GVEA’s commitment to keep operational costs stable during the pandemic is successful.
Golden Valley Electric Association, Inc. (GVEA) is pleased to share that the residential utility charge of members’ bills remains flat. The residential utility charge last changed in January 1, 2020 and will remain flat through December 31, 2021 – a total of two years.
Every six months, GVEA files a simplified rate filing (SRF), with rate changes, if required, effective January 1 and June 1 of each year. This process is regulated and approved by the Regulatory Commission of Alaska.
The need for a rate change is contingent on whether GVEA has sufficient revenue to cover operations and maintain financial stability. During the pandemic, GVEA worked to keep costs low by deferring non-critical maintenance and not making capital investments. This resulted in GVEA being able to operate and maintain financial stability without having to implement a rate change through the SRF.
The SRF process only affects the utility charge on a member’s bill. GVEA’s electric bills for residential members is made up of four charges:
- Customer charge – at $22.50, this is a flat rate that is not subject to change under the SRF.
- Fuel and purchase power rate – adjusted quarterly, this pass through charge is based on the price of fuel to generate and purchase power.
- Utility charge – adjusted semi-annually through the SRF or through a general rate case and addresses operational and maintenance costs.
- Regulatory cost charge – this annual charge is set by and funds the Regulatory Commission of Alaska.
The utility charge rates remains effective through December 31, 2021.
For more information on GVEA electric bills, and to see an example, visit https://www.gvea.com/my-bill-explained/.
Golden Valley Electric Association serves over 36,000 members, with 44,800 meters, in Interior Alaska. The Cooperative’s mission is to safely provide these members with reliable electric service, quality customer service and innovative energy solutions at fair and reasonable prices.