Chugach Electric files review of base rates

Chugach Electric Association, Inc. (Chugach) filed a request with the Regulatory Commission of Alaska (RCA) to update its base rates, which is known as a general rate case, on August 18, 2025. Chugach is requesting a 3% permanent increase to total retail bill levels compared to current rates.

In its filing, Chugach states that it “continues to see increases in costs and declines in sales.” Through June 2025, sales have decreased over 3%, primarily due to an unusually warm winter. These combined pressures have resulted in a revenue shortfall of approximately $11.2 million, according to the filing.

With the coming of fall and winter storms, Chugach officials say it is imperative that the utility is able to meet the needs of its members. “To manage Chugach’s operations and fulfill its mission of providing safe, reliable, and affordable electric service to its members, Chugach must ensure its revenue is sufficient to cover expenses and meet operational needs,” the RCA filing states. 

In February of this year, Chugach members received a net rate increase on a total bill basis of 4.3%. However, the utility says, the combination of warmer weather, declining sales, increased costs, and the resulting decline in operating margins of more than 40% threatens Chugach’s ability to meet minimum financial requirements.

In order to change base rates, a utility must request the change and approval from the RCA, which determines whether the rates are just and reasonable. Chugach’s rate case filing will include a public comment period provided for by the RCA. 

Members can estimate what their new rates would be if the increase is approved by using the rate calculator on the Chugach website. https://www.chugachelectric.com/your-cooperative/regulatory-affairs/rate-calculator