Chugach Electric proposes 3.5% rate hike to cover $11.2 million shortfall

Chugach Electric Association filed a rate case with the Regulatory Commission of Alaska on Aug. 18, 2025, seeking increases that would raise typical residential bills about 3.5%. The RCA had until Oct. 2, 2025, to accept or suspend the proposal for investigation. The commission can also modify or reject the requested rates.

The case surfaced this week through a routine Regulatory Commission of Alaska recent-filings listing, which logs newly filed tariff records by formal identifier and offered no plain-language summary of the rate impact.

The filing cites an $11.2 million revenue shortfall driven by declining electricity sales and rising costs. For a household using 500 kilowatt-hours a month, the increase would add $4.55. South District members would see a 3.5% increase; North District members would see about 4.2%. The monthly customer charge would rise from $12.79 to $14.50, a 13.3% increase.

If suspended, Chugach Electric has asked for interim rates of 4.66% starting Oct. 2, raising a typical bill about $3.60. Those rates are refundable if final approved rates come in lower. A final decision, if the case is suspended, is expected by November 2026.

The Alaska Energy Transparency Project cautioned that raising the fixed customer charge shifts costs disproportionately onto lower-usage households. Retail sales fell 3.2% in the first half of 2025. As Governor Mike Dunleavy said at a May 8, 2026 press conference on the LNG gas line, "when you have the same fixed cost but fewer sales, everybody pays more."