An agreement for non-interruptible natural gas from Enstar will ensure Homer Electric Association a reliable supply of gas and the ability to provide power at the lowest cost to its members.
The Alaska Electric and Energy Cooperative, Inc. (AEEC), a subsidiary of Homer Electric Association, Inc. (HEA), signed a Gas Supply Procurement Agreement with ENSTAR Natural Gas Company, LLC (ENSTAR) on Thursday, April 6th supporting HEA with access to additional gas supplies.
HEA will begin receiving a firm supply of non-interruptible natural gas from ENSTAR as early as April 2024, barring any unforeseen circumstances and upon RCA approval of the necessary Gas Sales Service Agreement. This initial contract between HEA and Enstar provides HEA with opportunities to secure Cook Inlet gas for the foreseeable future. ENSTAR also has a gas contract with Hilcorp through March 2033.
“This is an exciting time for HEA and its members on the Kenai Peninsula,” stated Brad Janorschke, General Manager for HEA. “HEA’s mission is to safely provide reliable electricity to our members and our community through superior customer service and innovative energy solutions at fair and reasonable prices.” Janorschke said, adding that he is optimistic for the future of the utility.
ENSTAR President, John Sims, said of the Agreement, “The Gas Supply Procurement Agreement between ENSTAR and HEA is proof of the collaborative, innovative work being done in the Cook Inlet to address customer needs for natural gas. I’m proud of this work and our ability to partner with HEA on this agreement.”
The Gas Supply Procurement Agreement is currently in effect and does not require approval from the Regulatory Commission of Alaska (RCA). Barring unforeseen circumstances, once ENSTAR secures additional gas volumes for HEA, the utilities will enter into a Gas Sales and Service Agreement which will be subject to RCA approval.
HEA General Manager Brad Janorschke said that the terms of the ENSTAR agreement were negotiated over the past 8-month time frame and that he looks forward to a good working relationship with ENSTAR.
Over the past decade, HEA’s Board has ensured that HEA had the ability to generate power independently but also took prudent steps to diversify HEA’s generation mix. HEA leadership set alternative energy benchmarks to ensure that HEA made meaningful progress diversifying its energy mix by pursuing a mix of natural gas, clean, and renewable energy sources. One of these decisions includes installing HEA’s Battery Energy Storage System (BESS) allowing the incorporation of renewable energy into the grid. Access to diverse energy sources from multiple suppliers creates energy security for the peninsula by reducing reliance on a single fuel source or supplier.
HEA will continue to pursue opportunities to produce power at the lowest cost to its members and the Gas Supply Procurement Agreement with ENSTAR is a step in the right direction.
