GVEA 2005 deficit and Healy Experimental Coal Plant

While GVEA members should have received their ballots in the mail about giving away $300 million of assets, more things are happening. Homer Electric Association is working with AIDEA, the state agency owners of the experimental coal plant in Healy, to get the plant restarted. GVEA is in mediation with AIDEA over access to the site, built on GVEA land. More info is available at www.chena.org/gvea.

GVEA has some concerns about making sure they stay in the black this next year and next, as they let themselves lose money in 2005. The stated reason was they had to pay back in December 2005 a few million dollars to members when only 5.88% of their 8% rate increase was granted by the RCA. However, they didn’t say is that 1) the 8% was only initially allowed to be collected on an interim and refundable basis, and 2) they were told to give back the money in July 2005 by the RCA. GVEA thus had 6 months to cover the difference, but chose instead to fight giving back to the members what was due them, thus lost money. Another loss in a 3 year period and that puts them at risk for increased interest rates on loans. More about this on the link above.

I certainly like having electricity and am willing to pay a fair rate, but as a member-owner, would like to hear more than just than the one way spin. This is why I encourage regular and effective two way communication between member-owners and their board members. I’ve set up a separate blog to encourage comments at gvea.blogspot.com

 

GVEA members weigh in on G&T proposal

I’ve had a number of GVEA members contacting me regarding GVEA’s proposal to transfer $300 million of assets out of the members’ control. I received a fact sheet from some of them, who obviously spent some time on it. It is summarized below. You can view the entire document at www.chena.org/gvea/gt-info.pdf or on their website
www.savegvea.com

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GVEA Ballots Hit the Mail 11/20/06!
They should not be thrown out with the rest of your junk mail!Ballot Issue 1 strips GVEA Members’ voting rights forever
We Recommend: Voting NO on Ballot Issue #1, and YES on Ballot Issue #2

By a vote of its members, GVEA is proposing to transfer $300 million worth of power generation plants and transmission lines to a separate co-op known as GVEA G&T (i.e., Generation and Transmission). If Ballot Issue 1 is approved, the new entity would never again need GVEA member’s approval for major decisions. Members would lose the ability to vote on matters related to power generation plants and transmission lines, features of ownership that have the greatest impact on our electric bills.

According to our review, numerous problems exist under GVEA’s proposal. For example:

• The potential savings which GVEA claims under a G&T co-op are highly inflated. They are based on an “apples and oranges” economic comparison, rather than the financial criteria established by the Rural Utilities Service for loans to utilities.
• Currently, GVEA Ratepayers have the ability under the existing bylaws to intervene on bad decisions such as the Healy Clean Coal Power plant fiasco ($300 million total cost and still rising, which was partially funded by GVEA). Under the GVEA G&T Bylaws, we would have no direct say over a future ill-fated plan or decision.
• GVEA G&T Bylaws could be amended without the explicit consent of GVEA Members to allow:
• Expensive/controversial power generation and transmission projects that could only proceed with minimal public oversight (i.e., such as building a nuclear power plant or routing transmission lines through critical habitat).
• The sale or purchase of major power generation and transmission assets.

As concerned Members, we’ve made in-depth comparisons between the current GVEA bylaws, those proposed for GVEA G&T, and GVEA management’s promotional claims. Our analysis is a detailed 2-1/2 page technical report that summarizes: a) how and why these worst case scenarios and many others could unfold, and b) additional problems embedded in GVEA’s promotional materials, and c) the proposed bylaws:

Source Document Links:

• GVEA Bylaws: http://www.gvea.com/about/bylaws/
• GVEA G&T Bylaws: http://www.gvea.com/file/?id=gvea-g-and-t-bylaws—oct06.pdf
• Ruralite GVEA G&T Promotion: http://www.gvea.com/file/?id=nov-ruralite.pdf
• Ballot Issues for 11/20/06 Ballot: http://www.gvea.com/content/?id=gvea-gt&

 

GVEA G&T Documents and Resources

Probably time to take a look at the record of some of the official submissions thus far on GVEA’s G&T proposal and what else is out there in the media.

Filings with the Regulatory Commission of Alaska

GVEA G&T initial request, lots of details (2 mb):
http://www.chena.org/gvea/u06069_1.pdf

List of filings and orders: http://rca.alaska.gov/data/displayDoc?docID=0703200612334127

Request for confidentiality: http://rca.alaska.gov/data/docketDetail.html?docket=U-06-069

Ruling on first set of issues: http://www.state.ak.us/rca/orders/utils/2006/u06069_2.pdf

GVEA G&T revised bylaws on the agenda to be adopted (or not) at Nov. 27, 2006 G&T board meeting

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Other media reports:Dermot Cole, Fairbanks Daily News MinerEster Republic