GVEA Board Meeting: Oct 26, 2020
by Jim Schwarber
The Golden Valley Electric Association Board of Directors held their monthly meeting on Monday, October 26, 2020. This was a typical meeting using Microsoft Teams. The public session began with a Safety Moment followed by an educational presentation by Dan Britton, General Manager of the Interior Gas Utility (IGU). Mr. Britton reported on the status of their Interior Energy Project that is bringing piped natural gas to Fairbanks and North Pole customers.
Interior Gas Utility presentation
The IGU was created to bring low-cost energy to as many Interior residents and businesses as quickly as possible and to help improve air quality. They recently completed construction on a $57 million storage tank for natural gas designed to hold 5.25 million gallons; the tank is now half full. A separate, smaller North Pole storage site will be completed by the end of November, at which time they can start serving customers in that area. Mr. Britton said IGU’s price for natural gas is $20.72 per thousand cubic feet; this energy amount and price compares to buying fuel oil at $2.75 gallon. 200 service lines have been completed. The Fairbanks North Star Borough Air Quality Division offers a change out program to assist customers with the conversion from solid fuel and fuel oil burning devices to natural gas, with grants up to $14,000 and $7,500, respectively. Converting from oil heat avoids needing an underground oil storage tank and the associated liability from leaks. The IGU project is intended to be a long-term – 50 year – asset for the community.
The IGU representative was questioned by the board about the possibility of tying the North Pole storage facility into GVEA’s gas turbine generator located nearby. Mr. Britton replied this would require money for a pipeline and new equipment to raise pressurization of the gas from 100 PSI to the turbine’s required 675 PSI to operate. Director Gary Newman asked about the potential role for IGU to supply gas for the Fort Wainwright power plant replacement being studied. IGU supports Fort Wainwright choosing either the combined heat and power option or the distributed heat model.
With Fairbanks natural gas prices being about twice what an Anchorage customer pays, Mr. Britton was asked how Fairbanks gas prices could be lowered. He said only a North Slope gas pipeline would significantly lower gas prices. More customers and more volume could lower costs somewhat, and switching from trucking to rail transport may reduce costs, too. The IGU project is intended to be a long-term – 50 year – asset for the community.
A safety request closed the IGU presentation – please call the Alaska Digline at 811 at least three days before digging; they will locate and mark underground utility lines for free.
There were no member comments this evening, though several member-owners listened in.
Update from Member Advisory Committee (MAC)
MAC Chair Harmony Tomaszewski provided a brief report on October’s Member Advisory Committee meeting. Following a briefing about On-Bill Financing by Kathryn Strle and being asked by the Board to assist with developing an OBF program, the MAC will form a sub-committee for this task. There is no timeline set for this work; interested MAC members may volunteer. The MAC voted to keep the same leadership for another term, in part since they had not met during the COVID emergency.
Other business
The remainder of the Board meeting consisted of normal business reports. They approved the 2021 budget. Board was happy there was no change in the base electricity rate for the second filing period in a row.
The Alaska Rural Electric Cooperative Association - ARECA – gave an Educational Foundation Report. They recommended staying with Portfolio B, the middle of road investment model for funds derived from unclaimed capital credits. The Board adopted this recommendation.
The Scholarship Committee recommendation to keep the same number of awards, eight, but increase each one by $1000 in 2021 was adopted by the Board.
During closing Good of Order items, the Chair recognized Gary Newman’s service as GVEA Director with a Five-Year pin.
A request was made to consider moving the normal Monday Board meeting to a different day, in part so preparations would not need to be done during the weekend.
Suggested future agenda items include an update on On-Bill Financing at the next meeting and two Directors would like an educational presentation on electric vehicles.
Adjourned 8:06 PM
