1/4/2011

Homer Electric has now received state approval for its planned rate restructuring. Previously, HEA said the rate restructuring would be going into effect once the RCA approved the plan. That plan was approved on December 28th. The restructuring went into effect on January 1st.

According to HEA, this new rate plan will save the average residential customer using 630 kilowatt hours per month 7.2 percent from the current bill.

HEA says the plan will more fairly recover fixed costs, or expenses, incurred that are not related to the amount of energy consumed by members. Examples of these costs are billing, metering, customer service, poles, wires, substations, generation, transmission lines and insurance.

The restructuring includes an increase in the monthly residential customer charge from $11 to $15, implementation of a minimum monthly energy charge that would equal the cost of 150 kilowatt hours, and reclassification of commercial classes.

Filed under: Local by Joe Nicks