The surplus gas Enstar got from natural gas producers was still used in the system, he said, and the higher gas volume resulted in lower prices. Enstar did not have figures available Monday for how much less expensive gas cost as a result of the error.
"The $5.7 million was used by the Enstar system. It's the cost of doing business. It's something that we feel the consumers should have to pay for," Sims said.
In fact, they already are. Since January, the company has been charging its customers for the mistake on an "interim" basis, meaning if the RCA doesn't approve the increase it will have to refund the money.
The rate increase works out to about $2.60 per customer per month, Sims said. Enstar wants to keep collecting that amount through December. The company has been allowed to recoup unbudgeted one-time costs before, he said.
The state opposes the rate increase. In an August filing with RCA, Assistant Attorney General Glenn Gustafson said Enstar should not be allowed to pass the mistake to its customers for two reasons: First, its 2009-10 customers shouldn't have to pay expenses from 2003-07.
Also, state law says Enstar can only recoup for errors that are "beyond the control of the utility," Gustafson wrote. Charging customers now for gas used years ago is not allowed, he argued.
WHAT IS FAIR?
That opinion was a popular one Monday evening among the 18 people, including legislators and their aides, who got up to address the regulatory board. They spoke of responsibility and consequences, corporate bailouts and struggling families.
"I can't even believe we're here because I think that it's pretty obvious: Fort Rich and Enstar should have caught this a long time ago," said Richard Lanctot, a 52-year-old city employee. "It's pretty surprising to me that you guys even would consider that we reimburse Enstar. They got the money. I don't care what they did with it; they already got the money for this gas."
Sen. Lesil McGuire, R-Anch., said she understood Enstar's concern about "the magnitude" of the error but that she, too, opposed Enstar's proposal and thought the company needed to be responsible for fixing it.
"I have grave concerns, particularly in this economy," said McGuire, who was out of state Monday and did not attend the hearing. "There are families that are struggling as it is to get by and to ask them to now go back and be responsible for the error that was made isn't reasonable."
Computer technician Richard Evans, 41, said Enstar needs to take responsibility for its own mistakes and pay for it. He suggested the money come out of the company's profits, or perhaps its top executives could take pay cuts to cover the loss, he said.
"It's a billing error. When I make that kind of mistake at my business, I pay for it out of my pocket," Evans said. "This isn't right, this isn't just, this isn't fair. Now, I don't ask for life to be fair, but I certainly do try every attempt I make to make it fair, and I'm going to ask you all to throw this one out. They do not deserve this."
Representatives from Enstar did not address the board Monday; it will make its case to the board in evidentiary hearings beginning today.
Regulatory commission chairman Bob Pickett said the commission hopes to reach a decision this fall.
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Find James Halpin online at adn.com/contact/jhalpin or call him at 257-4589.
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