NOTICE OF DEPRECIATION FILING
The REGULATORY COMMISSION of ALASKA (Commission) gives notice that on July 2, 2015, Homer Electric Association, Inc. (HEA), on behalf of itself and its wholly-owned subsidiary, Alaska Electric and Energy Cooperative, Inc. (AEEC), filed a depreciation study proposing revised deprecation rates. Docket No. U-15-094 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, HEA indicates that it is preparing a proposed rate revision incorporating the requested HEA and AEEC depreciation rates that will be filed in the near future.
The depreciation study is based upon HEA plant balances as of December 31, 2013, and AEEC plant balances as of December 31, 2014. HEA’s plant largely consists of distribution and general plant assets, while AEEC’s plant is primarily comprised of generation and transmission assets. The proposed depreciation rates would raise HEA’s depreciation expense by $494,986, an increase of 7.68 percent; and reduce AEEC’s depreciation expense by $203,932, a decrease of 2.29 percent.
The Commission may approve, deny, or modify, in whole or in part, the depreciation rates proposed by HEA. The Commission may set conditions on approval.
You may obtain more information about these filings from Rick Baldwin, Attorney for HEA, Baldwin & Butler, LLC, 125 North Willow Street, Kenai, AK 99611; phone: (907) 283-7167. 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-15-094” in the Find a Matter search box.
To comment on this filing, please file your comments by 5:00 p.m., August 10, 2015 at the Commission’s address given above or via our website at:
https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx.
Please reference the Docket No.U-15-094 and include a statement that you’ve filed a copy of your comments with HEA at its 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.govby August 3, 2015
DATED at Anchorage, Alaska, this 8th day of July, 2015.
REGULATORY COMMISSION OF ALASKA
T.W. Patch
Chairman