Friday, December 04, 2009

Coal or Wind?

I read with interest Brian Newton's letter advocating support for a $95 million, 30 year investment in buying and re-starting the experimental coal fired power plant in Healy at the same time suggesting it will keep your electric rates low and look toward the future.

Brian failed to mention this large investment which, if instead was invested in the proven wind resource at Eva Creek near Healy, could provide half as much electricity with NO fuel cost and NO carbon output. Thinking long term, it seems like a 0 fuel charge vs. a fuel charge likely to have substantive regulation and carbon based taxes is a better deal, but not to most of the GVEA board and management. The only way GVEA said they’d do Eva Creek is if they get a full grant. Should we wonder why they don't find a grant for the coal plant. Oh, darn, I forgot, both the state and feds already granted $300 million for it and still GVEA needs more.

GVEA has continued to raise rates to pay for loans for numerous capital projects in recent years' past, not just the fuel cost. Don't expect your rates to go down with another coal plant. We still have to pay off loans, including a new one for over $65 million for regular annual construction.

What about an energy efficient appliance replacement program? GVEA could provide a subsidy to ratepayers equal to the reduced consumption over a period of time. But WAIT, they don't WANT electricity usage to go down because they'll need to raise the service charge again instead of making oil the boogyman. Is there something wrong with this picture?

It seems hard for the entrenched to visualize a sustainable future. If GVEA can lobby so hard to get the membership to give up ownership of 3/4 of the utility's assets as they tried and failed a few years ago, I bet they could sell us on a 25 mw wind farm. Or give you a new refrigerator.

Wednesday, August 05, 2009

Healy Clean Coal Plant fracas developing

Well, it looks like a fracas is developing around the Healy Clean Coal Plant. Here's a few links illustrating the issue:
• GVEA's official page on the HCCP
AIDEA's page on the project
SourceWatch page on HCCP (contains several newslinks and material on related coal-power projects)
• Brian Newton's Community Perspective piece in the Fairbanks Daily News-Miner, July 19, 2009
• Andrew Halcro posts on the deal
• Larry Mayo's Community Perspective piece in the News-Miner, Feb. 21, 2009
"Alaska lawmakers get the lowdown on the future of the Healy Clean Coal Plant," Fairbanks Daily News-Miner, June 19, 2009
miscellaneous stories and articles in the News-Miner, sorted by date
"HEA, coal part ways," Peninsula Clarion, July 23, 2009
Coal-is-dirty.com
Solstice Light on clean coal
• Rep. Mike Kelly's history of the HCCP
• "Exploring Clean Coal Technology", Valve Magazine, part one and part two.
• "Coal: Alaska's Other Black Gold," by Brian Yanity, Insurgent49, part one and part two.
A search on the web will bring up more, of course.

Monday, April 27, 2009

Member comments at GVEA Annual meeting

There were 17 people who spoke during member comments at the 2008 annual meeting of GVEA, some chafing under the newly imposed 2 minute limit. The draft minutes will be up for approval by the membership at the April 28, 2009 annual meeting with only a general summary of who spoke and that "the topics ranged from the status of HCCP to affordable and renewable energy and made requests for a better dialogue with the Board."

I find this to be a less than complete record of member comments. Those that spoke deserve the recognition of attribution for what they said and GVEA needs to be able to keep a functional record of this for reference and action. It is true that one can watch the member comments on a streaming video, but that's not exactly easily browsed or is searchable. In fact, when I went to watch them, there were several glitches including a missing section that I only was able to detect because I was at the meeting.

I informed GVEA Board Chairman Bill Nordmark, who in turn informed GVEA CEO/President Brian Newton that I had listened to the video recording and prepared a more complete written record of member comments from the 2008 Annual Meeting and that I was prepared to move to amend the draft minutes to include those. They can be found here.

Brian called me today to ask me not to introduce this amendment as he was concerned about the cost of reproducing this on glossy paper ($10,000) and because members wouldn't be able to view it. I had provided it to GVEA electronically so it could be displayed on the overhead along with all their other presentations. He indicated he would not do so.

I reiterated my desire to have GVEA be more transparent and also respectful of those who put themselves forth to speak. I indicated that, despite a suggestion that the board might be more complete in the minutes in future years, this proposed amendment was in order (in a parliamentary sense) and he agreed.

I have to say that, while I sympathize with the challenges of conducting a large meeting, I felt a bit affronted to be asked NOT to exercise one of the few rights that members have to make at an annual meeting or otherwise, besides voting for a board member or a bylaw change.

I will be making at least 500 copies for distribution at the meeting at my own cost. This will remain an issue in future years as long as any future minutes don't fully reflect what members had to say. Board minutes have also been deficient. Mr. Newton seemed to feel that minutes were the same thing as action memos. I referred him to the Fairbanks North Star Borough Assembly minutes/action memos for a model of both, are professionally done and delineate the difference.

Thursday, March 19, 2009

Feed in tariff article

GVEA Board member Tom DeLong wrote a Community Perspective article on a form of renewable energy incentives at newsminer.com/news/2009/mar/19/state-should-buy-renewable-power/?opinion. Careful to note that this is his article not representing the GVEA board.

Tuesday, March 17, 2009

GVEA and Tri-Valley

GVEA formed a wholy owned subsidiary of GVEA called the Tri Valley Electric. This is to be the owner of the 50 mw experimental coal power plant in Healy that has sucked up nearly $400 million of state federal and even a little utility money.

GVEA, for the sum of $90 million in the form of loans from plant owner AIDEA and 5-6.5% interest over perhaps 2-3 decades. Homer Electric had stepped in as GVEA had been most recalcitrant at taking over the plant, so now Homer Electric is guaranteed to get power from it and is able to look over GVEA's shoulder in operating it, likely one reason GVEA created the subsidiary.

Of course, besides committing GVEA member-owners to a dirty fuel (aka clean coal) plant at a time when forward looking suggests a penalty for carbon emissions (Kyoto Protocol II), I'm also working to insure that we member-owners have the same rights as we do now with our property. Previous subsidiaries have come into being in such ways as to exclude the member-owners from meaningful participation. Alasconnect was the first, the G&T was the second. The former is in operation, the second GVEA was told 'no' by the members, a rare time when they overruled the management-board.

I've asked for the bylaws, but was told the lawyers are still working on them. The Articles of Incorporation can be found on the State Dept. of Commerce website.

  • GVEA Sale Press Release

  • What the Fairbanks Daily News Miner did with the press release.

    If you want to look at more of what GVEA has before tjavascript:void(0)he Regulatory Commission of Alaska, all kinds of fascinating documents await your downloading pleasure HERE.