MEA files for rate increase

WASILLA — Matanuska Electric Association officials have completed the transition from a wholesale power purchaser to a self-generating utility with the filing of a rate increase reflecting what MEA Director of External Affairs Julie Estey calls the costs and benefits of the Eklutna Generation Station. MEA has filed the request for increase with the Regulatory Commission of Alaska. For customers, it means a slight increase in monthly bills.

Estey explained MEA filed a request with the RCA for a 2.75 percent total base-rate increase. She said for the typical MEA member using 680 kilowatt hours, the increase equates to approximately $1.12 per month. Estey said that works out to less than a 1 percent rise in the average member’s bill. She said the filing is based on actual, audited costs gathered in 2016.

“Even with this minimal rate increase, MEA members receive some of the lowest cost power on the Railbelt,” Estey stated in a release.

“Over the last year, MEA collected detailed cost data necessary to understand with specificity the rate impact of moving to self-generation,” said MEA CEO and General Manager Tony Izzo. “(The) filing seeking only a small rate adjustment reflects the careful planning of the board and management for transition to self-generation and the conscientious execution of that transition plan by all MEA employees.”

After a full year of operation, the Eklutna Generation Station’s unique design demonstrated it is the most efficient power plant to serve MEA’s load, using less fuel over the year to produce a megawatt of power when compared to all other thermal generation in the Railbelt, according to data compiled for a recent study from the Alaska Energy Authority.

In addition, Estey said EGS has provided what she termed a new and valuable service to the Railbelt — small, efficient increments of power. She said bringing additional sales revenues to offset costs for MEA members, as well as opportunities for Railbelt-wide savings. Estey said during the same period, MEA also invested in system reliability improvements including a new advanced metering system, improved right-of-way clearing, additional transmission assets and other infrastructure upgrades.

“To have achieved all of this with only a small rate adjustment is the result of conservative, transparent and prudent financial management,” Izzo said. “MEA is committed to maintaining its strong financial position and aggressively managing its business to reduce the impact of rising costs.”

MEA’s filing includes a public comment period. MEA has requested RCA approval for implementing its new rates in 45 days. RCA procedures include provision for suspension of a filing and opening of a formal docket to evaluate a rate filing. In the event the RCA opens a formal docket in regard to MEA’s filing, MEA will not seek an interim rate increase during the RCA’s review and existing approved base rates would remain unchanged until the RCA issues its ruling.

MEA’s last rate case filed was in 1999. Estey said this rate case was requested by the RCA to correspond with MEA’s transformation to a self-generating, vertically-integrated utility.

MEA is Alaska's oldest and second-largest electric cooperative and owned and operated by its 50,000 members. Its service area covers more than 4,200 miles of power lines in Southcentral Alaska, and officials state the co-op leads projects statewide to provide customers with affordable, reliable energy.

Contact reporter Chris Ford at 352-2270 or chris.ford@frontiersman.com