Electric bills would rise in Bethel, Yakutat and 50-plus rural communities

Electric bills would rise in Bethel, Yakutat and more than 50 other rural Alaska communities under rate changes the Alaska Village Electric Cooperative's board is weighing. The increase would average 4.75 percent, not counting fuel, and take effect Nov. 1 if the board approves it.

The cooperative blames higher costs for materials, labor and freight, and says the new rates bring what it charges closer to what it costs to deliver power. The affected communities stretch across the western coast and the rivers feeding it, from Kotlik and Emmonak on the lower Yukon to Kivalina, Shishmaref and Selawik in the northwest, plus Togiak, Old Harbor, Minto and Huslia.

The increase lands on customers already paying far more than urban Alaskans. Rural electricity runs three to five times what it costs in the cities, and fuel is the biggest reason. At an energy conference in May, AVEC's William Stamm said the cooperative's cost of service last year was $74 million, and that "the cost of fuel is more than half of our total cost of generation and distribution." Fuel is billed separately from this increase, through its own adjustment.

It's not the first such increase. AVEC raised rates in 2024 as well, saying at the time it works to keep rates low but needs the increases to pay its bills.

A telephone public hearing is set for Sept. 9 at 10 a.m., where members can ask questions and comment before the board votes to approve, reject or change the rates. The account of the increase comes from AVEC's own notice; the rate tables for each community are available through the cooperative.