Homer Electric Association members have spoken and the board of directors has listened.

After overwhelmingly negative feedback since HEA announced its plan to purchase half of the power from Healy Clean Coal Plant five months ago, the board, meeting in Homer last week, decided to shift its focus away from Healy and search for future power sources elsewhere.

Newly elected vice president Tim Evans made the motion to direct General Manager Brad Janorschke to cancel the power supply study and transition the cooperative away from its involvement with HCCP. The board passed the motion on an 8-1 vote.

Voting yes were board members Evans, Alan Bute, Brian Hirsch, Ed Oberts, Debbie Debnam, Tony Garcia, Jim Levine and Mike Pate. Voting no was David Thomas.

"We overwhelmingly support the decision," said Mike O'Meara, spokesperson for the HEA Members Forum, a group devoted to moving the co-op toward a renewable energy base. "We really want to commend the board for taking the action."

In an interview last Thursday, Evans said there were two primary issues that led to the decision about Healy: economics and membership input.

On the economic side, "It just didn't pencil out for me," Evans said.

He said the utility was being asked to participate in a project, assume a large financial risk but have no ownership in it.

Evans said he didn't want the co-op to commit to another long-term deal, like the one HEA currently has with Chugach Electric Association. Evans also was cautious about the uncertainty surrounding the cost of carbon and mercury taxes commonly associated with coal plants.

"No matter how many power supply studies we commission, it still boils down to an educated guess," he said. "We just don't have the information we need."

HEA entered into a three-way deal with Golden Valley Electric Association and the Alaska Industrial Development and Export Authority, which owns the plant, on Jan. 14, agreeing to purchase half of the power produced by Healy. The terms sheet also stated that the three parties involved must come to an agreement by Aug. 1. If not, the terms expire.

In February, the board voted to hire an independent third party to conduct a power supply study, exploring coal, natural gas and renewable energy options for the co-op.

Evans said the company HEA most likely would have chosen would have charged $250,000 for the study. With less than three months before the Aug. 1 expiration date, there would not have been enough time to properly conduct the study.

"Anytime you really push for something to get done fast, you're going to multiply the possibilities of errors," Evans said.

Even if Healy does start production, in all likelihood it wouldn't be soon enough to help HEA. With its contract with Chugach Electric expiring at the end of 2013, the utility is seeking independence and needs to find a power source soon.

"I just don't see Healy coming online to help us by then," Evans said. "It's just best for us to sit back. Now is not the time. There are other (forms of generation) we can concentrate on."

Evans cited natural gas, which accounts for 90 percent of HEA's power, wind energy and small hydroelectric projects as other means of generation.

Janorschke will discuss HEA's new plan with AIDEA and GVEA in the near future, according to a written statement released by HEA last Thursday.

The co-op also will be involved in the state's integrated resource plan, which will examine energy options for the Railbelt area -- Fairbanks to the Kenai Peninsula.

"(The study will focus) on what the needs are and what the options might be to meet those needs," said Joe Gallagher, HEA spokesperson.

"The results of the state study should provide Homer Electric and other Railbelt utilities with a good overview of long term options for future power supply generation," Janorschke said in a written statement. "At this time it makes sense to participate with the state in the study and hold off on proceeding with an independent study."

The membership, too, played a role in Evans' decision to make the motion to drop out of the HCCP deal.

Evans said he's received hundreds of e-mails and phone calls regarding coal. "Ninety-nine percent of them say 'no' to Healy," he said. Evans estimated fewer than 10 members expressed a positive attitude toward HCCP.

Every board director should listen to all members, Evans said. "No matter what district (you represent), you've got to listen to everybody."

O'Meara said he expects AIDEA and GVEA to pressure HEA to reconsider its involvement with Healy. "HEA members need to stand behind our board," O'Meara said. "That took a lot of courage."

O'Meara, who attended last week's meeting, said it was clear the board exercised due diligence and fulfilled its role to manage the utility in a fiscally responsible way.

"It made me really feel good about all these new board members that have come on," he said. "They deserve a lot of credit."

Mike Nesper is a reporter for the Peninsula Clarion.