HEA Candidate Questions: Michael Jones

Voting in Homer Electric Association’s election began on March 31. Electronic and mail ballots must be received by 5 p.m. on May 3; members can also vote in person at the HEA Annual Meeting on May 4 at 6 p.m. at Soldotna High School. More information and access to electronic ballots can be found on the HEA Election page.

Here are the answers from Michael Jones, one of two candidates running in District Three, which encompasses Homer, Anchor Point, Ninilchik, and parts of Kasilof. Jones has been an HEA member for three years. He worked for 37 years in the electric utility sector in a variety of positions, including engineering and management. His full candidate profile can be found here.

Michael Jones from his HEA candidate profile

1. Why do you want to be an HEA board member?

I devoted over 37 years of my life working for a gas and electric utility.  In that time, I was able to work with a variety of teams on a variety of challenges like development of fossil, wind, solar and hydro pumped storage projects, construction of fossil and solar projects, and operations and maintenance of a fleet of hydro, fossil, solar and geothermal resources.  This board position provides an opportunity where I can give back to the community and assist this team as we face the challenges of the future. 

2. Are there any particular policies you would champion as a member of the Board? Are there any current or proposed policies you would oppose?

There are over 75 HEA board policies, and I haven’t had visibility to them all in action yet.  However, I have observed the board discussing Policy 505 (Renewable Portfolio Goal) and made a presentation to the Board on this policy in March 2022 where I shared concerns about the Policy and the negative impact on members’ rates resulting from gaps in the policy. 

This Policy was adopted in March 2008 and revised in 2009, 2010, 2013, 2017 and 2021. 

I recently observed the Board in the February meeting as they sought to vote to accept the policy as part of their annual review of key policies.  I observed the board members had dramatically different perspectives and understandings of what the policy said and meant.  As written, the Policy is not physically achievable.  I believe we should provide SMART goals to management.  A SMART goal is SPECIFIC, MEASUREABLE, ACHIEVABLE, REALISTIC, and TIME-BOUND.    

I would seek to work with the Board to revise this policy to provide clear direction to management, the employees, the members, and the broader public. 

3. What are the biggest challenges HEA will face in the next five to ten years?

Cost: 

With inflation and federal spending at an all-time high and City, Borough, and State governments all seeking additional funding sources, HEA members have less money available for electricity, heating, fuel, food and charity.  Approximately 60% of our HEA bill is associated with Generation and Transmission.  About half of that amount is the cost of fuel—primarily natural gas.  Future natural gas cost and availability is in question at the end of the existing fuel contract. 

Demand and Supply: 

Membership and electricity demand are increasing.  With the uncertain natural gas future, there is a desire to add wind and solar generation to the supply mix. 

What can be done to prepare to meet them?

The Board is scheduling a strategic planning session for later this year.  As a member of the Board, I believe I can assist in facilitating a robust discussion and establish a plan that can face these challenges. 

It’s important for the Board and Leadership to work together and consider ALL options necessary to ensure safe, reliable, affordable electric service for our membership. 

I would expect the Board to consider the following as it works on the strategic plan:

A.    Continue to firm up natural gas supply.

B.    Continue to enhance HEA’s hydro portfolio.  I can help here as I have led development of utility scale small hydro projects.   

C.     If we are going to add wind and solar resources, how do we make sure we do it correctly?  I have played key roles in the development, construction and operation of utility scale solar systems and developed utility scale wind projects.  I understand the strengths and weaknesses from these technologies and can provide insight as we consider these options.

D.    Is geothermal generation an option?  I have considerable operations and maintenance experience in this area that may help with the discussion. 

E.     What about energy storage beyond the BESS that was recently installed?  I expect additional storage will be an important component in the future.  I think I can contribute to the conversation on this subject as I’ve:

a.     been responsible for the operation, maintenance, and investment in an existing large hydro pumped storage project.  Pumped storage projects use excess electrical energy to pump water from a lower reservoir to an upper reservoir to store the energy.  When energy demand increased, we would flow water from the upper reservoir through turbines to the lower reservoir to generate electricity for use.

b.     led development efforts for multiple large, pumped storage projects. 

c.     supported development efforts for Compressed Air Energy Storage (CAES) systems. 

d.     supported development of battery storage systems that were ultimately installed. 

e.     evaluated other storage technologies including flow batteries and flywheels. 

There is a lot here, and I will strive to drive the discussions and evaluations to be thorough and transparent to HEA’s members and other key stakeholders.  

4. In 2022 HEA’s Board spent 38% of their regular public board meetings in Executive Session. While Executive Sessions are sometimes necessary, their extensive use excludes member-owners from significant discussions of issues such as strategic planning and sources of power generation. Do you believe that cooperative boards have an obligation to their member-owners to maximize the openness and transparency of their decision making? Should HEA’s Board minimize its use of Executive Session? What could be done to achieve this goal?

As a member “outside the board” I find myself asking this question periodically.  I understand why the Board may need to discuss items in a confidential arena—Board Policy 206 provides guidance on what can be discussed in Executive Session—and it seems sufficiently narrow—adverse effect on the financials or legal standing or personnel matters.  As a Board member, I would consistently challenge the use of executive sessions to cover subjects to ensure our members are able to see what is going on in our cooperative. 

Cooperative boards do have an obligation to provide as much transparency as possible without subjecting the membership to undue financial or legal risk. 

5. Hilcorp has said that it cannot guarantee natural gas supplies from Cook Inlet beyond its current contracts (HEA’s contract with Hilcorp ends in 2024). What strategies should HEA use to address potential future shortfalls in Cook Inlet natural gas? 

I believe I addressed this in question 3.

6. In recent years many have argued that there needs to be greater collaboration among the Railbelt utilities, leading to the creation of the Railbelt Reliability Council (RRC) in 2022. Do you believe that utility Board Directors have a role in fostering greater collaboration and integration among Railbelt utilities, or should they defer to staff on these questions? What can board members do to facilitate greater cooperation?

I’m not familiar with the history of real or perceived collaboration gaps among the Railbelt utilities so I’m not sure if there is a need for board members to facilitate greater cooperation.  I’d be happy to learn more about this specific issue.  HEA Board Policy 216 provides guidance on designated spokespersons for board and Cooperative matters.     

7. The Renewable Portfolio Standards (RPS) proposal introduced last year by Governor Dunleavy was recently reintroduced in the Alaska Legislature (HB 121 and SB 101). This bill would require utilities to reach 80% renewable power generation by 2040 with intermediate targets along the way. Last year the Railbelt utilities supported amendments that pushed back the milestones and changed the RPS into Clean Energy Standards (CES) that included nuclear power and gas generation technologies (waste heat recovery) that the utilities already have in place. Do you support either the RPS or CES? If so, which do you believe would better serve Alaskans? What role should the Board have in advocacy for either?

I do not support arbitrary standards that attempt to determine “winners and losers”.  As mentioned earlier, I’m familiar with a broad variety of generating resources.  Each has their strengths and weaknesses.  The RPS approach is filled with special interests and typically emphasizes only the strength of certain renewables while ignoring their weaknesses and conversely emphasizes the weakness of non-renewables while ignoring their strengths.  It’s been my experience that RPS goals require too much too soon saddling the customer with years of high electricity costs that could have been avoided using a more measured approach.  I prefer to let the planning process play out and let the math and science determine the right answers here.  I have seen others running for elected office make all kinds of promises of projects they will prioritize—irrespective of cost, need or technical merit.  I believe the HEA Board members need to work with management to develop a plan and execute on that plan.  I believe the discussion of cost, need, and technical merit of all generating resources should be robust, factual, and transparent to HEA members so they can have a say in their future rather than someone in Juneau, Anchorage, or other non-members who are not responsible for paying the electricity bill every month. 

8. How do you think HEA can best take advantage of the many federal infrastructure incentives and grants created under programs such as the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA)?

The decision process needs to follow the proper sequence.  If the HEA planning process identifies a needed project that ensures or enhances safe, reliable, affordable service for its members, and that project is eligible for infrastructure incentives or grants, great.