Beginning July 1, 2025, MEA members will see an increase in their electric bills due to a 3% increase in base rates and a 12.2% increase in the Cost of Power Adjustment (COPA) component of rates. The base rate reflects the fixed cost of delivering electricity to homes and businesses and was approved by both the MEA Board of Directors and the Regulatory Commission of Alaska (RCA). The COPA rate, which primarily recovers fuel and purchased power costs, is adjusted quarterly and subject to RCA review and approval.

These changes will result in an average monthly increase of approximately $8.87, or 5.7% overall, for a typical member using 642 kilowatt-hours.

Why the COPA Rate is Higher This Quarter

MEA’s Cost of Power Adjustment (COPA) rate—which recovers the cost of fuel used to generate electricity and power purchased from other sources—is higher this quarter due to increased anticipated purchases of Eklutna hydro power from the Municipality of Anchorage, as well as additional tight pool power purchases from Chugach Electric during the third quarter.

This increase is further compounded by an under-collection of costs from earlier in the year. Some fuel expenses were undercharged in previous COPA filings, and a milder-than-usual winter led to lower electricity usage across our system, reducing the ability to spread those fixed costs. As required by the Regulatory Commission of Alaska (RCA), MEA must now recover those undercharged amounts through this quarter’s COPA rate. All else being equal, once these recovery amounts are collected, we anticipate the COPA rate will return to more typical levels next quarter.

MEA continues to make cost control and efficiency a top priority—finding smarter, more cost-effective ways to deliver safe, reliable power, even as fuel, materials, and equipment costs continue to rise across the utility industry.

Keeping Rates Accountable and Transparent

MEA evaluates rates quarterly to ensure they align with RCA-approved guidelines and reflect changing fuel costs, generation sources, and member demand. Factors such as energy use, market fuel prices, weather conditions, and broader economic trends can all impact electric rates.

We remain committed to providing safe, reliable power while keeping members informed about the factors influencing their monthly bills.