At the Golden Valley Electric Association (GVEA) Board of Directors’ regularly scheduled March meeting, the board accepted a recommendation from GVEA staff to keep Utility and Demand Charges flat through the end of the year. These charges last changed January 1, 2020 and will remain flat through December 31, 2022 – a total of three years.
“With this filing, we have managed to keep the rates that we have control over steady through a global pandemic and a period of dramatic inflation,” said John Burns, GVEA President/CEO. “While we are ultimately not able to set the cost of fuel, which impacts the Fuel and Purchase Power Rate, we have been able to keep the other charges our members pay from changing. We recognize that rates affect our members and we do everything we can to keep rates as low as possible.”
Every six months, GVEA files a simplified rate filing (SRF), with any requested rate changes, effective January 1 and June 1 of each year. This process is reviewed 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. The SRF process only affects the Utility Charge, and if applicable, the Demand Charge on a member’s bill.
GVEA’s electric bills for residential members are made up of four charges:
- Customer charge – $22.50
- Unchanged since 2018.
- This is a flat rate that is not subject to change under the SRF.
- Utility charge – $0.12697 per kilowatt hour
- Unchanged since 2020.
- Adjusted semi-annually through the SRF or through a general rate case and addresses operational and maintenance costs.
- Fuel and purchased power rate – $0.12696 per kilowatt hour
- Adjusted quarterly, this pass through charge is based on the price of fuel to generate and purchase power.
- Regulatory cost charge – $0.001016 per kilowatt hour
- Annual charge that is set by and funds the Regulatory Commission of Alaska.
For more information on GVEA electric bills, and to see an example, visit https://gvea.com/my-bill-explained/.