GVEA Board meeting, March 25, 2025

Written By Brian Kassof

Submitted by Eleanor Gagnon

Attendees

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

 

Education/MAC Report/Member Comments 

4.1 Legislative Update (Yuri Morgan - lobbyist) 

  • Based in Juneau

  • Working to put together supplemental budget and next year's budget

  • Deficit is approaching 700 million

  • This and next week will be consumed by house budget discussions

  • New bill introduced: RPS [Renewable Portfolio Standard]

    • Introduced by Ky Holland (Chair of House Energy Committee)

    • Mandates utilities get 40% of power from renewable sources by 2030, 55% by 2035

    • Definition of renewables excludes hydrocarbons and nuclear (clean coal???)

    • Has penalty side (fines for noncompliance)—he thinks they are relatively extreme

  • RPS is most material bill that's been introduced for energy world in past week or so

  • Expects bill to be scheduled for a hearing

Discussion

  • Dave Messier: update on additional funding for GRIP funds?

    • Morgan

      • Doesn’t expect any large sum to be added

      • Talk about general obligation bonding to complete match (on state side?)

  • Dave Messier: Maybe this is gaining traction?

  • Rick Solie: back to RPS…didn’t see senate companion…will there be one? Looks like there will be two more committees of referral

    • Morgan

      • Doesn’t know yet, knows House Energy committee doesn't have a lot to consider at the moment, so this is a nice project for them

      • But at the moment no senate companion

      • Wouldn’t expect Senate Labor & Commerce to introduce one

  • Tom DeLong: regarding the match that's for the DOE award of $206 million (GRIP funding)

    • Requirement was for state to match that

    • AEA has secured 2nd years match

    • Who is doing the math on us having met the match –state or DOE?

    • YURI: state reference, unsure whether DOE agrees

  • Gary Newman: not the state that has to do the matching, it just has to be something other than federal funding

 

4.2 MAC Report (Gary Pedretty) 

  • Staff report – Naomi Knight

    • On the strategic plan

    • Got good insight but didn’t share

    • Impressed by input staff puts into presentations

  • Discussion on election and how there was only one person selected (North pole)

    • Asked staff for clarification

4.3 Member Comments

  • Mary Burtness

    • Worried about transparency…spoken in the past

    • Executive session (47-50% of meetings)

      • Decisions are made in executive session, decisions in public meetings seem performative

    • On-bill financing–how do you intend to measure success and what is your advertising plan? Same on community solar

    • Possible flaw in amendment (nominating committee becomes the body that decides who becomes a director)

 

  • Patrice Lee

    • Supports Mary

    • Need to be a change in order of meetings to reflect what she said re: executive session

    • Second nominating committee points by Mary

    • Plan for Healy 2?

      • Why haven’t we spoken with AIDEA?

      • How much money have ratepayers paid to AIDEA?

    • Rate payers need relief and can we get it from AIDEA?

    • Seems like we are in a bad place re: the Federal funding

      • Why aren’t we investing in Amaresco [Delta Junction wind project]?

    • Need interior AK energy policy (specific to us)

    • We are never going to get the entire Railbelt to prioritize us/interior

    • 2 old coal plants (UAF- Aurora and Ft Wainwright)

    • Get Delta Wind online

 

  • Joshua Knicely

    • Cool to see the legislative report from Yuri Morgan

    • Notes that fines related to RPS are not taken out of our pocket; the money is just earmarked for investment in appropriate technologies

    • Asks that the board rescind its support for Terra energy plant [coal project in MatSu]

      • Wind would be faster to get online

 

  • Mike Craft

    • Impactful personal story

    • Board is responsible for figuring out how to make us prosper here, not just survive

    • If we don’t start focusing on our own energy security we will fail

    • What do we need to do to make sure the lights stay on?

 

  • Pamela Thorpe 

    • Owns real estate

    • Where are you with the comprehensive plant?

    • What is the plan for fixing rates and capacity?

    • How much does Kinross pay per kilowatt?

    • Do power needs increase after opening of Mahn Choh [mine]?

    • Get Delta Wind online

 

  • Les Dalton

    • Retired General contractor

    • Everyone has already mentioned what he wanted to say

    • Bidwell solar panels:

      • Needed to be cleaned, thanks the person who did it

      • We learn by example…where are the solar panels on GVEA buildings?

      • Cost for putting up solar panels is astronomical

      • Would like to see the home sense program restarted

      • Working with Interior weatherization…they call him when they need info on solar and heat pumps

    • People can’t afford energy saving measures

      • We need someone to help here.

 

  • Mike Musick

    • Supports everything said so far

    • Thank Tom DeLong for presentation to UAF energy class

    • Mentioned a letter to the editor

    • Appreciates the on-bill financing program…hopes people take advantage

    • Disappointed by the board's lack of urgency when it comes to the Cook Inlet gas crisis

    • We need new generation –now 

    • Existing generation is badly designed

    • We need to take care of us

    • Get Delta Wind online

 

  • Richard ?

    • Former member of the MAC

    • Been speaking to members about load shedding

    • Where are we going to get money?

    • What about tapping capital credits? To cover gaps and start projects now

    • Renewables are subject to availability…coal can be fired up and run 100% ditto for nuclear, ditto for powerline to Bradley Lake 

    • Which would you prefer--load shedding or pay current amount for bill to go down in 20 years? People prefer the latter

 

Consent Agenda 

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

6.2 Approval of the February 26 and 27, 2025 Special Board Meeting Minutes

6.3 Review of the Affirmative Action Report 

 

New Business 

7.1 Resolution No. 102-25: Approving the Simplified Rate Filing (SRF)

  • Reviewed finances and recommended the board approve resolution which will set in motion the rate filing.

  • Discuss SRF

    • A lot of detail-oriented conversation about numbers

    • Inflation is creating fiscal stress leading to increased rates for the utilities

    • Not looking forward to passing on to members

    • Feel they need to in order to provide reliable power

    • Transformers and other material costs have gone up dramatically

    • Staff need to be paid more

    • Do not take this decision lightly

    • Discussed this in executive session but not as a measure to hide information from member-owners (MOs)

  • Gary Newman:

    • The resolution also addresses required levels of operation margin ratios

    • Was possible they wouldn’t meet those ratios

    • Need to stay whole with lenders to avoid penalties

    • SRF limits them to 8% over a year

    • Will be filing a Rate case at the end of the year—then rates will be frozen for about a year and half

    • This will be the last SRF filing for the next two years

  • Rick Solie:

    • MOs are feeling the increase

    • 5% isn’t out of line

    • Wages and benefits are costs

    • One of their strategic goals is to be an employer of choice…meaning they need to give good salaries and benefits

    • Need money to retain good employees in order to achieve strategic generation plan goals

    • Have been trying to narrow margin ratios due to covid…now feeling fiscal stress of those narrow margins

    • All of this is function of our supply cost challenges

    • “If we can lower our cost of supply whether its renewables, natural gas or better running plants” I’ll support that

  • Tom DeLong:

    • SRF addresses our utility rate (half of MOs bill); other half is purchased fuel

    • RCA allows utilities to raise their rates under SRF twice a year

    • 5% increase to only one half of MOs’ bill

  • Dave Messier:

    • Some of our infrastructure dates to the 70s

    • Thanks staff for going after federal funds to help disperse costs

    • Co-op takes member dollars and uses them to maintain our systems

    • Staff has been working diligently on getting and using Federal funding

  • Krista Zappone

    • Infrastructure is old

    • New projects demand newer infrastructure

    • Unfortunate circumstance that we find ourselves in

    • We need new transmission, we need new breakers

    • Bottom line– we need more upgrades

  • Motion is approved – unanimously

 

7.2 Strategic Plan

  • Motion to change Strategic Plan [not Strategic Generation Plan]

    • Worked on it over two days as staff and directors in February

  • Chris Bunch:

    • Two days were spent to rework

    • Working document

    • Has time-frame attached

  • Tom DeLong: Would like to postpone--board doesn’t feel like it had enough time to comment on the plan. Set deadline for comments and consider in April

  • Presentation on changes by Travis Million

    • No change to vision

    • Potential change to mission statement will be discussed in April meeting

    • Presentation can be found here

    • Some highlights

      • Goal 3

        • Contains reference to Strategic generation plan

        • Incorporate demand side management and distributed generation plans

  • Each director will be able to make comments prior to April board meeting

  • Motion to postpone by Gary Newman--passes

 

7.3 Healy Collective Bargaining Agreement 

  • Motion to approve

  • Gary Newman:

    • Drawn out issue

    • Both parties came to an agreement that will work out well

    • Some increases in cost to us, but in line with industry standards

    • Want to make sure we have enough employees in Healy

  • Chris Bunch:

    • Deals with bargains and agreements often in personal life

    • Good contract…there are things we could work on to make it better “for both parties”

  • Rick Solie:

    • Room for improvement

    • Made progress with a better working agreement

7.4 Budget Adjustment: Healy Staffing 

  • Lots of key staff members have left meaning the plant is not able to be run effectively

  • Finance committee recommends an increase in the budget

  • Krista Zappone:

    • Highlight discussion about how contractor isn’t a substitute for GVEA employees but allows current employees to complete their training

  • Gary Newman:

    • Would like to support

    • Has not seen agreement and would like to see contractor agreement

    • Without being able to see it, will not vote in favor, but would be inclined to postpone until directors can see the contract

  • Dave Messier:

    • This is an increase to an existing contract to receive Blue Water’s (the contractor) assistance

      • Tom Delong: would be an amendment to an existing contract

  • Chris Bunch:

    • Will vote in favor

    • We’ve used the contractor before and they did good work

  • Rick Solie:

    • Feels they got their questions answered already (in executive session) about cost considerations and other things

  • Dave Messier:

    • Will be voting in favor

    • Staff has been trying to fill the positions

    • This is a stepping stone to getting the positions filled

    • This would be a temporary stop-gap measure

    • Meant to augment current employees while they get trained up

  • Gary Newman:

    • Opposed to process that led us to this point

    • Nature of contract is amorphous and would like to see it

    • The cost is 1.3 million

  • Motion is passed, with Newman voting against.

 

7.5 Review the Safety Manager’s February 2025 Report

  • There were two lost time injuries in February (minor injuries due to ice)

 

7.6 Update to the SNAP Program

  • Want to look into and possibly update the program

  • Presentation/info given by Daniel Heckman

    • Going to maintain aspects of the program to stay in compliance with net metering requirements

    • Going to remove pieces that are taking up too much staff time

    • Use of SNAP funds that have already been collected

      • Have clear language on what they can do here

    • Argument is that SNAP takes up too much staff time and provides too little benefit to MOs

    • SNAP funds will be disbursed out until the fund is depleted

  • Tom DeLong

    • Understands the move to one meter vs. two

    • Doesn’t understand what would happen to voluntary fund

      • Daniel Heckman:

        • If we didn’t touch them at all, and say we weren’t collecting more...they can continue to disperse until funds are deplete

        • Not on good regulatory ground if we treat different groups differently—we can kill program or continue as is, but we can’t only give funds to SNAP people [and not SNAP+].

  • Rick Solie:

    • SNAP is being replaced by net metering

    • Is management recommending that they eliminate the SNAP program? What would that look like?

      • Daniel Heckman: RCA requires we have a net metering program, so not asking that they discontinue SNAP, memo is speaking to removing the second meter. SNAP has a large administrative burden, so they want to remove the extra benefits but continue the program. Traditional SNAP program will be most effective.

      • Cannot eliminate SNAP +, but can eliminate SNAP

    • Memo wants to amend SNAP?

      • Daniel Heckman: SNAP will be discontinued because utilities don’t do that. Most have SNAP +, not traditional SNAP

      • Will review internal and limit review of installations to those that have a more direct impact on the stuff mentioned in the memo and what they need to review to remain compliant with the law

    • Recommends that they discontinue the member dividends?

  • Dave Messier:

    • Supportive

    • GVEA didn’t have other options when SNAP was created, but is obsolete now that we have SNAP + and a community solar program.

  • Approved update to program

 

7.7 2025 District 5 Director Election

  • Due to new bylaws saying GVEA can forgo elections when a candidate runs unopposed, they will appoint a new D5 director: Bradley Swoope.

  • Tom DeLong:

    • They did this before (5th time)

    • Amended bylaws to accommodate this situation

  • Gary Newman:

    • Seems to be hard to attract candidates

    • Do want to honor democratic process

  • Krista Zappone:

    • Highlight that nominating committees have had success in certain areas

    • Believes staff does a good job ensuring that nominating committees don’t have more power than they should

  • Rick Solie:

    • Discussion was had in MAC meeting as well

    • Had a lot of discussion about what happens when there is only one candidate

    • Decided the Bylaw change was in the best interest of the members

    • Reminds people that there is always the option to run via petition

    • In this case there were originally two candidates, but one withdrew

    • Board struggles to get people on the nominating committee

    • The take away is to get more full nominating committees?

  • Tom DeLong:

    • Up for election 7 times

    • Still had to get 50 signatures [before bylaw change, nom. comm. could not advance single candidate—unopposed candidates had to get on ballot via petition process].

    • bylaws were changed to remove that requirement.

  • Dave Messier:

    • Nominating committee should have more time, so that less people run unopposed

    • This bylaws’ change saves members $25,000

  • Approves motion to forgo election process and appoint Swoope [effective June 24]—approved unanimously

 

Management Reports 

Chief Finance Officer – Financial Reports/RUS Form 7 (Katherine Strle)

  • Gary Newman:

    • We know O-tier was lower than it should be.

    • Capital credits for next year will be applied to make up difference

  • Dave Messier:

    • We just got through investment on Healy 1…when does the depreciation hit our rates?

      • Katherine Strle: Taken into account with the recent SR, so will be felt in June

Chief Administrative Officer (Abby Dillard) 

  • Gary Newman:

    • Where are we on implementing texting?

      • Dillard: working with NISC, need to figure out a way to classify what is a cellphone vs. telephone…do require an opt-in 

    • Need to consider a messaging push to make sure members can utilize 

  • Abby Dillard

    • On-bill financing: will use participation levels and surveys as measurement of success, will analyze energy savings of installments

    • RCA wants to ensure that other members won’t be harmed by project

    • Evaluating whether they want to use a contractor or internal staff for a home-sense program

  • Dave Messier:

    • Where does the funding for on-bill come from?

      • Abby Dillard: non-operating revenues, no impact on rates

    • Moving forward with NISC to figure out community solar…what is the timeline?

  • Tom DeLong:

    • If pilot program succeeds, GVEA can borrow money from federal program at 0% to fund bigger program

       

Chief Operating Officer (Minnema/Nicholson)

Chief Power Supply Officer (Forrest) 

Chief Strategic Implementation Officer (Bishop) 

President & CEO (Million)

  • Travis Million:

    • Held all 5 power-up meetings with MOs

      • Very well attended

      • Found that they needed a bigger facility in FBX

      • Need a quieter location in North Pole

      • Thanks Krista Zappone for joining…events are open for board and employees

    • Having a Facebook Live to wrap up quarter’s community outreach

      • Usually more like an interview

Ongoing Board Reports: (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 (Solie) 

  • Many topics discussed were also spoken about tonight

  • Phil Wight convened them with higher attendance than they’ve had in a while

  • Discussed SNAP program…presented report given by management

  • Had robust overview of the strategic generation plan

    • Where we are

    • Implications of federal actions (freezing the grants)

    • Let the MAC know they continue to advance projects, but aren’t ready to approve anything

      • There are still parts needed for IPPS

    • Delta wind project is not “all ready and waiting”.

    • Hoping we’ll get something that will lower rates 

  • Discussed election process

    • MAC understood nomination committee process

    • Still consternation about lack of people on election ballot

 

Annual Meeting Committee Report (Solie)  

  • Rick Solie:

    • Dirs. Newman and Sheen are part of the committee.

    • Will meet May 1 at new site (8 Stars Event Center)

    • Will likely have a board meeting/practice run at 4pm

    • Different format this time…won’t be as scripted

    • Will retain most reports, but won’t be as drawn out as previous meetings

    • Inviting IBEW, IW, CCHRC to have booths

    • Will potentially have a Q&A with management

      • Don’t want to create an adversarial environment

    • Looking for confirmation of the Q&A session and strongly supports the idea

  • Tom Delong--Interested to see how a Q&A session might work.

 

Scholarship Committee Report

 

Good of the Order/Director Comments  

  • Tom DeLong: Thanks to Susan Redland for her time and commitment to GVEA and congrats on Retirement!

·       Chris Bunch: Thanks staff and Susan, main reason for staying on the board. Wants to add update on Shovel Creek and Amaresco [wind projects] to next meeting agenda

·       Dave Messier: Thanks staff for moving forward on on-bill financing, and thanks for your work as GVEA goes through an audit. Thanks Susan!

·       Fred Sheen: thanks Susan, sorry for missing Travis in Delta

·       Rick Solie: Happy to see the contract to build Black Rapids extension was finalized. Thanks Susan for your time!

·       Krista Zappone: Packet policy states run-off elections; please remove it since there are no longer run-off elections. Attended both Power-up convos near her (one in Nenana, and Healy). Was there to hear what was on MOs’ minds. Found it valuable. Points out that all executive session items are on a new business agenda [which is not quite accurate, see official meeting minutes to compare]

·       Gary Newman: Thanks Susan! Will be discussing RPS and a few election points with the administration committee

Brian Kassof
Next

GVEA Board meeting, January 28, 2025