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HEA leadership fails to answer questions about spending

Posted: Wednesday, April 02, 2003

Is Homer Electric Association the next Enron?

In December 2002, I wrote a letter to Homer Electric board president Ron Rainey asking questions concerning Homer Electric Line Services LLC (HELS). HELS is a for-profit contracting company run by Homer Electric. The information requested had to do with how much the Co-op was charging HELS for property rental, vehicle leases and office support/supervisory expenses. I want to know if these expenses were being charged to the LLC or if we the owners of the co-op are paying for this through our electric meter.

Mr. Rainey replied that, "because some questions are confidential, must be answered in a very general way."

The answers were so "general" that he really did not answer anything. Mr. Rainey also stated that the proper way to obtain information is to request it in writing and pay $20 per hour for research if the manager and attorney consider this information is to be used in a "proper" way.

As a member/owner of the co-op, I believe it is proper for all member/owners to know exactly how much is being gained or lost by this LLC. April will bring ballots to our mailboxes for the HEA board of directors elections. I believe that Mr. Rainey does not want facts of the profitability of the HELS or the erroneous reporting of cost overruns of the Nikiski cogeneration project to be known by the general membership.

Please attend the next Board meeting and demand this information.

It is interesting that Mr. Rainey has made it clear that he is the only board member that can answer questions asked by co-op members. Mr. Rainey, several other members of the board of directors and the co-op manager are currently out of state. Who is running the place while upper management is gone?

Ballots for the HEA board elections will be mailed around April 4. It is time for a change to the board of directors. When you receive your ballots, please vote for David Carey, Bruce Passe and John Michael Standefer.

Please feel free to call me if you have questions.

Jim Fassler

Soldotna



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