HEA rates may bump up slightly next year

Posted: Monday, December 13, 2010

Homer Electric Association customers may see a slight increase on their bills after the new year.

The utility plans Monday to file a rate adjustment request to the Regulatory Commission of Alaska. If approved, the average residential customer using 630 kilowatt hours a month will see a 93-cent increase.

The change is tied to an increase in the wholesale power cost rate adjustment. This rate is adjusted quarterly to reflect changed in the cost of power from Chugach Electric Association. Homer Electric is under contract to buy power from Chugach until 2013. Homer Electric is asking for the rate adjustment to go from 0.715 cents per kilowatt hour to 0.863 cents.

Added to the base energy rate, that raises the new total cost per kilowatt hour from 14.622 cents to 15.485 cents, or a .97-percent increase.

If approved by the regulatory commission, the new rate will go into effect for all billings on Jan. 1, 2011.

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