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Alaska Electricity Information

Alaska’s electricity generation is unique due to its isolated grids and reliance on local energy sources. Most power comes from natural gas, especially in the more populated Railbelt region, while remote communities often depend on diesel. Hydropower also plays a significant role, particularly in Southeast Alaska. Electricity prices are among the highest in the nation, reflecting the costs of fuel transportation and maintaining independent grids. While Alaska’s emissions from electricity generation are relatively low compared to other sectors like oil and gas production, efforts to expand renewables, including wind and hydro, are helping reduce reliance on fossil fuels and improve long-term energy sustainability.

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Electricity Production

Primary Source

Natural Gas

Total Generation: 6,717,825 MWh
Ranks 48th Highest in the U.S.
Average Price: 26.88¢ /kWh
Ranks 45th Cheapest in the U.S.
Average Electric Bill: $132.54
Ranks 22nd Cheapest in the U.S.

Electricity Production By Source

Emissions From Electricity Generation

Carbon Dioxide Emissions Rank

44th Highest

3,605 TMT

Sulfer Dioxide Emissions Rank

39th Highest

2,070 tn

Nitrogen Oxide Emissions Rank

22nd Highest

22,403 tn

Renewable Electricity Generation

Renewable Production Rank

43rd Highest

1,884,806 MWh
28.06% of Total Production

Source U.S. Energy Information Administration (EIA) Based on data from 2023

Municipal Utilities in Alaska

While most cities, towns, and villages throughout the state of Alaska offer municipal essential services like providing clean water, sewage treatment and dealing with waste and storm water, some also offer other services like electricity, natural gas, sanitation or recycling. In Alaska, 33 cities offer municipal electricity utility services to their residents.

Largest Electric Companies in Alaska

The rest of Alaska receives electric utility service from one of many primary providers. Here’s a list of some of the larger providers that might be available to your home:

Alaska Natural Gas Information

Alaska occupies a unique position as both a massive producer and a high-intensity consumer of natural gas, largely driven by its demanding Arctic and subarctic climates. Because the state experiences some of the harshest winters in North America, its residents face a critical need for reliable thermal energy, resulting in the highest per capita energy consumption in the United States. While much of the state’s vast gas reserves on the North Slope are reinjected to assist in oil production, the natural gas pulled from the Cook Inlet remains the lifeblood of the state’s most populated regions, providing a steady shield against the extreme cold.

Statistically, natural gas is the cornerstone of Alaskan home life, with approximately 49% of all households, roughly 142,000 homes, relying on it for primary heating as of 2025. This dependency is even more pronounced in the South-Central urban corridor, where three out of every four homes are gas-heated. Despite its vital role in keeping Alaskans warm, the residential sector only accounts for about 16% of the state’s total natural gas usage, as the majority of the resource is dedicated to industrial operations and generating nearly 44% of the state’s electricity.

The primary reason Alaska reinjects nearly 8 billion cubic feet of natural gas daily is that the resource is currently “stranded” on the North Slope with no physical way to reach outside markets. While the famous Trans-Alaska Pipeline System (TAPS) is a marvel of engineering, it is designed exclusively for liquid crude oil, not gas. Building a separate, 807-mile pressurized gas pipeline across the state’s rugged, seismically active terrain carries a staggering price tag, currently estimated at roughly $44 billion. Historically, the abundance of cheap shale gas in the Lower 48 made such a massive investment difficult to justify, leaving the gas with nowhere to go.

Instead of letting this gas go to waste, engineers use it for Enhanced Oil Recovery (EOR). By reinjecting the gas back into the reservoirs at immense pressure (sometimes exceeding 10,000 psi), they maintain the underground force necessary to push liquid crude oil toward the surface. This effectively treats the gas as a “reusable tool” to maximize oil production until a transport solution exists. However, as of late 2025, the project to “unstrand” this gas, known as Alaska LNG, has gained significant momentum. With new international partnerships and updated federal permits, the state is currently moving toward a potential construction start in 2026, aiming to finally connect these vast Arctic reserves to the rest of the world by the early 2030s.

Average Natural Gas Price

$1.518 /CCF

Ranks 13th Cheapest in the U.S.

Average Natural Gas Bill

$70 /month

Ranks 9th Cheapest in the U.S.

Natural Gas Usage Per Capita

5th Lowest

Average Per Person: 173.41 MCFs Annually

Largest Natural Gas Companies in Alaska

Many of the residents of Alaska receive their natural gas utility service from one of the larger companies that service the state.

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Alaska Internet Connectivity

Broadband Availability

68.32%

Ranks 2nd in the U.S.

Percent of Ppopulation with access to 100 Mbps download and 20 Mbps upload

1 Gig Availability

5.54%

Ranks 2nd in the U.S.

Percent of population with access to download speeds of 1 Gbps

Fiber Availability

8.23%

Ranks 1st in the U.S.

Percent of population with access to Fiber Internet

Largest Internet Providers in Alaska

When it comes to high-speed internet, homes in Alaska have plenty of options to stay connected! From bustling cities to quiet rural areas, a variety of providers offer reliable service across the state. Here are some of the biggest names keeping Alaska homes online and in the loop:

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The Railbelt vs. Rural Microgrids

Energy in Alaska is divided into two distinct worlds. Approximately 75% of the state’s population resides on the Railbelt Grid, a 500-mile transmission system connecting the Kenai Peninsula to Fairbanks. This region benefits from diverse energy sources like natural gas and hydropower.

In contrast, over 200 remote communities operate on Microgrids, self-contained systems powered almost exclusively by diesel generators. Because fuel must be flown or barged in, electricity in rural Alaska can cost three to five times more than in urban centers. Many of these communities are served by the Alaska Village Electric Cooperative (AVEC), which manages one of the most complex microgrid networks in the world.

Heating Oil and Propane: The "Invisible" Utilities

For many Alaskans, "utilities" aren't delivered via a pipe, but via a truck.

Heating Oil & Toyo Stoves: In areas without natural gas, high-efficiency oil heaters like Toyostoves are the standard. Most residents use an Auto-Fill service through local fuel companies to ensure their tanks never run dry during a blizzard.
Propane: Widely used for cooking and water heating in rural homes. It is critical to schedule refills before the "deep freeze" (typically late October), as extreme temperatures can make propane delivery difficult or impossible.

Arctic-Specific Utility Maintenance

Maintaining a home in a subarctic climate requires specific hardware to prevent catastrophic damage:

Heat Tape: These are electric cables wrapped around water pipes to prevent freezing. While essential, they are "energy hogs" that can significantly increase your winter electric bill.
Engine Block Heaters: In the Interior, temperatures often drop below -40°F. Vehicles must be "plugged in" to a 110V outlet to keep engine fluids from solidifying.
HRV Systems: Because Alaskan homes are heavily insulated, they require Heat Recovery Ventilators (HRVs) to exchange stale indoor air for fresh outdoor air without losing heat, preventing moisture and mold buildup.

Rural Sanitation: Water Haul and Holding Tanks

Not every Alaskan home has piped water and sewer. Many residents rely on alternative systems:

Water Haul & Holding Tanks: Homes may have 500–1,000 gallon internal tanks. Residents either haul water themselves from a central community watering point or pay for delivery by truck.
Septic Holding Tanks: In areas with permafrost where leach fields aren't possible, sewage is stored in a holding tank and must be pumped out periodically by a vacuum truck.
Honey Buckets: In roughly 30 remote villages, residents still use a "honey bucket" system. Organizations like the Alaska Native Tribal Health Consortium (ANTHC) are working to replace these with modern, self-contained sanitation units.

Telecommunications: The Satellite Revolution

Internet in Alaska is famously expensive due to the "Last Mile" challenge.

Terrestrial Providers: GCI and Alaska Communications provide high-speed fiber and cable to the Railbelt and larger hubs.
Starlink: Since 2023, Starlink has revolutionized rural Alaska, providing high-speed, low-latency internet to remote areas that previously relied on slow, expensive geostationary satellites.

Power Cost Equalization (PCE)

To keep rural life sustainable, the Power Cost Equalization (PCE) Program provides state-funded credits to residents in eligible rural communities. This program effectively lowers the cost of the first 500 kWh of electricity each month to levels comparable to Anchorage or Fairbanks, protecting residents from the full burden of diesel-generated power costs.

Understanding Your Bill: The COPA Charge

When reviewing your electric bill, you will notice a line item called COPA (Cost of Power Adjustment). This is a quarterly adjustment approved by the Regulatory Commission of Alaska (RCA) that allows utilities to pass through fluctuations in the cost of fuel. If natural gas or diesel prices rise, your COPA will increase; if they fall, you may see a credit on your bill.

New Resident Checklist

Setting up utilities in Alaska requires more foresight than in most other states. Because many regions rely on scheduled fuel deliveries or specialized winter hardware, we recommend starting this process at least three weeks before your move-in date.

Phase 1: Pre-Arrival (3+ Weeks Out)

Identify Your Service Area: Determine if you are on the Railbelt Grid or a Rural Microgrid. This dictates whether you’ll have 24/7 piped utilities or need to manage fuel tanks and water hauling.
Contact Electricity & Gas Providers: Most Alaskan utilities require a credit check. If your credit is established, they may waive the deposit; otherwise, expect to pay between $75 and $250 per utility.
- Anchorage: Chugach Electric and ENSTAR Natural Gas.
- Fairbanks: Golden Valley Electric (GVEA) and Interior Gas Utility.
- Mat-Su Valley: Matanuska Electric (MEA) and ENSTAR.
Set Up Heating Oil/Propane Accounts: If your home uses heating oil (common in Fairbanks and rural areas), contact a vendor like Crowley or Sourdough Fuel to set up an "Auto-Fill" account. Never let your tank drop below 1/4 full in winter.

Phase 2: Move-In Week

Transfer Water & Sewer: In major cities, contact the municipal utility (e.g., AWWU in Anchorage). If you have a private well or septic system, schedule an inspection and pump-out to ensure the system is "winter-ready."
Schedule Internet/Satcom Installation: Because of Alaska's terrain, "self-installs" often fail. Schedule a technician from GCI or Alaska Communications early, or order your Starlink kit at least a month in advance.
Verify Your "Freeze Protection": Check that your home’s heat tape is plugged in and functioning. If your home has an HRV (Heat Recovery Ventilator), ensure the filters are clean to prevent indoor ice buildup on windows.

Phase 3: The "Alaska Resilience" Checklist

Update Your Driver’s License: You must transfer your license to Alaska within 90 days of becoming a resident. You will need your new utility bills as proof of residency for the Alaska DMV.
Install Carbon Monoxide Detectors: With high-intensity gas and oil heating, CO detectors are legally required and life-saving in airtight Alaskan homes.
Prepare for "The Darkness": Winter electricity usage in Alaska is significantly higher due to lighting and engine block heaters. Budget for your electric bill to be 30–50% higher from November through March.

Winter Emergency Kit

In Alaska, a utility outage during a winter storm isn’t just an inconvenience, it’s a life-safety event. Temperatures can drop 40 degrees in a matter of hours, and if your primary heat source fails, your home can reach freezing temperatures internally within a day.

Below is a specialized Winter Emergency Kit checklist designed for the specific challenges of the Last Frontier.

1. The "Warmth & Shelter" Core

If the power or gas goes out, your goal is to create a "micro-climate" to preserve body heat.

Arctic-Rated Sleeping Bags: Ensure you have one per person rated for at least -20°F.
The "Room-Within-A-Room" Setup: Keep a four-season camping tent or heavy plastic sheeting and duct tape. Setting up a tent inside a central room and having everyone sleep inside it can raise the internal temperature by 10–15 degrees through body heat alone.
Non-Cotton Base Layers: Follow the "Snot is Cotton" rule, cotton traps moisture and kills. Use wool or synthetic thermal layers.
Hot Water Bottles: If you have a way to heat water (like a gas stove or camping stove), a classic rubber hot water bottle tucked into a sleeping bag can provide 6+ hours of critical warmth.

2. Alternative Light & Power

Winter in Alaska means near-total darkness. Standard flashlights are insufficient for long-term outages.

Headlamps with Lithium Batteries: Lithium batteries perform significantly better in extreme cold than alkaline ones. Headlamps keep your hands free for melting snow or repairing pipes.
NOAA Weather Radio: A hand-crank or battery-powered radio is essential for receiving updates when cell towers are overwhelmed or down.
Power Stations: A portable "solar generator" (like a Jackery or Bluetti) can keep phones charged and run small electric blankets for hours without the fumes of a gas generator.

3. Food & Water Survival

Manual Can Opener: A simple but often forgotten tool for accessing shelf-stable calories.
Water Storage & "Snow-to-Water" Tools: Store 1 gallon of water per person per day. If you run out, you must be able to melt snow. Keep a camping stove (for outdoor use only) and a dedicated pot for melting snow. Note: Never eat raw snow for hydration; it lowers your core body temperature and causes dehydration.
High-Calorie Snacks: Your body burns significantly more calories trying to stay warm. Stock nuts, peanut butter, and dried meats.

4. Critical Safety Equipment

Carbon Monoxide (CO) Detector: If you are using a fireplace or an indoor-safe propane heater (like a Mr. Heater Buddy), a battery-operated CO detector is non-negotiable.
Fire Extinguisher: Increased use of candles and alternative heat sources significantly raises the risk of home fires during outages.
Ice Melt and Shovels: Ensure you can clear a path for emergency responders or fuel delivery trucks if they are able to reach you.

Official Resources for Alaskan Preparedness:

Utility Costs in Alaska

The average monthly total utility bills in Alaska is $289.9, which is 4.6% higher than the national average.

Average Electric Bill

$133

Lower than national average

Average Natural Gas Bill

$70

Lower than national average

Average Water Bill

$87

Higher than national average

Assistance Programs for Paying Utility Bills in Alaska

Living in the Last Frontier brings unmatched beauty, but the harsh subarctic climate also brings significant heating costs. If you are struggling to keep up with your utility bills, Alaska offers several robust assistance programs designed to ensure no household is left in the cold. The cornerstone of these efforts is the Heating Assistance Program (HAP), Alaska’s version of the federal LIHEAP. This program provides a one-time annual payment directly to your utility or fuel vendor. Applications typically open each year on October 1st, but if you are facing a 48-hour shut-off notice or have run out of heating fuel, you may qualify for Crisis Assistance, which is processed urgently to restore your service.

For long-term relief, the Alaska Housing Finance Corporation (AHFC) Weatherization Program provides free home improvements, such as insulation and furnace repairs, to help low-to-moderate income families reduce their energy consumption permanently. Alaska also offers specialized support for vulnerable populations:

Seniors: Residents aged 60 or older can apply for heating assistance a month early (starting in September) to ensure their credits are in place before the first freeze. Additionally, the Senior Benefits Program provides monthly cash assistance that can be used for any cost of living, including utilities.
Veterans: Former service members can access the Supportive Services for Veteran Families (SSVF) program, which offers emergency financial aid for utility arrears to prevent homelessness. The VFW Unmet Needs program also provides grants of up to $1,500 for basic necessities including heat and electricity.
Students: While traditional students are eligible for state programs like HAP, those attending the University of Alaska Anchorage or University of Alaska Fairbanks can apply for campus-specific emergency student support funds if an unexpected bill threatens their ability to stay enrolled. Learn more in the Student Utility Guide

For all state-run programs, you can apply directly through the Alaska Connect Portal to manage your benefits online.