Notice of Utility Tariff Filing
The REGULATORY COMMISSION OF ALASKA (Commission) gives notice that Matanuska Electric Association, Inc. (MEA) filed TA470-18, requesting approval of a Gas Sale and Purchase Agreement (GSA) with Hilcorp Alaska, LLC (Hilcorp). The GSA will provide a firm supply of natural gas that MEA will use to fuel its Eklutna Generation Station with delivery beginning on April 1, 2018, and terminating on March 31, 2023.
The proposed GSA includes a minimum and maximum volume for each contract year. Gas deliveries will be delivered on a firm basis and are not to exceed 28,000 Mcf per day. Pricing and volumes under the proposed GSA are as follows:
| Contract Year | Pricing Period | Sales Price (Dollars/Mcf) | Minimum Volumes (MMcf) | Maximum Volumes (MMcf) |
| 1 | 4/1/2018 – 3/31/2019 | $7.55 | 5,900 | 6,600 |
| 2 | 4/1/2019 – 3/31/2020 | $7.70 | 5,959 | 6,666 |
| 3 | 4/1/2020 – 3/31/2021 | $7.86 | 6,019 | 6,732 |
| 4 | 4/1/2021 – 3/31/2022 | $8.01 | 6,079 | 6,800 |
| 5 | 4/1/2022 -– 3/31/2023 | $8.17 | 6,140 | 6,868 |
The GSA also features a Turndown Option giving MEA a one-time, irrevocable option to lower the minimum annual volume it is required to purchase each contract year. If the Turndown Option is exercised, the price of gas is increased by $0.25 per Mcf in the contract year in which the Turndown Option becomes effective and the succeeding contract years. If MEA does not take its minimum annual volume in any of contract years 1 through 4 because its requirements were less than the minimum annual volume specified for that contract year, the price for gas in the following contract year is adjusted to include the cost of the untaken gas.
This notice does not contain all requested revisions and the Commission may approve a rate or classification which varies from that proposed. You may obtain more information about this filing by contacting Mary Vittone, Fuel Supply at MEA, at PO Box 2929 Palmer, AK 99645; phone: (907) 689-9360, or by email at mary.vittone@mea.coop. The complete filing is also available for inspection at the Commission's office at 701 West 8th Avenue, Suite 300, Anchorage, AK 99501; phone (907) 276-6222, or may be viewed at the Commission's website at http://rca.alaska.gov by “TA470-18” in the Find a Matter search box.
To comment on this filing, please file your comments by 5:00 pm, May 23, 2016, at the Commission’s address given above, or via our website at:
http://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx
Please reference TA470-18 in your comments and include a statement that you have filed a copy of the comments with MEA at its address given above. Individuals or groups of people with disabilities, who require special accommodations, auxiliary aids or service, or alternative communication formats, please contact Joyce McGowan at (907) 276-6222, toll-free at 1-800-390-2782, or TTY (907) 276-4533 or send a request via electronic mail to rca.mail@alaska.gov by May 16, 2016.
DATED at Anchorage, Alaska this 22nd day of April 2016.
REGULATORY COMMISSION OF ALASKA
Julie C. Vogler
Finance Section Manager