which proposes a significant increase in its overall base rates. Matanuska Electric Association, Inc. (MEA) has submitted comments requesting the Commission suspend the filing for investigation and solicit intervention from economically impacted parties. ENSTAR's proposed rate increase of 24.52% will directly affect MEA, requiring corresponding rate increases for its members due to additional costs. The timing of this proposal coincides with the need for all southcentral utilities to prepare ratepayers for potential increases in the cost of fuel due to the need to import liquefied natural gas.

Key Takeaways:

  • MEA submits comments on ENSTAR's proposed rate increase, TA354-4, requesting the Commission suspend the filing for investigation.
  • ENSTAR's proposed rate increase of 24.52% will directly impact MEA and its members, requiring corresponding rate increases.
  • The timing of this proposal coincides with the need for all southcentral utilities to prepare ratepayers for potential increases in the cost of fuel due to the need to import liquefied natural gas.
  • ENSTAR's file proposes an increase in return on equity (ROE) of 13.00%, a 112.5 basis point increase from its currently authorized ROE of 11.875%.
  • TA354-4 includes a revenue requirement study based on a 2024 test year.
  • The Commission has issued a Public Notice requesting comments on the filing be submitted no later than May 19, 2025.
  • The proposed rate increase will affect MEA as a transportation and distribution customer on ENSTAR's pipeline system.

Statistics:

  • Proposed rate increase: 24.52%
  • Increase in return on equity (ROE): 13.00% (a 112.5 basis point increase from 11.875%)
  • Test year: 2024
  • Deadline for comments: May 19, 2025

Sources:

  • Regulatory Commission of Alaska Department of Commerce and Economic Development State of Alaska 701 West Eighth Avenue, Suite 300 Anchorage, Alaska 99501

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