Monday, July 11, 2011

Regular July HEA/AEEC Meetings

Meetings take place this week at the Homer Offices, 3977 Lake Street. Video conferencing is available in the Kenai Offices at 280 Airport Way, 907-283-5831.

Tuesday, July 12, 2011

10:00 AM -- Operations and Special Projects
1:00 PM -- Finance Committee
3:00 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting
Draft agendas are available on the HEA website at
. There are sometimes last minute changes in scheduling.

Excerpts from the June HEA Manager's Report

Regulatory Commission of Alaska (RCA) Docket regarding the HEA/AEEC relationship – The RCA docket that questions the relationship between HEA and AEEC is still open. The deadline of May 27 was extended until June 27, 2011. It appears that questions posed by the petitioners are related to governance and legal matters. [This matter is the subject of a formal compliant filed by seven HEA members concerned about possible inappropriate management practices.]

Tidal Power – HEA staff met with ORPC [Ocean Renewable Power Company] representatives on June 1 to discuss
how to continue to develop a tidal power pilot project in Cook Inlet. The discussion went well as the parties look to conduct research, develop project plans, indentify grid interconnection, update project costs, and establish a legislative strategy prior to the end of this year.

Watana [proposed Susitna Dam] – Alaska Energy Authority and their engineering contractor met with some of the Railbelt engineers June 8 to discuss the proposed project. Most of the discussion centered on establishing the appropriate size of project for the Railbelt. The 600 MW size identified in the Railbelt Integrated Resource Plan appears to be acceptable amongst the utilities.

Fire Island – Based on a June 10 press release, Chugach Electric Association (CEA) and Cook Inlet region, Inc. (CIRI) have come to terms on wind energy output from the Fire Island Project. CEA has agreed to pay CIRI a net cost of $97.00 per MWh for 25 years beginning December 31, 2012. The proposed power purchase agreement will require Regulatory Commission of Alaska (RCA) approval.

Bernice Lake Generation –Chugach Electric Association’s (CEA) board of directors has approved the sale of the Bernice Lake Generation Facility located in Nikiski to AEEC. At this time negotiation of final documents is substantially complete, but the documents have not been executed. Although HEA/AEEC and CEA have agreed to the sale, the final sales transaction is contingent on several things including approval from the Regulatory Commission of Alaska (RCA). Assuming the asset sale takes place, the roughly 67 MW facility will be used to supplement the peaking and backup generation planned for Soldotna. The Bernice Lake generation does not replace the current LM6000 [single cycle gas turbine generator] scheduled for the Soldotna site. [Hopefully this will eliminate future purchase of a second turbine for Soldotna, however.]

HEAMF clarification notes and comment were added in [brackets]. HEA Manager's reports can be downloaded from the HEA website at