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Utilities push simplified rate filing in committee, citing high cost of full RCA rate cases
Summary
Anchorage and Fairbanks utilities testified in support of HB385 to expand simplified rate filing (SRF) to water and wastewater utilities, arguing it would smooth rates, reduce regulatory cost and speed recovery of escalating fuel and supply costs.
Representatives of Anchorage Water and Wastewater Utility and Fairbanks Orin Water told the House Labor and Commerce Committee that HB385 would reduce regulatory lag and cost by allowing more public utilities to use a simplified rate‑filing process.
David Persinger, general manager of Anchorage Water and Wastewater Utility, said rate cases can exceed $1 million in cost and that a utility filing based on 2024 financials might not be resolved until 2027 under current timelines, creating a multi‑year lag for recovering known costs. "For the utility side, a rate case can exceed $1,000,000," Persinger said, noting that those expenses are ultimately passed to consumers.
Orin Paul, president of Fairbanks Orin Water, said SRF smooths rate changes and reduces spikes caused by infrequent full rate cases. He estimated that smaller utilities face substantial per‑case costs that are disproportionate to their customer base and that SRF could reduce administrative burden for both utilities and the Regulatory Commission of Alaska.
Committee members asked whether utilities had consulted consumer advocates and how often full rate cases typically occur; utility witnesses said they had discussed the idea with commission staff and that electric co‑ops already use SRF. Witnesses agreed they would seek broader stakeholder input, including consumer groups, to refine the bill.
The committee took testimony and paused for additional business. HB385 remains before the committee for further consideration.
