GVEA Board Meeting: Nov. 23, 2020
by Jim Schwarber
About thirty people attended the November 23, 2020 Board meeting of the Golden Valley Electric Association cooperative via Microsoft Teams. Director Gary Newman provided a ‘Safety Moment’ on the severity of the current COVID outbreak, reminding us it is unsafe to gather or travel. “Best to wait until we are vaccinated first,” he said.
BESS refurbishment
Next, Nathan Minnema with GVEA’s Engineering Services provided an ‘Education’ update on their aging Battery Energy Storage System (BESS) and proposed electric vehicle (EV) chargers. BESS was put into service in 2003 to support power transfers from Healy and provide ‘transient stability.’ The control system components are reaching their end-of-life. In June 2020 GVEA issued an RFP for BESS refurbishment or replacement. The RFP closed in September. GVEA received and is reviewing five proposals ranging in cost from $8 - $70 million, with two to three-year project timelines.
BESS benefits include providing ‘Spinning Reserves’ – valued at $10-$20 million year. BESS assists with the regulation of renewable components; in 2019 BESS helped with the Eva Creek Wind Farm 38 times. BESS also helps support voltage levels and is capable of injecting 40 MW of immediate energy into the system to support ‘transient stability.’ Finally, BESS helps to mitigate outages by preventing load shedding in case of events impacting the transmission or generation of power.
After 17 years of use BESS’s nickel-cadmium batteries are at 75% capacity. Strategic planning is looking at how a future ‘BESS-type’ project could fit in with other Railbelt projects, a Railbelt ‘Integrated Resource Plan’ (IRP), and with large project approval. This includes possible coordination with the Railbelt’s Electric Reliability Organization (ERO). And how will a new or refurbished BESS align with GVEA’s generation and renewable energy integration and strategic planning? GVEA is discussing with Homer Electric about their new BESS (it is similar to one of the proposals received by GVEA). Seeking potential synergies. When it was installed, BESS was the largest battery in the world! Staff will present findings and recommendations on proposals to the Board of Directors in the first quarter of 2021.
Electric Vehicle Working Group
A state-wide Electric Vehicle (EV) Working Group meets routinely. It is made up of folks with an interest in this technology. GVEA is holding discussions with utility counterparts to determine ways to facilitate and encourage EV adoption and growth in the Interior and along the Railbelt. Interested parties are working with the Alaska Energy Authority (AEA) in utilizing Volkswagen settlement funds for EV charger deployment. There is an open RCA Docket on EV Charger rate design.
AEA has allocated 15% of the $8.125 million VW settlement funds or $1.22 million dollars towards electric vehicle charging stations in Alaska. AEA is expected to issue a request for applications (RFA) in the near future. GVEA is actively working with Matanuska Electric Association (MEA) to submit an application for EV chargers along the Parks Highway. Chosen applications will be used to define a project, which will be sent out at as a RFP to EV charger installation companies, such as Chargepoint, Tesla, Evgo, etc. On page 88 of the meeting member book is a map of existing and proposed EV charging stations in Alaska (page 13 online).
In early 2021 GVEA staff will submit a proposal to the Board of Directors for installation of a Level 3 EV charger at the GVEA Main Campus in Fairbanks. GVEA will also submit an application to AEA jointly with MEA for Park’s Highway corridor EV chargers that may be located in Healy, Cantwell, and Willow.
Important considerations include who will own the EV charging stations -- GVEA or member owned? Coordination is needed among utilities to decide whether to develop a Railbelt plan or local EV plan. Are changes needed to the GVEA Tariff to be able manage EV chargers? Are incentives to commercial customers to install or host EV chargers needed?
A Director asked “What is happening to the other 85% of the $8.125 million VW settlement awarded to Alaska, since only 15% or $1.22 million is dedicated to EV chargers?” Answer was not known; though money is administered by the Alaska Energy Authority (AEA).
However, according to the AEA website:
“Alaska will disburse the $8.125 million fund as follows:
School Bus Replacement - 60%
Electric Vehicle (EV) Charging Infrastructure - 15%
Railbelt and Copper Valley Region - $950,000
Other areas of the state - $250,000
Source:
http://www.akenergyauthority.org/What-We-Do/Grants-Loans/Volkswagen-Diesel-Settlement-Grants ]
Member-owner comments
Corrinne Taylor facilitated Comments from three Member-Owners:
Kirk Martakis of Cantwell said he bought a Chevy Volt in 2017; he has had only one public charging station for 3 years now at Cantwell. He’s a member on EV Working Group; estimates a new Tesla EV is brought into Interior Alaska each week. “3-phase and resale power is needed for EV Chargers to expand.” Everything is electric in his house. Offered to help.
Patrice Lee, speaking as a citizen said Interior Alaska needs a comprehensive energy plan, including renewables. The ERO is positive step. Best Available Control Technology should be used for protecting the region’s air shed. All need to work together on meeting energy needs affordably, efficiently, and cleanly
Mike Craft said the brightest spot in his week was listening to the BESS and EV education presentations. The Fort Wainwright Draft E.I.S. is ongoing, hopes GVEA is participating and will contribute input.
Member Advisory Committee (MAC) Report by Richard Theilmann: Members well represented; thanked GVEA for Capital Credits information; members asked many questions about credits. Director Dave Messier asked Richard about the MAC’s On-Bill Financing Task Force. Richard had no update; though TF is “progressing.” Kathryn Strle reported the TF met twice; TF is meeting outside of normal MAC meetings. Director Gary Newman asked about how many MAC members used just phone vs video option for attending their meeting? Richard said some members have problems with bandwidth at home; some older MAC members may not be up to speed. Gary asked if training might help. Richard considering same thing; though it is not happening yet.
Other business
Moving on, the Board approved the early retirement of Capital Credits. Scholarships are funded by unclaimed Capital Credits.
Due to there being two lost time accidents, the Safety Report was not on the consent agenda. The Board is required to review the safety report whenever there is a lost time accident by a GVEA employee.
The Board approved its 2021 meeting dates. They continue to review changing the day of week they meet and are running the change through their Administrative Committee. The committee will present any change later, if needed. Board adopted the regular meeting schedule for now. “We have always met on Monday,” said Chairman Tom DeLong.
Director Messier gave the ARECA Insurance Exchange Report. It was noted that insurer Zurich is not renewing dam insurance; plus insurers are more hesitant to insure fossil fuel intensive facilities.
GVEA CEO John Burns reported the cost of power adjustment or COPA is dropping from 9.6 to 8.2 cents/kWh due to good run times at the Healy 2 coal plant. It is GVEA’s 75th Anniversary; good coverage in Ruralite magazine. A Member Survey is coming out by end of the quarter with some older and new questions. GVEA will be responding with comments on the Fort Wainwright Draft E.I.S. by Dec. 8th; GVEA will have a role in any decision that is implemented for the future of energy on Fort Wainwright.
In closing several Directors thanked John Burns for reaching out the night before by phone and answering a lot of their questions.
Adjourned by 8:30 pm. The next GVEA Board meeting is December 14, 2020.
For more details see the Member Meeting packet for Nov. 23rd available here: https://www.gvea.com/wp- content/uploads/2020/11/November-23-2020-Member-Book.pdf
