Current News
CVEA In the News......
Check out all the most up to date CVEA information in your monthly copy of Ruralite Magazine. As a CVEA member, you will receive a new issue in your mailbox each month. If you would rather not receive Ruralite or if there are topics you would like to see covered in the magazine, please contact Sharon Crisp at 822-3211 or 835-4301 or crisp@cvea.org
August 2008
CVEA Board Approves Residential Fuel Cost Assistance Credit for Residential Bills
The CVEA Board of Directors unanimously approved the Residential Fuel Cost Assistance Credit (RFCAC) during their regular Board meeting on Thursday, August 21, 2008. The RFCAC will be funded using cogen heat revenue and will reduce residential members’ power bills during the winter months. Residential members’ will see the benefit of approximately 10.57¢ per kWh credit on their monthly bills November 2008 through May 2009. The exact amount will be announced in November.
The idea for the RFCAC came from CVEA CEO, Robert Wilkinson, this past Spring after hearing a story of a member needing to choose between paying their CVEA bill or their fuel bill. CVEA thought it was important to find a mechanism to help the residential member who can’t control the high cost of energy or pass the costs onto anyone else.
The impact to residential members will be substantial. Members having an average monthly usage of 500 kWh will see an estimated $52.85 reduction on their monthly power bill. This will add up to over $300 through the course of the winter.
The CVEA Board believes the RFCAC is a positive attempt to help the membership and the community deal with high energy costs. It will help residential members through the winter when fuel costs passed on to the members are at their highest.
If you have any questions regarding this or any CVEA issue, please contact Sharon Crisp at 835-7005, 822-5506 or email crisp@cvea.org.
August 2008
CVEA Updates FPPC & Offers Residential Fuel Cost Assistance Credit This Winter
In an effort to better serve CVEA members, the Cooperative is changing the way they bill members for the Fuel and Purchased Power Cost (FPPC). The FPPC is the cost of fuel used and power purchased from the Four Dam Pool Power Agency to generate a kWh of electrical energy. The FPPC is not marked up. It is passed on directly to consumers as a line item on the monthly bill. Recently, CVEA has attempted to levelize the FPPC throughout the year in an effort to reduce seasonal cost impacts during the winter months. With escalating fuel prices, changes in generation, and declining sales, CVEA realizes that the current method isn’t working.
The CVEA Board of Directors has approved a plan to bill the FPPC monthly, using a cost user/cost payer approach. Under this plan, CVEA will calculate the FPPC each month using the most current cost and generation information. For members, this will mean low monthly FPPC rates during the summer months when we are operating close to 100% hydro power and higher FPPC rates in winter when we are using mostly fossil fuel for generation. CVEA is strongly encouraging members to plan accordingly.
The monthly rate will be established by the 10th of each month and will be accessible to members on www.cvea.org or by calling either CVEA office.
The new FPPC billing plan took effect on the July 2008 bill. Members saw the FPPC drop to 7.25¢ per kWh. To get advanced notice of the August rate, check out cvea.org or give one of the offices a call after August 10, 2008.
CVEA has a commitment to providing power to members at the lowest possible cost. In honoring this commitment, CVEA is doing everything they can to control high costs. In the fall of 2008, CVEA plans to roll out a Residential Fuel Cost Assistance Credit (RFCAC) to help residential consumers deal with the high cost of power when we are generating with fossil fuel. The credit will use cogen heat revenue to reduce residential consumers’ power bills during the winter months. Residential members will see the benefit of an estimated 10.57¢ per kWh credit on their monthly bills November 2008 through May 2009.
Public meetings have been scheduled to receive member input on these changes. The hearings are scheduled as follows:
Valdez Valdez Civic Center Tuesday, August 19, 2008 7:00 pm
Copper Basin American Legion Hall Wednesday, August 20, 2008 7:00 pm
If you have any questions regarding this or any CVEA issue, please contact Sharon Crisp at 835-7005, 822-5506 or email crisp@cvea.org.
July 2008
Notice of CVEA Tariff Addition
July 21, 2008
Copper Valley Electric Association’s Board of Directors gives notice to its members of intent to add a new tariff sheet for a residential fuel cost assistance credit (RFCAC). The purpose of the credit is to help offset fuel costs for residential members in the winter months when CVEA is generating with fossil fuel.
Discussion
The RFCAC will be available to all CVEA residential consumers billed under the CB1 and V1 residential service rate schedules and will be applied to residential bills in the months of November through May. The RFCAC will be calculated by dividing the total credit amount in dollars by the total residential kWh sales for the winter season. The total credit amount will be determined by the CVEA Board of Directors annually by November 1. The credit for this upcoming winter is estimated to be 10.57¢ per kWh.
Detailed information on this filing may be obtained from Jaime Matthews, Manager of Administration & Finance, CVEA, PO Box 45, Glennallen, AK 99588, phone: (907) 822-3211, (907) 835-4301 or by email at Matthews@cvea.org .
Any interested CVEA member may provide comments on the proposed tariff sheet to the Board of Directors either by hard copy or email. Comments must be received by 5pm Friday, August 22, 2008, in the CVEA Glennallen office. Public hearings have been scheduled to receive member input on the proposed changes. The hearings are scheduled as follows:
Tuesday, August 19, 2008 7pm Valdez Civic Center
Wednesday, August 20, 2008 7pm American Legion
July 2008
FPPC Lowered on July Bill
Please note that the FPPC rate has been lowered to 7.25 cents per kWh on your July bill. This rate is based on actual costs for June. The new rate for August will be available August 10. Call or visit the website for updates.
April 2008
2008 Copper Valley Electric Annual Meeting Highlights
CVEA experienced near record turnouts, with over 400 people attending the 2008 Annual Meeting of members held in Valdez on April 15 and Glennallen on April 17.
Members were given up-to-date information on issues that are affecting their Cooperative. CEO Robert Wilkinson discussed the Allison Lake hydroelectric project outlining the next steps, the timeline for completion, and the benefits it promises to bring CVEA members.
The message also outlined current Legislative issues, including HB152, the Renewable Energy Bill, and other issues of interest that are affecting the electric industry.
Also discussed was the ongoing rate study. As the work on the rate study progresses, the Board’s goals are to ensure that the Cooperative maintains sound financial health while minimizing the impact to customers. Members heard a new plan for billing the Fuel and Purchased Power Costs (FPPC) as they are incurred and a program to help residential customers deal with the high cost of power.
The Residential Fuel Credit, proposed to begin in the fall of 2008, will use cogen heat revenue to credit against residential consumers’ power bills during the winter. The amount is unknown as of yet, but is conservatively estimated to be 5-6 cents per kWh.
In addition to reports, CVEA members were encouraged to ask questions about issues that were important to them and Mr. Wilkinson was on hand to respond. CVEA members in both districts had lengthy question and answer sessions.
Other highlights included the announcement of the Board of Director election results, the introduction
of the 2008 scholarship award recipients, and the launch of the newly updated cvea.org.
Every person in attendance was given a goody bag containing energy efficient gifts and information intended to encourage members to take a hard look at conservation. These items helped carry an
overriding message of the meeting, that one way members can control their power costs is to control their energy usage.
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| Copper River Beater - Elbert Thompson |
Valdez Beater - Marilyn Bell |
Members also received a ticket making them eligible for door prizes, one of the favorite parts of the annual meeting each year. This year a whopping 67 prizes were given to members in each district.
Prizes included household items, gift certificates, electronics and $1,525 in cash! The grand prize was a CVEA beater! Marlynn Bell won the Ford F250 4X4 in the Valdez district, and Elbert Thompson won a Ford Explorer in the Copper Basin District.
CVEA would like to congratulate the winners and thank everyone who took the time to attend the meeting.
March 2008
Copper Valley Electric Files for Preliminary Permit on Allison Lake
On March 3, CVEA filed an application for a preliminary permit with the Federal Energy Regulatory Commission (FERC) to undertake an Allison Lake Hydroelectric Project. For CVEA the project holds the potential for increased hydro power generation which could displace over 20,000 MWH of fossil fuel generation and provide members of the Cooperative long-term, sustainable, environmentally clean energy.
Allison Lake has been studied as a potential source of hydroelectric power since the 1980s. The Allison Lake drainage, which sits west of the Solomon Gulch hydroelectric project, has long been seen as a promising location for hydro power development. Since 2004, soaring oil prices have dramatically raised the cost of electricity in Valdez and the Copper River Valley which has led CVEA to look at potential alternatives for power generation. In 2006, CVEA prepared a reconnaissance level study of power supply alternatives. This study, titled the Alternative Generation Review , evaluated the potential for geothermal, fuel cells, solar, wind, coal, and hydro via Allison or Silver Lake. The study recommended Allison Lake be further evaluated.
In 2007, CVEA completed a pre-feasibility study of Allison Lake alternatives. As part of the study, previous reports prepared by the Army Corps of Engineers and HDR Engineers were reviewed and a field reconnaissance site visit was conducted. The pre-feasibility study identifies three potential alternatives for using Allison Lake water to generate electricity. The alternatives include a tunnel option to divert Allison water to Solomon Gulch and two standalone options to move Allison water to a new power house near tidewater.
The conclusions of the study indicate that each of the three alternatives appears to be technically feasible and each appears to deliver power to CVEA at less than the current cost of fossil fuel generation, assuming the project is commercially financed. Grants or other attractive financing products would enhance the economics of each of the three alternatives. The recommendation of the study was to proceed with the initial steps toward licensing a hydropower project at Allison Lake.
CVEA's application to FERC for the preliminary permit immediately follows the expiration of the permit recently held by Green Power Development, which expired on February 29, 2008. The purpose of a preliminary permit is to secure and maintain priority to allow CVEA to study the power potential of Allison Lake and to develop information necessary to support a license application. The term of the requested permit is three years. During this time, CVEA will study the potential regulatory and environmental considerations associated with developments of this type.
Jim Manning, Board President, said the Board of Directors has been working toward this announcement since early 2007 and that the Board looks forward to discussing the potential Allison Lake has for the Cooperative's membership.
The application for the preliminary permit is available for inspection and reproduction during regular business hours at both CVEA offices and at the public libraries in Valdez and Glennallen.
For more information concerning this news release or other CVEA business, please contact Sharon Crisp, Director of Communications at 835-7005 or crisp@cvea.org.
November 2007
45¢ Per Gallon Increase in Diesel Fuel Costs Cause CVEA to Raise FPPC Again
Since the CVEA Board approved a 14.7¢ Fuel & Purchased Power Cost in October, the cost of diesel fuel purchased by CVEA has increased by 45¢ per gallon. This increase was considered by the Board to be significant and warranted another review of the Fuel & Purchased Power cost. As a result of the review, the Board determined that in order to recover fuel costs, it is necessary to increase the FPPC again in spite of their desire to hold the line until March of 2008.
CVEA members will see an increase in the FPPC on their November bill. The FPPC will increase to 17.12¢ per kWh.
CVEA has a commitment to providing power to members at the lowest possible cost. In honoring this commitment, CVEA is doing everything they can to control high costs. Since 2000, specific efforts to help offset the impact to the member include $2,500,000 in capital credit refunds and holding back $4,000,000 in fuel cost instead of increasing the FPPC even higher.
One thing CVEA cannot do, however, is control the high price of fuel. “The future forecast for the cost of a barrel of oil does not look good,” according to CVEA CEO Robert Wilkinson. “It is important for consumers to understand that as the price of oil continues to climb, the FPPC will continue to increase. It is important that our members are prepared for that reality.”
With rising fuel costs impacting everyone's budget, CVEA would like to encourage members to take another look at their electric needs this winter. There are many things consumers can do that have little effect on their day to day lives that will reduce the amount of kWhs used each month and lower electric bills. Visit energy tips for conservation tips.
For those with serious concerns regarding their ability to pay for their heating needs this winter, the State of Alaska, Division of Health and Social Services offers a heating assistance program to low income households. This program assists qualified individuals with home heating expenses. Eligibility is based on income. For more information, contact Alaska's Public Assistance office at 1-800-470-3058, visit the State of Alaska's website at http://www.hss.state.ak.us/dpa/programs/hap or stop by either CVEA office for an application.
CVEA recognizes that the cost of fuel is a problem and the problem is much bigger than CVEA. The cost of fuel is affecting every person in the CVEA service territory. If you are concerned about the cost of fuel, whether that relates to electricity, heating fuel, or gasoline, we encourage you to contact your elected representatives and let them know that we need their help.
For more information regarding this topic or any other CVEA issue, please contact Sharon Crisp at 835-7005, 822-3211, or email crisp@cvea.org.
October 2007
CVEA Board Authorizes Use of Margins to Help Keep Costs Down
CVEA members will see an increase in the Fuel and Purchased Power Cost (FPPC) on their October bill. The FPPC will increase to 14.72 ¢ per kWh.
The FPPC increase was approved after review by the Board of Directors at their regular board meeting on October 18, 2007. Many factors affected this decision including the increasing cost of fuel and less than anticipated water available at Solomon Gulch for power generation.
During the review, one scenario estimated the necessary FPPC rate to be as high as 18.58 ¢ per kWh. In an effort to keep costs down, the Board authorized an expenditure of $1.5 million in 2007 margins, mostly resulting from heat sales, to offset the higher costs and allow for a smaller increase. Unless CVEA sees a dramatic increase in fuel costs, the Board has approved the rate to remain at 14.72 ¢ through the March 2008 billing. This will help offset seasonal cost impacts to members through the winter months.
If you have questions or comments about this news release or other business of the cooperative please contact Sharon Crisp at (907) 835-7005 or by email at crisp@cvea.org.
August 2007
2007 APA Annual Meeting Comes to Valdez, September 12-14!
Valdez will be bursting with energy September 12-14 as approximately 150 delegates from the Alaska Power Association (APA) converge to discuss issues of importance to Alaska electric consumers.
The annual meeting of the trade association provides leaders from Alaska's electric cooperatives, investor-owned power companies and municipal utilities the opportunity to discuss issues faced by the industry, as well as recognize individuals whose accomplishments have benefited rural electrification efforts in Alaska. The theme for this year's event is ‘Energy Independence for Alaska' and the focus will be on statewide energy policy development.
In addition to attending meetings and general sessions, APA Annual Meeting attendees are able to spend time shopping, touring CVEA plant facilities and enjoying a reception and cruise aboard Stan Stephens Cruises. APA estimates its annual meeting will have a significant economic impact on the community. A conservative estimate that accounts for all costs including catering, hotel rooms, transportation, tours, entertainment, and miscellaneous expenses is roughly $85,000, according to APA.
Copper Valley Electric Association (CVEA) looks forward to hosting the 2007 APA Annual Meeting and is excited to have the opportunity to showcase CVEA and show the rest of the state of Alaska why Valdez is such a great place to live, work, and visit.
If you have any questions regarding the Alaska Power Association Annual Meeting, please contact Sharon Crisp at 835-4301 in Valdez or 822-3211 in the Copper Basin.
July 2007
FUEL & PURCHASED POWER COST (FPPC) UPDATE!!
In an effort to better match the seasonal cost impacts of power generation resources in summer and winter the CVEA Board of Directors adopted a strategy to calculate the Fuel and Purchased Power charge semi-annually. As communicated in the July issue of Ruralite, this strategy is proving more difficult in 2007.
Typically during the summer months, Solomon Gulch hydro generates nearly 100% of the power generation requirement. This summer, water availability for power generation has been greatly reduced. Currently, the Solomon Lake reservoir is only 56% of the seventeen year average of usable water. To account for low water levels and in an effort to increase the reservoir level before winter CVEA will turn on the cogeneration and diesel plants in early August.
This situation was reviewed by the Board of Directors at their regular monthly board meeting on July 19, 2007. In view of the lack of water for summer power generation the Board approved a modest decrease in the FPPC from 12.49¢ to 11.47¢ per kWh. This change is reflected on July bills and is expected to remain in effect through the September billing. The Board of Directors plans to re-visit this subject at the October board meeting.
If you have additional questions or comments please contact: Sharon Crisp at (907) 835-7005 or by email at crisp@cvea.org .
June 2007
CVEA, FERC and several community stakeholders review Solomon Gulch Emergency Action Plan!
On Thursday, June 14, 2007 representatives from the Four Dam Pool Power Association, (FDPPA) owner of the Solomon Gulch Hydro Facility, the Federal Energy Regulatory Commission (FERC), Coast Guard, National Weather Service, Department of Transportation, Valdez Fisheries Development Association, Alyeska Pipeline Service Company, Providence Valdez Medical Center, and the Valdez Police Department met with Copper Valley Electric Association (CVEA) to participate in an Emergency Action Plan (EAP) review for the Solomon Gulch Hydroelectric facility.
The exercise is required by FERC and the purpose is to review, test, and update the Emergency Action Plan that would be utilized for emergencies resulting in potentially hazardous situations or imminent failure of the Solomon Gulch Dam.
This year's review included discussion of the October 2006 flood that occurred in Valdez. After reviewing the flood event, it was determined that the EAP did not have a communication process in place for a non-failure emergency condition and that such an action plan needs to be developed. This would ensure all EAP participants are aware of severe conditions that need to be closely monitored. In addition to the discussion on flood and high water levels, participants engaged in a table top drill. During the drill, an emergency situation was presented to the group and alternatives for working through the situation were discussed.
According to Steve Bushong, CVEA Chief Operating Officer, “This year's exercise was a good one, very productive, and I was pleased to see all of the critical representatives at the table.” Having the right people at the table is very important as everyone would or could be involved if an emergency situation existed. In addition, input from participating representatives can be used to help the FDPPA make changes to the existing EAP.
The Solomon Gulch EAP is a critical component of CVEA's emergency response plan aimed at supporting our efforts to provide exceptional service through safe and reliable programs.
December 2006
$1.2 Million Capital Credit Retirement in December!
One of the benefits of belonging to a cooperative is receiving a portion of the margins in the form of capital credits. At the November Board meeting, the Copper Valley Electric Association Board of Directors voted to retire (refund) ten percent of the Association's patronage capital. The disbursement, which will be made by mid-December, will total $1.2 million. The last general retirement of capital credits was made by CVEA in December 2004.
Refunds will be calculated based on the percentage of patronage capital method. This method of calculation multiplies the percent of total cooperative patronage capital to be retired, in this case ten percent, by the individual member's capital credit balance regardless of when they joined CVEA. Checks and billing credits will be sent to over 2,300 current members.
Refunds under $50 for active members will be provided in the form of a credit on the electric bill. Refunds over $50 will be provided via check. CVEA intends to distribute checks by the second week of December. Refunds in the form of a billing credit will be reflected on the December monthly bill.
What are capital credits? CVEA is a nonprofit cooperative owned by our members. As provided in our Articles of Incorporation and Bylaws, electricity is provided at cost. In most businesses, receipts for goods or services in excess of operating costs are profits; while at a cooperative payments by members which exceed the cost of furnishing electric service are called margins. Margins are retained by the co-op as working capital in order to maintain and improve the electric system until the Board of Directors declares a refund.
How do they work? Margins are assigned annually to member accounts in proportion to the member's purchase of electric service during the preceding year. Member/owners are notified via mail each year when margins are assigned.
October 2006
Alternative Energy Study
As a follow up to the Strategic Issues Paper, CVEA retained the Financial Engineering Company to provide an independent review of what generation options might provide lower costs to CVEA members. The primary goal of the study was to determine whether the high fuel cost associated with the diesel plants could be displaced with another, less expensive, generation alternative. The resulting report entitled Alternative Generation Review evaluated a number of generation alternatives while taking into account the contractual and seasonal limitations of producing power on CVEA's system.
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