Eva Creek Wind will not negatively impact members’ rates

Why did we choose the Fuel & Purchased Power Charge?

Many members have asked why we are trying to roll Eva Creek Wind into the Fuel and Purchased Power Charge rather than including it with the Simplified Rate Filing. GVEA proposed this method of recouping costs in a recent tariff filing to the Regulatory Commission of Alaska. We expect a decision by mid-November.

There are many reasons why management thought it best to include Eva Creek Wind in the Fuel & Purchased Power Charge. Keeping in mind that GVEA follows a cost-causer, cost-payer rate structure, here are two of the big ones:

  • The benefits (decreased fossil fuel usage) and costs of the Eva Creek Wind project will be spread equally across all rate classes if rolled in with the Fuel & Purchased Power Charge. Why? All members, regardless of their rate class, will receive the same proportionate share of benefits and costs based on their kilowatt-hour usage.
  • The Fuel & Purchased Power Charge is more timely. The Simplified Rate Filing is filed every six months while the Fuel & Purchased Power Charge is filed quarterly. Due to the timing of when rate adjustments become effective under the Simplified Rate Filing process, a significant time lag would occur in the cost collection for the Eva Creek Wind project.

Will the addition of wind increase the Fuel & Purchased Power Charge tariff filing effective December 1? No. Eva Creek Wind will not impact members’ rates. However, the amount of natural-gas fired power we purchase from Anchorage as well as our other fuel costs like coal, hydro and oil also factor into the calculation of the new rate. Since we anticipate that the co-op will be receiving more natural gas-fired power (lower cost than oil-fired power) from the Intertie in the coming months, we expect a slight reduction in the next Fuel & Purchased Power Charge.

At this point, we don’t know if Eva Creek Wind will be factored into the December 1 Fuel & Purchased Power Charge filing. However, should the RCA approve our proposal to do so, we anticipate a slight net decrease to members’ rates.

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Mike Craft says:

I like the BLOG on BLOG on the top right of this page .I realy was pointing out that because GVEA would not work with Delta Wind Farm we members did not save 52,748.00$ last wensday.and every other time the wind has blown for the last few years at DELTA. As far as the EVEA creek project gos I think that it will beat the price we pay now useing oil and i guess that’s good. (9.8cents +5 cents sercharge=14.8 cents PKWH for EVEA creek (RCA tariff filling By GVEA), oil is mabie 19cents PKWH. So is that a good reason to not use Delta Wind Farm to save Money,Help with Air and ground pollution , no Public det. And as GVEA found out create 200+ JOBs ??

Mike Craft says:

It is 2 years later sence the Delta wind farm was blocked from saveing millions for rate payers ( share holders)By investing 54 milloin privet dollors Delta would haved saved 52,748.00 last wensday ,thats wright in 1 day …. I am not saying that Delta wind farm is the save all but, saveing 52,000.00 a day means something to me.on one more note ,that same day we saved 1500gal of oil with 1 900KW turbine.if the intire 25MW delta wind Farm had been on line we would have saved 37,500gal of oil.This is recorded history at this point .

Clipper says:

My bill for November is $196. Of that $106 is the fuel charge. Allegedly, that is to pay for fuel consumed in making my power and I would also assume it is in part for executive bonuses (they will never convince me otherwise). I believe the catch 22 in energy efficiency would be that the less power you use the higher the rate charge. They make more money by promoting “energy savings” or by selling electric by the ounce instead of by the pound.

Mark says:

I hope there is a decrease. Lord Please let this be true. I’m sure I’m not the only one paying more for the “FUEL AND PURCHASED POWER CHARGE” than I am for my actual kilowatt charge. This disgusts me to no end but whats a guy to do? I’ve done all the cutting back I can do, not to mention doing my best to make sure my home is more efficient. Switching all my “things” to power saving was pretty expensive, but I thought in the long run it would pay off. What a laugh. GVEA is sucking the life right out of me.