Golden Valley Electric moves to settle rate case as high power costs strain its cash

Golden Valley Electric Association is negotiating a settlement in its rate case, the proceeding in which regulators decide what the co-op can charge its roughly 48,600 customers.

The Fairbanks-area co-op's board voted unanimously Oct. 27 to let management negotiate a settlement with the Regulatory Commission of Alaska, according to a meeting recap GVEA published Monday. The board set a special meeting for Nov. 2 to consider approving a deal before upcoming hearing and filing deadlines. The recap doesn't say what happened at that meeting.

GVEA's pending request, filed with regulators last December, sought a 7.4% interim increase to its utility and demand rates, according to the commission's public notice. Its proposed permanent rates would raise the residential utility charge from about 15.2 cents to about 16.8 cents per kilowatt-hour. A settlement would set where that lands, and the commission still has to approve it.

Cash flow "continues to be challenged by high power costs," Chief Financial Officer Sarah Villalon told the board.

GVEA's fuel and purchased power charge, which passes generation costs through to bills, jumped about 61% in June, adding nearly $46 a month for the average home. It fell 12.6% in September. As of then, the full residential rate was about 34.6 cents per kilowatt-hour, plus a $22.50 monthly customer charge.

The board also heard that a federal loan for GVEA's 2026-2029 construction work is held up by environmental review. Staff are looking at splitting off projects that have already been cleared, and the board extended its existing federal loan package another year so ongoing work can continue.

Other projects are moving at different speeds. Contracts for a battery storage project are nearly done, with board consideration expected in November. A planned Delta wind farm could be delayed up to a year by permitting for eagles. And the board approved moving ahead with plans to buy the Stampede Lodge in Healy, a 10-room property GVEA has leased since March 2025, for about $1.09 million, pending an appraisal and inspection.