25 to 30 percent rate increase in store for ML&P customers in Anchorage

In the next few months, customers of the city-owned power utility in Anchorage could see a jump on their electric bills.

During a meeting Tuesday, City Manager Mike Abbott informed members of the Assembly’s Rules Committee that the administration will introduce a measure in early December that could ultimately lead to a rate increase of 25 to 30 percent for Municipal Light and Power customers.

The increases are connected with capital costs for a new generating plant, according to administration officials. When the plant comes online it will replace old power producing units for the utility.

At the same meeting, Assembly members were told of a plan to slightly raise rates for the water utility in order to pay for capital improvements to the city’s sewer system. According to members of the administration, the change will mean about $3 more on an average water bill.