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Energy rates could increase in July

Posted: June 9, 2011 - 7:32am

Homer Electric Association filed for a rate increase with the Regulatory Commission of Alaska as part of its quarterly filing.

If approved, the wholesale power cost rate adjustment would go from 4.171 cents to 4.307 cents. That’s a less than one percent increase to the overall energy cost, which would go from 18.793 cents per kilowatt hour to 18.929 cents.

The increase would go into effect on July 1, although the commission is not required to make a decision until July 18. No hearing dates have been announced, although commissioners have been assigned to the case.

According to HEA’s announcement, the average residential bill would go up about 86 cents. That’s based on a customer using 630 kilowatt hours of electricity in a month.

The increase is tied to fuel costs, changes in the demand for energy, and the rate Chugach Electric Association charges HEA. According to the utility’s filing with the RCA, the non-firm purchased power rate is increasing from 6.291 cents per kilowatt hour to 6.452 cents.

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