HEA considers opting out of Regulatory Commission oversight

by Mike O’Meara
Homer Electric Association is moving toward “self regulation.”
What does that mean?
Like most larger Alaska electric utilities, HEA is accountable to the Regulatory Commission of Alaska. The RCA was established to see that utilities adhere to state laws and regulations and operate in a fair and fiscally responsible manner. Part of its mission is to help protect consumers. However, Alaska law allows utilities to opt out of RCA oversight by a vote of the member/ratepayers. Under “self-regulation,” HEA would operate absent any oversight except that of the membership.
Participants at October’s HEA community meetings are being given a short opinion survey asking if we should have a vote to opt out of RCA oversight. This seems premature – few members likely know much about the RCA or what “self-regulation” might mean. And why not poll a wider segment of the membership?
Is “self-regulation” good or bad for us? That probably depends on how much confidence and trust you have in our HEA Board and management.
Either way, going to “self-regulation” would be a huge change in how HEA works. It would significantly affect all HEA members and all should have an opportunity be fully informed before supporting or rejecting such a vote.
HEA General Manager Brad Janorschke and some Board members feel that our co-op could operate more efficiently and cost effectively without RCA oversight. Maybe so. But it’s unclear how the protections of an external regulator and consumer advocate could be maintained.
At the Oct. 13 HEA Board meeting, Janorschke and the Board acknowledged the importance of providing HEA members with good information about possible “self-regulation.” It’s too bad this wasn’t done prior to polling community meeting attendees.
Now it’s up to all HEA members to require frank and open examination of the potential risks and benefits of such an enormous change, well before we are asked to vote.

Mike O’Meara is the HEA Member’s Forum spokesman.