Hydro or Diesel Today? In Haines, It's Hard to Tell.

When the AP&T diesel generators, located in the heart of down town Haines fired up, we all knew it. That was hard to miss, even though the thrumming sound soon receded into the background. Cock an ear, and you could tell. When those generators were running, no one could stand down town and confidently state, “We’re on hydro.” But now that more fuel efficient diesels in Skagway are running, that’s exactly what can happen. In Haines we can believe we are on hydro when we are not. It happened yesterday.

I wanted to talk to a local mover and shaker about the Alaska Energy Authority’s decision not to hold an Energy Town Hall Meeting in Haines (see "Left Out," April 25), and the VIP basically said he was unconcerned because, “We’re on hydro.” That’s just the point. We’re not. But we don't know it.

Starting on or about April 28, and for the subsequent 4 weeks, we will be on 50% hydro electiricty, 50% diesel generated electricity. (Personal email from Stan Selmer, AP&T Regional Manager located in Skagway).

The more diesel AP&T has to use, the higher the Energy Charge. It’s gone up twice since January, from $.0770 to $.0831 to $.1061. The Electric Rate is $.1243 per KWH. THAT’S the rate for hydro. The extra 10+ cents is for diesel. The Energy Rate itself is a combination of the price of diesel (ever rising) and how much diesel is used (also apparently rising). This is a problem for rate payers because the utility simply transfers the cost of the fuel it needs to power the grid to us.

Most tariffs (rates) utilities set, or change have to go through a public hearing process. Not so for Energy Rates, known in the industry as COPA. In the early 70’s when fuel prices were rapidly rising, the Alaska State Legislature decided public notice for Energy Rate or COPA filings was not necessary.

3 AAC 52.504:
(d) For a COPA filing under (b) of this section, an electric utility is not required to give public notice under AS 42.05.411 . However, if an electric utility seeks, outside of a general rate case, a change to its COPA methodology, a change to a COPA cost element, or a change to its COPA that the commission considers to be of significant interest to the public, the commission will require notice to the public in a form that the commission considers sufficient for the particular changes proposed.

Funny. To my way of thinking, the rapid rise of fuel prices should TRIGGER public notice, not prevent it. I am hoping that the last sentence (d) will enable us to persuade AP&T to give notice of its intent to raise (or lower. That has happened.) Energy Rates. They are required to file quarterly Energy Rates/COPA notices with the RCA but can file more frequently if conditions warrant. Let’s see. The announcement today that fuel prices are rising in Skagway just might trigger an early filing.

If AP&T doesn’t publish its intent to file for higher COPA rates in Haines and Skagway, but does file, how will you find out? After the fact. Ex post facto. It will show up on your bill. Opps. You will have been blithely consuming at one rate, and find out, after the fact, that you were actually paying a higher than expected rate. That seems backwards to me, and just a little unfair. Isn’t that what Juneauites protested when AEL&P suggested that their billing procedure would end up in having the higher rates applied to some consumption that took place before the avalanche? I think so.

So let’s get together and kindly request AP&T to let us know if they are going to have to charge more for the diesel they are using. That’s what I did. It’s the first step in the RCA informal complaint procedure. I sent an email to Mary Jo Quandt (maryjo.q@aptalaska.com), AP&T Vice President in Port Townsend, WA with a copy to Stan Selmer (stan.s@aptalaska.com). Very non threatening. Email me (sscott@aptalaska.net) if you would like a copy.

My argument is that the more consumers know about the cost of energy, the more choices they can make. Maybe if we knew that our electricity costs were going to go up we might use less (conserve) or we might even decide to buy that energy efficient appliance. Given the rising cost of power, the new appliance is more likely to pay for itself.

Knowing the cost of something BEFORE you buy it is simply good sense. I think this should apply to electricity as well as to gas and groceries. Can you imagine going to the store, picking out food, piling it at the check out counter, giving the grocer a blank check, and walking out with your food – only knowing what it cost when you get your bank statement at the end of the month? Impossible you say. But that’s what happens with your electric bills when you are notified of a rate change after the fact. And that’s the current state of affairs with respect to the Energy Charge. Let’s change that. We can.