Enstar will seek 22 percent rate hike
Originally published Tuesday, September 9, 2008 at 8:26 a.m.
Updated Tuesday, September 9, 2008 at 6:36 p.m.
Digg
delicious
Facebook
Mixx
Reddit
Stumble It!ANCHORAGE -- Enstar Natural Gas Co. says it plans to raise rates for home heating by at least 22 percent in January.
The company will file its proposed new prices with the Regulatory Commission of Alaska for approval next month, Enstar spokesman Curtis Thayer said. The spike will increase a typical resident's bill from $125 to $153 a month.
Enstar serves about 128,000 homes and businesses in the state, including nearly all of Anchorage.
Enstar said its contracts with its Cook Inlet gas suppliers are based on oil prices. When the cost of oil increases, those costs are passed along. The company said it won't be profiting from the rate increase.
The company will develop payment plans or help lower-income customers apply for the Alaska Heating Assistance Program, which pays grants directly to the utility, Thayer said.
Alaska residents can also apply for the Home Energy Rebate Program through the Alaska Housing Finance Corp. Legislators gave the program $160 million this year and it allows homeowners to recoup costs from making energy efficiency improvements.
In August, the Legislature also approved a $1,200 energy rebate for each state resident to help offset increasing costs. That money is being doled out on Friday to most residents.
Still, the impact of the added costs will be felt by individuals, businesses and the government alike.
George Vakalis, assistant superintendent for support services for Anchorage public schools, said the increase will amount to about $900,000 of unbudgeted costs.
"This is a concern," said Ann Secrest, spokeswoman for AARP Alaska, which has more than 90,000 members. "You don't want an older Alaskan to have to turn off their heat and possibly put themselves in harm's way."
"People are going to start scaling back," resident John Comer said Monday outside the Home Depot in East Anchorage. "Thermostats are being turned down. Hot water temperatures are being turned down."
Community Discussion
Newsminer.com doesn't necessarily condone the comments here, nor does it review every post. Read our full user's agreement.
So much for cheap energy. I hope the various candidates are serious about diversifying our energy sources but we also need to mandate or force conservation thru higher efficiencies. If anyone still thinks we can drill baby drill to the extant necessary to continue our current consumptive habits then that person needs to educate themselves. Here's a start:
http://www.eia.doe.gov/basics/quickoil.h...
But don’t stop there, just do not use biased information.
$150 a month is still a heck of a lot less than $1200 for fuel oil.
boo hoo.
No, drilling alone will not do it. You must also encourage conservation, and develop alternative energy sources. The technology is there we need to utilize it. We do need to put the world on notice we are and will develop our resources. That will get the ball rolling then add in conservation and alternatives. This will give credence to what we are and intending to do as a nation. Now maybe Anchorage will start to feel the heat or not be able to afford it.
So how much of a ripple effect will that have on interior folks who rely on natural gas that is bought from ENSTAR?
(This comment was removed by the Newsminer.com staff. Please see our User Agreement for further information.)
When the cost of a barrel of oil goes up, everyone immediately raises their rates.... even though the cost of the barrel is for a FUTURES CONTRACT some 1-2 months down the road, not the actual cost of today's oil.
Yet, when the cost of that same barrel plunges some $40+, why the heck are we still gettin' screwed by the oil companies and resellers who aren't immediately reducing their prices?? Guess what... they use the excuse that the oil that's "in the system now" cost them more to buy. So, until that higher priced oil is used up, the cost remains high.
Wait a minute.... so lemme get this straight....
They raise the price immediately to justify the future cost of the oil, but they don't stockpile the profits for that future cost and expect us to pay for it indefinitely???
((Where's my Enstar Lube??))
Anyone notice oil is down to $103 and now the oil producing countries have decided to cut production to keep the price up. Let's see how the Democrats justify letting foreign countries control oil in the US.
Notice the rate increase happens just as the energy rebate comes out.
The number one reason why heating oil and gas prices in Alaska hasn't dropped, is just that... They all want your energy rebate.
I would think if you have inexpensive natural gas you are not only heating your house with it, you are cooking your food, heating your hot water tank, and drying your cloths with natural gas. Those are all your highest energy users. Easy, easy on the electric bill. Their grievance of an average $28.00 rate increase per month for natural gas is falling on deaf ears here.
This is so shocking. The comparative cost to our heating oil will skyrocket from the current $1.08 per gallon to $1.30 per gallon. What are they going to do? I better send them by energy rebate so they can make it through the winter.
GVEA will raise Fairbanks rates again - our electricity comes from Anchorage gas fired plants via the intertie - previous "fuel adjusted" increases were just a "story"
Although I do not subscribe to the fine Alaskan tradition of the "he got something I didn't whine" it was illuminating to see all the whining, sniveling, and gnashing of teeth when this article came out in the Anchorage Daily News yesterday. (Where one can often read tomorrows News Miner today, heh heh) So now it is only three times more expensive to heat here. (note lack of sympathy)
What is noteable, is that Enstar has to go through the RCA since they are a regulated utility. Of course an absloute monopoly is not a regulated utility. Regulating heating oil though would probably not help, since the government here never met a foreign or lower-48 carpetbagger they wouldn't suck up to, and the RCA never denies a rate increase for anything. And they especially would not deny an increase to the state for the price of the royalty crude our heating oil comes from.
As others have pointed out, the timing in relationship to the near presence of winter, and the disbursement of the 1200 bucks is interesting. In dealing with the problem this way, that loveable gang of misfits in the legislature have told the energy companies and the DNR to charge whatever they want, as there will be no consequences.
As to the rising and falling of crude vs product, and the "work its way out of the system" argument. Note how quickly we were almost out of gasoline when Flint Hills had their mysterious "operational issue". Evidently things work their way through the system far faster than product price drops after crude price drops would indicate.
Post a comment
Commenting requires registration.