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Anchorage Assembly Approves 2018 Rate Proposal

Regulatory Commission of Alaska Accepting Public Comments

Post Date:11/30/2017 2:45 pm

The Anchorage Assembly approved AWWU's proposed across-the-board rate increases in 2018 of 3 percent for water service and 2.5 percent for wastewater service at their Nov. 21 meeting.

With the Assembly’s approval, the Utility now seeks approval from the Regulatory Commission of Alaska (RCA) for the rate increases. All rate changes are subject to the approval of the RCA. 

To comment, go to AWWU Rate Increase Filings on the RCA’s website. RCA comments must be filed by December 28, 2017 at 5 p.m.. 

For single-family residential customers, the new rates equal, approximately, an increase of $1.49 a month for a water customer, and $1.11 a month for a wastewater customer. Combined, the rate increases will equal approximately 2.8 percent over 2017 rates. 

The proposed rate increases are based on the results of 2016 Test Year Revenue Requirement Studies confirming Utility operating expenses. The main drivers of the proposed rates are increased capital expenses associated with facility additions put into service since the last revenue requirement study, increased expenses for Municipal Utility Service Assessments (MUSA), utilities, and labor and benefits.

AWWU’s water rates were last increased in January 2014 using a 2012 Test Year Revenue Requirement Study. Wastewater rates were last increased in January 2017 using a 2015 Test Year Revenue Requirement Study.

Proposed changes to the most common monthly rates are:

 Water  2017 (Current)  2018 (Proposed)
 Customer Charge  $13.15  $13.54
 Flat Residential Service Charge  $36.55  $37.65
 Metered Rate Per 1,000 Gallons  $5.08  $5.23

 

 Wastewater  2017 (Current)  2018 (Proposed)
 Customer Charge  $8.52  $8.73
 Flat Residential Service Charge  $36.07  $36.97 
 Metered Rate Per 1,000 Gallons: Residential  $5.64  $5.78
 Metered Rate Per 1,000 Gallons: Commercial Low Strength  $4.96  $5.08
 Metered Rate Per 1,000 Gallons: Commercial Medium Strength  $6.59  $6.75
 Metered Rate Per 1,000 Gallons: Commercial High Strength  $7.69  $7.88