GVEA Board meeting, January 28, 2025
GVEA Board Meeting
28 January 2025
Submitted by Eleanor Gagnon
Attendees:
Gary Newman, Chris Bunch, Fred Sheen (remote), Rick Solie, Dave Messier, Tom Delong, Krista Zappone (remote), CEO Travis Million
Executive Session
Legislative Priorities (Travis Million/Yuri Morgan)
Healy Collective Bargaining Agreement (Travis Million)
Aurora Contract (Travis Million)
GT3 Engine Exchange (Chris Forrest)
Strategic Generation Plan Update (Naomi Morton Knight)
December 2024 Power Supply Report (Informational)
Legal Reports (Informational)
Education/MAC Report/Member Comments
4.1 Resource Adequacy (Ashley Bradish and Travis Million)
RE: brownouts
Low probability
Wanted to be transparent and let member-owners know there are scenarios where generation wouldn’t meet the load. Used to rely on energy from Southcentral, but can’t do that since the gas crisis started (1 year ago)
Had a short-term contract with ENSTAR, expired, won’t be renewed due to gas crisis
Work on transmission line from Bradley Lake has been shifted to winter, due to wildlife regulations, so not available.
Probability that multiple large generation units could go down at the same time which would create the issue is very low
Have reached out to industry and the military to figure out how to ensure the majority of members won’t be impacted
They are willing to lower load first
Low probability of this occurring but wanted to make sure people knew as far ahead as possible
[Note—the word “transparent” was used repeatedly.}
Have put up a dedicated webpage to inform members about the potential for load shedding
Will detail in Ruralite magazine
Members are encouraged to call with questions
Service territory is broken up into 13 zones, would cycle through each zone if brownouts were necessary (each would go down for 30-60 min)
Critical services wouldn’t be impacted *fire, ambulance, etc.)
Tom Delong on demand-side management:
Demand-side management will be discussed at retreat
MAC is interested in bringing forward proposal based on what other utilities do
Has been a strategic objective since 2021
Haven’t done a good job on that
But would be helpful due to the gas crisis
Gary Newman:
RCA opened informational docket on curtailments
Two large mines have interruptible loads, if GVEA can’t meet demand regardless of source, then they can shut them down first (one interruptible, one interruptible to a point –POGO and Kinross)
Is there a scenario where we would be so constrained that we could not make enough power even after closing the mines?
People got message “turn on your generators, GVEA can’t handle it”
Ashley Bradish (staff)—GVEA always encourages preparedness for their members. Always have emergency kit. They say generator thing regardless of circumstance
Rick Solie
Media characterization was alarmist
Have ability to deal with it through managing load (via zones and mines)
Basic point: most opinions/controversy will fade if we keep up with messaging/education
Krista Zappone
Encourages board members to reach out to their demographics of less tech savvy people
Went to outlying communities and no one saw the press release
Make sure to reach out to member-owners directly
Dave Messier
Do we have likelihood percentages of each scenario?
Travis Million: yes, but not off the top of his head, probability is super low (around 1%)
Have we been communicating with industries?
Ashley Bradish: understanding that GVEA provides critical services they were enthusiastically will to work with them
Tom DeLong
RCA asked GVEA how they plan to deal with gas crisis
What is likely to happen is GVEA looks at contracts (mines can’t completely close) and tariffs
GVEA is going to continue with the message: We have lost economy power, gas contract has ended, and we are temporarily without Bradley Lake power
How is that not going to impact our rates and why aren’t we talking about it?
GVEA needs to talk about what will happen when we inevitably lose access to cheap gas
MAC had a lot of concern about how GVEA recommended to member-owners to have back-up generators, but did not offer any help
No more Home Sense program because not enough auditors
Wants GVEA to be a resource for members
Ashley Bradish: This quarter’s rates included possibility of rate hikes due to Bradley Lake closure and lack of access to gas (lower priced).
Tom DeLong:
Going to investigate the use of text messaging for notification
Will be a big deal
Dave Messier
GVEA is proud of its reliability numbers
What investments are we making to avoid possibility of load shedding?
Travis Million:
We’re in a better place than last year
We aren’t competing as much as last year for fuel
Building additional fuel storage in North Pole (would have weeks of storage)
[Note—no mention of lack of diversification of fuel sources]
4.2 Presentation: 2024 Right-Of-Way Maintenance (Alex Olesen)
4.3 MAC Report (Cody Miller)
Discussed Home Sense/costs
Discussed solar program, is there a way to store solar energy or sell it to others to mitigate some energy costs?
People wanted to know ins and outs of why we’re paying more
Is there a quarterly financial report?
Would mitigate people’s fears of brown outs
Tom DeLong discussed upcoming rate case and what it would look like
4.4 Member Comments
Patrice Lee:
Ideas for improving public image; nice to see additional members added to strategic planning; would like to see open work sessions; executive session makes it difficult for community to effectively engage. Wants them to foster an attitude of making things happen rather than explaining why we can make things happen. Not too late to revisit Healy 2 sale. Have been paying a debt, been sold a lie…”AIDEA has plenty of money to pay foreign companies.”
Joshua Knicely
Encourages board to write a letter of support for RPS, would like clarity on community solar, shared a bit of insider info on upcoming RPS bill, says board could easily afford fines. Says details of community solar plan seem weird.
Mary Burtness
More transparency and member engagement
What’s happening re: grant projects (PACE, ERA, community solar)?
Lack of transparency breeds suspicion and distrust.
Likes idea of ‘beat the peak’ program.
Richard Theilmann
Talking about the load shedding program, communicate when power is going out, supports texts; would like a program where people can sign up to have power shut down when load shedding needed.
Why are we talking about dealing with the outages and not the source of the outages?
Consent Agenda
6.1 Approval the December 10, 2024 Regular Board Meeting Minutes
6.2 Approval of the Fourth Quarter 2024 Board/CEO Expenses
6.3 Review the Safety Officer’s December 2024 Report
6.4 Approval of the MAC Subcommittee’s Recommendation to Appoint Sara Smith to Serve on Seat D on the Good¢ents Board of Trustees
Management Reports
Financial Reports/Form 7 (Daniel Heckman (regulatory) in lieu of Abby Dillard
Dave Messier—Asked for an update on on-bill financing
Heckman
Still being developed
Resource adequacy had to take priority (load shed)
On-bill financing is on trac for rollout in February 2025
Gary Newman
Daniel Heckman gave presentation to the RCA on load shedding/curtailment
Heckman:
RCA received presentation well
Transparency with membership in stark contrast to other utilities
RCA is different with a lot of experiences from various perspectives
GVEA set an example for other utilities
SB152 discussion at RCA. Daniel Heckman was there but not paying a ton of attention, Jessica ? (senior regulatory person) was there
Other GVEA people were also there
Going to be a long process
Senator Giessel proposed new legislation (SB 32)
Management is still looking through it, was introduced last session
Gained traction but didn’t go anywhere in the end
Need to figure out what the impacts are
Designed to bridge gap between regulations “and everything else”
Progress Reports
Member Services (Dillard)
Engineering/Operations (Minnema/Bishop—responses to Directors’ questions)
Rick Solie
Year to date outages compared to last year are significantly higher–due to ice storm?
Would 2024 be an anomaly?
Tom DeLong
Shovel Creek--showed diagram of transmission line. Would require new right of way (is now off the table). Likely going to use existing lines: Fort Knox ones and Murphy Dome Road… Alaska Renewables should get the word out that they will not be doing the first transmission line
GVEA would have to say they don’t know if they were going to put an update about Shovel Creek on their website
Dave Messier
Black Rapid poles are designed to hold more for communication?
Is fiber optics possible in the future?
Tom DeLong—Had an EE specialist, but lost them, will be hiring again
Power Supply (Forrest)
Chief Finance Officer (Villalon)
Management internship program
Enhances staff development
Put senior staff though it
Gary Newman
Re: notification of members when we have to use expensive diesel?
Diesel is not an instant start
MEA is using portsollas(?) diesel engine piston driven…start is 2 minutes
Voltage maximization can be optimized via software, one of the options GVEA has been discussing to save energy in times of reduced capacity
GVEA has bell weather meters plus other things to help with peak stuff, and voltage optimization
Tom DeLong
Finance audit and rate meeting are coming up. Have been working on pilot program
Abby and team have been doing a lot with on-bill finance
[No concrete details provided]
Executive (Travis Million)
Upcoming events
State leg conference, three directors going (Newman, Solie, Messier)
Will try to share priorities with public
Ongoing Board Reports
Alaska Power Association Report
ARECA Education Foundation Report
ARECA Insurance Exchange Report
Calendar/Planning Wheel/Strategic Directives
Good¢ents Report
MAC Report (DeLong)
Two members visiting (member-owners, not MAC) supportive of PACE and ERA, urging to sign deals w/IPPs
Presentation on election sub-committee, looking to streamline election handbook, MAC has task force to reduce redundancies in election process
Have results of member survey report
GVEA scores very low
Scores driven by rates
Switches from phone to email as methodology
Spoke about increasing score
Commented on ability of GVEA to help members with high bill complaints
Lack of auditors, home sense program and energy efficiency raters are problems here
Rate case
Why
Types of rates
Demand charge
Time of use rate structures
Critical peak rates
GVEA has a lot more data than they ever have for a rate case
Scholarship Committee Report
New Business
9.1 Review the 2023 Right-Of-Way Maintenance Report (Policy 6.5 (III)(B)
9.2 Approve the Nominating Committee Applicant for District 5
Bradely Swope is running, so resigned from committee
9.3 Discussion: Legislative Priorities
Talk about signing a stance on RPS
Assign to Administrative Committee?
Looking for board resolution or point by point
Is it the will of the board to assign?
Rick Solie
Have a position outlined in packet for talking to Juneau
Doesn’t see value in spending time on this seeing as its not introduced
Doesn’t want to set board up to take a ton of time on something that won’t happen
Tom DeLong
It would take one meeting of Admin. Committee
One Admin Committee will be spent on resolution of support for RPS?
Dave Messier thinks we should even if we don’t submit [to legislature]
Krista Zappone says do it
They will do it
Leg. highlights (they went through this very fast, so I wasn’t able to catch a lot of it)
Six priorities
Position for Railbelt transmission--state support on matching GRIP funds, ensuring that line is extended from Beluga to Healy
Dixon Diversion (support)
Cheapest form of power
RPS (supports board goals, opposes mandated measure that would cost most)
Natural gas: supports short-term importation and long-term efforts to get ?
Support utilities indemnification over lawsuits from things happening outside of their control
Supports net-metering, Leg. shouldn’t act during RCA regulatory proceedings
9.4 Approve Modifications to the Aurora Contract
Not going to take up tonight
Want more info
Motioned to postpone
9.5 Member Communications
Draft resolution on text messages (introduced by Newman):
“In compliance with and support of a GVEA strategic directive the GVEA board of directors directs management through our CEO to implement text messaging as economically provided with NISC software at the earliest possible time. Services to be provided are for enhance [sic] member communications, increase efficiencies, member engagement and potentially reduce the increase in our fuel and purchased power rates.”
Rick Solie—What about the potential disenfranchisement of people who don’t text/are technologically disadvantaged?
Ashley Bradish (Director External Affairs)
Good point, need to think about this for every avenue of communications
Wouldn’t be any different from existing methods
What they can do with NISC: can text only on opt-in basis, members would need to subscribe through mygvea portal
Subscriber level is super low
Rick Solie—Is PR bound to do something?
Ashley Bradish—yes
Tom DeLong
Why does GVEA have to do opt-in?
GVEA needs to catch up
Likes word implement (binding word)
“Hates to say it….but just do it”
Chris Bunch—Goodcents has people automatically opted in, why is NISC different?
Ashley Bradish— GVEA has phone numbers
Gary Newman
Why not email?
Phone calls are protected
Facebook is opt-in
Dave Messier
Supportive
Cheap easy way to improve member communication
No where to go but up
Tom DeLong
RCA hearing, newest commissioner has experience with co-ops
Brought up text messaging as preferred method of communication
Need to get ahead of this, instead of RCA having to enforce GVEA to communicate with members
Krista Zappone
Opened mygvea and tried to subscribe but could not find an option.
Not sure how useful that is.
Alternative version of resolution, written by staff, introduced by Solie:
“To foster member owner engagement with enhanced communications and support GVEA mission the GVEA board of directors direct the president and CEO to evaluate and implement the means of directly communicating to members via text messages, with the goal of reaching the most members possible in a manner that is operationally, technological and financially sound and efficient.”
Vote on alternative resolution:
Newman opposes, DeLong abstains, all others vote in favor. Passes 5-1.
Daniel ? (staff)
Thinks goals are good
There are gaps
Languages provides more flexibility
Good of the Order/Director Comment
Agenda Items for Future Meetings
