Notice of Depreciation Filing
The REGULATORY COMMISSION of ALASKA (Commission) gives notice that on August 4, 2015, Golden Valley Electric Association, Inc. (GVEA) filed a depreciation study proposing revised depreciation rates. Docket No. U-15-104 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, GVEA indicates that it anticipates that the impact of the depreciation rates will be incorporated into its general rate case filed with the Commission in 2016 or in the next Simplified Rate Filing following approval.
The depreciation study is based upon GVEA plant balances as of December 31, 2014. GVEA proposes to reduce its overall depreciation rate from 3.21 percent to 3.04 percent, resulting in a decrease of $1,274,082 to the calculated depreciation expense as of December 31, 2014. This reduction in expense represents approximately 0.5% of GVEA’s 2014 total electric service operating revenues. Within the study, GVEA also requests approval of a depreciation rate for Healy Unit 2 (also known as the Healy Clean Coal plant), expected to become commercially operable by early Fall 2015.
Along with the depreciation study, GVEA filed a motion for expedited consideration of the depreciation study on or before December 31, 2015.
The Commission may approve, deny, or modify, in whole or in part, the depreciation rates proposed by GVEA. The Commission may set conditions on approval. You may obtain more information about this filing by contacting Monica Grassi, Regulatory Specialist for GVEA, P.O. Box 71249, Fairbanks, AK 99707; phone: (907) 458-5788. The complete filing is also available for inspection at the Commission's office at 701 West 8th Avenue, Suite 300, Anchorage, AlK 99501; phone: (907) 276-6222, or may be viewed at the Commission’s website at http://rca.alaska.gov by typing Docket “U-15-104” in the Find a Matter search box.
To comment on this filing, please file your comments by 5:00 p.m., September 8, 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 number and include a statement that you’ve filed a copy of the comments with GVEA 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.gov by September 1, 2015.
DATED at Anchorage, Alaska, this 6th day of August, 2015.
REGULATORY COMMISSION OF ALASKA
T.W. Patch
Chairman