Palmer, AK - Starting July 1, MEA members will see no change to base rates (also known as the "energy charge") as approved by the MEA Board of Directors. Also in the third quarter, the COPA component of rates, which remains subject to RCA review and approval, decreased slightly due to the receipt of certain refunds associated with both the power pool agreement and the Bradley Lake Hydro Project offsetting cost increases in other areas included in the COPA calculation. The COPA component of rates primarily includes fuel and purchased power costs, while the base rate component (consisting of the “energy” and “demand” charges) includes the bulk of the other costs necessary to bring power to MEA members’ homes and businesses. A typical MEA member consumes approximately 652 kWh per month and can expect to see an overall decrease of about $0.04 in their monthly bill due to the decrease in the COPA rate.
MEA may file limited base rate increases or decreases on a quarterly basis, provided the adjustments stay within certain financial parameters established by the RCA. All rates are subject to a variety of factors including member electric use, weather, inflation, and other economic factors.
Other line items on your bill
Back in April, a new line-item called the “ERO (Electric Reliability Organization) Charge” was added to MEA members monthly bills to provide full transparency of ERO costs going forward. This charge supports the state mandated Railbelt Reliability Council (RRC) which was approved as the Electric Reliability Organization by the Regulatory Commission of Alaska in September of 2022. The current ERO charge rate is $0.00071 per kWh. Any changes to the ERO charge are subject to RCA approval.
Also on your bill is the “Regulatory Cost Charge” (RCC) charge. The RCC charge is required by legislation and funds the Regulatory Commission of Alaska (RCA). The RCC charge is updated annually and effective July 1, 2023, the revised RCC rate for electric utilities increased to $0.001028 per kWh (up from previous rate of $0.000893 per kWh) by order of the RCA.
For additional explanations of items on your bill, please visit: https://www.mea.coop/account-services/understand-my-bill