Elfin Cove's state power credit set at 51.67 cents per kilowatt-hour

Homes and community buildings in Elfin Cove will get a state credit of 51.67 cents for each eligible kilowatt-hour of electricity, starting with bills sent Friday, after state regulators reset the amount Thursday.

The credit comes from Power Cost Equalization, the state program that lowers electric bills in rural communities where power is expensive. It covers up to 750 kilowatt-hours a month for each home, plus power used by local community facilities, under state law.

Fuel cost is part of the formula. The Regulatory Commission of Alaska figured the utility's fuel at about $6.70 a gallon, according to its order.

The utility buys its fuel from the Community of Elfin Cove, which gets it from the wholesaler Delta Western. The commission's staff count whichever price is lower: what the community charges, or Delta Western's price plus an approved delivery markup. This time, they used Delta Western's.

The order also flags a problem the utility hasn't fixed yet. The utility's records show more power reaching customers than its plant produced, about 5% more. The utility attributes it to meter reading errors and is working with the Alaska Energy Authority to fix it.

The same day, the commission set the credit for the City of Golovin at 45.15 cents per kilowatt-hour.