MEA seeks rate hike, hires engineering firm

PALMER — Among the work conducted at the Aug. 13 Matanuska Electric Association Board of Directors meeting were votes to increase member rates by nearly 2 percent and another to contract with a firm for engineering and design services for the new power plant.

Board members voted to hire the firm of Burns and McDonnell for engineering and design services related to the ongoing Eklutna Generation Station project.

In business for 113 years, Burns and McDonnell is headquartered in Kansas City, Mo., and is a full-service engineering, architecture, construction, environmental and consulting solutions firm with more than 3,600 employee-owners. It has significant experience in designing projects for the harsh environments of Alaska and experience designing plants that use Wärtsilä generation technology.

“Approval of this contract is another major step on our path to completing the Eklutna Generation Station on time and under budget,” MEA general manager Joe Griffith said in a press release.

The contract, valued at $3.8 million covers the engineering and design of both the new generation plant’s power block (those pieces of the plant housing the generators and connecting them to the electrical grid) and its support buildings (including an administrative building and warehouse, known collectively as the “balance of plant”).

Completion of the initial design documents is expected by the end of December to accommodate a spring 2013 construction start date. The Eklutna Generation Station is slated for completion by the end of 2014.

Board members also voted to authorize an increase of 1.98 percent in base rates, effective the fourth quarter of 2012. Pending approval by the Regulatory Commission of Alaska, the increase would take effect during the first week of October.

An MEA customer using 700-kilowatt hours of electricity per month would see a monthly increase of about $1.44, according to an MEA press release.

MEA is allowed to file on a quarterly basis for limited increases or decreases in base rates, provided that the adjustments stay within financial parameters established by the regulatory commission.