
Haines customers could face another jump in their electricity bills if the state approves Goat Lake Hydroelectric’s ask to increase rates.
The company, a subsidiary of Alaska Power & Telephone, asked to increase rates in part due to the costs of repairing a submarine transmission cable which was damaged in 2019 and cost more than $12 million to replace, according to the company’s revenue requirement study submitted to state regulators. The company is looking to generate another $618,000 a year, according to the study.
The Regulatory Commission of Alaska put out a notice on Dec. 23 that Goat Lake proposed an interim rate increase of 40%, effective Feb. 3, 2025, and a permanent rate increase of nearly 70% (69.92) percent. The company provides “wholesale service” to Alaska Power Company at the current rate of $0.06301 per kilowatt hour. The proposed interim rate is $0.08820 and the permanent rate is $0.10710.
The company estimates that for someone on residential power using 500 kilowatt hours a month in Haines or Skagway, the total bill could go from $129.33 to $130.30 if its permanent rate increase is approved by state regulators. That is, that the proposed increase would likely be offset by Power Cost Equalization, though that only applies to residential customers. And, the company is also proposing a higher Cost of Power surcharge, or COPA, rate which fluctuates based on the cost of fuel and purchased power. That rate can be a charge or a credit.
In his testimony to state regulators, Executive Vice President and Chief Operating Officer Jeffrey Rice said the company has pursued other cost-cutting measures including shutting down under-utilized equipment, and has also applied for subsidies through federal and state grant programs for hydro and renewable electricity sources. They have also upgraded equipment to reduce manpower needs at some facilities and are sharing personnel between facilities, he said.
Eighteen people between Haines and Skagway had commented on the proposed increase as of Wednesday.
Initially the public notice, which was put out by the Regulatory Commission of Alaska on Dec. 23, 2024, had a comment deadline of Jan. 6. But that has since been extended to Jan. 24, though the state’s original public notice has not been updated to reflect that extension.
But the RCA again did not publish a public notice about the increases in either the Haines or Skagway papers. In 2023 when Goat Lake Hydroelectric parent company Alaska Power & Telephone applied for a rate increase, notice was published in the Juneau Empire and the Kenai Peninsula Clarion – two papers published in areas where residents do not get power from AP&T.
When asked about the lack of publication, RCA spokesperson Becki Alvi attributed the lapse to an issue with the print schedule of the two papers, according to an email she sent to the Skagway News.
“However, a copy of the public notice was mailed to a number of entities in Haines and Skagway, including the post offices, the cities, the chambers of commerce, the school district, and the tribal councils,” she wrote. She also said that AP&T informed the RCA that it had given notice to customers via customer bills, emails, via the company’s website and by meeting with borough leaders in both communities.
Residents who have testified have spoken of the disproportionate impact on the region’s taxpayers, businesses and schools. Haines Borough Tourism Director Rebecca Hylton said a 70% rate increase would create “an untenable financial burden for families and individuals. Instead, the responsibility for these costs should fall squarely on the company’s shareholders, who have benefited from AP&T’s profits and investments.”
Haines school Superintendent Roy Getchell said staff have projected that the increase will cost the district another $15,000 a year in energy costs.
“So between the increases last year and then this one, it just tells you a bit about how – with no additional state funding – we’re bleeding money,” he said.
Skagway resident Kerri Raia also opposed a rise in electricity cost. She commented that she is a year-round resident who relies on seasonal work and said her electricity bill is already “atrocious.” “I’m afraid if this increase happens, my family will be tempted to sell our home and relocate,” she wrote.
Sara Kinjo-Hischer, Tribal Administrator for the Skagway Traditional Council, noted that the new rates, coupled with the addition of a 14.51% rate hike Alaska Power & Telephone negotiated last year, would result in a total rate increase of about 40%.
“Such drastic hikes have serious implications for residents, many of whom are already facing financial hardships due to inflation and the rising costs of goods and services,” she wrote.
In her letter to the RCA, Haines resident Michelle Strohecker said the rate hike would disproportionately affect low-income families, seniors, and other vulnerable populations.
“It is critical that utility companies prioritize efficiency, cost-saving measures, and alternative revenue strategies before passing costs onto consumers,” she wrote. “Please consider prioritizing the community and denying this request.”
The public comment period ends at 5 p.m. on Jan. 24. Comments can be filed here.
Skagway News publisher Gretchen Wehmhoff contributed to this story.