State’s Utility Regulators Side with GVEA on Wind-Farm Operator’s Bid to Sell More Power

Feb 22, 2018

The Regulatory Commission of Alaska has sided with Golden Valley Electric Association in its case against a wind-power developer’s proposal to sell up to 13.5 megawatts of electricity to the co-op.

In an order filed Feb. 6, the RCA rejected the proposal by Delta Wind Farm owner Mike Craft, who asked the commissioners to require Golden Valley to buy the 13.5 megawatts that Craft proposed to generate with a wind farm he proposed to build next to his 2-megawatt facility near Delta Junction.

Two 900-kilowatt wind turbines generate most of Alaska Environmental Power's 2-megawatt capacity. The AEP facility is located just east of Delta Junction.
Credit KUAC file photo

According to a news release Golden Valley issued Tuesday, the commissioners agreed with the co-op’s argument that integrating the additional electricity from the Delta Wind Farm would increase ratepayers’ monthly bills.

GVEA President and CEO Cory Borgeson says that’s because the co-op would have to pay higher fuel and maintenance costs to regulate the intermittent flow of electricity from wind farms with other sources of power.

The commissioners said Craft would have to pay Golden Valley 16 cents per kilowatt-hour to compensate for the cost of regulating the additional wind power.

Craft said Wednesday that has filed a request for reconsideration of the ruling with the RCA.

Meanwhile, a case filed in 2016 by Craft against Golden Valley over its refusal to buy more power from his 2-megawatt Alaska Environmental Power wind farm remains pending in Anchorage Superior Court. Oral arguments in the case are scheduled for May 14th.