Palmer, AK – Matanuska Electric Association’s (MEA) Board of Directors recently convened a workshop to explore multiple project options aimed at addressing the anticipated natural gas supply shortage in Southcentral Alaska and diversifying MEA’s energy portfolio. The Board reviewed a range of options, considering their potential impacts on costs, reliability, rates, and other critical factors such as permitting, environmental considerations, and development timelines.

The projects under discussion encompass a variety of energy solutions, including wind, solar, hydro, geothermal, gas storage, LNG imports, pipeline development, coal, nuclear and diesel along with energy efficiency measures. “Our board is focused on finding solutions that allow for short-term certainty with long-term flexibility to meet our mission of affordable and reliable power,” said MEA Board President Bill Kendig. “We will leave no stone unturned as we seek to make the best decisions for our co-op’s future.”

Initial analysis indicates that future energy projects will likely lead to rate increases in the near term. These increases are primarily driven by higher fuel costs associated with bridging solutions for firm power, as well as necessary infrastructure investments. While these costs are expected to rise initially, MEA will work to stabilize rates once long-term solutions are implemented. Additionally, MEA is actively pursuing federal and state funding options to help offset the cost burden for its co-op members.

In parallel, Excelerate Energy, a global LNG import company, recently announced its intention to collaborate with Southcentral utilities to provide natural gas deliveries to temporary terminals as early as 2028. "MEA’s Board of Directors has reviewed various projects to address the uncertainty surrounding gas supplies in the Cook Inlet," said Julie Estey, MEA’s Chief Strategy Officer. "We remain committed to working with other Southcentral utilities and engaging in commercial discussions with organizations capable of delivering viable solutions to meet the needs of our electric co-op members."

At this stage, no specific terms or contracts have been finalized for any project developments. Additional studies are currently underway for some of these proposals, with the Board expected to make key decisions in the near future. MEA members are encouraged to provide feedback on the cooperative’s future energy supply during regular Board meetings, held on the second Monday of each month. For more information on how to participate in a Board meeting, please click here.

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