AIDEA purchase of FNG progress

Another piece of the puzzle came through today with the Regulatory Commission of Alaska postponing any action on Fairbanks Natural Gas’ request for a rate hike as the state agency AIDEA prepares to buy them. This is welcome news as FNG was asking for a 7% rate hike and can now expect a 14% decrease with the purchase, as returns will be 5.06% and deferred compared to a much higher rate of return being taken by FNG owners. Also, as a non-profit, corporate taxes will go down.

Here’s the RCA’s notice.

And here’s an explanation of the current state from the News-Miner.

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