Why Anchorage’s shrinking electricity use could mean bigger bills

For years, the main concern about Anchorage’s power supply has been whether natural gas will run out. But there’s a quieter issue making bills rise: people are using less electricity. Over the past 15 years, power use in Chugach Electric’s territory has dropped by about 1% each year. In 2025, it fell another 2. 3%. That might sound like good news—better appliances, brighter LED lights, and warmer winters all help. But behind the scenes, it’s causing a problem. Electric utilities like Chugach charge customers based on how much power they use. However, the wires, substations, and power plants still cost the same to maintain, no matter how much electricity flows through them. Fewer users mean those fixed costs get split among fewer people, pushing rates higher. Chugach’s CEO has pointed out that a 1% drop in power sales leaves about $2. 5 million in uncovered expenses. When demand stays low, everyone’s bill grows. The solution isn’t just about finding more gas or building new green energy projects. It’s about getting more people and businesses to use power in steady, predictable ways. Not all growth helps existing customers equally. Some industries, like data centers or factories, could stabilize demand and spread costs. But the challenge is making sure new users benefit everyone, not just newcomers.This isn’t just an Anchorage problem. Similar cities in cold climates have faced it too. Take Luleå, Sweden—a place with harsh winters and limited industry. Over the last decade, it turned into a hub for clean steel and battery factories, all powered by cheap hydroelectricity. The key wasn’t luck—it was planning. Utilities, city leaders, and businesses worked together to match energy supply with real demand. Alaska faces a tougher version of this puzzle since it has to attract new industry first. Still, the idea is the same: energy, economy, and policy need to align. Right now, Chugach has extra capacity to serve more customers. If big power users moved in, the grid’s fixed costs could spread further, potentially lowering bills for everyone. Clean energy projects that seem too expensive now might become affordable. And as Alaska’s power grid grows, Chugach’s role could expand beyond Anchorage. The takeaway? Lower bills and stronger energy security depend on more than just gas supply. They depend on smart choices today—about who uses power, how much they use, and how the system supports them all.