July 1, 2020
Palmer, AK – At their May meeting, MEA’s Board of Directors voted to decrease base rates for members by 1%, during the third quarter of 2020. This base rate decrease, effective July 1st, was approved by the RCA. During this same time, MEA’s cost of power adjustment (COPA) rate will increase by 6.86% during the third quarter, subject to RCA review and approval. The increase in COPA is in large part due to fewer energy sales to other utilities in recent months, which typically help offset and reduce the COPA rate. The combined effect of the base rate reduction and COPA increase will result in a slight overall increase to the typical residential-use member’s monthly bill (using approximately 641 kWh/month of electricity) of about $2.27.
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 fluctuates quarterly as fuel and purchased power costs change based on global and Alaska-specific factors.
Matanuska Electric Association, Inc., Alaska’s oldest existing and second-largest electric cooperative, is owned and operated by its over 52,500 members. MEA’s service area covers nearly 4,500 miles of power lines in Southcentral Alaska.