Chugach wants another cent for the gas it sells to itself

Chugach Electric Association owns two-thirds of a gas field in Cook Inlet, burns that gas to make electricity, and charges itself a price for it. That price lands on member bills.

The utility wants to raise it by a penny, to $8.14 per thousand cubic feet, starting Oct. 1. Chugach puts the effect on an average home at about two cents a month.

The penny is not the story. The price was $2.73 in January 2021. It went from $4.81 to $5.49 during 2023. It is now headed to $8.14.

Most of that climb is two surcharges, one for cleaning up the Beluga River field and one for developing it. This round shows the pattern clearly: the cost of actually operating the field fell seven cents, and the surcharges rose eight.

Fuel makes up about a third of an average member's monthly electric bill, and the field supplies about 60 percent of the gas Chugach burns. The transfer price reaches customers through the cost of power adjustment, the line that passes fuel costs through to rates.

The Regulatory Commission of Alaska does not always approve what Chugach asks. In February the utility sought $8.24 effective April 1. The commission set it at $8.13.

Comments are due by 5 pm Sept. 3.