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- 4. Q: “Are the grants you receive obtained for a city as a part of the process or do you get a grant and decide which city you want to spend it on”
- 6. Q: “Whats your incentive to keep expenses low”
- 7. Q: “What is your incentive to keep systems maintained and up to date”
- Questions 11-15 address the issue of “How are APT’s rates / tariffs / customer charges determined”
- 16. Q: “Is all work performed by your staff or is there some work you hire out”
- 29. Q: “Do you pay property taxes”
| Hello Jon.
Hope you are doing well. Greg said he had an excellent visit. The info he has provided has been extremely useful as we begin our review of Yakutat Power. In addition to the items Greg asked for earlier today, and the FY16 budget which he brought back, I was wondering if you or Martha could please provide a break-out of the costs associated with each Yakutat Power employee? Also – I have collected some more recent information on utility non-fuel costs. The last table I provided showed community-specific non-fuel costs per kWh from 2013, as reported by the AEA. The AEA’s 2014 report provided utility-wide non-fuel costs. Those are presented below.
Subject: AP&T Questions Hello Jon, and thank you for your questions. This is very helpful in understanding the types of issues which are important to you and others in Yakutat. Our management is currently working on a “due diligence” review of Yakutat Power, to determine if and how we may be able to be of assistance to your utility. Key activities will include:
While we are aware other utilities have been engaged in similar reviews of Yakutat Power for some time, AP&T has only just recently begun. It will take some time for our staff to fully conduct these activities, and give Yakutat Power the detailed consideration it deserves. In the event that AP&T identifies a concept for Yakutat Power which we believe to be in all parties' best interest, AP&T may potentially develop a formal proposal to the Yakutat Assembly. The details of a proposal of this type (if made) would likely address all of your questions. AP&T would also be available to answer any additional questions which the Assembly and the public would have. AP&T won't be in the position to provide responsible answers to many of the questions you are asking until we have completed a "due diligence" review and (potentially) made a proposal. However, you have some questions dealing with AP&T (d.b.a. Alaska Power Company, or APC) generally, which I can answer now: 4. Q: “Are the grants you receive obtained for a city as a part of the process or do you get a grant and decide which city you want to spend it on?” A: AP&T uses its in-house grant writing and grant management capabilities to apply for grant funds and low interest loans on a project-specific basis. We must propose how funds will used at the time of application. Grant and loan funds are conditioned by grant agreements with the granting agency; these legal agreements specify how funds must be used. AP&T cannot reallocate funds to other projects at our own discretion. We are audited every year, to assure that our grants are used in an appropriate manner consistent with our grant agreements. Typically, grant opportunities are highly competitive. AP&T tends to compete extremely favorably, due to the experience of our grant-writing team, and our staff’s excellent reputation for applying State and Federal funds in effective ways that help ratepayers in rural Alaska. Depending on the project, we oftentimes partner with municipal governments, tribal governments, ANCSA corporations, the University of Alaska, and other utilities to strengthen our applications, and project outcomes. We have accomplished many excellent projects in the communities we serve through grants and low interest loans (hydropower projects, transmission construction and upgrades, the largest utility-owned solar installation in Alaska, testing of emerging technology), and are looking for other communities and utilities which we can assist with our expertise. As a private utility, AP&T is also able to make investments with private capital. Private capital can be especially helpful when grants and public monies are in short supply. Private capital can be used as “matching funds,” and gives us an enhanced ability to leverage grant funds. Grant funders recognize that when there is private capital involved in a project as “skin in the game,” a private utility will manage risks and costs extremely carefully. 6. Q: “What's your incentive to keep expenses low?” A: As a private, employee- and investor-owned utility, AP&T’s power operations are regulated by the Regulatory Commission of Alaska (RCA), which assures consumer protections, and affordable service. The RCA sets a maximum allowable return on investment, or “profit cap.” The RCA provides third party oversight, reviewing AP&T’s expenses during rate cases to assure all costs incurred by APC are reasonable and necessary. Any costs exceeding what are reasonable and necessary are applied against APC’s allowable return on investment (i.e. deducted from “profits”). This arrangement motivates and incentivizes AP&T to be extremely cost-effective and efficient, and has resulted in our utility providing some of the lowest non-fuel costs in Alaska. It sometimes surprises people to learn that AP&T’s power operations have some of the lowest non-fuel costs in Alaska, because they associate private utilities with “profits.” It is that very ability to earn a regulated profit – only if expenses are minimized – that motivates AP&T to be exceptionally cost-effective. 7. Q: “What is your incentive to keep systems maintained and up to date?” A: AP&T is regulated by the RCA. State rules, regulations, and the RCA require AP&T to provide safe and reliable power to our customers. Poorly maintained systems can create additional expenses for utilities. As a private utility, AP&T’s ability to earn a regulated rate of return strongly incentivizes AP&T to minimize unnecessary expenses. Questions 11-15 address the issue of “How are AP&T’s rates / tariffs / customer charges determined?” A: Because AP&T is a private utility, the Regulatory Commission of Alaska determines and governs AP&T’s rates, in accordance with State laws and regulations. This assures third party oversight to protect consumers’ best interests, and assure that rates are reasonable and necessary. AP&T’s tariffs are designed to reflect utility revenue requirements. To change its tariffs, AP&T must engage in a rate case, which is overseen by the RCA. A rate case is a public process, with many opportunities for public engagement and comment. After charges are determined through a rate case, AP&T is required to adhere to its tariffs. You can review AP&T’s current tariff book here: http://rca.alaska.gov/RCAWeb/ViewFile.aspx?id=d8d1cdd7-8a14-4d3f-a978-21105380400d 16. Q: “Is all work performed by your staff or is there some work you hire out?” AP&T maintains a multi-skilled workforce with diverse knowledge, skills, and abilities (KSA), including licensed engineers, technicians, mechanics, and linemen. Our team also includes staff with years of experience in utility finance, construction management, project management, safety and compliance, legal/regulatory issues, permitting (ex: air quality, FERC licensing), economic analysis, grant-writing, grant management, and more. We try to use our in-house skills to perform tasks whenever possible, as it is generally much more affordable than hiring contractors. However, there are times when we contract beyond our in-house skillsets to access additional expertise. We also use our in-house staff to provide technical services to other utilities and renewable energy developers on a contractual basis. This has been particularly true in the areas of hydropower and renewable energy development. 29. Q: “Do you pay property taxes?” A: As a private company, AP&T pays State, federal, and local taxes… including local property taxes. Thanks again for your interest. Our team looks forwards to providing you with more info as we continue to make progress on our review of Yakutat Power. -- Jason Custer Business Development Director Alaska Power & Telephone 
Thanks, and have a great afternoon. -- Jason Custer Business Development Director Alaska Power & Telephone Directory: 2015 2015 -> 587 Return function, r i(X) r i(0) r i(1) r i(2) r i(3) 1 0 2 4 6 Thermal Station, I 2 0 1 5 6 3 0 3 5 6 10 2015 -> Fall 2013 Spring 2014 Program Data: Standard 1 Exhibit 4d 2015 -> Police Militarization 2015 -> Medical Radiography Program 2015 -> 2015 ihbb championships: hs history Bowl Round 4 – Prelims First Quarter 2015 -> Desk review yemen 2015 -> Wrtp/big step · 3841 W. Wisconsin Ave., Milwaukee, wi 53208 2015 -> 1. naclo 2015 – North American Computational Linguistics Olympiad 2015 -> Rao bulletin 1 December 2015 html edition this bulletin contains the following articles 2015 -> Volume Ⅴ (2015) On The 2015 China Victory Day Parade Download 16.71 Kb. Share with your friends:
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