The Regulatory Commission of Alaska is reviewing Enstar’s proposed tax changes which includes having large customers notify Enstar one year prior to leaving for another gas provider.
Aurora Power Resources, Cook Inlet Energy, and Homer Electric Association requested the rejection of the changes or a formal investigation by the RCA after Enstar filed the proposed changes December 19 of last year.
John Sims with Enstar explained the reasons for the changes.
Sims: “So that’s why we have made the request for the years notice, so that we can appropriately forecast for that load coming back onto that system.”
Sims added that from a revenue perspective Enstar does not make money off of the price of gas or who buys from them, they receive revenue from transporting the gas.
Sims: “Based on historical events, Enstar just wants to ensure that our customers are protected because ultimately what happens is if we have a large number of customers that leave or come back on that could impact existing customers and their rates. So Enstar is trying to protect our customer base and ensure that the costs they can expect are truly those.”
The RCA should decide whether or not to accept the tax changes by September 15 of this year.