Residents in Aniak face exponential price hikes in power bills

ANIAK, Alaska (KTUU) - Residents of Aniak were shocked by the increase in their power bill, which some say is up at least four times the previous month.

Some living in the small Western Alaska community provided electric bills showing a rapid rise of 15 cents per kilowatt in March to $1.46 in June.

“My residence (costs) went from summertime months of $150, close to $600,” Aniak resident Dave Diehl said.

Diehl says that many community members in Aniak are considering leaving due to the cost, but as a resident of Aniak for over 40 years, he says he is too old to consider moving.

“There’s no way anybody could afford this, especially the elderly people, people on low income,” Aniak resident Lee Morgan said. “My power, my light bill, went from like $250 a month to $1,000.”

The Regulatory Commission of Alaska hosted a public meeting Wednesday morning, and residents of Aniak say 35 members of the community took the time to voice their concerns to the department, but are unsure what action will be taken in the future.

“I would like to have another meeting with RCA and see what we could come up with,” Morgan said. “They didn’t answer any of our questions right off the bat.”

Aniak Light and Power President Darlene Holmberg attributed the rising costs to fuel prices, which she says rose from $2.66 per gallon to $5.39 a gallon — a 75% spike — from 2021 to 2022.

“My filing in April was approved on May 18, and I was disheartened that it was approved as filed,” Holmberg said. “It was an exorbitant increase, reflecting last year’s fuel that cost over $5 a gallon.”

Holmberg said when she submitted her filing to the state, she was hoping the high cost was due to a clerical mistake that a tariff analyst would catch and correct, but that she did end up getting approved.

“We have to work with what we’re stuck with unless the state can come along and say, ‘Here’s a correction, here’s an adjustment,’ and give me that option,” Holmberg said. “I can’t make up numbers or change something that has come to pass.”

When asked why electricity bills quadrupled for some Aniak residents while fuel only doubled in price, Holmberg said she was unsure herself.

“I’m working with what RCA calls approved methodology; a prescription from the state that this is what I do and what gallons I use, submit my fuel invoices for backup data generation fuel, and any previous overcollection or under collections based on prior tariff filings,” Holmberg said

Holmberg further said the price for electricity will increase to $1.65 in August.