1 STATE OF ALASKA 2 THE REGULATORY COMMISSION OF ALASKA 3 Before Commissioners: Stephen McAlpine, Chairman Paul F. Lisankie Robert M. Pickett Antony Scott Janis W. Wilson 4 5 6 7 8 In the Matter of the Investigation into the Impact of the Tax Cuts and Jobs Act of 2017 on the Revenue Requirement and Rates of ALASKA ELECTRIC LIGHT & POWER COMPANY 9 ) ) ) ) ) U-18-039 10 STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING 11 This stipulation (“Stipulation”) is by and between Alaska Electric Light and 12 Power Company (“AELP”) and the Office of the Attorney General, Regulatory Affairs & Public 13 Advocacy Section (“RAPA”). AELP and RAPA (together the “Parties”) are the only parties to 14 this docket. This Stipulation is submitted for acceptance by the Regulatory Commission of 15 Alaska (“Commission”) pursuant to AS 42.05.191, 3 AAC 48.090(d)(2), and 3 AAC 48.166. 16 17 By this Stipulation, the Parties propose to resolve all issues in this docket between the Parties. If accepted, the Stipulation will result in (1) a reduction to AELP’s current firm 18 19 20 21 22 service base rates of approximately $2.4 million per year, or 6.73 percent, effective for bills rendered on or after August 1, 2018, for income tax expense reductions associated with the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”)1; and (2) partial refunds of base rates charged from January 1, 2018. 23 24 25 1 26 Pub. L. No. 115-97, 131 Stat. 2054. June 15, 2018 Page 1 of 10 1 The Parties request that the Commission issue its decision regarding this 2 Stipulation within 30 days2 (by July 15, 2018). To allow the Parties to avoid the potentially 3 unnecessary cost and burden of preparing for and participating in a hearing regarding interim and 4 5 6 refundable rates while the Commission’s decision regarding this Stipulation is pending, the Parties request that the Commission vacate the show cause hearing that is currently scheduled to convene on June 19, 2018. 7 8 I. BACKGROUND. AELP’s current base rates went into effect on a permanent basis seven months 9 10 ago on November 15, 2017, in its most recent general rate case (Docket U-16-086).3 Those 11 permanent rates resulted from a 3.86 percent across-the-board increase to AELP’s previous 12 permanent firm service base rates. 13 On December 22, 2017, approximately one month after AELP’s current base rates 14 went into effect, the 2017 Tax Act was signed into law. The 2017 Tax Act includes provisions 15 reducing the effective federal corporate income tax rate from a maximum of 35 percent to a flat 16 17 18 19 rate of 21 percent effective January 1, 2018.4 On February 12, 2018, RAPA filed a petition to open an investigation into the impact of the 2017 Tax Act on utility and pipeline carrier revenue requirements. On March 23, 2018, the Commission issued letters informing AELP (and other 20 21 22 investor owned utilities) that the Commission had opened Docket I-18-002 to develop 2 See 3 AAC 48.166 (stating in part, “The commission will rule on a stipulation within 30 days after it is filed with the commission, unless that time is extended for good cause.”). 23 3 See Order No. U-16-086(6) (Nov. 15, 2017). 24 4 See Order No. U-18-039(1) (Jun. 5, 2018) at 1. 25 26 STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 2 of 10 1 information regarding the impacts of the 2017 Tax Act and requesting information about the 2 estimated impacts of that act on AELP. On April 6, 2018, AELP filed its response to the 3 Commission in Docket I-18-002. AELP informed the Commission of the estimated impacts of 4 5 6 the 2017 Tax Act on AELP’s revenue requirement, AELP’s plans to voluntarily ensure that the benefits of the tax cut would be reflected in customers’ rates, and the accounting actions AELP had taken beginning in January 2018 to record estimated cost reductions resulting from the tax 7 8 rate change. On May 4, 2018, the Commission issued Letter Order No. L1800195. In that 9 10 letter order, the Commission stated its appreciation for AELP voluntarily capturing the estimated 11 reduction in federal income tax in a deferral account since January 2018 and required AELP to 12 file a confirmation that it will continue to defer those amounts and state the deferred amounts. 13 On May 22, 2018, AELP responded to Letter Order No. L1800195, stating the amount of the 14 deferral as of April 30, 2018, and the formula used to calculate the deferral. 15 16 17 18 19 20 21 On June 5, 2018, the Commission issued Order No. U-18-039(1). In that order, the Commission initiated an investigation of “the impacts of the 2017 Tax Act on AELP’s revenue requirement and rates” and scheduling a hearing “where AEL&P is invited to show cause why a portion of its revenue in an amount equal to the estimated impact on AEL&P of the 2017 Tax Act should not be declared interim and refundable.”5 On June 6, 2018, RAPA filed its election to participate as a party in this docket. 22 23 24 25 26 5 Order No. U-18-039(1) at 3. STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 3 of 10 1 II. RESOLUTION OF ISSUES. 2 The Parties agree as follows: 3 A. 4 5 6 7 8 9 10 Rate Reduction. Effective for bills rendered on or after August 1, 2018, AELP’s firm service base rates (customer, demand, and energy charges) shall be reduced on a permanent basis by 6.73 percent and applied as an across-the-board rate decrease. As shown on Exhibit 1,6 that rate decrease reflects a reduction of $2,401,0447 to the annual revenue requirement from AELP’s last general rate case (Docket U-16-086), which was the basis for AELP’s current base rates that went into effect on November 15, 2017. Exhibit 2 shows Schedule 8 (Federal and State Income 11 Tax Provision) of AELP’s most recent revenue requirement study, as revised to calculate the 12 provision for income taxes under the 21 percent federal income tax rate set forth in the 2017 Tax 13 Act. Exhibit 3 shows AELP’s current base rates, the proposed base rates resulting from this 14 Stipulation, and the difference between those rates.8 Exhibit 4 provides proposed tariff sheets 15 reflecting the stipulated rate reductions. 16 17 18 19 20 21 22 23 24 25 26 6 The 2017 Tax Law adjustments shown on Exhibit 1 do not include any adjustments for cash working capital because AELP’s revenue requirement in Docket U-16-086, and thus AELP’s current base rates, did not include any cash working capital allowance for the provision for income taxes. 7 This amount is less than the $3.9 million potential revenue requirement reduction referenced in Order No. U-18-039(1), which was based on a simple annualizing of the $1.3 million of tax expense that AELP deferred in January through April 2018. That annualization overstated the revenue requirement reduction primarily due to the fact that AELP is a winter-peaking electric system and has seasonal rates that are greater during winter months (i.e. demand and energy charges and consumption are higher in the winter.). 8 Some of the percentage change values calculated on Exhibit 3 vary slightly from -6.73 percent due to rounding of the proposed rates. STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 4 of 10 1 As was the case in ENSTAR Natural Gas Company’s (“ENSTAR’s”) 2017 Tax 2 Act rate reduction,9 which was approved in Letter Order No. L1800240,10 any impacts on 3 AELP’s deferred income taxes will be addressed in AELP’s next rate case, which will be filed by 4 August 30, 2021.11 5 B. 6 Refunds. AELP shall issue refunds to firm service customers for bills rendered from 7 8 January 1, 2018, through July 31, 2018 (“Refund Period”), as follows: 1. 9 10 AELP shall calculate the amount each customer would have been billed for base rates had the rates shown in Exhibit 3 been in effect during the Refund Period. The total 11 refund amount due to each firm service customer shall be the sum of (1) the difference between 12 the base rates actually billed during the Refund Period and what would have been billed under 13 the Exhibit 3 rates; and for customers that are not exempt from sales tax (2) the City and 14 Borough of Juneau sales tax rate during the Refund Period multiplied by the amount calculated 15 in (1). No interest shall be paid on the refunds. 16 17 18 19 20 21 2. The total refund amount due shall be calculated for each firm service customer account. For active customer accounts, the total refund amount shall be credited to their accounts. For inactive customer accounts, the refund shall be applied first to any outstanding account balance that is due to AELP. Any credit balances remaining shall be 9 22 See ENSTAR TA303-4 (Apr. 26, 2018) at 2 n.2 (“As noted in ENSTAR’s letter to the Commission in Docket I-18-002 dated April 6, 2018, ENSTAR will address any impact on its deferred taxes in its next rate case.”). 23 10 Letter Order No. L1800240 (May 29, 2018). 24 11 Order No. U-16-086(6) Appendix at 5. 25 26 STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 5 of 10 1 refunded by check mailed to the customer’s last known address in AELP’s records. If a check is 2 unclaimed, the funds shall be considered abandoned in accordance with AS 34.45.190. In such 3 event, AELP shall comply with AS 34.45.280—.340 regarding the reporting and disposition of 4 personal property to the State of Alaska. 5 6 3. All refunds shall be completed by August 30, 2018. AELP shall file a notice with the Commission upon completion of disbursement of the refunds. 7 8 III. Evidentiary support for this Stipulation is provided by AELP’s filed responses in 9 10 11 EVIDENTIARY SUPPORT FOR STIPULATION. Docket I-18-002, this Stipulation, and its supporting exhibits. IV. THE PUBLIC INTEREST. 12 Under AS 42.05.191, “the commission may, without a hearing, issue an order 13 approving any settlement supported by all the parties of record in a proceeding, including a 14 compromise settlement.” Under 3 AAC 48.166, parties “may stipulate among themselves to the 15 disposition of a proceeding or to the disposition of outstanding issues in a proceeding” and “the 16 17 18 19 20 21 parties are bound by the terms of the stipulation if the commission accepts it.” Under 3 AAC 48.090(d)(2), a “proceeding may be terminated by filing a stipulation agreed to by all parties of record provided the commission does not find that the public interest requires the proceeding to continue.” In light of these standards, the Parties agree that the public interest does not 22 require this proceeding to continue and that acceptance of this Stipulation is in the public 23 interest. Specifically, the Parties agree: 24 25 26 STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 6 of 10 A. 1 2 reduction for AELP’s firm service customers. 3 4 5 Acceptance of this Stipulation will facilitate a prompt 6.73 percent base rate B. Acceptance of this Stipulation will facilitate AELP’s voluntary refund of a portion of the rates charged from January 1, 2018, through July 31, 2018, to expand the customer benefits of the 6.73 percent base rate reduction retroactively to January 1, 2018. 6 C. Acceptance of this Stipulation will conserve valuable resources of the Parties, 7 8 9 including the expenditure of time and funds that would otherwise be required for prefiled testimony, discovery, and an evidentiary hearing in this docket. D. 10 11 litigation. 12 E. Acceptance of this Stipulation will allow the Parties to avoid the uncertainty of Acceptance of this Stipulation will conserve Commission resources by allowing it 13 to avoid conducting hearings in this docket; adjudicating any disputed facts, policy, or law; and 14 stating and supporting its findings and conclusions in a written order. 15 16 17 18 19 F. determinations that settlements should be encouraged, and litigation should be avoided when possible.12 V. 22 23 24 25 26 GENERAL CONDITIONS. A. 20 21 Acceptance of this Stipulation is consistent with the Commission’s prior The stipulated provisions set forth in Section II represent compromises among the Parties regarding substantive disputes at issue in this proceeding for the sole purpose of resolving 12 See Order No. P-11-014(1) (ENSTAR Complaint v. KNPL) (Aug. 19, 2011) at 3; Order No. P-09-014(2) (KKPL Rate Case) (Feb. 5, 2010) at 4-5; Order No. U-06-134(15) (Chugach Rate Case) (Aug. 9, 2007) at 5; Order No. P-03-012(21) (KKPL Rate Case) (May 25, 2005) at 7; Order No. U-05-020(7) (Agrium Complaint v. CIGGS) (Jun. 24, 2005) at 3; Order No. P-91-002(26) (KPL Rate Case) (Jun. 3, 1994) at 2. STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 7 of 10 1 those issues. Except as otherwise expressly provided herein, this Stipulation is binding on the 2 Parties for the purposes of this docket only; it shall have no precedential effect; and it shall not 3 be cited, offered, or admitted in any other proceeding as substantive evidence. 4 5 6 B. The validity and enforceability of the agreements contained in this Stipulation are conditioned on the Commission’s acceptance of this Stipulation in its entirety and without the imposition of additional conditions. If the Commission does not accept this Stipulation in its 7 8 entirety or imposes additional conditions, any Party may withdraw from this Stipulation. C. 9 10 If any Party withdraws from this Stipulation pursuant to Subsection V.B above, the Parties reserve the right to present evidence to support all of their positions at a public 11 hearing as if this Stipulation had not been entered into. If this occurs, this Stipulation may not be 12 entered into evidence, and no Party may use this Stipulation or any part of it in this or any other 13 proceeding. 14 15 16 17 18 19 20 21 D. Nothing in this Stipulation is intended to, or shall, limit the Commission’s powers as conferred by statute or bind the Commission in future proceedings to any position it accepts in this Stipulation. VI. CONCLUSION. The Parties request that the Commission accept this Stipulation in its entirety. As provided for in 3 AAC 48.166, the Parties request that the Commission issue its decision regarding this Stipulation within 30 days. To allow the Parties to avoid the potentially 22 unnecessary cost and burden of preparing for and participating in a hearing regarding interim and 23 refundable rates while the Commission’s decision regarding this Stipulation is pending, the 24 25 26 STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 8 of 10 1 Parties request that the Commission vacate the show cause hearing that is currently scheduled to 2 convene on June 19, 2018. 3 4 5 6 7 8 9 RESPECTFULLY SUBMITTED this 15th day of June, 2018. KEMPPEL, HUFFMAN AND ELLIS, P.C. Attorneys for Alaska Electric Light and Power Company By: /s/ Dean D. Thompson Dean D. Thompson, ABA 9810049 255 E. Fireweed Lane, Suite 200 Anchorage, Alaska 99503 Tel: (907) 277-1604 Facsimile: (907) 276-2493 E-mail: ddt@khe.com 10 11 12 13 14 15 16 17 JAHNA LINDEMUTH ATTORNEY GENERAL By: /s/ Jeffery J. Waller Jeffrey J. Waller, ABA 0703005 Senior Assistant Attorney General Office of the Attorney General 1031 West 4th Avenue, Suite 200 Anchorage, Alaska 99501 Tel: (907) 269-5187 Facsimile: (907) 276-3697 E-mail: jeff.waller@alaska.gov 18 19 20 21 22 23 24 25 26 STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 9 of 10 1 CERTIFICATE OF SERVICE 2 I hereby certify that on June 15, 2018, a copy of the foregoing document was served on the following persons by electronic means authorized by the Regulatory Commission of Alaska. 3 4 KEMPPEL, HUFFMAN AND ELLIS, P.C. By: /s/ Tina M. Torrey Tina M. Torrey, Legal Assistant 5 6 RAPA: 7 8 Jeffrey J. Waller jeff.waller@alaska.gov 9 10 11 12 13 14 A PR O FES SI ONA L CO R PO RAT I O N 255 E. FI RE WEE D LA NE, SU IT E 200 ANC HORAGE , ALA SKA 99503- 2025 (907) 277- 1604 LAW O F FI CES OF 15 16 17 18 19 20 21 22 23 24 25 26 STIPULATION FOR RATE REDUCTIONS AND REFUNDS, AND REQUEST TO VACATE SHOW CAUSE HEARING Docket U-18-039 June 15, 2018 Page 10 of 10 Exhibit 1 Stipulation U-18-039 Alaska Electric Light and Power Company Revenue Requirement Study Test Year Ending December 31, 2015 REVENUE REQUIREMENT SUMMARY AS ADJUSTED FOR 2017 TAX ACT Line No. 1 2 3 4 5 6 7 8 16 17 18 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 Description Operating Revenues: Electric Power Sales-Firm Electric Power Sales-Interruptible & Hatchery Cost of Power Adjustment Other Total Operating Revenues U-16-086 U-16-086 As approved 2017 Tax Law Adjustments Adjusted for 2017 Tax Law $34,351,132 9,732,265 0 497,554 $44,580,951 $0 $34,351,132 9,732,265 0 497,554 $44,580,951 $18,508,911 $0 $18,508,911 Maintenance Expenses: Total Maintenance Expenses $3,259,361 $0 $3,259,361 Depreciation Expenses $5,477,784 $5,477,784 Taxes - General $1,061,396 $1,061,396 $28,307,452 $28,307,452 Operation Expenses: Total Operation Expenses Total Operating Expenses State Income Taxes Federal Income Taxes Total State and Federal Income Taxes RATEBASE: Electric Utility Plant in Service Less Accum. Depreciation Unamortized Overhauls & Other Deferrals Working Capital Less Customer Deposits Less Deferred Taxes Net Rate Base (Average) Rate of Return $1,338,283 4,451,944 $5,790,227 $225,959,246 (93,427,651) 2,366,009 5,313,701 (179,456) (17,002,740) $123,029,110 $10,956,362 Total Revenue Requirement $45,054,042 Revenue Subject to Rate Increase Rate Increase Indicated $0 8.91% Return Allowance Less Proforma Test Year Firm Revenues Less Greens Creek revenue Less Other revenues Less Contract Hatchery Revenues Less Dual Fuel Margins Retained Revenue Deficiency ($224,953) (2,176,092) ($2,401,044) ($34,351,132) (8,715,173) (497,554) (72,851) (89,742) $1,327,590 $34,351,132 3.86% $1,113,330 2,275,853 $3,389,183 $225,959,246 (93,427,651) 2,366,009 5,313,701 (179,456) (17,002,740) $123,029,110 8.91% $10,956,362 ($2,401,044) $42,652,997 ($2,401,044) ($34,351,132) (8,715,173) (497,554) (72,851) (89,742) ($1,073,455) 34,351,132 -3.12% Firm Revenues, U-16-086 filing Revenues from approved U-16-086 increase (U-16-086(6)) Firm Revenues after U-16-086 3.86% increase $34,351,132 1,327,590 $35,678,722 Reduction in Income tax expenses ($2,401,044) Rate reduction to apply to existing firm rates -6.73% Exhibit 1 Page 1 of 1 Exhibit 2 Stipulation U-18-039 Alaska Electric Light and Power Company Revenue Requirement Study Test Year Ending December 31, 2015 AS ADJUSTED FOR 2017 TAX ACT SCHEDULE 8 3 AAC 48.275(a)(8) FEDERAL AND STATE INCOME TAX PROVISION -- Federal Income Tax at 21% Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Description NET INCOME AFTER TAXES: (RATE BASE X WEIGHTED EQUITY) 13-MONTH RATE BASE: (Sch. 9) WEIGHTED EQUITY: (Sch. 12) Amount $8,553,611 $123,029,110 6.95% COMPUTATION OF TAXES: INCOME BEFORE TAX: 11,950,724 STATE INCOME TAX $10,830 + 9.4% X (INCOME BEFORE TAX - $222,000) FEDERAL INCOME TAX (INCOME BEFORE TAX - STATE TAX) at 21% to reflect 2017 Tax Cuts and Jobs Act TOTAL INCOME TAX PROVISION 1,113,330 2,275,853 3,389,183 FEDERAL AND STATE INCOME TAX PROVISION -- Federal Income Tax at 35% Description NET INCOME AFTER TAXES: (RATE BASE X WEIGHTED EQUITY) 13-MONTH RATE BASE: (Sch. 9) WEIGHTED EQUITY: (Sch. 12) Amount $8,553,611 $123,029,110 6.95% COMPUTATION OF TAXES: INCOME BEFORE TAX: 14,343,838 STATE INCOME TAX $10,830 + 9.4% X (INCOME BEFORE TAX - $222,000) FEDERAL INCOME TAX (INCOME BEFORE TAX - STATE TAX) at 34% for first $10,000,000 and 35% for amount > $10,000,000 TOTAL INCOME TAX PROVISION Tax Provision Difference 1,338,283 4,451,944 5,790,227 2,401,044 Exhibit 2 Page 1 of 1 Exhibit 3 10.86 6.91 93 Electric Vehicle Rate - Commercial Energy charge, cents per KWH 94 Electric Vehicle Equipment Rental Monthly Unit Charge, $ per Month 6.02 93 Electric Vehicle Rate - Residential Energy charge, cents per KWH 103.07 6.35 14.85 24 Large Commercial Customer charge, $ per month Energy charge, cents per KWH Demand charge, $ per KW 11.39 5.32 10.29 28.21 6.91 13.22 20D Small Commercial with demand Customer charge, $ per month Energy charge, cents per KWH Demand charge, $ per KW 92 Residential Heat Pump Service Customer charge, $ per month Energy charge, cents per KWH Demand charge, $ per KW 19.53 12.02 20 Small Commercial Customer charge, $ per month Energy charge, cents per KWH 8.13 15.19 27.13 7.90 11.93 6.02 11.54 10D Residential with demand Customer charge, $ per month Energy charge, cents per KWH Demand charge, $ per KW 91 Off-Peak Service Resid. Customer charge, $ per month Sm. Comm. Customer charge, $ per month Lg. Comm. Customer charge, $ per month Energy charge, cents per KWH 9.22 12.40 RATE DESCRIPTON 10 Residential Customer charge, $ per month Energy charge, cents per KWH 10.86 6.12 5.26 11.39 4.82 6.28 8.13 15.19 27.13 7.90 103.07 5.95 9.46 28.21 6.12 8.85 19.53 9.56 11.93 5.26 6.98 9.22 10.20 EXISTING RATES WINTER SUMMER 10.13 6.44 5.61 10.62 4.96 9.60 7.58 14.17 25.30 7.37 96.13 5.92 13.85 26.31 6.44 12.33 18.22 11.21 11.13 5.61 10.76 8.60 11.57 10.13 5.71 4.91 10.62 4.50 5.86 7.58 14.17 25.30 7.37 96.13 5.55 8.82 26.31 5.71 8.25 18.22 8.92 11.13 4.91 6.51 8.60 9.51 PROPOSED RATES WINTER SUMMER Stipulation U-18-039 Alaska Electric Light and Power Company Revenue Requirement Study Test Year Ending December 31, 2015 SUMMARY OF EXISTING RATES (U-16-086(6)) COMPARED WITH PROPOSED RATES (U-18-039) Exhibit 3 Page 1 of 1 (0.73) (0.47) (0.41) (0.77) (0.36) (0.69) (0.55) (1.02) (1.83) (0.53) (6.94) (0.43) (1.00) (1.90) (0.47) (0.89) (1.31) (0.81) (0.80) (0.41) (0.78) (0.62) (0.83) (0.73) (0.41) (0.35) (0.77) (0.32) (0.42) (0.55) (1.02) (1.83) (0.53) (6.94) (0.40) (0.64) (1.90) (0.41) (0.60) (1.31) (0.64) (0.80) (0.35) (0.47) (0.62) (0.69) ABSOLUTE $ CHANGE WINTER SUMMER -6.72% -6.80% -6.81% -6.76% -6.77% -6.71% -6.77% -6.71% -6.75% -6.71% -6.73% -6.77% -6.73% -6.74% -6.80% -6.73% -6.71% -6.74% -6.71% -6.81% -6.76% -6.72% -6.69% -6.72% -6.70% -6.65% -6.76% -6.64% -6.69% -6.77% -6.71% -6.75% -6.71% -6.73% -6.72% -6.77% -6.74% -6.70% -6.78% -6.71% -6.69% -6.71% -6.65% -6.73% -6.72% -6.76% PERCENTAGE CHANGE WINTER SUMMER SCHEDULE 4 3 AAC 48.275(a)(5) Exhibit 4 (The attached tariff Sheets are not numbered.) RCA No. 1 14th Sheet No. 104 13th Sheet No. 104 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 10 General Residential Applicable to: Residential service in individual private dwellings, farms, apartments and common area facilities of duplexes, triplexes and fourplexes subject to the established rules of the Company. This rate shall not apply to commercial establishments, schools, churches, governmental agencies, institutions, rooming houses, office or studio space, or like uses. Prior approval is to be obtained before installation of any motor rated 3 horsepower or more. Character of Service: Continuous - alternating current 60 cycle 120/240 or 120/208 volts single phase. Characteristics depend upon available circuits. Rate: Per Month Peak Season (November through May) $ 8.60 Customer Charge Energy Charge, per kilowatt-hour Off-Peak Season (June through October) $ 8.60 11.57¢ 9.51¢ Demand Metering: Pursuant to Order No. U-18-039(__) Tariff Advice No. By R I Any customer qualifying for this rate schedule may request a demand meter and be billed according to the alternate schedule which follows. In the event a customer consumes more than 5,000 KWH per month for three consecutive months or a recorded peak demand of 20 KW for three consecutive months, the Company may install a demand meter and bill indefinitely according to the following schedule: Issued by R Effective August 1, 2018 Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager RCA No. 1 12th Sheet No. 105 11th Sheet No. 105 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 10 (Continued) General Residential Demand Metering (Continued): Rate: Per Month Peak Season (November through May) Customer Charge $11.13 Demand Charge, per kilowatt $10.76 Energy Charge, per kilowatt-hour 5.61¢ Off-Peak Season (June through October) $11.13 R $ 6.51 R 4.91¢ R Special Provisions: a. Commercial Use When a customer operates a commercial establishment (incidental to his residence) in the same building or on the same premises as his residence and takes his entire service through one meter, this rate schedule will apply for the entire service only if less than 25% of the energy, demand, or square footage of the premise is used for commercial purposes. If the reverse is true, the appropriate commercial service rate schedule will apply to the entire service. However, the customer may elect to take service under both the residential and commercial service rates, in which case there will be a separate meter for the residential portion and a separate meter for the commercial portion. b. Customer Charge The customer charge shall be billed per billing period or any fraction thereof. Pursuant to Order No. U-18-039(__) Tariff Advice No. Issued by By Effective August 1, 2018 Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager RCA No. 1 13th Sheet No. 113 12th Sheet No. 113 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 20 Small Commercial Applicable to: Small commercial not exceeding 49.9 kilowatts of electrical demand subject to the established rules of the Company. This rate shall apply to commercial establishments, schools, churches, governmental agencies, institutions, rooming houses, office or studio space, common area facilities of rental units exclusive of duplexes, triplexes and fourplexes or like uses. Prior approval is to be obtained before installation of any motor rated 3 horsepower or more. Character of Service: Continuous - alternating current 60 cycle 120/240, 120/208, 240, 480 volts, single or three phase. Characteristics depend upon available circuits. Rate: Per Month Peak Season (November Off-Peak Season June through May) through October) $18.22 $18.22 R Customer Charge Energy Charge, per kilowatt-hour 11.21¢ 8.92¢ R Demand Metering: Customers requesting new service whereby electricity is used as the primary heat source, and with valid building permits issued on or after July 13, 1985, must have a demand meter installed and will be billed in accordance with the demand rate schedule. Any customer qualifying for this rate schedule may request a demand meter and be billed according to the alternate schedule which follows. In the event a customer consumes more than 5,000 KWH per month for three consecutive months or a recorded peak demand of 20 KW for three consecutive months, the Company may install a demand meter and bill indefinitely according to the following schedule: Pursuant to Order No. U-18-039(__) Effective August 1, 2018 Tariff Advice No. Issued by By Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager RCA No. 1 13th Sheet No. 114 12th Sheet No. 114 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 20 (Continued) Small Commercial Demand Metering: Rate: Per Month Customer Charge Demand Charge, per kilowatt Energy Charge, per kilowatt-hour Peak Season (November through May) $26.31 Off-Peak Season (June through October) R $26.31 $12.33 6.44¢ $ 8.25 R 5.71¢ R Minimum Charge: $1.26 per month per KVA of connected load but not less than the monthly customer charge per meter unless a higher minimum charge applies in accordance with the General rules and Regulations. Special Provisions: a. Standby Service Whenever service is supplied for standby, the charge shall be $1.26 per KVA of connected load. Electric energy sold under this provision shall be billed at the applicable rate in addition to the standby charge. The term under this provision shall not be less than one year. b. Metered Lighting This schedule shall also apply to public street and highway signal lighting and outside or area lighting not meeting the requirements of Dusk to Dawn Lighting. c. Customer Charge The customer charge shall be billed per billing period or any fraction thereof. Pursuant to Order No. U-18-039(__) Tariff Advice No. Issued by By Effective August 1, 2018 Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager RCA No. 1 12th Sheet No. 119 11th Sheet No. 119 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 24 Large Commercial, with Demand Metering Applicable to: Large commercial including lighting, heating and power; except for customers qualifying under Rate Schedule 22. Demand shall exceed 50 KW per month subject to the established rules of the Company. This rate shall apply to commercial establishments, schools, churches, governmental agencies, institutions, rooming houses, office or studio space, or like uses. Prior approval is to be obtained before installation of any motor rated 25 horsepower or more. Character of Service: Continuous - alternating current 60 cycle; 120/208, 120/240, 208, 240, 480, 2400, 4160, 7200, 12460 volts, single or three phase. Characteristics depend upon available circuits. Rate: Per Month Customer Charge Demand Charge, per kilowatt Energy Charge, per kilowatt-hour Peak Season (November through May) $96.13 Off-Peak Season (June through October) $96.13 R $13.85 $ 8.82 R 5.92¢ 5.55¢ R Minimum Charge: The minimum monthly bill for service under this rate schedule shall be $1.26 per month per KVA of installed transformer capacity or connected load, but not less than the customer charge of $96.13 per month per meter unless a higher minimum applies in accordance with the General Rules and Regulations. Pursuant to Order No. U-18-039(__) Tariff Advice No. Issued by By Effective August 1, 2018 Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager I RCA No. 1 12th Sheet No. 132 11th Sheet No. 132 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 46 Dusk to Dawn Lighting Applicable to: Outside street and yard lighting for governmental agencies, municipalities, private residences, farms and businesses for dusk to dawn lighting with lights mounted on existing poles with bracket attachments and connected to existing overhead secondary circuits. Rate: Per Year 100 150 175 200 250 400 1000 Watt, Watt, Watt, Watt, Watt, Watt, Watt, per per per per per per per light light light light light light light $115.96 $173.87 $202.88 $231.78 $270.94 $357.81 $711.82 R R Presently connected filament lights will be billed at 1.44¢ per connected watt per month. Minimum Charge: The minimum charge shall be the same as the rate per year. Special Provisions: a. Monthly Billing Charges for annual use will be billed monthly in 12 equal installments. b. Less than 1 year use - Lamps disconnected within 12 months after installation will be billed for the remaining unused months upon disconnection. c. Lamp replacements - Lamp replacements will be made by the Company without additional charge. Outages shall be promptly reported to the Company. Pursuant to Order No. U-18-039(__) Tariff Advice No. Issued by By Effective August 1, 2018 Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager RCA No. 1 14th Sheet No. 135 13th Sheet No. 135 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 91 Off-Peak Service Rate: Per Month Customer Charge: Rate 10 Rate 20 Rate 24 - $ 7.58 $14.17 $25.30 Energy Charge, per kilowatt-hour I R 7.37 cents Special Provisions: a. The customer is responsible for any special wiring required which may differ as specified by the Company. The Company will furnish a meter and/or time switch as required. b. The customer charge shall be billed per billing period or any fraction thereof. Cost of Power Adjustment: A surcharge or credit as shown in Schedule No. 98 may be applied to each billing for service rendered under this schedule. Pursuant to Order No. U-18-039(__) Tariff Advice No. Issued by By Effective August 1, 2018 Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager R R R RCA No. 1 14th Sheet No. 136 13th Sheet No. 136 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 92 Residential Heat Pump Service Applicable to: Residential service in individual private dwellings, farms, apartments, and common area facilities of duplexes, tri-plexes, and four-plexes where the exclusive use of electricity for space heating is for a heat pump. The design and installation of electrical equipment shall comply with requirements established by the Company, subject to the established rules of the Company. This rate shall not apply to commercial establishments, schools, churches, governmental agencies, institutions, rooming houses, office or studio space, or like uses. Prior approval is to be obtained before installation of any motor rated 3 horsepower or more. Heat pumps qualifying for this rate must have a Coefficient of Performance (COP) rating of 3.5 or greater on the heating cycle and shall not include supplemental electric resistant heat as part of the heat pump system. Character of Service: Continuous-alternating current 60 cycle 120/240 or 120/208 volts single phase. Characteristics depend on available circuits. Rate: Per Month Peak Season (November through May) Customer Charge $10.62 Demand Charge, per kilowatt $ 9.60 Energy Charge, per kilowatt-hour 4.96¢ Off-Peak Season (June through October) $10.62 R $ 5.86 R 4.50¢ R Special Provisions: a. The customer is responsible for any special wiring required which may differ as specified by the Company. The Company will furnish a demand meter as required. Pursuant to Order No. U-18-039(__) Tariff Advice No. Issued by By Effective August 1, 2018 Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager RCA No. 1 5th Sheet No. 140 4th Sheet No. 140 Canceling Regulatory Commission of Alaska Alaska Electric Light and Power Company Schedule No. 94 Electric Vehicle Supply Equipment Applicable to: This schedule is available to residential and small commercial customers who own a battery electric automobile or extended range electric automobile (collectively “electric vehicle”) which uses one or more electric motors as the sole mechanism for delivering power to the vehicle drivetrain. Vehicles classified as motorcycles are not eligible. To be eligible, the electric vehicle must be licensed to operate on the public road system and must have an initial battery capacity of at least 16 kilowatthours. Service under this schedule applies to electric vehicle supply equipment (“EVSE”). Character of Service: Continuous-alternating current 60 cycle, 240 or 208 volts, single phase. Characteristics depend on available circuits. Rate: Per month EVSE $10.13 R Special Provisions: a. The EVSE provided under this rate shall consist of either: 1) an assembly consisting a Level II charging station pre-wired to a meter base, or 2) a Level II charging station with an integrated meter. b. The EVSE shall be energized via a NEMA 14-50 plug and shall deliver charge to the electric vehicle via a SAE J1772 connector. c. The Company shall provide, install, own, and maintain the meter for the electric vehicle circuit. All energy delivered by the EVSE shall be billed according to Rate 93 on Sheet No. 138. d. Customer shall provide, install, own, and maintain a supply circuit with NEMA 14-50R receptacle. Customer’s circuit and receptacle must comply with all applicable federal, state, and local codes and requirements, as well as meet Company installation requirements. Customer is responsible for all customer-owned equipment upon termination of service. e. Customer shall provide mounting hardware for EVSE per Company installation requirements. Pursuant to Order No. U-18-039(__) Tariff Advice No. Issued by By Effective August 1, 2018 Alaska Electric Light and Power Company /s/ Connie Hulbert Title General Manager