A penny more for Chugach's Beluga gas, a price nearly tripled since 2021

Chugach Electric Association wants to charge itself one more cent for the gas it produces at the Beluga River Unit, which would take the price to $8.14 per thousand cubic feet on Oct. 1. Chugach puts the effect on an average home at about two cents a month.

The penny is small. The climb is not. The price was $2.73 in January 2021, and in 2023 it rose from $4.81 to $5.49. Most of that growth is two surcharges: cleanup of the field, and development there. This time field operations fell seven cents; the surcharges rose eight.

The gas transfer price reaches Anchorage-area bills through Chugach's cost of power adjustment surcharge. Chugach says fuel costs make up about one-third of an average retail member's monthly electric bill.

In February, Chugach sought to go from $7.25 to $8.24, effective April 1. What took effect that day, by commission letter order, was $8.13. The commission may again approve a rate that varies from the one proposed.

Chugach's Brandy Baker told the House Finance Committee on June 1 that the utility sources "60% of our gas requirement from our two thirds interest ownership in the Beluga river unit gas field."

Comments are due by 5 p.m. Sept. 3. Comments referencing TA594-8 go to the commission, with a copy to Chugach.