GVEA Rate Changes – Effective December 1 and January 1

Recently, Golden Valley Electric Association filed for two rate changes with the Regulatory Commission of Alaska. With these two rate adjustments, members will see a net decrease in electric rates. Below are more details.

Effective December 1, 2024 - February 28, 2025

• Quarterly Fuel & Purchased Power rate adjustment
• GVEA's Fuel and Purchased Power charge has decreased by 3.94% -from $0.13124 to $0.12607 per kilowatt-hour, effective December 1, 2024 - February 28, 2025. Residential members using an average of 600 kWh per month will see a $3.10 decrease in their monthly bill this quarter.
• As a reminder, the Fuel and Purchased Power rate is a straight pass-through charge. GVEA's members are only charged the actual cost to generate and purchase power, there is no mark-up. This charge is an estimate of what GVEA anticipates will be its costs over the next three months to generate and purchase the energy necessary to meet the electrical needs of its members and a true up of any over-collected or under-collected amounts from the prior quarter.
• This adjustment reflects:
  • Lower fuel prices and load requirements in the previous quarter (Sept-Nov), and
  • Projections of stable fuel prices and high generation from Healy Units 1 and 2, with no scheduled outages for Dec-Feb.

Effective January 1, 2025

• Utility & Demand Charges
• Starting January 1, 2025, a 3% increase to the Utility and Demand charges will go into effect, which will apply to all members. For residential members using an average of 600 kWh per month will see an increase of about $2.53.
• Twice a year, GVEA files a simplified rate filing (SRF), with any requested rate changes effective January 1 and June 1 of each year. The SRF process only affects the Utility Charge, and if applicable, the Demand Charge on a member's bill.
• Why the increase?
  • Rising costs are a challenge GVEA has faced for some time. This adjustment helps the cooperative recover operational expenses and maintain financial stability to continue providing reliable power to our members.

Both of these rate changes combined, which will begin in January, will result in an overall decrease for average residential members of about $0.57.