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HEA Launches Campaign for Deregulation

Homer Electric Association

Homer Electric Association has launched a campaign to convince their cooperative members to vote ‘yes’ for deregulation on an upcoming mail-in election ballot this fall.

HEA General Manager Brad Janorschke says by voting ‘yes’,  cooperative members would make HEA exempt from economic oversight by the Regulatory Commission of Alaska, and make the utility locally controlled.

“Giving the Homer Electric Board of Directors ultimate say or the final authority in the direction of the cooperative and the rates we set. Today, right now, we are economically regulated by the Regulatory Commission of Alaska and as you are probably familiar that commission is a five-commissioner board of directors, essentially, that oversees a lot of the utility functions in the state,” said 

The cooperative was started in 1950. It employs more than 140 people. HEA supplies members on the Kenai Peninsula with power and transports electricity across their grid to other utilities. They recently built a new power plant in Soldotna to reduce their reliance on other utilities for electricity.

Janorschke says deregulating would allow the cooperative to get things done faster and save money.

“We anticipate it to have a positive affect for our members financially. I know it will save us money, there’s no doubt about it – and then how that passes to the rates just depends on how the units perform and what our load is and what we can get on the spot market for gas,” said Janorschke.

Officials say the change would save at least $300,000 annually by removing the regulatory cost charge from members' bills plus cut down on costly attorney fees associated with rate hearings. Critics argue it would remove an important check and balance on rate increases.

HEA kicked off their campaign on Tuesday (Aug. 30) with an informational meeting in Port Graham. The visit was the first in a series of meetings scheduled for the Peninsula over the next several weeks. Janorschke says it is important that members participate in the election.

“Take the time, read up on it and make an informed vote. This is a cooperative, this is 

Credit Photo Courtesy of HEA
Brad Janorschke, HEA General Manager

  one of the benefits of an electric cooperative – is the board is asking for your participation and input. If you have questions please call. Look on our website. Call me. We’ve got a lot of meetings,” said Janorschke.

15 percent of HEA’s roughly 23,000 members must participate in the election in order for it to be valid.

Ballots will be mailed out in October and must be returned within 30 days. Election results will be made public on December 30.

Informational meetings are scheduled for the following communities in September and October:

·        Seldovia, Sept. 12

·        Anchor Point, Sept. 26

·        Kasiloff, Sept. 27

·        Homer, Sept. 28

·        Kenai, Sept. 29

·        Soldotna, Oct. 10

·        Sterling, Oct. 11

·        Funny River, Oct. 12

·        Nikiski, Oct. 13

Tags
News Kenai PeninsulaHomer Electric AssociationHEADeregulationElectricity Rates
Daysha Eaton holds a B.A. from Evergreen State College, and a M.A. from the University of Southern California. Daysha got her start in radio at Seattle public radio stations, KPLU and KUOW. Before coming to KBBI, she was the News Director at KYUK in Bethel. She has also worked as the Southcentral Reporter for KSKA in Anchorage.
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