Upcoming Adjustments to GVEA Rates Result in Overall Decrease
- Fuel & Purchased Power Rate Decreases for Second Consecutive Quarter
- Utility Charge to Increase for the First Time Since 2020
- Net monthly decrease of $19.72, based on average residential usage of 600 kWh per month
Golden Valley Electric Association (GVEA)’s Fuel and Purchased Power Rate will decrease by 3.562¢ on December 1, from 12.726¢ to 9.164¢ per kilowatt hour (kWh). This decrease will be in effect through February 28, 2023.
This decrease is the result of lower than projected oil prices and the availability of more hydropower from the Bradley Lake Hydroelectric Project. The Fuel and Purchased Power Rate is adjusted quarterly on December 1, March 1, June 1, and September 1, and approved by the Regulatory Commission of Alaska. The rate is a straight pass-through. GVEA’s members are only charged the actual cost to generate and purchase power.
The Utility Charge, which covers operational costs for power plants, substations, interest on loans, depreciation, power poles, transformers, as well as maintenance costs, will increase on January 1, 2023, by 2.17% for all rate classes. This marks the first time this charge has changed since January 1, 2020. For residential members, the utility charge will increase by less than a third of a cent per kWh, from 12.697¢ to 12.973¢ per kWh.
Factoring in both rate adjustments, beginning January 1, 2023, residential members will see their monthly electric bill decrease by an estimated $19.72, based on average residential usage of 600 kWh per month