RCA Investigates ENSTAR's Proposed Gas Cost Increase Amid Subsidization Concerns

The Regulatory Commission of Alaska (RCA) is investigating ENSTAR Natural Gas Company's proposed gas cost adjustment (GCA) increase following concerns of potential cross-subsidization related to a contract with Homer Electric Association (HEA). ENSTAR filed tariff revision TA355-4 on May 15, 2025, to increase the GCA from $9.0716 to $10.1091 per thousand cubic feet (Mcf) for the period July 1, 2025, to June 30, 2026, citing higher costs.

The RCA suspended the filing on June 30, 2025, and issued inquiries regarding the inclusion of HEA in GCA-created subsidies, estimated at up to $13.6 million annually. ENSTAR responded on September 12 and November 6, 2025, defending its position against RCA's subsidy calculations and opposing a separate GCA for HEA. The case remains active, with a public hearing in Anchorage through December 19, 2025, and a final order expected by February 9, 2026.