HEA Interim Rate Increase Approved

The Regulatory Commission of Alaska RCA) has approved a 3.25 percent interim energy base rate and customer charge increase for Homer Electric Association. The new rate will go into effect on February 1, 2016, and result in an increase of $3.15 for the average HEA member using 550 kilowatt hours a month.

In December, the RCA declined to implement the interim increase for at least six months, but HEA appealed the ruling and a conference was held with the RCA on January 15.

At the conference, HEA stated that the interim increase was necessary in order for HEA to collect sufficient revenues to meet its financial obligations and continue to make prudent investments in the electric utility.

HEA officials pointed out to the RCA that the situation is complicated by an on-going legal dispute over transmission costs.

The 3.25 percent interim energy base rate and customer charge increase will go into effect for all billings as of February 1, 2016.