Golden Valley Electric Association (GVEA)’s Fuel and Purchase Power (F&PP) rate, currently in effect through the end of February, is a decrease from $0.10710 to $0.10450 per kilowatt-hour (kWh). GVEA is optimistic that decreases will continue in the next quarter, beginning March 1, 2022, due to consistent energy output from our own generation units and less volatile fuel prices.
The F&PP rate is adjusted by GVEA on a quarterly basis (December 1, March 1, June 1, and September 1) consistent with our tariff and is comprised of 2 elements:
- An estimate of what GVEA anticipates will be its cost to generate and purchase the energy necessary to meet the electrical needs of our member over the next three months
- A true up of any over or under collected costs incurred by GVEA in the prior F&PP quarter
The F&PP rate is a straight pass-through charge. GVEA’s members are only charged the actual cost that GVEA pays to generate and purchase power – there is no added mark-up or surcharge.
As a member owned not-for-profit cooperative, GVEA recognizes that electricity costs greatly affect our members and we work hard to keep rates as low as reasonably possible. GVEA is proud of the fact that for the past 24 months, even with the challenges caused by COVID, our Utility and Demand Charges have remained unchanged. And while the F&PP rate is not something GVEA can fully control, our employees are constantly doing what they can to keep the F&PP rate as low as possible.
The F&PP rates for the past eight quarters which appear below underscore the volatility of the F&PP:
- December 1, 2021: 10.450¢
- September 1, 2021: 10.710¢
- June 1, 2021: 9.978¢
- March 1, 2021: 9.655¢
- December 1, 2020: 8.172¢
- September 1, 2020: 9.614¢
- June 1, 2020: 7.095¢
- March 1, 2020: 10.965¢