March 1, 2019 – Homer Electric Association (HEA) members will likely see a rate increase effective April 1, 2019.
HEA has submitted a filing with the Regulatory Commission of Alaska (RCA) that requests an increase to the demand and energy components of the monthly bills by five percent. The residential energy rate increases from $0.14866 per kilowatt-hour to $0.15609 per kilowatt-hour. If approved, the new rate will mean an increase of $4.09 per month for the average HEA residential member using 550-kilowatt hours a month.
As an electric cooperative in Alaska, historically it is uncommon to see demand for electricity decrease. However, that has been the case over the past few years with many utilities, including HEA. Energy efficiency improvements and milder winters have generally reduced electric energy consumption. As a result, HEA is selling less electricity than anticipated which, in turn, decreases operating revenues needed to pay for fixed costs such as poles, wires, and generators needed to serve our members.
The last base rate change was approved by the RCA and implemented in January 2017. Pending approval from the RCA, the rate change will take effect on April 1, 2019.
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