Press Release

Attorney General Intervention Results in Ratepayer Refund

February, 2010

Anchorage, Alaska – Customers of Eagle Utilities, Inc., a small water utility near Palmer, will see less of an increase in their monthly rate and will receive one-time refunds as the result of a stipulated settlement negotiated by the Regulatory Affairs & Public Advocacy (RAPA) Section of the Department of Law.

RAPA, under the direction of the attorney general, acts as the public advocate in regulatory matters. Eagle filed for a 22% rate increase before the Regulatory Commission of Alaska (RCA), and RAPA intervened in the proceeding on behalf of the public interest.

The RCA recently approved a settlement agreement that will limit Eagle's rate increase for single-family units to 15 percent. That means a bill of about $51, instead of the $55 proposed by the utility. The new rates are now in effect.

At the utility's request, the RCA had initially granted Eagle an interim and refundable rate increase of 22% in April 2009 which the utility was authorized to collect until the final outcome of the rate case review.  RAPA then intervened in the case and challenged several aspects of the utility's proposed adjustments to its revenue requirement. Because the interim rates were higher than the final rates in the settlement approved by the RCA, Eagle was ordered to refund the difference to its customers.

RAPA reviewed Eagles' proposed refund plan and recently notified the RCA that it has no objections to it. If the RCA approves the plan as expected, those who were customers during the entire interim period will get a one-time credit of $32, which includes interest. The interim rate, which was in effect for 10 months and which the utility sought to make permanent, was $55.

Eagle Utilities provides water service to approximately 230 customers in the Palmer area.

For more information, contact Chief Assistant Attorney General Daniel Patrick O'Tierney, (907)269-5100. 

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