MEA customers to get a 5.5 percent reduction in rates

As of Monday, Matanuska Electric Association (MEA) customers will see an approximate 5.5 percent reduction in monthly bills, pending state regulatory commission (RCA) approval.

According to MEA spokesperson Julie Estey, the decrease is the result of regular quarterly rate adjustments to both base rates and the Cost of Power Adjustment (COPA). The MEA board of directors voted Feb. 13 to authorize an increase of 0.45 percent in base rates, effective the second quarter of 2017. Estey stated under the terms of rules set by the RCA, MEA is allowed on a quarterly basis to file for limited increases or decreases in base rates, provided that the adjustments stay within certain commission established financial parameters. MEA is also filing a 15.17% decrease to the COPA rate, due largely to revenue associated with economy energy sales, which reduces MEA’s cost of purchase power and all else being equal, reduces the COPA rate. This demonstrates the ability of recent Railbelt collaboration to offset costs for cooperative members.

The overall monthly bill for the average MEA member (using approximately 680 kWh of electricity) will decrease from $143.59 to $135.69 per month, if the request is approved, Estey stated.