PALMER, Alaska — The Matanuska Electric Association (MEA) Board of Directors has approved an agreement that allows ENSTAR Natural Gas Company to find and negotiate future natural gas supplies on MEA’s behalf. MEA will continue to receive natural gas under its current contract with Hilcorp through March 2029.

Natural gas is the main fuel MEA uses to generate electricity. With growing concerns about the availability of Cook Inlet natural gas and increasing energy costs across Southcentral Alaska, MEA has been actively evaluating options to secure a reliable, cost-effective fuel supply for its members beyond its current contract.

“Securing reliable natural gas supply beyond 2029 is critical, but we also want to preserve MEA’s flexibility to pursue new generation resources and diversify our energy supply,” said MEA CEO Tony Izzo. “This agreement supports these priorities while keeping reliability, affordability, and the long-term interest of our members at the forefront.”

Over the past four years, at the Board’s direction, MEA has worked with ENSTAR, other utilities, and agencies to evaluate options, including more gas from Cook Inlet, imported liquefied natural gas (LNG), and gas from the North Slope. By combining its gas needs with ENSTAR’s, MEA can benefit from ENSTAR’s expertise buying gas and its ability to buy in larger quantities. The agreement also gives MEA room to adjust how much gas it needs as electricity demand changes or new power sources become available.

Once ENSTAR secures commitments from suppliers, MEA and ENSTAR will finalize a separate gas sales agreement and submit it, along with any related rate filings, to the Regulatory Commission of Alaska for review and approval. MEA will keep members informed as this work moves forward.

About Matanuska Electric Association

Matanuska Electric Association, Inc. is a member-owned electric cooperative serving more than 58,000 members through 73,000 meters across the Mat-Su Borough and the Eagle River and Chugiak areas. MEA is committed to providing safe, reliable energy at reasonable rates with exceptional member service and commitment to the community we serve.

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