RCA revokes Adak's power certificate

Tuesday, September 23 2008

Unalaska, AK – After a series of fuel shortages, rotating blackouts, and mismanagement, the City of Adak is no longer authorized to run its own power plant. The Regulatory Commission of Alaska revoked the Certificate of Public Convenience and Necessity today saying the city is managerially and financially unfit to run the utility.

Part of the decision issued by the RCA reads that Adak Electric's difficulties were "brought on by a completely avoidable combination of extremely poor cash management practices, a lack of competent management oversight, and negligent planning. By announcing rolling blackouts, Adak Electric has violated the law. Adak is not allowed to discontinue or abandon service for which a certificate has been issued without seeking permission to do so. We have never authorized Adak Electric to suspend service temporarily."

RCA is seeking another entity to provide electrical services in Adak. TDX Electric signed an agreement with the city to buy the utility in August, but they have not filed for a transfer from the RCA nor did the city file the agreement. It is unknown how the TDX agreement will be affected but the RCA is seeking applicants to take over the utility.

On Friday, Adak's city manager and the city clerk, the only city management staff, resigned their posts. The city management is currently being run by city council members.

No one at the city or RCA could be reached for comment.



News Community About Site by Joseph Redmon