Electric bills will see an annual surcharge this month as utility customers absorb the financial impact of a 10-day regional hydropower shutdown.
The additional cost comes after the municipal utility relied on back-up diesel generation while the Southeast Alaska Power Agency temporarily cut off hydroelectric power from Lake Tyee for annual line and plant maintenance in June.
Generating that replacement electricity came with a heavy price tag: The community burned through 48,073 gallons of diesel and 331 gallons of lubricating oil. In total, running the diesel generators added $250,857 in costs.
Those expenses translate into a fuel surcharge of nearly 48 cents per kilowatt-hour, which will be passed along to customers on their August billing statement.
For an average residence in Wrangell that consumes around 900 kWh per month, the diesel surcharge will add about $100 to their bill.
Looking ahead, administrators hope to cushion the blow of future maintenance shutdowns.
“We are continuing to work with our regional partners on projects that may reduce future diesel generation costs,” Borough Finance Director Rob Marshall said. “Once SEAPA’s solar project is operational, we are hopeful that it may help offset a significant portion of the costs associated with annual diesel runs.”
The power agency plans to erect a $6 million solar panel farm on 44 acres of borough land uphill from Zimovia Highway, between Shoemaker Harbor and the 6-Mile Mill site. The agency is targeting a 2028 completion date for the project.
