GVEA Board Meeting, Dec. 14, 2020
by Jim Schwarber
The December 14, 2020 GVEA open Board meeting began at 5:00 PM to accommodate a formal Legislative Briefing by CEO John Burns to Alaska state legislators and their staff. Nearly 80 people were signed onto the virtual meeting using Microsoft Teams. The online agenda was updated at noon to add a resolution for adopting and funding a “Benevolent Fund” to assist member-owners impacted by COVID-19.
Following Mr. Burns’ detailed presentation about the 75 year history of GVEA and its outlook and priorities for the future, he took questions from the legislators. His PowerPoint presentation is included in GVEA’s December 14 Board Meeting Member Book at https://www.gvea.com/wp-content/uploads/2020/12/December-14-2020-Member-Book.pdf.
Mr. Burns said GVEA needs to make big decisions within two years on replacing or upgrading old electrical generation equipment, such as Healy 1. GVEA has been a leader in adopting new technologies such as BESS, the largest battery storage system in the world when installed; the largest wind power project in Alaska at Eva Creek with 25 megawatts and room to expand; and a solar PV ‘farm’ that was for a time the largest in Alaska. GVEA’s future will not be the same as it’s past. There is improved coordination among the Railbelt utilities to potentially lower the cost of power and increase reliability.
Current priorities for GVEA include cooperation with other Railbelt utilities, supporting the state Renewable Energy Fund and Power Cost Equalization Program, addressing wildfire liabilities associated with right-of-ways, and urging an Interior member be added to the Regulatory Commission of Alaska, since there is no Interior representation on this important board. The Bradley Lake Bond will be paid off in July 2021, resulting in the annual $30 million payment to now go to the State of Alaska to apply to Railbelt utility upgrades, per the original funding agreement for Bradley Lake Dam.
Representative Grier Hopkins mentioned the November 15th expiration of the statewide moratorium on utility disconnects, then asked, “Will electric disconnects resume on December 16, 2020?” Mr. Burns replied, “Yes, we are resuming disconnects on December 16; GVEA is the last Railbelt utility returning to disconnecting.” He then added, “We will continue to accept and honor the COVID hardship forms.”
Representative Adam Wool asked about the Healy 2 Coal plant and was told it is running well. He’s interested in On-Bill Financing and wondered if it will support Electric Vehicle (EV) purchase? Mr. Burns replied no, perhaps just support for EV Chargers.
Former legislator John Davies slipped in a comment about his concerns with utility disconnects – especially in the winter. He said there is a “special urgency, a triple whammy from COVID: impacting jobs and health during the winter time.” He supports the creation of the Benevolent Fund and suggested looking at the local “Plenty for All” organization that helps people stay in their homes. It’s important “to take care of our neighbors.”
Representative Bart LeBon put on his banker hat and asked if there is a policy if a bank contacts GVEA about a customer with a payment problem before their electricity is shut-off? Mr. Burns said GVEA needs to preserve the confidentiality of its member-owners.
Rep. LeBon asked about the gap between the Copper River and GVEA’s utility lines – will the military be able to help construct that missing piece of electric intertie? Tom Delong, Chair, said this link is being discussed among the Railbelt utilities, and has an estimated cost of $1 billion. This concluded the Legislative Briefing.
COVID Moratorium
The Board then revised the agenda to insert a new item before Member Comments: “COVID Moratorium Update.” This was added to explain what GVEA is doing and address concerns of member-owners so they “better understand” the moratorium situation.
CEO Burns said that GVEA was very proactive at the start of the pandemic, and began a moratorium on disconnects prior to SB 241 and its moratorium mandate. He repeated, “The last thing we want to do is disconnect a member-owner.” He then confirmed GVEA has resumed the disconnect process. He tasked two GVEA Member Services staff, Abby Dillard and Melissa O’Connor, to explain their work related to disconnects.
On March 18, 2020, GVEA voluntarily stopped disconnects for delinquent members. In April 2020, the SB 241 shutoff moratorium protection went into effect. It expired on November 15, 2020. During the moratorium, affected member-owners were asked to complete two affidavit forms to be eligible for moratorium protections. GVEA did lots of outreach and followed RCA guidance. After SB 241 protections ended on November 16th, GVEA again voluntarily added 30 days of moratorium to allow member-owners to continue submitting the two forms. GVEA has resumed sending out disconnect notices; member-owners have until Dec. 16 to apply for payment plan and avoid penalties, fees, and possible shutoff.
Procedures are set in regulations; initial disconnect notices were sent at the end of October. Typical steps taken when a member-owner is late paying bill: after 26 days overdue, GVEA sends a notice; after 41 days late, an initial disconnect notice is sent with a shut-off date; three days prior to disconnection GVEA makes notice in-person or by telephone to the member-owner. The existing GVEA tariff includes a payment deferment process, too, that is separate from the COVID process that expired.
GVEA’s disconnect policy applies year-round. The current number of disconnects is comparable to a normal year. Mr. Burns said the present situation is “consistent with how we’ve always done it.” Director Dave Messier gave an example of a tariffed payment agreement compared to COVID-type: the tariffed reconnect fee is $91, plus 1/3 down payment on what’s owed, with minimum three months to pay off, or up to 12 months. The COVID program waives fees and allows ten months to pay overdue balances off. Generally, there are no disconnects of those member-owners who contact GVEA Member Services to work out a payment plan.
Member comments began nearly 90 minutes after the start of the open Board meeting. Nearly a dozen member-owners provided input, with most expressing concern the end of the shutoff moratorium was premature. Several member-owners who had indicated they wanted to testify were no longer online.
Member-owner Cathy Walling expressed concern that GVEA will no longer accept COVID forms tomorrow. She would like GVEA to continue accepting these forms beyond December 15th. She supports the MAC effort to help develop a pilot On-Bill Financing Program.
CEO John Burns stepped in and said he would work with his staff to have them extend the time window beyond tomorrow for member-owners to complete the two COVID affidavit forms. Later during the meeting Mr. Burns clarified that GVEA was only extending the window for submitting the two forms – there will be no extension by GVEA of the disconnect moratorium.
Member-owner Terry Chapin thanked the Board for the presentation and their respectful attitudes. He asked if GVEA has looked at coordinating with other groups in Fairbanks for meeting member-owner needs for financial assistance. He encouraged GVEA to extend other opportunities for helping member-owners.
Member-owner Lou Peters echoed others’ concerns for having power cut-off. He urged GVEA to extend the time-period to submit the COVID forms. This is an unprecedented event; it’s proper to go over and beyond in response; don’t compare Fairbanks to how other places respond.
Member-owner Jim Schwarber commented in support of creating a Benevolent Fund to assist member-owners facing disconnection. This fund is an example of GVEA’s active community support. He urged the GVEA Board to extend the shut-off moratorium until the Covid pandemic crisis ends. His third point was in support of adopting a robust On-Bill Financing program using the ‘Tariffed on bill’ loan option.
Member-owner Mike DeLue said COVID’s impacts affect people at different times in different ways. Also, it’s not just COVID, other systemic issues are at play. It’s not good to shut off power at -50 degrees.
Member-owner Tristan Glowa thanked GVEA staff’s effort to work with member-owners still in crisis. He said it’s painful to disconnect electricity in the winter. He asked GVEA to extend deadlines; “it’s time to double-down now, not back-off.” The global climate crisis looms, too.
Member-owner Patricia Rivera thanked the Board for behaving compassionately. “No one should lose power in the winter.” She thanked GVEA for extending the deadline to complete the COVID forms.
Member-owner Allison Brooking supports extending moratorium on disconnections. It’s not fair to compare this crisis to past situations.
Member-owner Mr. Peters supports extending the disconnect moratorium a bit longer, at least until the Benevolent Fund is established. We have harsh winters.
Member-owner Jessica Girard, the Executive Director of the Fairbanks Climate Action Coalition, implored GVEA to extend the moratorium as long as possible through this crisis. She’s excited about the new Benevolent Fund, though notes it is not yet in place. She pointed out it is not useful to compare GVEA to the rest of the state. “This is not a historically normal moment” in time.
Member-owner Diane Preston commented in the Team’s Chat due to microphone problems calling in.
Member-owner Phil Wight thanked the Board, management, and employees for the GVEA history lesson. As an AKPIRG Policy Analyst, Mr. Wight asked for an explanation of the distinctions between the COVID policies and the GVEA Tariff policy. This was the last member-owner comment.
Member-owner Advisory Commission Report
Richard Theilmann reported on the Member-Owner Advisory Commission (MAC). He said about 25 people participated in the Teams platform training. The MAC supports allowing extra time for member-owners to pay their bills.
Alyssa Norris, Chair of the MAC On-Bill Finance Task Force, reported on their progress towards having a final report for the January 2021 Board meeting. So far during their weekly meetings, they have decided to recommend the ‘tariffed-on-bill’ finance option. On the technology side, they identified eligible items to include LED lighting and smart building outlets. For the Pilot Program, they are suggesting a $15,000 individual cap and a $30,000 cap for businesses. This will provide for enough participants in the pilot program to learn lessons to help in the design of a larger follow-up OBF program.
Benevolent Fund created unanimously
The GVEA Board unanimously adopted Resolution 115-20, which created and funded the Benevolent Fund – “Members Serving Members.” The purpose of this fund is “to provide financial assistance to those members who are experiencing financial hardship and who, although they have contacted GVEA and entered into a payment plan, nonetheless, require additional financial assistance in order to avoid their electric service being disconnected.” GVEA donated $250,000 of “Class B equity” funds derived from unclaimed capital credits. This donation will not affect consumer electric rates, has no tax consequences, doesn’t need RCA approval, and will be administered by one or more third party community nonprofits, such as Love, INC (https://www.loveincfairbanks.org/ ). Information about the Benevolent Fund and how to make donations to it will be posted on the GVEA webpage (https://www.gvea.com/benevolent/).
Director Gary Newman confirmed GVEA will be extending the period to accept COVID forms, but GVEA is not extending the moratorium on disconnects.
The remainder of this 3½ hour long meeting dealt with standard reports. Director Dave Messier commended GVEA staff for their solid support hooking up the many new 2020 Solarize Fairbanks Solar PV installations on member-owners homes.
