Electricity Rates To Rise in October

An increase in utility costs is rarely welcome news, but Kenai Peninsula residents will see a relatively low rate rise compared to their Anchorage counterparts.

 

Starting October 1, Homer Electric Association said their quarterly Cost of Power Adjustment (COPA) will add around $4.89 per month to the average household electricity bill.

 

In Anchorage, rates are set to rise 17 percent in late August, resulting in a monthly increase of $11.55 for the average user. Municipal Light and Power says that will be followed by a 5 percent hike in early 2016, which will add another $3.42 per month. MLP says the change was necessary to continue funding the Southcentral Power Project, a gas-fired power plant that opened in May and jointly owned with Chugach Electric.

 

HEA’s Joe Gallagher said that the increase reflects the cost of fuel used to generate electricity purchased by HEA from Chugach Electric. The current rate is 18.075 cents per kilowatt hour, which will increase to 18.850 cents per kilowatt hour.

 

Pending approval from the Regulatory Commission of Alaska, the new rate will be effective for all billings as of October 1, 2013.

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