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Press Releases
10/21/06
Wholesale Power Cost
Rate Adjustment Increases in 4th Quarter
Homer
Electric Association (HEA) members will see an increase in
the wholesale power cost rate adjustment (WCPRA) portion
of their bill during the fourth quarter of 2006.
The WPCRA
reflects HEA’s cost of power purchased from Chugach
Electric Association, and the Bradley Lake hydroelectric
project. Funds collected through the WPCRA are passed on
directly to Chugach Electric and the Bradley Lake Project.
The WPCRA
for the third quarter of 2006 was actually a credit of
$0.00442. The credit mostly reflected an overcollection
in the previous quarter. In the fourth quarter of 2006,
the WPCRA will be $0.02991.
The new
WPCRA rate, combined with the base rate of $0.12050, sets
the blended rate for most Homer Electric residential
members at $0.15041 per kilowatt hour. The new rate will
mean an increase of $22.31 for the average member who uses
650 kilowatt hours per month.
The
majority of power that is purchased from Chugach is
generated by natural gas. The cost of natural gas is
volatile and has been increasing for the last couple of
years. Unfortunately, the rising cost of natural gas is
leading to increased electric utility rates across the
country.
Homer
Electric is actively pursuing generation and power supply
options that will lessen the dependence on natural gas as
the primary source of power generation. These options
include Healy Clean Coal, Agrium’s Blue Sky project, and
wind power at Fire Island near Anchorage.
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For additional information
regarding this press release please contact:
HEA: Joe Gallagher (907)
283-2324
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