GVEA Board Meeting, April 22, 2025

Written By Brian Kassof

Submitted by Eleanor Gagnon

Attendance

Directors Rick Solie, Dave Messier, Chris Bunch, Tom Delong, Gary Newman, Krista Zappone; CEO Travis Million 

 

Members:

12 in audience

 

Member Education/Member Comments 

4.1 Legislative Update (Yuri Morgan) 

  • Representative Burke introduced HB 175 which would require 1 RCA commissioner to be from a community served by PCE [Power Cost Equalization].

    • Also wants to set up a grant fund for the Renewable Energy Fund (REF), would use revenue from REF credit and redirect into REF projects – tied to carbon sequestration funding.

  • Senator Giesel introduced SB 32 –would exempt cooperatives from RCA rate approval for renewable projects under 15 megawatts.

  • Dave Messier: Two questions

    • Fairbanks is talking about getting a commissioner on the RCA, would bill from Representative Pruitt have any legs, and can an amendment be added [to HB 175] to include more diversity?

    • Second question about Giesel bill.

      • Response:

      • Giesel bill: House Labor & Commerce has a lot on its list, so unsure if the Giesel bill will be heard.

      • We are at the time of year where the leg knows what they’ll move on this year and what they’ll have to move to next year.

      • Any bill that has a fiscal note will be difficult to move, so both have a long way to go.

  • Tom DeLong: Wasn’t a similar bill [to SB 32] passed last year, by Giesel?

    • Morgan: Was introduced but didn’t pass.

  • Rick Solie: Shifting authority…where did this bill come from?

 

4.2 Overview of the 2025 Annual Members’ Meeting (Ashley Bradish)

  • Annual meeting is next week

  • Agenda:

    • 45-minute business presentation

    • Q&A with Travis Million

      • 30 seconds for questions

    • Member comments—capped at 2 minutes.

  • Giving away a CAR.

 

4.3 Strategic Generation Plan Update (Naomi Morton Knight) 

  • Freeze on federal funding--got notification from RUS [USDA’s Rural Utility Service] in late March that they could propose changes to their projects [for PACE and New ERA grants] to reflect President Trump’s Executive Order declaring a national emergency.

    • RUS wanted to verify they are still interested in grants.

    • They have 500 characters to indicate potential changes and continued interest.

    • Have been in discussion w/ RUS to figure out how to move the programs forward within the constraints of the original programs and meeting the requirements of the EOs.

    • Giving proposed language.

    • Have a deadline of the 25th, but the 500-character message will only be used to continue discussion.

      • Money has already been committed.

    • GVEA is the only utility in the country that got PACE and New ERA money.

    • Proposed changes for PACE: asking for $100 million, will not include Nenana solar and related interconnection since Renewable IPP has dropped out, but will retain interconnection and battery storage system.

    • For New ERA: will not include retirement of Healy and the refinancing of the debt, proposing to keep all transmission and storage pieces…given the uncertainty of natural gas, they didn’t feel it was prudent to commit to a specific retirement date.

  • Want board approval of changes so they can submit on Friday.

  • Have been continuing systems studies for Shovel Creek and Delta wind.

  • What would it take to interconnect the proposed projects?

    • GVEA is currently developing interconnection queuing system.

      • Shovel Creek: Working on stability and regulation studies, will then be moving onto short circuit and protection study.

      • Delta Wind: Collecting more data, second in queue, behind Shovel Creek. Studies should be complete at the end of 2025.

      • These studies are important because if they don’t get it right, they run the risk of “degrees of damage” to their system, or of the IPP not being able to run their project.

  • Chris Bunch: Why aren’t the studies occurring at the same time?

    • Knight: Can do things linearly or in cluster. Delta project changed turbines for project, we did not want to hold up Shovel Creek while Delta project looked at new turbine manufacturers.

  • Gary Newman: Have there been efforts to coordinate with other utilities, particularly around Shovel Creek?

    • Knight: They are working actively with other utilities on what a collective offtake might look like or collaborative power purchase agreement.

      • Other utilities are receptive, big question is does it work? how can we regulate? and what is the cost?

      • Potential for an RPS and limited supplies of gas has increased interest.

  • Fred Sheen: We are still doing computer modelling for Shovel Creek? For Delta does the turbine change alter their computer modelling? 

    • Knight: Yes and yes.

  • Rick Solie: GVEA is planning to pivot in the grant applications with regard to Healy 2 and Nenana solar…continuing discussion with RUS to get money.

    • Knight: Proverbial keeping their foot in the door as they craft what the projects will look like in tandem with RUS.

      • PACE is pretty solidified.

      • New ERA was chosen based on location, and potential for large amounts of carbon reduction, and GVEA is pretty small, so retiring Healy 2 would have made a big difference.

  • Fred Sheen: We need to keep Healy 2 going until we have replacement base load generation?

    • Knight: Yes--Without an alternative we weren’t comfortable committing to a retirement date.

  • Tom DeLong: Had to amend application because of EO. Unfortunate for Nenana solar that Alaska lost Renewable IPP, “real shame” that they are closing down. Unfortunate situation, but shows why RPS may be important for getting more IPPs [independent power producers]. We know we can spend the money on battery storage and transmission, so it will be money well spent.

  • Dave Messier: How are we structuring work on interconnection and phasing? Don’t want to push off potential vendors.

    • Knight: Lots of precedent for the structure of this in Lower 48. We have had interconnection processes and standards, but this will be complicated by need to incorporate new standards from RRC [Railbelt Reliability Council] and RTO [Railbelt Regional Transmission Organization].

      • Project costs are borne by producers, utility manages projects so GVEA has control over the network and holds the detailed info about it.

      • Potential for bottleneck, but analyzing with a cluster can solve this…however GVEA is analyzing projects in a linear way.

  • Tom DeLong: Interconnection queues is a huge issue in the L48, they can be 10-12 years long…whole industry is trying to figure out how to solve this problem.

 

4.4 MAC Report (Gary Pedretty) 

  • Spoke about the annual meeting, and had a good explanation about on-bill financing. A lot of members didn’t know what it was, so it was helpful.

  • Chris Bunch gave good report about PACE and New ERA and the 500-character limit.

    • Happy to hear progress was made.

  • A MAC member sent a letter to the principal of a school bringing up the idea of high school students getting involved. -Board members all received this letter.

    • Would help highschoolers in job search, since they know what it is and what opportunities GVEA provides.

    • MAC wants Board to know that they think there is a good opportunity to educate future members.

  • Gary Newman

    • We should always take advantage of working with younger people because they take information back to their parents.

 

4.5 Member Comments

Mary Burtness

  • Support RPS

  • Don’t change mission statement

 

John Davies (member of REAP Board, but not speaking on behalf of REAP)

  • Support RPS

 

Richard Thielman

  • Bidwell solar farm

  • Move on the IPPs, cluster approach

  • New generation--how are you going to increase our capacity if there is no generation in the mill.

 

Leslie Dalton

  • Would like to see information officer for Home Sense project

  • Energy saving ideas for general public

  • Would like to see renewables

  • Would like to see 25 acres of solar

 

Patrice Lee

  • Concerned about air quality

  • Support Delta wind

  • Strategic generation plan

  • Mines should be shut down if we get close to brownouts or blackouts

  • What is GVEA’s short-term plan?

 

Eleanor Gagnon

  • “My name is Eleanor Gagnon, I have sat here silently for a year online at first and lately in person because though I pay an electric bill, I am a renter, so not technically a member owner. I hope you’ll allow me to give a comment just this once. This will be my last GVEA meeting since I am moving to the lower 48 in part because of how the air quality has affected my health and worsened my asthma. I really want to share my thoughts at least once. Over the past 1.5 years I have learned a LOT about how the board works and what it does and as I think about all the challenges the board is facing in regards to generation capacity, the Cook Inlet gas crisis, extremely high rates and some of the worst air quality in the nation, all I can think about is that you are making decisions about my generation's future. The quality of the air we breathe, our ability to enjoy an environment like that that a lot of you on this board grew up with, our actual financial outcomes. All of this is impacted by the decisions made by this board, and I hope you take that seriously. To that end, I hope you reject the proposed changes to your mission statement, because this board and utility should recognize your importance to the economic, environmental and social viability of this community and I hope you will not abdicate that responsibility. Of course, I also hope you sign a resolution of support for the RPS. Though I am leaving, this is something that will deeply impact the future and health of your kids and grandkids.” 

 

Consent Agenda 

6.1 Approval of the March 25, 2025 Regular Board Meeting Minutes

·      Fred Sheen would like to amend new business to discuss policy on committee meetings and fees available to board members not on the committee.

·      Withdrew amendment to Agenda because it will be discussed under 7.3b.

 

6.2 Review the Safety Manager’s March 2025 Report

 

6.3 Approval of the First Quarter 2025 Board/CEO Expenses

 

New Business 

7.1 Strategic Plan [ed. note—There appear to be two items under discussion-- GVEA’s Mission Statement and its updated Strategic Plan. Most of the debate is on changing the Mission Statement].

  • Tom Delong: Entertain motion to approve Strategic Plan as presented

    • There were many comments made by directors, changes were made.

  • Rick Solie: Suggests they adopt, then make amendments if they want to change it.

    • Thought this was the consensus document from executive session, so confused why they want to discuss.

  • Tom DeLong: Doesn’t it make more sense to amend, then adopt?

  • Chris Bunch: Given the time, we should adopt, then amend. Easier to keep as a living document.

  • Rick Solie: We should start with it finished already.

  • Gary Newman: I move to adopt, then amend.

  • Tom Delong: Motion to approve as is now.

  • Gary Newman: Economic environmental and social viability have been incorporated into the word stability...but should be more explicit.

  • Fred Sheen: Introduces motion to change back to original mission statement, or at least add environmental back.

  • Krista Zappone: She proposed new mission statement.

    • Thinks old one was too wordy and unnecessary since members have voting power.

    • As good stewards/people who elect the directors are meant to ensure that the directors do support the economic, environmental and social viability.

    • There are a lot of “people out there” with different opinions from the members who made comments today.

  • Chris Bunch: Likes the new one. Covers everything but shorter.

  • Tom Delong: We have operated under this mission statement for a long time, only complaint was that it was too long.

  • Vote called: All those in favor of retaining the original mission statement.

    • In favor Newman, Sheen, DeLong (?)

    • Dave Messier, Krista Zappone, Rick Solie(?), Chris Bunch

    • Dave Messier

      • Staff and consultants [CFC?] said that a shorter, more concise version would allow people to remember it better. 

      • “Doesn’t feel like we’ve lost anything.”

  • Motion to approve Strategic Plan (included in Annual Report at 2025 Annual Meeting)

    • Gary Newman: Lots of items he added, turns out a number are in policy. Trying to make sure that our CEO and staff know the background. This is a three-year overview of what we’d like management to do, and the board will be following up as they get progress reports. Over three years that is 12 reports (quarterly).

      • “This is not everything we would like GVEA to do or be.”

    • Motion passes

 

7.2 FAR Committee Recommendations (Dave Messier) 

a) Resolution No. 103-25: Accepting the 2024 Audit of the Association’s Financial Statements and Related Records 

b) Resolution No. 104-25: Approving the Allocation of 2024 Margins 

  • GVEA had a clean audit, and negative operating margins which is rare.

  • Balancing trying to keep rates as low as possible while investing in our coop.

    • Rick Solie: He is pleased with results.

    • Krista Zappone: Applauds staff work on audit.

 

7.3 Administrative Committee Recommendations (Gary Newman)

  • Items a-e are approving changes to board policies, mainly verbiage.

  • Rich Solie: The Admin Committee has worked through, and had full attendance at that meeting to discuss it.

  • Chris Bunch: Do we want to do Policy 2.6? 

    • Gary Newman: Will do at the end and vote for the others.

 

a)    Policy 1.3: Ethics

·      Changes approved unanimous vote.

 

      b) Policy 2.6: Directors’ Fees, Expenses and Transportation 

  • Fred Sheen: Directors from out of town drive in a lot for meetings and they aren’t compensated, so the committee meetings take a full day. Should have the option to get fees.

  • Krista Zappone: If the [committee] meeting says all directors are encouraged to attend, then they should get fees.

  • Tom Delong: How does this work in practice?

  • Rick Solie: Suggests that we delegate authority to the committee chair.

  • Proposed amendment to allow board chair or relevant committee chair approve payment [for attendance of committee meetings by non-committee members].

  • Adopted as amended by unanimous vote.

 

c) Policy 2.8.3: Director Education

  • Way of encouraging people to do written reports so they can share out w/staff and members.

  • Tom Delong: We made a template and its nearly done.

  • Krista Zappone: Change “himself” to neutral terminology.

  • Adopted by unanimous vote.

 

d) Policy 3.6: Non-Bargaining Employee Benefits

  • Changes needed because of a state-wide ballot initiative.

  • Needs to be effective July 1, 2025.

  • No amendments came from committee.

 

e) Policy 3.15: Voicemail, Email and Computer Usage

  • Housekeeping, no real difference to what they're currently doing.

  • Adopted by unanimous vote.

 

f) Proposed Cybersecurity Policy

  • New policy, prompted by working with the RRC [Railbelt Reliability Council].

  • Dave Messier: Happy that we have something on the books about cybersecurity.

 

g) Legislative Priorities Update

  • Resolution on RPS [Renewable Portfolio Standard] under debate—draft being debated can be found on p. 112 of meeting packet.

  • Amendment proposed to remove bullet point three and change general position statement to “GVEA supports the broad goals of an RPS.”

  • Dave Messier: This decision went to the Admin Committee, but it was clear the Admin Committee didn’t support an RPS, so this should have been discussed in open session.

    • Doesn’t think GVEA will move towards renewables unless forced to, so isn’t opposed to mandated measures.

    • See experience with Railbelt collaboration…only happens when forced

    • Would love to see the utility support an RPS.

  • Tom Delong: 5 people on the Admin Committee, 4 voting members.

  • Fred Sheen: The board exists to decide how money is spent, not the legislature. Tom showed good info about how an RPS would impact members' costs. However, RPS forces them to put money in certain places.

  • Rick Solie: Can speak in favor of current position since it opposes mandates, but disagrees with Dave because he [Solie] “doesn’t support subsidies.”

  • Gary Newman: There is disagreement when it comes down to the actual legislation. This current position is what Chugach did last year, and they are now doing something similar to what GVEA did last year by writing a more detailed position.

    • Agrees that we are doing what is needed from our members.

  • Fred Sheen: Claims RPS is an unfunded mandate, as he also said in committee.

  • Tom Delong: Asks Bunch to take over as Chair so he can propose the amendment noted above [“GVEA supports the broad goals of an RPS”, and take out the third bullet point].

    • Reasons to support an RPS:

      • Basis is economics: batteries have made renewable energy (RE) more reliable.

      • RE increases resilience, the US military is working towards a large goal of adopting renewables because of resiliency.

      • RE is faster to develop...we need “speed to power”. If you want more power on the grid– gas turbines take 5 years to develop. GVEA needs this because of their energy generation issues.

      • Our local airshed will benefit.

      • 93% of new power built in the L48 has been RE.

      • Afraid we’re going to miss the opportunity presented.

      • Very familiar with the bill, lots of offramps, and multiplier options.

      • Simplest analyses: what are the fines if we don’t add any renewables, references this articlethat explains what would happen.

    • RPS is a great opportunity for GVEA to collaborate with the rest of the Railbelt. Additionally, there are lots of offramps. Net metering counts with a 2x factor [RPS bill allows distributed energy to be counted 2x toward RPS goal].

    • Likes the changes made to the bill, if anything had to be tweaked, it should be the fines, not milestones.

    • Motion is seconded by Messier

  • Gary Newman: Replies to Sheen, this is a self-funded mandate...the money [for non-compliance fines] never leaves GVEA.

  • Rick Solie: Opposes amendment because it takes out the parts that would allow him to support a resolution. Will be voting against. Will not debate merits of a bill.

  • Fred Sheen: Will be voting in opposition.

  • Dave Messier: Will vote in favor since it simplifies general support and moves us toward a better future. To speak on reliability… our utility has made comments that we aren't as reliable as we once were and adding new generation will hopefully improve the reliability. There is almost no power moving through the Intertie at the moment, for what might be the first time in his board tenure. This would be a win for rate payers, the state, and GVEA.

  • Krista Zappone: This resolution puts her in a tricky place because she likes renewables, but doesn't feel comfortable voting for a position that doesn’t oppose mandates. Would like to propose an amendment to the amendment that they keep the original position, but remove the third bullet point.

  • Chris Bunch: Not sure if he'll vote because new infrastructure has to come before any new generation.

  • Tom Delong: Legislation or regulation is the only thing that will force utilities to take action. We need the mandates or nothing happens.

  • Fred Sheen: We need a certain amount of base load for renewables, batteries can stabilize the system but it shouldn't be mandated.

  • Dave Messier: “One might argue” that the reason we are in this position with high rates is because GVEA has almost solely invested in fossil fuels which they have zero control over. Oil is declining and we are sending our members down a track of reliance on fossil fuels that are price volatile.

  • Tom Delong [After long debate]: Roll call vote on amendment to make changes to position.

  • No

    • Sheen

    • Solie

    • Zappone

    • Bunch

  • Yes

    • Messier

    • Delong

    • Newman

  • Motion fails 3-4.

  • Krista Zappone: Proposes new amendment to remove third bullet point, but keep position as is.

  • Rick Solie: Cooperation with other Railbelt coops is in the strategic plan, so doesn’t think a mandate is necessary. He is willing to support new amendment.

  • Tom Delong was against amendment.

  • Dave Messier was against amendment.

  • No vote taken on amendment.

 

7.4 President & CEO Employment Contract Extend CEO contract

    • Passed

 

7.5 2024 Bad Debt Write-Off (Kathryne Strle)

 

7.6 Budget Adjustment: Solar Farm Foundation Repair (Travis Million) 

  • Chris Bunch: There are lots of other engineering options.

  • Dave Messier: Opposes the motion, wants to send it back to staff to look at other options, can’t imagine every rock has been turned over. Hopes we can be creative and find something that doesn’t cost so much.

  • Unanimous vote to reject staff proposal and ask staff to reexamine issue,

 

7.7 Modifications to PACE/New ERA Grant Applications

  • Dave Messier: Opens door on changing some of the stipulations, but isn’t the extent of their discussions with USDA.

  • Gary Newman: Can we still ask for debt relief for Healy 2, but not complete the shut down?

    • Most likely not.

  • Zappone: 500 characters felt a little tight. Thanks Naomi Knight for her work.

  • Unanimous vote to approve changes.

 

Management Reports  

Progress Reports

Chief Finance Officer – Financial Reports/Form 7 (Villalon)

  • No updates

 

Chief Administrative Officer (Dillard)  

 

Chief Operating Officer (Nicholson)  

 

Chief Power Supply Officer (Knight)  

  • Healy 2 is back up and running

  • Gary Newman: What happened/why was the bag house repair needed?

    • This was a scheduled outage, so the plant had to run at reduced capacity to replace bags.

    • Bags were beyond their expected life.

 

Chief Strategic Implementation Officer (Bishop) 

  • GVEA expects to receive approx $20 million from AEA grant.

    • Will be used for structural changes to the AK Intertie.

      • $9 million for upgrades to the 69 kv transmission system.

  • Currently looking into a BESS placement.

 

President & CEO (Million)

  • Had good meeting with FCAC [Fairbanks Climate Action Coalition].

  • Million and Bradish had a conversation with Rep. Ky Holland and Senator Bill Wielechowski to discuss the RPS.

 

Review of Ongoing Required Reports - Informational: (bold if report will be reviewed)  

Alaska Power Association (APA) Report  

ARECA Education Foundation Report  

ARECA Insurance Exchange Report  

Calendar/Strategic Directives

Good¢ents Report 

MAC Report (Bunch)

 

Good of the Order/Director Comments 

·      Chirs Bunch: Thanks members for staying and listening and caring.

·      Dave Messier: ditto

·      Fred Sheen: ditto

·      Rick Solie: Appreciates board and the debate and use of parliamentary rules. Was in Anchorage for a business breakfast, where Fairbanks received many shoutouts.

·      Krista Zappone: Thanks for meeting. Wants to “put on the record” that she loves the RPS and thinks it's important to make the utilities work together.

·      Gary Newman: Ditto to what everyone else said. Also highlighted that today is Earth Day. He was in Berkeley in 1970 for the first Earth Day. “My generation was supposed to fix things.” Hopes that GVEA can get it together enough to benefit future generations.

·      Tom Delong: Used to being in the minority. Hopes that we can achieve what the RPS mandates voluntarily. Knows that the level of stress and effort is high at the moment – hang in there and keep up the good work.

 

Brian Kassof
Next

GVEA Board meeting, March 25, 2025