HEA Anticipates Slight Rate Increase in January 2017

December 5, 2016 – Homer Electric Association (HEA) members could see a slight increase in their monthly bills beginning January 5, 2017, if two filings with the Regulatory Commission of Alaska (RCA) are approved.

In the first filing, made on November 23, 2016 as a result of the rate case originally filed in late 2015, HEA proposes an increase to both the residential and general service monthly customer charges from $15.49 to $20.00. It also proposes to decrease the residential service energy rate from the current interim rate of $0.15366 to $0.14866 and the general service energy rate from $0.15497 to $0.15473 per kilowatt hour.

This filing also changes the interim large general service rates. The energy rate decreases from $0.10394 to $0.09723 per kilowatt hour, the customer charge decreases from $51.63 to $50.00 and the demand charge increases from $17.23 to $20.00 per kilowatt.

In the second filing, HEA proposes a decrease to the Cost of Power Adjustment (COPA) rate from $0.07614 to $0.07373 per kilowatt hour. The COPA is adjusted on a quarterly basis and primarily reflects the cost of natural gas used to generate power for HEA members.

Overall, the proposed changes would decrease the blended residential rate (energy rate plus COPA) from $0.22980 to $0.22239 per kilowatt hour.

The combined proposed rate changes will result in an increase of 43 cents in the monthly bill for the average residential HEA member using 550 kilowatt hours.

If approved by the Regulatory Commission of Alaska, both changes will be effective on January 5, 2017.