COURIER The Kilowatt
August 2021
BATTERY ENERGY STORAGE SYSTEM (BESS) DELIVERED Increasing Reliability & Renewable Expansion Opportunities
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omer Electric Association (HEA) is developing its Battery Energy Storage System (BESS) which consists of 37 modular battery units (Megapacks) at its Soldotna Generation and Substation Facility. The BESS will be capable of storing 93 megawatt-hours (MWh) of electrical energy that can be delivered to the grid at a rate of 46.5 megawatts (MW). The BESS provides system stability and reduces outages. Ultimately, the BESS will allow HEA to meet its state-wide reliability standards. The BESS provides an opportunity for HEA to reduce its natural gas consumption and lower greenhouse gas emissions. Currently, HEA must constrain the operation of its gas-fired turbines for both spinning and regulating reserves. The BESS will allow those thermal units to operate more flexibly and with greater fuel efficiency. Also, the BESS’s far greater responsiveness will allow HEA to integrate non-firm renewable power to further reduce its natural gas fuel costs. Commissioning of the BESS will continue into this fall for operational use in late 2021.
RIGHT OF WAY (ROW) CLEARING
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EA clears its rights of way (ROW) every spring and summer on a sevenyear rotational schedule to prevent trees from falling on its power lines and causing outages, or even worse, a fire. Trees falling into power lines are one of the leading causes of power outages. Our member 76782003 and communities' safety is important and it is for this reason that HEA actively maintains and clears its rights of way. This year HEA, with its contractor, Carlos Tree Service, is clearing trees and brush from its power lines in the Anchor Point/Ninilchik/Nikolaevsk area. The 2021 ROW schedule will focus on clearing vegetation hazards in: • Anchor Point South to the South end of the Old Sterling Highway and all of North and South Fork Road, including the town of Nikolaevsk • Anchor Point North to the Sunset Bluff area, including Ninilchik and Oilwell Road Learn more about HEA's ROW clearing and listen to a podcast from Jeff Jaworski, Operations Contract/Mechanic Shop Superintendent, on ROW clearing at https:// www.homerelectric.com/safety/row-maintenance-program/.
HEA PAYS OFF BRADLEY LAKE PROJECT BONDS
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radley Lake Hydro is the largest of seven hydroelectric facilities in the state and is owned by the State of Alaska and operated by HEA. HEA and the other Railbelt electric utilities financed the original project through 30-year bonds and are each allocated a share of the power generated by Bradley Lake. HEA paid off its bonds in July 2021. HEA will continue to make the payments (as if the bonds were in place) to provide for its share of the future expenses. To learn more about the Bradley Lake Hydroelectric Facility, visit https://www.homerelectric. com/my-cooperative/power-generation/bradley-lake-project/.
Kilowatt Courier is a monthly online publication by Homer Electric Association, Inc.
HB69 PROVIDES PANDEMIC RELIEF FOR CO-OP MEMBERS
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HIDDEN ouse Bill 69 was recently enacted into law and will provide additional funds ACCOUNT NUMBERS for HEA members struggling to pay utility bills as a result of COVID-19. HB69 allocated $7 million to electric utilities to be used for losses arising from unpaid Three randomly chosen italicized account numbers are hidden electric bills. The Department of Commerce will administer the distribution of these in the Kilowatt Courier. funds. HEA anticipates that some of this money will be available to 96564003 help If you find YOUR account number, call its members as early as this fall. 235-3338 and you'll receive a $50 credit which will be reflected on PPP LOAN FORGIVEN your next bill. Thanks for n May 2020, HEA applied for and received a $4.8 million low-interest loan as part reading! of the Paycheck Protection Program (PPP) from the Small Business Administration. The funds were restricted for certain qualifying expenses, primarily payroll costs, during the covered period. After a lengthy application and review process, HEA was notified in June 2021 CURRENT RESIDENTIAL RATES that it met all the spending, recording and reporting requirements to successfully receive full As of July 1, 2021 forgiveness of the loan and interest. This program helped the cooperative weather a financially challenging year by keeping people employed and reducing costs to our members.
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GIVING BACK TO OUR COMMUNITY
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EA is community-focused and contributes charitable donations, sponsorships, and contributions to non-profit groups and schools for the purpose of public benefit within our 52610003 service territory. In 2021, HEA supported the following organizations: Kachemak Ski Club Sterling Community Center Homer Little League Nikiski Fire Fighters Kenai River Sportfishing Association SOHI Prom KCHS Band Homer High School Prom Homer Steps Up Pier One Theatre
Peninsula Oilers Baseball Kenai Dog Park Center for Alaskan Coastal Studies KCHS Football Golf Tournament Salamatof Johnny Monfor Golf Classic Kenai Peninsula Fair New Hope Counseling Center Triumative Theatre Kachemak City Playground Homer Hockey Association
All Residential Customers Energy charge = 16.077 cents/kWh Customer charge = $20.00 System delivery charge = $24.12* (*If usage is less than 150 kWh)
Cost of Power Adjustment (COPA) 7.99 cents per kWh* (*Subject to change on a quarterly basis and upon RCA approval.)
See www.homerelectric.com for the latest residential and commercial rates. 30434001
BOARD of DIRECTORS & MANAGER Ed Oberts, President (907) 398-8039
JOIN HOMER ELECTRIC
Erin McKittrick, Vice President (907) 299-6994 Jim Duffield, Sec./Treasurer (907) 283-2203 Jim Levine, Deputy Secretary (907) 299-0323
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COMMUNITY MEETINGS
LUNCH PROVIDED | ENERGY CREDIT DRAWING | PRESENTATION August 26, 2021 | Noon to 1 pm | Seldovia Sea Otter Community Center September 2, 2021 | Noon to 1 pm | Nanwalek School Gym
Dan Chay, Director (907) 283-9227 Mike Chenault, Director (907) 398-1010 Louie Flora, Director (907) 717-9602 Charles "C.O." Rudstrom, Director (907 ) 420-7124 Robert Wall, Director (907) 398-9191 Brad Janorschke, General Manager (907) 283-2312
MONTHLY FINANCIAL UPDATE
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omer Electric finished the month of June 2021 with a total asset base of $264.6 million. Operating revenue to date was $52.5 million and total costs were $49.1 million, bringing net operating margins to $3.4 million through June 30, 2021. This chart is a breakdown of key financial indicators comparing June 2020 to June 2021. Year to Date Operating Revenue Cost of Purchased Power
June 30, 2021 $52.5 million $32.4 million
June 30, 2020 $52.0 million $32.4 million
Cost of Electric Service Operating Margins
$16.7 million
$17.5 million
$3.4 million
$2.1 million
Total Kilowatt Hours Sold Total Number of Meters
231.9 million
223.0 million
35,810
35,448
AUGUST 2021 KILOWATT COURIER Homer Electric Association, Inc. 3977 Lake Street Homer, AK 99603 (907) 235-8551 (800) 478-8551 280 Airport Way Kenai, AK 99611 (907) 283-5831 www.homerelectric.com Homer Electric Association, Inc. is an equal opportunity provider and employer.