Homer Electric Association

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Understanding your Billing Statement
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Understanding Your Billing Statement

Below is a summary of the different charges found on your electric bill:

Customer Charge

An $11 customer charge is applied each month regardless of the amount of energy used. This covers fixed operational costs such as billing, record keeping, meter maintenance and audits, annual meeting, and maintenance of headquarters.
This rate is based on a formal Cost of Service study and approved by the Regulatory Commission of Alaska (RCA).

Energy Charge

This is the base energy/demand charge established to recover a portion of energy costs and HEA's operational costs.
Operational costs are reviewed on a quarterly basis to determine if a rate adjustment is needed. The analysis covers a rolling 12-month period, and changes are reflected in rates of the subsequent quarter.

Wholesale Power Cost Adjustment

This is the increase or decrease of the cost of wholesale power passed directly to our HEA consumers.
Purchased wholesale power from Chugach Electric, HEA's main power supplier, is a fairly fixed amount.
HEA passes the wholesale power charges on to consumers through a per kilowatt fee.
This fee is determined by estimating the total kilowatt hours to be sold during a quarter divided by the amount to be paid to producers which equates to a fee per kilowatt hour.

Regulatory Cost Charge

This is a fee per kilowatt hour which is established by the Regulatory Commission of Alaska and directly passed through to the consumer. This fee is collected to recover the administrative costs associated with the RCA operations and management.

Homer Office: (907)235-8551 Corporate Office: 3977 Lake Street, Homer AK 99603	Kenai Office: (907)283-5831 Central Peninsula Service Center: 280 Airport Way, Kenai AK 99611
In Alaska call toll-free: (800) 478-8551