COURIER The Kilowatt
May 2021
ANNUAL REPORT FROM HEA BOARD PRESIDENT & MANAGEMENT
CALL 8-1-1 BEFORE YOU DIG Working on an outdoor project? Always call 8-1-1 first, because you never know what’s below.
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his past year has challenged us to come together like never before. Together we have met the challenge to achieve our operational goals, keeping in mind our mission and strategic plan initiatives.
2020 efforts on Strategic Plan initiatives were focused on the following: • Developing and installing a Battery Energy Storage System (BESS); • Developing an electric vehicle (EV) education program and pursuing EV charging station installations; • Continuing progress on our Grant Lake Hydroelectric Project; • Participating in the currently being developed Electric Reliability Organization (ERO); • Implementing and conforming to safety protocols to maximize protection of employees and members from COVID-19; and • Negotiating the sale of the Sterling to Quartz Creek transmission line. As we celebrate these accomplishments, it is difficult to ignore the hardship and loss that the events of 2020 brought to our doorstep. COVID-19 continues to harm our communities. We continue to face new challenges including rising fuel costs, reliability issues caused by the spruce bark beetle infestation, and regulatory burdens created by the passage of legislation (SB 123 and SB 241) last spring that significantly 12436003 impact utility operations. We responded to these challenges head-on while continuing our mission to provide safe, reliable electricity. Over the coming months, we will finalize our recently revitalized strategic plan to re-assess our changing circumstances and better prepare for the future.
HEA 2021 - 2023 Strategic Plan Initiatives
The following strategic initiatives were developed by the HEA Board and management team and were based on an in-depth review of internal capabilities and external business drivers. These four initiatives represent the key areas of focus for our team, for the years 2021 through 2023.
1
Diversify generation resources and reduce carbon emissions.
A. Achieve a renewable energy goal of 50% by 2025. B. Continue progress on Grant Lake Project, expected to be online in 2026. C. Identify and pursue utility-scale renewable resources.
Respect the markers and lines provided by the affected utilities. They are your guide for the duration of your project.
2
Develop strategies to manage and mitigate new and existing regulatory burdens, while capitalizing on emerging opportunities. A. Constructively participate in forming and implementing an Electric Reliability Organization (ERO). B. Initiate 46449001 required studies for the next rate case in 2023.
3
Create new, diverse sources of revenue.
A. Explore and develop strategic programs for beneficial use of electric power including incentives, sales, partnerships, and other revenue-generating services. B. Explore economic development opportunities to increase load by creating community and business partnerships. continued on back page... Kilowatt Courier is a monthly online publication by Homer Electric Association, Inc.
HEA 2021 - 2023 Strategic Plan Initiatives continued...
4
Improve the member experience by developing new service programs.
HIDDEN ACCOUNT NUMBERS
Three randomly chosen italicized A. Maximize functionality of member-facing technology to improve member account numbers are hidden experience and engagement. in the Kilowatt Courier. B. Develop new demographic-specific communication and member engagement If you find YOUR account number, call 235-3338 and you'll receive a $50 strategies. credit which will be reflected on The past year has reminded us of one important thing. Even though we may face an your next bill. Thanks for uncertain future, there is one constant that remains – we do better when we work together reading! constructively. ~ Dan Chay, HEA Board President & Brad Janorschke, General Manager
CURRENT RESIDENTIAL RATES
SAFE CAMPFIRES HELP PREVENT WILDFIRES
W
ith the winter snowpack finally melting off and warmer temperatures, it won’t be long before Alaskans take to the woods and waterways to go camping. Alaskans love to take advantage of our long, summer daylight hours and proximity to the wilderness. There is something about sleeping in a tent, sitting around a campfire and enjoying the beauty and solitude of Alaska that appeals to our primitive nature. And as we all know, camping isn’t really camping if you don’t have a campfire. Whether you’re cooking smores, singing songs, telling stories or just relaxing around a crackling fire enjoying a quiet moment in the company of friends and family a campfire provides comfort and security. But campfires can also lead to wildfires if they are not handled with care. Each year in Alaska, dozens of wildfires are started by abandoned or unattended campfires. Most of these fires are small and burn out or are extinguished before they are discovered or pose a threat. However, all it takes is one spark from one campfire to ignite a devastating wildfire. Here are some tips on how to have a safe campfire: • Check to make sure campfires are allowed where you are. • Consider using a fire pan for your fire. • Situate your fire in safe spot. • Don't use accelerants like gasoline. • Keep your fire small and manageable. • Have tools and water on hand. • Never leave a campfire unattended. • Watch the wind. • Don't keep flammable objects close to a campfire. • Make sure your fire is completely extinguished. Remember you are responsible for every fire you start and can be held accountable if that fire ignites 69700001 a wildfire. If you follow these simple guidelines, you can help keep Alaska green by preventing wildfires.
As of April 1, 2021
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) 8.09 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 Dan Chay, President (907) 283-9227 David B. Thomas, Vice President (907) 252-2954 Erin McKittrick, Sec./Treasurer (907) 290-6994 Ed Oberts, Deputy Secretary (907) 398-8039 Dave Carey, Director (907) 260-6413 Roy Champagne, Director (907) 299-8499 Jim Duffield, Director (907) 283-2203 Jim Levine, Director (907) 299-0323 Charles "C.O." Rudstrom, Director (907 ) 420-7124 Brad Janorschke, General Manager (907) 283-2312
MONTHLY FINANCIAL UPDATE
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omer Electric finished the month of March 2021 with a total asset base of $267.2 million. Operating revenue to date was $27.6 million and total costs were $24.3 million, bringing net operating margins to $3.3 million through March 31, 2021. This chart is a breakdown of key financial indicators comparing March 2020 to March 2021. Year to Date Operating Revenue Cost of Purchased Power
March 31, 2021 $27.6 million $16.3 million
March 31, 2020 $27.9 million $16.5 million
Cost of Electric Service Operating Margins
$8.0 million
$8.8 million
$3.3 million
$2.6 million
Total Kilowatt Hours Sold Total Number of Meters
124.0 million
122.9 million
35,708
35,442
MAY 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.