Homer Electric Association, Inc. (HEA) members will likely see a rate increase effective April 1, 2020.
HEA has submitted a filing with the Regulatory Commission of Alaska (RCA) for an increase to the demand and energy components of the monthly bills by three percent. The residential energy rate increases slightly less than one-half cent per kilowatt-hour (kWh), from $0.15609 per kWh to $0.16077 per kWh. As filed, the new rate will mean an increase of $2.57 per month for the average HEA residential member using 550-kilowatt hours a month.
Electric cooperatives in Alaska, as well as the lower 48, continue to see demand for electricity decrease. Energy efficiency improvements have generally reduced electric energy consumption. As a result, HEA is selling less electricity than anticipated which, in turn, decreases operating revenues needed to pay for increasing maintenance and operating costs associated with providing electrical service to our members.
HEA is also starting to realize an increase in regulatory costs driven by programs required by the Regulatory Commission of Alaska. We are supporting both the new Railbelt Reliability Council and cyber security emphasis that is being shouldered by all six Railbelt utilities. The rate increase will also help keep pace with the rate of inflation.
Pending review by the RCA, the rate change will take effect on April 1, 2020. For more information on the rate change, please click HERE.