3/8/2010

As we reported previously, Homer Electric Association has proposed a six percent base rate increase to the Regulatory Commission of Alaska, starting on April 1^st.  However, HEA says, due to the increased cost of obtaining power from Chugach Electric and the cost of shutting down the Nikiski generation plant for scheduled maintenance earlier this year,    HEA has asked the RCA to increase its wholesale power cost adjustment, too.  The combination of the two increased rates would total over 16.5 percent.  According to HEA, this means an increase of $14.30 to the monthly bill for a residential member using 630 kilowatt hours of electricity. 

Homer Electric said the reason for the increased base rate has been caused by rising costs in several areas to improve reliability.  Examples of these reliability projects include tree trimming, replacement of aging overhead and underground lines, and the installation of the Diamond Ridge substation in Homer, which is scheduled for completion in the spring.

Filed under: News by Joe Nicks