Tuesday, September 8, 2009

The HEA Board will meet Tuesday, September 8,

in the Kenai Offices, 280 Airport Way, Kenai AK 99611.

Operations Committee 11:00 AM
Finance Committee 2:00 PM
Regular Board Meeting 5:30 PM

Meeting agendas are now available on the HEA website:


Please consider attending one of these sessions.
It remains important that some regular members attend Board Meetings to show ongoing interest with our electric cooperative's affairs.

If you would like to attend but cannot travel to Kenai, consider asking the meeting to be teleconferenced to the Homer office.
Homer Office (907) 235-8551 -- Kenai Office (800) 478-8551



HEA anticipates a rate reduction beginning October 1

Homer Electric Association’s blended rate is anticipated to go down by 12.57 percent for the fourth quarter of 2009. The new rates are scheduled to go into effect for all billings starting on October 1.

The reduction is the result of a 55.7 percent decrease in the wholesale power cost rate adjustment (WPCRA), from 4.439 cents to 1.966 cents under terms of a filing that will be submitted on August 31 to the Regulatory Commission of Alaska (RCA).

The WPCRA is adjusted quarterly to reflect changes in the cost of power purchased from Chugach Electric Association. Homer Electric is under contract to purchase its power from Chugach Electric through 2013. Natural gas is the fuel used to generate more than 90 percent of the power sold to Homer Electric.

In addition, Homer Electric submitted a Simplified Rate Filing on August 14 to the RCA requesting a 1.83 percent increase to the energy base rate. For residential members, this will be an increase from 13.296 cents per kilowatt hour to 13.539 cents per kilowatt hour in the fourth quarter.

If approved by the RCA, the decreased WPCRA rate, combined with the increase of HEA’s base rate, sets the new overall blended rate at 15.505 cents per kilowatt hour; a 12.57 percent reduction from the previous rate of 17.735 cents per kilowatt hour.

The new rate will mean a monthly savings of $14.05 for the average Homer Electric residential member using 630 kilowatt hours per month. The new rates for Homer Electric members are planned to go into effect starting with all billings as of October 1.