Homer Electric Association submitted a filing with the Regulatory Commission of Alaska to increase their Cost of Power Adjustment.
HEA’s Joe Gallagher detailed what members will see after October 1.
Gallager: The cost of power adjustment will increase by about one cent and that will raises our blended energy rate from 20.9 cents to 22 cents a kilowatt hour. What this means is about a $6.69 monthly increase to the average Homer Electric member’s bill.”
He explained what causes those rises in costs.
Gallagher:”The cost of power adjustment, if people aren’t familiar with it, reflects the cost of the fuel that is used Homer Electric to generate electricity which is basically for the most part natural gas. So again those prices tend to fluctuate over the year so thats the reason for the adjustment on the quarterly basis. So seeing a little bit of an increase in the cost of the natural gas, that gets passed on.”