Thursday, May 21, 2009

HEAMF Letter to the HEA Board‏

HEA Members Forum- 3734 Ben Walters Lane - Homer, AK 99603

May 20, 2009 (Sent electronically)

Board of Directors
Homer Electric Association
3977 Lake Street
Homer, AK 99603

Dear HEA Directors:

On behalf of all HEA Members Forum (HEAMF) participants I want to express appreciation and support for your May 12 vote to "transition our cooperative away from involvement in HCCP." From subsequent discussion with several of you and through Director Evans' public statements, it is clear that the primary motivation was to protect HEA members from unnecessary financial risk. You are to be commended for taking your fiduciary responsibilities seriously. As you know, we had great concern involvement with the project was likely to increase our electric rates in the long run and perhaps involve our coop in protracted litigation over permitting disputes.

We realize that, given previous commitments to participate in restarting Healy 2, this was not an easy decision and that there will likely be pressure from both AIDEA and GVEA for you to reconsider. HEAMF participants will stand behind you in resisting any effort to coerce HEA into reversing the May 12 decision. We feel that AIDEA and GVEA obtained former commitments from our coop through obfuscation. Had they been ¬more candid about the many technical and regulatory challenges of a restart, we suspect that HEA may have been reticent to participate at a much earlier date. Fortunately you ultimately obtained the back ground needed to make an informed decision.

Thanks to each of you for your work on this important matter. There are many other options to be considered now in seeking sources for safe, dependable, affordable energy. HEAMF participants believe that each potential technology or specific project deserves a deliberate, fact-based evaluation of potential costs and benefits before being embraced.

We look forward to supporting you in this work.

Most sincerely,
Mike O'Meara,
Spokesman HEA Members Forum

HEA General Manager Brad Janorschke
HEA Outreach Coordinator Joe Gallagher

Tuesday, May 19, 2009

The HEA Board Needs Our Support

The May 12 vote against further participation in plans to restart the Healy 2 coal plant was both prudent and courageous.

By refusing to be manipulated into taking the risk and paying the costs for GVEA to acquire the Healy 2 plant, the HEA Board:

* Saved $47.5 million of HEA members’ money,

* Eliminated risk of significant added costs due to new mercury and CO2 emission control requirements,

* Avoided long-term electric rate hikes due to rising coal prices.

Unfortunately, the Alaska Industrial Development & Export Authority really wants to dump Healy 2 on someone else. Under a 2006 agreement with AIDEA, HEA committed to managing work required for restarting the plant. It's unclear how this will be resolved. AIDEA might use that agreement to pressure HEA to reconsider the May 12 vote. Our Board needs to know we are behind them 100% in withdrawing from Healy 2.

Please send HEA Board members a short message thanking them for their decision to drop Healy 2 and letting them know that you will stand behind them during the process of pulling out.

Alan Bute, District 1, byrdave (EMAIL @) or (907) 776-8115

Jose (Tony) Garcia, District 1, tonygarcia43 (EMAIL @) or (907) 252-7790
David B. Thomas, District 1, davidthomashea (EMAIL @) or (907) 283-4109
Deborah Debnam, District 2, debbie (EMAIL @) or (907) 262-9277
Tim Evans, District 2, heatde (EMAIL @) or (907) 262-3734
Ed Oberts, District 2, eoberts (EMAIL @) or (907) 398-8039
Brian Hirsch, hirsch (EMAIL @) or (907) 235-7164
Jim Levine, District 3, jlevine (EMAIL @), (907) 299-0323
J. Michael Pate, Mike_Pate (EMAIL @) or (907)-235-8105

HEA General Manager, bjanorschke (EMAIL @)

Joe Gallagher, HEA Outreach jgallagher (EMAIL @)

Tuesday, May 12, 2009

Update from Board Meeting!

Today (May 12, 2009) the HEA Board of Directors voted to " the
General Manager to cancel the RFP for the Power Supply Study and
transition our cooperative away from involvement in HCCP" [the Healy 2
coal plant]. The process of withdrawing from preliminary commitments to
Healy 2 may require a little time but, when questioned about it, 2 board
members confirmed that the intent is to end HEA's involvement with plans
to restart the Healy 2 plant.

Director Tim Evans made the motion to start the process of disengaging
from the Healy 2 project. It was adopted by a vote of 8 to 1. The single
opposing vote represented concern over discontinuing the Power Supply
Study and did not reflect support for Healy 2.

Member/Owners Needed to Attend Meeting

Tuesday (May 12) starting at 5:30 PM in the Homer Offices.
(HEA Board Meetings will be held at the Homer offices May through August)

It would be good for the HEA Board to see a number of ratepayer/members at Tuesday’s meeting.

The Board needs to know that we are not satisfied with Brad Janorschke’s failure to provide good information on the status of Healy 2 negotiations, the Power Supply Study, and small hydroelectric proposals at the Annual Meeting of members. Just see you there reminds them that we are still watching.

It would also be a good opportunity to welcome the newly elected Board Members and encourage them to support more open governance of our coop. You can talk to anything on the agenda early in the meeting (agenda item 4). Other comments will need to wait until later (agenda item 11).

Tuesday’s meeting agenda is pasted below. Hope some of you will find time to join us.

May 12, 2009
5:30 p.m.
Homer, Alaska

1.Call to Order
A)Pledge of Allegiance
B)Roll Call
C)Election of Officers (if needed)

2.Changes to the Agenda

3.Business of Visitors

4.HEA Member Comments upon Matters on the Agenda

5.Adoption of the Consent Agenda
A)Approval of Minutes: Regular Meeting of April 14, 2009
B)Resolution 09-21, Capital Credits Payment to Estates


7.Manager's Report (no exhibit)

8.Committee Reports
A)Operations and Special Projects, David Thomas, Chair
B)Finance, Audit, Rate and Planning, Don Seelinger, Chair
C)APA Report, Debbie Debnam, Board Member (remittance options)
D)Railbelt Utility Task Force, Mike Pate or Tim Evans

9.Unfinished Business
A)Acceptance of February Financial Reports
B)Audio Conferencing Options (presentation)
Board Meeting Agenda Homer Electric Association, Inc. Page 2

10.New Business
A)Resolution 09-22, Scholarship Winners
B)Resolution 09-23, Simplified Rate Filing for the Test Year Ending March 31,

11.General Comments of HEA Members

12.Comments and Discussion by Board Members

13.Calendar Review

- May 12, 2009 / Homer Board Room
12:30 p.m. - Lunch
1:30 p.m. - RW Beck Workshop
3:30 p.m. - AEEC Annual Meeting
3:40 p.m. - AEEC Board of Directors' Meeting
5:30 p.m. - Board of Directors' Meeting

- June 9, 2009 / Homer Board Room
2:00 p.m. - Operations Committee Meeting
3:30 p.m. - Finance Committee Meeting
5:30 p.m. - Board of Directors' Meeting

- July 14, 2009 / Homer Board Room
2:00 p.m. - Operations Committee Meeting
3:30 p.m. - Finance Committee Meeting
5:30 p.m. - Board of Directors' Meeting

- August 11, 2009 / Homer Board Room
2:00 p.m. - Operations Committee Meeting
3:30 p.m. - Finance Committee Meeting
5:30 p.m. - Board of Directors' Meeting


- May 27, 2009............................................
4:00p.m. - CEA Board Meeting

- June 24, 2009...........................................
4:00p.m. - CEA Board Meeting

- August 5-7, 2009 - Kenai/Soldotna...... APA Annual Meeting

14. Adjournment

Monday, May 4, 2009

Alaska Coal Workshop

Wednesday May 6th, 2009
Islands and Ocean Visitors Center 7-9 PM

Join Goldman Prize award winner Judy Bonds and acclaimed lawyer Joe Lovett as they share lessons learned from fighting the destructive impacts of coal strip mining and coal power plants in Appalachia and the Southeast United States. Bonds and Lovett will pull back the curtain on the myth of “clean coal.”

Get information and tools needed to protect our lands, waters, fisheries and sustainable jobs.

Invite family and friends along to hear these two remarkable speakers discuss the true costs of coal!

Sunday, May 3, 2009

HEA Board candidate Jim Levine

HEA Board candidate Jim Levine shares HEA Members Forum’s two major objectives:

1. Replace the present policy of exclusion and secrecy by HEA Management and Board with open governance offering greater opportunity for member participation.

2. Move HEA toward a fossil fuel free grid through increased efficiency, embrace of renewable energy technology, prompt phase-out of natural gas & oil, rejection of coal, and greater collaboration with other “railbelt” utilities.

Jim also has the professional expertise and organizational experience to effectively advocate for us during HEA Board policy discussions.

If you haven’t already done so, you can vote for Jim Levine at the Annual HEA Meeting on Thursday, May 7 at Homer High School.

Please Attend the Annual HEA Meeting

Thursday, May 7
Homer High School

Registration 4:30 – 6:30 P.M.
Business meeting starts at 6:00 P.M.

A large number of HEA members are needed to support passage of a resolution from the floor to
limit the Board’s ability to sign any binding agreement for purchase of power from the Healy 2 coal plant.

Still haven’t voted for your HEA Board representative? You can do so at the Annual Meeting.

You must register at the beginning of the meeting in order to vote on either issue.