Will the RCA regulatory body ask utilities to implement conservation?

Will the Regulatory Commission of Alaska ask Alaska utilities to implement conservation measures?  Not if their staff report is implemented.   You can read more about this regulatory issue on R-09-005.

The sad part about the recommendations is that the federal government offered some guidance and then offered it to the states to look at or come up with their own ideas.   The Alaska Legislature, through an Energy Policy with SB 220 provided further incentive.   Yet the RCA's staff recommendation is just to get trained up more.   This docket has been out there for nearly 2 years, plenty of time for training.

I say it is time for the RCA to get off their duff and work for the long term benefit of the consumers they are charged to represent.  I urge anyone who has the stamina to read the documents to at least comment to the RCA.  Comments are due Dec. 9, 2010 by 4 pm.

Juneau electrical rate increase

Due to some substantive cost overruns and a non-functional project for the next few years at least, the Lake Dorothy Hydro Project in Juneau is costing all ratepayers at least a 20% increase.   You can read more of the submissions from the RCA website.   It's actually rather amazing.

http://rca.alaska.gov/RCAWeb/Dockets/DocketDetails.aspx?id=cbac123f-90b2-4ede-8234-4899e455f0fd

GVEA Bylaw changes - the analysis begins

Seventeen amendments to the bylaws of GVEA were passed by the membership after a count of over 5000 mail-in/drop-off ballots last night.

Two bylaw changes did show a marked difference with less support:

One change removed the bylaw section that limited the co-ops debt to $460 million. This now means that the policy the board developed and passed 3/29/10 that more than doubles this debt limit will be in effect and that the board can change at will. This policy (last page) and other policies modified with the bylaw changes can be found here.

The second bylaw change passed with less support was GVEA proposed Roundup Program, where your bill will be rounded up to the next even dollar amount and the funds collected (est. $15,000/mo.) to be given to charities of GVEA's choice.  The controversial aspect to this program was that it is Opt-Out, meaning you are included automatically and must call GVEA at 452-1151 or send an email to them (info@gvea.com) to opt out of the program.

With the many delayed and un-received ballots due to sending them via the Ruralite, I don't think that GVEA will be using that method of delivery again.   More likely is a push to develop an on-line voting method, now allowed by bylaw change.  

I would also hope that this many changes and some so poorly worded in one vote don't happen again.   It was generally poorly organized and not worthy of what we should expect from our co-op.

GVEA Ballot Count #8 - all bylaw amendments pass

Here's the final vote on the bylaws. Analysis and commentary to follow after a night's sleep. WAY TOO many ballot issues, all those present agreed.

Received 5114 valid ballots, but 14 were spoiled, total counted 5100

Approve all - 3201
Disapprove all - 536

Approved individually
1. 1022
2. 898
3. 1110
4. 1124
5. 1144
6. 1058
7. 1096
8. 1102
9. 1001
10. 925
11. 1039
12. 1101
13. 1080
14. 414 (remove debt limit)
15. 1034
16. 976
17. 449 (round-up bill)

GVEA Ballot Count #7

Election judges are done with their tally. Multiple spreadsheets for tallying those who voted for individual bylaw changes are being tallied by Cory and Corinne.

In the meantime, the drawing for the free electricity was pulled out of the hopper by Hollis, one of the election judges, with his eyes closed. It was a fully loaded hopper with over 5000 envelopes inside. Obert Friberg (sp) was the winner. GVEA wasn't thinking they would call him tonight. I thought if I won, I'd want them to call up to 11 pm and it's only 10:40 pm now.

A handful (10) of questioned ballots were discussed, some with duplicate ballots, strange signature locations, some that were picked up at GVEA when their mail ballots didn't arrive and then later, the mail ballot did arrive. The general rule followed was that the first valid ballot to be received was the one counted.

Most elections judges are sticking around, talking, waiting to sign off on the final tally, being done with the aid of a tape based adding machine. There is a place for this now ancient technology.

GVEA Ballot Count #6 - incumbent Bergh wins District 5

Preliminary count in District 5:

Ron Bergh - 606 (44%)
Hank Bartos - 441
Tim Beck - 331

200 ballots came in without signature on the outside envelope. They are opening those to see if any were signed inside, as the instructions allowed for. To date only one did, with a few more that had a check for payment of their bill (but no ballot).

Extra ballots checked - 5 had signatures inside.

Final count District 5

Ron Bergh - 608 - 44%
Hank Bartos - 441 - 32%
Tim Beck - 331 - 24%
Total ballots counted - 1380


Looks like some of the observer staff are leaving, though a recent lightning storm resulted in some spotty electrical outages in various areas of town.

GVEA ballot count #5

Final bit of counting of District 5. 213 ballots that were unsigned on the outside are being opened to see if signed on the inside. Of the 1365 pre-verified ballots, it looks like one person got about 500 votes. 40% is needed to avoid a runoff with 3 candidates on the ballot.

Candidates were:
Ron Bergh - incumbent
Tim Beck
Hank Bartos

Beck didn't get very many ballots, but he didn't campaign that anyone could tell.

On the bylaw ballot, 3 piles are being made - Yes on all, No on all, Yes only as approved on the other side.

From my perspective, it looks like the "Yes on all" have the majority, with 2-3 times the pile size compared to the others.

GVEA Ballot Count #4

The bylaws group in the new board room just completed opening the outside envelopes.

GVEA Ballot Count #3 - District 6 winner - Sloan re-elected

District 6 election has been certified by the election judges. Under 50 minutes

John Sloan - 322 votes
Tana Wood - 99 votes
Ballots with no signatures not counted - 32
Ballots with wrong signatures not counted - 8

On to District 5 with 3x as many ballots to count.

The main board room is still opening outside envelopes for the bylaws vote.

GVEA Ballot Count #2

The staff have slit the outside envelopes and are giving them to the election judges, who then verify the name and signature on the outside and take the ballots out. These then go into a hopper for the next staff slitting of the envelopes. The old Board Room is getting District 6 ballots while the new Board Room is getting the bylaws ballots to open the outside envelopes.


BTW, the last bylaw vote on the G&T in 2008 had a 21% return.

GVEA ballot count #1

Just for fun and for those who can't be here, I've decided to report on the GVEA ballot counting for the bylaw changes and Districts 5 and 6 election. Just getting started now at 6 pm.

About 13 people here as election people, staff includes CEO Brian Newton, Diane Porter (presenting) and Corinne Braddish (Communiucations), VP Member Services, Dave Gardner, Attorney Cory Borgeson, board chair Bill Nordmark, board member Ward Merdes, some MAC members.

May 4 - district ballots went out
May 7 - bylaw ballots went out

Appropriate sig, no signature, questioned ballots, wrong signature, multiple ballots in a single envelope They were secured and counted daily during collection. Outside envelopes are to be saved and put in the hopper for the drawing for "Free Electricity for a Year" (up to $1760).

10% required for district elections
650 votes or 3% (1,011) required for bylaws

District 5 - ballots mailed out 6,435, returned 1,365 - 21% return
District 6 - ballots mailed out 1,604, returned 487 - 30% return
Bylaws - ballots mailed out 33,726, returned 5,114 - 15% return

Cory charges the election judges with their rights and responsibility to make decisions on validity. Noted that some ballots are already questioned, but election judges will decide on each. Ballots will be double counted, staff will open envelopes by machine.

Eva Creek and interest rate subsidy

We've never been given much information about the purported subsidy of interest rates if GVEA funded the Eva Creek Wind Farm near Healy.

Here's some info about the federal funding source - the Clean Renewable Energy Bond Program


www.nreca.org/main/NRECA/PressRoom/Releases/20091030CREB.htm

www.nreca.coop/Documents/PublicPolicy/FFNewEnhcmntsCREBs.pdf

www.nreca.coop/PublicPolicy/ElectricIndustry/renewableenergy.htm

General Info on Eva Creek Wind Project
I don't know why GVEA doesn't post their Powerpoints on Eva Creek on their website, but some are available on UAF's Alaska Center for Energy and Power's informative website.


2008 presentation to the Rural Energy Conference
2010 presentation to the Rural Energy Conference

This link was supposedly a 2007 report on Eva Creek, but instead is a report on the GVEA's
Green Power Advisory Committee

Where are the ballots?

I've been getting calls from GVEA members looking for their ballots for the bylaws election. Whether they got trashed with the Ruralite or something deferred them, it is of concern when those who want to vote don't get it. We don't have a stated process for a failed vote. It could get interesting. A couple of the bylaws allow for voting by internet. THAT also could get interesting.

I've also gotten calls from members asking to have the bylaw change sections explained, as they trust me to give them the straight scoop (by implication, and not GVEA). While gratifying to have their trust, my (apparently) long term goal is to have GVEA exhibit a substance of transparency and good decision-making to increase the trust. People seem real suspicious.

I'd also like to see a non-partisan party be the ones to receive the ballot. That might help members' confidence in the ballot handling. Not that I think funny business is going on, but just the potential/appearance.

Members should come down to GVEA 5:30-6:00 pm on June 8 for the start of the ballot processing and count. Interesting to see how it's done and they supply refreshments.

Well, the power is flickering on and off. I'll close here before I lose my text.

GVEA proposed bylaws amendments

By now, GVEA members should have a ballot in hand to vote on 17 bylaw amendments. I urge everyone to read those amendments carefully before voting.

While some board and GVEA members asked to have for pro and con statements, GVEA only put forth the pro statements. The text text of the bylaw changes are located HERE in pdf< and a brief lead-up here.

One amendment changes meeting rules to Roberts Rules of Order. This is a long needed change which I support.

The most controversial change is in Article X, which seeks to remove the current $460 million cap on indebtedness. Prompted by a ruling from the federal agency that guarantees GVEA loans, the Rural Utilities Services has indicated they won’t approve further loans unless their original loan amount (face value) is under that $460 million. GVEA is at $465 million now, with outstanding debt at $365 million. The exact wording struck is However, the highest amount of indebtedness to which the Cooperative shall at any time be subject is $460,000,000.00. I recommend members vote NO on this change.

What this change would do is give the GVEA board a free hand in taking on debt. In fact, they already established a policy for a maximum indebtedness of between $600 million and $960 million, more than 1.5 times current debt.

As GVEA pursues new projects such as the Healy 2 Coal Plant or the Eva Creek Wind Project, each about $95 million, the debt, interest, and depreciation will raise your rates. As CEO Newton explained at the annual meeting, those costs will be a component not of the utility charge where usually reflected, but instead be buried within your fuel charge. New generation is being put into a Generation and Transmission (G&T) subsidiary Tri-Valley Electric Cooperative (Tri-VEC), even though members soundly defeated a proposal to move current G&T assets to a separate subsidiary in 2008. I’ll leave it to members to decide if this violates members’ intent.

GVEA has borrowed most of their outstanding loans in the last 10 years for a new oil fired 65 mw plant in North Pole, a second intertie line from Healy-Fairbanks, and the largest battery bank in the world.. They also just approved a $65 million loan for 2 years of various upgrades. It is good they only contributed in-kind effort and under $10 million of legal fees into the $312 million experimental coal plant in Healy. It was the U.S. Dept. of Energy and the State of Alaska that paid for it and the State of Alaska that is now suing GVEA for backing out of it.

While I appreciate recent GVEA efforts to provide more information to members, they have a long ways to go to fully earn my trust to support this bylaw amendment. When they use a subsidiary to purchase major assets on behalf of our membership, each of those subsidiaries needs to exhibit transparency. Alasconnect, GVEA communications subsidiary, is so undercover, their website is a shell, meetings are not announced, nor are GVEA members allowed to attend either monthly or annual meetings. Tri-VEC has no presence on the GVEA website. One might be able to find some information about both from board minutes and agendas, but those are paper scanned and are not indexed or searchable.

One of the findings of a recent member survey GVEA hired out was that GVEA needs to do a better job of fostering two-way communications with members. I’d say more, except the board meeting at which it was discussed went into executive session and all non-staff and board members were required to leave. Board Policy 1.2 value “Open and transparent communications with our members.” is not being honored. Another policy actively discourages board members from communicating to those they represent.

There are a couple of board members who advocate for improved communication with members, but it takes a majority of 4. I would recommend that GVEA members in districts now voting for board members call the candidates and ask for their commitment to better two-way communication. We elect board members from our districts and should be able to reasonably expect that they can communicate with us with their view as well as that of the board as a whole. Through technology, it can be done at little cost and will encourage GVEA members to be more involved in our co-op.

Until there is more transparency to members, I can’t support eliminating a cap on our cooperative’s debt. I would support increasing the $460 million some in order to pursue well supported renewable and demand reduction projects, but the board chose not to propose that to the members. We must discourage large debt load to keep our rates down.

More on Eva Creek Wind Project

I have to update my understanding of Eva Creek. At the recent Rural Energy Conference and the GVEA annual meeting, we were informed that the Eva Creek wind project is only expected to be 30% efficient, thus getting only an average of 8 mw instead of the rated 24 mw. That's a big difference in payback and deserves another look. Particularly with federal and state grant opportunities, I think there needs to be a more considered look at it. Don't get me wrong, I'm very much in favor of renewable energy, but it needs to be done intelligently, just like I think we need to not invest in the 50 mw Healy 2 coal plant coincidentally for about the same $95 million. Wonder what the efficiency of this plant would be?

A recent thought about using coal as a fuel source made me think of fast food. You know it's unhealthy for you in the long term, but it's cheap and tastes good (metaphorically speaking). Even when we send coal away to east Asia, it comes back to us in the form of arctic haze and pollution.