HEA Members Forum Update

HEA/AEEC MEETINGS
Tuesday, June July 9, 2013
HEA members are welcome to attend.

10:00 AM: Ocean Renewable Power Company Presentation
At the request of the HEA Renewable Energy Committee, Doug Johnson of ORPC (http://www.orpc.co/ )will update the full HEA Board on their Cook Inlet tidal power generation pilot project. 

12:00 Noon: HEA Combined Committee/Board Meetings

The AEEC Combined Committee/Board Meeting will follow the HEA Meeting later in the afternoon.

Meetings will be at the Homer HEA Offices at 3977 Lake Street. 
Kenai offices are being remodeled so video conferencing still may not be available for the Central Kenai Peninsula.
Meeting agendas should be available by July 8 on the HEA website at http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/318/Default.aspx.

NIKISKI STEAM TURBINE GENERATOR
The new steam turbine is running and generating electricity off waste heat from our old gas turbine. More good news -- Golden Valley Electric Association has agreed to buy that power between now and the end of this year when we stop buying energy from Chugach Electric Association. It's a good deal for both HEA and GVEA. We get revenue for energy produced before we need it, allowing us to keep the new turbine running during this time and work out any bugs in the Nikiski plant's upgrades. GVEA gets comparatively low cost energy from us for the next six months.

JULY RATE INCREASE
Look for a 4.39% increase on this month's residential electric bill (18.075 cents per kWh, up from 17.315 cents). This will cost the average 630 kWh residential energy consumer about $4.79 more than last month. 
 
9TH ANNUAL ALASKA RENEWABLE ENERGY FAIR
Mark your calendar -- August 10, 11:00 AM to 9:00 PM on the Anchorage parkstrip. It's fun for the whole family! Enjoy live music, crafts, great local food, informational booths, children’s activities, and interesting workshops. Admission is FREE and it’s guaranteed to be a great time! For more information contact Jenny Lynes at 907-929-7770 or j.lynes(at@)REalaska.org and check the website athttp://alaskarenewableenergy.org/ for updates on planning.

HEA Members Forum Update

Regular HEA/AEEC Meetings
Tuesday, September 11, 2012

10:00 AM -- Operations and Special Projects
1:00 PM -- Finance Committee
3:00 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting

Location: Starting this month meetings take place in the Kenai Offices at 280 Airport Way. Video conferencing is available in the Homer Offices at 3977 Lake Street, 907-235-8551. Draft agendas are now available on the HEA website athttp://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/220/Default.aspx. There are sometimes last minute changes in scheduling, so check the website.

HEA Area Wide MeetingsGeneral Manager Brad Janorschke will provide a short overview of present HEA issues. Bring your comments and questions. There will be complementary food and prize drawings.

•    September 12 at Seldovia Community Center -- noon to 1:30 PM
•    September 25 in Ninilchik Fair Grounds -- 5:30 PM 
•    September 26 at Chapman School in Anchor Point -- 5:30 PM
•    September 27 at the Funny River Community Center -- 5:30 PM
•    October 3 at the Sterling Senior Center -- 5:30 PM
•    October 4 at the Nikiski Community & Recreation Center -- 5:30 PM

Proposed New Line Extension Policy
Last fall HEA filed a line extension tariff revision with the Regulatory Commission of Alaska. It was withdrawn due to scheduling problems but will be resubmitted next month (October 1). At the August 14 HEA/AEEC meetings there was some discussion over whether to resubmit the original plan or make modifications based upon HEA member comments. Should the Board wish to make modifications it will be discussed at Tuesday's Finance Committee meeting (see above meeting times). The topic is not on the meeting agenda, however. If the original plan is approved, there will be substantial changes in costs and conditions for installing some types of new electric service (summary attached). 

Proposed Battle Creek Diversion Project
The proposal is to divert water from the upper flow of the north fork of Battle Creek into Bradley Lake in order to allow the dam to produce somewhat more energy. The Alaska Energy Authority has been continuing field work necessary to support engineering design of the proposed Battle Creek Diversion in preparation for the draft license amendment application to the Federal Energy Regulatory Commission. Responses to the agencies concerns regarding such things as loss of side-channel connectivity, compounding impacts from beaver activity, loss of sediment transfer because of reduced flushing flows, reduced cold-water contributions to side-channel ponds and others discussed during the May 2012 workshop have been developed while preparing for the draft amendment application. Documents and information regarding these are available Bryan Carey, P.E., AEA & AIDEA, (907) 771-3065.

AEA will be provide a draft FERC amendment application, including supporting environmental analysis of the operations proposal to interested parties

The approximate schedule for the amendment application is:

·         AEA to provide Draft Amendment Application to agencies for review: September 2012

·          90-day comment period by agencies:  September -  December 2012.

·         Meeting(s) with Agencies Regarding Recommended Terms and Conditions: January - March 2013

·         Final Amendment Application Submitted to FERC: March 2013 

·         FERC Processes Amendment Application: Spring – Summer 2013

  

HEA Members Forum Update

Regular HEA/AEEC Meetings
Tuesday, August 14, 2012

10:00 AM -- Operations and Special Projects
1:00 PM -- Finance Committee
3:00 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting

Location: Meetings take place in the Homer Offices at 3977 Lake Street, 907-235-8551.  Video conferencing is available in the Kenai Offices at 280 Airport Way.  Draft agendas should available at least a day before meetings on the HEA website athttp://www.homerelectric.com/

BoardofDirectorsElections/
BoardMeetingInformation/Agendas/tabid/220/Default.aspx. There are sometimes last minute changes in scheduling, so check the website.

Tomorrow -- the 8th Annual Alaska Renewable Energy Fair
Saturday, August 11, 2012 -- 11:00 AM-9:00 PM -- Anchorage Parkstrip Between G & I Streets
This a FREE event with live music, food, a beer garden, craft and information booths, kids activities and renewable energy workshops.Go to http://alaskarenewableenergy.

org/events/alaska-renewable-
energy-fair/ for a complete list of activities.

New USDA-Funded Loans for Energy Upgrades
U.S. Agriculture Secretary Tom Vilsack recently announced a $250 million program to allow rural electric cooperative customers to take out USDA-funded loans to make energy upgrades and then pay back the loans through their monthly utility savings.

Like the Alaska Housing Finance Corporation rebate program, a certified energy auditor first evaluates the home and makes recommendations for upgrades. Unlike the AHFC program, qualifying homeowners will get an upfront loan rather than a partial rebate after work is completed.

Two-thirds of the savings resulting from the upgrades would go toward repaying the loan. For example, if the drop in energy use results in a $100 monthly savings, $66 would go toward satisfying the debt, and the homeowner’s bill would still be about $33 less than without the improvements. 

Clean Energy Ambassadors (http://

cleanenergyambassadors.ning.
com/) will host a webinar on August 23 the USDA's Rural Economic Development Energy Efficiency Effort. Register at https://cc.readytalk.com/r/hmxz86da07q1 if you're interested.

City of Homer Sewer Treatment Plant Winner of Great Alaska Energy Challenge
In May 2012 the facility received the Renewable Energy Alaska Project award for biggest reduction in electricity usage, having cut energy use by nearly one sixth, saving enough electricity to power over eight homes in one year!

Special Alaska Electric & Energy Cooperative Board Meeting

Special Alaska Electric & Energy Cooperative Board Meeting
9:00 AM
Friday, June 29, 2012
Kenai HEA Board Room (video conferencing from Homer offices)

This special meeting of HEA's generation and transmission arm was called to discuss and vote on approval of a contract for the Soldotna power plant construction, Phase 3 (Combustion Turbine Installation). The meeting is expected to last 30-45 minutes with the bulk of it in Executive Session.  

HEA/AEEC Meetings Tuesday, December 13, 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

Warning: On the meeting calendar page of the HEA website when you "hover" the cursor over a meeting title an incorrect time is displayed. For example, 9:00 AM will be shown as the Operations Committee starting time. Click on the meeting title to get the right time.

Location: Meetings take place in the Kenai Offices at 280 Airport Way. Video conferencing is available in the Homer Offices at 3977 Lake Street, 907-235-8551. Draft agendas should be available prior to meetings on the HEA website at http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/220/Default.aspx

. There are sometimes last minute changes in scheduling, so check the website.

Your HEA Account Number is Being Changed
To accommodate the growing number of HEA members all account numbers will gain an additional digit. For example, if your account number was 12345-01 it will now be 12345-001. Check your next HEA statement for your new number and be sure to use it when referring to your account. Don't forget to notify your bank or other bill pay service of the change too. Contact HEA Member Services if you have questions (907-283-5831, 907-235-8551, 800-478-8551).

AEEC Meeting Minutes Now Available
The Alaska Electric & Energy Cooperative, Inc. is HEA's generation and transmission arm. HEA and AEEC Directors are the same people. Most of the major expenses for the Independent Light project have been incurred in the name of AEEC. While HEA Board meeting minutes have been posted for some time, AEEC meeting minutes were not available until now. HEA Members Forum has encouraged HEA staff and Board to post these and other information about AEEC for at least two years. Unfortunately, the minutes do not reflect how individual Directors have voted on various resolutions or include copies of those documents. Without such it is difficult for HEA members to evaluate Director performance but one can at lease get a sense of what transpired and when specific decisions were made. So, Kudos to Directors Debbie Debnam and Jim Levine for helping HEA take this step toward somewhat greater transparency. Go to http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/AEECMinutes/tabid/302/Default.aspx for the minutes.

Monthly HEA Manager's Reports
Remember that you can download copies of Brad Janorschke's short monthly summary of recent coop developments and actions.  Each report serves as the core of an update presented to Directors at the monthly HEA/AEEC meetings. While not as detailed as the in-person reports, website versions provide some useful information for any HEA member interested in tracking what management has to say about the coop. Go to http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/ManagersReports/tabid/222/Default.aspx and click on the date of the report(s) you want.

New HEA Rate Plan Coming January 1
There will be a single energy rate for all residential members with a new 150 kWh minimum charge and the present $11 per month customer charge will increase to $15.  The HEA billing system may not be ready by then to accommodate the new minimum energy charge. In that case HEA will request a waiver from the Regulatory Commission of Alaska to postpone adding the energy minimum until billing software upgrades are completed.
           
Grant Lake/ Grant Creek Hydroelectric Project
Over the last four years HEA members have been pressing the coop to add renewable technology options to our energy "portfolio." HEA management and engineers have not appeared overly eager, however, dragging their feet particularly hard with respect to wind power.  The controversial Grant Lake/Grant Creek small hydro project is HEA's first serious effort to respond to member desire for renewable energy. The project has been in the news quite a bit -- especially in recent months. Field studies must continue through 2012 and until they are completed a construction license application can't be submitted to the Federal Energy Regulatory Commission (FERC). Nonetheless, Kenai Hydro (HEA) recently submitted a grant request to the Alaska Energy Authority for construction money. That strikes some HEA members as proof that management plans to proceed with the project regardless of what the study data indicates. General Manager Brad Janorschke claims that nothing could be farther from the truth. In a September newspaper opinion piece he stated that, "If the studies show that there would be a serious impact to the overall health of the Kenai River watershed, HEA will not proceed with the project." Critics of the project find that difficult to believe, given the request to AEA for construction funds. And many feel the FERC permitting process is more about enabling projects than actually evaluating them on their merits. 

While HEA members seem to want our coop to embrace renewable technology it's probably not just for the bragging rights. Most likely they want to see renewable projects make economic, social, and environmental sense. If built, will the Grant Lake project ultimately prove harmful to the Kenai River watershed ecosystem and the economy of the surrounding area? Or can the project be designed, built, and operated so it doesn't cause undue harm? And either way, will the ultimate cost per kWh be competitive with other options? If you don't know enough about this project to have an opinion why not do a little reading? Then let your HEA Board know how you feel.

Get information and the HEA management perspective.
http://www.kenaihydro.com/index.php or contact Mike Salzetti at 283-2375.

Learn about the Federal Energy Regulatory Commission
(it's mission, and the licensing process)
http://www.ferc.gov/

Get more information and the skeptics' perspective.
Resurrection Bay Conservation Alliance
http://www.rbca-alaska.org/page8/page24/page24.html

Alaska Center For the Environment
http://akcenter.org/forests-and-wildlife/chugach/kenai-hydro

Hydropower Reform Coalition
http://www.hydroreform.org/

Dec. 7 Wind Power in AK Forum

Fire Island, Kodiak & More

6-8pm * Anchorage Museum * 625 C Street * FREE Live Podcast: www1.gotomeeting.com/register/287610025  Presenters: Darron Scott, CEO of Kodiak Electric Association Suzanne Gibson, CIRI Sr. Energy Development Director Rich Stromberg, Alaska Energy Authority Wind Program Manager More info: www.REalaska.org, 907.929.7770

HEA Members Forum Update

THERE WILL BE A SPECIAL MEETING OF THE HEA BOARD OF DIRECTORS

THURSDAY, AUGUST 25, 2011  at 10:00 a.m.

Notice is hereby given that a Special Meeting of the Board of Directors of Homer Electric Association, Inc., pursuant to Article V, Sections 2, 3, and 6 of the Homer Electric bylaws, will be held at 10:00 a.m. on Thursday, August 25, 2011 at 280 Airport Way, Kenai, Alaska. The purpose of the meeting is to consider authorizing the General Manager to proceed in the application process to seek grant funding for the Kenai Hydro, LLC Hydroelectric Dam Project.

Video conferencing will be available in the Homer Offices at 3977 Lake Street, 907-235-8551.

Information and perspective on this project is available on these websites:


http://www.kenaihydro.com/index.php

http://akcenter.org/forests-and-wildlife/chugach/kenai-hydro

An Invitation from HEA Members Forum

Please join us for

Human Rights vs. CORPORATE PRIVILEGE
A discussion of Corporate Personhood and the end of American Democracy

Tuesday April 26
6:00-8:00pm
355 West Pioneer Avenue, Homer Alaska

The underlying problem is that corporations, in addition to having all of the rights of people, have rights people don't have - such as incredibly favorable tax laws and limited liability. The combination of these rights has made the corporations more powerful than We The People.

Gershon Cohen
Featured Speaker and Co- founder of Earth Island Institute’s Ultimate Civics Project

For more information contact: Rob Rosenfeld, (907)388-2683 or (907)235-7528, robrosey@gmail.com

HEA Members Forum Update

2011 Annual HEA Meeting of the Members
Thursday, May 5 at Soldotna High School
Registration 4:30 PM - 6:30 PM, Membership Meeting Starts 6:00 PM

Other May HEA/AEEC Meetings will take place at the 
Homer Offices, 3977 Lake Street.
Video conferencing is available in the Kenai Offices at 280 Airport Way.

Tuesday, May 10, 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

Agendas are usually available the day before meetings. There are sometimes last minute changes in the meeting schedule. Check for updates and draft agendas on the HEA website at http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/220/Default.aspx.

2011 HEA Board Elections -- Don't Forget to Vote

District 1: incumbent David Thomas of Kenai

District 2: Dick Waisanen of Soldotna
District 3: Malcolm Gaylord of Homer

HEA must receive mail-in ballots by 4:00 PM, May 4. Members may vote in person at the May 5 Annual Meeting at the Soldotna High School but will need to register there. You can only vote for a candidate in the district where you live.

Rate Decoupling and Energy Efficiency and Conservation Programs Technical Conference
April 19 &20, 9:00 a.m. to 4:00 p.m.
East Hearing Room of the Regulatory Commission of Alaska
701 West Eighth Avenue, Suite 300, Anchorage, Alaska 99501

This technical conference will feature a presentation on the topics of rate decoupling and energy efficiency and conservation programs by Richard Sedano, a Principal and Director of The Regulatory Assistance Project. The presentation on rate decoupling is tentatively scheduled for Tuesday, April 19th, with the presentation on energy efficiency and conservation programs to follow on Wednesday, April 20th. Any entity interested in reviewing transcripts of this technical conference may consult the Commission’s website at http://rca.alaska.gov and type in Docket “I-11-004” in the Find a Matter search box.

Don't Forget the 2011 Business of Clean Energy in Alaska Conference
April 28 & 29 at the Dena'ina Center in Anchorage
For more information, go to www.BCEAconference.com, or contact Renewable Energy Alaska Project (REAP) at info@realaska.org or 907-929-7770.

Regulatory Commission of Alaska Adopts Revised Net Metering Interconnection Rules
Draft rules from January 2011 (RCA Docket R-09-02) were slightly modified to resolve potential conflicts between utility and customer over an "external disconnect switch." In general, these regulations appear to be reasonable and should not impose unnecessary expense to HEA members who wish to participate in net metering. The regulations go to the Department of Law for review but should be finalized without major change by May 5, 2011.

Regulatory Commission of Alaska Reauthorized -- But Only for 2 Years
The Alaska Senate passed HB 24 on April 17, 2011 by unanimous vote, extending the RCA through June 2013. The Senate modified language in HB 24 to require the RCA to provide the Legislature with a proposal to "reduce the statutory timeline for tariff filings that change a utility's revenue requirement or rate design." This must be done by January 17, 2012. Clearly this is a result of utility lobbying to make it easier and faster to increase your rates.

Independent Light $$
A Groundbreaking Ceremony is slated for the Nikiski Combined Cycle Conversion (NCCC) Project April 28, 2011, at 10:00 a.m. At the ceremony, HEA will announce the award of the project contractor and will offer Nikiski Plant tours for anyone interested. If you are interested in attending but don't receive an invitation, contact Joe Gallagher at jgallagher@homerelectric.com.

Cook Inlet Tidal Power
Ocean Renewable Power Company (ORPC) and Homer Electric Association (HEA) announced plans to collaborate on a hydrokinetic power pilot project near the East Forelands. ORPC has been developing unique tidal power systems and projects since 2004. ORPC has a preliminary permit from the Federal Energy Regulatory Commission (FERC) that allows three years to carry out studies and then submit a license application for an actual pilot project of up to 5 megawatts (HEA’s average load is currently 60 megawatts). It's possible that one or more 150-kilowatt generators could be deployed for testing in the inlet as early as 2013. HEA and ORPC are attempting to draft a Letter of Intent which defines the project scope and responsibilities.

HEA Rate Plan
The RCA has granted Land’s End Acquisition Corporation (LEAC) request to intervene in hearings on HEA's plan to restructure electric rates. Remember, the biggest sticking point is the proposed "minimum energy charge" which seems to be in conflict with Alaska Administrative Code. The RCA requested that previous hearing dates be changed to accommodate the Commission’s schedule. Intervening parties, the Attorney General’s Office (RAPA), and HEA have presented a mutually agreed upon revised hearing schedule for RCA consideration. The proposed final hearing would be during the week of September 26th. HEA is waiting for RAPA to reply to its legal brief on the proposed minimum energy charge.

"Watt’s New" -- From HEA
This is a new email public relations effort to deliver up-to-date news to members. It will encourage members to visit the HEA website where more detailed information can be found. The first “Watt’s New” blitz was sent to 7,900 members on April 1 and will be disseminated at least once a month -- more frequently depending on HEA events. It seems like a good idea. Contact Sandra at sghromley@homerelectric.com or 907-283-5831 if you're interested in signing on.

HEAMF Election Update

HEA Board of Directors Election Ballots will be mailed to members on Friday.  Your vte is vitally important.  We believe these superior candidates deserve your support:

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)

HEA Members Forum Update

Alaska Energy Authority Susitna Dam Public Meeting
Tuesday March 15, 2011
Challenger Learning Center, 9711 Kenai Spur Highway
Open house at  5:30 PM Presentation at 6:00 PM

The Parnell Administration has made the Susitna project a priority and the House Energy Committee already moved HB 103 in support of it. If passed into law, HB 103 would reauthorize the AEA to pursue another large hydroelectric project, much as was done with Bradley Lake. A Susitna Dam project might help meet railbelt energy needs but there are legitimate concerns about its potential to harm fisheries and disrupt both aquatic and terrestrial habitat.  These concerns need to be carefully evaluated and addressed before the project is authorized. This is a chance to learn more about the project and associated issues. For two views of Susitna got to http://www.akenergyauthority.org/SusitnaReports.html and
http://akcenter.org/climate-energy/susitna-hydroelectric-project.

Cook Inlet Tidal Power
Tuesday March 22, 2011
10:00 AM-11:30 AM, Cook Inlet Aquaculture Building, 40610 Kalifornsky Beach Road, Kenai
12 Noon - 4:00 PM Homer Electric Association Board Room, 280 Airport Way, Kenai
(you can also via video conference from Homer HEA offices at 3977 Lake Street)

Ocean Renewable Power Co. has applied to the Federal Energy Regulatory Commission for a license to pilot test a tidal power system in Cook Inlet. Learn more about this and the potential of tidal power to offset our reliance on natural gas to generate electricity.

April HEA/AEEC Meetings
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, April 5, 2011 (tentative)            

2:00 PM -- Operations and Special Projects

Tuesday, April 12, 2011 

1:00 PM -- Finance Committee
3:00 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting

Agendas are usually available the day before meetings. There are sometimes last minute changes in the meeting schedule. Check for updates and draft agendas on the HEA website at http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/220/Default.aspx.

2011 HEA Board Elections
Six candidates will be on the ballot for the Homer Electric Association Board of Directors 2011 election.
District 1: incumbent David Thomas of Kenai and Kelly Bookey of Kenai.
District 2: incumbent Tim Evans of Soldotna and Dick Waisanen of Soldotna.
District 3: incumbent Mike Wiley of Clam Gulch and Malcolm Gaylord of Homer.

Ballots will be mailed to you on April 1. HEA must receive your completed mail-in ballot by May 4, or you may vote at the May 5 Annual Meeting at the Soldotna High School. You can only vote for a candidate in the district where you live. District boundaries were changed recently -- maps are available on-line at www.homerelectric.com/Board of Directors & Elections/District Map.

Electric Rates Up 21%
HEA has requested Regulatory Commission of Alaska approval of a 3.3 cent per kWh increase in the Wholesale Power Cost Rate Adjustment (WPCRA) as of April 1. HEA’s "blended rate" will jump from 15.5 cents per kWh to 18.8 cents per kWh, a significant increase for all ratepayers. The blended rate is a combination of HEA's energy charge and the WPCRA (what HEA has to pay Chugach Electric Association for energy). According to HEA the average customer’s monthly bill (630 kWh) will increase by $20.84. That's about $250 per year! This is another clear message that we need to make a serious effort to reduce our dependency on natural gas by focusing on boosting energy efficiency/conservation and increasing our use of renewable energy technology.

Independent Light $$
How will Independent Light affect electric rates? HEA members are not yet paying for the cost of upgrading the Nikiski generation plant and substation, or adding a new gas generation plant at Soldotna. We have taken on $180 million in new debt to pay for these upgrades. When these facilities come on line electric rates will be increased in order to start paying down the debt. Prior to the present 3.3 cent per kWh rate increase HEA Director Brad Janorschke had estimated that members could then see rates in the neighborhood of 22 to 24 cents per kWh. What can we expect now?

Work at Independent Light project sites is progressing as planned. Several resolutions authorizing various purchases and contracts were approved at the March 8 HEA/AEEC meetings. See the Manager's Report and meeting agendas on the HEA website for details.

Line Extension Policy Under Review
HEA Directors heard a report from staff recommending changes in the present line extension policy. The upshot is that HEA has been losing a significant amount of money each year. When customers connect to new construction or to a subdivision they typically pay about 40% of the cost. HEA absorbs the other 60%. There are many factors involved and situations vary a lot so there isn't room here to discuss everything. From what staff had to say, this arrangement would not be a problem if new extensions all terminated in an active meter. Unfortunately in a growing number of cases, especially subdivision "backbones," no power is being used following line extension. Consequently, HEA does not recover the 60% capital investment. Staff suggests making several changes to address this problem: set a maximum amount HEA can pay on any line extension to new construction; establish a minimum $500 customer contribution toward the line extension; develop incentives for new continuous use services; eliminate incentives for line extensions to empty lots and subdivision "backbones;" shift all line extension clearing and surveying costs to the customer. The HEA Board deferred action pending further study but will probably take it up again at the April meetings.      

HEA/AEEC Audit Report
The 2010 Audit Report was presented at the March 8 meetings and Resolution 45.2011.11 accepting it was passed unanimously. Auditors had high praise for the coop's financial staff and their procedures, finding no significant flaws. When asked how HEA members could obtain a copy of the report, HEA Board President Debbie Debnam said she would make sure it was posted on the HEA website.

Reply to Net Metering Interconnection Rules Comments by March 16
Read comments that were submitted and all related documents at http://rca.alaska.gov/RCAWeb/Dockets/DocketDetails.aspx?id=5934c996-b30f-4563-b7e9-956f240fd746. Any replies to these comments you might have can still be submitted at this RCA website  address through Wednesday, March 16.

Support the Regulatory Commission of Alaska (RCA)
Wednesday March 16, 2011 House Labor and Commerce Committee Hearing at 3:15 PM
The hearing is scheduled for teleconference -- check your Legislative Information Office:
Homer LIO at 345 West Sterling Highway, 235-7878
Kenai LIO at 145 Main St Lp, Ste 217, 283-2030

The RCA looks out for utility ratepayer interests but is scheduled to terminate on June 30, 2011 unless the present Alaska Legislature votes to keep it going. Attend the hearing or contact Legislators in support of HB 24 (Extend Regulatory Commission of Alaska Sunset).

Labor & Commerce Committee
Chairman: Representative_Kurt_Olson(email @)legis.state.ak.us
Vice-Chair: Representative_Craig_Johnson(email @)legis.state.ak.us

HEA Members Forum Update

February HEA/AEEC Meetings

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, February 1, 2011 (tentative)            

2:00 PM -- Operations and Special Projects

Tuesday, February 8, 2011 

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.

2011 HEA Board Elections
The HEA Board election season is coming. The application period for candidates usually starts in February and runs through the first week in March (the 5th, last year). Ballots go out to members about a week after that and can be returned through early May. This year David Thomas (District 1), Tim Evans (District 2), and Mike Wiley (District 3) must run if they want to stay on the HEA Board. In preparation HEA Resolutions 45.2011.02 (Appointment of Election Committee) and 45.2011.03 (Voting Eligibility Record Date) were passed at the January 18 HEA/AEEC meetings. There was some discussion of the the need to prepare ballot Initiatives for HEA members to vote on. Apparently certain bylaws changes sought by the Board must be approved by the general HEA membership. further discussion was moved to the February meetings -- more detail on this will follow then.

Now is the time for you to be thinking about how satisfied you are with your district’s HEA Director. Would you like to see him continue on the Board for another 3 year term or would you prefer to elect someone new? Maybe you would even like to run yourself.

HEA/AEEC Proposed Rate Plan -- HEA reply
Since the RCA suspended the HEA/AEEC request for approval of the plan (Order U-10-97, Order No. 1), the cooperative has submitted a 19 page brief in defense of the minimum energy charge. In part it argues that if, as stated by the RCA suspension order, the minimum energy charge is in conflict with Alaska Administrative Code 3 AAC 48.805 the RCA should waive requirements that the new rate plan comply. If you want more detail, this and related documents are available on the RCA website at http://rca.alaska.gov/RCAWeb/Entity/EntityDetails.aspx?id=883fd287-5437-45c3-ac93-6611db2d87b0.

Independent Light $$
There have been no significant developments since our January 6 HEAMF update. Alaska Energy & Electric Cooperative Resolution 01.2011.01 (Approval of Construction Work Plan) was passed at the January 18 HEA/AEEC meetings. Most of the plan's $200 million expense is for the Independent Light project ($180 million). The remaining $10 million is primarily for work on Sterling and Bernice Lake substations. AEEC Resolutions 01.2011.02 and 01.2011.03 amending HEA/AEEC loans and agreements with the National Rural Utilities Cooperative were passed. These are technical changes needed to accommodate a drop in “margins” expected during construction of Independent Light facilities (margin is the difference between an electric  cooperative’s costs and revenues).
  
New Regional Generation and Transmission Coop
HEA/AEEC joined Chugach Electric Association, Matanuska Electric Association, Golden Valley Electric Association, and the City of Seward to form the Alaska Railbelt Cooperative Transmission and Energy Cooperative (ARCTEC). Anchorage Municipal Light and Power declined to participate. The Members Forum has long supported greater cooperation between railbelt utilities. Articles of incorporation were filed with the Division of Corporations, business and Professional Licensing (http://www.commerce.state.ak.us/occ/) on December 23, 2010. ARCTEC is an outgrowth of the Greater Railbelt Energy and Transmission Corporation (GRETC) legislation which failed last year. The objective is to have a mechanism to cooperatively pursue projects that are just too large and costly for a single utility. According to HEA manager Brad Janorschke, there will be a strong emphasis on developing large scale renewable energy sources such as geothermal, hydroelectric, and tidal projects. ARCTEC bylaws are presently being developed. HEA Resolution 45.2011.01 (Appointment of ARCTEC Representatives -- Debbie Debnam and Brad Janorschke) was passed at the January 18 HEA/AEEC meetings.

Grant Lake Small Hydro Project
According to General Manager Janorschke the Alaska Energy Authority has approved $1.1 million of a $1.5 million HEA/AEEC grant request for the Grant lake project. He cautioned the Board that this must also be approved by the Legislature, so it’s not a “done deal” yet. This money would help offset ongoing field studies and permit application efforts. The project continues to be very controversial among Moose Pass residents and some HEA members.

Cook Inlet Tidal Power Pilot Project
According to HEA General Manager Brad Janorschke, a hydrokinetic energy company contacted HEA about possible partnership in some kind of pilot project. This could be some place near the Forelands. The company also appears interested in tidal prospects around Kachemak Bay. Janorschke says he was told they would be in touch again soon with some kind of specific plan.  

AKPIRG Utility Work
The Alaska Public Interest Research Group (AKPIRG) is taking an interest in utility consumer affairs and has recently hired a young woman named Kathleen Cogan to work with railbelt ratepayers. A main main part of her work will involve helping utility ratepayers from Golden Valley Electric Association to Homer Electric Association elect or reelect good people to the utility Boards. Kathleen works out of the Anchorage AKPIRG office but will travel to other railbelt communities on a regular basis. She will visit Homer this week where she can be reached at the Cook Inetkeeper offices.

Better Record Keeping ?
At the January 18 HEA/AEEC meetings Mike Wiley continued to press for more detailed meeting minutes. David Thomas expressed concern that putting too much detail into the minutes could be counterproductive. He especially doesn’t think various Directors’ comments prior to voting on resolutions should be included. While many Directors express resistance to putting specifics in the minutes, Jim Levine agreed with Mike Wiley and moved that, at the very least, topics of comments made by HEA members attending meetings should be noted in minutes. The motion was passed.

Fewer Secrets, At Least
HEA resolution 45.2011.04 (Approval of the 2011 Equity Management Plan) was approved at the January 18 HEA/AEEC meetings. HEA/AEEC filed a petition with the Regulatory Commission of Alaska in November to classify it’s 2010 Equity Management Plan confidential. In December the RCA denied that petition (U-10-85, Order No. 2). According to General Manager Janorschke the Commission will now probably require a copy of the EMP be provided for interested members of the public with only legitimately sensitive information redacted. Hopefully this will also apply to the 2011 EMP. 

This Week's HEA/AEEC Meetings

These meetings will take place in Kenai at the Central Peninsula Offices, 280 Airport Way.

Tuesday, September 14, 2010
9:00 AM -- Operations and Special Projects
1:00 PM -- Finance Committee
3:30 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting

Download draft agendas at http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/220/Default.aspx.
Video conferencing is available in the Homer Offices at 3977 Lake Street.

Next Week's Area Meetings
The proposed new rate structure will be the main focus of the General Manager's presentation.

Anchor Point, 5:30 PM, Monday September 27, Chapman School
Kasilof, 5:30 PM, Tuesday September 28, Tustumena School
Sterling, 5:30 PM, Wednesday September 29, Senior Center
Nikisiki, 5:30 PM, Thursday September 30, Community Center

These meetings are typically a venue for HEA management to express it's point of view in a controlled situation, absent divergent outlooks. Free food and the promise of drawing prizes seem to be uppermost in attending HEA members' minds. Nonetheless, it is an opportunity for you to raise questions and express your own opinions regarding any HEA issue.

August HEA Meeting Schedule

All meetings will take place in the Board room of the HEA offices in Homer at 3977 Lake Street. Video conferencing is available at the HEA offices in Kenai at 280 Airport Way. Meeting agendas can be found on the HEA website at http://www.homerelectric.com/. Contact Joe Gallagher at jgallagher (email at) homerelectric.com or 907-283-2324 for more information.

Tuesday, August 17, 2010
10:00 AM -- HEA Operations Committee Meeting
12:30 PM -- HEA Finacne Committee Meeting
3:00 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting

Wednesday, August 18, 2010
9:00 AM Final Ratemaking Presentation by Consulting Firm RW Beck

HEA Members Forum Update

HEA Plans Rate Structure Change
Every HEA member has a big stake in this ratemaking process. The outcome will affect the finances of Kenai Peninsula families and businesses for the foreseeable future. Electric rates will increase. They jump two percent this October. They're expected to reach 20-25 cents per kWh by 2014. A new rate structure probably can’t prevent that but HEA members should be wondering just what it might do.

Can it be fair to all classes of ratepayers (residential, commercial, industrial) in all areas?
What will it mean for low wage workers and people on fixed incomes?
Will it promote energy efficiency and conservation?
Can it do anything to stabilize electric rates?
Will it be easy for HEA members to understand?

Attend the Ratemaking Workshop on Wednesday, August 18
Come to the HEA Homer Board Room at 9:00 AM -- video conferencing available at Kenai HEA offices for central peninsula members. This will be the last opportunity for you to learn more about three potential residential rate options under consideration:

1. Raise the present $11.00 per month residential customer charge to around $90.00 (the estimated monthly cost to HEA to provide service) and lower the per kWh energy charge.

2. Raise the $11.00 customer charge to $15.00 and increase the per kWh energy charge.

3. Raise the $11.00 customer charge to $15.00 and require a minimum monthly energy payment based upon 300 kWh of electricity ($36.26). All residential customers would then pay at least $52 per month.

Those options are at the core of this process but only reflect part of the background discussion. For example, there is the issue of basic kWh rate design -- should it be uniform or variable based upon differing levels of consumption, peak vs. off-peak use, summer vs. winter? There are other issues too but no space for discussion here.

Now is the Time to Get Involved
A draft rate plan is expected by the end of this month. The plan will be presented to members at September HEA regional meetings. By then the opportunity for input will be limited -- final rate design will be adopted in October. If you want to help determine how the final plan looks, go to the HEA website (http://www.homerelectric.com/) and read Rate Design: Making It Fair and Promoting Conservation. Try to attend the August 17 HEA Board meeting. Participate in the August 18 ratemaking workshop. Ask questions, explain your priorities, and make suggestions.


BASICS OF ELECTRIC UTILITY RATEMAKING
Electric utility rates include two basic charges, one for recovering “fixed costs” and the other for recovering “variable costs.” For this discussion let’s ignore the taxes and surcharges typically tacked on to your electric bill.

Fixed Costs
These include expenses the utility incurs by just having a customer tied into the system -- wire, poles, buildings and everything needed to provide basic service. These costs have nothing to do with how much or how little energy a customer uses and do not fluctuate.

Variable Costs
These include expenses the utility incurs for equipment, over and above the basics, required by high demand customers and for acquiring the energy it distributes to us. These costs vary depending upon how “big” a service capacity is installed for the customer and how much energy is consumed each month.

Utilities generally consider it good policy to recover fixed costs through fixed charges (the “customer charge”) and variable costs through variable charges (the “energy charge” or “per kWh” charges).

Kenai Hydro Concerns

HEA Members form participants favor renewable energy projects and encourage our coop to investigate as many potential options as possible. For most of us, however, that does not mean blanket approval of any renewable energy project regardless of its social, economic, or environmental consequences. Many questions were raised about possible negative affect to Kenai River and it's wider watershed from several small hydroelectric projects proposed by HEA known as Kenai Hydro. Preliminary studies confirmed significant problems for all except the Grant Lake project. To HEA's credit, efforts to move forward those projects were dropped. Now, however, HEA has decided to press on with Grant Lake. The Alaska Center for the Environment, Kenai Watershed Forum, and Friends of Cooper Landing contend that the Grant Lake project proffers the same problems as the discontinued projects and should also be abandoned. HEAMF was contacted and asked to circulate the information below and attached.

HEA Management has been silent regarding this project recently, ostensibly lacking funds to proceed. The sudden effort to move forward on a fast rack came as a surprise to many stakeholders. While HEAMF has not taken a pro or con position with regard to Grant Lake, it is important that the issues surrounding it receive serious consideration well in advance any decision to develop. As an HEA member, you deserve to have an opportunity to understand and weigh in on these issues.

"Keep the Kenai River Wild"

Homer Electric Association is moving forward with plans to put a dam on Grant Lake, a tributary of the Kenai River. The plans call for 3.5 miles of new roads and transmission lines, a 10 foot by 120 foot long dam, a 110 foot high surgetank, penstock and powerhouse. Grant Lake would be flooded and the water flow in Grant Creek would be interrupted. The cost of construction is estimated at 27 million dollars. Alaska Center for the Environment believes that the costs of losing fish habitat in one of Alaska’s favorite and most productive local watersheds is too high of a price to pay for the insignificant amount of power which will be generated as a result of this project. Grant Creek supports anadromous fish species including Chinook, sockeye and Coho salmon as well as resident species including rainbow trout and Dolly Varden. The Kenai River system supports 34 species of anadromous and resident fish.

What Can You Do?
Please attend the FERC Scoping Meeting and Environmental Site Review. The meeting will take place in Moose Pass on June 2, at 7 PM at the Moose Pass Community Hall. It is the only opportunity to meet with Federal Energy Regulatory Commission officials. Laws require the Commission to independently evaluate the environmental effects of issuing an original license for the Grant Lake Project as proposed, and to consider reasonable alternatives to the applicant’s proposal. FERC is seeking information about the possible impacts this project could have. These could include impacts to water quality and quantity, fish and wildlife resources, cultural, recreational, aesthetic and economic impacts, land use, geologic, soil and other terrestrial resources.

Sign petition opposing the dam by visiting:

www.ipetitions.com/petition/keep_the_kenai_wild/

Submit scoping comments to FERC: (due July 6^th, 2010)

*For more information about the process: http://www.kenaihydro.com/documents/GrantLake_Scoping1.pdf

HEAMF Call in Reminder

DON'T FORGET!!! CALL THE COFFEE TABLE PROGRAM
KBBI/KDLL this Wednesday, May 19 at 9:00 AM

The focus will be all things HEA with guests HEA General Manager Brad Janorschke and Public Relations Coordinator Joe Gallagher.

Call 235-7721 on the southern peninsula, 1-800-979-7405 from elsewhere.

ASK QUESTIONS
TELL THEM WHAT YOU WANT AS AN HEA MEMBER

1. ANTI-COOPERATIVE PRACTICES
Why were HEA members excluded from the planning of the Independent Light project?

Shouldn’t the HEA membership be given a chance to approve, modify, or reject this historic change?

Shouldn’t HEA members have more opportunities for planning and approving or rejecting other proposed projects such as small hydroelectric and wind?

Was the Alaska Electric and Energy Cooperative (AEEC) formed with approval of the HEA membership or simply by the HEA Board and staff?

2. ALASKA ELECTRIC & ENERGY COOPERATIVE (AEEC)
Is it true that HEA members are not also AEEC members? Who is an AEEC member?

Who runs AEEC?

Who is AEEC responsible to?

Does the HEA Tariff also apply to AEEC or does it have it’s own?

3. LEVEL OF DEBT
Is it true that the combined HEA/AEEC debt is or soon will be at $339 million.

Is it true that AEEC is not bound by the $450 million HEA debt cap and has no such limit of its own?

Will $180 million cover all elements of the Independent Light project or will additional debt be required? If more, how much?

How will payment toward interest and debt retirement affect electric rates?

4. INDEPENDENT LIGHT AND OTHER PROJECTS
HEA management asserts that “studies indicate that the cost for HEA to own and operate the new assets will be about the same (perhaps slightly lower) as paying another utility for wholesale power.” Where can HEA members review these studies?

Even though the decision was made without their input, most HEA members seem to support upgrading the Nikiski plant. However, many question the wisdom of buying new gas turbines for Soldotna as the best way to meet peaking, reserve, and contingency demand. Would you be willing to bring the wider HEA membership into the decision process now?

If we invest hundreds of millions in Nikiski AND new gas turbines to meet ALL base load, peak, and emergency demands how will we afford to buy significant amounts of renewable energy as new projects come on line?

The Legislature appropriated $7 million to fund a 5 MW reciprocating generator or a battery bank to allow HEA to integrate the 14.4 MW of power from the Kenai Winds project into the existing grid. Why won’t that solve the problem of “following” this intermittent source of energy?

HEAMF Action Alert

CALL THE COFFEE TABLE PROGRAM
KBBI/KDLL this Wednesday, May 19 at 9:00 AM

The focus will be all things HEA with guests HEA General Manager Brad Janorschke and Public Relations Coordinator Joe Gallagher.

Call 235-7721 on the southern peninsula, 1-800-979-7405 from elsewhere.

ASK QUESTIONS
GIVE YOUR PERSPECTIVE AS AN HEA MEMBER

While there are many issues affecting rates, quality of service, and other HEA member interests, four are particularly obvious right now:

1. ANTI-COOPERATIVE PRACTICES
2. ALASKA ELECTRIC & ENERGY COOPERATIVE (AEEC)
3. LEVEL OF DEBT
4. INDEPENDENT LIGHT AND OTHER PROJECTS

Want ideas for questions?
Look below (in italics) under each of the four topics, along with a little background information on each.

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ANTI-COOPERATIVE PRACTICES
Questions:
Why were HEA members excluded from the planning of the Independent Light project?

Shouldn’t the HEA membership be given a chance to approve, modify, or reject this historic change?

Shouldn’t HEA members have more opportunities for planning and approving or rejecting other proposed projects such as small hydroelectric and wind?

Was the Alaska Electric and Energy Cooperative (AEEC) formed with approval of the HEA membership or simply by the HEA Board and staff?

Background:
The Seven Guiding Cooperative Principles All rural electric cooperatives, including HEA, are supposed to adhere to these principles. Two are of particular interest here:

“Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. The elected representatives are accountable to the membership.”

“While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.”

With Independent Light HEA has embarked upon the largest, most costly change in its history -- transformation from a simple distribution cooperative to a generation and transmission utility. HEA members remain out of the loop.

The development of and decision to move forward with Independent Light was made exclusively by the HEA management and Board of Directors. The General Manager was authorized to do so on June 24, 2008. A July 9, 2008 press release sketched a general plan. Members were provided little other information until a January 12, 2010 press release describing the complete plan. You were not invited to review and comment on the plan at any point. There was never a vote by the membership to accept Independent Light. This was true for its predecessor, the Healy coal plant plan, and is true for present small hydro and wind proposals.

All generation and transmission projects now take place under the Alaska Electric and Energy Cooperative (AEEC). It is unclear whether or not the general HEA membership voted to approve its formation in 2001.

ALASKA ELECTRIC & ENERGY COOPERATIVE (AEEC)
Questions:
Is it true that HEA members are not also AEEC members? Who is an AEEC member?

Who runs AEEC?

Who is AEEC responsible to?

Does the HEA Tariff also apply to AEEC or does it have it’s own?

Background:
There are many unknowns regarding AEEC. One thing IS clear -- HEA members have no standing. According to HEA staff and Directors, AEEC was formed in 2001 to allow funds to be borrowed at a lower rate of interest. It is a separate generation and transmission cooperative and HEA is the only member. AEEC bylaws do not indicate a limit on how much money it can borrow or spend. In recent months it has authorized borrowing $205 million. AEEC passes all expenses on to it’s one member/customer, HEA. HEA then charges us through our electric rates. Even though the two cooperatives are legally separate entities, HEA Directors also serve as AEEC Directors and HEA staff is tasked with AEEC work. All Alaska utilities operate under a set of rules outlined in a “Tariff “ filed with the Regulatory Commission of Alaska (RCA). It is unclear whether or not AEEC is also covered by the HEA Tariff.

LEVEL OF DEBT
Questions:
Is it true that the combined HEA/AEEC debt is or soon will be at $339 million.

Is it true that AEEC is not bound by the $450 million HEA debt cap and has no such limit of its own?

Will $180 million cover all elements of the Independent Light project or will additional debt be required? If more, how much?

How will payment toward interest and debt retirement affect electric rates?

Background:
According to HEA General Manager Brad Janorschke, the 2009 year end financial audit showed the debt to be $121 million HEA and $38 million for AEEC. In a May 3, 2010 e-mail he stated that when combined with all recently authorized new loans it would bring the total debt burden to $339 million. Bear in mind that only the $121 million in HEA debt counts against the $450 million debt cap. In HEA/AEEC meetings last year, HEA Director of Finance stated that present loans carried a fluctuating interest rate which was at about 4.75 percent at the time.

INDEPENDENT LIGHT AND OTHER PROJECTS
Questions:
HEA management asserts that “studies indicate that the cost for HEA to own and operate the new assets will be about the same (perhaps slightly lower) as paying another utility for wholesale power.” Where can HEA members review these studies?

Even though the decision was made without their input, most HEA members seem to support upgrading the Nikiski plant. However, many question the wisdom of buying new gas turbines for Soldotna as the best way to meet peaking, reserve, and contingency demand. Would you be willing to bring the wider HEA membership into the decision process now?

If we invest hundreds of millions in Nikiski AND new gas turbines to meet ALL base load, peak, and emergency demands what incentive how will we afford to buy significant amounts of renewable energy as new projects projects come on line?

The Legislature appropriated $7 million to fund a 5 MW reciprocating generator or a battery bank to allow HEA to integrate the 14.4 MW of power from the Kenai Winds project into the existing grid. Why won’t that solve the problem of “following” this intermittent source of energy?

Background:
HEA management outlines two phases for Independent Light. We are already committed to the first -- adding a steam turbine to the Nikiski gas plant and associated upgrades to the Nikiski substation. This is intended to meet the needs of so-called “base load and intermediate generation.” The second phase involves acquisition of energy for so-called peaking, reserve, and contingency demand. Three options are suggested by HEA management -- build new gas generators in Soldatna, purchase energy from other producers, buy existing generation facilities from Chugach Electric Association.

HEA management claims that “The ‘Independent Light’ plan, because of its flexibility and sole control by HEA, actually provides a better opportunity to accommodate future renewable energy sources.” This claim refers to increased ability to compensate for variable output from wind turbines. Unfortunately, HEA keeps reducing the amount of wind energy they are willing to utilize from potential sources like the Fire Island and Kenai Winds project.

HEA’s response evades another basic issue. After you’ve spent hundreds of millions on enough gas turbines to meet all base load and contingency needs, what incentive will there be to move to renewables -- and with so much debt, where would the money come from?

At the May 11 HEA Board meeting General Manager Brad Janorschke indicated that he felt it was only feasible to use around 4 MW from any wind farm. He didn’t explain why $7 million would no longer pay for enough standby battery or generation equipment to balance more wind energy as originally planned.