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COURIERThe Kilowatt

Kilowatt Courier is published monthly by Homer Electric Association, Inc.

DON'T TAKE THE MERRY OUT OF CHRISTMAS

Before your family puts up a tree or hangs the stockings this holiday season, start a new tradition. Put safety at the top of your list. Too often the twinkling

lights people see are on top of a fire truck or ambulance—the result of holiday accidents that could have been prevented.

Trees and lights are danger-prone holiday 63999001 decorations. According to the United States Fire Administration, Christmas trees start an average of 260 house fires

each season, resulting in more than $16 million in property damage. Another 150 house fires are sparked by holiday lights and decorative lighting, costing $8.9 million in damage.

Typically, all of these fires are more severe and damaging, resulting in twice the injuries and five times the fatalities per blaze compared to average winter home fires.

Unsafe practices while putting up decorations are to blame for even more injuries. Nearly 6,000 individuals visit emergency rooms each year for falls that occur. Four thousand more are

treated for injuries associated with extension cords.

"Christmas" continued on back page....

The Musgrave kids with the Energy Hog

5th ANNUAL ENERGY FAIR A SUCCESS

Homer Electric hosted its 5th annual Energy & Conservation Fairs last month and featured more than 30 vendors displaying a variety of energy conservation related information, products, and services.

About 1,000 Kenai Peninsula residents attended the Kenai and Homer fairs where they learned about various topics and received information on LED lights, infrared technology, energy assistance programs, and other energy efficiency strategies and products. In addition, an update on the Cook Inlet tidal energy project was presented by Ocean Renewable Power Company and an update on the Homer Tidal Energy Incubator Project was presented.

A new edition to the Fairs this year was Alaska Energy Authority's Energy Hog interactive skit which entertained and educated kids about energy conservation. In conjunction with the HEA Energy Fairs, the Energy Hog made several presentations to local elementary schools to promote the importance of energy efficiency.

Special thanks to our Platinum Sponsors Ohlson Mountain Mineral Springs H2O and Kachemak Electric. Thank you to our Gold Sponsors Hilcorp Alaska, LLC, Tesoro, ConocoPhillips Alaska, BP, Stanley Ford, Urban Green Technology, and Touchstone Energy. Silver sponsors include Home Depot, Kenai Peninsula Builders Association, Ferguson Heating & Cooling, Alaska Housing Finance Corporation, Representative Paul Seaton, Spenard Builders Supply, Brown's Electric Supply, and Alaska Community Development Corporation.

Thank you to Grant Aviation, Embassy Suites, Best Western Bidarka, Aspen Extended Stay Suites, Two Sisters Bakery, Playa Azul 88406001 Restaurant, and Mark Glassmaker Fishing for their generous donations! Additional thanks to Re-Group for the use of their recycle bins for collecting plastic water bottles, HEA Youth Rally participant Makayla Wong for her help in the Kid Zone, Skyview High School girls' basketball team, and Homer High School boys'

basketball team for their participation in the success of the event.

Printed on recycled paper

DECEMBER 2013KILOWATT COURIERHomer Electric Association, Inc.3977 Lake StreetHomer, AK 99603(907) 235-8551(800) 478-8551

280 Airport WayKenai, AK 99611(907) 283-5831www.homerelectric.com

BOARD of DIRECTORS & MANAGERDick Waisanen, President(907) 262-6298

Bill Fry, Vice President(907) 235-8484

David B. Thomas, Sec/Treasurer(907) 252-2954

Jim Levine, Deputy Secretary(907) 299-0323

Kelly Bookey, Director(907) 398-7283

Dave Carey, Director(907) 260-6413

Dan Chay, Director(907) 283-9227

Ed Oberts, Director(907) 398-8039

Don Seelinger, Director(907) 399-7573

Brad Janorschke, General Manager(907) 283-5831

Year-to-Date September 30, 2013 September 30, 2012

Operating Revenue $59.1 million $58.9 millionCost of Purchased

Power$33.2 million $34.6 million

Total Cost of Electric Service

$55.9 million $56.9 million

Operating Margins $3.2 million $2.0 millionTotal Kilowatt

Hours Sold362.0 million kWh 358.0 million kWh

Total Numberof Meters

32,893 32,456

Total Miles of Energized Line

2,396 2,378

MONTHLY FINANCIAL UPDATE

Homer Electric likes to keep its members informed about the financial status of their electric cooperative. Each month in the newsletter there is a brief overview of important

financial statistics. Homer Electric finished the month of September 2013 with a total asset base of $227.8

million. Year-to-date operating revenue was $59.1 million and total cost of electric service was $55.9 million bringing net operating margins to $3.2 million through September 30, 2013. This chart is a breakdown of key financial indicators for 2013 as compared to 2012.

CURRENT RESIDENTIAL RATESAs of January 1, 2014

All Residential CustomersEnergy charge = 13.780 cents/kWhCustomer charge = $15.00System delivery charge = $20.67*(*If usage is less than 150 kWh)

Cost of Power Adjustment (COPA)6.79 cents per kWh*(*Pending approval from the RCA. Subject to change on a quarterly basis.)

See www.homerelectric.com for commercial rates.

DON'T TAKE THE MERRY OUT OF CHRISTMAS continued....When it is time to deck your halls, take these precautions to ensure the safety of

you, your family, and holiday guests:• Make sure an artificial tree is labeled “fire resistant.” Be aware that “fire

resistant” does not mean “fire proof.” Exercise caution when it comes to your tree.• Make sure a live tree is fresh and green. Dry, brittle limbs and shedding

needles are a breeding ground for sparks. Water a live tree regularly to prevent it from drying out.

• Place any type of tree away from heat sources such as fireplaces, vents, and radiators.

• Do not overload electrical outlets. Most lights are designed to connect no more than three strands. Inspect the wires periodically to make sure they are intact and not warm to the touch.

• Never leave lights on overnight or when no one is home.• Only use lights that have been approved by an independent testing laboratory. • Replace any strands that show signs of damage, such as bare or frayed wires, broken bulbs,

or loose connections. Faulty lights can send an electrical charge through a tree and electrocute anyone who comes in contact with a branch.

Make sure safety ranks at the top of your “to do” list this holiday season. Like the old Christmas song says, there is no place like home for the holidays—especially when your family is safe and 43979001 your home is filled with good cheer.

HIDDEN ACCOUNT NUMBERS

Every month three randomly chosen account numbers are hidden

in the Kilowatt Courier. If you find yours, call 235-3338 and you'll receive a $50 credit which will be reflected in your

next bill.

FUEL PRICES LIKELY TO RESULT IN RATE INCREASE FOR 1ST QUARTER 2014

Homer Electric Association expects to implement a rate increase beginning January 1st. HEA will submit a filing with the Regulatory Commission of Alaska (RCA) that increases

the Cost of Power Adjustment (COPA) from 5.07 cents per kilowatt hour to an estimated 6.79 cents per kilowatt hour.

The COPA reflects the cost of the fuel used to generate electricity for HEA members and is adjusted on a quarterly basis. The COPA revision will increase the blended rate (COPA plus energy rate) for HEA members from 18.85 cents to an estimated 20.6 cents per kilowatt hour. The new rate represents an additional $10.84 per month for the average HEA member using 630 kilowatt hours a month. Pending approval from the RCA, the new rate will be effective for all billings as of January 1, 2014.

The upswing in the price of natural gas is being seen across the Railbelt with increases in rates taking place at other south central utilities. Homer Electric General Manager Brad Janorschke said HEA will make every effort to minimize any future increases. “As anticipated, the rising price of natural gas has been and remains a major concern. We recognize the impact on our members will be significant. In addition, we continue to work hard developing more efficient generation facilities including identifying alternative fuel sources that can lessen our dependence on natural gas,” said Janorschke.

HEA members who need help with their energy bill can apply for assistance from the State of Alaska’s Heating Assistance Program. The applications are available online at http://dhss.alaska.gov/dpa/Pages/hap/default.aspx or you can call 1-800-470-3058 for additional information.