Bethel-area electric bills would rise about 30% on everything but fuel

Electric customers in Bethel would see the non-fuel part of their bill rise about 30% under a new rate schedule from the Alaska Village Electric Cooperative. The increase applies only to non-fuel costs, the price of running the system rather than the fuel that powers it, which is billed separately for each community.

The co-op says the reason is straightforward: it costs more to operate than it used to. "Due to the increase in operating costs related to materials, labor, transportation and freight," the cooperative said in its notice, the new rates are meant to cover its costs, turn a small operating margin, and meet the terms of its loans.

The size of the increase varies by community. Bethel would see the steepest jump, around 30%, while other AVEC villages that were already paying a higher non-fuel rate would see a much smaller one. Larger commercial accounts in Bethel would also pay more, on both their energy use and their monthly charges.

What none of these figures include is the Power Cost Equalization subsidy, which is what keeps rural electricity within reach for many households. The state program covers the first 750 kilowatt-hours a month for eligible homes and community facilities, so most residential customers won't feel the full increase. Businesses, schools and government accounts don't qualify.

A telephonic public hearing is set for Sept. 9, where members can comment before the board decides whether to approve, change or reject the rates. If approved, they'd take effect Nov. 1.