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RCA approves part of Arrow Refuse's changes

Posted: April 2, 2012 - 11:05pm

The Regulatory Commission of Alaska has tentatively approved part of Alaska Pacific Environmental Services’ plans, allowing the company to start using automated bins.

“We allow Alaska Pacific Environmental Services (APES) to transition to roll cart garbage service as proposed ..., while we investigate the regulatory treatment of container rental charges and the impacts on consumer rates, and revenues for (APES),” RCA’s commission wrote in a filing on Friday. “We also extend time for (APES) to file a cost of service study and revenue requirement study until September 15, 2014, and we require the use of a 2013 test year.”

One of the remaining issues between RCA and APES — which does business in Juneau as Arrow Refuse — is the rates charged for usage of the containers. Alaska Pacific has offered to cap its container charges.

“(APES) asserts that the public will not be harmed as its proposed rates for service plus the containers are essentially the same as its current tariffed service rates,” the commission states. “In the Supplement, (APES) proposed to cap the monthly costs of a 96-gallon cart at $2.95 and the cost of a 48-gallon cart at $2.75. (APES) confirmed that if it is allowed to provide the service proposed in TA18-653 it will do so at the reduced garbage service rates and also subject to the rate cap for the roll carts.”

The Attorney General has been involved in the process and the commission attributes the Attorney General saying the rates should be cost-based.

“The AG requests that we establish a procedural schedule to resolve whether the roll cart rental proposed by (APES) is regulated or non-regulated,” the commission states. “While we are addressing this issue, the AG explicitly does not oppose allowing (the automated system) to go into effect as proposed by (APES) nor does the AG oppose extending the time for the next rate case as requested by (APES) ...”

The company will be working out a hearing procedure schedule, which must end June 22. A preconference hearing will take place April 10 to set that schedule.

• Contact reporter Sarah Day at 523-2279 or at sarah.day@juneauempire.com.

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