AVEC proposes 30% jump in Bethel residential energy charge

The non-fuel energy charge for a Bethel residential account would rise about 30% under a rate schedule the Alaska Village Electric Cooperative posted Saturday, from $0.1532 per kilowatt-hour to $0.1992, before fuel costs are added in. The cooperative says the adjustment applies to non-fuel costs only. Fuel charges are calculated separately for each community based on delivered fuel cost and power system efficiency. The total bill impact depends on consumption, the unchanged customer charge, the separately calculated fuel charge and any Power Cost Equalization subsidy.

The increase varies by location. In Yakutat, the residential energy charge on the first 750 kilowatt-hours would climb from $0.3086 to $0.3720 per kilowatt-hour, with usage above that rising from $0.2584 to $0.2790. Other AVEC service areas would also land at $0.3720 for the first 750 kilowatt-hours, but from a starting point already near that mark, $0.3647, so the increase there is far smaller. Above 750 kilowatt-hours, though, those same areas would go from $0.2431 to $0.2790, a rise of about 15%. The $20 monthly customer charge for small-power accounts would not change anywhere.

For Bethel large-power customers, the monthly customer charge would rise from $50 to $60, the energy charge from $0.0338 to $0.0473 per kilowatt-hour, and the demand charge from $36.75 to $45.00 per kilowatt. Demand is billed on the highest peak during the month or 85% of the highest peak in the past 12 months, whichever is greater.

The cooperative attributes the proposal to cost pressure, not fuel prices. "Due to the increase in operating costs related to materials, labor, transportation and freight, these proposed adjustments in non-fuel rates are designed to meet revenue requirements, provide a positive operating margin and meet the debt covenants AVEC has with our primary lender, the National Rural [Utilities] Cooperative Finance Corporation," the cooperative said in its Aug. 7 public notice.

Power Cost Equalization is not reflected in these figures. The subsidy covers the first 750 kilowatt-hours a month for eligible residential accounts and also applies to eligible community facility accounts, up to 70 kilowatt-hours per month per person based on census population. The Regulatory Commission of Alaska sets the subsidy separately for each community. Commercial, industrial, school, state and federal accounts remain ineligible for PCE.

A public hearing is scheduled for Sept. 9 at 10 a.m., held telephonically, where members of the public may comment before the board decides whether to approve, disapprove or modify the rates. Participants can call 1-877-853-5257 or join by Zoom using meeting ID 848 1113 0959. If approved, the new rates would apply to service used on or after Nov. 1.