NOTICE OF DEPRECIATION FILING
The REGULATORY COMMISSION OF ALASKA (Commission) gives notice that on July 20, 2016, Alaska Electric Light & Power Company (AEL&P) filed a request for approval of an initial depreciation rate for a new AEL&P plant account. Docket No. U-16-067 has been 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, if approved, AEL&P plans on incorporating the impact of the initial depreciation rate into its next general rate case.
AEL&P requests approval of an initial depreciation rate for a new plant account, Account 344 – Other Production, Generators (Account 344). AEL&P’s currently approved depreciation rates do not include a depreciation rate for Account 344. The proposed depreciate rate for Account 344 is necessary to allow AEL&P to depreciate the generator-related costs of a new 25 MW backup, diesel-fueled, aero-derivative generation unit that AEL&P is currently constructing (New Backup Unit). AEL&P states the current estimate for the new backup unit is $5.6 million. AEL&P has proposed an initial depreciation rate of 2.70 percent for Account 344.
AEL&P also requests the Commission issue a final order before the 180-day statutory deadline of January 16, 2017. AEL&P requests the final order be issued by December 31, 2016, as it will allow them to record 2016 depreciation expense on the generator-related costs of the new backup unit on its 2016 audited financial statements, without the need for restatement of those financial statements.
The Commission may approve, deny, or modify, in whole or in part, the depreciation rates proposed by AEL&P. The Commission may set conditions on approval.
You may obtain more information about the filing from Dean D. Thompson, Attorney for AEL&P, at Kemppel, Huffman and Ellis, P.C., 255 East Fireweed Lane, Suite 200, Anchorage, AK, 99503; phone: (907) 277-1604. 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 Docket No. “U-16-067” in the “Find a Matter” search box.
To comment on this filing, please file your comments by 5:00 p.m., August 18, 2016, at the Commission’s address given above or via our website at:
https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx.
Please reference Docket No. U-16-067 and include a statement that you have filed a copy of your comments with AEL&P 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, TTY (907) 276-4533 or send a request via electronic mail to rca.mail@alaska.gov by August 11, 2016.
DATED at Anchorage, Alaska, this 26th day of July, 2016.
REGULATORY COMMISSION OF ALASKA
Robert M. Pickett
Chairman