Matanuska Electric Association says members should expect a temporary increase in electricity bills this quarter due to higher fuel costs. The utility’s base rates remain unchanged.
MEA Chief Strategy Officer Julie Estey explains that the increase comes from the Cost of Power Adjustment, or COPA. This portion of our bills reflects the cost of fuel and purchased power. These costs are passed on to members.
MEA does not profit from this increase as a member-owned cooperative. The Regulatory Commission of Alaska reviews these costs each quarter to make sure that members pay the actual cost of producing electricity.
The adjustment adds about $15 per month for the average residential customer. Several factors contributed to the increase. An unusually cold spring required more natural gas than expected. MEA has a seasonal shift to more expensive purchased power from its share of lower-cost Eklutna hydropower. It has new costs associated with storing natural gas for future reliability.
MEA expects the COPA charge to decline in the fourth quarter if fuel costs and usage return to projected levels.
Estey says the Alaska electricity industry faces the challenge of securing reliable natural gas supplies in the future. About 85 percent of MEA electricity depends on natural gas.
This makes the utility vulnerable to rising fuel prices. MEA is working to secure dependable short-term gas supplies. It is also pursuing a long-term strategy to diversify its energy sources over the next five to ten years.
Unlike many Alaska utilities, MEA continues to see growth. Electricity demand in the Mat-Su Valley increases about one to two percent annually.
Several factors contribute to this growth. The average household is using more electricity than previous years. Population growth, electric vehicles, new appliances, and increased use of electronic devices all contribute to higher demand.
Additional industrial customers, including military facilities, resource development, and even potential data centers, could further increase electricity use. On the plus side, this will spread fixed system costs across more customers.
Estey noted that although Alaska’s electric rates are viewed as high, MEA’s base rates remain among the lowest in the Railbelt system.
Alaska is not alone in facing increasing energy prices. Rising fuel costs are affecting utilities nationwide.
Estey touched on long-term energy options. These include a North Slope natural gas pipeline; importing liquefied natural gas; expanding hydropower, wind, nuclear energy; and transmitting electricity from power plants built on the North Slope. While each option has potential, Estey emphasized that they require significant investments and years of development.
Focus on energy efficiency if you want to reduce your electric bill. Estey says the cheapest energy is “the energy you don’t use.” Simple improvements such as LED lighting, home energy audits, and efficient appliances make a difference. Homeowners with solar panels offset their electricity use and sell excess power back to MEA.
Estey invites members to attend “Tap Room Tuesdays with Tony.” MEA CEO Tony Izzo will answer questions about electric rates, natural gas supplies, and MEA’s plans for Alaska’s energy future at these community meetings.
The Mat-Su Borough Assembly meets tomorrow night at 6 p.m. in the Assembly Chambers.
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That’s it for today and the news on Page Two on Monday July 20, 2026.
Image credit: MEA