PUBLISHED: 1:48 PM on Wednesday, April 30, 2008
City approves $3 million loan for AEL&P
JUNEAU - Alaska Electric Light & Power was approved a $3 million loan last week by the Juneau Finance Committee with expectations the utility company will spread its 400 percent increase over a 12 month period.

Mayor Bruce Botelho said the loan is to protect residents who will not be able to pay the drastic increase following April 16 slides that damaged five transmission towers running from the Snettisham Power House. AEL&P has been importing 100,000 gallons of diesel fuel each day to run backup generators.

AEL&P representatives said the company is having to pay for diesel now and that it could not afford to spread the rate hike over time.

The $3 million contribution from Juneau is part of a $25 million loan package to pay for fuel costs.