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RCA approves MEA all-service rate case New rate structure reflects electric utility’s transition to the generation of its owns power from Eklutna Generation Station Alan Bailey Petroleum News
The Regulatory Commission of Alaska has approved a rate case filed by Matanuska Electric Association to accommodate the fact the utility has transitioned to a full-service business, generating its own power as well as distributing power to its customers. The change comes as a result of the commissioning in 2015 of the Eklutna Power Station. The new rates, which go into effect on Sept. 1, are based on an analysis of the utility’s operations during 2016.
The new rates do not reflect the cost of the gas fuel used to generate the power but involve a 2.75 percent increase in the fees charged to support the operation of the generation facility, and the power transmission and distribution systems. MEA has commented that an increase in the fixed facilities charge for the infrastructure costs allows a counterbalancing reduction of the per-kilowatt-hour “energy charge” for infrastructure use.
The utility says that the net impact on a typical consumer’s monthly electricity bills will be less than 1 percent.
MEA had filed its proposed rate change on June 30. The process for RCA approval of the new rate included a 30-day public comment period.
“Prompt approval means cost savings for MEA members,” said MEA CEO and General Manager Tony Izzo in response to the RCA decision. “It is a direct reflection of the hard work and careful planning from our board, management team and employees.”
Change to full service In the past MEA has obtained its power from Chugach Electric Association, with MEA acting as a transmission and distribution company, shipping the power to MEA’s customers. But, with that arrangement for power supplies scheduled to cease at the end of 2014, MEA proceeded with the construction of its Eklutna generation facility, thus becoming a full-service utility.
Unlike the turbine-based, gas-fueled power generation facilities elsewhere on the Alaska Railbelt transmission grid, the Eklutna Generation Station uses 10 powerful reciprocating engines to drive its generation. Conceived during a time of worry over the viability of future natural gas supplies from the Cook Inlet basin, the facility can use diesel fuel as an alternative to gas. The use of multiple engines and reciprocating engine technology enables rapid adjustments in power output while maintaining power generation efficiency. This makes the power station particularly suitable for counterbalancing fluctuations in power output from renewable sources such as wind farms.
In a further development MEA is joining a new power pool arrangement with Chugach Electric Association and Municipal Light & Power. This will enable all three utilities to make optimum use of the most efficient power generation in the Anchorage and Matanuska-Susitna valleys region, with MEA’s Eklutna Generation Station becoming part of the power generation mix.
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