Homer Electric Association’s natural gas purchasing contract with Furie Operating Alaska that goes into effect April 1 will decrease costs for customers in the coming quarter.
HEA’s Joe Gallagher says the cost of power adjustment, or COPA, is calculated each quarter.
Gallagher: “As of April 1 the COPA will actually decrease from 6.6 cents to 6.3 cents. That will go into effect April 1 and will mean about a $1.87 reduction in the average monthly bill for a HEA member.”
We asked if this decrease in cost will continue into the next quarter at the same level…
Gallagher: “It’s basically a combination of projecting forward and looking back to see how the previous quarter went, so it’s a little difficult to say exactly what will happen in July but we’re hopeful that it will hold steady or possibly actually decrease.”
HEA’s contract with Furie commits the electric company to purchase between 4 and 6.2 billion cubic feet of natural gas annually. The current agreement ends in December of 2018, when HEA will be given options to extend until 2020.
Homer Electric’s current purchasing contract ends with Hilcorp tomorrow.
