Mat-Su power bills climb as Alaska's energy squeeze bites

Mat-Su electric bills are going up about $14.53 a month starting this summer — and the reasons say a lot about the tight spot Southcentral Alaska's energy supply is in.

Matanuska Electric Association's board approved a 29.4% jump in the surcharge that passes fuel and power costs straight to members. Base rates aren't changing, but this piece makes up more than a third of a typical bill, so the hit is real.

Several things stacked up at once. A cold spring drove more heating demand than MEA planned for, running up a fuel bill members now have to repay. At the same time, the co-op had less cheap power to lean on: maintenance outages at neighboring Railbelt utilities cut the pooled electricity available, and low water levels dropped hydro output across the region — pushing MEA toward pricier natural gas to keep the lights on. On top of that, MEA started paying Hilcorp about $170,000 a month in April just to store natural gas, a cost now baked into every member's bill.

There's a bit of relief on the horizon. MEA says the surcharge should come back down once it recovers the shortfall, assuming fuel prices and usage hold through summer.