Homer Electric Association announced a 3.5% increase in its rates beginning January 1.
HEA cited inflation as the reason for the increase, and said it has driven prices up by almost 20% since the start of the pandemic. Electric utilities across the state and country have seen increased prices for services and materials as a result, according to a press release from the association.
The change will increase residential electric bills from about $0.16 per kilowatt hour to $.17 per kilowatt hour. HEA says their average customer uses 550 kilowatt hours per month.
The state regulatory agency approved the increase on Friday, Dec. 8.
HEA serves most of the Kenai Peninsula, excluding Seward and some rural communities on the eastern peninsula. Although a looming shortage of Cook Inlet natural gas has dominated legislative conversations and left utilities looking for new sources of gas, HEA points only to inflation for this particular rate hike.
