Something for HEA board to study

In an earlier commentary I mentioned having studied and analyzed HEA rate structures. (RE: Homer News, March 9, 2017 – Point of View.) However, despite my expressed wishes and firm intent to put it to rest, the analysis churned on to its own logical end, whereupon it spit out a new conclusion/solution.

All Residential Customers Energy charge = 25.875 cents per kilowatt hour. This is what is called a blended rate, in this case a three-way blend.

Energy charge = 14.866 cents per kilowatt hour

COPA = 7.373 cents per kilowatt hour

Average system delivery charge = 3.636 cents per kilowatt hour

Total: 25.875 cents per kilowatt hour

The first two entries come from the Kilowatt Courier. The average system delivery charge is determined by dividing the membership fee/customer charge by the average consumption. i.e. $20.00 550 kilowatt hours = 3.636 cents per kilowatt hour.

I would like to offer this to the newly elected HEA directors as something to contemplate before their first meeting. Consider how this new suggestion would affect all of us owners/consumers/members of this electrical cooperative.

Respectfully yours,

Tom Maloney

“the third complainant”