Municipal Light & Power has filed a request for rate relief with the Regulatory Commission of Alaska based on revenue requirement and cost of service studies using a 2011 test year.
The studies show that a 9.72 percent rate increase to ML&P's energy and demand charges is required to permanently finance investments the utility has made to its transmission and distribution system and should be applied on an across-the-board basis to all customers. Because the rate increase is applied only to the demand and energy charges, the overall increase to the typical consumer's total monthly bill will be between 6 and 7 percent.
If the rate increase is fully implemented, ML&P's net income will increase by $6.9 million.
ML&P proposes to implement the permanent increase over 15 months in...