0:46
Claire Knudsen-Latta
86:29 - 87:15
“spreading the cost of the spur line across the entire system acts to decrease the rates related to the spur as costs are spread over a greater area. However, in utility and pipeline regulation, there is a well-founded principle which appears at 3 AAC 48510 that the causer of the cost and consequently recipient of the cost benefit should also be the one to pay the cost. System-wide recovery would be contrary to this principle as not all users of the system are causing the cost or receiving the benefits of the SPUR.”
- Speaker
- Claire Knudsen-Latta
- Timestamp
- 86:29 – 87:15
- Community
- Alaska News
- Location
- Juneau
- Captured at
From the transcript
Slide number 8. For the record, this is Claire Kunitsun Lada. At a very basic level, spreading the cost of the spur line across the entire system acts to decrease the rates related to the spur as costs are spread over a greater area. However, in utility and pipeline regulation, there is a well-founded principle which appears at 3 AAC 48510 that the causer of the cost and consequently recipient of the cost benefit should also be the one to pay the cost. System-wide recovery would be contrary to this principle as not all users of the system are causing the cost or receiving the benefits of the SPUR.
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