AELP seeks nearly 20% cumulative residential rate increase by August 2027

Peak month rates to rise 18.7%, off-peak months 19.7% in two stages, with a majority of the hike taking effect this June; meanwhile, company will undergo 450-day approval process

An Alaska Electric Light and Power Co. service truck is deployed during a storm-caused power outage on Wednesday, Sept. 17, 2025. (Mark Sabbatini / Juneau Independent)

By Mark Sabbatini

Juneau Independent

This is a developing story.

A two-step rate increase for residential customers that will total nearly 20% by August of 2027 was announced Monday by Alaska Electric Light and Power Co.

The increase is subject to state approval, meaning retroactive refunds could be issued to customers if the company’s request is rejected or modified.

The first increase in late June of this year will be about 11.5% for the off-peak months of June to October and 11.8% for the peak months of November to May, according to an AELP press release. The remaining hike taking effect in August of 2027 will result in a high total increase for off-peak rates of 19.7%, compared to a cumulative 18.7% for peak months.

The release states a residential customer using 850 kilowatt-hours a month will pay an off-peak bill of $124.73 as of August of 2027, compared to $104.16 now.

"We understand that any time rates increase like this it's hard on folks," said Alec Mesdag, AELP’s president and CEO, in an interview Monday. "And so I do want to emphasize that piece at the end of the press release, which is that we have folks who are available to try to work with customers on what they can do to reduce their bill — or if they need to, because the increase, start thinking about how they're going to make payments over time, that sort of stuff. So we do want to work with the customers. We understand that it's a meaningful impact."

AELP most recently increased rates in 2023, following a process initiated in 2022 based on "test year" rates in 2021, Mesdag said. He said "test year" rates have to be based on the company’s documented revenues and expenses from that year.

The company, in a "rate case explainer" at its website, notes that since 2021 "it has invested close to $65 million in critical upgrades and infrastructure improvements to keep Juneau’s electric system safe and reliable."

"Operating in Southeast Alaska’s rugged and isolated terrain is challenging and costly," the website notes. "These investments allow AELP to maintain one of the most reliable electric systems in the country. Every dollar spent helps ensure AELP can continue to provide stable, clean, and dependable service to the citizens of Juneau, even in harsh weather conditions."

The announcement comes at the beginning of a 450-day request process handled by the Regulatory Commission of Alaska (RCA), meaning the rate hikes are provisional and could be at least partially refunded if the state agency ultimately rejects the company’s or approves a smaller increase. Mesdag said the next regulatory step by the commission will be a public notice and comment period for the company’s requested increase.

The year-and-a-half-long review process — and extensive work required to request a rate increase — is why AELP as a regulated utility seeks larger increases at multi-year intervals rather than more gradual increases annually, Mesdag said.

"One of the other things we get asked a lot is to do small incremental increases," he said. "At other utilities in Alaska, some of the co-ops are able to do what's called a simplified rate filing. We don't have access to that."

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.