MEA members can expect bigger bills in '06

December 6, 2005

DAWN DE BUSK\Frontiersman reporter

MAT-SU - Members of Matanuska Electric Association will soon see a jump in their electric bills, thanks to the MEA board's decision to approve a .24-percent increase in base rates that goes into effect during the first quarter of 2006.

The MEA board unanimously passed the rate increase during its last regular board meeting Nov. 14, MEA spokesman Mike Pauley said.

Co-op members could see an even bigger jump, however, later in 2006. &#8220We anticipate because of the rising fuel costs, that Chugach Electric's cost will go up in 2006. It's automatically reflected in people's bills,” Pauley said.

An MEA press release stated that an average member consuming 800 kilowatt hours of electricity per month would see an increase of 17 cents in each month's bill. A member consuming 1500 kilowatt hours per month would see an increase of 31 cents.

The rate increase would take effect Jan. 3 if the Regulatory Commission of Alaska approves it.

The actual cost of buying power combined with using more electricity during the wintertime adds up to higher bills for residents, Pauley said.

Forty percent of consumers' bills go toward running the electric association, Pauley said. &#8220We have 3,600 miles of lines to maintain and administration to pay,” he said.

Sixty percent of each member's bill pays the price of purchasing power from Chugach Electric, Pauley said.

That information is available on each member's bill, he said. &#8220We have the ability to affect our own cost of doing business, but we don't have any control over what Chugach Electric charges us,” he said. MEA's contract with Chugach Electric is due to expire in 2014.

Dawn De Busk can be reached at 352-2252 or dawn.debusk@ frontiersman.com.