Come 1999, rural electric consumers across the state will feel the effects of the PCE program's passing. For some time now, KEA has been working to prepare itself for the time when PCE no longer exists. In an effort to minimize the effects on its consumers, KEA has been working aggressively to keep electric costs down. KEA has replaced engines with more efficient and cost-effective models. The cooperative has also been successful at keeping the cost of diesel fuel down.
Fuel is a major cause of high energy rates in rural Alaska.
KEA is part of a buying cooperative that can leverage its purchasing power in order to buy cheaper fuel. We won't see the rate shock some of the small villages will see. The cooperative is also exploring alternative energy sources that may help offset the higher electric costs that are just over the horizon. KEA has been a pioneer in bringing wind technology to the Arctic, in hopes of offering a cheaper way to generate energy. Even with these cost-saving measures, however, KEA consumers will still be affected by the lack of PCE reimbursement.