Palmer, AK – Members will see a slight increase in overall rates in the third quarter of 2021 due to a rise in the Cost of Power Adjustment (COPA) rate. This is the first COPA rate increase within the past year. MEA’s Board of Directors voted for no change in base rates (also known as the “energy charge”) in the third quarter; overall, base rates have not increased in the past year and MEA continues to offer the lowest base rate in the Railbelt at $0.12453/kWh. Higher gas prices coupled with less energy sales, which is typical for the summer season, contributed to an increase in the COPA rate from $0.06865 to $.07460 per kWh.
A typical MEA member, consuming about 677 kWh per month of electricity, will see their overall monthly bill increase by about $4.03 or 2.79%. The rate changes, effective July 1, 2021, are subject to approval by the Regulatory Commission of Alaska (RCA).
MEA may file limited increases or decreases in base rates on a quarterly basis, provided the adjustments stay within certain financial parameters established by the RCA. The base rate includes the costs of infrastructure and bringing power to our members’ homes and businesses. The COPA rate, which flows through fuel and purchased power costs, fluctuates quarterly based on varying market conditions and power sales.