HEA anticipates rate increase for 4th quarter 2018

Homer Electric Association (HEA) members will likely see a rate increase effective October 1, 2018.

HEA has submitted a filing with the Regulatory Commission of Alaska (RCA) that requested an increase in the Cost of Power Adjustment (COPA) from $0.07270 per kilowatt-hour to $0.08151per kilowatt-hour.

COPA reflects the cost of the fuel purchased by HEA to generate electricity and is adjusted on a quarterly basis.

If approved, the new rate will mean an increase of $4.85 per month for the average HEA residential member using 550-kilowatt hours a month. The increase is in anticipation of the unavailability of HEA’s Nikiski Plant due to routine turnaround maintenance and inspection in October. This will require HEA to temporarily obtain power from other sources not as cost efficient as Nikiski.

Pending approval from the RCA, the rate change will be effective October 1, 2018.