Golden Valley Electric Association (GVEA)’s Fuel and Purchased Power rate, which is updated quarterly, will decrease by 1.310¢ on September 1, from 14.036¢ to 12.726¢ per kilowatt hour (kWh). This decrease will be in effect through November 30.
Residential members will see their monthly electric bill go down by an estimated $7.86, based on the average usage of 600 kWh per month.
This decrease is a result of declining oil prices, more availability of natural gas generated electricity from southcentral Alaska, and higher than projected kWh sales.
The Fuel and Purchased Power rate is a straight pass-through. GVEA’s members are only charged the actual cost to generate and purchase power, there is no mark-up, it is one of four charges that make up a residential electric bill. Two of the other main charges have been unchanged for the past couple of years.
The 4 charges on a GVEA residential bill are:
- Customer Charge of $22.50 – Unchanged since 2018.
- Utility Charge of 12.697¢ per kWh – Unchanged since 2020.
- Regulatory Charge of .1016¢ per kWh – set by the Regulatory Commission of Alaska.
- Fuel & Purchased Power Rate of 12.726¢ – Adjusted quarterly on Dec. 1, March 1, June 1 and Sept. 1.
The Fuel and Purchased Power charge is an estimate of what GVEA anticipates will be its costs over the next 3 months to generate and purchase the energy necessary to meet the electrical needs of its members and a true up of any over-collected or under-collected amounts from the prior quarter.