MEA Projects 3rd Quarter Base Rate Increase; Overall Net Decrease
Increase to take effect during the first week of July 2015
Palmer, AK - Effective May 1, 2015, the typical MEA member using about 700 kilowatt-hours per month will see a net decrease of 2.81%, or $3.91 per month in their MEA bill, for the remainder of the 2nd quarter.
At the beginning of May MEA became a self-generating utility that is no longer purchasing power from Chugach Electric Association. As expected, this progress allowed MEA to reduce the Cost of Power Adjustment (COPA) rate component of a member’s bill starting May 1, more than offsetting the previously announced 1.03% base rate increase which also took effect May 1.
Looking ahead, the COPA rate decrease realized May 1 was so significant it also more than offsets the effect of a contemplated 1.98% base rate increase for the 3rd quarter. The overall net change in rates from these two quarters’ adjustments will still represent a reduction of 1.65% or $2.30 per month as compared to 1st quarter, for that same typical MEA member.
At their May meeting the MEA Board authorized the 1.98% base rate increase to take effect during the first week of July 2015. The typical MEA member using about 700 kWh can expect to see a monthly increase in the 3rd quarter of about $1.61 as a result of the 1.98% base rate adjustment.
The 3rd quarter base rate filing is based on the test year ending March 31, 2015. Under the terms of rules set by the Regulatory Commission of Alaska (RCA), MEA is allowed on a quarterly basis to file for limited increases or decreases in base rates, provided that the adjustments stay within certain financial parameters established by the RCA.