Business Brief

Posted: Thursday, February 27, 2003

HEA board approves rate decrease

The Homer Electric Association board of directors voted on Feb. 11, to reduce base rates by 1.45 percent. The decrease will amount to an annual savings of $8.64 for the average consumer using 600 kilowatt hours per month.

If approved by the Regulatory Commission of Alaska, the rate decrease will become effective at the beginning of April. The rate reduction will not affect wholesale power costs which reflect the price Homer Electric pays to purchase electricity from Chugach Electric.

The base reate reduction is possible due to a number of factors, including increased efficiencies in Homer Electric operating procedures and a commitment from the board to reduce rates paid by members of the cooperative.

"The board of dierectors is confident that this rate reduction will allow Homer Electric to achieve its financial goals for 2003 and at the same time save our members money," said board president Ron Ramey.

Since October 1995, the base rate paid by Homer Electric members has decreased by 8.49 percent.

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