Homer Alaska - Business

Story last updated at 3:39 PM on Wednesday, September 7, 2011

Fuel costs driving HEA rate increase



STAFF REPORT

Due to rising fuel costs, Homer Electric Association is requesting an increase in the wholesale power cost rate adjustment, or WPCRA, in its quarterly filing with the Regulatory Commission of Alaska.

"The WPCRA is a quarterly adjustment that reflects both actual and anticipated changes in the price of natural gas used to generate electricity. The WPCRA increase is mainly due to rising fuel costs being passed on to HEA through its wholesale power provider, Chugach Electric Association," according to an HEA press release.

The requested increase is slightly less than one cent per kilowatt hour, raising the WPCRA from 4.307 cents per kilowatt hour to 5.297 cents per kilowatt hour. The WPCRA increase will result in HEA's overall, or blended, energy rate increasing by 5.2 percent, from 18.929 cents per kilowatt hour to 19.919 cents per kilowatt hour.

The new rate will mean an increase of $6.23 for the average residential customer's monthly bill for 630 kilowatt hours, according to the release.

If approved by the Regulatory Commission of Alaska (RCA), the change will be effective for all billings beginning Oct. 1.

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