Story last updated at 10/7/2008 - 9:38 am
Audit concludes AEL&P didn't overcharge Juneau ratepayers
Firm finds increase in electricity rates only covered cost of fuel
Alaska Electric Light & Power Co. didn't profit from high rates in the electricity-cost crisis earlier this year, according to an independent auditor.
"My hope is that the public will be satisfied, as I am, that AEL&P acted entirely appropriately," said Mayor Bruce Botelho, who called for the audit.
On April 16, avalanches took out the transmission line supplying Juneau's cheap energy from the Snettisham hydroelectric plant. That forced AEL&P to power the city with diesel-fueled generators for a month and a half.
Residential and commercial electricity bills nearly quintupled as the utility passed on the diesel cost to its ratepayers.
Responding to concern that the utility might be overcharging the public and profiting from the disaster, the city hired Elgee Rehfeld Mertz LLC, Juneau-based certified public accountants.
The firm was hired not to do a full-blown audit of the company, but to answer the question of whether money from the emergency rate hike was collected and used properly.
The firm found that customers paid $8.9 million for 2.3 million gallons of diesel. That works out to an average price of $3.89 a gallon.
The money only covered the cost of fuel, the firm found. It didn't cover any administrative or overhead costs, nor did it contribute to company profits.
AEL&P is paying for the audit.
The audit is one part of the city's attempt to take stock of how the crisis was managed. The city also hired consultants to examine how city government, AEL&P and the community dealt with the crisis. A final report has not been released; drafts are on the city's Web site.
The auditors' report also is posted on the city's Web site at www.juneau.org.
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