Approved return on equity: 9.85%
Approved revenue requirement increase: $1.25 million
Approved residential rate increase: 5.19%
Approved total rate increase: 3.61%
Requested return on equity: 11.5%
Requested revenue requirement increase: $2.27 million
Requested residential rate increase: 9.37%
Requested total rate increase: 6.58%
Time period: Jan. 1 – Dec. 31, 2022
Here are a few things we think are important for you to know about this case if you are an Alpena Power customer:
- The company said its need for a rate increase is driven by “a lack of sales growth coupled with increasing operational expenses including the incurrence of higher internal and external labor costs, and increased investment in utility plant required to provide service to its customers.”
- In Alpena Power’s previous rate case (U-18324) the company got approval to increase its rates by $1.9 million annually, which translates to a 4.9% increase on residential customer rates, a 3.73% general rate increase with a return on equity of 10.1%.