To the Mayor of Seward and Seward City Council:

We the undersigned respectfully request that a fair and diligent review of the electric rates, charges, and fees currently being levied on residents and businesses.

There are many residents in Seward who are struggling to make ends meet. Many
of these residents are seasonal workers, or only receive a fixed income such as disability.
Some, perhaps, are on a small retirement allotment. According to census, 8.4% of
Seward residents are below the poverty level, and that does not include the many who
are only barely above that line, all of whom struggle each month to pay their bills and to
have enough left over to put food on the table. All residents are impacted by high costs,
especially during the winter months.

We are aware that due to the storm in 2010 there was a Fuel Cost Adjustment
added to the electric bills. This was due to drop off after a 60 month period ending by
June 2016. Did this Fuel Cost Adjustment drop off as scheduled? Was there another
Fuel Cost Adjustment added following a subsequent storm? In other words, has there
been another storm resulting in another budget shortfall in which another Fuel Cost
Adjustment was needed? If so, when can we expect it to drop off?
According to a 2014 article in Seward City News, a Special Consultant from
Rockport, Maine by the name of Mike Hubbard was hired by the City of Seward to
examine the fairness of the utility rates and cost of service to customers. His
discoveries:

1. Residents were paying about 1% more than actual cost of service.

2. 100 large general service customers, including Spring Creek Correctional
Center/State funded top employer, and Alaska Railroad Corporation which hosts
large cruises, coal ships, and shipping barges, were paying 1% below cost of
service.

3. About 500 small businesses were paying 62% more than actual cost of service.

4. Meanwhile, the City's two largest industrial service consumers, Icicle Seafoods
and the Alaska SeaLife Center were paying much less at 57% below cost of
service. Did the City Council and the Mayor address any of these issues?

The Christmas holiday season will be here before we know it. Many residents
note that there is quite a hike in the monthly cost of service during this time. We are
told that the season brings an increase in the use of electric for holiday lights, etc., and
that is the reason the statements reflect higher charges, even though in some cases there
may only be a minimal increase of personal usage, if any at all. Also, there has been a
notable increase in some Summer month charges. We have been told by the utility clerk
that this increase resulted from increased usage by tourists, campground electric, etc.
Why are any of these scenarios fair and equitable? Why should residents pay for any
electrical usage other than their own?

Questions

1. Did the Fuel Cost Adjustment generated in 2010 drop off as scheduled?

2. Was there another Fuel Cost Adjustment added following a subsequent storm? In
other words, has there been another storm resulting in another budget shortfall in which
another Fuel Cost Adjustment was needed? If so, when can we expect it drop off?

3. Did the City Council and the Mayor address any of these issues regarding the
distribution of electric rates after they were examined in 2014 by Mike Hubbard?

4. Why should residents pay for any electrical usage other than their own? (The
electrical usage of tourists, large industrial service consumers such as Icicle Seafoods
and the Alaska SeaLife Center, and other residents in the Christmas season