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June 17, 2009 at 2:56pm

Chugach files to lower 3rd Quarter rates

The cost of electricity is coming down as the price of natural gas continues to decline from the peak prices seen early in the year. Chugach Electric Association has filed a request with the Regulatory Commission of Alaska to lower rates for customers in the third quarter of the year. If approved by the Commission, the cost of power would be reduced for Chugach's retail customers, and for wholesale customers Matanuska Electric Association and Homer Electric Association

The lower rates would come in the form of a reduction in the fuel charge assessed on a per kilowatt-hour basis to cover the cost of the natural gas used to generate power. Chugach buys gas from four suppliers under contracts with prices tied to changes in the indexed price of crude oil, heating oil and natural gas.

If approved, the total monthly bill for a Chugach residential customer using 700 kilowatt-hours of electricity will decrease about 11 percent, from $113.76 per month to $101.25. Commercial customers would see similar reductions.

Wholesale customers Matanuska Electric Association and Homer Electric Association will also see similar decreases in the fuel charge.

Chugach's new rates are proposed to go into effect in July and remain in place through September. Chugach expects a ruling from the RCA by the end of June.

Chugach is the largest electric utility in Alaska, providing power for Alaskans throughout the Railbelt through retail, wholesale and economy energy sales.

For more information, contact Phil Steyer, 762-4766 (desk) 242-1417 (cell)