Notice Of Depreciation Filing
The REGULATORY COMMISSION of ALASKA (Commission) gives notice that on June 11, 2015, College Utilities Corporation (CUC) and Golden Heart Utilities, Inc. (GHU) filed a depreciation study proposing revised depreciation rates for the CUC and GHU water and wastewater utilities. The depreciation study also includes proposed depreciation rates for the Utility Services of Alaska, Inc. (USAI) corporate offices. USAI provides administrative support to GHU and CUC. GHU, CUC, and USAI are jointly owned by Fairbanks Sewer and Water, Inc. Docket No. U-15-089 was opened to address this matter.
Depreciation expense is a material cost of business that may be recovered through regulated utility rates. Changes in depreciation expense may lead to changes in the utility rates paid by consumers. No change in consumer rates is proposed by this filing. However, GHU and CUC have incorporated the results of this depreciation study as a known and measurable adjustment to the test year 2014 revenue requirements in which across-the-board rate increases are proposed. The revenue requirement studies were filed as TA115-97 (CUC – Water), TA121-37 (CUC – Wastewater), TA73-118 (GHU – Water), and TA68-290 (GHU – Wastewater), and are currently under consideration by the Commission.
The depreciation study is based upon GHU, CUC, and USAI plant balances as of December 31, 2014. The proposed depreciation rates would raise the combined GHU, CUC, and USAI annual depreciation expense by $204,344.00, an increase of 12.0 percent to their composite depreciation expense.
The Commission may approve, deny, or modify, in whole or in part, the depreciation rates proposed by GHU, CUC, and USAI. The Commission may set conditions on approval.
You may obtain more information about these filings from Kristen Winters, Director of Regulatory Affairs, Utility Services of Alaska, Inc., P.O. Box 80370, Fairbanks, AK 99708; phone (907) 479-3118. The complete filing is also available for inspection at the Commission's office at 701 West 8th Avenue, Suite 300, Anchorage, AK 99501; phone: (907) 276-6222; or at the Commission’s website at www.rca.alaska.gov by typing Docket “U-15-089” in the Find a Matter search box.
To comment on the depreciation study, please file your comments with the Commission and GHU and CUC, referencing to Docket U-15-089, by 5:00 p.m., July 16, 2015, at the Commission’s address given above or via our website at:
https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx.
Please reference Docket U-15-089 and include a statement that you’ve filed a copy of the comments with GHU and CUC at the address given above.
Individuals or groups of people with disabilities, who require special accommodations, auxiliary aids or service, or alternative communication formats, please contact Joyce McGowan at (907) 276-6222, toll-free at 1-800-390-2782, or TTY (907) 276-4533, or send a request via electronic mail to rca.mail@alaska.gov by July 6, 2015.
DATED at Anchorage, Alaska, this 16th day of June, 2015.
REGULATORY COMMISSION OF ALASKA
Robert Pickett
Chairman