MEA cancels coal plant idea

Reading the Nov. 10, 2007 ADN, MEA (Matanuska Electric Association) announced it is canceling efforts to build a large coal plant in Matsu. They do have issues with not having any of their own generation, but this idea seemed ill advised.

It was reported that MEA will stop pushing this coal plant idea due to poor economics. This seems like face saving. What should be apparent is that, forward looking, there will be less economic incentive to burning coal with CO2 emissions factored in. A wise decision, for whatever the stated rationale.

If those proponents for coal are so gung-ho, why haven’t they worked to buy power from the AIDEA-GVEA-Usibelli experimental coal plant in Healy that cost the state and feds nearly $400 million? Of course, that’s only a 50 mw plant.

Long term decisions need to be made with carbon footprint considerations. We’re all on the same planet (some more than others) and share a common future with climate change mitigation and adaptation. Coal might be plentiful, but about the most destructive form of non-renewable energy in terms of CO2 and toxic emissions.

Seems like a natural gas bridging solution for just in-state use would allow us about 500 years of stability. What’s the big push to export?

That being said, I hope someday MEA will get be able to be less political and confrontational in its approach to getting things done. They may feel besieged, but maybe there is a reason.

 

Utility Plans need full environmental considerations

Electrical utility plans need to have a full accounting for environmental costs, especially considering the challenges of CO2, climate change and the costs we will bear in the future for having changed so much of our environment.

Matanuska Electric Association is now going out to members to ask about siting for a coal fired power plant, justified by a new state prison to be built. This was recently reported in the Anchorage Daily News. There are a number of members who believe a coal plant has environmental concerns that have not been taken into account. The CH2M Hill Integrated Resource Plan (IRP) commissioned by MEA is not available to the members, so they have no way to review it. I’m happy that GVEA hasn’t been so secretive with their IRP and having it available to members for review can lead to a better report. Members don’t charge for their input.

In a recent study commissioned by the University of Alaska Fairbanks to look at meeting future power needs, they also came out with a recommendation to build (another) coal fired power plant on campus. Having access to the report helped point out that the economic analysis didn’t include any carbon cost analysis, no substantive consideration of alternatives and a near-total wash on further conservation/demand side reductions. You can download the Utility Development Plan at the bottom of the linked page in 3 different sections.

When GVEA performed an Integrated Resource Plan in order to justify the experimental coal plant in Healy in the 1990s, the study found that conservation would cost 1.5 - 2 cents/kwh vs. 3.5 -4.5 cents for a new plant. What the MEA IRP found is anyone’s guess. The irony of UAF’s plan to add a coal plant is that a coal plant is either on full time or it isn’t. There is no load balancing one can do without hours or days for starting a plant. If one builds a 20 mw plant, the most efficient use of that plant is to use 20 mw, not less. This is actually a disincentive for conservation.

I also notice that Governor Palin just awarded Usibelli Coal an award for exporting large quantities of coal to Korea. Rewarding a company for exporting a product that creates pollution that alters our environment? This is the same governor who just created a sub-cabinet level group to find ways that the state can reduce its “contribution” toward climate change.

With all the recent ramp up in discussion over climate change and the added CO2 that coal puts out, it seems like the discussion and research being performed demonstrating all the hazards aren’t being translated into action.

 

"Nucular" Power

With the State of the Union coming soon, the buzz is that George Bush will talk about enhancing “nucular” power as a means of combating global warming and increasing our energy independence.

Nuclear power has been given some incredibly large incentives in the last few congresses under the Republicans. I ran across an article that explains a lot more than I could.

The push for nuclear energy is compelling except for the fact that accidents are extremely deadly and that we don’t have safe places to put spent fuel that remains radioactive for thousands of years. It takes hubris to think we could be smart enough or know enough about what the future holds for a section of the earththat far ahead. That hasn’t stopped them from trying.

A story more close to home is a plan hatched by Toshiba to put a sodium based nuclear reactor in Galena Alaska, a mostly native village and formerly a forward Air Force base housing a handful of fighter jets. What I find particularly interesting is that this reactor can’t be licensed to be installed in Japan, home country of Toshiba, so they suggest it for the Indians of rural Alaska? Smallpox infested blankets anyone?

I’d be more inclined to support fusion over fission, as that would leave us without the nasty radioactive byproducts. We haven’t figured out how to do this yet, but the sun has. Maybe we could spend a large portion of our nuclear subsidies to subsidize solar energy? Hello? Is anyone there?

 

GVEA vote results

It seems like a long effort on my part, but it is time to re-evaluate and move forward.

Here are the vote results for the two ballot issues submitted to members:

* * * * * * * *

For transferring assets to the GVEA G&T
Yes 2653 41%
No 3878 59%

Vote fails. GVEA G&T assets remain with GVEA.

* * * * * * * *

For allowing all but board member and spouses to participate in GVEA alternative energy programs (e.g. SNAP)

Yes 4304 66.4%
No 2180 33.6%

Vote passes. All but board members and spouses may now participate.

* * * * * * * *
Check out the more detailed vote tally

See http://gvea.blogspot.com for comment on this or further GVEA issues.

 

GVEA second to last posting

The GVEA website now includes links to the GVEA G&T, under board of directors. We’ll see how long it stays there.

After announcing results of the vote Mon. night of the G&T proposal vote, I would like to move GVEA discussions over to a separate blog http://gvea.blogspot.com so we can work to get two way communications between the GVEA organization, board and membership.

It will also allow this blog to get back to other things without being buried in GVEA issues. There is life after GVEA (:-).

 

GVEA G&T Articles of Incorporation and the smell test

Listening in on KFAR radio today to board members Dan Osborne and Tom Delong discuss the G&T proposal, one caller requested GVEA to post the G&T Articles of Incorporation. I had already done so, extracted from GVEA G&T’s larger RCA filing back in June 2006. A list of documentation was also posted. Sorry they didn’t mention it on the radio show as I think I’ve presented a pretty complete picture of the proposal with links to all sides of the issue.

As far as the radio show, it went on for 1.5 hours. Everyone appeared to have their chance to present their points more than once and got a number of callers to prompt the occasional spirited exchange.

I did hear an official word that 5369 ballots had been turned in as of Wed. 5 pm. Anybody wanting to come down and observe the ballot counting process should know it will be started next Mon. Dec 11, 2006 6 pm in either the GVEA Board Room (space willing) or the Training Room on the 2nd floor of the Operations Bldg. behind the administrative bldg. at GVEA offices on Illinois St. My understanding is that MAC members will be doing the counting.

I’ve learned a lot during this G&T affair, but one easy recommendation to GVEA is to separate the ballot collectors from the staff who are charged with advocating on one side of the issue, in this case the P.R. folks. Not that I believe any ballot stuffing is going on, but, as Government Affairs Director Tom Irwin might say, “It doesn’t meet the smell test”.

 

Turn in those ballots

I went down to GVEA to turn in my ballot in person a couple days ago. Jokingly I was asked if I wanted to share how I voted. Let them guess.

Besides the full page Newsminer ads, GVEA also produced 15 second radio and TV spots. Very basic, just the big $30 million figure flying across the screen, with any of 4 board members telling you to vote so they could save you money. Kind of reminds me of sale advertisements, where you have to spend to save. Pretty dishonest presentation IMHO, even given the limitation of 15 seconds.

So I hope everyone that will has turned in a ballot. The last time they can be turned in (received by GVEA) is 5 pm next Monday, Dec. 11, 2006.

 

In Your Face

GVEA has taken out 3 days of a full page ad to promo the G&T. I’ve posted it here, but have done a bit of editorial corrections, as I see it. GVEA spent $5,000 of the members’ money on this ad.

While missing board member Delong declined to be in the ad due to the advocating for the G&T, perhaps it would have been better to have him included with a caveat that he has concerns about the G&T proposal. It appears kind of one sided as is.

That being said, the ad is pretty much in your face, overkill, far more than one would expect for something that only saves the members’ some of their capital credits in advance. I was told by GVEA executive management that, if the members reject this, the issue will be dropped. Others have expressed conspiracy theories, which I would like to reject, but it makes me wonder why not just let the members vote? Is it just the ego of potentially not getting their way?

I do worry that GVEA will fail to meet their financial target in 2006, which will put them in default for the second year in a row, causing them to have to increase their margins. I certainly hope this is not the case, but they’ve been on a big spending spree the past few years and don’t show signs of tightening their belts in a number of areas. I don’t mean those that would create safety or service issues for consumers.

I think that there ought to be deeper scrutiny of the budget beyond that of staff and the board, if they can’t seem to do it themselves. There was just a several hour 2007 budget workshop with the board, but the board appeared to approve it with only minor modifications. I’m not a big fan of wholesale budget cutting, but we the consumers pay for those who won’t strategically conserve during lean times. If it is our utility, as the ad indicates, how about making the budget easily available for members to critique?

 

GVEA G&T finally has bylaws - the Days of Their Lives

I attended the GVEA board meeting last night, followed by the second meeting of the GVEA G&T ever since its inception in Dec. 2003.

The GVEA G&T finally has bylaws adopted, the same board as the GVEA Board, and the same officers for now. The appointed CEO is GVEA CEO Steve Haagenson. One board member suggested me for the position - I wisely refused.

There was no discussion over G&T board or CEO compensation, though the board was adequately compensated by their workshop all afternoon and the meeting that went till after 10 pm. I think they received between $800 and $1000 each. They usually get $350 for a workshop and $450 per board meeting. That’s over $100/hour. Plus good food.

During the GVEA board meeting board comments, concerns were expressed by staff and board about information that was out in the public about the G&T proposal. Staff felt like they’d been on a constant road show, but heard little back from members. Board directors felt like they’d received a lot of calls from members, some with what some felt was inaccurate information. Some seemed surprised and a bit perturbed. I’d opine that they should be pleased that members are calling on their district reps to explain the G&T proposal.

As far as inaccurate information, I can’t speak for others, but I’ve certainly tried diligently to be accurate. CFO Grubich indicated I blogged that GVEA intended to sell the assets. I only repeated what he and Tom Irwin said is that they could sell the assets. Interestingly, with all the discussion about communications, they don’t seem to realize that they are welcome to offer comments on any of my blog entries.

The Town Hall meeting earlier this month at Noel Wien Library was video recorded and one can download the video from the GVEA website. With a really fast connection, it will take at least as long as the meeting of 1 hour 40 minutes - it’s 200 mb big. One of the directors commented he tried with his dialup and gave up. It was the first they’d heard of it. For all the great reputation GVEA has for quality IT support, I’m surprised nobody warned the PR folks about this.

One of the more entertaining parts of the meeting was a presentation given by Tom Staudenmeier, a former Matanuska Electric Ass’n board member from the early 1980’s. He was lobbying for a regional utility, with Ross Perot’s people (whoever they are) to come in and set it up. He was ready to put many utility managers and former legislators in jail as crooks, even Gov. elect Sarah Palin’s father-in-law. Chair Bill Nordmark didn’t enforce any time limit, so knowing that, I feel that there must be no time limit on member comments (not that I would ever so abuse). Some of the old history makes an interesting read

 

GVEA membership vote recommendations

Here are my recommendations for voting by mail. Of course, members should educate themselves before voting. The mail in ballot must be RECEIVED by 5 pm Dec. 11, 2006 at GVEA offices.

To read why I recommend voting this way, please read my Community Perspective in the Fairbanks Daily News Miner. The Newsminer has other GVEA articles and letters available

Ballot 2006

Membership Vote to Approve the Transfer of G&T Assets

GVEA should transfer generation and transmission (G&T) assets to the Golden Valley Electric Association Generation & Transmission Cooperative (GVEA G&T)

I Approve

X I Disapprove

===========================

Amendment of Bylaws

Article IV, Section 3
[this change allows all but GVEA board members and their spouses to participate in GVEA sponsored alternative energy programs, such as SNAP]

X I Approve

I Disapprove