What you need to know:
- Matanuska Electric Association increased its Cost of Power Adjustment, or COPA, by 29.4% starting July 1. The charge is added to every electric bill and will increase the average monthly residential bill by $14.53 for members using 623 kilowatt-hours of electricity.
- The increase was driven largely by higher Cook Inlet natural gas costs, officials said. Higher fuel prices, colder weather that boosted electricity demand, reduced access to lower-cost shared power, lower hydropower generation and a new $170,000 monthly natural gas storage fee all contributed to the higher COPA.
- MEA is planning for long-term energy challenges. With Cook Inlet gas supplies declining, the utility has extended its natural gas contract through 2029, is evaluating expanded oil-fired generation at its Eklutna plant as a backup and is seeking proposals for new energy sources, including hydropower, solar, wind and coal.
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Matanuska Electric Association members will see higher electric bills starting now because of rising Cook Inlet natural gas costs and new complications in the fuel supply for power generation in Southcentral, MEA officials announced last month.
A typical residential MEA member using 623 kilowatt-hours per month will pay $14.53 more each month because of the increase in the Cost of Power Adjustment, or COPA, according to a fact sheet prepared by MEA. Base electric rates are not changing.
The increase is 29.4% above the current average and reflects higher costs for the fuel used to generate electricity as well as less low-cost power shared by neighboring utility companies in the region, according to the sheet. Those companies include Chugach Electric Association…