The Juneau Assembly may grant a large loan to Alaska Electric Light & Power Company. On Monday the assembly is expected to authorize a $3-million loan.

The city would draw on its budget reserve holding, which is estimated to be at $4-million.

The loan was announced last week, but initially the city suggested using the money to avoid city layoffs in response to budget shortfalls and to create a tax break on inflated electricity costs.

Since the avalanche that knocked out the power lines that connect the city to nearby hydro-power dams, utility customers are dealing with a huge temporary rate hike.