This story was originally published by Dermot Cole, Reporting from Alaska.
The average residential member of the Golden Valley Electric Association will see a $46 monthly increase in electric bills next month, created by Donald Trump’s decision to go to war with Iran.
The utility planned on paying $2.50 a gallon for diesel fuel, but Trump’s war pushed world oil prices up and diesel prices have doubled to more than $5 a gallon.
Gov. Mike Dunleavy has praised Trump’s war as a strategic master stroke.
Sen. Dan Sullivan and Rep. Nick Begich the Third also cheered the decision to go to war, though they claim that Trump did not really start a war with Iran. The war began nearly 50 years ago, they say.
Begich claims the “corrupt fanatical leadership” of Iran has to be removed, though there is no sign that will happen.
Sullivan claims Trump’s war is all about “reestablishing deterrence.” It’s also about things that Dunleavy, Sullivan and Begich won’t admit—worldwide economic problems and leaving Iran with control over the Strait of Hormuz.
Trump is under pressure to get a settlement that he can lie about and claim as a victory, even if it means giving Iran all that it wants.
Before the war that Trump “didn’t start,” Sullivan said Trump deserved credit for lowering gas prices, which Sullivan said amounted to a gigantic tax decrease. Sullivan refuses to say if Trump bears the blame for the gigantic tax increase in the last two months.
Dunleavy, Sullivan and Begich the Third, who all succumbed to Trump’s fumes long ago, are programmed to say the U.S. is enjoying energy dominance under Trump and that this is the Golden Age of Alaska.
But they refuse to talk about Trump’s role in raising fuel prices or how much more enjoyment we should expect from dominance.
This hasn’t stopped Sullivan from asking for campaign donations to “Pay for gas as we visit isolated rural areas of Alaska.”
The GVEA bill for 581 kilowatt hours was $192.55 in January, but that will rise to about $240 next month and continue through the summer at least.
No one knows how long world oil prices will remain where they are or if they will climb higher because of Trump’s decision to go to war.
Don’t blame GVEA for this. Blame Trump and the likes of cheerleaders Dunleavy, Sullivan and Begich.
Here is a memo to members from GVEA CEO Travis Million:
Over the past several weeks, I’ve shared in public meetings and messages to the membership that a substantial increase to the quarterly Fuel & Purchased Power (F&PP) charge adjustment was expected this summer due to rapidly escalating fuel costs. We now have updated data, and I want to be candid: this is an extraordinarily large increase – perhaps the most significant increase our cooperative has ever faced.
Beginning June 1 through August 31, the quarterly F&PP charge is projected to increase by $0.07873, from $0.12779 to $0.20652. For members using GVEA’s residential average of 581 kWh per month, this equates to a $45.74 increase to their electric bill.
I know so many households and businesses are already under significant financial strain after such a harsh winter, and I fully appreciate the fear and frustration that an increase of this magnitude creates. While I understand very clearly that knowing the reasons behind an increase of this amount does nothing to lessen its impact on your budgets, I also believe members deserve direct and transparent communication about the realities affecting our system, even when the news is difficult.
The primary reason for this increase is the staggering rise in liquid fuel prices following the outbreak of the war in Iran and the resulting impacts on global oil markets. When this quarter’s fuel projection was filed at the end of February with the Regulatory Commission of Alaska, diesel prices were expected to average approximately $2.50 per gallon. Since then, prices have climbed to more than $5.10 per gallon.
This quarter was also impacted by a combination of operational factors that increased the amount of diesel generation required to maintain reliable service. Several lower-cost generation units were temporarily offline for required annual maintenance. This work unfortunately cannot be deferred and is intentionally performed outside of winter months to minimize risk and avoid taking units offline during the coldest months of the year.
Independent power producers from which GVEA purchases power also experienced unplanned outages or reduced output during this period. Additionally, March was one of the coldest in Fairbanks’ history, and Golden Valley saw the highest electricity demand for the month of April that we’ve ever seen.
Context matters, and I know that understanding why this increase is happening is very different than being able to afford it. Please reach out to us if you’re struggling to pay your bill. During this quarter, GVEA will be offering extended payment plans in addition to our traditional payment holds and budget billing options. Please call us to explore what options are available to you.
Dermot Cole has worked as a newspaper reporter, columnist and author in Alaska for more than 40 years. Support his work here.
