Fuel costs affect annual BAH review

  • Published
  • By Major David Hamiel
  • 354th Comptroller Squadron
EIELSON AIR FORCE BASE, Ak --  This is the fourth in a series of articles written to keep the Eielson community informed about heating fuel price concerns. 

The 354th Fighter Wing and 11th Air Force leadership understand that escalating utility costs in Alaska continue to be a concern for our entire Eielson team. Leadership continues to be intimately engaged in the annual Basic Allowance for Housing rate review process. The following details the current status of the annual review and where we are in the process.

The Per Diem, Travel and Transportation Allowance Committee manages the 12-month BAH rate setting cycle. The cycle begins annually in February with the release of BAH review instructions to each installation's Military Housing Referral Office. The MHO collects local rental costs and submits data to the committee three times a year in the months of May, June and July.

This information is used in conjunction with data collected by the committee's contracted independent research and data collection firm, Runzheimer International. Runzheimer provides independent rental, utility and insurance costs for all U.S. localities to the committee for use in calculating BAH rates.

The committee calculates the rates and submits them in October to the services for review. Once reviewed and approved, updated BAH rates are published in December and become effective in conjunction with the annual pay raise typically effective the first of the year. By law, BAH rates can only be updated in conjunction with a pay raise.

The Service-level BAH rate review process is currently underway. The committee has confirmed that not only is the latest utility consumption data used but also factored into the updated rates. The committee anticipates future rate changes provided by the local utility companies.

Although the annual review process underway will address current heating fuel cost concerns, it does not address the need for a mechanism to update BAH rates more often than once a year in response to frequent and volatile fuel cost increases.

The 11th Air Force Commander, Lt. Gen. Dana Atkins, is spearheading the effort to energize Air Staff to work with the other services on the feasibility to amend existing laws that are not responsive to the volatile market dynamics we are witnessing in the energy sector.

Locally, General Atkins has tasked Alaska Command J1 to conduct a statistical analysis of the costs and magnitude of the heating fuel concern. The analysis will review the percentage of all military members in Alaska living on the economy. It will include the analysis of current and historical prices of heating fuel, average monthly consumption and cost relative to the square footage of the residences. This analysis will be used to justify and reinforce the magnitude of concern to Air Staff.

The 354 Civil Engineering Squadron sent out a survey last week to all personnel residing off-base in an effort to capture this data. If you have not already, please take the time to complete and return the survey. If deemed feasible by the services, drafting and staffing legislation to change laws will take time. It is important to understand that although changes will not be instantaneous, progress is being made for the future.

If you have questions about BAH or other military pay issues, please contact our customer service line at 377-1851 or send an email to 354cpts.customerservice@eielson.af.mil.