Can I finance the cost of a main extension?

The utility may provide financing for payment of main extension assessments, subject to fund availability and credit approval. This option can make expensive main extensions more affordable by spreading costs over time.

Financing terms:

• Interest rate: 10% per annum add-on interest on the total amount financed
• Security: The utility may require a mortgage on your property as a condition of financing
• Availability: Subject to utility’s availability of funds and your acceptable credit rating
• Approval: Payment terms must be negotiated and approved

Payment requirements:

• Installment payments must be made when due
• The amount financed includes the assessment costs for the main extension
• Missing payments has serious consequences

Consequences of non-payment: If you fail to pay any installment when due:

• The utility may discontinue (shut off) your water service
• You’ll be subject to reconnection charges ($122 during business hours)
• A new service deposit will be required before service is restored
• The entire outstanding balance may become immediately due

How to apply: When negotiating your line extension agreement (required for all main extensions), discuss financing options with the utility. The financing terms will be part of the overall agreement that must be approved by the Regulatory Commission of Alaska.

Alternative: If you prefer to avoid debt, you can pay the full assessment amount upfront through direct payment to the contractor or utility.

Tariff Reference: Section W-021, Section W-019-B