Will electric rates go up this winter?

Decrease in one charge expected to offset increase in another

Don’t fall out of your chair when you read about GVEA’s recent filing to the Regulatory Commission of Alaska. While we are filing for an increase, we’re anticipating a decrease too. And we expect the decrease to offset the increase. Here are the details:

  • Recently, GVEA’s Board of Directors signed an agreement to purchase a fixed amount of economy energy from Chugach Electric Association over the next couple of years. We haven’t been receiving as much natural gas-fired power in 2012, so this is great news for our co-op. We expect the savings from this economy energy to be realized in the upcoming Fuel & Purchased Power Charge (calculated quarterly) effective December 1. (The exact impact to members’ bills won’t be known until mid-November.)
  • GVEA filed for a 6.6 percent increase to the Utility Charge portion of the electric bill effective January 1, 2013 (this will also affect the Demand Charge for some business accounts). The major driver behind this increase is attributed to power plant maintenance.

Bottom line: The anticipated reduction in the Fuel & Purchased Power Charge effective December 1 should offset the increase to the Utility Charge effective January 1.

You Have the Power to Use Less – Winter bills are usually the highest of the year, not because of electric rates, but because of usage. How can you save? Check out Ways to Save on our website and consider signing up for a HomeSense Energy Audit.

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