HEA briefs membership on coming changes

In its last of several membership meetings around the Kenai Peninsula on Thursday, representatives from Homer Electric Association went over the current state of its rates and policies as well as upcoming developments.

HEA has conducted area meetings for nine years, and now visits seven locations across the peninsula, including last Thursday’s final stop in Funny River. HEA General Manager Brad Janorschke took about 40 residents through a presentation outlining HEA’s customer rates, future business plans, ongoing projects and changes to the way customers pay for service.

Effective Jan. 1, the company will stop accepting MasterCard as a method of payment. Janorschke said HEA is always looking for ways to cut costs, and it is too expensive to process payments from MasterCard users. HEA spends more than $400,000 per year to process all credit card payments, according to a press release from the organization. The change will impact the approximately 17 percent of members who use MasterCard to make payments, Janorschke said.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

“Seventeen percent of the folks who use credit cards use a MasterCard … but our cost related to MasterCard is 58 percent (of the total cost),” said Joe Gallagher, director of member relations. “It’s hard to predict … but we’re definitely going to save money by not accepting MasterCard.”

Other options for MasterCard users will be to switch to Visa, or to pay via mailed check, over the phone, in person or by one of several other options.

Additionally, in 2016 HEA will start a contract with Furie Operating Alaska, a company currently drilling exploration and development wells in Cook Inlet. Janorschke said this contract will drop HEA’s cost of fuel per 1,000 cubic feet of natural gas, or mcf, down to about $6.50 in 2016. HEA currently pays between $6.50 and $7.50 for its fuel from Hilcorp, Janorschke said.

The average monthly bill for members is projected to rise from $133 in 2015 to $137 in 2016. However, Janorschke said the contract with Furie could potentially offset that increase, and hopes the rate increase won’t end up being felt by members.

“(Members) are going to see a little increase the first of the year on the base rates, and then possibly another small increase at the beginning of 2017,” Janorschke said. “(They) may see a bump at the beginning of the year, and if we get normal sales next year coupled with these (reduced) prices, (members) may see (their) bill go back down to what it was at the end of this year.”

In general, HEA energy sales have been decreasing since 2013, in part because of the mild winters the peninsula has been experiencing, Janorschke said.

Janorschke said energy rates are always something members express concern about, though whether people view them as high or low depends on where they lived before Alaska.

“It just depends on where the member’s from,” he said. “If they’ve done their own diesel generation in the past, they go ‘Wow, it doesn’t matter what rates are, it’s way better than what I had.’ If they’re from the Northwest they go ‘Wow, it’s a lot cheaper down there, why is it so expensive?’”

Gallagher said the meetings are a way to let members know what’s going on with the company on a more intimate level that what can be reached at larger, annual meetings.

HEA is also in the process of getting a reimbursement of about $425,000 for the damage it incurred during the Card Street fire this summer. Gallagher said HEA will file for this reimbursement separately from the Kenai Peninsula Borough, but will follow the same process. There is no timeline on when those funds will be reimbursed, Gallagher said.

Replacing the facilities damaged in the fire will continue through 2016, Janorschke said.

Reach Megan Pacer at megan.pacer@peninsulaclarion.com.

More in News

Vice President Kelly Cooper speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, July 8, 2025. (Jake Dye/Peninsula Clarion)
Borough considers seasonal sales tax rate

Borough sales tax would be modified from a flat 3% to a seasonal model of 4% in summer months and 2% in winter months.

The Kasilof River is seen from the Kasilof River Recreation Area, July 30, 2019, in Kasilof, Alaska. (Photo by Erin Thompson/Peninsula Clarion)
King salmon fishing on Kasilof to close Thursday

If any king salmon is caught while fishing for other species, they may not be removed from the water and must be released immediately.

Un’a, a female sea otter pup who was admitted to the Alaska SeaLife Center in June 2025, plays with an enrichment toy at the center in Seward, Alaska. Photo courtesy of the Alaska SeaLife Center
SeaLife Center admits 2 seal pups, 1 orphaned otter

The three pups join the Alaska SeaLife Center’s ‘growing’ patient list.

James Wardlow demonstrates flilleting a salmon with an ulu during a smoked salmon demonstration, part of Fish Week 2023, on Wednesday, July 19, 2023, at the Kenai National Wildlife Refuge Visitor Center in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Refuge to celebrate all things fish during weeklong event

Fish Week will take place July 16-19.

President Zen Kelly speaks during a meeting of the Kenai Peninsula Borough School District Board of Education in Soldotna, Alaska, on Monday, July 7, 2025. (Jake Dye/Peninsula Clarion)
School board finalizes budget with deep cuts to programming, classrooms

Multiple members of the board said they were frustrated by the state’s failure to fund education.

Former KPBSD Finance Director Liz Hayes speaks during a Kenai Peninsula Borough School District budget development meeting at Kenai Central High School in Kenai, Alaska, on Wednesday, Feb. 19, 2025. (Jake Dye/Peninsula Clarion)
School district finance department earns national awards

The two awards are based on comprehensive reviews of the district’s budget and financial reporting.

Children leap forward to grab candy during a Fourth of July parade on South Willow Street in Kenai, Alaska, on July 4, 2025. (Photo courtesy Sarah Every)
Celebrating the 4th in the streets

Kenai comes out for annual Independence Day parade.

Fire crews respond to the Bruce Fire, July 4, 2025, in Soldotna, Alaska. (Alaska Division of Forestry)
Firefighting crews respond to wildfire outside Soldotna

The 8-acre fire and two “spot fires” of less than one acre each are located near Mile 102 and 103 of the Sterling Highway.

Most Read

You're browsing in private mode.
Please sign in or subscribe to continue reading articles in this mode.

Peninsula Clarion relies on subscription revenue to provide local content for our readers.

Subscribe

Already a subscriber? Please sign in