March 24 at 3pm, House Special Committee on Energy
HB 31 “An Act relating to net energy metering..."
Net metering advocates need to testify in favor of this bill's strong points and against its weakness. You can testify at the Homer Legislative Affairs office. Call the Kenai LIO (907-283-2030) if you would like to attend there. Or call 1-888-295-4546 when the meeting starts and explain that you are interested in testifying on HB 31.
SUPPORT An annual accounting period over monthly accounting to maximize benefit from renewable energy installations.
OPPOSE The exemption of Rural Electrical Cooperatives pending member approval.
ENCOURAGE In creasing the installation size limit from 25 KW to 100 KW to better accommodate participation by businesses. Final language that will establish true net metering for all railbelt utilities in a timely fashion.
Additional Info
HB 31 is one of two Net Metering Bills (the other is HB 66) brought before the House of Representatives.
*Negatives of HB 31*
HB 31 UNDERMINES the momentum toward net metering in AK by exempting electric coops from the bill's net metering rule. Many electric utilities in Alaska, including the largest ones, are coops. Electric coops are key to the effectiveness of the rule and need to be included. (The coops can waive the exemption, but only after the membership takes a vote, which can't happen until the RCA enacts a regulation setting forth the procedure for such a vote. All this will waste ratepayers' and RCA's time while delaying any decision on net metering for years.)
HB 31 also exempts utilities that generate 100% of power with alternative energy systems - ie exempts southeast utilities using hydro. Southeast residents have also sought the benefits of net metering and should not be excluded regardless of their utilities' source of power.
*Positives of HB31*
Annual accounting period (which allows a better payback on renewable systems than, say, a monthly accounting period). With annual accounting, excess generation from wind turbines during high seasonal wind cycles or from solar arrays during sunny seasons can offset lower production during periods of low wind or shorter days.
Unlike HB 66, HB 31 does not have a 1% aggregate limit on net metered generation. (This is a feature that the utilities tend to like because it limits thetotal number/power generation of net metering participants).
Tuesday, March 24, 2009
Friday, February 27, 2009
Want to Help Reform HEA and Get Paid for It?
HEA Board Candidate Jim Levine Needs a Campaign Manager.
This will be a paid, temporary, part-time position with fluctuating hours.
Good writing, speaking, and computer skills are required. Community organizing experience would be an asset.
Jim is running for the HEA Board District 3 seat -- everything south of Kasilof
Jim advocates finding new and better ways to provide electricity to HEA members as part of a coordinated strategy to bring rates under control. He supports greater openness and transparency in the governance of our coop.
Contact Jim Levine for more information: 299-0323, jlevine(emailAT)jaybrant.com
If you're not interested, please pass this information on to people you know.
This will be a paid, temporary, part-time position with fluctuating hours.
Good writing, speaking, and computer skills are required. Community organizing experience would be an asset.
Jim is running for the HEA Board District 3 seat -- everything south of Kasilof
Jim advocates finding new and better ways to provide electricity to HEA members as part of a coordinated strategy to bring rates under control. He supports greater openness and transparency in the governance of our coop.
Contact Jim Levine for more information: 299-0323, jlevine(emailAT)jaybrant.com
If you're not interested, please pass this information on to people you know.
Tuesday, February 24, 2009
KBBI Coffee Table February 25th
Tomorrow's KBBI Coffee Table Program Will Feature HEA Management's Perspective
9:00 AM - 10:00 AM
Wednesday, February 25, 2009
KBBI-AM 890, Homer
KDLL-FM 91.9, Kenai
HEA General Manager Brad Janorschke and Public Relations Coordinator Joe Gallagher will be the only guests.
KBBI News Director Casey Kelly chose not to invite any guests with differing perspectives:
I made that decision because there are so many issues surrounding HEA right now. I felt like the best thing to do was to have Brad come on and answer questions about everything from the rate increase to Healy to the power supply study to board elections and member relations.
But the fact is, no one is being given a soapbox. It's my position that a talk show is a dialogue between host, guests, callers, and listeners. No one element is given greater weight than another.
Nobody will be there to represent your concerns -- it's up to you to call in and express yourself.
Some basic talking points follow.
--------------------------------------------------------------------------------------------------------------------
Talking Points:
Independent Power Source Study:
HEA should stop negotiations with GVEA for a Healy 2 Power Sales Agreement pending the outcome of the recently announced power source study.
Right-to-Know:
HEA is a member-owned cooperative. Members have a right to know about HEA actions that will affect our utility rates. HEA must improve the ways members are informed. Why weren’t recent huge, mid-winter, rate hikes announced farther in advance? How come rate increases weren’t made in small increments over several months? Is HEA considering salary and benefits adjustments for its top management? Why do closed-door power sales agreement negotiations between HEA and GVEA continue? How will we be kept informed of progress and findings of the power source study and other projects?
High Risk:
The Healy Coal Plant faces significant and unknown costs from anticipated greenhouse gas and mercury rules. The Obama Administration is committed to enacting new rules that will limit emissions of greenhouse gasses, and the EPA is re-writing new, tougher rules on mercury emissions. These new rules will add significant Healy 2 startup and operating costs while increasing liabilities from litigation. AIDEA and HEA refuse to consider any of this in estimating costs. Such factors must be quantified before HEA commits us to any contract with GVEA.
Mounting Cost:
The Healy Coal Plant is a black hole for public money. Test runs in 1999 proved the facility could not provide reliable, “clean” power at a competitive cost. Despite this fact, the recent agreement on Healy 2 will retain its faulty technology. After pouring $300 million into this coal experiment how much more state money will a restart really take? The legislature will soon consider a bill to consolidate all railbelt utilities. Does HEA support this approach? What would consolidation mean for the Healy 2 agreement?
Higher Rates:
The Healy Coal Plant is likely to increase your electricity costs. HEA has lamented the 30 year contract with Chugach for natural gas since long before the gas cost spike. We got stuck with that contract because HEA thought gas would always be plentiful and cheap. Why does HEA think that, in the face of rising international demand, coal prices won't increase? Alaskan coal deposits may be vast but coal prices have never been stable. That’s because international markets dictate Alaska coal prices. International coal traders predict a 20% to 30% increase in just the coming six months. Under the current terms, HEA ratepayers will be forced to buy 1⁄2 the power from Healy, regardless of the cost.
Stable Rates:
HEA must look forward to renewable power, not backwards to coal. Alaska boasts enormous renewable energy resources that promise clean, fixed-cost power and sustainable jobs. After construction costs, renewable energy systems produce power on a fixed-cost basis, avoiding the market swings and pricet increases of fossil fuel. The Bradley Lake hydropower facility in Kachemak Bay is an excellent example, producing power at less than half the rate GVEA predicts for Healy 2. And it’s clean, reliable, fixed-cost power indefinitely. What ever happened to the idea of a gas-fired turbine on the Kenai Peninsula to bridge the gap until we can develop our renewable energy sources?
9:00 AM - 10:00 AM
Wednesday, February 25, 2009
KBBI-AM 890, Homer
KDLL-FM 91.9, Kenai
HEA General Manager Brad Janorschke and Public Relations Coordinator Joe Gallagher will be the only guests.
KBBI News Director Casey Kelly chose not to invite any guests with differing perspectives:
I made that decision because there are so many issues surrounding HEA right now. I felt like the best thing to do was to have Brad come on and answer questions about everything from the rate increase to Healy to the power supply study to board elections and member relations.
But the fact is, no one is being given a soapbox. It's my position that a talk show is a dialogue between host, guests, callers, and listeners. No one element is given greater weight than another.
Nobody will be there to represent your concerns -- it's up to you to call in and express yourself.
Some basic talking points follow.
--------------------------------------------------------------------------------------------------------------------
Talking Points:
Independent Power Source Study:
HEA should stop negotiations with GVEA for a Healy 2 Power Sales Agreement pending the outcome of the recently announced power source study.
Right-to-Know:
HEA is a member-owned cooperative. Members have a right to know about HEA actions that will affect our utility rates. HEA must improve the ways members are informed. Why weren’t recent huge, mid-winter, rate hikes announced farther in advance? How come rate increases weren’t made in small increments over several months? Is HEA considering salary and benefits adjustments for its top management? Why do closed-door power sales agreement negotiations between HEA and GVEA continue? How will we be kept informed of progress and findings of the power source study and other projects?
High Risk:
The Healy Coal Plant faces significant and unknown costs from anticipated greenhouse gas and mercury rules. The Obama Administration is committed to enacting new rules that will limit emissions of greenhouse gasses, and the EPA is re-writing new, tougher rules on mercury emissions. These new rules will add significant Healy 2 startup and operating costs while increasing liabilities from litigation. AIDEA and HEA refuse to consider any of this in estimating costs. Such factors must be quantified before HEA commits us to any contract with GVEA.
Mounting Cost:
The Healy Coal Plant is a black hole for public money. Test runs in 1999 proved the facility could not provide reliable, “clean” power at a competitive cost. Despite this fact, the recent agreement on Healy 2 will retain its faulty technology. After pouring $300 million into this coal experiment how much more state money will a restart really take? The legislature will soon consider a bill to consolidate all railbelt utilities. Does HEA support this approach? What would consolidation mean for the Healy 2 agreement?
Higher Rates:
The Healy Coal Plant is likely to increase your electricity costs. HEA has lamented the 30 year contract with Chugach for natural gas since long before the gas cost spike. We got stuck with that contract because HEA thought gas would always be plentiful and cheap. Why does HEA think that, in the face of rising international demand, coal prices won't increase? Alaskan coal deposits may be vast but coal prices have never been stable. That’s because international markets dictate Alaska coal prices. International coal traders predict a 20% to 30% increase in just the coming six months. Under the current terms, HEA ratepayers will be forced to buy 1⁄2 the power from Healy, regardless of the cost.
Stable Rates:
HEA must look forward to renewable power, not backwards to coal. Alaska boasts enormous renewable energy resources that promise clean, fixed-cost power and sustainable jobs. After construction costs, renewable energy systems produce power on a fixed-cost basis, avoiding the market swings and pricet increases of fossil fuel. The Bradley Lake hydropower facility in Kachemak Bay is an excellent example, producing power at less than half the rate GVEA predicts for Healy 2. And it’s clean, reliable, fixed-cost power indefinitely. What ever happened to the idea of a gas-fired turbine on the Kenai Peninsula to bridge the gap until we can develop our renewable energy sources?
Sunday, February 22, 2009
The Regulatory Commission of Alaska (RCA) Has Opened New Net Metering Dockets
Net Metering would allow you to sell excess energy produced by your own solar panels, wind turbine, or other renewable technology back to HEA at the retail rate. Unlike the "SNAP" program, no member contributions are required.
Draft RCA Net Metering proposal:
Size Limit For Individual Renewable Energy System: 25 KW
Overall Renewable Energy Systems Limit Per Utility: 1% of utility’s peak demand
Net Metering Accounting Period: Monthly*
Treatment of Monthly Net Excess Power: Paid at utility’s non-firm avoided cost*
Renewable Energy System Types Allowed: Solar, Wind, Hydro, Biomass, Tidal, Ocean Thermal, Wave, Landfill Gas
The RCA will only establish an Alaskan Net Metering rule if ratepayers demand it.
*Monthly accounting is a bad idea. Excess energy production should be applied over a twelve month period. A solar array will produce most energy in late spring and summer when days are longest. Monthly won't let you use that excess production to offset fall and winter consumption.
*Payment at the utility’s “non-firm avoided cost” is a bad idea too. The utility charges you retail for the power but only credits your excess production at the wholesale price.
“Technical” conferences have been scheduled by the RCA for:
March 4, 2009 (Net Metering Standards, Docket R-09-1) and
March 18, 2009 (Interconnection Standards, Docket R-09-2).
Both will be held at the Commission’s East Hearing Room, suite 300, 701 West Eighth Avenue in Anchorage.
Persons planning to participate in one or both conference must file notice of intent by:
4:00 PM, February 27, 2009 for Net Metering Standards, Docket R-09-1
4:00 PM, March 13, 2009 for Interconnection Standards, Docket R-09-2
Notice must indicate whether you intend to appear in person or telephonically. Contact Joyce McGowan at
1-800-390-2782
or send to rca.mail@alaska.gov at least three days before the technical conference.
For More Information:
Regulatory Commission of Alaska
701 West Eighth Avenue, Suite 300
Anchorage, Alaska 99501-3469
In Anchorage:(907) 276-6222
Toll Free:1-800-390-2782 (outside Anchorage, within Alaska)
E-mail: rca.mail@alaska.gov
Website: https://rca.alaska.gov/RCAWeb/home.aspx
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) 276-6222Toll Free:
1-800-390-2782 (outside Anchorage, within Alaska)E-mail: rca.mail@alaska.gov
Website: https://rca.alaska.gov/RCAWeb/home.aspx
Friday, February 13, 2009
Congratulations Everyone!
After a rather contentious start, Tuesday’s HEA Board meeting resulted in action to respond to member concerns over the proposed Healy 2 deal with AIDEA and GVEA.
At least 55 members crowded Homer and Kenai HEA offices to express their views. In over two hours of testimony, all but three or four opposed involvement with Healy 2 for a variety of reasons, from environmental to public health and economic questions. Many thanks to all of you who were able to participate and to everyone who sent comments to the Board.
It was a long meeting but, in the end, the HEA Board passed a motion by David Thomas to issue an RFP for a comprehensive, third-party, revised power supply study. It will examine Healy in relationship to all other power options available for meeting HEA’s power needs. Cost/benefit assessment of the various options will be an element of this study. Future fuel costs, regulatory issues, reliability, and potential impact on rates will be among the things considered.
In response to a recommendation by General Manager Brad Janorschke, this process will be conducted by the Generation Committee. Two Board members and three member/ratepayer representatives (1 from each Board district) will work with HEA staff to develop and oversee the RFP and the estimated six month power supply study process.
Unfortunately, the Board did not preclude continuing contract negotiations for a Power Sales Agreement between HEA and GVEA. Still, it would be hard to imagine HEA attempting to sign such a document absent results of the completed study.
Many significant issues remain regarding the way our electrical cooperative does business but HEA Board members deserve words of encouragement for taking a significant step in response to member concerns.
Mike
At least 55 members crowded Homer and Kenai HEA offices to express their views. In over two hours of testimony, all but three or four opposed involvement with Healy 2 for a variety of reasons, from environmental to public health and economic questions. Many thanks to all of you who were able to participate and to everyone who sent comments to the Board.
It was a long meeting but, in the end, the HEA Board passed a motion by David Thomas to issue an RFP for a comprehensive, third-party, revised power supply study. It will examine Healy in relationship to all other power options available for meeting HEA’s power needs. Cost/benefit assessment of the various options will be an element of this study. Future fuel costs, regulatory issues, reliability, and potential impact on rates will be among the things considered.
In response to a recommendation by General Manager Brad Janorschke, this process will be conducted by the Generation Committee. Two Board members and three member/ratepayer representatives (1 from each Board district) will work with HEA staff to develop and oversee the RFP and the estimated six month power supply study process.
Unfortunately, the Board did not preclude continuing contract negotiations for a Power Sales Agreement between HEA and GVEA. Still, it would be hard to imagine HEA attempting to sign such a document absent results of the completed study.
Many significant issues remain regarding the way our electrical cooperative does business but HEA Board members deserve words of encouragement for taking a significant step in response to member concerns.
Mike
Feb 11 HEA Press Release - Homer Electric to Study Power Supply Options
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
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
Monday, February 9, 2009
Your Help Is Needed
HEA Members in Kenai, Soldotna, Nikiski, Sterling and other parts of Board Districts 1 and 2 only:
Good candidates are needed to run against Bruce Passe (HEA District 1) and William Tappan (HEA District 2) in the HEA Board election.
Both these incumbent Board members support the Healy 2 deal.
If you are willing to be a candidate or help to find and support someone else who will, please contact fellow Kenai HEA member Jerry Brookman.
Gerald Brookman brookman (emailAT) alaska.net
Time is short -- candidate applications with at least 15 HEA member signatures (one per household) are due by February 27.
Good candidates are needed to run against Bruce Passe (HEA District 1) and William Tappan (HEA District 2) in the HEA Board election.
Both these incumbent Board members support the Healy 2 deal.
If you are willing to be a candidate or help to find and support someone else who will, please contact fellow Kenai HEA member Jerry Brookman.
Gerald Brookman brookman (emailAT) alaska.net
Time is short -- candidate applications with at least 15 HEA member signatures (one per household) are due by February 27.
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