State energy subsidies are going down, which means energy costs in Nome are going up.
Nome utility customers should expect to see around a five dollar increase in their monthly energy bill this year from the state lowering the Power Cost Equalization (PCE) rate.
John Handeland is the Nome Joint Utility Manger. He explains what the change means for Nome residents: “The rate that we get will go down, because the floor or the base went up by seven-tenths of a cent. So basically that’s one cent, and you’re eligible for 500 kilowatts so potentially five dollars. In essence, your bill will go up five dollars.”
Every year the state calculates the cost of energy in Alaska’s urban centers—Anchorage, Fairbanks, and Juneau. Using those costs as a baseline, the state then pays an energy subsidy to rural areas to bring rural energy rates closer to urban rates.
Basically, since urban energy rates increased this year, rural energy rates are also increasing.
The PCE adjustment took effect July 1st.