Notice of Utility Tariff Filing

The REGULATORY COMMISSION OF ALASKA (Commission) gives notice that the Municipality of Anchorage d/b/a Municipal Light and Power Department (ML&P), filed tariff revision TA350-121 seeking approval of a revision to its current interim and refundable gas transfer price (GTP) to include depletion expense associated with its new non-contributed Beluga River Unit (BRU) plant. Under the current approved GTP methodology, the GTP is determined based on a projected annual revenue requirement, a cost of gas clearing account balance, and the projected gas volumes purchased by the Electric Fund from the Gas Fund. In Docket No. U-16-060, currently pending before the Commission, ML&P filed a Request for Approval of Ratemaking and Accounting Treatment for ML&P’s Interest in the BRU in which ML&P proposes to include depletion expense for new non-contributed BRU plant in the calculation of the GTP revenue requirement through December 31, 2018. 

ML&P will continue to adjust the GTP every year, effective July 1, as part of its third quarter Cost of Power Adjustment (COPA) filing. With TA350-121, ML&P proposes that depletion expense on the new non-contributed BRU plant be calculated on a unit of production method where the depletion expense for a period is based on the book value of the new non-contributed BRU plant divided by the product of the estimated remaining reserves at the beginning of the period multiplied by gas production during the period. Adding depletion expense increases the GTP revenue requirement filed with TA349-121, ML&P’s 2016 third quarter COPA, by $872,991, which results in the GTP increasing from $4.41459 to $4.57457. ML&P has requested the proposed GTP of $4.57457 be approved on an interim and refundable basis.

This notice does not contain every pertinent revision or request associated with TA350-121. The Commission may approve rates or classifications that vary from those proposed. You may obtain more information about this filing by contacting Anna Henderson, Regulatory Affairs Division Manager for ML&P, at 1200 East First Avenue, Anchorage, AK 99501-1685; phone: (907) 279-7671. The complete filing is also available for inspection at the Commission's office, at 701 West Eighth Avenue, Suite 300, Anchorage, AK 99501; phone: (907) 276-6222, or may be viewed on the Commission’s website at http://rca.alaska.gov by typing “TA350-121” in the Find a Matter search box.

To comment on this filing, please file your comments by 5:00 p.m. on August 8, 2016, at the Commission address given above or via our website at:

https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx

Please reference TA350-121 and include a statement that you have filed a copy of the comments with ML&P, at their address above or at HendersonAC@muni.org.

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 August 1, 2016.

DATED at Anchorage, Alaska, this 7th day of July, 2016

REGULATORY COMMISSION OF ALASKA

Julie C. Vogler

Finance Section Manager