The sign in front of the Homer Electric Association building in Kenai, Alaska, as seen on April 1, 2020. (Peninsula Clarion file)

The sign in front of the Homer Electric Association building in Kenai, Alaska, as seen on April 1, 2020. (Peninsula Clarion file)

HEA rates to increase Jan. 1

The cooperative’s last rate increase took effect in April 2020

Homer Electric Association announced Friday evening that it will be raising its base rates by 3.5% starting next year, citing inflation and supply chain disruptions.

Starting Jan. 1, 2024, HEA’s base rate will increase for residential members, from $0.16077 per kWh to $0.16640 per kWh, or by about $0.00563 per kWh. That’s after the Regulatory Commission of Alaska on Friday approved HEA’s Simplified Rate Filing, in which HEA requested a 3.5% increase to the base rate.

HEA said in Friday’s press release that the cooperative’s last rate increase took effect in April 2020. In announcing the increase, HEA said significant inflation since the beginning of the COVID-19 pandemic and supply chain issues have driven their prices up by about 19%. The rate increase, HEA said, will help it keep pace with the rate of inflation.

HEA General Manager Brad Janorschke is quoted as saying in the release that “aggressive cost cutting and operational efficiencies” have allowed the cooperative to keep their base rate below the rate of inflation.

Friday’s announcement comes as HEA and other electric utilities along the Alaska Railbelt grapple with a looming shortage of natural gas in Cook Inlet, which they’ve warned could increase rates for ratepayers.

HEA Director of Member Relations Keriann Baker said Friday, though, that the cooperative’s base rate is unrelated to natural gas or fuel costs, but rather covers the cost of labor, materials and supplies.

More information about Homer Electric Association can be found at homerelectric.org.

Reach reporter Ashlyn O’Hara at ashlyn.ohara@peninsulaclarion.com.

More in News

Dr. Kim Thiele stands by a wall of newspaper clippings and images of family members and precursors in his office near Kenai on Monday. (Jake Dye/Peninsula Clarion)
‘A ministry for me’

Kalifornsky doctor wraps up career after 44 years

Sen. Jesse Bjorkman, R-Nikiski, listens to testimony during a Senate Community and Regional Affairs Committee hearing on Thursday in Juneau. (Ashlyn O’Hara/Peninsula Clarion)
Bjorkman game seizure bill received warmly in Senate committee

Of the roughly 150 animals the department takes each year, an average of between one and two are determined to be wrongfully seized

A collage of photos of Nikiski North Star Elementary students taking swimming lessons at the Nikiski Pool. (Photo collages provided by Nikiski North Star Elementary)
Community effort puts 200 Nikiski North Star students through swimming lessons

The lessons covered “everything,” from basic flotation to constructing rough-but-functional life jackets out of clothing

From left, Rep. Andi Story, D-Juneau, hugs Rep. Stanley Wright, R-Anchorage, after House passage of sweeping education legislation while Rep. Maxine Dibert, D-Fairbanks, watches on Thursday, Feb. 22, 2024, in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
House passes BSA increase, with other education provisions

The bill now goes back to the Senate, where lawmakers must approve the bill as-is before it can head to the governor’s desk

Rep. Justin Ruffridge speaks about
House considers, rejects multiple school funding amendments during Wednesday floor debate

Over several hours, lawmakers considered six different increases in the Base Student Allocation to public schools

U.S. Sen. Dan Sullivan addresses members of the Alaska Legislature in the House chambers on Wednesday, Feb. 21, 2024, in Juneau, Alaska. (Mark Sabbatini/Juneau Empire)
Dismissing critics, Sullivan touts LNG project

During his annual address to the Alaska Legislature on Wednesday, the U.S. senator said state leaders should be doing everything they can to make the project successful

From left, Sen. Jesse Bjorkman, R-Nikiski, east side setnetter Ken Coleman and Konrad Jackson present information about a bill establishing a voluntary buyback program for east side setnet fishery permits during a Senate Finance Committee meeting on Monday, Feb. 19, 2024, in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Senate committee hears setnet buyback bill

The East Side of Cook Inlet Set Net Fleet Reduction Act is sponsored by Nikiski Sen. Jesse Bjorkman

Rep. Justin Ruffridge, R-Soldotna, speaks in support of debating an omnibus education bill in the Alaska House Chambers on Monday, Feb. 19, 2024 in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Tie vote kills early House debate on education funding

Lawmakers went into an hourslong recess that ended with adjournment until Tuesday morning

Most Read