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Homer Residents Question HEA Deregulation

Shahla Farzan / KBBI

Homer Electric Association held an informational meeting on September 28 to answer questions about the upcoming vote on deregulation.

The meeting, which was held at Islands and Ocean Visitor Center, attracted over 100 people. The overwhelming majority were HEA customers who expressed concerns about the consequences of deregulation.

Some Homer residents, like Melanie Meeker, are worried about the potential for drastic rate increases.

“I did talk to one board of director a few days ago and one of his comments was that the regulatory commission fee on our bills would disappear. I went and pulled my bills and on this particular bill, the regulatory cost charge is 17 cents. My argument to that would be, I would much rather pay 17 cents than a $20 per month increase,” said Meeker.

HEA claims that more local control could reduce regulatory operating costs. But officials at the Wednesday meeting acknowledged that customers would probably not see a rate decrease.

Under local control, HEA would operate without oversight from the Regulatory Commission of Alaska, or RCA.

Homer resident Mike O’Meara said members would have fewer options for appealing HEA board decisions if the cooperative is deregulated.

“RCA acts as an intermediate source of appeal presently. Whereas under deregulation, the only appeal you’ll have beyond the board is to go to Superior Court,” said O’Meara.

HEA is the only power provider for much of the Kenai Peninsula, with around 23,000 members.

Ballots for the deregulation vote will be mailed to HEA customers in October. The final results will be released in December.

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