CEA Candidate Questions: Fritz Krusen

Voting for the Board election at Chugach Electric Association is now underway. Members have three options for voting. Electronic voting will continue until 2 p.m. on May 20. Members wanting a paper ballot must call 907-563-7366 before May 6 to request one. And members will have the option to vote at the CEA Member Appreciation Event starting at 3 p.m. on May 20. CEA members are voting to fill two Board seats. More information on voting can be found at https://www.chugachelectric.com/system/files/2022%20Election%20pamphlet%20Final%20for%20web.pdf

Here are the responses to AETP’s questions from Leslie C. “Fritz” Krusen III. Krusen is a retired electrical engineer who worked for the Alaska Gasline Development Corporation and ConocoPhillips. He is currently a member of CEA’s Member Advisory Council. His candidate profile can be found at: https://www.chugachelectric.com/system/files/2022%20Board%20of%20Directors%20Election%20Fritz%20Krusen%20Bio%20%26%20Statement.pdf

Fritz Krusen, from his CEA candidate profile.

1. Why do you want to be a CEA Board Member?

As a retired electrical engineer with 42 years of engineering, technical management, and project management experience from the oil & gas industry, I believe that I can help guide CEA from their current high level of service to an even higher level.

2. Are there any particular projects or ideas you would champion as a CEA Board member? Are there any you would oppose?

Let me begin by saying that, although I support CEA's efforts to de-carbonize, I am also supportive of CEA's current low-polluting & highly-efficient natural-gas-fueled turbine generators. On a cold, cloudy, and still winter day, it's good to be able to push a button and have many megawatts of electrical power available within minutes. With that said, I would both support and carefully scrutinize additional generation from hydro-power (dams). If done correctly, like Bradley Lake and the recent Battle Creek augmentation, cost-effective and non-polluting energy can be obtained. One doesn't have to look very far to find examples where dams have caused tremendous damage, especially to fisheries; we don't want that kind of hydropower. If the hydropower project is supportable, then the next step is for the Board to assist CEA in affirmatively-messaging the project; gaining public support is as important as the project itself. I am also a fan of rooftop solar; even though I imagine it is a bit of a pain for CEA to act as the "battery". Additional rooftop solar will allow more natural gas to stay in the ground (at least during non-winter), and I am pleased that CEA is also supportive of rooftop solar.

3. If you are elected, you would serve a four year term, and be eligible to serve up to three consecutive terms. What challenges and opportunities do you believe CEA will face in the next 4 years? What about in the next decade?

In the near-term and medium-term, as someone who has worked oil & gas in the Cook Inlet, I worry about natural gas supply. Exploration and production companies have done a good job of finding "just enough" gas to meet CEA's needs, but will this continue? In the longer-term, energy storage to reinforce solar, wind, and tidal power needs to be tracked; I would have CEA institute a "technical qualification" assessment to assist in determining the best time to introduce pilot, small-scale, and full-scale deployment.

4. Do you support the passage and implementation of the Renewable Portfolio Standards legislation (HB 301 and SB 179) proposed by Governor Dunleavy? Why or why not? If the bill passes, what would you do as an CEA Board member to help the cooperative prepare to meet the RPS goals?

The renewables targets in HB301/SB179 are laudable, and to a point seem to be feasible. However, before agreeing to implement, I would consult with CEA Staff and fellow CEA Board members (even though I suspect the Dunleavy Administration consulted with the Railbelt Electrical Associations before proposing the bills). CEA's 2020 annual report shows 21% of its power generation from hydropower (and 3% from wind power; wind has about a 10% dispatch so one can only plan on 0.3%). In other words, CEA would need about three more Bradley Lake projects to reach HB301/SB179's target of 80% renewables by 31 December, 2040. Or something else in the renewable portfolio; such as tidal power, solar power, wind power, and energy storage. I would request that CEA Staff prepare a roadmap of how to attain the targets listed within HB301/SB179.

5. The proposal for the creation of the Railbelt Reliability Council (RRC) was submitted to the Regulatory Commission of Alaska at the end of March. What potential problems or opportunities will participating in the RRC create for CEA?

The creation of the RRC is an opportunity for CEA, and for Railbelt electrical consumers. The RRC should provide structure and "teeth" to efforts to improve Railbelt electrical reliability and efficiency (both energy and capital); much as similar/earlier efforts have in L48. As the largest of the Railbelt electrical utilities, CEA will need to consider itself as the flywheel for the RRC efforts.

6. CEA has seen a steady decline in residential and commercial energy sales since 2017 (a trend exacerbated by the impacts of Covid-19 over the past two years). Do you view this as an issue about which the Board should be concerned? If so, what role do you think the CEA Board has in addressing this trend?

The decline of electrical loads has two components; Alaskans adopting more energy-efficient devices (light bulbs, appliances, HVAC systems, etc), and businesses and associated support (restaurants, etc) moving out of downtown/midtown Anchorage due to Covid-19. The first trend is laudable, but the second trend is concerning since there is no guarantee of 100% return. If the second trend continues, then fixed costs will need to be distributed over the CEA membership, resulting in increased electrical bills. The CEA Board can assist CEA staff in finding increased "good" electrical loads; in particular, "cheerleading" with fleet owners (USPS, FEDEX, UPS, etc) to convert their delivery vehicles to electrical vehicles (EV's). Earlier in April, I e-mailed Senator Murkowski and Senator Sullivan a request that they 1) request USPS to reconsider the currently-proposed mix (90% gasoline-powered, 10% EV) in the USPS's Next Generation Vehicle Contract, and 2) that they nominate Anchorage as a cold-weather trial site for the Contract's EV's.

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