Electric rates to dip again

Good news, fellow electric rate payers:

Expect yet another decrease to your electric bills. Effective June 1, an average residential bill of 660 kWh will decrease $14. We’ve been working hard to reduce energy costs – after all, we live here and care about this community too – and we’re thrilled that these efforts have paid off.

down-arrowDetails behind the decrease

As of June 1, 2013, the Fuel and Purchased Power Charge will decrease from 11 to 8.7 cents (or 21 percent) per kilowatt-hour. While this charge tends to decrease a bit during the summer months, the main reason behind this decrease is that we anticipate receiving a higher volume of lower cost power from Anchorage utilities. This charge is the same across all rate categories (residential, commercial and industrial) and is calculated quarterly. Since June 2012, this charge has dropped 29 percent.

Also effective June 1, the Utility Charge will increase 1.3 percent across all rate categories. Here are the two primary reasons for the slight increase: 1. we’ve started paying for the Eva Creek Wind construction costs and 2. increased operational costs.

Brief history of an average residential bill (660 kWh)

  • June 2012: $159
  • January 2013 – $153
  • March 2013 – $154
  • June 2013 – $140

WOW! Residential bills have dropped $19, or 12 percent, since last June.

Into the future

We are thankful for the natural gas-fired power from Anchorage and anticipate receiving this lower cost power through the first quarter of 2015 (keeping rates stable). In 2015, Healy Unit 2 (formerly HCCP) is expected to come online. And while we don’t foresee Healy Unit 2 lowering costs further, it should help keep them stable.

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