Tariff Changes & Upcoming Elections
On February 2, 2026, the Alaska Village Electric Cooperative(AVEC) board approved changes to the AVEC tariff that included changes to provisions of the tariff which went into effect immediately, and a rate increase that will go into effect for power use on or after March 1, 2024.
The rate increase was approved to keep pace with inflation. In 2025, AVEC finished the year with an operating loss, meaning the money collected at the current rates was not enough to cover operating expenses. Since the last rate increase 2 years ago, the consumer price index for urban Alaska has risen 2.4%. The rate increase going into effect in March is expected to raise revenue 2.75%. This modest increase will allow AVEC to reduce its operating losses in 2026 and hopefully end with a positive operating margin.
New language in the tariff now allows AVEC to offer Prepaid Service. Many non-AVEC rural communities have used a special “Ampy” meter and card payment system to let electric customers control their energy bills by paying in advance for any power they use. When their account balance is zero, the power shuts off until they add more money. With AVEC’s new billing software and broadband internet connectivity, we can offer this same option with our existing meters and allow people to pay by phone and internet at any time of day. The option to stay on traditional monthly billing is still available.
Other revisions in the tariff include but are not limited to, defining when bills are considered past due and delinquent to the 1st and 15th of the month the month after the bill is rendered; adding reasons to be considered for Community Extraordinary Costs; adding newer member villages to tables and schedules; and increasing in the late payment fee from $5 to $10. For more details, a summary of all the changes and the full edited tariff can be found on the AVEC website.
Keep an eye out, later this month, all AVEC members will receive mail, and if you have signed up for notifications, emails, and texts for the 2026 election. This year, there are 2 proposed ballot measures for changes to the bylaws and six candidates running for 2 board seats that will term out in April. All ballots must be received by April 22 at 5 PM to be counted. You can vote by mail or vote online, but vote early so you know your vote will be counted. Election results will be announced at the AVEC Annual Meeting on April 23, 2026.
Until next time,
Bill Stamm