Low Cost, Reliable Power: How Does Anchorage Compare?

Abstract

Costs of doing business in Alaska remain generally high, but the low cost and reliability of electric power in Anchorage has been a bright spot on the economic landscape—thanks largely to abundant supplies of natural gas from Cook Inlet and to creation of a unified power grid for the railbelt. This research summary presents data on the changing cost and reliability of electric power from Municipal Light and Power (ML&P)—one of Anchorage’s two electric utilities—from 1960 through 2004. It concludes with a brief discussion of the outlook for the utility, given rising natural gas prices.