Business/Economy

Homer Electric Association will ask members to vote on deregulation

Another Alaska utility will soon hold a vote on whether to become deregulated.

Homer Electric Association cooperative members in October will receive a ballot in the mail asking them if HEA should be exempt from oversight by the Regulatory Commission of Alaska.

The RCA approves utility rates, rules and conditions of service. HEA wants to be deregulated to cut operational costs, the association said on its website.

If enough members vote in favor of deregulation, the HEA Board of Directors would be able to approve rate changes without additional approval from the RCA. But HEA said rates are still subject to "a variety of factors."

"Under local control, HEA's Board would have increased freedom to make strategic and timely decisions that could have a positive impact on our members," the company said on its website.

Earlier this year, the Matanuska Telephone Association also held a vote to deregulate. Its members voted in favor by a 3-to-1 margin.

HEA has nearly 23,000 members on a 3,166-square-mile service area on the southern Kenai Peninsula.

Annie Zak

Annie Zak was a business reporter for the ADN between 2015 and 2019.

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