Can I charge different prices to different customers without violating discrimination laws in Alaska? What are the requirements?

Can I charge different prices to different customers without violating discrimination laws in Alaska? What are the requirements?

According to AKST 42.05.301, a public utility may not make or grant an unreasonable preference or advantage to any person or subject any person to an unreasonable prejudice or disadvantage as to service. A public utility may not establish or maintain or provide an unreasonable difference as to service, either as between localities or as between classes of service, but nothing in this section prohibits the establishment of reasonable classifications of service or requires unreasonable investment in facilities. Therefore, charging different prices to different customers may be considered discriminatory if it results in an unreasonable preference or disadvantage ^[3.1].

However, there are exceptions to this rule. For example, a municipally owned utility may offer uniform or identical rates for a public utility service to customers located in different areas within its certificated service area who receive the same class of service. Any uniform or identical rate shall, upon complaint, be subject to review by the commission and may be set aside if shown to be unreasonable ^[2.1].

Additionally, a public utility may charge reduced rates to customers transferred to it from a competing utility provided the reduction is an integral part of a contract, arrangement, or plan to eliminate the overlapping of service areas or to minimize duplication of facilities and competition between public utilities ^[3.1].

Therefore, while charging different prices to different customers may be considered discriminatory, there are exceptions to this rule. It is important to ensure that any differences in rates are reasonable and not discriminatory.

Source(s):

• [2.1] Notice to customers.
• [3.1] Discrimination in service.

Jurisdiction

Alaska

• General