Developers oppose MEA rules change

PALMER — Matanuska Electric Association is meeting today to discuss a rule change that likely has implications for the pocketbooks of Valley developers.

“A lot of people are unclear, which is why we are holding a series of public meetings to clear things up,” MEA spokesman Kevin Brown said.

At issue is the utility’s line extension policy. Currently, when a person needs electricity extended into an area MEA doesn’t serve, he pays to bring the power lines in.

“Anyone who signs up for service on that line pays a portion of the cost of the construction on that line,” Brown said, adding that those reimbursements are available for five years. “This was a policy we put in place in the ’80s when we had largely built out our electrical system and were trying to encourage people to sign into it, to open accounts, to encourage subdivision growth, et cetera.”

He said MEA has matured beyond the development phase and needs to end the program.

Butch Moore, a local developer of subdivisions, disagrees. He points out that MEA gets those new lines, essentially, for free.

“These are free assets and infrastructure being given to MEA. Why would we want to discourage that?” he asked in a series of questions sent to MEA general manager Joe Griffith.

But Brown said that the program often doesn’t work as designed.

“Most of the people who are builders, they build out a subdivision, we run out a line to it and they don’t often receive much payback from people who tie into the system later because a lot of the time people will wait until that five years is over until they sign up for service, so they’re not saddled with that cost,” Brown said.

He said it’s actually sometimes a source of friction between neighbors.

“If one person says, ‘I want electricity’ and the rest of the neighbors don’t they pay that full cost, and then five years later the rest of the neighbors sign up without having to pay that pioneer cost,” he said.

The meeting today is to discuss the policy change. So far, the rule change is just a proposal from MEA administration. MEA’s board of directors has not weighed in one way or the other and will need to for the change to be implemented. The board could choose to enact it or shoot it down or change the way it works.

“Our board, while they have seen presentations on this several times, they haven’t begun their discussions and deliberations,” Brown said.

Contact Andrew Wellner at 352-2270 or andrew.wellner@frontiersman.com.

What: A meeting to discuss rules for who pays for new power lines

Where: The boardroom at MEA headquarters, Palmer

When: 10 a.m. today