Last Chance to Comment on the New HEA Rate Plan
The new HEA rate plan was filed with the Regulatory Commission of Alaska on November 2, 2010. It is undergoing a 45-day review by RCA staff. At the end if this period (around December 17) staff will present recommendations to Commissioners and a docket will be open for further investigation. This will likely include a 20-day public review process. Watch for notice of this if you have concerns or suggestions about the proposed rate plan that you would like to bring before the RCA.
Weigh in on New Energy Efficiency Standards
The RCA is considering adoption of new amendments to the Public Utilities Regulatory Policies Act which are intended to encourage energy efficiency, among other things. As might be expected, the RCA staff suggests against adopting the federal standards but does propose some modest increase in state regulatory support for energy efficiency. You have until December 9 to submit comments. See the attached summary for more information and go to the source at http://rca.alaska.gov/RCAWeb/Dockets/DocketDetails.aspx?id=ccbcfb40-5010-41c7-af3d-d2e42b57241d.
Independent Light -- Not the Brightest Bulb
Through it’s shadow corporation, the Alaska Electric and Energy Cooperative, Inc., HEA approved spending another $4.5 million on equipment and design engineering services for the Nikiski facility and old Soldotna 1 site. Most of this, $3.3 million, went to the latter. For the most part people see the logic in spending money to improve efficiency of the Nikiski plant. But to many, in a situation where the natural gas supply is questionable, spending millions on new stand-by gas turbines for Soldotna seems like a bad choice. All the more so, given that Anchorage Municipal Light & Power offered a power purchase agreement that one HEA Board member reputedly deemed “a pretty good deal.” As one former HEA electrical engineer recently pointed out, it’s unlikely we can ever recover the cost of new Soldotna turbines. With no one but ourselves to sell power to, they will stand idle most of the time and never generate revenue.
Alaska Railbelt Cooperative Transmission and Energy Company (ARCTEC)
HEA and other railbelt utilities continue to work on draft articles of incorporation for this potential confederation aimed at improved collaboration. The stated intent is to improve prospects for dealing with natural gas supply problems, better address transmission issues, and pursue utility scale alternative energy opportunities. According to HEA General Manager Brad Janorschke, utilities hope to come to agreement and file the articles by the end of this month (November). We agree that better collaboration will be needed to effectively meet railbelt energy needs in the coming years. Such efforts are to be commended, assuming that ratepayer interests are being taken into consideration. Unfortunately, as is so often the case, this process is being conducted behind closed doors.
Renewable Double Speak
While all of the HEA Directors say they favor adding more renewable energy sources to our energy mix, General Manager Janorschke has joined with other railbelt utility managers in signing the attached letter to the RCA and legislative leaders complaining that integrating renewable energy into the existing generation scheme is just too difficult. While the letter claims it isn’t a rejection of renewable technologies, it sure comes out reading like one. These utilities have failed to work with each other or potential independent power producers like Fire Island Wind (CIRI) or Kenai Winds to find ways to overcome integration challenges. HEA has committed to spending $180 million (plus) on natural gas generation but only $2-3 million on a single, very controversial, small hydroelectric project and not a dime on technology to balance fluctuations from wind generators. Railbelt utilities predict potentially high costs associated with integrating renewable energy but think nothing of increasing our dependency natural gas, even if we need to import it in liquefied form from outside. Wonder what that’s going to cost?
December HEA/AEEC Meetings
These meetings will all take place in Kenai at the Central Peninsula Offices, 280 Airport Way.
Tuesday, December 7, 2010
2:00 PM -- Operations and Special Projects
Tuesday, December 14, 2010
1:00 PM -- Finance Committee
3:00 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 -- call either HEA office at 283-5831 (Kenai) or 235-8551 (Homer).
Tuesday, November 23, 2010
Monday, September 13, 2010
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.
Thursday, August 12, 2010
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
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
Friday, August 6, 2010
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).
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).
Tuesday, July 13, 2010
Rate Design Process
Attached is HEA General Manager Brad Janorschke's announcement of the the rate design process along with a related discussion of some of the things to be considered in designing a sound rate structure. Don't forget about this week's informational workshop -- open to the membership.
Wednesday, July 14, 10:00 AM, Homer HEA offices -- R.W. Beck Rate Making Workshop
For video conferencing to Kenai HEA Offices contact Teresa Gamble at
tgamble ( email@ ) homerelectric.com
Rate Design Article
Wednesday, July 14, 10:00 AM, Homer HEA offices -- R.W. Beck Rate Making Workshop
For video conferencing to Kenai HEA Offices contact Teresa Gamble at
tgamble ( email@ ) homerelectric.com
Rate Design Article
Saturday, June 12, 2010
HEA Members Forum Update
Rate Creep
On July 1 rates go up .154 of a cent per kWh. According to HEA that's about 97 cents a month for the "average" member. That's better than the 2 percent increase we were expecting -- stay tuned for that one.
Secret Rate Redesign Process
The HEA Board and management have started the process of redesigning how your electric rates are computed. This summer HEA Directors will have "how to" workshops and background documents on the subject. Unfortunately HEAMF requests to participate in the learning process were turned down. In e-mail and telephone contacts with several HEA Directors we urged that the wider membership be informed of this process and provided an overview of what it’s about and how it will unfold. So far management and most Directors don't seem to want ordinary HEA members involved. One thing under review for sure will be the "customer charge." That's the monthly fee all HEA members pay for just being connected to the system. Management has already advised Directors that the present charge is way too low and needs to be increased.
Alternative Energy Smackdown
In his wisdom Governor Parnell vetoed money the Legislature allocated for community natural gas and alternative energy projects for our state. Among these was the $7 million grant for HEA to utilize wind power from the 14.4 MW Kenai Winds project being pursued by APEX energy. Unfortunately for us, at the June 1 special Board meeting HEA General Manager Brad Janorschke told Directors we should give up altogether on trying to integrate wind energy without the $7 million.
Small Hydro Pumpup
On June 1 a special meeting of the HEA Board was sandwiched between the Alaska Electric & Energy Cooperative(AEEC) and HEA Operations Committee meetings to consider Resolution 10-25, allocation of $2 million from the HEA budget for site studies and completion of the Federal Energy Regulatory Commission (FERC) construction permit application process. After a presentation by HEA engineering staff and several minutes of Board discussion the resolution was approved. This came out of the blue with little or no advance notice -- HEA members and organizations with strong interest in the project such as the Kenai Watershed Forum were not made aware of the resolution. If approved, construction cost is estimated at $30 million and the project would produce about 4.5 MW of electricity. Questions remain regarding potential negative impacts to fish and habitat.
Next Week’s HEA Meetings
Tuesday June 15, 2010, Homer HEA Offices (video conferencing available from the Kenai offices).
Closed Board Workshop 12 Noon
Finance Committee Meeting 3:00 PM
Full Board Meeting 5:30 PM
Agendas have not been posted on the HEA website at this writing. Go to the following pages within the next several days to look for meeting and agenda information.
http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/220/Default.aspx
http://www.homerelectric.com/BoardofDirectorsElections/MeetingCalendar/tabid/240/Default.aspx
On July 1 rates go up .154 of a cent per kWh. According to HEA that's about 97 cents a month for the "average" member. That's better than the 2 percent increase we were expecting -- stay tuned for that one.
Secret Rate Redesign Process
The HEA Board and management have started the process of redesigning how your electric rates are computed. This summer HEA Directors will have "how to" workshops and background documents on the subject. Unfortunately HEAMF requests to participate in the learning process were turned down. In e-mail and telephone contacts with several HEA Directors we urged that the wider membership be informed of this process and provided an overview of what it’s about and how it will unfold. So far management and most Directors don't seem to want ordinary HEA members involved. One thing under review for sure will be the "customer charge." That's the monthly fee all HEA members pay for just being connected to the system. Management has already advised Directors that the present charge is way too low and needs to be increased.
Alternative Energy Smackdown
In his wisdom Governor Parnell vetoed money the Legislature allocated for community natural gas and alternative energy projects for our state. Among these was the $7 million grant for HEA to utilize wind power from the 14.4 MW Kenai Winds project being pursued by APEX energy. Unfortunately for us, at the June 1 special Board meeting HEA General Manager Brad Janorschke told Directors we should give up altogether on trying to integrate wind energy without the $7 million.
Small Hydro Pumpup
On June 1 a special meeting of the HEA Board was sandwiched between the Alaska Electric & Energy Cooperative(AEEC) and HEA Operations Committee meetings to consider Resolution 10-25, allocation of $2 million from the HEA budget for site studies and completion of the Federal Energy Regulatory Commission (FERC) construction permit application process. After a presentation by HEA engineering staff and several minutes of Board discussion the resolution was approved. This came out of the blue with little or no advance notice -- HEA members and organizations with strong interest in the project such as the Kenai Watershed Forum were not made aware of the resolution. If approved, construction cost is estimated at $30 million and the project would produce about 4.5 MW of electricity. Questions remain regarding potential negative impacts to fish and habitat.
Next Week’s HEA Meetings
Tuesday June 15, 2010, Homer HEA Offices (video conferencing available from the Kenai offices).
Closed Board Workshop 12 Noon
Finance Committee Meeting 3:00 PM
Full Board Meeting 5:30 PM
Agendas have not been posted on the HEA website at this writing. Go to the following pages within the next several days to look for meeting and agenda information.
http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/Agendas/tabid/220/Default.aspx
http://www.homerelectric.com/BoardofDirectorsElections/MeetingCalendar/tabid/240/Default.aspx
Thursday, May 27, 2010
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 6th, 2010)
*For more information about the process: http://www.kenaihydro.com/documents/GrantLake_Scoping1.pdf
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 6th, 2010)
*For more information about the process: http://www.kenaihydro.com/documents/GrantLake_Scoping1.pdf
Tuesday, May 18, 2010
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?
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
“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.
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
“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.
HEA Members Forum Update
“Deja vu all over again”
HEA plans to apply to the RCA for another 2% rate increase to take effect in July.
Easy Come, Easy Go
According to discussions at the May 11 Board and Committee meetings, 2009 HEA Board expenses exceeded the $30,000 budgeted by over $20,000. This was attributed in part to having so many new Directors needing training and to travel for lobbying and other utility related functions. President Debnam urged Directors to make flight reservations early in future to help reduce travel costs.
At the same time the Board approved plans to increase Director meeting stipends from $200 to $250 or $300 per day as of January 1, 2011. The separate $200 per day travel stipend was also reconfirmed.
The Truth, the Whole Truth
Among several Board Policy updates approved on May 11 was PB 221 Board of Directors Website Content. Under this policy Directors’ expenses will be published quarterly in the Kilowatt Courier and maintained on the HEA website. Other new items to be added to the website include Directors’ meeting attendance and voting records.
Don’t Ask, Don’t Tell
Board Policy 216, Designated Spokespersons, was approved on May 11 as well. This one directs that “All requests to the Board of Directors for information pertaining to action of the Board shall be directed to the President of the Board.” Does this worry you? Does it mean that your Board representatives are discouraged from communicating with you? Board President Debnam claims not -- “This policy was never intended to impede communication between Directors and HEA Members. I am proud to say that we have an extremely ‘member-focused’ board whose door is always open.”
The General Manager is designated spokesperson for anything related to operations of the cooperative.
Takes the Wind Out of Their Sails
HEA claims it would be too technically difficult to use all 14 + MW Kenai Winds LLC hopes to produce from its proposed Nikiski wind farm. Since wind power is intermittent and unpredictable utilities need to have other power to fill in during calm periods. While the $7 million appropriated by the Legislature was meant to provide money for a fix, HEA feels it still won’t be able to use much more that 4 MW of wind energy in the short term. HEA management and some Directors seem now to be leaning toward using the $7 Million to build our own, smaller wind farm -- assuming the Governor doesn’t veto the appropriation. Bait and switch?
Water Torture?
The Kenai Hydro isn’t dead. While it’s been pared down to one element, Grant Lake, HEA management is still hoping to move ahead with the project, in spite of ongoing opposition from area residents, Kenai watershed protection advocates, and a variety of Alaskan conservation groups. The Federal Energy Regulatory Commission has scheduled rush scoping meetings with comments due by early June. Notice includes a list of issues for consideration and a draft schedule for FERC’s analysis of the license application. The full document is available at www.ferc.gov, and has been posted at: http://www.kenaihydro.com/documents/index.php .
Jobs for Who?
As you probably noticed along ago, HEA has been outsourcing member billing. This change eliminated at least two local jobs but has proven efficient and cost effective. Nonetheless, it has caused a lot of heartburn among HEA members. The Board of Directors keeps getting complaints and now feels your pain. They are looking for ways to bring the work back to Alaska without increasing costs exponentially. No solutions yet, though.
Here Comes the Sun (and other stuff)
Don’t forget -- the Alaska Solar tour comes to the Kenai Peninsula tomorrow, Saturday, May 15. Go to http://www.alaskasolartour.org/ for more information.
Electric Coffee Table
Plan to tune in to next week’s Coffee Table Program on KBBI or KDLL (Wednesday, May 19, 9:00 AM). The focus will be all things HEA with guests Brad Janorschke and Joe Gallagher. This is your chance to ask some hard questions. Call 235-7721 on the southern peninsula, 1-800-979-7405 from elsewhere.
A special HEAMF alert will come your way soon with ideas for questions and comments.
HEA plans to apply to the RCA for another 2% rate increase to take effect in July.
Easy Come, Easy Go
According to discussions at the May 11 Board and Committee meetings, 2009 HEA Board expenses exceeded the $30,000 budgeted by over $20,000. This was attributed in part to having so many new Directors needing training and to travel for lobbying and other utility related functions. President Debnam urged Directors to make flight reservations early in future to help reduce travel costs.
At the same time the Board approved plans to increase Director meeting stipends from $200 to $250 or $300 per day as of January 1, 2011. The separate $200 per day travel stipend was also reconfirmed.
The Truth, the Whole Truth
Among several Board Policy updates approved on May 11 was PB 221 Board of Directors Website Content. Under this policy Directors’ expenses will be published quarterly in the Kilowatt Courier and maintained on the HEA website. Other new items to be added to the website include Directors’ meeting attendance and voting records.
Don’t Ask, Don’t Tell
Board Policy 216, Designated Spokespersons, was approved on May 11 as well. This one directs that “All requests to the Board of Directors for information pertaining to action of the Board shall be directed to the President of the Board.” Does this worry you? Does it mean that your Board representatives are discouraged from communicating with you? Board President Debnam claims not -- “This policy was never intended to impede communication between Directors and HEA Members. I am proud to say that we have an extremely ‘member-focused’ board whose door is always open.”
The General Manager is designated spokesperson for anything related to operations of the cooperative.
Takes the Wind Out of Their Sails
HEA claims it would be too technically difficult to use all 14 + MW Kenai Winds LLC hopes to produce from its proposed Nikiski wind farm. Since wind power is intermittent and unpredictable utilities need to have other power to fill in during calm periods. While the $7 million appropriated by the Legislature was meant to provide money for a fix, HEA feels it still won’t be able to use much more that 4 MW of wind energy in the short term. HEA management and some Directors seem now to be leaning toward using the $7 Million to build our own, smaller wind farm -- assuming the Governor doesn’t veto the appropriation. Bait and switch?
Water Torture?
The Kenai Hydro isn’t dead. While it’s been pared down to one element, Grant Lake, HEA management is still hoping to move ahead with the project, in spite of ongoing opposition from area residents, Kenai watershed protection advocates, and a variety of Alaskan conservation groups. The Federal Energy Regulatory Commission has scheduled rush scoping meetings with comments due by early June. Notice includes a list of issues for consideration and a draft schedule for FERC’s analysis of the license application. The full document is available at www.ferc.gov, and has been posted at: http://www.kenaihydro.com/documents/index.php .
Jobs for Who?
As you probably noticed along ago, HEA has been outsourcing member billing. This change eliminated at least two local jobs but has proven efficient and cost effective. Nonetheless, it has caused a lot of heartburn among HEA members. The Board of Directors keeps getting complaints and now feels your pain. They are looking for ways to bring the work back to Alaska without increasing costs exponentially. No solutions yet, though.
Here Comes the Sun (and other stuff)
Don’t forget -- the Alaska Solar tour comes to the Kenai Peninsula tomorrow, Saturday, May 15. Go to http://www.alaskasolartour.org/ for more information.
Electric Coffee Table
Plan to tune in to next week’s Coffee Table Program on KBBI or KDLL (Wednesday, May 19, 9:00 AM). The focus will be all things HEA with guests Brad Janorschke and Joe Gallagher. This is your chance to ask some hard questions. Call 235-7721 on the southern peninsula, 1-800-979-7405 from elsewhere.
A special HEAMF alert will come your way soon with ideas for questions and comments.
Thursday, May 6, 2010
Recent News
Election Disappointment
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.
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, April 20, 2010
Updates
Unlimited Debt
While HEA has a $450 million debt cap, it turns out the Alaska Electric and Energy Cooperative (AEEC), HEA's separate generation and transmission corporation. has none.
All major projects such as Independent Light take place under AEEC.
Being a completely separate legal entity, AEEC is not directly accountable to HEA members -- you have no rights or privileges with respect to it. AEEC meeting agendas are not published on the HEA website and, at least recently, most meetings have been closed to HEA members. You can only influence AEEC indirectly through appeal to HEA Directors. In a recent e-mail exchange, one HEA Director wrote, "I'm aware of the smoke-and-mirrors aspect of that distinction with AE&EC being a one-member co-op, but that is the legal structure. That said, HEA+AE&EC's debts don't and won't exceed HEA's debt cap."
Getting Steamed Up
On April 6th AEEC approved a $5,017,900 design contract for addition of a steam turbine to the Nikiski facility. The contract has been awarded to Stanley Consultants, Inc., an Iowa-based company. This is the first step in implementing the Independent Light project. Most sources seem to agree that retrofitting the Nikiski plant for cogenration makes technical and economic sense. There is room, however, for significant disagreement over plans to follow up with installation of two new single cycle natural gas gererators in Soldotna.
HEA Website Upgrades
At the April 6 meeting, the HEA Operations committee approved our request that HEA Board Policies be posted on the website. They are available at http://www.homerelectric.com/ by clicking Board of Directors and Elections/Board Policies on the left side menu. You will see that bylaws, the district map, a meetings calendar and other Board related information are available there as well.
Unfortunately, so far none of our suggestions for improving the Independent Light Frequently Asked Question page have been acted on and our responses to answers posted there have not been addressed.
HEA Board Perks
You may have read the recent Peninsula Clarion article on HEA Board Reimbursements (April 9 -- $140,000 in director payments in 2009). This is a valid topic for discussion. Throughout the country there have been examples of rural electric cooperative Boards of Directors partaking of unethical and insupportable levels of payment, often amounting to millions of dollars. Is $140,000 excessive? One would need to look closely at how the money was used. HEA Directors are expected to put in an enormous amount of time and asked to travel often on behalf of the cooperative. Most join the Board with limited knowledge of energy issues or the workings of a utility. Professional development workshops and classes help them develop a working understanding to underpin decisions they are asked to make. The $200 per meeting stipend is among the lowest in the state yet the Board recently voted against increasing it. In addition to this stipend, tuition for professional development courses, travel and lodging for HEA business trips and reimbursement of related out of pocket expenses account for part of the money spent on Directors. Can this process be abused? Probably. Perhaps it would be helpful to HEA members concerned about this issue if HEA took steps to clarify how a budget is determined for these activities, how priorities for which events Directors should participate in are set, and what safeguards are in place to guard against abuse.
Net Metering
Although the RCA is still waiting for the State Attorney General to sign of on the Net Metering standards approved in January, HEA is moving to transition from from SNAP to net metering. HEA filed a net metering tariff with the RCA requesting immediate implementation and may be the first railbelt utility to have done so. May 27 is the earliest expected date for RCA approval.
Renewable Energy
An April 6 presentation by Chris Rose of the Renewable Energy Alaska Project (REAP) to the HEA Operatins Committee on Alaska's renewable energy potential was well received. There was specific reference to how HEA and other railbelt utilities can work toward incorporating renewables into their energy mix. HEA Directors showed interest in the potential of Mt. Spurr geothermal and Lake Chakachamna Hydroelectric projects and in tidal generation technology. Unfortunately, there was no discussion of how HEA would integrate the Independent Light project with these sources should they become available. Chris was invited to return and report after taking a first-hand look this spring at a tidal power prototype off the coast of Ireland.
HEA continues to consider how to utilize power from the Fire Island wind farm and Nikiski Kenai Winds projects when they come on line. Because wind power is intermittent it poses problems of load balancing and dispatch that are challenging. Studies of potential sites for small wind projects on the southern peninsula are ongoing. The Grant Lake component of the Kenai Hydro project is still being considered, though it will require additional funding before significant effort can take place.
GRETC on the Ropes
At the April 13 HEA Board meeting the consensus of Directors was that legislation to create a Greater Railbelt Energy & Transmission Corporation (HB 182, SB 143) will not pass the legislature this session. We suspect this is correct. The issue is very complicated, involving a complete reorganization in the way all railbelt utilities and regulators would operate. While both ratepayers and utilities have stated support for the concept of a GRETC, it's become clear that the two interest groups do not agree on some very basic elements and the RCA recently weighed in with it's own questions and reservations. The HEA Board still wants to work with other railbelt utilities and the next legislature on GRETC legislation.
While HEA has a $450 million debt cap, it turns out the Alaska Electric and Energy Cooperative (AEEC), HEA's separate generation and transmission corporation. has none.
All major projects such as Independent Light take place under AEEC.
Being a completely separate legal entity, AEEC is not directly accountable to HEA members -- you have no rights or privileges with respect to it. AEEC meeting agendas are not published on the HEA website and, at least recently, most meetings have been closed to HEA members. You can only influence AEEC indirectly through appeal to HEA Directors. In a recent e-mail exchange, one HEA Director wrote, "I'm aware of the smoke-and-mirrors aspect of that distinction with AE&EC being a one-member co-op, but that is the legal structure. That said, HEA+AE&EC's debts don't and won't exceed HEA's debt cap."
Getting Steamed Up
On April 6th AEEC approved a $5,017,900 design contract for addition of a steam turbine to the Nikiski facility. The contract has been awarded to Stanley Consultants, Inc., an Iowa-based company. This is the first step in implementing the Independent Light project. Most sources seem to agree that retrofitting the Nikiski plant for cogenration makes technical and economic sense. There is room, however, for significant disagreement over plans to follow up with installation of two new single cycle natural gas gererators in Soldotna.
HEA Website Upgrades
At the April 6 meeting, the HEA Operations committee approved our request that HEA Board Policies be posted on the website. They are available at http://www.homerelectric.com/ by clicking Board of Directors and Elections/Board Policies on the left side menu. You will see that bylaws, the district map, a meetings calendar and other Board related information are available there as well.
Unfortunately, so far none of our suggestions for improving the Independent Light Frequently Asked Question page have been acted on and our responses to answers posted there have not been addressed.
HEA Board Perks
You may have read the recent Peninsula Clarion article on HEA Board Reimbursements (April 9 -- $140,000 in director payments in 2009). This is a valid topic for discussion. Throughout the country there have been examples of rural electric cooperative Boards of Directors partaking of unethical and insupportable levels of payment, often amounting to millions of dollars. Is $140,000 excessive? One would need to look closely at how the money was used. HEA Directors are expected to put in an enormous amount of time and asked to travel often on behalf of the cooperative. Most join the Board with limited knowledge of energy issues or the workings of a utility. Professional development workshops and classes help them develop a working understanding to underpin decisions they are asked to make. The $200 per meeting stipend is among the lowest in the state yet the Board recently voted against increasing it. In addition to this stipend, tuition for professional development courses, travel and lodging for HEA business trips and reimbursement of related out of pocket expenses account for part of the money spent on Directors. Can this process be abused? Probably. Perhaps it would be helpful to HEA members concerned about this issue if HEA took steps to clarify how a budget is determined for these activities, how priorities for which events Directors should participate in are set, and what safeguards are in place to guard against abuse.
Net Metering
Although the RCA is still waiting for the State Attorney General to sign of on the Net Metering standards approved in January, HEA is moving to transition from from SNAP to net metering. HEA filed a net metering tariff with the RCA requesting immediate implementation and may be the first railbelt utility to have done so. May 27 is the earliest expected date for RCA approval.
Renewable Energy
An April 6 presentation by Chris Rose of the Renewable Energy Alaska Project (REAP) to the HEA Operatins Committee on Alaska's renewable energy potential was well received. There was specific reference to how HEA and other railbelt utilities can work toward incorporating renewables into their energy mix. HEA Directors showed interest in the potential of Mt. Spurr geothermal and Lake Chakachamna Hydroelectric projects and in tidal generation technology. Unfortunately, there was no discussion of how HEA would integrate the Independent Light project with these sources should they become available. Chris was invited to return and report after taking a first-hand look this spring at a tidal power prototype off the coast of Ireland.
HEA continues to consider how to utilize power from the Fire Island wind farm and Nikiski Kenai Winds projects when they come on line. Because wind power is intermittent it poses problems of load balancing and dispatch that are challenging. Studies of potential sites for small wind projects on the southern peninsula are ongoing. The Grant Lake component of the Kenai Hydro project is still being considered, though it will require additional funding before significant effort can take place.
GRETC on the Ropes
At the April 13 HEA Board meeting the consensus of Directors was that legislation to create a Greater Railbelt Energy & Transmission Corporation (HB 182, SB 143) will not pass the legislature this session. We suspect this is correct. The issue is very complicated, involving a complete reorganization in the way all railbelt utilities and regulators would operate. While both ratepayers and utilities have stated support for the concept of a GRETC, it's become clear that the two interest groups do not agree on some very basic elements and the RCA recently weighed in with it's own questions and reservations. The HEA Board still wants to work with other railbelt utilities and the next legislature on GRETC legislation.
Thursday, April 1, 2010
Ken Hepner's HEA Board Campaign Needs Our Help NOW
It is difficult to unseat an incumbent. Ken is running against HEA Board President Debbie Debnam who supported the Healy 2 coal plant deal and continues to support the questionable Kenai Small Hydro project and lots of Board executive sessions. We are told she is being supported by a powerful group of political insiders including Borough Mayor Dave Carey, Hugh Chumley, and HEA General Manager Brad Janorschke.
HEA Ballots will be mailed tomorrow. Past experience shows that most people mark and return their ballots within to following week or ten days.
Please volunteer to help by placing a Ken Hepner sign on your property (central peninsula folks), or for the phone tree (central AND southern peninsula folks).
Contact Ken or his campaign managers to volunteer.
Ken: hepner(email@)alaska.net or 262-8510
Campaign managers: Dan Chay chay(email@)alaska.com,
Robert Ruffner robert.kwf(email@)gmail.com
HEA Ballots will be mailed tomorrow. Past experience shows that most people mark and return their ballots within to following week or ten days.
Please volunteer to help by placing a Ken Hepner sign on your property (central peninsula folks), or for the phone tree (central AND southern peninsula folks).
Contact Ken or his campaign managers to volunteer.
Ken: hepner(email@)alaska.net or 262-8510
Campaign managers: Dan Chay chay(email@)alaska.com,
Robert Ruffner robert.kwf(email@)gmail.com
Election Update
HEA Members Forum Supports Ken Hepner and Tony Garcia For HEA Board of Directors
These two candidates support more open governance of our cooperative -- fewer closed-door meetings; more information about operations, plans, problems; responsiveness to member concerns. Both want to embrace renewable energy while making efficient use of remaining natural gas reserves. See their candidate statements below.
HEA Ballots will be mailed to members tomorrow, Friday, April 2, 2010.
HEA District 1 -- Vote Tony Garcia.
HEA District 2 -- Vote for Ken Hepner.
HEA District 3 -- Call central peninsula family, friends, associates and encourage them to Vote for Tony or Ken.
(Bill Fry is running unopposed in District 3 and need not campaign.)
Ken Hepner
I am Ken Hepner, a retired science and math teacher, United Methodist Minister, and an experienced office manager. My wife and I raised our daughter and lived here for 27 years. Transitioning to a renewable future, we should use Cook Inlet natural gas more efficiently and forego coal-fired generation due to costs, regulatory uncertainties and mercury emissions. I am running for the board because I want HEA to pursue cleaner renewable power generation.
HEA sits on world class tidal, wind and geothermal resources. HEA should be installing wind turbines (mature technology), and exploring tidal and geothermal. I bring knowledge about fishery issues, and support hydroelectric projects when appropriate; however, I would not have pursued hydro-development of Ptarmigan Creek in the headwaters of the Kenai River.
During my 16 years of service with the Central Emergency Service board and while
employed with Kenai Peninsula Schools, I worked with multi-million dollar budgets. My work with Native Ministries involved working with a variety of backgrounds and
cultures.
I support more transparency and fewer closed-door executive sessions. HEA should
better educate its members about the challenges ahead and listen to your concerns as we work toward a secure energy future. Thanks for your support!
Tony Garcia
I, Tony Garcia, have been a member of Homer Electric Association
since 2000.
My board experience includes service on the Homer Electric Association board since
2008, Kenai Care Center since 2007, and the Alaska Dare Officers Association since
2004. Additionally, I am the state chairperson for the Elks Drug Awareness committee.
My work experience includes the United States Air Force (retired Senior Non
Commissioned Officer after 21 years of service in 2003) and Soldotna Police Department from 2003 to present, currently serving as a Patrol Sergeant.
If elected to represent the members of Homer Electric Association, my main goal will be to provide the best possible service to all, provide the highest value services at the lowest practical cost, to keep members informed about their co-op’s operations, plans, problems and progress. Promote democratic process ensuring transparency and encourage members’ participation and to diversify our energy portfolio by integrating renewable resources.
These two candidates support more open governance of our cooperative -- fewer closed-door meetings; more information about operations, plans, problems; responsiveness to member concerns. Both want to embrace renewable energy while making efficient use of remaining natural gas reserves. See their candidate statements below.
HEA Ballots will be mailed to members tomorrow, Friday, April 2, 2010.
HEA District 1 -- Vote Tony Garcia.
HEA District 2 -- Vote for Ken Hepner.
HEA District 3 -- Call central peninsula family, friends, associates and encourage them to Vote for Tony or Ken.
(Bill Fry is running unopposed in District 3 and need not campaign.)
Ken Hepner
I am Ken Hepner, a retired science and math teacher, United Methodist Minister, and an experienced office manager. My wife and I raised our daughter and lived here for 27 years. Transitioning to a renewable future, we should use Cook Inlet natural gas more efficiently and forego coal-fired generation due to costs, regulatory uncertainties and mercury emissions. I am running for the board because I want HEA to pursue cleaner renewable power generation.
HEA sits on world class tidal, wind and geothermal resources. HEA should be installing wind turbines (mature technology), and exploring tidal and geothermal. I bring knowledge about fishery issues, and support hydroelectric projects when appropriate; however, I would not have pursued hydro-development of Ptarmigan Creek in the headwaters of the Kenai River.
During my 16 years of service with the Central Emergency Service board and while
employed with Kenai Peninsula Schools, I worked with multi-million dollar budgets. My work with Native Ministries involved working with a variety of backgrounds and
cultures.
I support more transparency and fewer closed-door executive sessions. HEA should
better educate its members about the challenges ahead and listen to your concerns as we work toward a secure energy future. Thanks for your support!
Tony Garcia
I, Tony Garcia, have been a member of Homer Electric Association
since 2000.
My board experience includes service on the Homer Electric Association board since
2008, Kenai Care Center since 2007, and the Alaska Dare Officers Association since
2004. Additionally, I am the state chairperson for the Elks Drug Awareness committee.
My work experience includes the United States Air Force (retired Senior Non
Commissioned Officer after 21 years of service in 2003) and Soldotna Police Department from 2003 to present, currently serving as a Patrol Sergeant.
If elected to represent the members of Homer Electric Association, my main goal will be to provide the best possible service to all, provide the highest value services at the lowest practical cost, to keep members informed about their co-op’s operations, plans, problems and progress. Promote democratic process ensuring transparency and encourage members’ participation and to diversify our energy portfolio by integrating renewable resources.
Tuesday, February 23, 2010
HB31 MAY STILL THREATEN NET METERING
Testimony will be taken Tuesday, Feb. 23th starting at 3pm at the House Special Committee on Energy hearing on HB 31.
Last week's hearing was canceled and significant language changes made to the bill. The Amended version is attached. There are still concerns that this legislation could reduce the ability of net metering proponents to work with the RCA on future improvements to the regulations passed on January 15, 2010. The best place to deal with net metering is the RCA, not the Legislature.
If you plan to attend, please let the LIO know.
Homer Legislative Information Office
345 W Sterling Hwy, Ste 102A
Homer, AK 99603
Phone: 235-7878 Fax: 235-4008
Kenai LIO
145 Main St Lp, Ste 217
Kenai, AK 99611
(907)283-2030/phone (907)283-3075/fax
email: Kenai_Lio(email@)legis.state.ak.us
Last week's hearing was canceled and significant language changes made to the bill. The Amended version is attached. There are still concerns that this legislation could reduce the ability of net metering proponents to work with the RCA on future improvements to the regulations passed on January 15, 2010. The best place to deal with net metering is the RCA, not the Legislature.
If you plan to attend, please let the LIO know.
Homer Legislative Information Office
345 W Sterling Hwy, Ste 102A
Homer, AK 99603
Phone: 235-7878 Fax: 235-4008
Kenai LIO
145 Main St Lp, Ste 217
Kenai, AK 99611
(907)283-2030/phone (907)283-3075/fax
email: Kenai_Lio(email@)legis.state.ak.us
Tuesday, February 16, 2010
Recent News
Hello Net Metering, Goodbye SNAP
Given the recent passage by the RCA of net metering regulations for Alaska, HEA Directors voted at Tuesday's Board meeting to phase out the SNAP program and prepare to accommodate members wanting to enjoy the greater benefits of net metering.
Bad News
HEA's base rate will increase six percent (6%) in April. This could go up another two percent (2%) by early summer. Yes, present low electric rates ARE too good to be true.
Kenai Hydro Slows to a Trickle
HEA is now on it's own with respect to the controversial small hydroelectric projects proposed for the Cooper Landing/Moose Pass area. Partners Cook Inlet Region, Inc. and EnXco have formally withdrawn from the effort. At present, only the Grant Lake component of the project seems to have survived and most study activity for that is on hold while HEA looks for new grant money.
RCA Spooked
On January 28 the RCA dismissed a petition by Cook Inlet Natural Gas Storage, LLC. The company wanted authorization to move ahead with plans for a project to store natural gas on the Kenai Peninsula to supplement high demand during winter cold spells. Commissioners decided they lacked statutory authority to regulate such, and directed proponents of the plan to the Legislature and Supreme Court instead. The storage facility is seen by utilities as vital to maintaining necessary gas and electric supplies to Kenai Peninsula consumers and business (that's us).
High Wattage Independent Light
HEA General Manager Brad Janorschki is quoted in a Feb. 7 Peninsula Clarion story as saying, "...turbines typically cost $1,400 to $1,800 a kilowatt, but that doesn't necessarily take into account the cost of installation." Those figures translate into $1.4 to $1.8 million per megawatt (MW). If we do the whole project it will add another 110 to 112 MW in generating capacity. That will cost us between $154 and $201 million for all the turbines. As Brad says, installation could cost extra. Either way, the price certainly doesn't include ongoing salaries and benefits for those 20 new high-end jobs.
Given the recent passage by the RCA of net metering regulations for Alaska, HEA Directors voted at Tuesday's Board meeting to phase out the SNAP program and prepare to accommodate members wanting to enjoy the greater benefits of net metering.
Bad News
HEA's base rate will increase six percent (6%) in April. This could go up another two percent (2%) by early summer. Yes, present low electric rates ARE too good to be true.
Kenai Hydro Slows to a Trickle
HEA is now on it's own with respect to the controversial small hydroelectric projects proposed for the Cooper Landing/Moose Pass area. Partners Cook Inlet Region, Inc. and EnXco have formally withdrawn from the effort. At present, only the Grant Lake component of the project seems to have survived and most study activity for that is on hold while HEA looks for new grant money.
RCA Spooked
On January 28 the RCA dismissed a petition by Cook Inlet Natural Gas Storage, LLC. The company wanted authorization to move ahead with plans for a project to store natural gas on the Kenai Peninsula to supplement high demand during winter cold spells. Commissioners decided they lacked statutory authority to regulate such, and directed proponents of the plan to the Legislature and Supreme Court instead. The storage facility is seen by utilities as vital to maintaining necessary gas and electric supplies to Kenai Peninsula consumers and business (that's us).
High Wattage Independent Light
HEA General Manager Brad Janorschki is quoted in a Feb. 7 Peninsula Clarion story as saying, "...turbines typically cost $1,400 to $1,800 a kilowatt, but that doesn't necessarily take into account the cost of installation." Those figures translate into $1.4 to $1.8 million per megawatt (MW). If we do the whole project it will add another 110 to 112 MW in generating capacity. That will cost us between $154 and $201 million for all the turbines. As Brad says, installation could cost extra. Either way, the price certainly doesn't include ongoing salaries and benefits for those 20 new high-end jobs.
Monday, February 15, 2010
HB31 THREATENS NET ENERGY METERING
Testimony will be taken Tuesday, Feb. 16th starting at 3pm at the House Special Committee on Energy hearing on HB 31 .
Louie from Representative Seaton's office thinks they plan to try and put the new RCA regulation language into HB 31. That would make net metering entirely voluntary for the utilities. Under HB 31, cooperatives organized under AS 10.25 are exempt but may waive exemption if the majority of its membership votes in favor of the waiver. Louie thinks this is a backhanded attempt by the utilities to undo net metering regulations passed by the RCA January 15.
Net metering fans will want to testify against this.
The utilities previously testified on the record that Net Metering should be investigated by the RCA and not the legislature. This could be brought up if there are a bunch of utilities testifying on the issue.
If you can attend, please let the LIO know.
Homer Legislative Information Office
345 W Sterling Hwy, Ste 102A
Homer, AK 99603
Phone: 235-7878 Fax: 235-4008
Kenai LIO
145 Main St Lp, Ste 217
Kenai, AK 99611
(907)283-2030/phone (907)283-3075/fax
email: Kenai_Lio(email@)legis.state.ak.us
Louie from Representative Seaton's office thinks they plan to try and put the new RCA regulation language into HB 31. That would make net metering entirely voluntary for the utilities. Under HB 31, cooperatives organized under AS 10.25 are exempt but may waive exemption if the majority of its membership votes in favor of the waiver. Louie thinks this is a backhanded attempt by the utilities to undo net metering regulations passed by the RCA January 15.
Net metering fans will want to testify against this.
The utilities previously testified on the record that Net Metering should be investigated by the RCA and not the legislature. This could be brought up if there are a bunch of utilities testifying on the issue.
If you can attend, please let the LIO know.
Homer Legislative Information Office
345 W Sterling Hwy, Ste 102A
Homer, AK 99603
Phone: 235-7878 Fax: 235-4008
Kenai LIO
145 Main St Lp, Ste 217
Kenai, AK 99611
(907)283-2030/phone (907)283-3075/fax
email: Kenai_Lio(email@)legis.state.ak.us
District 3 HEA Directors Meet & Greet
Thanks to all of you who turned out last night to meet and talk with Bill Fry and Mike Wiley, our two new representatives on the HEA Board. While it was very informal, people felt free to voice some of their interests and concerns about the future of our cooperative. It gave Mike and Bill a preliminary look at the kinds of issues you are interested in and provided an opportunity to give us some sense of their own thinking. It will be important for you all to keep the HEA Board apprised of your feelings as they move forward with the many changes ahead for HEA. Everything they do will affect each one of us -- for better or worse.
As I mentioned at last night's meeting, HEA has made many changes to the website to make it more user friendly and useful to members. There is a new video tour of Nikiski natural gas plant -- one of the topics discussed last night. Try to take some time to check out that and the rest of the website. If you find things that need improvement or have suggestions for other things to add, you can send them to Director of Member and Administrative Services, Chris Kastella (ckastella (email @) HomerElectric.com or 235.3302). Chris has been very good about seeing that member suggestions get plugged in.
As I mentioned at last night's meeting, HEA has made many changes to the website to make it more user friendly and useful to members. There is a new video tour of Nikiski natural gas plant -- one of the topics discussed last night. Try to take some time to check out that and the rest of the website. If you find things that need improvement or have suggestions for other things to add, you can send them to Director of Member and Administrative Services, Chris Kastella (ckastella (email @) HomerElectric.com or 235.3302). Chris has been very good about seeing that member suggestions get plugged in.
Monday, February 8, 2010
Invitation - Pizza, Refreshments, Meet & Greet
HEA Members Forum will host an informal gathering to welcome new HEA District 3 Board Directors Bill Fry and Mike Wiley. This is a chance for you to get to know your HEA representatives and discuss your feelings about the direction our coop should take.
Please join us.
5:00 PM
Friday, February 12
Homer Chamber of Commerce Visitor Center
201 Sterling Highway
Homer, AK 99603
Please join us.
5:00 PM
Friday, February 12
Homer Chamber of Commerce Visitor Center
201 Sterling Highway
Homer, AK 99603
Thursday, January 21, 2010
RCA ADOPTS ALASKA NET METERING REGULATIONS
On October 14, 2009, the Regulatory Commission of Alaska (Commission) voted to adopt new regulations establishing net metering requirements for economically regulated utilities. A final version of the regulations was formally adopted on January 15, 2010.
Net metering serves as an important incentive for consumer investment in renewable energy generation. It allows a customer of a regulated utility to interconnect eligible onsite generation facilities with their electric utility's distribution system. Customer-generated electricity can then offset electricity consumption on a kilowatt-hour (kWh) basis. In general, the new regulations:
1. Apply to electric systems owned by economically regulated electric utilities with total retail sales of 5,000,000 kWh or more (that includes HEA).
2. Affected utilities are required to interconnect with eligible customer generation systems up to a system-wide total capacity of 1.5% of their average retail demand. Customer interconnection can be refused if it would cause the total net metering capacity to exceed 1.5%.
3. Eligible customer generation systems are limited to a total on-site capacity of 25 kilowatts.
4. Net metering customers are billed for net monthly consumption. If the customer uses 800 kWh and generates 600, he or she will be billed for 200 kWh.
5. When more electricity is generated during a given month than is consumed, the customer is credited for the excess at the wholesale power rate. If the customer uses 800 kWh and generates 1,000, he or she will receive a credit for 200 kWh at the wholesale rate. Credits will be applied to reduce the dollar amount of subsequent monthly billings. Credits do not expire or revert to the utility.
6. The RCA must now establish interconnection requirements for eligible customer generation systems. In early 2010 a workshop will be scheduled on RCA Matter Number: R-09-002, Consideration of the Adoption of Regulations Implementing an Interconnection Standard, to determine what these requirements will be.
7. Technologies eligible for net metering generation are limited to solar photovoltaic, solar thermal, wind, biomass, hydroelectric, geothermal, hydrokinetic, ocean thermal, landfill gas and biogas energy, along with other sources as approved by the commission that generally have similar environmental impact.
This is a good start. There are some exceptions possible as outlined in the "fine print" of the regulations and through an RCA waiver process. It will be important now to assure that the interconnection standards favor individuals and businesses wanting to install alternative energy systems. Find more information at the RCA website (http://rca.alaska.gov/RCAWeb/home.aspx/).
Net metering serves as an important incentive for consumer investment in renewable energy generation. It allows a customer of a regulated utility to interconnect eligible onsite generation facilities with their electric utility's distribution system. Customer-generated electricity can then offset electricity consumption on a kilowatt-hour (kWh) basis. In general, the new regulations:
1. Apply to electric systems owned by economically regulated electric utilities with total retail sales of 5,000,000 kWh or more (that includes HEA).
2. Affected utilities are required to interconnect with eligible customer generation systems up to a system-wide total capacity of 1.5% of their average retail demand. Customer interconnection can be refused if it would cause the total net metering capacity to exceed 1.5%.
3. Eligible customer generation systems are limited to a total on-site capacity of 25 kilowatts.
4. Net metering customers are billed for net monthly consumption. If the customer uses 800 kWh and generates 600, he or she will be billed for 200 kWh.
5. When more electricity is generated during a given month than is consumed, the customer is credited for the excess at the wholesale power rate. If the customer uses 800 kWh and generates 1,000, he or she will receive a credit for 200 kWh at the wholesale rate. Credits will be applied to reduce the dollar amount of subsequent monthly billings. Credits do not expire or revert to the utility.
6. The RCA must now establish interconnection requirements for eligible customer generation systems. In early 2010 a workshop will be scheduled on RCA Matter Number: R-09-002, Consideration of the Adoption of Regulations Implementing an Interconnection Standard, to determine what these requirements will be.
7. Technologies eligible for net metering generation are limited to solar photovoltaic, solar thermal, wind, biomass, hydroelectric, geothermal, hydrokinetic, ocean thermal, landfill gas and biogas energy, along with other sources as approved by the commission that generally have similar environmental impact.
This is a good start. There are some exceptions possible as outlined in the "fine print" of the regulations and through an RCA waiver process. It will be important now to assure that the interconnection standards favor individuals and businesses wanting to install alternative energy systems. Find more information at the RCA website (http://rca.alaska.gov/RCAWeb/home.aspx/).
Tuesday, January 12, 2010
Self Regulation (& more)
Self Regulation
At last night's meeting the HEA Board voted to indefinitely suspend all efforts to pursue deregulation of our coop. While several Board members expressed continuing interest in looking at the option at some point in the future, all agreed this was not the time to do so. During discussion of the motion the Board acknowledged that questions raised by a number of HEA members made them realize they lacked adequate knowledge of the potential costs and benefits of "self regulation." It was also recognized that there are many more pressing priorities confronting the HEA Board and management in the coming months. Clearly, member knowledge of this issue and willingness of some to communicate questions and concerns made a difference.
Continuing HEA Website Upgrades
Also at last night's meeting the Board approved placing voting records of all Board members on the HEA website. This will be done on a "rolling" three-year basis and will include attendance and absence information. Such information can be valuable if you wish to understand the way a given policy developed and where each Board member stands on important issues. Such knowledge will be especially useful to you during Board elections.
Board Meeting Schedule Revised
The Board of Directors has reduced the number of meetings it will hold in Homer from 6 to 4. They will now meet at the Kenai offices 8 months out of the year. The reason given for this change is that they want to accommodate members from all 3 Board districts equally. One wonders how meeting 8 times in Kenai achieves this goal -- no meetings are planned within the Soldotna/Sterling district. We have been told that the Homer meetings will occur during summer months. Unfortunately, specific dates and locations are yet to be listed on the HEA website.
HEA Energy Fair
HEA will hold the second Energy and Conservation Fair in Home at the Islands and Ocean Center on Saturday, November 14, between 10 AM and 4 PM. There will be presentations, workshops, and a chance to visit with various vendors of energy and conservation goods and services. By all accounts, the first fair held last Saturday in Kenai was well attended and many participants considered it a great success.
At last night's meeting the HEA Board voted to indefinitely suspend all efforts to pursue deregulation of our coop. While several Board members expressed continuing interest in looking at the option at some point in the future, all agreed this was not the time to do so. During discussion of the motion the Board acknowledged that questions raised by a number of HEA members made them realize they lacked adequate knowledge of the potential costs and benefits of "self regulation." It was also recognized that there are many more pressing priorities confronting the HEA Board and management in the coming months. Clearly, member knowledge of this issue and willingness of some to communicate questions and concerns made a difference.
Continuing HEA Website Upgrades
Also at last night's meeting the Board approved placing voting records of all Board members on the HEA website. This will be done on a "rolling" three-year basis and will include attendance and absence information. Such information can be valuable if you wish to understand the way a given policy developed and where each Board member stands on important issues. Such knowledge will be especially useful to you during Board elections.
Board Meeting Schedule Revised
The Board of Directors has reduced the number of meetings it will hold in Homer from 6 to 4. They will now meet at the Kenai offices 8 months out of the year. The reason given for this change is that they want to accommodate members from all 3 Board districts equally. One wonders how meeting 8 times in Kenai achieves this goal -- no meetings are planned within the Soldotna/Sterling district. We have been told that the Homer meetings will occur during summer months. Unfortunately, specific dates and locations are yet to be listed on the HEA website.
HEA Energy Fair
HEA will hold the second Energy and Conservation Fair in Home at the Islands and Ocean Center on Saturday, November 14, between 10 AM and 4 PM. There will be presentations, workshops, and a chance to visit with various vendors of energy and conservation goods and services. By all accounts, the first fair held last Saturday in Kenai was well attended and many participants considered it a great success.
HEA Extends Application Deadline for Board Appointments (& more)
HEA Extends Application Deadline for Board Appointments
At yesterday's HEA Operations Committee meeting the Board voted to extend the deadline to apply for the vacant seats until January 22. So far there are five names on the list of applicants. HEAMF is making an effort to learn enough about each person to recommend which seem most qualified. If you are interested in applying you must be a resident of HEA District 3. Applications are available on the HEA website (http://www.homerelectric.com/) or at HEA offices in Homer and Kenai. They must be returned by Friday, January 22, 2010 at 5 PM. Contact Teresa Gamble at 283-2334 or tgamble(email@)homerelectric.com for additional information.
Net Metering
The Net Metering Regulation adopted by the Regulatory Commission of Alaska (RCA) in October was sent to the Alaska Department of Law for review. It could be signed into law by March 2010. The next step is for the RCA to adopt regulations governing how to tie your alternative energy system to the electric grid. The RCA will probably schedule a workshop on interconnection for some time in February. Public notice must be given 30 days before the workshop. Look for Matter Number: R-09-002, Consideration of the Adoption of Regulations Implementing an Interconnection Standard, on the RCA website (http://rca.alaska.gov/RCAWeb/home.aspx).
Operation "Independent Light"
This is HEA's alternative to the Healy 2 coal plant. The plan includes adding a Steam Turbine Generator (STG) at Nikiski to take advantage of waste heat (formerly used by the now closed Agrium plant). This would greatly increase the electricity produced without burning any added fuel. In addition, a new natural gas fired generation facility would be installed in Soldotna to generate even more power. Finally, appropriate upgrades would be made to existing substations at each location. A pre-bid conference was held for interested vendors in November and bids are due back by January 15. HEA staff hopes to conduct bid evaluations and make a recommendation to the full Board by late January or early February.
None of this comes cheap. HEA will need to borrow as much as $130 million to complete all parts of this proposal. Watch for more information on this in coming updates.
Alaska Railbelt Regional Integrated Resource Plan (RIRP) Report
This study was commissioned by the Alaska Energy Authority to help assess and guide railbelt utility planning for the next 50 years. The report is long and comprehensive but, in addition to recommending that the Healy 2 plant remain mothballed, includes the following among its general recommendations:
1. The State should work closely with the utilities and other stakeholders to make a decision regarding the formation of GRETC [Greater Railbelt Energy and Transmission Company]and to develop the required governance plan, financial and capital improvement plan, capital management plan and transmission access plan, and address other matters related to the formation of the proposed regional entity.
2. The State should establish certain energy-related policies, including:
o The pursuit of large hydroelectric facilities
o DSM/EE [Demand Side Management/Energy Efficiency] program targets
o RPS (i.e., target for renewable resources), and the pursuit of wind, geothermal, and tidal...projects in addition to large hydroelectric projects
o System benefit charge to fund DSM/EE programs and or renewable projects
The whole report can be downloaded from the Alaska Energy Authority website (http://www.aidea.org/AEA/regionalintegratedresourceplan.html).
At yesterday's HEA Operations Committee meeting the Board voted to extend the deadline to apply for the vacant seats until January 22. So far there are five names on the list of applicants. HEAMF is making an effort to learn enough about each person to recommend which seem most qualified. If you are interested in applying you must be a resident of HEA District 3. Applications are available on the HEA website (http://www.homerelectric.com/) or at HEA offices in Homer and Kenai. They must be returned by Friday, January 22, 2010 at 5 PM. Contact Teresa Gamble at 283-2334 or tgamble(email@)homerelectric.com for additional information.
Net Metering
The Net Metering Regulation adopted by the Regulatory Commission of Alaska (RCA) in October was sent to the Alaska Department of Law for review. It could be signed into law by March 2010. The next step is for the RCA to adopt regulations governing how to tie your alternative energy system to the electric grid. The RCA will probably schedule a workshop on interconnection for some time in February. Public notice must be given 30 days before the workshop. Look for Matter Number: R-09-002, Consideration of the Adoption of Regulations Implementing an Interconnection Standard, on the RCA website (http://rca.alaska.gov/RCAWeb/home.aspx).
Operation "Independent Light"
This is HEA's alternative to the Healy 2 coal plant. The plan includes adding a Steam Turbine Generator (STG) at Nikiski to take advantage of waste heat (formerly used by the now closed Agrium plant). This would greatly increase the electricity produced without burning any added fuel. In addition, a new natural gas fired generation facility would be installed in Soldotna to generate even more power. Finally, appropriate upgrades would be made to existing substations at each location. A pre-bid conference was held for interested vendors in November and bids are due back by January 15. HEA staff hopes to conduct bid evaluations and make a recommendation to the full Board by late January or early February.
None of this comes cheap. HEA will need to borrow as much as $130 million to complete all parts of this proposal. Watch for more information on this in coming updates.
Alaska Railbelt Regional Integrated Resource Plan (RIRP) Report
This study was commissioned by the Alaska Energy Authority to help assess and guide railbelt utility planning for the next 50 years. The report is long and comprehensive but, in addition to recommending that the Healy 2 plant remain mothballed, includes the following among its general recommendations:
1. The State should work closely with the utilities and other stakeholders to make a decision regarding the formation of GRETC [Greater Railbelt Energy and Transmission Company]and to develop the required governance plan, financial and capital improvement plan, capital management plan and transmission access plan, and address other matters related to the formation of the proposed regional entity.
2. The State should establish certain energy-related policies, including:
o The pursuit of large hydroelectric facilities
o DSM/EE [Demand Side Management/Energy Efficiency] program targets
o RPS (i.e., target for renewable resources), and the pursuit of wind, geothermal, and tidal...projects in addition to large hydroelectric projects
o System benefit charge to fund DSM/EE programs and or renewable projects
The whole report can be downloaded from the Alaska Energy Authority website (http://www.aidea.org/AEA/regionalintegratedresourceplan.html).
Monday, January 4, 2010
HEA Board Appointments on Fast Track
With the recent resignation of long-time HEA Board member Mike Pate, two of three southern Kenai Peninsula seats are vacant. The Board is moving fast to appoint replacements for Brian Hirsch and Mike Pate. With only Jim Levine left to represent HEA members from Kasilof south, the central peninsula now dominates HEA policy. Consequently, the six central peninsula Directors will determine who represents the interests of southern peninsula HEA members.
So far, all previous applicants for Brian Hirsch’s seat are being considered for the vacancies. HEA has also issued a call for others to apply by the end of this week -- Friday, January 8 by 5 PM. The Board plans to conduct interviews and make their decisions by the January 12 full Board meeting.
Given that the Holiday season still isn’t over for some HEA members, this schedule seems short. With all the seasonal celebrating it’s likely that some potentially excellent applicants aren’t even aware of this new opportunity to vie for a Board seat. At least one of the applicants already on the list is traveling and cannot be reached with notification that the appointment process has resumed.
Why not extended the deadline two weeks so that southern peninsula HEA members have more of an opportunity to see the best possible people are appointed to represent them on the HEA Board?
And why not consider throwing your hat in the ring? Applications are available on the HEA website (http://www.homerelectric.com/) or at HEA offices in Homer and Kenai. They must be returned by Friday, January 8, 2010 at 5 PM.
This and other important issues will be discussed at tomorrow’s (January 5) HEA Operations Committee meeting starting at 11 AM. Southern peninsula members can video conference from the Homer HEA offices. If you can’t attend why not take a few minutes to request that the Board extend the application deadline for a couple of weeks.
Deborah Debnam
debbie(email@)debnam.com / 907.262.9277
District 2 - Sterling; Term Expires 2010
Tim Evans
heatde(email@)gmail.com / 907.262.3734
District 2 - Sterling; Term Expires 2011
David B. Thomas
davidthomashea(email@)gmail.com / 907.283.4109
District 1 - Kenai; Term Expires 2011
Eugene "Jim" Levine
jlevine(email@)homerelectric.com / 907.299.0323
District 3 - Homer; Term Expires 2012
Jose "Tony" Garcia
tonygarcia43(email@)hotmail.com / 907.252.7790
District 1 - Nikiski; Term Expires 2010
Alan Bute
byrdave(email@)yahoo.com / 907.776.8115
District 1 - Kenai; Term Expires 2012
Ed Oberts
eoberts(email@)gci.net / 907.398.8039
District 2 - Soldotna; Term Expires 2012
So far, all previous applicants for Brian Hirsch’s seat are being considered for the vacancies. HEA has also issued a call for others to apply by the end of this week -- Friday, January 8 by 5 PM. The Board plans to conduct interviews and make their decisions by the January 12 full Board meeting.
Given that the Holiday season still isn’t over for some HEA members, this schedule seems short. With all the seasonal celebrating it’s likely that some potentially excellent applicants aren’t even aware of this new opportunity to vie for a Board seat. At least one of the applicants already on the list is traveling and cannot be reached with notification that the appointment process has resumed.
Why not extended the deadline two weeks so that southern peninsula HEA members have more of an opportunity to see the best possible people are appointed to represent them on the HEA Board?
And why not consider throwing your hat in the ring? Applications are available on the HEA website (http://www.homerelectric.com/) or at HEA offices in Homer and Kenai. They must be returned by Friday, January 8, 2010 at 5 PM.
This and other important issues will be discussed at tomorrow’s (January 5) HEA Operations Committee meeting starting at 11 AM. Southern peninsula members can video conference from the Homer HEA offices. If you can’t attend why not take a few minutes to request that the Board extend the application deadline for a couple of weeks.
Deborah Debnam
debbie(email@)debnam.com / 907.262.9277
District 2 - Sterling; Term Expires 2010
Tim Evans
heatde(email@)gmail.com / 907.262.3734
District 2 - Sterling; Term Expires 2011
David B. Thomas
davidthomashea(email@)gmail.com / 907.283.4109
District 1 - Kenai; Term Expires 2011
Eugene "Jim" Levine
jlevine(email@)homerelectric.com / 907.299.0323
District 3 - Homer; Term Expires 2012
Jose "Tony" Garcia
tonygarcia43(email@)hotmail.com / 907.252.7790
District 1 - Nikiski; Term Expires 2010
Alan Bute
byrdave(email@)yahoo.com / 907.776.8115
District 1 - Kenai; Term Expires 2012
Ed Oberts
eoberts(email@)gci.net / 907.398.8039
District 2 - Soldotna; Term Expires 2012
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