Thursday, July 5, 2012

HEA Members Forum Update‏

Regular HEA/AEEC Meetings
Tuesday, July 10, 2012
10:00 AM -- Operations and Special Projects
1:00 PM -- Finance Committee
3:00 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting

Location: Meetings take place in the Homer Offices at 3977 Lake Street, 907-235-8551.  Video conferencing is available in the Kenai Offices at 280 Airport Way.  Draft agendas should available at least a day before meetings on the HEA website at There are sometimes last minute changes in scheduling, so check the website.

Rate Reduction
As of July 1 HEA's Cost of Power Adjustment (COPA) fell from $0.04997 to $0.03603 per kWh. This lowered your "blended rate" (COPA plus energy rate) from $0.17756 to $0.16362 per kWh. That's a $0.0139 per kWh reduction -- savings of $8.78 for a 630 kilowatt hour month.

What's In a Name?
After all the heartburn caused by adoption of the 150 kWh "minimum energy charge" HEA got the Regulatory Commission of Alaska to allow the name to be changed to "system delivery charge (SDC)." Either way it's all the same -- part of the real expense HEA incurs in maintaining all the equipment and facilities required to keep power flowing to your meter. You pay some more toward this expense through the monthly $15.00 customer charge. Since the amount of SDC can rise with your per kWh charge, the RCA limits the combined SDC and customer charge to $38.00 per month. While the minimum energy charge was formerly printed on every bill, even if zero kWh was billed, after August 1st. the SDC will print only on consumers’ bills that are eligible to receive the charge. Most HEA members will not see the SDC on their bill.

Net metering customers have been exempt from the minimum energy charge and will continue to be exempt from the SDC.  

Line Extension Policy Change
Review of the present line extension charges show that during the past six years, HEA invested over $2.6 million in developer projects resulting in zero kilowatt hour sales. Since these projects are not generating any revenue for our cooperative, the costs must be recovered through all HEA member rates. Earlier this year a new line extension policy designed to address the problem was sent to the Regulatory Commission of Alaska. If added to the HEA tariff the new policy would increase charges for putting in electric service, especially for real estate developers. In the face of opposition from some developers the proposal has been withdrawn until next fall to allow HEA and RCA staff to look at ways to address those concerns. 

Grass Roots Clean Energy Agenda
WASHINGTON, D.C. – June 27, 2012 – Fed up with the undue influence of the energy companies, utilities, lobbyists and other interests that are making it impossible for Washington to move forward decisively in achieving America’s clean energy future, 36 citizen organizations with more than 1.1 million combined members are joining forces to advance a nine-point “American Clean Energy Agenda” and to push for a serious renewable energy agenda no matter who is the next President or which party controls Congress.

Check out this interesting article forwarded to us by HEA Board of Directors Deputy Secretary, Jim Levine.