By Suzanne Downing 
Anchorage’s only electric utility, Chugach Electric Association, is raising rates – but not for the reason customers might expect. The 3.1% interim rate increase that took effect Oct. 2 comes not after a cold snap or surge in power demand, but rather after a warm winter last year that led to lower sales.
In August, Chugach filed a request with the Regulatory Commission of Alaska to adjust its base rates, citing a 3% decline in electricity sales and a resulting $11.2 million revenue shortfall. The utility argued that the higher rates are necessary to maintain operations, meet expenses, and preserve its credit ratings, even though less power was sold to members.
That’s right: M mild winter and reduced demand are the latest reasons for higher bills.
When Chugach acquired Municipal Light & Power in a $1 billion deal approved by Anchorage voters in 2018, the cooperative repeatedly promised long-term savings, not higher costs.
Campaign materials and official filings stressed that efficiencies from consolidation would “deliver savings back to ratepayers” and that there would be no increase in base rates. At the time of closing in 2020, Chugach projected more than $200 million in savings over 15 years and said those savings would help “keep rates low.”
Indeed, rates briefly dropped in 2021 – 9.6% for former ML&P customers who were being onboarded to Chugach, and 2.7% for legacy Chugach customers, fulfilling what the cooperative then called its merger promise. But four years later, with electric sales down, the tune has changed.
The interim 3.1% hike will remain in effect while regulators review the full rate case. If the Regulatory Commission later approves a smaller increase, members will receive a refund with interest.
Chugach members interested in influencing the direction of the utility will have that chance this spring. Two board seats are up for election at the 2026 annual meeting, with applications due Jan. 26. Members can also propose bylaw changes for consideration.
More information is available at chugachelectric.com/annual-meeting.
Chugach Electric is very analogous to Alaska’s K12 education system. Energy usage decreases with decreased revenue. So, CEA must increase the KWh cost to the consumer. Alaska K12 schools have decreased number of students with decreased revenue. So, the per student cost (increased Base Student Allocation) must be increased. That is what one gets from government union managed entities. Decreased expenses are never looked at for efficiencies. Just pass the increased cost to the “customer”.
Don’t forget who you are dealing with ak leaders who are public school graduates
They can’t lead better when their k12 education was nothing better than a 4th grade level
It would be interesting to know the real cost of the wind hobby farm on Fire Island
It would be interesting to see the actual benefit of the solar hobby farm proposed recently.
It would be interesting to know how much money has been paid to Mark Begich for the MLP merger and other contacts over the last decade.
So punishing its customers for being energy efficient and environmental conscious
Alaskan leaders are a backward people
They can’t pay the bills for the enviro-loons without soaking you. Those checks won’t write themselves
How else is CEA going to pay for all those electric vehicles?
The reality is that Chugach’s Board is controlled by the Alaska Center for the Environment and their CEO has zero experience leading anything.
Every time there’s another board member election, those candidates with “renewables” & “alternative” energy mantras win every time. To answer the previous commenter question: If Fire Island was productive there’d be more turbines out there. For YEARS members of CEA have been paying monthly for “FIW Renewable Energy Adj.” Laughable.