Please write letters to the editor NOW (talking points below)

We need media coverage about permitting problems with Healy Coal Plant No. 2 through letters to the editor and op-eds from citizens who want to assure that Healy’s operations will not harm air quality or pose a danger to public health.

Messages should not focus on wholescale abandonment of the project, but rather that, if Healy 2 ever does start up, it must have proper technology and its operations must be consistent with Clean Air Act requirements in order to protect human health and safety and environmental quality.

Please write letters to the editor NOW (talking points below).

Asking DEC and EPA to make sure the Healy permits are stringent enough to comply with the Clean Air Act and protect public health and the environment.

Demanding that the plant not be allowed to renew and apply its outdated existing permit, which was granted 10 years ago, to a different plant, with different combustion technologies.

Demanding that GVEA and AIDEA apply for new permits that comply with Clean Air Act requirements in the interests of public health and the environment.

Contacts:
Peninsula Clarion
Dori Lynn Anderson, Editor
http://www.peninsulaclarion.com/feedback/directory.shtml

Cinthia Ritchie, Seward Phoenix Log
critchie(emailAT)alaskanewspapers.com

Jenny Neyman, Redoubt Reporter
redoubtreporter(emailAT)alaska.net
phone: 394-6397

Homer News
Lori Evans, Editor
lori.evans(emailAT)homernews.com

Homer Tribune
Editor
spearson(emailAT)homertribune.com


Talking Points

Alaskans have a right to breathe clean air. Healy was designed to burn waste coal under a permit that was granted more than 10 years ago. The only way to ensure that air quality and public health are protected is to subject the plant to a new permitting process that fully analyzes the proposal and ensures current, more-protective standards are met. Coal is dirty. Burning coal releases mercury and carbon dioxide emissions into our air, into our lungs, and into our food supply. GVEA is taking the position that no new permit is required to begin operating Healy Coal Plant No. 2. Without proper permitting, air quality and public health will be compromised.

The Healy Plant has been closed for ten years. The technology is questionable. It’s just common sense to ask to ensure that public health, clean air and clean water are protected from outdated technology.
The Healy plant has been closed for 10 years and its decade-old technology was not designed to mitigate the more recent health concerns of mercury and carbon dioxide emissions. Healy’s technology was not clean 10 years ago – that’s part of the reason the plant never started up full operations –and is not clean today. Under these circumstances, it is logical that new permits are issued before this plant can operate safely.

DEC has an obligation to make sure its permits protect public health and ensure clean air and water .
DEC is obligated to protect public health and the environment through its permitting process for the Healy Coal Plant No. 2. Before the plant is allowed to operate, DEC must carefully review its permits to make sure air quality protections under the Clean Air Act are guaranteed. The Healy plant can pull the switch only when it can be shown that its permits meet Clean Air Act standards and requirement.

Communities and park lands are at risk from air pollution unless we make sure Healy runs clean.
GVEA and AIDEA have a moral obligation to ensure that Healy is properly permitted in a manner that protects public health – particularly pregnant women, the young and the elderly – clean air and clean water from mercury emissions and other toxic pollutants.

GVEA will pass additional costs of start up and environmental compliance onto ratepayers. Ratepayers should know how much their rates will go up and what they will have to pay for permitting the plant to comply with new environmental standards, and other start up costs. Ratepayers have the right to know how their rates will be affected before HEA commits to a power sharing agreement.

Your vote is very important

HEA Board Elections Are Coming Up!

Mail-in Ballots will be sent to you soon.

Your vote is very important.

It's your chance to reform the way our coop does business.
Take time to learn which candidates share your concerns.

District 1: Alan J. Bute, Andrew Patrick
District 2: Jim Fassler, Terrance L. Johnson, Edward (Ed) V. Oberts, William (Bill) H. Tappan (incumbent)
District 3: Stephen (Steve) A. Franklin, Eugene (Jim) Levine, Peter (Pete) Roberts, Donald P. Seelinger (incumbent), Doug Stark
(ballot statements available at http://www.homerelectric.com/)

Which candidates support HEA Members Forum objectives?

Let's take a look, starting with District 3 (Clam Gulch, south). We'll look at Districts 1 & 2 soon.

Jim Levine says:

To achieve our goal of stable rates and clean, reliable energy we must eliminate our dependence on fossil fuels.

Jim Levine favors:

• Developing a diversified mix of renewables
• HEA taking a more active role to promote energy conservation
• Establishing policies for openness and transparency.

Jim Levine clearly shares HEAMF concerns and priorities!


Pasted below is a brief message I received from Jim. My apologies if you already received it directly from him.

Mike

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Hi Everyone,

As some of you are aware, I am running for the Homer Electric Association Board of Directors position. I feel very strongly that HEA should be taking a more in depth look at renewable energy generation systems before getting involved in a coal generation system in Healy. I have put together a website, LevineForHEA.com, that includes a few papers that I have prepared outlining my position regarding electrical power generation, and links to sites that show some of the potential we have for renewable energy systems here in Homer. In preparing for this election I have come to realize that we have so much potential to produce, and conserve, so much energy right here on the Kenai Peninsula. I have also included a site that shows one small portion of the problems that are posed by coal generation systems.

If you would like to be a part of this campaign, please call me at 299-0323, or email me at jlevine(emailAT)jaybrant.com. I would be glad to talk to you about all the exciting possibilities for the Kenai Peninsula in regards to electrical power generation.

Jim Levine

Legislative Hearing on Net Metering

March 24 at 3pm, House Special Committee on Energy

HB 31 “An Act relating to net energy metering..."

Net metering advocates need to testify in favor of this bill's strong points and against its weakness. You can testify at the Homer Legislative Affairs office. Call the Kenai LIO (907-283-2030) if you would like to attend there. Or call 1-888-295-4546 when the meeting starts and explain that you are interested in testifying on HB 31.

SUPPORT An annual accounting period over monthly accounting to maximize benefit from renewable energy installations.

OPPOSE The exemption of Rural Electrical Cooperatives pending member approval.

ENCOURAGE In creasing the installation size limit from 25 KW to 100 KW to better accommodate participation by businesses. Final language that will establish true net metering for all railbelt utilities in a timely fashion.

Additional Info

HB 31 is one of two Net Metering Bills (the other is HB 66) brought before the House of Representatives.

*Negatives of HB 31*
HB 31 UNDERMINES the momentum toward net metering in AK by exempting electric coops from the bill's net metering rule. Many electric utilities in Alaska, including the largest ones, are coops. Electric coops are key to the effectiveness of the rule and need to be included. (The coops can waive the exemption, but only after the membership takes a vote, which can't happen until the RCA enacts a regulation setting forth the procedure for such a vote. All this will waste ratepayers' and RCA's time while delaying any decision on net metering for years.)

HB 31 also exempts utilities that generate 100% of power with alternative energy systems - ie exempts southeast utilities using hydro. Southeast residents have also sought the benefits of net metering and should not be excluded regardless of their utilities' source of power.

*Positives of HB31*
Annual accounting period (which allows a better payback on renewable systems than, say, a monthly accounting period). With annual accounting, excess generation from wind turbines during high seasonal wind cycles or from solar arrays during sunny seasons can offset lower production during periods of low wind or shorter days.

Unlike HB 66, HB 31 does not have a 1% aggregate limit on net metered generation. (This is a feature that the utilities tend to like because it limits thetotal number/power generation of net metering participants).

Want to Help Reform HEA and Get Paid for It?

HEA Board Candidate Jim Levine Needs a Campaign Manager.

This will be a paid, temporary, part-time position with fluctuating hours.

Good writing, speaking, and computer skills are required. Community organizing experience would be an asset.

Jim is running for the HEA Board District 3 seat -- everything south of Kasilof

Jim advocates finding new and better ways to provide electricity to HEA members as part of a coordinated strategy to bring rates under control. He supports greater openness and transparency in the governance of our coop.

Contact Jim Levine for more information: 299-0323, jlevine(emailAT)jaybrant.com

If you're not interested, please pass this information on to people you know.

KBBI Coffee Table February 25th

Tomorrow's KBBI Coffee Table Program Will Feature HEA Management's Perspective

9:00 AM - 10:00 AM
Wednesday, February 25, 2009

KBBI-AM 890, Homer
KDLL-FM 91.9, Kenai

HEA General Manager Brad Janorschke and Public Relations Coordinator Joe Gallagher will be the only guests.

KBBI News Director Casey Kelly chose not to invite any guests with differing perspectives:

I made that decision because there are so many issues surrounding HEA right now. I felt like the best thing to do was to have Brad come on and answer questions about everything from the rate increase to Healy to the power supply study to board elections and member relations.

But the fact is, no one is being given a soapbox. It's my position that a talk show is a dialogue between host, guests, callers, and listeners. No one element is given greater weight than another.


Nobody will be there to represent your concerns -- it's up to you to call in and express yourself.

Some basic talking points follow.

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Talking Points:

Independent Power Source Study:
HEA should stop negotiations with GVEA for a Healy 2 Power Sales Agreement pending the outcome of the recently announced power source study.

Right-to-Know:
HEA is a member-owned cooperative. Members have a right to know about HEA actions that will affect our utility rates. HEA must improve the ways members are informed. Why weren’t recent huge, mid-winter, rate hikes announced farther in advance? How come rate increases weren’t made in small increments over several months? Is HEA considering salary and benefits adjustments for its top management? Why do closed-door power sales agreement negotiations between HEA and GVEA continue? How will we be kept informed of progress and findings of the power source study and other projects?

High Risk:
The Healy Coal Plant faces significant and unknown costs from anticipated greenhouse gas and mercury rules. The Obama Administration is committed to enacting new rules that will limit emissions of greenhouse gasses, and the EPA is re-writing new, tougher rules on mercury emissions. These new rules will add significant Healy 2 startup and operating costs while increasing liabilities from litigation. AIDEA and HEA refuse to consider any of this in estimating costs. Such factors must be quantified before HEA commits us to any contract with GVEA.

Mounting Cost:
The Healy Coal Plant is a black hole for public money. Test runs in 1999 proved the facility could not provide reliable, “clean” power at a competitive cost. Despite this fact, the recent agreement on Healy 2 will retain its faulty technology. After pouring $300 million into this coal experiment how much more state money will a restart really take? The legislature will soon consider a bill to consolidate all railbelt utilities. Does HEA support this approach? What would consolidation mean for the Healy 2 agreement?

Higher Rates:
The Healy Coal Plant is likely to increase your electricity costs. HEA has lamented the 30 year contract with Chugach for natural gas since long before the gas cost spike. We got stuck with that contract because HEA thought gas would always be plentiful and cheap. Why does HEA think that, in the face of rising international demand, coal prices won't increase? Alaskan coal deposits may be vast but coal prices have never been stable. That’s because international markets dictate Alaska coal prices. International coal traders predict a 20% to 30% increase in just the coming six months. Under the current terms, HEA ratepayers will be forced to buy 1⁄2 the power from Healy, regardless of the cost.

Stable Rates:
HEA must look forward to renewable power, not backwards to coal. Alaska boasts enormous renewable energy resources that promise clean, fixed-cost power and sustainable jobs. After construction costs, renewable energy systems produce power on a fixed-cost basis, avoiding the market swings and pricet increases of fossil fuel. The Bradley Lake hydropower facility in Kachemak Bay is an excellent example, producing power at less than half the rate GVEA predicts for Healy 2. And it’s clean, reliable, fixed-cost power indefinitely. What ever happened to the idea of a gas-fired turbine on the Kenai Peninsula to bridge the gap until we can develop our renewable energy sources?

The Regulatory Commission of Alaska (RCA) Has Opened New Net Metering Dockets

Net Metering would allow you to sell excess energy produced by your own solar panels, wind turbine, or other renewable technology back to HEA at the retail rate. Unlike the "SNAP" program, no member contributions are required.

Draft RCA Net Metering proposal:
Size Limit For Individual Renewable Energy System: 25 KW
Overall Renewable Energy Systems Limit Per Utility: 1% of utility’s peak demand
Net Metering Accounting Period: Monthly*
Treatment of Monthly Net Excess Power: Paid at utility’s non-firm avoided cost*
Renewable Energy System Types Allowed: Solar, Wind, Hydro, Biomass, Tidal, Ocean Thermal, Wave, Landfill Gas

The RCA will only establish an Alaskan Net Metering rule if ratepayers demand it.

*Monthly accounting is a bad idea. Excess energy production should be applied over a twelve month period. A solar array will produce most energy in late spring and summer when days are longest. Monthly won't let you use that excess production to offset fall and winter consumption.

*Payment at the utility’s “non-firm avoided cost” is a bad idea too. The utility charges you retail for the power but only credits your excess production at the wholesale price.

“Technical” conferences have been scheduled by the RCA for:
March 4, 2009 (Net Metering Standards, Docket R-09-1) and
March 18, 2009 (Interconnection Standards, Docket R-09-2).
Both will be held at the Commission’s East Hearing Room, suite 300, 701 West Eighth Avenue in Anchorage.

Persons planning to participate in one or both conference must file notice of intent by:
4:00 PM, February 27, 2009 for Net Metering Standards, Docket R-09-1
4:00 PM, March 13, 2009 for Interconnection Standards, Docket R-09-2
Notice must indicate whether you intend to appear in person or telephonically. Contact Joyce McGowan at 1-800-390-2782 or send to rca.mail@alaska.gov at least three days before the technical conference.

For More Information:
Regulatory Commission of Alaska

701 West Eighth Avenue, Suite 300
Anchorage, Alaska 99501-3469
In Anchorage: (907) 276-6222
Toll Free: 1-800-390-2782 (outside Anchorage, within Alaska)

E-mail: rca.mail@alaska.gov

Website: https://rca.alaska.gov/RCAWeb/home.aspx

Congratulations Everyone!

After a rather contentious start, Tuesday’s HEA Board meeting resulted in action to respond to member concerns over the proposed Healy 2 deal with AIDEA and GVEA.
At least 55 members crowded Homer and Kenai HEA offices to express their views. In over two hours of testimony, all but three or four opposed involvement with Healy 2 for a variety of reasons, from environmental to public health and economic questions. Many thanks to all of you who were able to participate and to everyone who sent comments to the Board.

It was a long meeting but, in the end, the HEA Board passed a motion by David Thomas to issue an RFP for a comprehensive, third-party, revised power supply study. It will examine Healy in relationship to all other power options available for meeting HEA’s power needs. Cost/benefit assessment of the various options will be an element of this study. Future fuel costs, regulatory issues, reliability, and potential impact on rates will be among the things considered.

In response to a recommendation by General Manager Brad Janorschke, this process will be conducted by the Generation Committee. Two Board members and three member/ratepayer representatives (1 from each Board district) will work with HEA staff to develop and oversee the RFP and the estimated six month power supply study process.

Unfortunately, the Board did not preclude continuing contract negotiations for a Power Sales Agreement between HEA and GVEA. Still, it would be hard to imagine HEA attempting to sign such a document absent results of the completed study.

Many significant issues remain regarding the way our electrical cooperative does business but HEA Board members deserve words of encouragement for taking a significant step in response to member concerns.

Mike