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."
“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
- June 16, 2026
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.
Related Coverage
Senate Finance presses Alaska LNG spur line: who builds, who pays, who regulates
The Alaska Senate Finance Committee on Tuesday heard unresolved questions about who will build, own, and regulate a proposed Fairbanks natural gas spur line, how its cost should be spread across ratepayers, and whether HB 381's spur commitment is firm enough to guarantee construction.
by Walter AlaskaNews2h ago3 min readAIFairbanks, Alaska
