HEA Anticipates Rate Change for 3rd Quarter 2017

June 9, 2017 – Homer Electric Association (HEA) members will likely see a rate increase effective July 1, 2017.

HEA has submitted a filing with the Regulatory Commission of Alaska (RCA) that increases the Cost of Power Adjustment (COPA) from $0.06865 per kilowatt-hour to $0.07205 per kilowatt-hour.

COPA reflects the cost of the fuel purchased by HEA to generate electricity and is adjusted on a quarterly basis.

The new rate will mean an increase of $1.87 per month for the average HEA residential member using 550-kilowatt hours a month.

Pending approval from the Regulatory Commission of Alaska, the rate change will be effective July 1, 2017.

HEA Crews Respond to Funny River Outage

May 25, 2017 – Homer Electric Association, Inc. responded to an outage in the Scout Lake/Funny River areas in Soldotna at around 6:14 AM this morning.

There were 708 members without power. HEA was able to restore power to 348 members in the Scout Lake area at 8:51 AM. Power was restored to the remaining 360 members in the Funny River area at 11:06 AM. The cause of the outage was a tree had fallen through the power lines, breaking the line.

Capital Credit Allocation Notice on June Statement

May 10, 2017 – Homer Electric members will be receiving capital credit allocation notices on their June statement. This notice is to inform members of their equity accrued in HEA for the year 2016.

The patronage capital credits will be reflected on your statement as “Notice of Capital Credit Allocation.” This represents your share of the margins realized by your Cooperative for the year 2016. These margins are allocated to all member-owners based upon the total dollar amount purchased for electric energy in 2016.

Capital credits shown on the June statements cannot be applied to electric bills or toward payment for other HEA services. This is not a refund. The decision to refund capital credits rests solely with the HEA Board of Directors and is dependent on the financial situation of the Cooperative and the provisions of its By-Laws. Should you discontinue service with HEA and/or change current mailing address, please notify HEA of the new address as there may be future correspondence relative to the final disposition of these capital credits.

For more information on capital credits, go to http://www.homerelectric.com/my-benefits/

HEA Schedules Summer Project to Improve Reliability

May 1, 2017 –  Homer Electric will be working in Homer this summer on a project that will improve the reliability and extend the life of underground cable.

Homer Electric’s underground electrical cables are aging, which means that their protective insulation is beginning to deteriorate. This can cause cracks, which can lead to unplanned power outages.  Homer Electric is working with a company called Novinium to repair the cables using a silicone injection process. The silicone fills the cracks in the cables and extends their useful life up to 40 years.

The cable injection work will take place in Homer neighborhoods in the West Hill/Diamond Ridge/Skyline areas this spring and summer.  The work will require intermittent power outages for HEA members in these areas where the injection is taking place. The number of power interruptions will be kept to a minimum and every effort will be made to limit the duration of the outages.

HEA will provide advance notice to affected neighborhoods prior to the start of the work.

For questions regarding the project, please contact HEA Engineering Services Supervisor Dale Marsengill at 235-3353 in Homer.

Homer Electric returns capital credits to members

Homer Electric Association, Inc. (HEA), a member-owned not-for-profit electric cooperative, is distributing $1.5 million in capital credits to its members. The capital credits will be distributed to approximately 10,000 members and former members the week of April 17, 2017.
The capital credit checks are being distributed to people who were members of HEA during 1986 and 1987. The amount of each check is determined by the quantity of electricity purchased during each of those years; the more electricity purchased, the larger the capital credit check will be.
The equity retirement plan calls for $1.5 million in 1986 and 1987 margins, or earnings, to be distributed to HEA members who purchased electricity during those years.
The average check for someone who was a residential member in both 1986 and 1987 will be approximately $75.00.
Capital credits represent HEA members’ share of equity in the utility and is one of the benefits of being a member of an electric cooperative. Capital credits are based on margins, which are the difference between total expenses and total revenues of the cooperative. Each year, HEA allocates margins to its members in proportion to the amount they paid for electric service.
While the allocation is done annually, the return of margins in the form of a capital credit check occurs at the discretion of the Board of Directors, based on the financial health of the cooperative.
Prior to refunding capital credits, the cooperative uses its margins to maintain equity and fund long-term capital projects to improve and upgrade the electrical system.
From 1960 through 2017, HEA has returned over $18.9 million in capital credits to members of the cooperative.

HEA Board Election Update

Six candidates will be on the ballot for the Homer Electric Association, Inc. (HEA) Board of Directors’ 2017 election. The deadline to apply for a seat on the board was March 3, 2017.
HEA directors are elected by the members in their respective district, with members voting only for the candidates residing in their district. This year, the following candidates are seeking election to the HEA board:
• In District 1 (Kenai – Nikiski- parts of Soldotna area), the candidates are incumbent Kelly J. Bookey of Kenai and Kate Veh of Soldotna.
• In District 2 (Soldotna – Sterling – Kasilof), the candidates are incumbent Richard “Dick” Waisanen of Soldotna and Daniel N. Furlong of Soldotna.
• In District 3 (Kasilof south to Kachemak Bay area), the candidates are incumbent Eugene Alan “Jim” Levine of Homer and Doug Stark of Homer.
Candidate information is available on HEA’s website at www.homerelectric.com. The ballots will be mailed to HEA members on April 3, 2017. Completed mail-in ballots must be received in the mail by May 3, 2017, for validation. If HEA members are unable to complete a mail-in ballot, members will also have an opportunity to vote at the 2017 Annual Meeting of the Members, which will be held May 4, 2017 at Soldotna High School.
For more details about the election and the Annual Meeting of the Members, please contact HEA at 800-478-8551 or our website at www.homerelectric.com.

For additional information regarding this press release, please call Bruce Shelley at 283-2324.

HEA Casts AEEC Deregulation Vote

December 21, 2016 – Homer Electric Association, Inc. (HEA) announces that on December 21, 2016, it cast its single vote not to deregulate its subsidiary, Alaska Electric and Energy Cooperative (AEEC) from the Regulatory Commission of Alaska (RCA).

Upon confirmation that the HEA membership voted against deregulation from the RCA and the vote had been certified by the RCA, HEA echoed the wishes of its members and voted NO to deregulating the AEEC from the RCA.

Because of the rules governing a deregulation election, a separate election was required for HEA’s subsidiary, AEEC, with HEA voting as the only member of the subsidiary.

HEA Deregulation Vote Results

December 20, 2016 – Homer Electric Association, Inc. (HEA) announces December 20, 2016, the membership has voted against deregulation from the Regulatory Commission of Alaska.

A total of 6,894 votes were received and certified. The final count was 2,041 yes votes and 4,853 no votes.

The HEA Board of Directors would like to thank each and every one of the members for voting on this important matter. Almost one third of the membership voted which highlights one of the values of the cooperative model, enabling members to provide direction to their utility.

HEA Anticipates Slight Rate Increase in January 2017

December 5, 2016 – Homer Electric Association (HEA) members could see a slight increase in their monthly bills beginning January 5, 2017, if two filings with the Regulatory Commission of Alaska (RCA) are approved.

In the first filing, made on November 23, 2016 as a result of the rate case originally filed in late 2015, HEA proposes an increase to both the residential and general service monthly customer charges from $15.49 to $20.00. It also proposes to decrease the residential service energy rate from the current interim rate of $0.15366 to $0.14866 and the general service energy rate from $0.15497 to $0.15473 per kilowatt hour.

This filing also changes the interim large general service rates. The energy rate decreases from $0.10394 to $0.09723 per kilowatt hour, the customer charge decreases from $51.63 to $50.00 and the demand charge increases from $17.23 to $20.00 per kilowatt.

In the second filing, HEA proposes a decrease to the Cost of Power Adjustment (COPA) rate from $0.07614 to $0.07373 per kilowatt hour. The COPA is adjusted on a quarterly basis and primarily reflects the cost of natural gas used to generate power for HEA members.

Overall, the proposed changes would decrease the blended residential rate (energy rate plus COPA) from $0.22980 to $0.22239 per kilowatt hour.

The combined proposed rate changes will result in an increase of 43 cents in the monthly bill for the average residential HEA member using 550 kilowatt hours.

If approved by the Regulatory Commission of Alaska, both changes will be effective on January 5, 2017.

RCA Approved Gas Pipeline Rate Increases

October 12, 2016 –  Homer Electric Association members did see a rate increase effective October 1st to the Cost of Power Adjustment (COPA), which is the fuel purchased by HEA to generate electricity and is adjusted on a quarterly basis. A major driver in the increase was the Regulatory Commission of Alaska (RCA) granting of an interim and refundable rate increase to the Kenai Beluga Pipeline LLC (KBPL). HEA did intervene in this rate case to represent the Cooperative’s interests. The RCA approved increase to the pipeline rate was based on an anticipated reduction in pipeline through-put volumes and an increase in capital costs from new equipment installed to aid in shipping gas off the Kenai Peninsula. The pipeline interim rate, approved by the RCA, increased 119%, from $0.2915 to $0.6398 per Mcf.

As a result, HEA had to submit a quarterly filing with the Regulatory Commission of Alaska (RCA) to increase the Cost of Power Adjustment (COPA) from $0.06286 per kilowatt hour to $0.07614 per kilowatt hour. The new rate will mean an increase of $7.30 per month for the average HEA member using 550 kilowatt hours a month. HEA is researching opportunities to reduce the impact of the pipeline tariff increase on our members. The final pipeline rate is subject to further RCA approval and may differ based on the findings at future proceedings.