A 4% rate increase announced by the Homer Electric Association last month has been approved by the Regulatory Commission of Alaska.

According to a Dec. 30 press release, the increase — which was ratified by HEA’s board of directors in November and approved by the RCA on Dec. 24 — applies to customers’ base rates and affects all residential and commercial customer classifications, effective Jan. 1.

The cost of power adjustment, or COPA, is expected to decrease due to a larger percentage of HEA’s energy being generated by hydropower from Bradley Lake, rather than natural gas-fueled sources. An example provided in the release depicts that residential customers using an average of 550 kilowatt-hours per month will see their base rates increase by $3.77 and their COPA decrease by $9.49.

This is the third base rate increase enacted by HEA since January 2024. The cooperative has cited significant inflation as the primary driving factors behind the increases, though HEA’s chief financial officer also said last month that the COPA decrease “will more than offset” the base rate increase during these winter months.