Golden Valley CEO tells energy task force members that co-op didn’t need to use winter energy-shortfall plan
Golden Valley Electric Association is working on a rate case study to determine whether the co-op should increase the price of electricity it provides to its members.
Golden Valley President and CEO Travis Million says that the rate case and study are years overdue.
“A rate case is typically done on a very regular basis, every five to seven years,” he said. “I think this will be the eighth or ninth year since our last rate case.”
Million told local members of an Alaska energy task force in a virtual meeting Tuesday that the study should’ve been conducted in 2020 or 2021. But that’s when the world was dealing with COVID, so the study would’ve been skewed because of changes in the public’s usual routines like working from home and kids attending classes online.
“So, loads were completely different,” he said, referring to the electrical load. “Usage was different. And so it really wasn't a good representation of what we would call a normal operating year. So that's why it got pushed out to this year. We’re going through that right now.”
The rate case examines factors like Golden Valley’s infrastructure investments, operational costs, regulatory compliance and revenue generated by its electricity rates. Million said co-op officials hope to complete the study later this year and then present its findings to the membership.
“In the later summer, we'll be having public meetings, kind of reviewing the results of these studies and this rate case,” he said.
Golden Valley will then submit a proposed rate increase to the Regulatory Commission of Alaska. He says the commission may take up to a year to issue a ruling on the case.
No need for 'load-shedding' plan this year
Also Tuesday, Million confirmed that GVEA did not have to resort to a so-called"load-shedding" plan that could’ve subjected its 36,000 members to periodic, intermittent rolling blackouts. Co-op officials developed the plan to respond to a worst-case scenario in which the utility might not be able to generate enough electricity for its customers in the middle of winter.
“As of right now, we're kind of through that danger zone,” he said.
Million calls it the danger zone because Golden Valley wasn’t be able to get power generated by the Bradley Lake Hydro Project during January, February and March while work was being done on a transmission line that connects the hydro facility to the Railbelt.
“The transmission line coming off the Kenai Peninsula that brings the Bradley Lake power up into Anchorage and then further up into Fairbanks was down for required maintenance that had to be done in the wintertime,” he said.
GVEA officials say they’ll continue work on the project during the same timeframe for the next several years, until it’s completed.
The work has to be done in midwinter because the transmission line passes through swampy areas that must be frozen in order for equipment to operate. It’s also located along a federally protected migratory bird route, so the work can’t be done when migration is under way.
But demand for electricity peaks during those cold winter months. And surplus natural gas-generated electricity from Southcentral utilities is no longer available, because of the region’s dwindling gas reserves. So Million says utility executives are looking for alternative solutions.
“They're looking at some other options on how to try to take that line down outside of that highest peak load time, both for Anchorage and Fairbanks,” he said.
If one of Golden Valley’s power plants were to break down during those three months, the co-op’s plan calls for intermittently shutting off electricity around its service area until full power is restored. Million says he hopes other utilities will agree to help prevent that from happening.
John Davies was one of the online participants in the virtual meeting. He’s a former UAF professor and university regent, And he told Davies that he appreciates the work Golden Valley officials have been doing to plan for that worst-case scenario.
“I think it was good that you did that,” Davies said. “But I think it reminds us that we are really teetering on the edge of not having enough energy. So I don’t think the crisis is over.”
Million concurred. “I would agree with you, hundred percent, John.”
