Electric Bill

Monthly bills include three basic components:  customer charge, energy charge, and the fuel and purchased power charge.  For certain large commercial customers there is also a demand charge.

The customer charge is a flat monthly charge which collects the cost of meter depreciation, meter reading expense, and the cost of billing and collection activities.

The energy charge, which is billed on a kilowatt-hour basis, collects the cost of generating and distributing electricity other than the fuel and purchased power cost.

The Fuel and Purchased Power charge, or FPPC, collects the cost of diesel fuel at the Glennallen and Valdez diesel plants, the cost of LSR fuel at the cogeneration project, and the cost of power purchased from the state-owned Solomon Gulch hydroelectric facility.

The FPPC is billed on a per-kilowatt-hour basis and is charged uniformly to all customers regardless of which rate class they may fall in.

The FPPC is calculated quarterly and is based on a number of assumptions for the ensuing quarter including the price of fuels, the cost of power purchased from Solomon Gulch, kilowatt hour sales, percentage of generation mix (fuel versus hydro), distribution system line losses, and the number of gallons of fuel required to generate electricity at the diesel and cogeneration plants.

The difference in cost resulting from the use of estimates is known one month after the fact.  This cost is accumulated in a variance account, the balance of which is factored back into the calculation in the next calendar quarter.

CVEA does not collect a margin on fuel and purchased power cost.

In addition to the foregoing charges, large commercial customers may also pay a demand charge which is assessed based on the metered monthly kilowatt demand for that particular customer.

If you have more questions, please call either office at 822-3211 or 835-4301.

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