Homer Electric Association (HEA) is requesting a rate increase in its filings with the Regulatory Commission of Alaska (RCA).
In its filing, HEA is proposing to increase the Residential Service energy rate from $0.13780 to $0.14882 per kilowatt hour, effective for all billings as of May 1, 2015.
The filing also increases the General Service energy rate from $0.13897 to $0.15009 and Large General Service energy rate from $0.0932 to $0.10066 per kilowatt hour. The demand rate for Large General Service members will go from $15.45 to $16.69 per kilowatt.
The last energy rate increase approved by the RCA and implemented by HEA was in July of 2013.
Over the last two years, HEA has made significant investments in new generation plants, substations, and transmission lines. These assets are essentially replacing infrastructure from the early 1980s. Replacing assets installed nearly 35 years ago is expensive. Additionally, expenses associated with the daily operation of providing electric service have increased.
HEA is also requesting an increase in the Cost of Power Adjustment (COPA) from $0.06900 to $0.07846 per kilowatt hour, effective April 1, 2015. COPA reflects the cost of fuel (natural gas) used to generate electricity, along with power purchased from the state-owned Bradley Lake hydroelectric project.
Overall, the proposed changes would increase the blended residential rate (energy rate plus COPA) from $0.20680 to $0.22728 per kilowatt hour.
The requested rate changes will result in an increase of $12.91 in the monthly residential bill for the average HEA member using 630 kilowatt hours.
If approved by the Regulatory Commission of Alaska, the COPA change will be effective for all billings beginning April 1, 2015. The energy rate change will be effective for all billings beginning May 1, 2015.