Homer Alaska - News

Story last updated at 5:05 PM on Wednesday, January 4, 2012

New HEA rate plan approved

The Regulatory Commission of Alaska has approved Homer Electric Association's rate restructuring plan. The new rates are effective as of Jan. 1.

The plan will result in a rate decrease for many HEA members, with the average HEA residential member using 630 kilowatt hours seeing a 7.2 percent decrease in the monthly bill, according to an HEA press release. The new rate structure will more fairly recover fixed costs, or expenses, incurred that are not related to the amount of energy consumed by members. The costs include such items as billing, metering, customer service, poles, wires, substations, generation, transmission lines and insurance.

Key components to the new rate structure include an increase in the monthly residential customer charge from $11 to $15; implementation of a minimum monthly energy charge that equals the cost of 150 kilowatt hours; reclassification of commercial classes; and the merging of the two rate classes for south Kachemak Bay members with other residential and general service rate classes.


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