Electric bills will see a one-time jump this month as utility customers absorb the financial impact of a 10-day regional hydropower shutdown.

The additional cost comes after the municipal utility relied on back-up diesel generation while the Southeast Alaska Power Agency temporarily cut off hydroelectric power from Lake Tyee for annual line and plant maintenance in June.

Generating that replacement electricity came with a heavy price tag: The community consumed 523,401 kilowatt-hours of power on generators from June 10 through June 19, burning through 48,073 gallons of diesel and 331 gallons of lubricating oil. In total, running the diesel generators added $250,857 in unbudgeted costs.

Those expenses translate into a fuel surcharge of nearly 48 cents per kilowatt-hour, which will be passed along to customers on their August billing statement.

For an average residence in Wrangell that consumes around 900 kWh per month, the diesel surcharge will add about $100 to their bill.

In Petersburg, which also relies on Tyee power, officials chose to waive customer charges for their own recent diesel run.

However, Wrangell’s municipal code prevents the borough from offering the same financial waiver, said Finance Director Rob Marshall.

The municipal code mandates an immediate wholesale power rate adjustment on customer bills whenever purchasing costs fluctuate due to hydroelectric intertie agreements with the Southeast Alaska Power Agency.

“I understand the community’s frustration when comparing decisions made by communities of similar size,” Marshall said. “However, Wrangell’s rates and surcharges are established intentionally and are limited to what is necessary to operate the utility reliably and maintain a sustainable fund balance.”

Looking ahead, administrators hope to cushion the blow of future maintenance shutdowns.

“We are also continuing to work with our regional partners on projects that may reduce future diesel generation costs,” Marshall said. “Once SEAPA’s solar project is operational, we are hopeful that it may help offset a significant portion of the costs associated with annual diesel runs.”

The power agency plans to erect a $6 million solar panel farm on 44 acres of borough land uphill from Zimovia Highway, between Shoemaker Harbor and the 6-Mile Mill site. The agency is targeting a 2028 completion date for the project.