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The Homer Electric Association has taken another step toward getting state approval for a program encouraging customers to install renewable energy projects.

HEA has filed a tariff with the Regulatory Commission of Alaska seeking approval of the Sustainable Natural Alternative Power program, which encourages members to produce alternative power or financially assist others to do so.

The SNAP program asks HEA members and non-members to contribute money toward alternative, renewable energy, and pays power generators for putting the power on HEA's grid.

SNAP producers would be limited to small solar, wind, geothermal, biomass or small hydro installations producing 25 kilowatts or less, according to HEA spokesman Joe Gallagher.

The producer has the option of either connecting the generation system directly to the HEA grid or connecting it to their home and putting any excess energy not used in their home or business back on the grid.

"That's the major change in the proposal," said Gallagher, commenting on differences in the program as introduced in March and as submitted to the RCA last week.

"From the responses we received from people who might be interested in the SNAP program, that seemed to cool them to the idea ... not being able to use the power in their own homes," he said.

If the producer puts the power directly onto the grid, HEA purchases power back at 5 cents per kilowatt. SNAP producers would receive an additional payment based on how much money is in the SNAP fund and the number of kilowatt hours generated by SNAP producers. The payment would be capped at $1.50 per kilowatt hour.

Any funds remaining in the SNAP fund at the end of the year would be rolled over into the following year's contributions, Gallagher said.

HEA members also may voluntarily agree to pay a little more each month on their utility bill, according to Gallagher. The minimum contribution would be $2 per month. The donation would go back into a SNAP fund and at the end of the year, the funds are distributed back to the SNAP producers.

SNAP is an award winning renewable energy program created by Chelan County Public Utility District in Washington. Currently the SNAP program there has 45 producers who generated 136,065 kilowatts in 2006-2007. Gallagher said that is enough power to sustain approximately 20 homes for one year.

In Fairbanks, more than 500 Golden Valley Electric Association members have signed up as contributors to the recently adopted SNAP program.

An intangible benefit received by members who contribute money to the SNAP program, according to Gallagher, is the satisfaction of supporting renewable energy.

Since first advertising the possible program, HEA has heard from "a couple hundred" members, Gallagher said. "Easily 90 percent are in favor (of the program)."

He said members are encouraged to submit comments to the RCA regarding the SNAP program being considered. Comments on the filing should be received by July 30 at the Regulatory Commission of Alaska, 701 West Eighth Ave., Suite 300, Anchorage, AK 99501, or online at rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx.

A brief, one-page description of HEA's SNAP program and the actual RCA tariff filing can be found on HEA's Web site: www.homerelectric.com.

Phil Hermanek can be reached at phillip.hermanek@peninsulaclarion.com.