COURIER The Kilowatt
January 2022
TAKE OWNERSHIP IN YOUR COOPERATIVE & SERVE ON THE HEA BOARD OF DIRECTORS
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here is an opportunity each year for Homer Electric Association (HEA) members to make a difference and participate in their cooperative by serving on the HEA Board of Directors. The nomination period will open January 12, 2022 for members interested in serving on the cooperative's Board of Directors. Candidacy packets are available later this month on HEA's website and in both HEA offices.
Director Qualifications for Candidacy
• Must be a "bona fide resident," which means a person whose primary residence is within HEA's service area, by March 20, 2021. (at least twelve (12) months preceding the date which is forty-five (45) days prior to the meeting of the members). 39896 • Candidates must obtain at least fifteen (15) member signatures within their district for official nomination included in their candidate application. The nomination period will remain open until 5:00 p.m. on Friday, March 4th, 2022, when completed candidate applications are due. Election ballots will be mailed to the membership on April 4th, 2022 and election results will be announced the day of HEA's Annual Meeting of the Members on May 4th, 2022. If you have any questions about the nomination or election process, contact Keriann Baker at (907) 235-3302.
HEA TERMINATES MEMBERSHIP AND FILES LAWSUIT AFTER DISCOVERING ENERGY THEFT
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omer Electric Association adopted Resolution 45.2021.29 terminating the membership of Sterling resident Max Finch for power theft. Finch took electric service from HEA by tapping into an underground service wire and feeding electric current into his campground business. Finch was previously fined by HEA in 2013 for power diversion that damaged two meters and three transformers. HEA has calculated the value of the electricity taken by Finch since 2014 to be more than $325,000. HEA is taking action and seeking to recover damages from Mr. Finch in District Court in order to prevent its members from bearing the cost of power theft in their electric rates. 21041
2022 SCHOLARSHIP OPPORTUNITIES
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very year, HEA’s Scholarship Committee awards a number of academic or vocational scholarships for an amount to be determined by the Board of Directors each calendar year. The scholarships are available for students of all ages – both graduating seniors and adults wishing to continue their education. Scholarship recipients are selected in April and are recognized at the HEA Annual Membership Meeting in May. To qualify, students (or their parent or guardian) must be a member of HEA. Dependents of members must be eligible for the Permanent Fund Dividend. Scholarships are funded through the interest earned on unclaimed capital credits and they do not affect electric rates. Deadline to apply is March 1, 2022. Download the 2022 Scholarship Packet on HEA's website and apply today! Questions? Please contact Tanya Lautaret at (907) 283-2305 or email tlautaret@homerelectric.com. Kilowatt Courier is a monthly online publication by Homer Electric Association, Inc.
COST OF POWER ADJUSTMENT RATE DECREASE IN 2022
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HIDDEN
omer Electric Association members will likely see a minimal decrease in their ACCOUNT NUMBERS monthly bills beginning January 1, 2022. The Regulatory Commission of Alaska Three randomly chosen italicized (RCA) approved a Cost of Power Adjustment (COPA) December 2021. The COPA is account numbers are hidden adjusted on a quarterly basis and is impacted by the cost of natural gas used to in the Kilowatt Courier. generate power for HEA members. If you find YOUR account number, call The COPA rate for the first quarter of 2022 is calculated to decrease from the 235-3338 and you'll receive a $50 current rate of $0.07726 to $0.07600 per kilowatt hour. The COPA change will result credit which will be reflected on in a slight 1.63% decrease of $.69 in the monthly bill for the average residential HEA your next bill. Thanks for member using 550 kilowatt hours per month. The rate changes are scheduled to be in reading! effect as of January 1, 2022.
STRONG WINDS RING IN THE NEW YEAR CAUSING POWER OUTAGES IMPACTING HEA AND OTHER RAILBELT UTILITIES
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torms over the past several weeks have caused extensive outages and damages across the state of Alaska including the Kenai Peninsula. On New Year’s Day a windstorm with winds just shy of 60 miles per hour whipped through HEA’s service territory causing 175 separate outages impacting 10,475 meters. This resulted in a loss of power for approximately 6,500 members over the holiday. HEA linemen worked around the clock to restore power to its members. Journalists and HEA Members have asked how future outages can be prevented or what can be done to diminish the impacts. Almost all of the outages were caused when dead trees from outside HEA’s right away were blown onto transmission lines. The easiest way to prevent outages is to remove dead beetle kill trees and loose vegetation on your private property. On the north end of the service area the spruce bark beetle has aggressively attacked vegetation leaving dead trees rotting in place. When strong winds come through an area impacted by the spruce bark beetle the dead trees turn into projectiles. Accordingly, when the windstorm hit the Kenai Peninsula on New Year’s Day these dead trees caused extensive damage. HEA removed hundreds of trees from its transmission lines during this storm event. In some cases, HEA would restore power and restring the line only to have to return to the same location hours later to remove new trees and restring the same line. As we move into the new year, take a moment to look around your property and make a spring-cleaning landscape plan to remove those dead trees. Not only will this prevent your trees from becoming a hazard during a winter storm but these actions will also provide fire protection.
CURRENT RESIDENTIAL RATES As of January 1, 2022
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) 7.60 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.
BOARD of DIRECTORS & MANAGER Ed Oberts, President (907) 398-8039 Erin McKittrick, Vice President (907) 299-6994 Jim Duffield, Sec./Treasurer (907) 283-2203 Jim Levine, Deputy Secretary (907) 299-0323 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
MONTHLY FINANCIAL UPDATE
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omer Electric finished the month of November 2021 with a total asset base of $ 267.5 million. Operating revenue to date was $ 96.3 million and total costs were $ 90.8 million, bringing net operating margins to $ 5.5 million through November 30, 2021. This chart is a breakdown of key financial indicators comparing November 2020 to November 2021. Year to Date Operating Revenue Cost of Purchased Power
November 30, 2021 $ 96.3 million $ 59.0 million
November 30, 2020 $ 95.9 million $ 59.8 million
Cost of Electric Service Operating Margins
$ 31.8 million
$ 32.0 million
$ 5.5 million
$ 4.1 million
Total Kilowatt Hours Sold Total Number of Meters
433.4 million
411.1 million
35,865
35,599
Brad Janorschke, General Manager (907) 283-2312
JANUARY 2022 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 87303 opportunity provider and employer.