Energy relief payment: How much money do Alaska residents get to help with high energy costs?

Every year Alaskan residents receive a lump sum payment as a result of the state’s highly profitable oil industry. The payments, known as the Permanent Fund Dividends (PFD), come with annual application process and residency requirement but the majority of Alaskans typically receive the support.

This year’s payments will be boosted by an additional $650 payment designed to offset high energy costs for consumers. A statement from Gov. Mike Dunleavy’s office has confirmed that the combined total of the 2022 payment will be $3,200 per person.

When will the Alaska Permanent Fund Dividend arrive?

Typically the annual payments are sent out in the fall but this year the state is eager to get the support out a little earlier, to help those who are struggling with the high price of energy and gasoline.

Recipients who requested the money in the form of a direct deposit will start to see the payment in their accounts from 20 September. Those who submitted a paper application or who requested a physical check will have to wait a touch longer, and should start to see their payments arrive from 3 October.

The usual PFD and this year’s $650 energy relief payment will be combined and sent out in a single payment. The state’s Department of Revenue has confirmed that it is currently working through more than 78,000 applications to determine their eligibility for the support.

Last year, the first payments were not sent out until mid-October and the dividend was worth just $1,114.

Gov. Dunleavy says the support will help cover high energy costs

Dunleavy was a member of the Alaska Senate from 2013 to 2018, before being elected as the state governor that same year. He survived a recall attempt in 2019 after announcing a 41% reduction in certain public sector budgets but maintains considerable popularity in the state.

In announcing this year’s huge dividend, he said: “Alaskans have waited seven long years to receive a fair and sizable dividend, and it couldn’t have come at a more important time.”

He continued: “Alaskans, especially in rural communities, will have to pay extraordinarily high fuel and heating oil bills this winter, and rampant inflation is forcing all Alaskan families to pay more for basic needs, like food and medicine. We need to stop determining what amount the PFD will be using an arbitrary political process. Alaskans deserve a constitutional amendment that protects the PFD from politicians and special interests, and sets out a funding formula we can all count on.”