Homer Electric proposes new depreciation rates; comments due May 28

Homer Electric Association and its subsidiary Alaska Electric and Energy Cooperative filed a depreciation study with state regulators on April 21 that proposes revised rates for how the utilities account for aging equipment and infrastructure.

The Regulatory Commission of Alaska opened a docket to review the proposal, which would decrease Homer Electric's annual depreciation expense by $188,220 while increasing the cooperative's expense by $1.1 million. The utilities say no immediate rate change is proposed, but Homer Electric plans to incorporate the new depreciation rates in its next quarterly rate filing. Public comments are due by 5:00 p.m. on May 28, 2026.

Depreciation expense represents the cost of equipment wearing out over time and can be recovered through customer rates. The study is based on plant balances as of December 31, 2024. Homer Electric's assets consist mainly of distribution lines and general equipment, while the cooperative operates generation and transmission facilities.

The commission may approve, deny or modify the proposed rates. The complete filing is available at the commission's office at 701 West 8th Avenue, Suite 300, Anchorage, or online at rca.alaska.gov by searching for docket U-26-012.

To comment, file written remarks by the May 28 deadline at the commission's Anchorage address or through the website at rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx. Reference docket U-26-012 and include a statement that you filed a copy with Homer Electric at 3977 Lake Street, Homer. Contact Jessica Spuhler at Homer Electric at 907-283-5831 for more information.