Forum for Homer Electric Association member/owners to post, discuss and comment on matters pertaining to the present and future operation and management of our member owned cooperative.
Friday, April 1, 2011
HEAMF Election Update
David Thomas
(District 1: Kenai, Nikiski, parts of Soldotna area)
Dick Waisanen
(District 2: Soldotna, Sterling, part of Kasilof)
Malcolm Gaylord
(District 3: part of Kasilof and south to Kachemak Bay area)
For too many years our electric coop Board was pretty much a closed club simply because few HEA members took much interest. Most didn’t even bother to vote on who would represent them. Consequently, members were provided little information and management did pretty much what it wanted, decisions rubber stamped by the Board. We believe that cost us all a lot of money in the form of higher rates and questionable management practices and almost entangled us in the failed Healy 2 coal plant.
Things have improved since then. The Healy 2 debacle opened a lot of eyes and encouraged many HEA members to speak out for more open governance and better accountability. Over the last three or four years almost all new people have come to serve on the HEA Board of Directors. Communication with the membership is getting better.
But there’s still room for improvement. After Healy 2, the largest change in HEA history was made without significant input from the membership. The Independent Light project committed us to converting our Distribution Cooperative into a Generation and Transmission Cooperative, $180 million in new debt, and continuing dependence on natural gas. Its merits or flaws aside, such a huge change should have been proposed and explained to HEA members in advance and approved or rejected by their vote.
Let’s keep moving toward more open governance and better member involvement by electing Directors truly dedicated to member control -- people capable of independent thinking who will not simply follow management’s lead.
Vote for
David Thomas (District 1) Dick Waisanen (District 2) Malcolm Gaylord (District 3)
Thursday, January 13, 2011
HEA Members Forum Update
These meetings will take place in Kenai at the Central Peninsula Offices, 280 Airport Way. Video conferencing is available in the Homer Offices at 3977 Lake Street.
Tuesday, January 18, 2011 (tentative)
10:00 AM -- Operations and Special Projects
1:00 PM -- Finance Committee
3:00 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting
Check for meeting calendar updates and draft agendas on the HEA website at http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/220/Default.aspx.
No More Secrets for Now
Last November HEA/AEEC filed a petition with the Regulatory Commission of Alaska to classify it’s 2010 Equity Management Plan as confidential. This would keep a lot of information about how the coop conducts business out of the hands of HEA members -- or anyone else for that matter. Several HEA members followed up with a request for a stay pending resolution of a previously filed informal complaint. On December 17, 2010 the RCA denied the HEA/AEEC petition for confidentiality (U-10-85, Order No. 2). The coop may reapply if willing to supply meaningful justification for such blanket confidentiality.
HEA/AEEC Rate Plan on Hold
The proposed new rate design was filed with the RCA on November 9, 2010. Under the plan, the present $11.00 monthly residential customer charge would increase to $15.00 and a minimum monthly 150 kWh energy charge would be added. After receiving 22 public comments, all but one opposing the plan, the RCA suspended the HEA/AEEC request for approval (Order U-10-97, Order No. 1). The December 17, 2010 stay requires HEA/AEEC to submit a brief addressing how the proposed “minimum energy charge” complies with relevant Alaska Administrative Code. It also schedules further investigation, invites petitions to intervene from interested parties and participation by the Attorney General, and appoints an administrative law judge to conduct the docket. The deadline for petitions to intervene is 4 p.m., January 18, 2011. A prehearing scheduling conference for the matter will be held in the Commission’s East Hearing Room at 9 a.m. on February 4, 2011. Go to the RCA website at http://rca.alaska.gov/RCAWeb/Entity/EntityDetails.aspx?id=883fd287-5437-45c3-ac93-6611db2d87b0 for documents relating to HEA/AEEC.
WPCRA vs. COPA -- Say What?
Given the RCA stay of HEA/AEEC’s proposed rate plan this might be moot but here goes anyway. One of the complaints against the rate plan was a move to replace the Wholesale Power Cost Rate Adjustment (WPCRA) with a Cost of Power Adjustment (COPA). Remember, the WPCRA is that fluctuating cost HEA has to pay for energy, mostly reflecting the price of natural gas. It’s passed through to you. According to a December 6, 2010 letter from RCA staff, unlike the WPCRA, the COPA would allow HEA/AEEC to change rates associated with fuel and purchased power absent the normal RCA rate proceeding. It looks like going to the COPA would result in an instant rate increase as well. When the new rate plan was presented to HEA members the WPCRA was less than one cent (.00715) per kWh. The figure given for the COPA under the new plan was 2.862 cents per kWh -- much higher. What extra things does it include? While this information has been requested many times, there has as yet been no side-by-side comparison of these two computations. HEA’s Joe Gallagher is trying to get this for us but has so far been unable to deliver.
Independent Light $$
Phase One of the Independent Light project, upgrade of the Nikiski plant, is proceeding as planned according to the December 14, 2010 update from the HEA/AEEC engineering staff. At that time design work was 90 percent complete and construction bids were expected to go out last month. A contract should be awarded in February 2011, work should be completed by 2012, and the new steam turbine should be in commercial operation by the 4th quarter of that year. This upgrade is expected to improve efficiency of the plant by 40 percent without burning any extra fuel, allowing it to generate most of the baseload requirements for the HEA/AEEC service area.
Phase Two of the project, addition of new gas generation facilities at Soldotna to supply “peaking” and reserve energy, is moving forward as well. Additional property has been purchased at the old “Soldotna 1” site, Stanley Consultants was awarded a contract for up to $3,300,000 for facility design, and purchase of one gas turbine generator for approximately $22,700,000 was authorized. HEA/AEEC Directors declined to authorize purchase of two units as originally envisioned by management. Discussion of the enabling resolution (10-34) indicated that some Directors have misgivings about investing so much money in new natural gas hardware and would like to investigate other renewable energy sources. This decision will be revisited in the near future.
Cook Inlet Natural Gas Storage Alaska (CINGSA)
With diminishing Cook Inlet natural gas supplies, keeping the heat and lights on during winter cold snaps is becoming iffy. This is a growing concern for HEA/AEEC, especially with at least one new gas turbine slated for Soldotna. As a partial solution, CINGSA proposes an underground storage facility in Kenai to hold natural gas during times of low demand and then withdraw the gas during peak demand (winter). At the December 14, 2010 HEA/AEEC meetings AEEC Resolution 10-31 was approved authorizing HEA General Manager Janorschke to sign a contract committing HEA/AEEC as a customer of the CINGSA project. Other CINGSA customers include Enstar, Municipal Light and Power of Anchorage, and Chugach Electric Association. If the project is successfully developed HEA/AEEC commits to a 20-year contract. The coop would pay monthly fees for its share of storage capacity and the amounts of gas it injects or withdraws. It will also need to supply (purchase) gas and pay for the energy used to inject or withdraw it. There will be added charges if amounts of gas stored, injected, and withdrawn exceed that allowed by the contract. While speculative, estimates of cost to HEA/AEEC range between $900,000 and $1,988,000 per year.
AEEC Board Meeting Minutes and Voting Record
A small concession was won at the December 14, 2010 HEA/AEEC meetings. In response to a HEAMF request, Directors approved a motion to start posting Alaska Electric and Energy Cooperative Board meeting minutes on the HEA website as is already done for HEA Board meetings. This is important because the minutes contain a record of how Directors vote on various resolutions. It’s one way for HEA members to evaluate Director performance and make good decisions at annual Board elections. But more needs to be done.
Since inception in 2002 the AEEC has been more or less invisible to HEA members. There is little information provided on the HEA website -- only meeting notices and agendas. Considering that the present conversion from a distribution utility to a generation &transmission utility is likely the largest, most costly event in our coop’s history and is being accomplished primarily through the AEEC, this seems like a significant omission. For some time we have requested that HEA fully disclose and explain to members the HEA/AEEC relationship. This should include posting of AEEC organizational documents such as bylaws, Board policies, Board member information, and other pertinent materials on the HEA website -- or on a new AEEC site. HEA members are not also AEEC members. AEEC has no debt limit. Consequently, it should be made clear how HEA members can have a voice in AEEC affairs, what measures are in place to prevent unlimited borrowing through the AEEC, and what checks and balances preclude bad decisions by those who conduct AEEC business.
Thursday, May 6, 2010
Recent News
At yesterday's Annual HEA Meeting incumbent Director Tony Garcia was voted out while Board President Debbie Debnam was reelected by a substantial margin. Debnam is the last of the "old guard" Directors who favored business by executive session while promoting involvement in HEALY 2 and other coal projects. HEAMF supported her opponent Ken Hepner who favors open governance and serious efforts to increase inclusion of alternative energy sources to meet HEA load requirements. William Warren defeated Garcia. HEAMF endorsed Garcia largely because he had shown steady growth in supporting our objectives and we lacked knowledge about Warren. Subsequently, Ken Hepner and others who have known him suggest that Warren will make a good Director who will promote open governance and renewable energy. Bill Fry, the only District 3 candidate on the ballot was easily elected in spite of a write-in campaign.
Total Ballots Cast = 5,141 (23.8% of the 21,586 HEA Members)
Total Ballots Voided for Cause = 163
Total Ballots Counted = 4,978
District 1 -- Warren 918, Garcia 702, write-ins 32
District 2 -- Debnam 1,215, Hepner 592, write-ins 46
District 3 -- Fry 1,350, write-ins 93
Manager's Moment
HEA General Manager Brad Janorschke presented a much better overview than the fiasco of 2009. This time he gave a decent summary of the Independent Light project, a brief discussion of the nature of AEEC (Alaska Electric & Energy Cooperative, Inc.), and provide some updated information on the Kenai Winds, Kenai Hydro, and potential large hydroelectric and geothermal projects that might one day supply railbelt energy. Theoretically, his PowerPoint presentation should be posted to the HEA website some time today (http://www.homerelectric.com/). If you want more detailed information check it out. Several things Janorschke said are worth noting here, however:
Independent Light consists of two phases.
Phase I -- HEA/AEEC has already committed to this. It involves upgrade of the Nikiski plant. Contracts have been awarded for design work ($5,017,900), a GE steam turbine ($9,420,000), and related substation upgrades($3,813,697). This phase addresses "baseload," the ongoing 40 to 70 MW consumed by all HEA members.
Phase II --This phase will address "peaking, reserve, and contingency" power sources. Additional power is needed if energy requirements exceed normal baseload capacity, should the Nikiski plant or Bradley Lake fail or be shut down for maintenance, or during unforeseen situations such as a disaster. Three options are being investigated: build new generating capacity ourselves, buy an existing plant from another utility, purchase agreements for buying power from other power producers. No commitment has yet been made to any one or combination of these.
Independent Light and efforts to adopt renewables are now linked. Janorschke said that whatever HEA/AEEC chooses for phase two of Independent Light, the administration doesn't want it to constrain our ability to adopt new or better options as they become available.
HEA Members' Moment
During his explanation of AEEC Janorschke failed to mention that HEA members are not also AEEC members and, consequently, have no rights or authority with AEEC. During the member comment period I pointed this out as something all members should be aware of. It is a significant problem considering that all decisions about Independent Light are being made by AEEC, including plans to take on over $200 million in debt to finance the project. President Debnam ask HEA attorney Rick Baldwin to elaborate on my statement but he declined, saying that no further explanation was warranted.
Another member made a motion from the floor that Board of Director expenses be published in the Kilowatt Courier from now on. I made a friendly amendment that they also be posted on the HEA website. On a vote of the assembled membership the motion and amendment were passed. If memory serves, these floor votes are considered advisory and the Board may choose to accept or reject them. Stay tuned.
Tuesday, October 13, 2009
RCA Net Metering Hearing October 14th
The Regulatory Commission of Alaska will hold testimony and potentially
adopt a Net Metering rule on Wednesday, October 14th at 9:00 a.m.
According to RCA staff, the commission may vote yes or no on adopting
net metering regulations based on comments received to date. It is also
possible the commission will request additional comment on a revised
version of proposed net metering regulations.
Teleconferencing can be arranged if
requested in advance of the meeting.
More information may be obtained by calling1-800-390-2782
or by visiting the RCA website at http://rca.alaska.gov.
Tuesday, August 11, 2009
Solar Tour
Saturday, August 15, 2009
The Alaska Solar Tour
10am to 4pm including Kenai Peninsula sites
The ALASKA SOLAR TOUR is a free self directed tour from 10am to 4pm at 25 different sites around the state. The Alaska Solar Tour is sponsored by the Alaska Center for Appropriate Technology in conjunction with the American Solar Energy Society.
The Alaska Solar Tour will feature home and business sites in our community that showcase installations of Solar thermal, Photovoltaic, and green building features. Find out how your neighbors are trimming their energy bills, generating their own electricity, and improving the future of our planet by living sustainably today.
No registration required. View the map of host sites at www.AlaskaSolarTour.ORG and get a carload of friends to visit a few of your neighbor’s open house sites. Communities involved include: Anchorage, Mat-Su, Kenai/Soldotna/Kasilof, Fairbanks/Delta Junction, Nome, Homer, and Kalgin Island. Join us in tribute to these trail blazer Alaskans who have ventured out ahead of the crowd using a cleaner, safer, and renewable source of energy.
In the Kenai/Soldotna/Kasilof area we have 2 sites; the 1st site; (open from 10am-Noon) is the Fox Farm on K-beach and Old Timer Rd. It has a newly installed 700 watt PV system that produces 50% of the power needed for this small home. There will be refreshments and a performance by Amy Hettinger* at 11am. Amy is a folk singer and a volunteer for Bioneers in Alaska. Also present will be Timothy Oliver – the Kasilof artist who was commissioned to paint the artwork for the 2009 poster.
From Noon - 4pm Ionia will provide a home grown vegetarian buffet while sustainable energy seekers are energized by the angelic sounds of Amy Hettinger* on the guitar from 1- 2pm. Ionia will provide tours of their community demonstrating their focus on sustainability. A high efficiency wood fired Garn boiler and 4 large Heliodyne flat plate solar collectors provide hot water for domestic use as well as space heating. Each year Ionia continues to get closer to the sustainability goal we all strive for. This organic community has replaced $12,000 per year of propane and $3,000 per year of heating oil with clean, safe, and renewable energy.
*Amy Lou Hettinger
Born and raised in a log cabin her parents built in the knobs of Kentucky, singer-songwriter Amy Lou grew up 'porch pickin' and singin' with an amazing family of musicians. Three years ago, she began to write her own songs and migrated north, where she promptly fell in love with the Alaskan mountains and people. Just back from completing an intense Masters in Education at Harvard, she's glad to be home. Amy Lou’s fresh and uplifting music has been called “edifying,” and her voice, “lilting” and “angelic.” You can get a taste of Amy Lou's music, and see a schedule of upcoming shows,
at www.myspace.com/amylousings.
Thursday, July 2, 2009
Net Metering Comments Needed
The Regulatory Commission of Alaska (RCA), seeks comment (Docket R-09-001).
Your input is needed by 4:00 PM Monday, July 13, 2009
Proposed Net Metering Standards require HEA and other large utilities to allow you to reduce home or business electric bills by installing wind turbines, solar panels, or other alternative technologies.
How does net metering work?
Your renewable energy system is connected to the HEA grid. You save money by subtracting the value of the energy you create from your utility bill. If you produce more energy than you use, you receive a credit for the next billing cycle.
Write your comments today -- request these 3 changes:
No special charges for customers who produce renewable energy. As proposed, standards allow utilities to charge net metering customers an added fee. This undermines the point of net metering and will discourage participation.
Adopt an annual billing cycle for net metering. The proposed billing cycle is monthly. It should be annual to give you maximum benefit from high seasonal solar and wind production peaks.
Cap the number of renewable energy systems based on peak demand. The proposed standards limit net metered energy to 1.5% of the utility’s average demand. Total capacity limit for net metered systems should be set at 1% of the utility’s peak demand (when power use is highest). A larger cap means more people benefit and it will allow our renewable energy economy to grow.
Submit your comments to:
https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx.
(scroll down to R-09-001 and click far right box, “submit comments”) or mail them to:
The Regulatory Commission of Alaska
701 W. Eighth Ave. Suite 300
Anchorage, Alaska, 99501
For alternative communication formats to comment, please contact Joyce
McGowan at






send a request via electronic mail to rca.mail (email @) alaska.gov
COMMENTS MUST BE RECEIVED NO LATER THAN MONDAY, JULY 13 at 4 PM.