The Consolidated Commission on Utilities on Tuesday gave GPA the green light to seek the Public Utilities Commission’s approval for the rate increase.
Called the Levelized Energy Adjustment Clause, or fuel surcharge, GPA said in a statement that a significant rise in its fuel costs amounted to about $7 million in under recovered expenses.
That translates to about a 17 percent increase per month.
Or for an average household that uses 1,000 kilowatts per month, that could mean about $34.36 more per month.
The power company said if the increase is approved next February, then it would be about the same rate as it was in February 2009, when oil prices were about the same per barrel.
In addition, GPA said a $5.1 million Bank of America settlement fund will be used to offset a two percent increase that was scheduled in April 2011, but will now be deferred until April 2012.
“During this upcoming LEAC period, GPA will also closely monitor the fuel oil market for any opportunities to pass on savings to customers,” GPA stated.
