Expect an increase to your electric bills effective June 1. An average residential bill of 660 kWh will increase approximately $9 which is 7% higher than first quarter 2014 rates.
Details behind the increase:
- As of June 1, the Fuel & Purchased Power Charge will increase from $0.09496 to $0.10593 (or 11 percent). The increase is due to our transition to a new fuel supplier due to Flint Hills Refinery shut down. GVEA will rely on higher cost generating units during June while we’re connecting our plant to the Petro Star Refinery. Changing to a new naphtha-blended fuel will also require additional work in August which will allow us to burn the new fuel more efficiently and allow for burning multiple back up fuels. Our rates should stabilize after these transition costs are absorbed.
This charge covers the costs of fuel to operate our local power plants as well as the cost of purchased power from other utilities. This charge is the same across all rate categories (residential, commercial and industrial) and is calculated quarterly with the next adjustment coming September
- Also effective June 1, the Utility Charge will increase 3.4 percent across all rate categories. The primary reason for this increase is power plant maintenance costs.