HEA Rate Schedule (effective January 1, 2024)
HEA offers 4 different rates to its members, depending on the classification of the service provided. Our rates are regulated by the Regulatory Commission of Alaska.
View a sample bill (PDF) with an explanation of billing terms.
| Service Type | Monthly Customer Charge (A) | Energy Charge per kWh (H) | System Delivery Charge (B) | Demand Charge per kW (I) | Minimum Demand Charge (C) | Cost of Power Adjustment per kWh (D) | Regulatory Cost Charge (G) |
|---|---|---|---|---|---|---|---|
| Residential | $20.00 | $0.16640 | $24.96 | N/A | N/A | $0.08521 | $0.001028 |
| General Service (E) | $20.00 | $0.17320 | $25.98 | N/A | N/A | $0.08868 | $0.001028 |
| Large General Service (F) | $50.00 | $0.10883 | $0 | $22.387 | $447.74 | $0.08868 | $0.001028 |
| Industrial Service | For more information contact Member Services. | ||||||
| Outdoor Lighting | 175 watt lamp: $30.64; 250 watt lamp: $36.17; 360 watt lamp: $43.95; 400 watt lamp: $48.60; 55 watt LED: $29.99; 93 watt LED: $33.44; 160 watt LED: $42.76 per lamp per month | ||||||
2024 Rate Change
Learn more about HEA’s 2024 rate change and the impact of rising costs here.
Click HERE to view a sample bill with an explanation of Billing Terms.
To understand each part of the rate schedule, check the table above for the following lettings in parenthesis:
- Customer Charge: A flat monthly charge that recovers a portion of costs attributable to billing, collections, data processing and meter expenses regardless of the amount of energy used during the billing period.
- System Delivery Charge: This charge recovers expenses associated with building, operating and maintaining transmission and distribution facilities whether or not electric service is used. If energy consumption meets or exceeds 150 kWh within the billing period, no charge applies.
- Minimum Demand Charge: The cost for 20 kW of demand/month. This is the amount needed to recover the costs of standby power required to serve a commercial location whether or not electric service is used. If the minimum demand of 20 kW per month is met during the billing period, no minimum demand charge applies.
- Cost of Power Adjustment (COPA): The COPA rate was established to recover the cost of fuel, purchased power and other fuel-related costs. This line reflects the most current COPA rate and is multiplied by the number of kilowatt hours (kWh) used at the location during the billing period. Rate fluctuations may occur on a quarterly basis predominately due to changing costs of fuel.
- General Service (Rate 3): Any class of service which does not qualify for Residential Schedule and where the demand does not exceed 20 kW for 3 consecutive months.
- Large General Service (Rate 4): All general services using more than 20 kW of monthly demand during 3 consecutive months, but less than 1,000 kW of monthly demand.
- Regulatory Cost Charge: A rate that is established by the Regulatory Commission of Alaska (RCA) The money collected for this charge is passed on to the RCA to defray their operational costs.
- Energy Charge per Kilowatt Hour (kWh): A charge based on the electric energy (kWh) consumed.
- Demand Charge per Kilowatt (kW): A charge based on the rate at which electric energy is delivered to or by a system at a given instant, or averaged over a designed period, during the billing cycle.
We usually use the term kilowatts (1 kilowatt is 1,000 watts) when speaking of power production or power needs. A power plant makes kilowatts; we sell power in units called kilowatt-hours (kWh). For example, a 100-watt light bulb left on for 10 hours uses 1 kWh of electricity. A typical HEA residential consumer uses 550 kWh per month.
You can find additional information on HEA’s Governance page.
Understanding COPA Rate and Common Misconceptions
HEA receives many inquiries and comments regarding the COPA rate and its misconceptions. The following should help explain the purpose of this rate and provide you with factual information.
Composition of the COPA Rate
The COPA element of your bill is a direct pass-through of HEA’s costs associated with fuel (predominantly natural gas with some hydroelectric power) and electric power purchased from other utilities. It also includes minor costs associated with HEA’s usage of the CINGSA natural gas storage facility and fuel to support emergency generators located on the south side of Kachemak Bay.
Calculation of COPA
COPA is calculated based on 2 parts. The first is a forward projection of kilowatt hour (kWh) sales and the expected fuel costs noted previously to support the level of generation. The other component reflects the status of the balancing account. This under/over collection based on actual costs is incorporated into HEA’s forecast to determine the amount to be collected through COPA. COPA is submitted on a quarterly basis and is reviewed and approved by the Regulatory Commission of Alaska.
Factors Influencing HEA’s COPA Costs
HEA’s COPA costs generally reflect the price HEA pays to transport and burn natural gas for its generation plants at Nikiski, Soldotna, and Bernice Lake. Natural gas for HEA and other utilities in the region is sourced locally from Cook Inlet. Cook Inlet prices are higher than in the Lower 48 for multiple reasons and are the primary driver determining the COPA charge.
HEA’s Natural Gas Contracts and Local Market Dynamics
