HEA Candidate Questions—Mitchell Michaud

Voting opened March 28 in HEA’s board election and runs through the Annual Meeting on May 1. Members can vote in 3 ways:

• Electronically via the HEA election portal until 5 p.m. on April 30.

• By mail—beginning this year, members wishing to vote by mail need to request a ballot. Mail in ballots must be received by the election administrator in Minnesota by 5 p.m. on April 30 to be counted.

• In person at the HEA Annual Meeting at Kenai Central High School. The meeting starts at 6 p.m.; voting will be open from 4:30 p.m. to 6:30 p.m.

More information, including access to the online portal and the form to request paper ballots, can be found on the HEA election page.

Here are the questionnaire responses for Mitchell Michaud, a candidate in HEA’s District 2 (which includes parts of Soldotna, Sterling, and parts of Kasilof). Michaud is retired after a career with the USDA’s Forest Service. His volunteer work includes serving on the Board of the Peninsula Community Health Services of Alaska (including 2 terms as President), the Board of the Kenai Watershed Forum, and as Board Chair of the AK Society of American Foresters.

His HEA candidate page can be found here.

Mitchell Michaud, from his HEA candidate profile

1.  Why do you want to serve on the HEA Board?

HEA needs a new voice—one that envisions a future beyond current energy sources, emphasizing resilience, efficiency, and independence from external market forces. Before moving to Alaska in 1998, I experienced the Great Ice Storm, where seven million people lost power, and thousands of transmission towers and utility poles failed. I spent that year working on timber salvage, planning, and mitigation efforts, witnessing firsthand the importance of cooperation between utilities and landowners.

Since arriving on the Kenai Peninsula in 1999, I have engaged with HEA and Chugach Electric as a homeowner, public land manager, easement negotiator, and, most recently, as a home solar energy provider. While HEA has historically benefited from abundant natural gas, I have long anticipated its decline. I believe HEA is acting more like a private entity than a true member-owned cooperative. My goal is to enhance HEA’s transparency, responsiveness, and commitment to evaluating alternative energy solutions.

2. What are the biggest challenges facing HEA over the next 5-10 years? How can HEA prepare for them?

The biggest challenge is the declining availability and affordability of natural gas. However, HEA must think beyond just the next 5-10 years and plan with a 50-100 year perspective. Decisions made today should protect the cooperative’s future stability, not just provide short-term solutions.

Compounding this challenge is the unpredictability of energy markets, the limited number of suppliers, and reliance on international energy sources. The current approach—using gas sales to finance future debt—creates risk. HEA must proactively diversify energy sources, invest in renewables, and strengthen infrastructure to ensure long-term reliability.

3. The Railbelt utilities are facing many common issues, such as shortfalls of Cook Inlet natural gas and the need for transmission upgrades. There is some collaboration among utilities to address these issues, although this has sometimes required legislative intervention (such as the formation of the Railbelt Regional Transmission Organization).

What role do cooperative boards have in working toward greater collaboration among the Railbelt utilities? Should this be done solely through directives to staff, or is there a place for direct collaboration between boards and/or board members?

Alaska’s utilities face unique challenges due to the state’s geography, dispersed population, and relatively low energy demand. Cooperation between utilities is essential. Instead of inter-utility competition, boards should work together to address shared concerns, preventing further urban-rural disparities that leave the Kenai Peninsula in a difficult position.

I support a “short picket fence” approach, meaning open discussions between co-ops on shared values and threats. Having engaged with Chugach Electric, GVA, MEA, and Southeast utilities, I recognize differences but believe collaboration must occur at the board level, not just through management. Additionally, state regulatory oversight is necessary to ensure fair coordination. Proposals to remove HEA from the Regulatory Commission of Alaska’s oversight are misguided, and I would not support such actions.

4. Legislators give considerable weight to input provided by utilities on legislation that affects them. What role should board members play in developing their cooperative’s stance on bills before the Legislature? How should the Board interact with staff on these issues?

Board members should actively shape HEA’s legislative positions and ensure they reflect member concerns. Individual board members should also bring diverse perspectives to discussions, ensuring that all viewpoints—including minority opinions—are considered.

Groupthink and conflict avoidance are signs of a weak board. Members should openly discuss issues while maintaining professionalism and transparency. When board members and staff represent HEA in public or legislative discussions, they should present unified positions. However, members should not be discouraged from expressing personal opinions outside of official HEA representation.

5. Imported LNG is expected to cost about 40-50% more than the current price of Cook Inlet natural gas. A recent ADN story indicated that the Cook Inlet gas from Furie’s new wells will be almost as expensive (this is the anticipated source of the natural gas for HEA’s contract extension with ENSTAR). The contract extension with ENSTAR is also interruptible (meaning the delivery of the contracted gas is not guaranteed). Given these facts:

a/Would you support HEA signing a power purchase agreement with a renewable independent power producer whose cost of power would be higher than the cost of HEA’s current gas-fired generation, but less expensive than power generated with more expensive natural gas in the future?

Yes. Sustainable energy investments must be evaluated based on long-term benefits rather than short-term costs. I have personally invested in home solar energy, anticipating the natural gas shortfall a decade ago. Expanding renewables is crucial for long-term energy stability.

b/The developer of the Puppy Dog Lake solar project withdrew from their power purchase agreement with HEA in late January, citing financial reasons. Should HEA work proactively with this (or another) independent power producer to revive the project? Should it consider investing directly in this or a similar project?

Yes. The Puppy Dog Lake developer, as a for-profit entity, seeks short-term returns, while HEA, as a cooperative, must prioritize long-term benefits for members. HEA has historically invested in infrastructure projects, such as the Bradley Lake hydro project, Healy coal plant, and waste energy recovery in Nikiski. Joint ventures or long-term agreements with independent producers can be beneficial and should be explored.

6. Although HEA is a member-owned cooperative, levels of member engagement and involvement are low—only 16.5% of members voted in the last election and very few members attend board meetings. Do you believe that the Board should try to increase member engagement? If so, what can the Board do to encourage greater member engagement and involvement in helping to guide the cooperative’s policies?

Absolutely. HEA must take a stronger leadership role in community engagement. Energy issues are receiving significant public attention, yet few members participate in board meetings or elections.

HEA should enhance its outreach efforts by holding biannual presentations at city and borough meetings, increasing transparency, and improving accessibility. Current engagement meetings are poorly attended, and chamber meetings do not reach the average member-owner. A proactive PR campaign would encourage greater participation and awareness.

7. The extensive use of executive session by utility boards contributes to member disengagement. In 2024, HEA’s Board spent 27% of its board meetings in executive session. Recognizing that the use of executive session is necessary at times, 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? If so, what steps could be taken to achieve this goal?

Yes. Excessive executive sessions create distrust and disengagement among members. Executive sessions should be limited to legal matters, board or executive employee misconduct, employment negotiations related to the CEO, and contract discussions requiring confidentiality.

Frequent executive sessions indicate dysfunction, lack of transparency, and weak leadership. To improve openness:

·       Agendas should specify the general topic of executive sessions in advance.

·       Regular business should be discussed in open meetings whenever possible.

·       Executive session minutes should document the reason for closed discussions.

·       The board should report back to members with resolutions and documented votes after executive sessions.

By increasing transparency, HEA can build greater trust and engagement with its members.