Golden Valley Electric Association raises fuel and purchased power rate due to high fuel prices

FAIRBANKS, Alaska (KTVF) - In response to high fuel prices, Golden Valley Electric Association (GVEA) has raised its Fuel and Purchased Power rate.

This rate, which is updated quarterly, increase by just over $.01 per Kilowatt Hour on June 1.

According to GVEA, the Fuel and Purchased Power rate is a straight pass-through, meaning residents are only charged the actual cost to generate and purchase power without any markup.

However, electric bills are expected to rise.

Meadow Bailey, Director of External Affairs and Public Relations with GVEA, explained, “The average residential consumer who uses about 600 kilowatt hours per month, will see an average of about $6.40 on their bill per month.”

She continued, “One of the big drivers of this is what the cost of fuel is, and so this is something that we’re seeing not just in Alaska, but across the nation as we see fuel prices increase.”

The Fuel and Purchased Power rate is evaluated every 3 months. The next quarter begins on September 1. This means that if fuel prices go down, the amount customers are charged can be expected to return to previous levels in the future.

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