CHUGACH ELECTRIC RATECASE (U-01-08) 

MEDIA COVERAGE

Rindi White (Frontiersman, Wasilla) - 2/11/03   12/23/02   12/10/02     
Richard Richtmyer (Anchorage Daily News) - 2/25/03 PDF  
MEA initiative to generate pressure on CEA board to lower rates - 2/24/04  Website 
  Ray Kreig on KBYR radio 2/27/04 discussing CEA rates (18:53 min)

GENERAL INFORMATION    3/03 Summary

* CEA requested a rate design that would bring in $16 million per year above expenses (according to information presented to the RCA in December, 2/11/03 Frontiersman). [But this does not agree with $11.9 million in margins identified in Chugach 8-K filing dated 1/31/03]

* RCA allowed only $7 million above expenses (according to MEA, 2/11/03 Frontiersman)

* Enormous costs of this rate case:

        $2 million CEA to 1/03
        $1 million (?) HEA, MEA, SES
        $0.2 million (?) RCA (will eventually be recovered in the RCC tax to customers)

        TOTAL over $3 million!

HISTORY

    TIER = Times Interest Earned Ratio (a ratemaking system)

7/10/01 - Chugach files general rate case - asks for 6.5% increase with immediate 4.0% interim increase

9/5/01 - RCA grants only 1.6% interim increase effective 9/14/01

10/25/01 - RCA on reconsideration requested by Chugach grants 3.97% interim increase implemented on 11/1/01 (TIER=1.35).

4/15/02 - Chugach updates filing to lower requested permanent increase from 6.5% to 5.7% (TIER=1.47).

1/31/03 - RCA orders overall TIER=1.30 for permanent Chugach rates.
Refunds required by Chugach:
2001 - $1.1 million
2002 - $6.1 million
2003 - $6.0 million (reduction in planned charges)

1/31/03 - Chugach SEC 8-K filing discussing RCA order

3/03 - Summary of case in footnote to 2002 Chugach Annual Report 

Please send comments or questions to Chugach Consumers