Forum for Homer Electric Association member/owners to post, discuss and comment on matters pertaining to the present and future operation and management of our member owned cooperative.
HEA/AEEC Meeting ChangeThis month's meetings are scheduled for Tuesday, November 6, 20129:00 AM -- Finance Committee 1:00 PM -- Operations and Special Projects
2013 Budget (finance committee meeting) Staff will present a Draft 2013 Budget for Board consideration in preparation for a November 27 budget workshop at 10 AM in the Kenai Board Room.
HEA/AEEC Loan Balances (finance committee meeting) There will also be discussion of the cooperatives' indebtedness as of September 30, 2012.
Changes to HEA/AEEC Meetings Framework (operations committee meeting) The Board is considering changing the times and format of future committee and Board meetings. One idea would involve combining AEEC committee with AEEC Board meetings and HEA committee with HEA Board meetings. The two would then be scheduled during the work day to eliminate the 5:30 evening meeting time.
Alaska Railbelt Cooperative Transmission & Electric Company (operations committee meeting) There also will be an update on ARCTEC and HEA participation.
Natural Gas Supply (HEA Board meeting) HEA Member Tom Patmor will make a presentation on the Natural Gas Supply issue.
HEA Energy and Conservation Fair
Saturday November 3, 2012, 10:00 AM to 4:00 PM, Kenai Middle School
Saturday November 10, 2012, 10:00 AM to 4:00 PM, West Homer
Elementary School
Workshops, demonstrations, speakers, and exhibitors related to all
aspects of energy alternatives and conservation.
Rate Increase
As of October 1 the Cost of Power Adjustment (COPA) increased from
3.603 to 4.884 cents per kWh. This raised your blended rate from
16.362 to 17.643 cents/kWh, or about $8.07 for a member using 630
kWh/month.The increase is due to lower than anticipated power
availability from Bradley Lake due to maintenance work and
improvements requiring longer than expected, increasing purchase of
more expensive natural gas based energy.
Expected Rate Increase
If HEA decides to participate in Chugach Electric Association's new
Southcentral Power Project, our wholesale cost of power is expected
to increase by almost 5%. Pending RCA approval, the increase could
be expected as of January 1, 2013. This is a first taste of how
construction of new generation assets will begin increasing your
electric rates in the near future.
HEA Line Extension Change
A Design and Engineering Agreement and Construction Agreement along
with associated language for the proposed new line extension tariff
has been filed with the RCA. A decision was expected as of October
8, 2012 but there is no word from HEA yet. Go to
http://www.homerelectric.com/NewsEvents/CurrentNews/tabid/125/Default.aspx
to download highlights of the proposed changes and RCA/HEA filing
documents.
10:00 AM -- Operations and Special Projects
1:00 PM -- Finance Committee
3:00 PM -- AEEC Board Meeting
5:30 PM -- HEA Board Meeting
Warning:On the meeting calendar page of the HEA
website when you "hover" the cursor over a meeting title an
incorrect time is displayed. For example, 9:00 AM will be shown as
the Operations Committee starting time. Click on the meeting title
to get the right time.
.
There are sometimes last minute changes in scheduling, so check the
website.
Your HEA Account Number is Being Changed
To accommodate the growing number of HEA members all account numbers
will gain an additional digit. For example, if your account number
was 12345-01 it will now be 12345-001. Check your next HEA statement
for your new number and be sure to use it when referring to your
account. Don't forget to notify your bank or other bill pay service
of the change too. Contact HEA Member Services if you have questions
(907-283-5831, 907-235-8551, 800-478-8551).
AEEC Meeting Minutes Now Available
The Alaska Electric & Energy Cooperative, Inc. is HEA's
generation and transmission arm. HEA and AEEC Directors are the same
people. Most of the major expenses for the Independent Light project
have been incurred in the name of AEEC. While HEA Board meeting
minutes have been posted for some time, AEEC meeting minutes were
not available until now. HEA Members Forum has encouraged HEA staff
and Board to post these and other information about AEEC for at
least two years. Unfortunately, the minutes do not reflect how
individual Directors have voted on various resolutions or include
copies of those documents. Without such it is difficult for HEA
members to evaluate Director performance but one can at lease get a
sense of what transpired and when specific decisions were made. So,
Kudos to Directors Debbie Debnam and Jim Levine for helping HEA take
this step toward somewhat greater transparency. Go to http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/AEECMinutes/tabid/302/Default.aspx
for the minutes.
Monthly HEA Manager's Reports
Remember that you can download copies of Brad Janorschke's short
monthly summary of recent coop developments and actions. Each
report serves as the core of an update presented to Directors at the
monthly HEA/AEEC meetings. While not as detailed as the in-person
reports, website versions provide some useful information for any
HEA member interested in tracking what management has to say about
the coop. Go to http://www.homerelectric.com/BoardofDirectorsElections/BoardMeetingInformation/ManagersReports/tabid/222/Default.aspx
and click on the date of the report(s) you want.
New HEA Rate Plan Coming January 1
There will be a single energy rate for all residential members with
a new 150 kWh minimum charge and the present $11 per month customer
charge will increase to $15. The HEA billing system may not be
ready by then to accommodate the new minimum energy charge. In that
case HEA will request a waiver from the Regulatory Commission of
Alaska to postpone adding the energy minimum until billing software
upgrades are completed.
Grant Lake/ Grant Creek Hydroelectric Project Over the last four years HEA members have been pressing
the coop to add renewable technology options to our energy
"portfolio." HEA management and engineers have not appeared overly
eager, however, dragging their feet particularly hard with respect
to wind power. The controversial Grant Lake/Grant Creek small hydro
project is HEA's first serious effort to respond to member desire
for renewable energy. The project has been in the news quite a bit
-- especially in recent months. Field studies must continue through
2012 and until they are completed a construction license application
can't be submitted to the Federal Energy Regulatory Commission
(FERC). Nonetheless, Kenai Hydro (HEA) recently submitted a grant
request to the Alaska Energy Authority for construction money. That
strikes some HEA members as proof that management plans to proceed
with the project regardless of what the study data indicates.
General Manager Brad Janorschke claims that nothing could be farther
from the truth. In a September newspaper opinion piece he stated
that, "If the studies show that there would be a serious impact to
the overall health of the Kenai River watershed, HEA will not
proceed with the project." Critics of the project find that
difficult to believe, given the request to AEA for construction
funds. And many feel the FERC permitting process is more about
enabling projects than actually evaluating them on their merits.
While HEA members seem to want our coop to embrace renewable
technology it's probably not just for the bragging rights. Most
likely they want to see renewable projects make economic, social,
and environmental sense. If built, will the Grant Lake project
ultimately prove harmful to the Kenai River watershed ecosystem and
the economy of the surrounding area? Or can the project be designed,
built, and operated so it doesn't cause undue harm? And either way,
will the ultimate cost per kWh be competitive with other options? If
you don't know enough about this project to have an opinion why not
do a little reading? Then let your HEA Board know how you feel.
2011 Annual HEA Meeting of the Members
Thursday, May 5 at Soldotna High School
Registration 4:30 PM - 6:30 PM, Membership Meeting Starts 6:00 PM
Other May HEA/AEEC Meetings will take place at the Homer Offices, 3977 Lake Street. Video conferencing is available in the Kenai Offices at 280 Airport Way.
District 2: Dick Waisanen of Soldotna District 3: Malcolm Gaylord of Homer
HEA must receive mail-in ballots by 4:00 PM, May 4. Members may vote in person at the May 5 Annual Meeting at the Soldotna High School but will need to register there. You can only vote for a candidate in the district where you live.
Rate Decoupling and Energy Efficiency and Conservation Programs Technical Conference April 19 &20, 9:00 a.m. to 4:00 p.m. East Hearing Room of the Regulatory Commission of Alaska 701 West Eighth Avenue, Suite 300, Anchorage, Alaska 99501
This technical conference will feature a presentation on the topics of rate decoupling and energy efficiency and conservation programs by Richard Sedano, a Principal and Director of The Regulatory Assistance Project. The presentation on rate decoupling is tentatively scheduled for Tuesday, April 19th, with the presentation on energy efficiency and conservation programs to follow on Wednesday, April 20th. Any entity interested in reviewing transcripts of this technical conference may consult the Commission’s website at http://rca.alaska.gov and type in Docket “I-11-004” in the Find a Matter search box.
Don't Forget the 2011 Business of Clean Energy in Alaska Conference April 28 & 29 at the Dena'ina Center in Anchorage
For more information, go to www.BCEAconference.com, or contact Renewable Energy Alaska Project (REAP) at info@realaska.org or 907-929-7770.
Regulatory Commission of Alaska Adopts Revised Net Metering Interconnection Rules Draft rules from January 2011 (RCA Docket R-09-02) were slightly modified to resolve potential conflicts between utility and customer over an "external disconnect switch." In general, these regulations appear to be reasonable and should not impose unnecessary expense to HEA members who wish to participate in net metering. The regulations go to the Department of Law for review but should be finalized without major change by May 5, 2011.
Regulatory Commission of Alaska Reauthorized -- But Only for 2 Years The Alaska Senate passed HB 24 on April 17, 2011 by unanimous vote, extending the RCA through June 2013. The Senate modified language in HB 24 to require the RCA to provide the Legislature with a proposal to "reduce the statutory timeline for tariff filings that change a utility's revenue requirement or rate design." This must be done by January 17, 2012. Clearly this is a result of utility lobbying to make it easier and faster to increase your rates.
Independent Light $$ A Groundbreaking Ceremony is slated for the Nikiski Combined Cycle Conversion (NCCC) Project April 28, 2011, at 10:00 a.m. At the ceremony, HEA will announce the award of the project contractor and will offer Nikiski Plant tours for anyone interested. If you are interested in attending but don't receive an invitation, contact Joe Gallagher at jgallagher@homerelectric.com.
Cook Inlet Tidal Power
Ocean Renewable Power Company (ORPC) and Homer Electric Association (HEA) announced plans to collaborate on a hydrokinetic power pilot project near the East Forelands. ORPC has been developing unique tidal power systems and projects since 2004. ORPC has a preliminary permit from the Federal Energy Regulatory Commission (FERC) that allows three years to carry out studies and then submit a license application for an actual pilot project of up to 5 megawatts (HEA’s average load is currently 60 megawatts). It's possible that one or more 150-kilowatt generators could be deployed for testing in the inlet as early as 2013. HEA and ORPC are attempting to draft a Letter of Intent which defines the project scope and responsibilities.
HEA Rate Plan The RCA has granted Land’s End Acquisition Corporation (LEAC) request to intervene in hearings on HEA's plan to restructure electric rates. Remember, the biggest sticking point is the proposed "minimum energy charge" which seems to be in conflict with Alaska Administrative Code. The RCA requested that previous hearing dates be changed to accommodate the Commission’s schedule. Intervening parties, the Attorney General’s Office (RAPA), and HEA have presented a mutually agreed upon revised hearing schedule for RCA consideration. The proposed final hearing would be during the week of September 26th. HEA is waiting for RAPA to reply to its legal brief on the proposed minimum energy charge.
"Watt’s New" -- From HEA This is a new email public relations effort to deliver up-to-date news to members. It will encourage members to visit the HEA website where more detailed information can be found. The first “Watt’s New” blitz was sent to 7,900 members on April 1 and will be disseminated at least once a month -- more frequently depending on HEA events. It seems like a good idea. Contact Sandra at sghromley@homerelectric.com or 907-283-5831 if you're interested in signing on.
March HEA/AEEC Meetings
These meetings will take place in Kenai at the Central Peninsula Offices, 280 Airport Way. Video conferencing is available in the Homer Offices at 3977 Lake Street.
Tuesday, March 1, 2011 (tentative)
2:00 PM -- Operations and Special Projects
2011 HEA Board Elections
How satisfied you are with your HEA district’s HEA Director? Do you want to him to serve another 3 year term or would you prefer to elect someone new? Maybe you would even like to run yourself. Members interested in being on the ballot must fill out a candidacy packet and gather at least 15 signatures from valid Homer Electric members living in his or her district. Packets are available at HEA offices in Kenai and Homer and on-line at www.homerelectric.com. The deadline to submit them is 5 PM on March 4, 2011.
Remember, Directors are elected by district -- you can only run or vote for a candidate in the district where you live. This year incumbents David Thomas (District 1, Kenai-Nikiski), Tim Evans (District 2, Soldotna –Sterling - Kasilof), and Mike Wiley (District 3, Ninilchik-Homer-Seldovia) must run to stay on the HEA Board. District boundaries were changed recently -- if you aren't sure of your district, maps are available on-line at www.homerelectric.com/Board of Directors & Elections/District Map.
Ballots will be mailed to you on April 1, 2011. They can be returned by mail or you can vote in person at the HEA annual meeting on May 5 at the Soldotna High School. There will be no ballot propositions included on this year's ballot.
Comment on Net Metering Interconnection Rules by March 11
Since March 2009 the Regulatory Commission of Alaska (RCA) has been considering potential rules governing interconnection of solar arrays, wind turbines and other customer owned generation technology to electric utility systems (Docket R-09-2). Your final opportunity for input has been scheduled and the deadline for comment is 4:00 PM on March 11, 2011. Comments may be submitted via the Internet or by mail. Following a number of technical conferences and public comment periods RCA staff recently produced draft regulations for possible adoption (attached). Unfortunately, utilities in other states have sometimes made such rules unnecessarily burdensome as a way to discourage net metering. While the RCA staff proposal doesn't seem aimed at doing so, some people feel its insurance and disconnect location requirements might impose costs that would render some net metering installations unaffordable. You can find more information and follow this issue by visiting http://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx at the RCA website.
Support the Regulatory Commission of Alaska (RCA)
The RCA is the main agency looking out for utility ratepayers interests but it's scheduled to terminate on June 30, 2011 unless the present Alaska Legislature votes to keep it going. In it's October 16, 2010 audit report the Legislative Budget and Audit Committee found that the RCA does indeed fulfill an important public need and so recommends that it be extended through June 30, 2019. Go to http://www.legaudit.state.ak.us/pages/audits/2011/pdf/20067rpt.pdf for copy of the report. HB 24 (Extend Regulatory Commission of Alaska Sunset) has been introduced in the State House and referred to Labor and Commerce & Finance Committees. It wouldn't hurt to contact some key Legislators and put in a good word for passage of HB 24 to extend the RCA.
Finance Committee
Co-Chairmen: Representative_Bill_Stoltze ( email at @ ) legis.state.ak.us
Co-Chairmen: Representative_Bill_Thomas ( email at @ ) legis.state.ak.us
Vice-Chair: Representative_Anna_Fairclough ( email at @ ) legis.state.ak.us
Labor & Commerce Committee
Chairman: Representative_Kurt_Olson ( email at @ ) legis.state.ak.us
Vice-Chair: Representative_Craig_Johnson ( email at @ ) legis.state.ak.us
Member: Representative_Paul_Seaton ( email at @ ) legis.state.ak.us
HEA/AEEC Proposed Rate Plan
The RCA has scheduled a hearing on HEA's proposed rate plan for Oct. 24 at 9 a.m. in Anchorage. There will be no interim rate change, as originally requested by HEA. You will see the change in your bill when and if the plan is approved by the RCA. Land's End Acquisition Corporation filed a request to intervene (formally participate) in the process and HEA filed a motion opposing that. The RCA has not decided whether or not to approve Land's End's request. Land's End's John Faulkner contends HEA hasn't adequately explained the need for or specific details of the proposed rate changes. If you want more detail, this and related documents are available on the RCA website at http://rca.alaska.gov/RCAWeb/Entity/EntityDetails.aspx?id=883fd287-5437-45c3-ac93-6611db2d87b0.
Independent Light $$
There have been no significant developments since the January 23 HEAMF update. Work at all sites is progressing more or less as planned. Alaska Energy & Electric Cooperative Resolutions 01.2011.05 (Procurement of Emergency Diesel Generator), 01.2011.06 (Procurement of Water Treatment Equipment), and 01.2011.07 (Wholesale Power and Resource Agreement Amendment were approved at the February 8 HEA/AEEC meetings.
Alaska Railbelt Cooperative Transmission and Energy Cooperative (ARCTEC)
This newly formed collaboration between HEA, Chugach Electric Association, Matanuska Electric Association, Golden Valley Electric Association, and the City of Seward has developed a draft $91,500,000 Capital Budget Request for state funding.
Bradley Lake/Battle Creek Diversion (increase power output) $20,000,000
Mount Spurr Geothermal Commercial Well Test $6,000,000
Seward Power Plant Integration $4,000,000
Assorted Transmission Line Upgrades and Repairs $56,500,000
Railbelt Integration of Renewables Scoping Study $5,000,000
According the HEA General Manager Brad Janorschke, ARCTEC's number one priority is the Susitna hydroelectric project, number two being ORMAT's Mt. Spurr geothermal project.
What About Smaller Renewable Energy Projects?
At the February 8 HEA/AEEC meetings Director Bill Fry Questioned General Manager Janorschke about the apparent slow pace of the cooperative's embrace of small scale renewable energy projects. Directors Jim Levine and Tim Evans added their voices to Fry's question, while Director Mike Wiley expressed his own desire to see more focus on energy efficiency and conservation. Janorschke reviewed the continuing effort to move forward with the Grant Lake small hydroelectric project through expanded studies and design modifications, in part based upon concerns raised by opponents of the the plan. For example, recent design modifications could result in reduction of dam height and minimization of lake level fluctuations to eleven feet. He also told Directors that HEA remains open to participation in potential tidal power pilot projects. On the other hand, it was clear from this discussion that Janorschke continues to have a negative view of wind projects such as Fire Island and Kenai Winds. Director Evans asked if ARCTEC might help with smaller projects but Janorschke and Director Debbie Debnam didn't think it was likely. In the end, it was decided to add the issue of renewable energy and energy efficiency/conservation to the agenda for the upcoming strategic planning session this spring.
2011 Financial Audit
HEA/AEEC will be going through auditing this month. Results will be reported to the Board in March. Contact Finance Director Carrie Buckley at cbuckley ( email at @ ) homerelectric.com for more information on this process.
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.
All meetings will take place in the Board room of the HEA offices in Homer at 3977 Lake Street. Video conferencing is available at the HEA offices in Kenai at 280 Airport Way. Meeting agendas can be found on the HEA website at http://www.homerelectric.com/. Contact Joe Gallagher at jgallagher (email at) homerelectric.com or 907-283-2324 for more information.
Tuesday, August 17, 2010 10:00 AM -- HEA Operations Committee Meeting 12:30 PM -- HEA Finacne Committee Meeting 3:00 PM -- AEEC Board Meeting 5:30 PM -- HEA Board Meeting
Wednesday, August 18, 2010 9:00 AM Final Ratemaking Presentation by Consulting Firm RW Beck
HEA Members 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.
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
Wednesday May 6th, 2009 Homer Islands and Ocean Visitors Center 7-9 PM
Join Goldman Prize award winner Judy Bonds and acclaimed lawyer Joe Lovett as they share lessons learned from fighting the destructive impacts of coal strip mining and coal power plants in Appalachia and the Southeast United States. Bonds and Lovett will pull back the curtain on the myth of “clean coal.”
Get information and tools needed to protect our lands, waters, fisheries and sustainable jobs.
Invite family and friends along to hear these two remarkable speakers discuss the true costs of coal!
HEA Board candidate Jim Levine shares HEA Members Forum’s two major objectives:
1. Replace the present policy of exclusion and secrecy by HEA Management and Board with open governance offering greater opportunity for member participation.
2. Move HEA toward a fossil fuel free grid through increased efficiency, embrace of renewable energy technology, prompt phase-out of natural gas & oil, rejection of coal, and greater collaboration with other “railbelt” utilities.
Jim also has the professional expertise and organizational experience to effectively advocate for us during HEA Board policy discussions.
If you haven’t already done so, you can vote for Jim Levine at the Annual HEA Meeting on Thursday, May 7 at Homer High School.
We need media coverage about permitting problems with Healy Coal Plant No. 2 through letters to the editor and op-eds from citizens who want to assure that Healy’s operations will not harm air quality or pose a danger to public health.
Messages should not focus on wholescale abandonment of the project, but rather that, if Healy 2 ever does start up, it must have proper technology and its operations must be consistent with Clean Air Act requirements in order to protect human health and safety and environmental quality.
Please write letters to the editor NOW (talking points below).
Asking DEC and EPA to make sure the Healy permits are stringent enough to comply with the Clean Air Act and protect public health and the environment.
Demanding that the plant not be allowed to renew and apply its outdated existing permit, which was granted 10 years ago, to a different plant, with different combustion technologies.
Demanding that GVEA and AIDEA apply for new permits that comply with Clean Air Act requirements in the interests of public health and the environment.
Alaskans have a right to breathe clean air. Healy was designed to burn waste coal under a permit that was granted more than 10 years ago. The only way to ensure that air quality and public health are protected is to subject the plant to a new permitting process that fully analyzes the proposal and ensures current, more-protective standards are met. Coal is dirty. Burning coal releases mercury and carbon dioxide emissions into our air, into our lungs, and into our food supply. GVEA is taking the position that no new permit is required to begin operating Healy Coal Plant No. 2. Without proper permitting, air quality and public health will be compromised.
The Healy Plant has been closed for ten years. The technology is questionable. It’s just common sense to ask to ensure that public health, clean air and clean water are protected from outdated technology. The Healy plant has been closed for 10 years and its decade-old technology was not designed to mitigate the more recent health concerns of mercury and carbon dioxide emissions. Healy’s technology was not clean 10 years ago – that’s part of the reason the plant never started up full operations –and is not clean today. Under these circumstances, it is logical that new permits are issued before this plant can operate safely.
DEC has an obligation to make sure its permits protect public health and ensure clean air and water . DEC is obligated to protect public health and the environment through its permitting process for the Healy Coal Plant No. 2. Before the plant is allowed to operate, DEC must carefully review its permits to make sure air quality protections under the Clean Air Act are guaranteed. The Healy plant can pull the switch only when it can be shown that its permits meet Clean Air Act standards and requirement.
Communities and park lands are at risk from air pollution unless we make sure Healy runs clean. GVEA and AIDEA have a moral obligation to ensure that Healy is properly permitted in a manner that protects public health – particularly pregnant women, the young and the elderly – clean air and clean water from mercury emissions and other toxic pollutants.
GVEA will pass additional costs of start up and environmental compliance onto ratepayers. Ratepayers should know how much their rates will go up and what they will have to pay for permitting the plant to comply with new environmental standards, and other start up costs. Ratepayers have the right to know how their rates will be affected before HEA commits to a power sharing agreement.
It's your chance to reform the way our coop does business. Take time to learn which candidates share your concerns.
District 1: Alan J. Bute, Andrew Patrick District 2: Jim Fassler, Terrance L. Johnson, Edward (Ed) V. Oberts, William (Bill) H. Tappan (incumbent) District 3: Stephen (Steve) A. Franklin, Eugene (Jim) Levine, Peter (Pete) Roberts, Donald P. Seelinger (incumbent), Doug Stark (ballot statements available at http://www.homerelectric.com/)
Which candidates support HEA Members Forum objectives?
Let's take a look, starting with District 3 (Clam Gulch, south). We'll look at Districts 1 & 2 soon. Jim Levine says:
To achieve our goal of stable rates and clean, reliable energy we must eliminate our dependence on fossil fuels.
Jim Levine favors: • Developing a diversified mix of renewables • HEA taking a more active role to promote energy conservation • Establishing policies for openness and transparency.
Jim Levine clearly shares HEAMF concerns and priorities!
Pasted below is a brief message I received from Jim. My apologies if you already received it directly from him.
As some of you are aware, I am running for the Homer Electric Association Board of Directors position. I feel very strongly that HEA should be taking a more in depth look at renewable energy generation systems before getting involved in a coal generation system in Healy. I have put together a website, LevineForHEA.com, that includes a few papers that I have prepared outlining my position regarding electrical power generation, and links to sites that show some of the potential we have for renewable energy systems here in Homer. In preparing for this election I have come to realize that we have so much potential to produce, and conserve, so much energy right here on the Kenai Peninsula. I have also included a site that shows one small portion of the problems that are posed by coal generation systems.
If you would like to be a part of this campaign, please call me at 299-0323, or email me at jlevine(emailAT)jaybrant.com. I would be glad to talk to you about all the exciting possibilities for the Kenai Peninsula in regards to electrical power generation.
HEA Board Candidate Jim Levine Needs a Campaign Manager.
This will be a paid, temporary, part-time position with fluctuating hours.
Good writing, speaking, and computer skills are required. Community organizing experience would be an asset.
Jim is running for the HEA Board District 3 seat -- everything south of Kasilof
Jim advocates finding new and better ways to provide electricity to HEA members as part of a coordinated strategy to bring rates under control. He supports greater openness and transparency in the governance of our coop.
Tomorrow's KBBI Coffee Table Program Will Feature HEA Management's Perspective 9:00 AM - 10:00 AM Wednesday, February 25, 2009
KBBI-AM 890, Homer KDLL-FM 91.9, Kenai
HEA General Manager Brad Janorschke and Public Relations Coordinator Joe Gallagher will be the only guests.
KBBI News Director Casey Kelly chose not to invite any guests with differing perspectives:
I made that decision because there are so many issues surrounding HEA right now. I felt like the best thing to do was to have Brad come on and answer questions about everything from the rate increase to Healy to the power supply study to board elections and member relations.
But the fact is, no one is being given a soapbox. It's my position that a talk show is a dialogue between host, guests, callers, and listeners. No one element is given greater weight than another.
Nobody will be there to represent your concerns -- it's up to you to call in and express yourself.
Independent Power Source Study: HEA should stop negotiations with GVEA for a Healy 2 Power Sales Agreement pending the outcome of the recently announced power source study.
Right-to-Know: HEA is a member-owned cooperative. Members have a right to know about HEA actions that will affect our utility rates. HEA must improve the ways members are informed. Why weren’t recent huge, mid-winter, rate hikes announced farther in advance? How come rate increases weren’t made in small increments over several months? Is HEA considering salary and benefits adjustments for its top management? Why do closed-door power sales agreement negotiations between HEA and GVEA continue? How will we be kept informed of progress and findings of the power source study and other projects?
High Risk: The Healy Coal Plant faces significant and unknown costs from anticipated greenhouse gas and mercury rules. The Obama Administration is committed to enacting new rules that will limit emissions of greenhouse gasses, and the EPA is re-writing new, tougher rules on mercury emissions. These new rules will add significant Healy 2 startup and operating costs while increasing liabilities from litigation. AIDEA and HEA refuse to consider any of this in estimating costs. Such factors must be quantified before HEA commits us to any contract with GVEA.
Mounting Cost: The Healy Coal Plant is a black hole for public money. Test runs in 1999 proved the facility could not provide reliable, “clean” power at a competitive cost. Despite this fact, the recent agreement on Healy 2 will retain its faulty technology. After pouring $300 million into this coal experiment how much more state money will a restart really take? The legislature will soon consider a bill to consolidate all railbelt utilities. Does HEA support this approach? What would consolidation mean for the Healy 2 agreement? Higher Rates: The Healy Coal Plant is likely to increase your electricity costs. HEA has lamented the 30 year contract with Chugach for natural gas since long before the gas cost spike. We got stuck with that contract because HEA thought gas would always be plentiful and cheap. Why does HEA think that, in the face of rising international demand, coal prices won't increase? Alaskan coal deposits may be vast but coal prices have never been stable. That’s because international markets dictate Alaska coal prices. International coal traders predict a 20% to 30% increase in just the coming six months. Under the current terms, HEA ratepayers will be forced to buy 1⁄2 the power from Healy, regardless of the cost. Stable Rates: HEA must look forward to renewable power, not backwards to coal. Alaska boasts enormous renewable energy resources that promise clean, fixed-cost power and sustainable jobs. After construction costs, renewable energy systems produce power on a fixed-cost basis, avoiding the market swings and pricet increases of fossil fuel. The Bradley Lake hydropower facility in Kachemak Bay is an excellent example, producing power at less than half the rate GVEA predicts for Healy 2. And it’s clean, reliable, fixed-cost power indefinitely. What ever happened to the idea of a gas-fired turbine on the Kenai Peninsula to bridge the gap until we can develop our renewable energy sources?
Net Metering would allow you to sell excess energy produced by your own solar panels, wind turbine, or other renewable technology back to HEA at the retail rate. Unlike the "SNAP" program, no member contributions are required.
Draft RCA Net Metering proposal: Size Limit For Individual Renewable Energy System: 25 KW Overall Renewable Energy Systems Limit Per Utility: 1% of utility’s peak demand Net Metering Accounting Period: Monthly* Treatment of Monthly Net Excess Power: Paid at utility’s non-firm avoided cost* Renewable Energy System Types Allowed: Solar, Wind, Hydro, Biomass, Tidal, Ocean Thermal, Wave, Landfill Gas
The RCA will only establish an Alaskan Net Metering rule if ratepayers demand it.
*Monthly accounting is a bad idea. Excess energy production should be applied over a twelve month period. A solar array will produce most energy in late spring and summer when days are longest. Monthly won't let you use that excess production to offset fall and winter consumption.
*Payment at the utility’s “non-firm avoided cost” is a bad idea too. The utility charges you retail for the power but only credits your excess production at the wholesale price.
“Technical” conferences have been scheduled by the RCA for: March 4, 2009 (Net Metering Standards, Docket R-09-1) and March 18, 2009 (Interconnection Standards, Docket R-09-2). Both will be held at the Commission’s East Hearing Room, suite 300, 701 West Eighth Avenue in Anchorage.
Persons planning to participate in one or both conference must file notice of intent by: 4:00 PM, February 27, 2009 for Net Metering Standards, Docket R-09-1 4:00 PM, March 13, 2009 for Interconnection Standards, Docket R-09-2 Notice must indicate whether you intend to appear in person or telephonically. Contact Joyce McGowan at 1-800-390-2782 or send to rca.mail@alaska.gov at least three days before the technical conference.
For More Information: Regulatory Commission of Alaska
701 West Eighth Avenue, Suite 300 Anchorage, Alaska 99501-3469 In Anchorage: (907) 276-6222 Toll Free: 1-800-390-2782 (outside Anchorage, within Alaska)
After a rather contentious start, Tuesday’s HEA Board meeting resulted in action to respond to member concerns over the proposed Healy 2 deal with AIDEA and GVEA. At least 55 members crowded Homer and Kenai HEA offices to express their views. In over two hours of testimony, all but three or four opposed involvement with Healy 2 for a variety of reasons, from environmental to public health and economic questions. Many thanks to all of you who were able to participate and to everyone who sent comments to the Board.
It was a long meeting but, in the end, the HEA Board passed a motion by David Thomas to issue an RFP for a comprehensive, third-party, revised power supply study. It will examine Healy in relationship to all other power options available for meeting HEA’s power needs. Cost/benefit assessment of the various options will be an element of this study. Future fuel costs, regulatory issues, reliability, and potential impact on rates will be among the things considered.
In response to a recommendation by General Manager Brad Janorschke, this process will be conducted by the Generation Committee. Two Board members and three member/ratepayer representatives (1 from each Board district) will work with HEA staff to develop and oversee the RFP and the estimated six month power supply study process.
Unfortunately, the Board did not preclude continuing contract negotiations for a Power Sales Agreement between HEA and GVEA. Still, it would be hard to imagine HEA attempting to sign such a document absent results of the completed study.
Many significant issues remain regarding the way our electrical cooperative does business but HEA Board members deserve words of encouragement for taking a significant step in response to member concerns.
HEA 3977 Lake Street, Homer, AK 99603 (907) 235-8167 280 Airport Way, Kenai, AK 99611 (907) 283-5831
PRESS RELEASE - February 11, 2009
Homer Electric to Study Power Supply Options
The Homer Electric Board of Directors will be seeking proposals from power supply consultants to evaluate all possible power generation sources that may be available to the cooperative. The decision was made at the February 10th board meeting, following nearly two hours of comments from Homer Electric members.
The goal of the independent, third-party study will be to provide the HEA board with a complete cost-benefit analysis of different generation sources including natural gas, coal, and various types of renewable energy.
The study will be coordinated by the Homer Electric Board of Directors, with input from three members of the cooperative. The board will select a member from each of the three districts in the cooperative to participate in the design and implementation of the power supply study.
Board President Debbie Debnam said the results of the power supply study will be critical to determining HEA’s future power generation decisions.
"The Homer Electric board is committed to finding a mix of generation sources that will provide our members with reliable, affordable energy. We need to know, as best as possible, what the choices are and what each of them will mean to our rates. This study will give us direction on how to proceed with some very important decisions," said Debnam.
The timeline for completion of the power supply study is approximately six months, although it is possible it could be completed earlier.
There were several comments at Tuesday night’s board meeting regarding the possibility of Homer Electric purchasing power from the Healy Clean Coal Project (HCCP).
Homer Electric recently approved a Term Sheet with the state’s Alaska Industrial Development and Export Authority and Golden Valley Electric Association to purchase half of the power from HCCP, but a binding Power Sales Agreement has not been negotiated.
"The goal of the power supply study is to find out what our best options are. The study will consider all factors involved in power production, including possible future fuel costs, regulatory issues, reliability, and most importantly, the impact it will have on the rates paid by our members," said Debnam.
Debnam said the board hopes to be able to send out a request of proposals for a power supply study by the end of February.
For additional information regarding this press release, please contact Joe Gallagher, HEA public relations coordinator, at 907-283-2324
AIDEA gets rid of a costly white elephant. GVEA gets another coal plant. HEA members get to pay the bills.
Take 3 steps to avoid unnecessary rate hikes:
1. Contact HEA Board members. Tell them you don't want them to sign a contract with AIDEA and GVEA under terms they approved last month.
Debbie Debnam President (Sterling): 262-9277 Donald Seelinger, Secretary/Treasurer (Seldovia): 399-7573 Bruce Passe, Deputy Secretary (Kenai): 283-4617 William "Bill" Tappan (Kenai): tappassoc (EMAIL@)acsalaska.net; 260-6961 Tim Evans (Kenai): heatde (EMAIL@) gmail.com; 262-3734 Jose (Tony) Garcia (Nikiski): 394-2489 Brad Janorschke, General Manager: bjanorschke (EMAIL@) homerelectric.com; 235-8551
2. Write a letter to the editors. Tell Peninsula newspapers why you oppose the proposed Healy 2 deal.
Peninsula Clarion, Anderson, Dori Lynn (Editor), dorilynn.anderson(EMAIL@)peninsulaclarion.com Homer News, Letters to the Editor, letters(EMAIL@)homernews.com Homer Tribune, Letters to the Editor, letters(EMAIL@)homertribune.com Seward Phoenix Log, Cinthia Ritchie, critchie(EMAIL@)alaskanewspapers.com Redoubt Reporter, Jenny Neyman, redoubtreporter(EMAIL@)alaska.net
3. Plan to attend the February 10 HEA Board meeting. Bring your friends and neighbors. The meeting will be at 280 Airport Way in Kenai (5:30 PM). It will be video conferenced to the Homer office.
HEA General Manager Brad Janorschke claims the plant will produce power at a competitive price but there has been no third party assessment of:
Technical feasibility Healy 2 relative to other power source options available to HEA Potential costs and benefits of the proposed agreement
There is nothing to support Janorschke’s assertion.
