HEA Candidates Questions—Rick Eckert

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 Rick Eckert, a candidate in HEA’s District 3 (which includes Homer, Seldovia, and parts of Kasilof). Eckert, now retired, worked as a financial and regulatory specialist at a number of utilities, including HEA. His volunteer experience includes serving on the Board of the South Peninsula Hospital and as Chair of the Alaska State Elks Association Charitable Trust. His HEA candidate page can be found here.

Rick Eckert, from his HEA candidate profile

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

HEA hired me to be its Controller in the Accounting Department in 1989.  I realized soon that working for a rural electric cooperative is more mission than job.  I spent 21 years with HEA and continued working for cooperatives, Valley Electric Association in Nevada and Kauai Island Utility Cooperative in Hawaii, until I retired in 2020.  I want to come full circle back to HEA and use my experience to benefit the members.

2. What do you think are the biggest challenges facing HEA over the next 5-10 years? What can be done to prepare to meet them?

The wholesale power portfolio is the long term challenge due to the Cook Inlet natural gas supply, not only in regard to price but in supply as well.  Alternative sources of power generation have to be addressed at pricing that is the best economically.  Transmission planning is influenced significantly based on sources that are possible based on geophysical attributes and locations of alternative generation.

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?

The Railbelt utilities are unique in regard to business structure.  Because of relative remoteness from the other utilities, especially before the transmission system interconnected them, they have a generation, transmission and distribution structure.  In the lower 48, the typical structure is distribution only relying on a generation and transmission cooperative to sell them wholesale power reliably.  Because of our utility beginnings, the Railbelt utilities are very accustomed to addressing their power supply and reliability on their own, not relying on any other utility.  Now, we need to address the benefit of mutual Railbelt planning and financing.  This is how we approached Bradley Lake successfully.

 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?

During my time at HEA, I spent several years managing HEA's legislative strategy.  That strategy was focused mainly on beneficial regulation and capital funding of projects.  This strategy was always approved by the Board of Directors.  It must be.

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?

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?

Renewable energy must be evaluated.  In my time at Kauai Island Utility Cooperative, I worked with a situation that is similar to HEA's.  The location was remote.  The base load fuel was diesel shipped from Asia and California.  As a result, alternative generation was actually cheaper.  We developed solar generation with battery storage.  We also developed hydro storage for hydro electric generation, pumping the water at night back up to the storage reservoir.  The generation portfolio at the time I left was close to 70% renewable fuel.  The key to renewable generation is availability.  If solar irradiation is not economically feasible or there are no geophysical attributes that allow hydro and tidal generation, then sources of natural gas must be used.  In regard to contracting for renewable generation that is more expensive than natural gas, the analysis must be reviewed.  It could be that the long term cost, which is typically fixed, is lower than natural gas that likely has future pricing uncertainty.

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?

There are well established public relations strategies to engage member participation.  It is the best way to go.  Members must be informed.

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?

The driver of executive sessions is confidentiality.  The Board can not open confidential information to the members due to possible legal problems or, not letting information be available to competitors or entities that intend to make money off of the cooperative (members).  I can't comment on HEA's latest time in executive session because I do not know what it has been addressing.

8. Beyond the issues discussed above, are there any other policies or issues facing the HEA Board you would like to address?

No.  While all operational process and cost is very important, the current wholesale power portfolio is the most impactful right now.