Golden Valley Electric Association Issues

IRV for board of directors elections?

2008-03-05T15:11:00.003-09:00

Using a ranked choice voting system to elect our board members (in district) might help avoid an issue of concern to the recent District 2 nominating committee, whereby apparently eight candidates for the seat were whittled down to two so that there would be no risk of one candidate not getting the required margin to win (for example, a three- or four-way tie) and then having to go for a whole new shiny expensive runoff election.

Having elections using IRV would make it a lot easier to give us a wide choice of candidates, but it would mean amending the bylaws. What do you think? Is this something we should do?

Might help avoid dodgy-appearing problems in the future as well as save money.

GVEA and Chugach Electric among top ten CO2 producers in the state

2008-01-20T10:46:00.000-09:00

From Kodiak Konfidential comes this interesting news about our biggest utilities: Chugach Electric is #4 on the list, and GVEA is #6:

4. Chugach Electric Association
1.07 million metric tons CO2
Electricity
...
6. Golden Valley Electric Association
0.69 million metric tons CO2
Electricity

That's a lot of CO2. All the more reason to get off the grid with renewable energy, or support net metering (as in House Bill 288), or the SNAP program.

Cost of Power Adjustment

2007-12-06T16:36:00.000-09:00

Speaking of the Cost of Power Adjustment (COPA), GVEA recently filed its latest quarterly report for COPA. It might take a while to download. They notice the increase in both oil and anticipated coal increases and having less cheap intertie power available. They see a $5.6mm deficit in collection. Expect our COPA to go up substantively.

They also filed their latest Simplified Rate Filing (SRF), which they can submit, as I recall, every 6 months. It comes with much less notice and filing requirements, but they can only increase rates a small amount with each SRF request. Their latest SRF tariff requestwas just approved.

Regulatory Commission of Alaska website upgrade

2007-12-03T20:10:00.001-09:00

The Regulatory Commission of Alaska (RCA) has upgraded their website with a lot of fine features for finding out about utilities' issues before the RCA. I urge all those who can take 15-30 minutes to browse a subject or utility and see what goes on and how the process works. Power to the people and hats off to the RCA for making their regulatory of model of openness.

And if you think GVEA has issues

2007-12-03T19:32:00.000-09:00

Just to let folks know that, by contrast to Matanuska Electric Association (MEA) and Chugach Electric Association (CEA), GVEA is quite stable as far as board, membership, and executive administration relations.

MEA tried to ram a coal fired power plant down the members' and communities' throats, but finally appears to have reconsidered.

CEA has had a running back-and-forth battle between two camps on the board of directors. They recently appointed a new board member to fill a vacancy who I was told really has no idea what a cooperative is and put her on a committee to get the current CEO. This is politics at its base and it hurts the utility. The members get riled up by some factions claiming the IBEW union, who represent the employees, are taking over.

The Chugach board's latest move is a special board meeting called for this coming Wednesday to fire General Manager Bill Stewart. No reason given except they want to go in a different direction, with no hint of what that direction might be. Rebecca Logan (new appointed board member, Uwa Kalenka and Elizabeth Vazquez will comprise the committee to search of a new GM. I'm told that many good employees are bailing out. This sounds to me like a majority of the board is on a political purge. Ray Kreig, former board member, has been most active in engineering this takeover by avowed anti-union board members. I certainly admire activism and the espoused goal of more openness, but have seen no indications that the recent or future board actions empower the members.

When they aren't fighting internally, they sue each other. MEA doesn't generate any of its own power, relying on AML&P, Homer Electric, and Chugach for their generation.

Not to say, while all this acrimony goes on, they don't try to get together, with recent reports that Chugach is investigating merger with AEL&P and still working on a joint agency to deal with upcoming supply issues.

Now if they could only get Fire Island wind project off the table. Non-renewable resource costs aren't getting any cheaper, nor are climate change impacts going away without some serious mitigation.

GVEA transition

2007-12-03T19:23:00.000-09:00

GVEA will have a new CEO/president real soon - Brian Newton. Steve Haagenson has retired, Chief Finance Officer John Grubich is also moving on to other pastures outside Alaska. The new executive team will have their hands full, as the capital spending binge of the new tie line from Healy to Fairbanks, the biggest battery backup in the world "BESS", and two new oil fired generation units in North Pole have pretty much broke the bank. Our board approved all these expenditures and plan on having management to ask for more rate hikes. Expect these increases to be substantial. The assertion will likely include increased fuel costs, but as far as generation goes, we already pay for those increases through the 'cost of power adjustment" or COPA.

Maybe they are going to look at some internal cost cutting that has thus far been sacrosanct. We might even end up with a less glitzy and less costly annual meeting actually focused on real issues and less P.R. Feel free to contribute ideas and suggestions.

500+ conributors to the SNAP purchasers program

2007-11-17T22:20:00.000-09:00

The website says 350, but Tom DeLong tells me that there are now more than 500 SNAP purchasers (people who contribute extra money to pay alternative energy producers in the SNAP program). The site also says that "GVEA is well on its way" to meeting its goal of producing 10 percent of its peak load from alternative sources. However, it doesn't say what that peak load is (anticipated to be 230 MW) or what percentage is actually produced from alternative energy sources. Or at least, I can't find it. Does anyone know what this is, and how close or far GVEA is from meeting its goal?

It would be helpful, on this page, to have contact e-mails or links to the members of the Green Power Advisory Committee. I know several of these people, so I have that info, but others may not.

The new bills

2007-11-13T15:52:00.000-09:00

It's been a few months now since the new-format bills came out, so I've had time to get used to them. Guess what?

I still don't like them.

The little bar graph is nice and all, but I don't know exactly HOW much electricity I used each month in the last year. A close approximation, yes, and a nice visual quickie look-see, yes, but exact amounts? No. I have to go to my old bills and look 'em up.

Not so convenient.

Okay, done now.

Schedule set for GVEA distribution tariff request

2007-10-29T14:47:00.000-08:00

While the tariff filing is confidential, here's a look at the sense of what was filed back in August 2007. All the other documents relating to this case can be found on the RCA website under U-07-08

There is reference to a summer 2008 cost study, in which the balance/allocation of costs between commercial and residential could impact the rates.

Alaska Utility Plans in need of full environmental considerations

2007-06-02T12:01:00.000-08:00

It's nice to know that GVEA isn't the only utility with challenges.

Chugach Electric has had ongoing controversy surrounding a board that either is or isn't supportive of its union employees and their labor representative IBEW.

Matanuska Electric Association is now going out to members to ask about siting for a coal fired power plant, justified by a new state prison to be built. This was recently reported in the Anchorage Daily News. There are a number of members who believe a coal plant has environmental concerns that have not been taken into account. The CH2M Hill Integrated Resource Plan (IRP) commissioned by MEA is not available to the members, so they have no way to review it. I'm happy that GVEA hasn't been so secretive with their IRP and having it available to members for review can lead to a better report. Members don't charge for their input.

In a recent study commissioned by the University of Alaska Fairbanks to look at meeting future power needs, they also came out with a recommendation to build (another) coal fired power plant on campus. Having access to the report helped point out that the economic analysis didn't include any carbon cost analysis, no substantive consideration of alternatives and a near-total wash on further conservation/demand side reductions. You can download the Utility Development Plan at the bottom of the linked page in 3 different sections.

When GVEA performed an Integrated Resource Plan in order to justify the experimental coal plant in Healy in the 1990s, the study found that conservation would cost 1.5 - 2 cents/kwh vs. 3.5 -4.5 cents for a new plant. What the MEA IRP found is anyone's guess. The irony of UAF's plan to add a coal plant is that a coal plant is either on full time or it isn't. There is no load balancing one can do without hours or days for starting a plant. If one builds a 20 mw plant, the most efficient use of that plant is to use 20 mw, not less. This is actually a disincentive for conservation.

I also notice that Governor Palin just awarded Usibelli Coal an award for exporting large quantities of coal to Korea. Rewarding a company for exporting a product that creates pollution that alters our environment? This is the same governor who just created a sub-cabinet level group to find ways that the state can reduce its "contribution" toward climate change.

With all the recent ramp up in discussion over climate change and the added CO2 that coal puts out, it seems like the discussion and research being performed demonstrating all the hazards aren't being translated into action.

Perhaps others would like to add their info about GVEA's Green Power goals?

I ran into Dan Osborne the other day

2007-05-31T09:47:00.001-08:00

and he told me that yes, in fact, the margin required on the G&T was not the 1.25 minimum required by the Regulatory Commission, it was higher, as they had presented, because of GVEA's own requirements. He thinks the membership made an error in voting the G&T down; I disagree--there were other things about the proposal that I didn't like, aside from the margin weirdness. My question to him was, if there was a requirement within GVEA to keep the margin higher, then why didn't anybody tell me this when I asked them, or explain the seeming discrepancy by telling me where the requirement came from? He wasn't able to explain that, but then, we only discussed it briefly and in passing.

Anyway, we are going to get together and he'll tell me all about it then. I'm hoping he can explain this business here, too. Even though the whole thing was rejected by the membership, I think it's important to know what happened and why, because a lot of people I've talked to feel like the board was attempting to get one over on the membership. That's not a good thing.

GVEA Districts 5 & 6 Elections

2007-05-19T14:22:00.000-08:00

I'm inviting all GVEA Districts 5 & 6 candidates to be blog contributors themselves. To invite them, If they don't want or aren't able to do so, they are welcome to offer comments to this posting or any other.

My invitation to all current GVEA Board directors to become blog contributors remains.

News-Miner interviews of District 5 candidates

2007-05-08T13:26:00.000-08:00

The Fairbanks Daily News-Miner has interviews with the candidates, too, asking them about upcoming priorities. According to the article, the priorities break down like so:

•Bartos - taking greater advantage of alternatives to petrochemical power generation: alternative fuels, using state and federal programs that encourage alternative fuels
•Berg (the incumbent) - hiring a new manager, improving communications
•Pieczynski - maintaining infrastructure (looking at renewables on the way, even if not currently cost-effective), working on easements, adding more members to the grid (through greater transparency)

But read the full article.

Interviews complete

2007-05-02T10:23:00.000-08:00

Jeanne Laurencelle interviewed all six candidates for the two open seats on the GVEA board of directors at the annual meeting, and the article will appear in the May Republic. The questions she asked (on the G&T issue and how it was handled; renewable energy; and domestic partner benefits) and the answers they supplied will supplement those found at the GVEA website.

GVEA Annual Meeting 2007 re-cap

2007-04-28T19:56:00.000-08:00

While still in the Carlson and folks still carting away piles of hard cookies, the last GVEA meeting was less contentious and a little less of a glitzy media presentation than in recent years past. The board members even said a few words as they introduced themselves. Board chairman Bill Nordmark made it through chairing the meeting with retiring CEO Steve Haagenson.

Members referred to the upcoming rate hike to be proposed at 4.5%, but it wasn't mentioned in the annual report or by GVEA folks. I had heard much higher than that. We'll see and it members will have a chance to weigh in through the RCA when the time comes.

Twelve SNAP producers were presented checks for about between $30-$1200 (as memory serves me). About $25,000 was contributed by members.

We heard nothing about Alasconnect finances.

My agenda item was to get board members talking to and hearing from their districts' constituents more than now (just about nil). In months and years past, I've suggested blogs, web forums, opt-in emails, district meetings as in years past, newsletters. The best methods to start are the ones that 1) don't cost much 2) more importantly, will allow transparent two-way communications. Surprisingly, Bill Nordmark and Ron Bergh expressed positive opinions, as did Tom Delong and Karen Cedzo. Apparently, they may now be hearing about such things at some of the many presentations, workshops, and conferences they attend. While I've heard promises before (usually when the board member is up for election), the 4 of them constitute a majority, so if they really want to, it can happen.

Others may have additional contributions to a recap of the meeting. Feel free to comment.

article forthcoming

2007-04-25T14:18:00.000-08:00

My intrepid reporter has interviewed each of the board candidates and will be preparing an article for the next issue of the paper. I, like a numbskull, completely forgot about the annual meeting, and didn't go. Sigh.

director interviews

2007-04-11T14:05:00.000-08:00

I may have found a person who will interview the GVEA candidates for the May issue (comes out May 15) of the Republic. If anyone has questions they'd like asked, information they think might be worth finding out on a candidate's stance, please comment here, and I'll check back.

director elections

2007-04-10T13:26:00.000-08:00

Information taken from the GVEA website:
(here's the current board, for comparison.

Candidates for district 5

Candidates nominated by committee:
Ron Bergh, incumbent
David Pieczynski

Candidates nominated by petition:
Hank Bartos

Candidates for district 6

Candidates nominated by committee:
Karen Cedzo, incumbent
John Sloan

Candidates nominated by petition:
Brian Corty

It would be nice to have a little more information on these people other than their answers to GVEA's questions. The ballots will be mailed May 4, but it's not clear when they'll have to be sent back and when they'll be counted (other than the 6/07 rough date).

GVEA MAC member communications only One Way

2007-04-06T21:21:00.000-08:00

Apparently, those GVEA board members who attend Membership Advisory Committee (MAC) meetings don't carry back the comments of the MAC members. At a recent MAC meeting, the MAC members were quite animated about the G&T vote (not in favor), but the board members present failed to mention this to the full board when they presented their report.

I again strongly urge the GVEA board to develop effective TWO WAY communications and offer this site as a forum, since there seems to be no official means.

GVEA President to resign

2007-04-06T21:19:00.000-08:00

GVEA announced that Steve Haagenson plans to resign as President and CEO of GVEA in November 2007.

Annual meeting coming up!

2007-04-05T10:26:00.000-08:00

The GVEA annual membership meeting is coming up on April 24, at the Carlson Center. Here's the agenda:

•6-7:30 p.m. - Registration
•7:30 p.m. - Welcome from the Chairman of the Board
•Pledge of Allegiance & Anthems
•Secretary’s Report of Quorum
•Approval of 2005 Minutes
•Report by Chairman and President & CEO
•Financial & Project Updates
•MAC Acknowledgements
•Announcement of Districts 5 & 6 election of directors by mail ballot and introduction of candidates
•Unfinished Business
•New Business – Announce Scholarship Awards
•Member Comments
•Prize Drawings
•Adjournment

Member comments ought to be interesting...

GVEA filing with RCA approved U-06-060

2007-01-04T13:55:00.001-09:00

Just reporting that the RCA approved GVEA's filing to expand their service area, mostly in the Delta area. The RCA link is here. Listing of all the filings in this document can be found here. Note that many of the RCA documents are in a scanned .tif format. You should open these files in Microsoft Office Image Viewer. The RCA is working on making these documents in a more accessible format. In the meantime, I've taken the main submission and converted it to Adobe Acrobat for your convenience. The document includes a lot of pro-forma info on GVEA that may be of historical interest.

GVEA filing with RCA approved U-06-060

2007-01-04T13:55:00.000-09:00

Just reporting that the RCA approved GVEA's filing to expand their service area, mostly in Delta area. The RCA link is here. Listing of all the filings in this document can be found here.

GVEA officer misspoke?

2006-12-30T12:10:00.000-09:00

In a filing notice I received from the Regulatory Commission of Alaska (RCA) Dec. 29, the RCA dismissed GVEA's G&T application without prejudice. This is appropriate and means that GVEA can re-submit it. The RCA had until Jan. 2, 2007 to approve, in accordance with expeditious regs they have to rule on items. I don't see where they had much of a choice in doing what they did.

This ruling noted that GVEA informed the RCA Dec. 12 by phone that the G&T vote failed with the membership, but that the RCA staff also subsequently received a phone call from an (unnamed) officer of GVEA asking that the RCA continue to keep the docket on U06-069 open, as GVEA may wish to transfer assets to the G&T with the value under the 15% amount that requires the membership vote.

This is in contrast to what CEO Steve Haagenson told me - that if the G&T vote went down, this would be the end of it.

The Fairbanks Daily News Miner filed a report on Dec. 30 with a little more information. (link fixed) I can imagine the consternation amongst GVEA officers and attorneys trying to put out the fire.

Anybody with GVEA want to weigh in? Please do comment.

A few more ideas

2006-12-20T19:42:00.000-09:00

I've been sick the last month, and am finally recovering, but I forgot all about the GVEA meeting.

I still have a remaining question regarding the G&T: How could the staff legitimately claim a $30 million savings based on a 1.75 margin when GVEA doesn't collect that margin? I haven't yet managed to talk to Dan Osborne, who may be able to explain this to me, but from where I'm sitting, this estimate was flatly fraudulent, especially since it appeared in advertisments/official information (the Ruralite & the website) AND on the ballot. Perhaps I'm wrong--I hope I'm just confused, because if I'm NOT wrong, then we have a serious problem within GVEA, and the deception should not be allowed to just go by the by. It may even be felonious.

Now, to a few suggestions: I have had a few ideas and heard a few from various people during all this brouhaha. Among them:

1. An indigent/emergency electric bill fund that members could voluntarily donate to and which could be used by other members in need of help on their bill. This could be started with unclaimed capital credits to get a base pool going.

2. I second Gary's suggestions below. District meetings and communications such as district rep blogs. I'm not sure a newsletter would be useful, unless it replaced Ruralite, which often seems to have nothing to do with GVEA.

3. Tom DeLong made an excellent suggestion regarding incentives for people who conserve energy: if a member/household uses under X amounts of kilowatts each month over a year, then they would qualify for a reduced electricity rate so long as they kept under that usage during the next year. The threshold amount of wattage would have to be determined after a bit of thought, but the idea is to keep down sudden peak loads among your average users and to encourage conservation. Thus, wasteful users would pay more.