On January 1, 2013, the Utility Charge portion of a residential electric bill will increase from $0.09004 to $0.09597 per kilowatt-hour. Commercial and industrial members will see the increase to this charge on their bills as well. The rate change will also affect the Demand Charge for some business accounts.
The major driver behind the Utility Charge increase is attributed to power plant maintenance. The effect to the bottom line of an average residential bill of 700 kWh is an overall increase of about 2.6 percent, or $4.
But the news isn’t all bad. Remember that on December 1, 2012, the Fuel and Purchased Power Charge decreased from 13.8 cents to 10.8 cents per kWh across all rate categories. The effect to the bottom line of an average residential bill was an overall decrease of about 11.8 percent, or $21.
The primary reason for this decrease is our natural gas-fired power agreements with Chugach Electric Association. Natural gas-fired power is less expensive than oil-fired generation, therefore lowering our costs.
Here’s a brief history of an average residential bill of 700 kWh:
- January 2012 – $170
- September 2012 – $178
- December 2012 – $157
- January 2013 – $161
Bottom line: The December 1 Fuel & Purchased Power Charge decrease more than offsets the January 1 increase to the Utility Charge.