ML&P Announces Decrease in Cost of Power Adjustment Rate
New, efficient generation at Plant 2A results in savings for ratepayers
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ANCHORAGE—Municipal Light & Power’s 2018 second quarter filing with the Regulatory Commission of Alaska will decrease the Cost of Power Adjustment rate to $0.01024 per kWh, effective April 1, 2018 (including prior period adjustments). With this filing, ML&P’s COPA rate will be the lowest it has been since 2012.
ML&P’s COPA rate has declined since 2017 due to fuel cost reductions associated with highly-efficient units at Plant 2A. This decrease has resulted in 28 percent savings or $36.25 on the overall monthly bill for the average ML&P residential customer consuming 550 kWh per month. (Calculation based on second quarter 2017 average ML&P residential customer bill and second quarter 2018 average ML&P residential customer bill.)
“With another decline in COPA, ML&P customers continue to benefit from our investment in new, highly efficient generation,” said ML&P General Manager Mark Johnston. “The improved efficiency results in less gas being burned to generate customer electricity and lower customer bills.”
Another customer benefit is ML&P’s ability to sell excess power to other Railbelt utilities. “Plant 2A’s low production cost has significantly increased these sales,” Johnston continued. “ML&P uses the proceeds to further lower ML&P customer bills.”
Savings have also been achieved through ML&P’s investment in the Beluga River gas field, which provides a secure, low-cost gas supply. The utility purchased a one-third share in the field in 1996, resulting in over $239 million in savings to ratepayers from 1996 to 2016. After the 2016 acquisition of a portion of ConocoPhillip’s share, ML&P now owns 56.67 percent of the field.
ML&P’s COPA rate of $0.01024 is currently the lowest in the Railbelt. The current COPA is $0.07077 kWh for Homer Electric, $0.11227 kWh for Golden Valley Electric, $0.07961 for Matanuska Electric and $0.06776 kWh for Chugach.