Healy Lake fuel surcharge more than triples; 750 kWh bill rises $7

Alaska Power Company's 16 customers at Healy Lake now pay a fuel surcharge more than three times higher, though a larger state power cost equalization (PCE) credit absorbs most of the increase for households. The Regulatory Commission of Alaska approved the rates Thursday, effective Friday, Oct. 2.

The surcharge rises from $0.0753 to $0.2696 per kilowatt-hour and the PCE credit from $0.3893 to $0.5739, according to the commission's letter order. PCE covers only household use up to 750 kilowatt-hours a month and community facilities. Other customers pay the full increase of about 19 cents per kilowatt-hour. The rate the company pays small generators rises from $0.5519 to $0.5672.

For a household using 750 kilowatt-hours, staff's sample bill rises from $467.66 to $613.38 before the credit. After the credit, it rises from $175.68 to $182.95, up $7.28, or 4.14%.

Staff cited higher projected fuel use, from 2,194 to 2,246 gallons, and a smaller over-collection credit in the balancing account, down from about $9,100 to about $6,000. The tariff projects fuel at $4.69 a gallon. The update came between regular filings because the account crossed 10% of annual fuel costs in June. No public notice was required because the filing did not change how the charge is calculated. The commission's practice is to issue one when a fuel-charge filing raises a residential bill 20% or more.

The commission also waived two rules. Healy Lake's diesel generators produced 9.3 kilowatt-hours per gallon in June, short of the 9.5 standard. Applying it would have cut the PCE credit by $0.0032 per kilowatt-hour and raised bills, staff said. The company, which has installed two smaller, more efficient engines sized to the load, said imposing the standard "may make safe and reliable electric service economically unfeasible."

The company also estimated 405 of the 4,708 kilowatt-hours sold in June because its watchperson could not read the meters. Staff said the outdated system cannot furnish retroactive reads. Since November 2025, bills have shown when an estimated read was used. "It is currently unavoidable for APC to estimate bills as provided for by current regulations and its tariff without also passing estimated sales data through the COPA balancing account," Gretchen Larsen, chief of the commission's finance section, said in the staff memorandum.

The commission has granted similar waivers before, most recently Sept. 16. The next quarterly fuel-charge filing is due Oct. 15.