HomeMy WebLinkAboutAVEC Annual Report 1997T March 24, 1998
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dé Guest Speaker, Tim Towarak, Special a Assis
AGENDA
Twenty-Ninth AVEC Annual Meeting
WestCoast International Inn
3333 International Airport Road
Anchorage, Alaska
Open House and Pre-registration for Delegates, AVEC Headquarters, 4831 Eagle
Street/Transportation from WestCoast provided by AVEC/Please feel free to bring
Native Foods.
Lunch, WestCoast International Inn
Question and Answer Session, AVEC Board and Staff
Guest Speaker, Gail Phillips, Speaker of the House of Representatives
Guest Speaker, Jack Brown, Executive Director of People Count, Inc.
Group Photograph at 3:00 p.m.
Entertainment, WestCoast International Inn
Fiddle Music by The Athabascan Fiddlers Association
Delegates are invited to bring their own instruments
Delegate Registration and Continental Breakfast
Call To Order/Invocation/Roll Call/Credential Review/Ascertainment of
Quorum/Recognition of Guests/Appoint Sergeant-at-Arms
Adoption of Minutes of Previous Meeting
Presentation and Adoption of President’s and Annual Report
- bese Qceritoton .
Bylaw Amendment Adoptions!‘ . \ Neck gtin Aurel Rlaeka =
Award Recognitions On A bos oe R: b4en Taek te
2 Wr ave Break ep DEA has ee Cece! ‘Find
4. Str AuD? . 2. 0 NL Door Prizes Ashore Bi wiad ge
Hesse es gMdlO SUT gente AE ome lection of Directors GouTLnor, ¢ 4 foc 5: GORSF Lunch ‘ Bornncr wok stdbe tb toe
Guest Speaker, Frank A. Muncy, Director, Rural Business C ive es,
USDA Rural Development Wncbcegoorted lk Boke land! w
inne of the Govan
Unfinished/New Business/Adjourment >> ‘hes ot Tan, 17, 7, PCE
Plot of Fuel Efficiency
15
KWH SOLD PER GALLON (12 month average) 78 The highest cost component of AVEC Is expenditures for fuel oil. AVEC has initiated a comprehensive and continuing ettort to upgrade the over all fuel efficiencies of the diesel electric sets. This chart shows the steady progress achieved. 65
55 1975 1980 1985 1990 1995 1997
Total Kilowatt Hours of Electricity Generated
51,878,815
48,217,161
40,660,083
31,571,718
1980 21,011,905
1975 13,623,158
a MS, ALASKA
Ess RURAL ALASKA 1970 13,246,468
41, 1968 so
10,000,000 20,000,000 30,000,000 49,000,000 0,000,000 50,000,000
Average Revenue Per KWH by Consumer Class
Paul Flynn, Stebbins . 0.4300
| N N R N \ l
Frank Smart and Charles Walls, Chevak
Robert L. Beans Sr.
Chairman
Mt. Village
AVEE Board of Directors
e AMBLER
*NOORVIK
Walter G; Sampson
Vice-Chairman
Noorvik
Helena Jonés
Secretary
Ambler
MT. oe ANVIK o
TOKSOOK a
Member
UPPER & .» LOWER KALSKAG
Julia Walker
Treasurer
Anvik
George Morgan, Jr.
Member
Upper Kalskag
Alexie Jimmie ; i f OLD HARBOR »
Toksook Bay
Sven Haakanson
Member
Old Harbor
Charles Y. Walls
President & CEO
Annual Report 1997
Alaska Village Electric Cooperative, Inc.
Photos by AVEC staff
LETTER TO THE MEMBERSHIP
Annual Report for 1997
March 1, 1998
To our AVEC membership:
We are pleased to report to you that the Cooperative continues to perform satisfactorily.
L. Our margins of income over expense for 1997 was satisfactory. Our equity at December 31, 1997, is $26.5
million or 43% of our total assets of $61.2 million.
2 In 1997, we paid out $1,375,000 of our equity (capital credits) to our membership. Half of this pay out was
applied to the oldest capital credits (1982) and half to the most recent capital credits (1996). In prior years,
we had already paid out all of the capital credits earned before 1982. wo We increased our total utility plant investment by $3,111,284 to serve new homes and businesses as well as
to improve the reliability and quality of our electric service.
Fuel oil costs continue to rise, but are expected to escalate at a rate no greater than the prevailing rate of inflation.
When inflation is factored out, our fuel costs in 1997 were about the same in real dollars as our fuel costs in 1974.
However, over that same period of time we have doubled our fuel efficiency. The result has been that our overall
average revenue per kilowatthour sold has been relatively unchanged since 1978. What this means is that in real
dollars, after inflation is taken into account, the AVEC membership’s cost of electric service per kilowatthour used
has been reduced by over two-thirds since 1978.
However, electric energy remains unaffordable without state assistance for most rural Alaska communities where the
local cash economies are weak and poverty levels high. The Power Cost Equalization program pays about two-thirds
of the electric bill for our community facilities and about half the electric bill for our residential customers. The future
of the PCE program is AVEC’s major concern and top legislative priority. The Governor has formed a Blue Ribbon
Panel of Alaskan leaders - including our Chairman, Robert Beans - to review the structure, impact and funding of the
PCE program. We expect the future of PCE will be seriously addressed in the 1999 legislative session.
The villages in the AVEC system grew to 51 in 1997 with the addition of Nightmute. Nightmute, population of about
190 people, is a traditional native village located on Nelson Island, 18 miles upriver from Toksook Bay, and 100
miles west of Bethel. AVEC has also been reaching out to smaller electric utilities in the state to provide them with
administrative services. AVEC is now providing billing services for the Middle Kuskokwim Electric Cooperative, the
Kotzebue Electric Association and the Yakatut Power Company. We expect to be expanding these shared services to
develop economies of scale and reduce our costs. And, the members voted in 1997 to remove AVEC from economic
regulation by the Alaska Public Utilities Commission. AVEC was officially deregulated as of June 1997. These
strategic moves are intended to strengthen AVEC and best position the Cooperative to continue its thirty-year success
story of service to its membership,
Libs fs
Charles Y. Walls, President & CEO ‘Robert L. Beans, Chairman of the Board
CONSUMERS
As of December 31, 1997
The system overall showed a 3.5% increase in con-
sumers for the year. Thirty-one villages increased,
five remained the same and fourteen villages had
slight decreases. The total number of consumers is
a record high at 6,352.
Alakanuk
Ambler
Andreafsky
Anvik
Brevig Mission
Chevak
Eek
Elim
Emmonak
Gambell
Goodnews Bay
Grayling
Holy Cross
Hooper Bay
Huslia
Kalskag
Kaltag
Kasigluk
Kiana
Kivalina
Koyuk
Marshall
Mekoryuk
Minto
Mountain Village
New Stuyahok
Noatak
Noorvik
Nulato
Nunapitchuk
Old Harbor
Pilot Station
Pitkas Point
Quinhagak
Russian Mission
Saint Mary's
Saint Michael
Savoonga
Scammon Bay
Selawik
Shageluk
Shaktoolik
Shishmaref
Shungnak
Stebbins
Togiak
Toksook Bay
Tununak
Upper Kalskag
Wales hk
Interest 4.71%
Nichole, Cindi, Anna and Danielle, New Stuyahok
SOURCE OF ELECTRIC REVENUE
‘commercial 13% COtner Public Facilities 1T
Ret Street Lights. %
TOTAL COST OF ELECTRIC SERVICE BY ITEM Plant Operators, Parts, ‘System Maintenance, Etc. 28.27% Depreciation- Distribution 4.40%
Taxes 0.88% Fuel 28.72% Administration & ‘Consumer Distribution Operations General 10.38% ‘Accounts & Maintenance 3.73% 2.79%
Board/Dolegates 0.95%
BALANCE SHEET
ASSETS 12/31/97 12/31/96
TOTAL UTILITY PLANT $67,746,863 $64,635,578
ACCUM. PROVISION FOR DEPRECIATION (35,233,263) (32,094,249)
NET UTILITY PLANT 32,513,599 32,541,330
OTHER PROPERTY & INVESTMENTS, 2,709,321 2,197,942
CURRENT & ACCRUED ASSETS 25,823,869 26,018,147
DEFERRED DEBITS 137,680 4,373
TOTAL ASSETS $61,184,469 $60,761,792
LIABILITIES
EQUITIES $26,521,096 $26,100,195
LONG TERM DEBT 33,756,192 33,540,572
CURRENT & ACCURED LIABILITIES 720,652 958,731
DEFERRED CREDITS 186,530 162,293
TOTAL LIABILITIES $61,184,469 $60,761,792
EQUITIES AS PERCENT OF ASSETS 43.3% 43.0%
STATEMENT OF OPERATIONS
12/31/97 12/31/96
OPERATING REVENUE $18,624,130 $17,793,099
COST OF POWER $10,596,051 $9,642,602
OPERATION & MAINTENANCE EXPENSE 1,180,570 1,475,885 :
ADMINISTRATIVE & GENERAL EXPENSE 2,414,904 1,796,563 Tim Towark, Unalakeet, Elmer Sectot, Brevig Mission
es ; d frie DEPRECIATION & AMORTIZATION EXPENSE 3,191,179 3,067,757 ance
TAX EXPENSE 159,426 159,203
INTEREST EXPENSE 854,294 804,949
OTHER DEDUCTIONS 39,642 37,113
TOTAL COST OF ELECTRIC SERVICE $18,136,066 $16,985,066
OPERATING MARGIN $488,064 $808,033
INTERST INCOME 1,043,934 1,017,844
OTHER NON-OPERATING INCOME 198,580 185,532
TOTAL MARGIN (OR LOSS) $1,730,578 $2,011,409
Pe ___Average Revenue = 7 eg ee eZ
Adjustment for Inflation
Using Consumer Price Index
Simeon Agnus, Nightmute, Alexie Jimmie, Yoksook Bay
1873
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
A reception for Delegates was held on March 25, 1997 at the AVEC, Inc. headquarters building
then Delegates were transported to the West Coast International Inn for lunch and the Public
Meeting on the deregulation issue. Following the Public Meeting, Chairman beans requested a
roll call of Delegates then invited them to make comments or ask questions; narrative is attached.
The AVEC Board closed the day with individual statements at 4:48 p.m.
On Wednesday, March 26, 1997 at 10:20 a.m., following a photo session, Robert L. Beans,
Chairman of the Board of Directors, called to order the twenty-ninth AVEC Annual Meeting at
the West Coast International Inn, Anchorage, Alaska. The following Board members were
present:
Robert L. Beans, Sr., Chairman
Walter G. Sampson, Vice-Chairman
Helena R. Jones, Secretary
Julia Walker, Treasurer
Sven Haakanson, Member
Alexie Jimmie, Member
Chairman Beans requested Clare Charlie, Member Services Representative, to take a roll call of
Delegates in attendance. It was stated that 55 Delegates were present. Chairman Beans declared
there was a quorum.
Chairman Beans recognized and introduced guests present: Patrick Phillip, Alakanuk;
Ambrose Shorty, Emmonak; Eugene Monroe, Noatak; Ephrim Thompson, Pitkas Point;
Robert D. Roberts, Quinhagak; Ignatius Matthias, Nightmute; Eric Yould, ARECA;
Bruce Tiedeman, NREA; Alan Yost, RUS.
Chairman Beans appointed Walter Brown as Sergeant at Arms. An invocation was delivered by
John Kulowiyi, Sr.
Chairman Beans presented a plaque honoring the memory of Ivan Sipary, long-time AVEC board
member. Victor Nicholas accepted on behalf of the Nulato community.
Helena Jones, Board Secretary, read the Ascertainment of Quorum as follows:
“T certify that 55 duly elected delegates here in attendance constitute a quorum
under provisions of the Bylaws of the Alaska Village Electric Cooperative.”
Helena Jones, Board Secretary, read the following certifications regarding Notice of the Meeting
and Certification of Delegates into the record.
: 1874
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
DUE AND PROPER NOTICE OF ANNUAL MEETING
J, HELENA R. JONES, as the duly elected Secretary of Alaska Village Electric Cooperative,
Inc., do hereby certify:
Each qualified Delegate has been given due and proper notice of the Annual Cooperative
Meeting in accordance with the provisions of Article II, Section 4 of the Bylaws of the
Alaska Village Electric Cooperative, Inc., said notice having been deposited in the U.S.
Post Office by Certified Mail with Retum Receipt Requested.
SIGNED at Anchorage, Alaska on March 26, 1997
Helena R. Jones, Secretary
Alaska Village Electric Cooperative, Inc.
DELEGATE ELIGIBILITY
I, HELENA R. JONES, as the duly elected Secretary of Alaska Village Electric Cooperative,
Inc., do hereby certify:
That I have personally reviewed the meeting minutes of each AVEC Member Village and I
find that the Members named on the attached list meet all the requirements of Delegates to
the Annual Cooperative Meeting.
I FUTHER CERTIFY:
That each is eligible to participate in all phases of the meeting and that each will enjoy full
voting rights. .
97
Libera.
SIGNED at Anchorage, Alaska on March 26, 19!
Helena R. Jones, Secretary
Alaska Village Electric Cooperative, Inc.
Chairman Beans called for adoption of the Annual Meeting minutes of March 27, 1996.
Edgar Ningeulook of Shishmaref moved and Phyllis Clough of Old Harbor seconded to
adopt the 1996 Annual Meeting Minutes. In discussion the only comment came from
Jerri Moore of Elim; Elim membership issued a resolution supporting the inclusion of delegate
comments in the Annual Meeting minutes. Chairman Beans responded in agreement and asked
that comments be reflected in the minutes. After discussion, the question was given and the
motion carried unanimously.
President and CEO Charlie Walls gave an overview of the Annual Report. AVEC is financially
sound with equity as of December 31, 1996 at $26.1 million (43% of assets). Capital credit
distribution in 1996 totaled $1.2 million. Other topics presented were: power outage problems,
member attitude survey, deregulation, Bethel acquisition rejected, Nightmute acquisition
proposal, Middle Kuskokwim acquisition deferred, PCE program, alternative power generation,
1875
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
‘
changing economic conditions. Anthony Ulak of Scammon Bay moved and Ramona Sheldon
of Selawik seconded to adopt the President’s and Annual Meeting report. The question
was given and the motion carried unanimously.
Legal counsel Roger Kemppel presented and read Resolution AM97-1 proposing bylaws
amendments. He explained these changes were of a housekeeping nature to reflect the change in
name for the Rural Utilities Service.
Annual Meeting Resolution
RESOLUTION AM97-1
Bylaw Amendments .
WHEREAS the bylaws are reviewed annually to keep them current; and,
WHEREAS the Rural Electric Administration has officially changed its name to Rural
Utilities Services; and,
WHEREAS a contradiction exists because of a previous Bylaw Amendment to make
membership fees nonrefundable; and,
WHEREAS the Cooperative's General Counsel has recommended two bylaw revisions
be considered by the membership at the March 26, 1997 Annual Meeting as
attached:
THEREFORE BE IT RESOLVEDthat the attached bylaw amendments be proposed
to the AVEC delegates at the March 26, 1997 Annual Meeting to amend the
Cooperative's Bylaws to change
Proposition No. 1 - Change Rural Electrification Administration to
Rural Utilities Services
Proposition No. 2 - Delete Article 1, Section 7(g)
Anthony Ulak of Scammon Bay moved and Jerri Moore of Elim seconded to accept
Resolution AM97-1 and the motion carried unanimously.
Chairman Beans presented service recognition awards:
AVEC Employees Delegates
5 years Charles Y. Walls Syears — Phyllis Clough, Old harbor
10 years Alice Nelson Frank Flynn, Tununak
Lydia Mashbum, Selawik
Edgar Ningeulook, Shishmaref
Chairman Beans called for comments from the floor. There being none, he then asked
Georgia Shaw, Manager Member Services, to address the Delegates. Ms. Shaw reminded them
of the importance of having a village membership annual meeting soon after the AVEC Annual
Meeting. She intends to assemble a guide modeled after successful village meetings to aid others
1876
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
in organizing a meeting. She emphasized Delegates should not hesitate to call or write
headquarters with any questions and concerns.
The meeting broke for recess and lunch at 11:15 a.m.
The meeting resumed at 1:00 p.m. with a roll call of Delegates. All 55 Delegates were again
present.
Chairman Beans then turned control over to Walter Sampson, Chairman of the Nominating
Committee. Mr. Sampson called for a moment of silence to honor Ivan Sipary. Mr. Sampson
reported five names had been previously submitted to the nominating committee as candidates for
three board positions: Sven Haakanson, Old Harbor
Helena Jones, Ambler
Jerri Moore, Elim
George Morgan, Upper Kalskag
Victor Nicholas, Nulato
Nominations were asked for from the floor and none were made. Motion was made and
seconded to close nominations. Motion carried unanimously. A break was taken to check on
the eligibility of the candidates.
Chairman Beans announced the presence of additional guests: Jim Posey, APUC and
Patty Harper, ARECA.
Nominees gave brief statements to the Delegates then Mr. Sampson read the election instructions.
Debbie Bullock, Patricia Stephenson, Amy Pearce, Georgia Shaw, Ambrose Shorty, and
Eugene Monroe were asked to read and count the votes. Ballots were distributed at 1:30 p.m.
The first round voting results were:
Helena Jones 48
Sven Haakanson 35
George Morgan 36
Victor Nicholas 26
Jerri Moore 18
Mr. Sampson announced that Helena Jones, Sven Haakanson, and George Morgan were elected
to the Board by majority vote and subsequent rounds of voting were not needed. Mr. Sampson
returned control to Chairman Beans.
Drawing of door prizes was done by the Board of Directors with Amy Pearce reading the winning
names. JJ Graham, Alice Nelson, and Sev Swanson assisted in handing out the door prizes. See
attached list for door prize awards.
1877
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
While waiting for a telephone call from Tim Towarak of the Governor’s office, Chairman Beans
opened the meeting for comments from the floor.
Emma Anungazuk, Wales: Stated Wales needs a new power plant - building roof and floor
are in bad shape.
John Kulowiyi, Sr., Savoonga: Reported there was 100% attendance at village annual meeting.
Patrick Phillip, Alakanuk: Spoke in favor of business venture to generate income.
Bobby Wyagon, New Stuyahok: Stated village needs a fence because of hazard from deep water
pool near plant.
Caleb Wesley, Kivalina: Suggested drug and alcohol testing of power plant operators.
Walter Brown, Eek: Eek’s spill containment dikes need improvement.
Eugene Monroe, Noatak: Drug and alcohol abuse testing adopted by Noatak IRA
Council; need fence around power plant; deliver fuel during
warmer periods.
Tim Towarak’s call received at 2:30 p.m. His comments included recollections about the early
days of AVEC, compliments on AVEC’s successes over the years, expressed general support for
AVEC’s future, updated information on PCE, and status of State deregulation of rural community
services (water treatment, etc.). Encouraged any to call with questions and concerns (465-4028).
Walter Sampson asked which 4 or 5 communities will receive DCRA funding and Mr. Towarak
said he did not have that information handy but that Charlie Walls probably does.
There was no unfinished business and Chairman Beans proceeded to new business. He asked
President Walls to explain Resolution AM97-2. Mr. Walls stated the purpose of this Resolution is
to invest capital in an AVEC-owned subsidiary with the goal of generating profits to compensate
for reduction or even elimination of PCE. Investments require approval of Delegates and the
question here is the purchase of $500,000 of AVEC Energy Services, Inc. stock. Chairman Beans
read Resolution AM97-2 into the record.
Annual Meeting Resolution RESOLUTION AM97-2
Capitalization of AVEC Energy Services, Inc.
WHEREAS, Alaska Village Electric Cooperative, Inc. ("AVEC"), has developed
expertise in village electrification; and
WHEREAS it is in AVEC's members’ interest to market and sell this expertise to
others for profit; and
WHEREAS, AVEC has formed a corporation called "AVEC Energy Services, Inc.,"
Sor this purpose; and
WHEREAS, AVEC Energy Services, Inc. will be a wholly owned for-profit subsidiary
of AVEC.
NOW THEREFORE BE IT RESOLVEDthat Alaska Village Electric Cooperative,
Inc. is authorized to purchase Fifty (50) shares of stock in AVEC Energy
Services, Inc. at the value of Ten Thousand Dollars ($10,000) per share.
1878
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
Discussion: Jean Ferris, Stebbins, asked what products will this business sell; Mr. Walls answered
initially products will be consulting (energy generation and environmental compliance),
administration (such as agreement with MKEC) then on to eventually designing and installing a
complete power plant facility such as might be required at large mining operations. There were
comments about lack of information and Mr. Walls responded that details were not widely
disseminated beyond the Board in order to limit alerting possible competitors of AVEC’s
intentions. Mr. Walls assured George Morgan, Upper Kalskag, that the investment has been
anticipated and allowed for in the budget process and will come from general operating funds.
Herb Lockuk, Togiak, commented on the risks but that we have to take care of problems, PCE is
1/3 of AVEC revenue. Mr. Walls confirmed that as a business venture there are risks and
immediate results might not be positive but long-term expectations are that members will see real
benefits. Wanda Price, Old Harbor, acknowledged the Board for its efforts in considering the best
interests of the members. Pat Phillips, Alakanuk, cautioned that success from the business must
benefit all. Delegates took a short break to consider the Resolution and upon return Chairman
Beans had the lights turned off and asked the Delegates to imagine this was their village and they
could not afford to turn on lights. The expected life of PCE now is 2 more years.
Joseph Maillelle, Sr. of Grayling called for a motion to approve Resolution AM97-2 and
Walter Brown of Eek seconded. The motion carried with 42 in favor and 2 in opposition.
John Kulowiyi, Sr. gave the benediction. Phyllis Clough of Old Harbor motion to adjourn was
seconded and passed unanimously. Meeting adjourned at 3:30 p.m.
Robert L. Beans, Chairman Helena R. Jones, Secretary
1879
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
GENERAL QUESTION AND ANSWER SESSION WITH AVEC, INC. BOARD AND STAFF
Bobby Wyagon New Stuyahok
Q: Village needs fuel storage and fence and important to continue PCE.
A: $100,000 dedicated each year to install fencing in 2 to 3 villages. Just informed that House
Finance approved supplemental funding for PCE. Continue to lobby for long-term PCE.
Phyllis Clough Old Harbor
Q: Read letters from village children thanking AVEC for playground light.
A: Under APUC regulation, cannot donate over $100 without board approval, so must thank
Board for the light which cost about $1,500.
Michael Murran Hooper Bay
Q: Should watch wind generation project at Kotzebue.
A: Kotzebue and AVEC cooperating on testing wind generators with diesel turbines by sharing
personnel and grant funds.
Gerry Alexie Mt. Village
Q: Street light bulbs need replacing.
A: Village committee should submit a written request for special service, by policy AVEC visits
each village yearly for routine maintenance.
Ambrose Shorty Emmonak
Q: Problem attaining quorum at village meeting; need good communication with villages; address
fire hazards in homes.
Jean Ferris Stebbins
Q: Put statement in newsletter AVEC is not responsible for home wiring. How do we get street
lights and are they paid for by city?
A: City can donate existing lights to AVEC for maintenance and then pays monthly fee and pays
for new lights.
Bert Agwiak Mt. Village
Q: Improve dike and linings for tank storage?
A: Will review condition of tank farm in Mt. Village. Winter conditions sometimes cause
leveling problems. The SPCC plans and Coast Guard manuals are at each site. The spill
response manuals are in development
Al Washington St. Michael
Q: Condition of tank farm is deteriorating -- ground failing under tanks due to erosion and
permafrost; poles are leaning.
A: Sounds like an immediate response is called for to inspect and perform repairs, we don’t want
tanks collapsing.
1880
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
Isabel Nollner Huslia
Q: What will be disposition of dead lines underground?
A: Scheduled to be retired this summer.
Arthur Tocktoo Brevig Mission
Q: Need more (6 or 7) street lights, one near new houses close to creek. Put FAX machine in
plant?
A: Georgia Shaw will contact city about street lights and status of FAX.
Albert Beans Pilot Station
Q: Need to change generators. Search and Rescue thanks AVEC for trail marker stakes.
Phillip Demientieff Holy Cross
Q: What is the additional $5 charge on billings and explain in next Ruralite? When will capital
credits be paid?
A: Due to rate restructure, $5 is a customer service charge and we can put in Ruralite. Not sure
when credits will be paid, planning to send statement and payment together, so probably be
this fall. ;
Ephrim Thompson Pitkas Point
Q: Concerns about low voltage problems and would like generator at Pitkas Point. Two street
lights just installed were paid for in August, why so long to get? Can someone cast vote for
another not present at village meetings?
A: Voltage survey being analyzed. Not yet feasible to place power plant at Pitkas Point.
Logistics problems probably delayed lights, will get better answer later. Bylaws do not permit
proxy voting, each member must cast own ballot.
Jerri Moore Elim
Q: Expressed appreciation for new streets. Elim passed resolution supporting PCE and wrote
governor. Exploring possible hydro. Need fence around power plant. Need to address
condition of BIA trailer. Financial report could be simpler.
George Morgan Upper Kalskag
Q: Expressed need for power plant: 40 to 60 hours of power outages, new wells and housing
coming. When will buried cable be converted to overhead. Meet with Upper and Lower
councils. Takes long time to hook up new house.
A: Power outages were unusual, 39 hours due to BIA diggings. Conversion to overhead not yet
scheduled but new housing will be overhead. Delays in hook up can be due to underground
systems, cannot attach to in winter.
Minutes of the March 26, 1997, Annual Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
DOOR PRIZE AWARDS
Mary Belkoff-Peters Russian Mission Albert Washington St. Michael
Crim Evan Lower Kalskag Wanda Price Old Harbor
Patrick Phillip Alakanuk Phyllis Clough Old Harbor George Beans, Sr. St. Mary’s Patricia Koozaata Gambell Michael Tickett Shungnak James Bright, Jr. Goodnews Bay Ambrose Shorty Emmonak
Joseph Maillelle, Sr. Grayling
Mary Andrews St. Mary’s John Kulowiyi, Sr. Savoonga Eugene Monroe Noatak Yako Tinker, Sr. Kasigluk
Herb Lockuk, Jr. Togiak
Charles W. Charles Koyuk Gerry Alexie Mt. Village Jerri Moore Elim Ephrim Thompson Pitkas Point
Zachariah Chaliak, Sr. Nunapitchuk
Delores Hunter Marshall Morgan Apatiki Gambell Zachariah Chris Nunapitchuk
Michael Murran Hooper Bay
Daniel Olrnn, Sr. Mekoryuk Ignatius Matthias Nightmute
Anthony Ulak Scammon Bay Robert Roberts Quinhagak Franklin Benjamin, Sr. Shageluk
Aaron Gologergen Savoonga
Ramona Sheldon Selawik Lydia Mashbum Selawik Maurice Minks, Sr. Kiana Bert Agwiak Mt. Village
Edgar Ningeulook Shishmaref Esau Weyiouanna Shishmaref
Walter Brown Eek Frank Flynn Tununak
George Morgan, Jr. Upper Kalskag Albert Ulroan Chevak
Arthur Tocktoo Brevig Mission Norma Hoelscher Hooper Bay Fred Sagoonick Shaktoolik
Lydia Douglas . Ambler
Ike Sampson Noorvik Bobby Wyagon New Stuyahok Donald Smith Kiana
Jean Ferris Stebbins Nellie Ballot Noorvik David Tim Toksook
Emma Anungazuk Wales
Phillip Demientieff Holy Cross Caleb Wesley Kivalina Victor Nicholas Nulato
Isabel Nollner Huslia Charlie George Pilot Station
walnut desk set
hammer & shirt jacket
duffel bag & mug
mini-cooler ski gloves
dae bit set jacket
emergency kit crock pot $50 Sports Authority bag & cooler
Bering Air jacket cert.
thermos mug, shirt
driver bit set air compressor
Mini-Mag flashlight & hat driver bit set jacket
shirt, hat, ratchet driver
$25 Sports Authority Smart Grip pliers
ratchet driver
$25 Sports Authority Cross pen & shirt jacket
thermos mug, shirt jacket Regal Alaskan cert.
ski gloves
ratchet driver
jacket
Smart Grip pliers $50 Sports Authority smoke alarm
CM dectector Skil saw square & hat
vest
ski gloves
Smart Grip pliers
basket with cleaners
tool set & mug tool apron, drivers, bag tool apron, drivers Fleetgard watch jacket
Leatherman tool & shirt
Leatherman tool & shirt
tool set & mug
jacket tool set & mug mug, shirt, hat
70 piece tool set with case Fish On alarm/clock
Penn-Air ticket voucher VCR
television
NAC certificate
1881
Alaska Lamintated Signs
Alaska Industrial Hardware Alaska Pipe & Supply
Alaska Pipe & Supply Alaska Pipe & Supply
Alaska Power Sports Alaska Steel Alaska Rubber & Supply Arctic Controls
Hageland Aviation Service
Hayden Electric Motors
LEM Radiator, Inc. Bering Air Delta Wester, Ace Supply
Fasteners & Fire Equip Far North Supply
Stusser Electric Fastemers & Fire Equip
Crowley Marine Service
Snap. “On Tools, Cal Worth. Libenty Alaska WESCO
Snap-On Tools Liberty Alaska
Delta Western, Alaska Lube Crowley Marine Service Delta Western, Dayton Bag
Northland Services Security Aviation
Alaska Power Sports
Snap-On Tools
Northland Services WESCO
Hayden Electric Motors
Western States Electric
Western States Electric Alaska Industrial Hardware
Pacific Detroit Diesel
Alaska Power Sports WESCO
Spill Shield Int’]
Potelcom Supply
Graybar Electric Graybar Electric
Cummins Northwest, Inc.
Delta Western Inlet Petroleum
Inlet Petroleum Potelcom Supply
Pacific Detroit Diesel Potelcom Supply
Delta Western, NEI Fluid
Sears Commercial Lloyd Controls
Penn-Air Potelcom Supply
Power Measurements Norther Air Cargo
ANNUAL MEETING DELEGATES 1997
VILLAGE DELEGATE MEM # 3/25/97 3/26/97 VOTE
1 |Ambler Lydia Douglas 3892|X Xx xX
2_ |Anvik Ronald D. Kruger, Sr. 3018
3__|Brevig Mission ArthurTocktoo 10071|X Xx X
4 _|Chevak Albert J. Ulroan** 836 |X Xx X
5 none none
6 |Eek Walter P. Brown 10741|X Xx X
7_ {Elim Jerri Moore 2579/|X Xx X
8 |Gambell Patricia Koozaata 4162|X X Xx
9 Morgan Apatiki 4303|X Xx X
10 _|Goodnews Bay James Bright Jr. 8016 |X X X 11_|Grayling Joseph Maillelle, Sr. 322|X Xx Xx
12_|Holy Cross Phillip J. Demientieff 7785 |X Xx X
13 |Hooper Bay Michael_C. Murran 7439|X X Xx
14 Norma C. Hoelscher** 8356|X Xx Xx
15 |Huslia Isabelle M. Noliner 5525|X - X X
16 |Kaltag Earl Esmailka 9811|X Xx Xx
17_|Kasigluk Yako Tinker Sr.** 5899 |X X X
18 |Kiana Donald Smith 193|X Xx X 19 Maurice Minks Sr. 1077|X Xx Xx
20 _|Kivalina Caleb P. Wesley 4324|X X X
21_|Koyuk Charles W. Charles** 7207|X X Xx 22_|Lower Kalskag Crim Evan 1366|X X Xx
23 _| Marshall Delores Hunter 9764|X Xx Xx 24 _|Mekoryuk Daniel T. Olrun Sr. 1929|X Xx Xx
25 | Mt. Village Gerry J. Alexie 11251|X X X
26 Bert R. Agwiak 11203|X X Xx
27_|New Stuyahok Bobby Wyagon 7576|X X X
28 _|Noorvik Nellie K. Ballot 4016|X X Xx
29 Ike Sampson 1311 Xx xX
30 _|Nulato Victor Nicholas 2901|X Xx Xx
31_| Nunapitchuk Zechariah C. Chaliak Sr. 103502 |X Xx X
32 Zachariah Chris 4170|X X X
33_|Old Harbor Phyllis Clough _ 6816|X Xx Xx 34 Wanda Price 8122|X X Xx
35 _|Pilot Station Albert F. Beans Jr. 558|X X X 36 Charlie W. George** 6147|X Xx Xx
37_|Russian Mission Mary Belkoff-Peters 2011|X Xx Xx
38 |St. Mary's George T. Beans, Sr. 4838 |X X Xx
39 Mary U. Andrews** 4826|X X Xx
40 _|St. Michael Albert A. Washington 853|X Xx Xx
41 _|Savoonga John F. Kulowiyi Sr. ** 1768 |X Xx X
42 Aaron Gologergen 8012|X X X
43 |Scammon Bay Anthony Ulak 4034 |X Xx X
44 |Selawik Ramona Sheldon 5207|X Xx X
45 Lydia Mashburn 6374|X Xx X
46_|Shageluk Franklin Benjamin Sr. 9300|X Xx X
| 47_| Shaktoolik Fred N. Sagoonick 6368 |X X X 48 |Shishmaref Esau K. Weyiouanna 1838 |X X Xx
|_49 Edgar Ningeulook 2810|X X X
50 _|Shungnak Michael |. Tickett 3575 |X Xx Xx 51_|Stebbins Jean F. Ferris 3226 |X X X
52_|Togiak John P. Nick 4588|X Xx Xx
53 Herbert Lockuk, Jr. 7744|X Xx X 54 |Toksook Bay David B. Tim 7A77|X IX S |_55_|Tununak Frank J. Flynn 3504 |X X X 56_|Upper Kalskag George Morgan Jr. 3771|X xX Xx
57 |Wales Emma Anungazuk 10437|X Xx Xx
“Alternates 55 55 os
C:\QPW\DEL.97 03/28/97 08:35:30
1870
Minutes of the March 25, 1997, Public Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
A special meeting of Alaska Village Electric Cooperative, Inc. was held at the West Coast
International Inn, Anchorage, Alaska, on March 25, 1997, 1 to 4 p.m. to hear public comments on a
proposal to exempt AVEC from regulation by the Alaska Public Utilities Commission. Persons
present in person or by telephone connection indicated on attached list.
George Bowder St. Mary’s
Q: How many and percentage rate changes by AVEC?
A: 1978 — average 38% increase; and 1996 — average 5% increase
Q: What is AVEC Energy Services?
A: For-profit wholly-owned subsidiary of AVEC, Inc. to compensate for possible future loss of PCE.
Q: Does deregulation mean trade State for RUS oversight?
A: No — lose State oversight, RUS remains in place as is. RUS is AVEC financer.
Q: Concern about lack of information from Board on issues.
A: AVEC newsletter, Ruralite magazine, meeting agenda used to transmit information.
Walton Smith St. Mary’s
Q: Spoke against deregulation - not enough information on positive aspects of APUC oversight to
compare with reasons for deregulation, the RCC on billings is an assessment to pay for APUC
operations, including rate reviews.
A: Assessment is for APUC overhead but AVEC still incurs legal costs of about $50,000 per case to
prepare rate change proposals or challenges.
Richard Alstrom St. Mary’s
Q: Opposes loss of APUC oversight.
A: Charles Walls clarified that government oversight would still be present with RUS as AVEC
financer and as such has extensive power over AVEC operation.
Jean Ferris Stebbins
Q: Stated she read an article in newsletter on deregulation discussing pros and cons — any response?
A: Very little, also sent a postcard survey in November billing.
Charles W. Charles Koyuk
Q: Lease agreements and ROW’s change under deregulation?
A: No.
1871
Minutes of the March 25, 1997, Public Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
George Bowder St. Mary’s
: What would be guidelines under deregulation?
Industry practices, analyses, rate design.
: Ruralite has too much advertising and not enough news, especially Alaskan.
: This is a publication produced cooperatively by 5 states and advertising pays for, otherwise it
would be cost prohibitive for any one state. FORO Maurice Minks, Sr. Kiana
Q: What is composition of APUC?
A: Five member political appointees, 6-year term, no rural representation at this time.
Ambrose Shorty Emmonak
Q: Can quorum for village meetings be reduced? Board meet with tribal or city council?
A: Bylaws govern and can be changed if desired by the membership.
Mike Murran Hooper Bay
Q: What would be negatives of deregulation?
A: Loss of one watchdog.
Ignatius Matthias Nightmute
Q: How long will it take APUC to approve acquisition by AVEC and how long under deregulation?
A: APUC retains authority over assignment of service area, deregulation means APUC would not
tule on rate changes. By example of Bethel decision, could take up to 2 years; 6 months at least.
George Morgan Upper Kalskag
Q: Spoke in favor of deregulation. How much will loss of PCE cost us?
A: Deregulation does not mean losing PCE.
Bobby Wyagon New Stuyahok
Q: Favor deregulation, fight for PCE, need fence around power plant.
Jean Ferris Stebbins
Q: Who votes on deregulation and need more details on pros and cons?
A: All members vote by mail. Fifteen percent of AVEC membership must vote and simple majority
of voters carry the issue.
Walter Brown Eek
Q: Advocated information distribution in non-English versions.
1872
Minutes of the March 25, 1997, Public Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Phillip Demientieff Holy Cross
Q: Are pros and cons on ballot?
A: Ballot content restricted by APUC, can have only the proposition.
Arthur Tocktoo Brevig Mission
Q: Residents not AVEC members eligible to vote?
A: Only those recorded as members on April 18 can vote.
Victor Nicholas Nulato
Q: Asked Roger Kemppel to explain again reasons for cooperatives to not be regulated.
A: Non-profit organization owned and managed by members with an elected board of directors; not
pursuing profit margin to satisfy stockholders.
Richard Alstrom St. Mary’s
Q: Concerned about responsiveness to individual problems under deregulation and needs more info.
Esau Weyiouanna Shishmaref
Q: Must there be a meeting of village residents to vote?
A: No, each member will vote independently.
Victor Nicholas Nulato
Q: Important to control own destiny, we have a board representing our interests and accountable to
consumer. All board members come from the villages.
Huslia City Council Huslia
Q: What is location of new power plant and what will be disposition of dead lines in ground?
A: Asked to put questions in writing to AVEC and can be formally responded to.
Walton Smith St. Mary’s
Q: Doesn’t see deregulation as just a philosophical issue; takes money to keep members involved.
Robert L. Beans, Chairman Helena R. Jones, Secretary
Minutes of the March 25, 1997, Public Meeting
Alaska Village Electric Cooperative, Inc.
4831 Eagle Street
Anchorage, AK 99503
PERSONS ATTENDING PUBLIC MEETING ON DEREGULATION ISSUE
1872a
Name Community Name Community
The following individuals signed in at the meeting
Donald Smith Kiana Michael I. Tickett Shungnak
Walter P. Brown Eek Robert D. Roberts Quinhagak
Jaseph Maillelle, Sr. Grayling Daniel T. Olrun, Sr. Mekoryuk
Maurice Mink, Sr. Kiana Lydia Douglas Ambler
John Kulowiyi, Sr. Savoonga Caleb Wesley Kivalina
Aaron Gologergen Savoonga Eugene Monroe Noatak
Wanda Price Old Harbor Charles W. Charles Koyuk
Phyllis Clough Old Harbor Ambrose Shorty Emmonak
Mary Haakanson Old Harbor Anthony Ulak Scammon Bay
Jean Ferris Stebbins Mary Belkoff-Peters Russian Mission
Victor Nicholas Nulato Charlie W. George Pilot Station
Earl Esmailka Kaltag Albert Beans, Jr. Pilot Station
David B. Tim Toksook Albert Ulroan Chevak
Gerry J. Alexie Mt. Village Franklin Benjamin, Sr. Shageluk
Bert Agwiak Mt. Village Phillip J. Demientieff Holy Cross
Crim Evan Lower Kalskag Jerri Moore Elim
George S. Morgan, Jr. Upper Kalskag Bobby Wyagon New Stuyahok
Morgon Apatiki Gambell Isabelle Nollner Huslia
Fred Sagoonick Shaktoolik Richard W. Mashburn Selawik
Patrick Phillip Alakanuk Lydia Mashburn Selawik
Emma Annungazuk Wales Ramona Sheldon Selawik
Mary Andrews St. Mary’s Ignatius Matthias Nightmute
George Beans St. Mary’s Esau Weyiouanna Shismaref
Ephrim Thompson Pitkas Point Edgar Ningeulook Shishmaref
Nellie Ballot Noorvik Arthur Tocktoo Brevig Mission
Ike Sampson _ Noorvik
Patricia Koozaata Gambell
Yako Tinker, Sr. Kasigluk The following were present by telephone link
Zachariah Chaliak, Sr. Nunapitchuk
Zachariah Chris Nunapitchuk George Bowder St. Mary’s
James Bright, Jr. Goodnews Bay Walton Smith St. Mary’s
Albert A. Washington St. Michael Richard Alstrom St. Mary’s
Norma C. Hoelscher Hooper Bay Huslia City Council Huslia
Michael C. Murran Hooper Bay
Frank J. Flynn Tununak
MEMORANDUM
February 27, 1998
CON98M05
TO: Charles Walls, President and CEO
FROM: Don Pitts, Manager, Construction 6°
SUBJECT: Construction Report for 1997
Attached is the Cosntruction Report for 1997. The following work order improvements were
accomplished by the AVEC Staff, contractors, AEA and village labor during 1997.
ALAKANUK
Svc to (4) heat trace meter poles for Village Safe Water
Sve to Richard Weaver - Shop
Svc to Lawrence Edmund
AMBLER
Svc to Kobuk Valley Supplies (c/o Lewis / Virginia Commak)
Svc to Barbara McManus Home
Svc to Nick Jans
Svc to Steve Pilz - 60D040 Must be done first
Convert Backbone URD Distribution System to Overhead Phase 1
Take over 20 Street Lights
Install used Oil Blender
ANDREAFSKY
Take over 8 street lights and install 2 new street lights
ANVIK
Upgrade distribution system to 3 Phase from new plant site
Install temporary construction power at new power plant site
Relocate power plant / tank farm
Install ground grid at new plant site
Install temporary power for the re-location of power plant
Install diamond plate floor in the power plant
Retire generator only from pos #2. S/N 503 A697112N6
Retire temporary power module - re-install AC11000 in pos #1
Retire URD at the backbone site
Sve to Christ’s Church
Sve to Inagalik Corp #3
Retire 44 PHS converted services and secondary
CHEVAK
Install 21 streetlights
Sve to Franklin F. Matchian
Svc to Moses Tulim
Sve to Kashunamiut School District New Transmitter Bldg.
Sve to PHS Water/Sewer Maintenance Bldg.
Sve to James Nash & Stella Lake
Sve to Teachers Housing Trailer
Re-locate service to 4 houses (sewer / water project)
EEK
Sve to Agnes Peluska (CII re-building house)
Sve to Sarah Nicholas
ELIM
3 Phase Service to upgraded Water Plant
Single Phase Power to Water Treatment Plant
Sve to Ted Moore
Sve to MukLuk Phone Co. (Relocation)
Sve to Maurice & Ellen Ivanoff
Sve to Ed & June Davis
Fence Plant Site
Improvements - Sync, Paralleling, Load Share capabilities for Power Plant Units
EMMONAK
Take over 35 street lights
Sve to Robert Wasuli (Replace home that burned)
Svc to Humphry Keys new home
Svc to Peter & Mary Jones
Sve to City Cable Bldg.
Upgrade Svc to Public Works Building to 200 amps
GAMBELL
Install dedicated feeder to Water Plant
Sve to 2 City trailers (one meter)
Sve to Well House (water/sewer project)
Sve to Harold Koonnooka
Upgrade roof - Pos #3 Module - to a sloped roof
Install converted 1800 RPM KTA-19 Engine only S/N 3114013
Extend piped engine cooling system from Module #2 to Module #3
Retire CAT 3406 engine from Pos #3 S/N 2WB11952
GOODNEWS BAY
Svc to Joe Mark
Sve to Esther Fox
Sve to Mumtram Pakkai Inc. Duplex
Svc to Sam Pavala
Svc to Kuitsarak, Inc., new store
Sve to Pauline Joseph
Relocate Sve for two (2) Teacher Housing Buildings
Relocate Svc for Charlie Kavala (paid by CIA)
HOOPER BAY
Install replacement 15 KVA transformer at Pole #6 S/N 1548241095
Retire filed 15 KVA transformer at Pole #6
Convert svc to LYSD School Complex to 480 Volt 3 Phase
Retire 480/209 Volt step down transformer at school (done with W/O 08D96)
Sve to Solid Waste Upgrade Project Cap Trailer
Svc to City owned rental home - Pole 13-2
Install unit heaters and guards in storage vans
Upgrade battery bank
HUSLIA
Take over 11 existing street lights
Sve to Community Church of Huslia
Sve to 25 HUD homes
Svc to Interior Airways Inc. (James Parrish)
Svc to PHS Sewage Lift Station
Svc to Vince & Justine Yaska
Svc to Helen Huffman
KALTAG
Temporary Svc to PHS Construction Van Trailer
KASIGLUK
Install spare submarine cable 42-L to 43-L (Akula Heights Crossing)
Relocate svc for David & Xenia Nicholas
Svc to AE Store (Managers Quarters)
KIANA
Install 20 replacement street lights
Svc to GCI Earth Station
Sve to Friends Church
Svc to Loren & Nelson Walker
Install Padmount 50 KVA xfrmr A-Phase @ School (K32-A1l) S/N L903119YBMA
Retire Padmount 50 KVA xfrmr A-Phase @ School (K32-Al) S/N 73D76345
Retire xfrmr K-37 at airport (Damaged by Contractor) S/N 74A10598
KIVALINA
Svc to State of AK DOT - Airport equipment storage building
Svc to Dolly Adams & Daniel Don Foster
Install impermeable barrier under new fuel storage tanks
KOYUK
Correct overloaded transformer on Pole B1/1
Reconnect 18 Svc that were upgraded by PHS
Sve to GCI Earth Station
Svc to Oscar Swanson Jr. (Trailer)
LOWER KALSKAG
Sve to Billy Williams
Sve to Paul S. Evan Jr.
Sve to City Tank Farm
Sve to Fr. Steven Epchick
Svc to Mary Jennee Sergie (Trailer)
Sve to Leigh Thorsen
Relocate Pedestal LKL-17 ATF
Relocate Sve Annie Levi
Install van for truck garage at plant site
Retire CAT 342 engine only, pos #3
MARSHALL
Install 2 new street lights
Sve to Alex Evan
Svc to Wesley Pitkka
Sve to New Catholic Church
Sve to Catholic Parsonage (disconnect old church)
Svc to Francina Myers
Svc to Nicholas Boots
MEKORYUK
Install 3 new street lights
Take over 15 existing street lights
Install 6 new street lights
Sve to Edna Mathlaw
MINTO
Svc to Tony John
MT VILLAGE
Sve to Edward Joe
Svc to LYSD New Duplex, Teachers Housing
Retire O/H Svc from pole 2-5L for Big Corp Shop
Fence plant site
NEW STUYAHOK
Sve to GCI Earth Station
Svc to Headstart Storage Van
Retire Gen Set Pos #1, AC 685I S/N 85-04711, KATO 88667-4
NOATAK
Sve to 20 new HUD homes NWIHA
Install sheet metal walls & ceiling in Daytank Room
NOORVIK
Sve to Noorvik Elders Council Office
Sve to Fred & Rosaline Washington
Sve to KIC (Kikiktagruk Inupiat Corp) Shop
Sve for KIC Home
NULATO
Svc to relocated Airport Apron Building
Svc to Albert Evans
Temporary svc to pump station at Teacher Housing
NUNAPITCHUK
Install a spare submarine cable across the Johnson River
Sve to Russian Orthodox Mission House
Install Padmount 100 KVA transformer at plant to parallel with NU3A
Install 100 KVA transformer at plant NU2B
OLD HARBOR
Take over 32 existing street lights
Install 1 new street light
Sve to City Firehouse
Retire spare transformer at plant site (broken)
PILOT STATION
Airport Lighting Project DOT Project #66571
Svc to New Post Office
Svc to Patrick Nick Jr.
PITKAS POINT
Install 2 new street lights
Svc to Health Clinic
Relocate svc to Emily Nicholas
QUINHAGAK
Install 12 new street lights
Sve to Maintenance Bldg. for Water Plant
Install new 25 KVA transformer on Pole Q15
Install GenSet in Pos #1, KTA 1150 S/N 37145071
Install Control Panel in Pos #1
Connect units #1 & #2 to remote radiator cooling system
Install a second remote radiator on the Butler Building
Install Heat Exchanger and extend hydronic heat to storage van #1
Install plant digital totalizing demand meter
Install Aquacon filter
Upgrade station batteries
Upgrade daytank room in Butler building
Upgrade engine cooling system in an all welded / flanged piping system
Extend hydronic heat to storage van #2
Retire GenSet in Pos #1, CAT D342 S/N 49B1991 GEN S/N 70845-1
Retire Simplex Control Panel from Pos #1, S/N 18705
RUSSIAN MISSION
Sve to 20 new homes
Sve to Nick P. Changsak
3 Phase svc to New Lift Station
Install a 15 KVA transformer on Pole 5-6-1B (to improve service voltage)
Temporary service to new plant site
Relocate Power Plant
Fence plant site
Install fuel fill line
Install impermeable liner under bulk fuel tanks
Install welded manifold & welded daytank fill line
Install Fill line from Beach to LYSD tank farm 850 feet
ST MARYS
Takeover 12 existing street lights
Install 8 new street lights / retire 1
Install 2 new street lights
Sve to Robert Hall (House from Andreafsky to St. Marys)
Svc to Microwave Landing System
Sve to Crawford Air / Refrigeration Warehouse
Relocate 3-Phase riser at AVEC Power Plant for Ray Virgin
ST MICHAEL
Svc to Yutana Barge Lines (Pole Svc)
SAVOONGA
Sve to Elivin Noongwook
3/O temporary sve for NSEDC Ice Van
Retire CAT D353, pos #1
SCAMMON BAY
Sve to PHS - 2 shop trailers
Svc to LYSD Teachers Housing - 2 units
Install upgraded L-10 (400 HP) engine only, Pos #1, S/N 48400579
SELAWIK
Sve to GCI Earth Station
Sve to IRA House (Improvement project for Rhoda Skin)
Sve to New Clinic
Install two storage vans with lighting, shelving and hydronic heat
Install new type quieter Muffler on unit #3
Instal CMS 2300, pos #4 S/N 97665-1
Connect unit #1 into remote radiator cooling system
Install a second remote radiator on Butler building
Convert Generator voltage to 480 Volt 3-Phase
Install Waste Oil filtering and blending unit
Upgrade foundation for module in position #4
Upgrade Butler Building vent system
Upgrade & relocate existing storage shed at plant site
Upgrade paralleling capability & install manual synchronizing swing panel
Install 1800 RPM, Ser 60 GenSet in pos #2, S/N 06R233831
Improve working space in Butler Building
Retire CAT 3406 GenSet in Pos #4, S/N 90U17364 KATO S/N 88720
SHAGELUK
Install 3 new street lights
Sve to City Building (rental to Michelle Farrugia)
Sve to Lucy & Chuck Schuroski
Install a 10 KVA transformer on pole 5-1
SHAKTOOLIK
Svc to new Native Store
Retire 15 KVA transformer from pole A12
SHISHMAREF
Improve svc to FAA NDB Site
Sve to Alfred Pootoogooluk Jr.
Sve to GCI Earth Station
Svc to Native Corp Classroom
Sve to Shishmaref Native Corp. - CATV
SHUNGNAK
Sve to Lift Station for NWIA Subdivision (Birchwood)
Svc to 7 Homes (5 destroyed by fire / 2 being remodeled)
STEBBINS
Relocate Airport services for DOT Airport improvements
Sve to 20 Mutual Help Houses
Sve to Katherine Washington & Gregory Mike
Sve to DOT Electrical Equipment Enclosure (EEE)
TOGIAK
Sve to John Guest
Svc to Emma Pauk
Sve to GCI Earth Station
Svc to Gary Carlos
Sve to Andrew Andrews
Svc to Roger Wassillie
Retire 10 KVA Transformer from pole 5-7 S/N N899553-YDY
Install used lubricating oil filtering & blending system
Waste Heat Recovery system to be installed by AEA
Install CMS KTA 2300, pos #4 GenSet
Connect second unit in Butler Building remote radiator
Extend Hydronic heat to storage van
Upgrade daytank room
Retire CAT 3412, Engine only, pos #4
TOKSOOK BAY
Install 1 new street light
100 Amp Svc to PHS Lift Station
Sve to Robert J. Pitka
Install a 10 KVA transformer on Pole 12
Retire a 15 KVA failed transformer from Pole 12
Retire a 25 KVA transformer from Pole 5R-1
Install CAT 3412, Engine only, pos #1, Low Speed Engine, S/N 38809716
Install ground grid system
Install battery bank inside heated enclosure
Retire CAT D353, Engine only, pos #1, S/N 46B5244 & Control Panel
TUNUNAK
Sve to Frontier Cable
Sve to Mathias James
Svc to Anastasia Evan
Retire two (2) each 50 KVA transformers and take to the dump
UPPER KALSKAG
Svc to East Sewer Lift Station
Svc to Paul Kameroff Jr.
Svc to Wayne & Lisa Holmburg Sr.
Svc to Kenny & Dunia Morgan
Svc to New Clinic
Sve to Adrianne Kerr
Sve to Logan Peter Tetoff
Relocate Pedestal KL-13 for VSW Project #4
WALES
Replace svc to Wales School
Sve to Teachers Housing - 2 units
Temporary svc for Neiser Construction - Construction power pedestal
DP/wlr
1998 Annual Meeting Attendance
Village” Delegate
1|Alakanuk Denis Sheldon
2 John A. Hanson
3|Ambler Ada R. Cleveland
4| Anvik Ronald D. Kruger, Sr.
5] Brevig Mission Elmer K. Seetot, Jr.
6| Chevak Patrick Tall 7 David T. Ulroan
8|Eek Walter P. Brown
9] Elim Jerri Moore
10|Emmonak Joe Augustine
11 Ambrose G. Shorty
12|Gambell Morgan Apatiki
13 Patricia Koozaata
14] Goodnews Bay Jesse Beaver
15] Grayling Joseph Maillelle, Sr.
16] Holy Cross. Phillip J. Demientieff
17| Hooper Bay Michael C. Murran
18 Ole Lake
19 Dellamae R. Joe
20} Huslia Isabelle M. Noliner 21 [Kaltag Earl Esmailka
22|Kasigluk Moses White, Sr.
23) Kiana Maurice Minks, Sr.
24 Donald Smith 25} Kivah
26
27
28 Delores Hunter
29] Mek Dale T. Smith, Sr.
30] Minto Jennie R. Baker
31| Mt. Village Bert R. Agwiak
32 Gerry J. Alexie
Ron L. Moo
Nellie K. Ballot
Lonnie Tebbits
Nulato Victor Nicholas
Nunapitchuk Robert_Nick
Eli J. Wassillie
Old Harbor Phyllis Clough
Wanda Price
Pilot Station Albert F. Beans, Jr.
Carolyn Heckman
Pitkas Point Ephrim Thompson
Quinhagak Robert D. Roberts
Henry W. Small
Russian Mission Mary Belkoff-Peters St. Mary's/Andreafsky | George T. Beans, Sr.
Moses Paukan, Jr.
St. Michael Albert A. Washington Savoonga John F. Kulowiyi, Sr.
Morris Toolie, Sr.
Xavier T. Simon
Lydia Mashburn
Ramona Sheldon
Shageluk Franklin Benjamin, Sr.
Scammon Ba
Shaktoolik Fred N. Sagoonick
BASALISSLSSSAPSHRLYGLSSSERSHRSHSSSEVVLSRE Shishmaref Winfred Obruk
Edwin J. Weyiouanna
Shungnak Michael |. Tickett
Stebbins Juliana Southall
Togiak Herbert Lockuk, Jr.
John P. Nick Hi
Toksook Bay _ Simeon R. John
Charles J. Moses
Tununak Frank J. Flynn
Upper Kalskag Paul N. Kameroff, Jr.
Wales Emma Anungazuk
C:\GEORGIAUMLISTS.WB1 03/23/98, 15:56:37
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.
Twenty-ninth Annual Meeting
March 25, 1998
Resolution 98-AM-01
A Resolution To Establish And Confirm A Policy Of Sober And Responsible Representation By
Whereas:
Whereas:
Whereas:
Whereas:
Whereas:
Whereas:
AVEC Annual Meeting Village Delegates
Alaska Village Electric Cooperative, Inc. (AVEC) is an electric cooperative serving 51 Native
Villages in Rural Alaska; and,
The Village Delegates meet each year to represent their communities at the Annual Meeting held in
Anchorage; and,
The Village Delegates recognize the critical effect that alcohol and drug abuse is having on our
survival as native people; and,
The Village Delegates realize the importance of a strong, sober leadership to provide positive role
models for our children and those that the Delegates represent; and,
The AVEC Board of Directors has encouraged the Village Delegates to take part in the “Take Pride
in Sobriety” campaign at past Annual Meetings; and,
Both the Village Delegates and the AVEC Board of Directors have taken strong measures to ensure
a sober Annual Meeting annually;
Now Therefore Be It Resolved that the Village Delegates of the Twenty-ninth AVEC Annual Meeting have determined
to support the AVEC Board of Directors past efforts and address the issue of reprimanding Village Delegates
sponsored by AVEC to attend the AVEC Annual Meeting and who do not fulfill the responsibilities due to the abuse
of alcohol or drugs. The following sanctions may be imposed for just cause, which may include but not be limited to:
For a first offense:
1) Expulsion from the AVEC Annual Meeting at the request of the Chairman of the Board.
2) Full reimbursement of travel and per diem costs to AVEC.
3) A letter to be sent to appropriate entities advising them of the circumstances and actions.
For a second offense:
1) A second violation will result in AVEC not providing travel and per diem for the Delegate and the individual
will be barred from attending the AVEC Annual Meeting until they can exhibit responsible and accountable
behavior.
Adopted by the AVEC Village Delegates at the Twenty-ninth AVEC Annual Meeting held in Anchorage, Alaska on
March 25, 1998.
Robert L Beans, Sr., Chairman of the Board Helena R. Jones, Secretary
qr.
qtr.
rir.
Date Adopted: 11/7/79
Date Revised: 576/94
Alaska Village Electric Cooperative, Inc.
DELINQUENT ACCOUNTS OF DIRECTORS
OBJECTIVE
A. To recognize that the Board Members have a special
position of trust and must set an outstanding example for
other Cooperative members concerning regular and timely
payment of all amounts owed to the cooperative.
To recognize that delinquent amounts owed by a member of the Board can cause embarrassment and may seriously jeopardize the ability to collect other delinquent
accounts if admitted as evidence in legal proceedings.
Cc. To recognize that Board Members have an obligation to
enforce the Cooperative Bylaws and tariff.
POLICY |
It shall be the policy of Alaska Village Electric Cooperative,
Inc. to:
A. Proceed with disconnection procedures as found in the current tariff and conforming to the Alaska Public Utilities Commission's rules and regulations concerning delinquent accounts for any Board Member that is delinquent in payment at 60 days or more.
Notify Delegates of the Annual Meeting prior to voting of any member with a 60 day or over delinquent account that
is nominated for a position on the Board of Directors
Proceed with disconnection procedures as found in the
current tariff and conforming to the Alaska Public Utilities Commission's rules and regulations concerning delinquent accounts for any member with a delinquent account who is elected to the Board of Directors. The member must bring the account to less than 60 days delinquent within 30 days of election to the Board.
RESPONSIBILITY
The General Manager is responsible for monitoring and enforcing this policy.
This policy supersedes and cancels all correspondence on the subject.
Res. # 79-33
Res. # 94-38
ATTEST: leben kK Ponce —
elena R. Jones, eCretary
2019.1
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.
BYLAW PROPOSITION NO. 1
Should the second paragraph of Section 2, Patronage Capital in Connection with Furnishing
Electric Energy, of Article VII, Nonprofit Operation, be amended as follows:
All other amounts received by the Cooperative from its operations in excess of costs
and expenses shall, insofar as permitted by law, be:
(a) Used to offset any losses incurred during the current or any prior fiscal year;
and
(b) To the extent not needed for that purpose, allocated by the Board either (1)
to its patrons on a patronage basis and any amount so allocated shall be
included as part of the canal credited to the accounts of patrons, as herein
The reason for this change is to reduce the cost of AVEC’s equity capital, which in turn will help to keep the electric rates as low as
possible, The non-operating income that is not provided by the members is retained as permanent capital and does not have to be replaced.
Operating income that is provided by the members will continue to be refunded (capital credits) and replaced by new income from the
furnishing of electric service to the members.
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.
March 23, 1998
Dear Mayor and City Council Members
Subject: Enrollment of the City Power Plant Operator Into
the State Retirement Program
In 1986 the AVEC Board of Directors passed a resolution to
increase Plant Operator Payments for cities adopting the State
of Alaska's Public Employees Retirement System (PERS).
To date only a few AVEC communities have adopted the state
retirement system. Once again we encourage communities to
contact:
State of Alaska
Public Employees Retirement System
Division of Retirement and Benefits
P.O. Box 110203
Juneau, AK 99811
Tel (907) 465-4460
The state will direct you to the correct area representative and
send you the required information and paperwork which must be
completed and returned to them.
as The City Council must pass a resolution.
2. They must complete the application.
3. They must send the completed application and copy of
approved resolution to:
Public Employees Retirement System
Division of Retirement and Benefits
P.O. Box 110203
Juneau, AK 99811
nw When the State has agreed to your participation, send AVEC
a copy of the approval showing the "Effective Date".
5. Upon receipt of this information, AVEC will add an
additional 16% to monthly plant operator payments.
4831 Eagle Street - Anchorage, Alaska 99503-7497 - Phone (907) 561-1818 - In State (800) 478-1818 - Fax (907) 561-2388
Remember all persons within the category must be covered;
therefore, if you want only the Power Plant Operator covered, complete your application excluding all other plant operators; i.e.: Water Plant Operator, Waste Water Plant Operator.
The maximum AVEC will reimburse is 16%. Take this into
consideration when deciding on past service adjustments! AVEC
will make payment from the time the operator is accepted in the
program; not retroactive to the date the operator became the
operator.
If you have any problems with the _ forms, call Juneau (907)
465-4460. If I can be of further assistance, please feel free
to give me a call.
Vs
Zz La LEA»)
Patricia L. Stephefison
Manager, Administrative Services
workpls/retire
SN see eel tg ey cer
As an Alaskan Native or concerned individual, I do
Hereby claim the AFN Sobriety Movement’s goals as my
own: “To encourage and support Alaska Natives who are
alcohol-free and drug-free; to encourage the practice of
traditional native values and activities to support sober
Alaska Native leaders and role models.” If we, Alaska
Natives or concerned individuals, are to remain as
healthy, distinct nations it will be because I took a stand
against the elements which weaken and destroy our
spirits, our values and our languages. If our spirits are to
remain strong and sober, it has to begin somewhere.
Let it begin with me!!
Alaska
‘ Rural
. Electric
703 W. Tudor Rd., #200 ]
‘Aiichiorage, AK 99503-6650 Cooperative 907) 561-6103 a a FAX (907) 561-5547 Association, Inc.
Electric Service for 357,000 Alaskans
For immediate release
September 5, 1997
AVEC President Awarded Industry’s Highest Honor
Charles Y. Walls, President and CEO of Alaska Village Electric Cooperative (AVEC) recently
received the highest honor awarded by the state’s electric utility industry, the Mason LaZelle
Memorial Award. The award is presented to individuals who have made outstanding
contributions to rural electrification efforts in Alaska. This year’s award was presented August 21
at the annual awards banquet of the Alaska Rural Electric Cooperative Association (ARECA).
Mason LaZelle was the General Manager at Matanuska Electric Association (MEA) in the 1960's,
a time when cooperatives were actively helping communities establish central station service.
LaZelle was particularly active in this effort. In the early sixties, MEA built generation and
distribution facilities for villages in Stony River and Unalakleet and performed some consulting
work for the community of Tyonek. LaZelle disappeared on February 27, 1968 as he piloted a
Cessna 185 between Nulato and Unalakleet.
As President and CEO for AVEC, Mr. Walls is responsible for the continued provision of reliable
and affordable electric service to residents of 50 villages throughout Alaska. “In his current job,
he has been a strong advocate for the co-op’s members and has been the catalyst for the formation
of the ARECA Rural Issues Forum,” said ARECA’s President, Ken Lancaster in presenting the
award.
The ARECA Rural Issues Forum brings together rural utility managers to discuss ways to
improve service to rural Alaskans and to advocate for rural interests. It is actively promoting a
long term funding plan for the Power Cost Equalization program, which provides assistance to
rural consumers in paying their electric bills. Walls is also Chairman of the ARECA Managers
Association, Chairman of the Alaska Systems Coordinating Council, Chairman of Alaska Energy
Services, Inc., Secretary of ARECA Insurance Management Inc., and serves on the Board of
Directors of ARECA.
Before joining AVEC in 1992, Walls had worked on many utility projects from Metlakatla to
Barrow since coming to Alaska in 1968 and going to work for Robert W. Retherford &
Associates, Consulting Engineers. In addition to his work with Retherford and AVEC, Walls has
served as General Manager of the Glacier Highway Electric Association in southeast Alaska and
as General Manager of the Kootenai Electric Cooperative in northern Idaho. “You have certainly
surprised me with this honor” said Walls in accepting the award. “I look forward to continuing
the work with you to provide reliable and affordable electric service in rural Alaska.”
DEMOCRACY IN ACTION
Deloitte & Touche Lup
IN Suite 1500 Telephone: (907) 272-8462
—- 550 West 7th Avenue Facsimile: (907) 264-3181
Anchorage, Alaska 99501
INDEPENDENT AUDITORS' REPORT
Board of Directors
Alaska Village Electric Cooperative, Inc. and Subsidiary
Anchorage, Alaska
We have audited the accompanying consolidated balance sheets of Alaska Village Electric
Cooperative, Inc. and Subsidiary (the Cooperative) as of December 31, 1997 and 1996, and the
related consolidated statements of operations, equities and patronage capital and cash flows for
each of the years then ended. These financial statements are the responsibility of the
Cooperative's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the
financial position of Alaska Village Electric Cooperative, Inc. and Subsidiary as of December 31,
1997 and 1996, and the results of their operations and their cash flows for the years then ended,
in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic consolidated
financial statements taken as a whole. The additional consolidating information on pages 14-15
are presented for the purpose of additional analysis of the basic consolidated financial statements
rather than to present the financial position, results of operations, and cash flows of the
individual companies, and are not a required part of the basic consolidated financial statements.
This additional information is the responsibility of the Cooperative’s management. Such
information has been subjected to the auditing procedures applied in our audits of the basic
consolidated financial statements and, in our opinion, is fairly stated in all material respects when
considered in relation to the basic consolidated financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report dated February
20, 1998, on our consideration of Alaska Village Electric Cooperative, Inc.’s internal control
structure and a report dated February 20, 1998 on its compliance with laws and regulations. pbbete $ Tonka LLP
February, 20, 1998, except for Note K, as to which the date is March 2, 1998
Deloitte Touche Tohmatsu
International
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
ASSETS 1997 1996
ELECTRIC PLANT
In service, at cost $ 60,278,121 $57,599,496
Construction work-in-progress 7.298.951 7,036,083
67,577,072 64,635,579
Less accumulated depreciation (35.233.499) (32.094.249)
Total electric plant 32,343,573 32,541,330
INVESTMENTS IN ASSOCIATED ORGANIZATIONS 2,205,659 2,194,280
CURRENT ASSETS:
Cash and cash equivalents 17,842,404 17,154,754
Accounts receivable (net of allowance for doubtful accounts 3,553,363 3,447,981
of $993,989 and $997,691 respectively in 1997 and 1996)
Materials, fuel and supplies 4,497,783 5,073,116
Other current assets 379.461 350.331
Total current assets 26,273,011 26,026,182
DEFERRED DEBITS 253,054
TOTAL $_61.075.297 $60.761.792
EQUITIES AND LIABILITIES
EQUITIES $ 26,395,526 $26,101,645
LONG-TERM DEBT, less current maturities 32,100,191 32,035,572
COMMITMENTS AND CONTINGENCIES (Note J)
CURRENT LIABILITIES:
Current maturities of long-term debt 1,656,000 1,505,000
Accounts payable 269,001 473,225
Accrued expenses 466.449 482.457
Total current liabilities 2,391,450 2,460,682
LIABILITY FOR POSTRETIREMENT BENEFITS
OTHER THAN PENSIONS 1,600 1,600
DEFERRED CREDITS 186.530 162.293
TOTAL $_61.075.297 $60.761.792
See notes to financial statements. 2
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 1997 AND 1996
OPERATING REVENUES
OPERATING EXPENSES:
Cost of power generation
Depreciation
Administrative and general
Consumer accounts
Distribution
Payroll and gross receipt taxes
Other
Operating margins before interest expense
INTEREST EXPENSE
Net operating margins
NONOPERATING MARGINS:
Interest income
Other nonoperating income
NET MARGINS
See notes to financial statements.
1997
$18,626,111
10,596,048 3,191,179 2,243,989 504,342 676,226 159,426 39.942
17,411,152
1,214,959
748.124
466,835
1,043,603
93.040
1.136.643
$ 1.603.478
1996
$17,793,099
9,643,602 3,067,757 1,796,563 508,384 967,501 159,203
1,611,083
899,153
1,017.844
94.412
39.006
16.182.016
711.930
1.112.256
$ 2.011.409 we
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EQUITIES AND PATRONAGE CAPITAL
YEARS ENDED DECEMBER 31, 1997 AND 1996
BALANCE, December 31, 1995
Assignment of patronage capital
Memberships, net
Increase in donated capital
Operating margins
Nonoperating margins
Retirements of patronage capital
BALANCE. December 31, 1996
Assignment of patronage capital
Memberships, net
Increase in donated capital
Operating margins
Nonoperating margins
Retirements of patronage capital
BALANCE. December 31, 1997
See notes to financial statements.
Donated Patronage capital
Memberships Capital Assignable Assigned Total
$ 26,800 $ 5,461,959 $ 3,448,631 $16,429,186 $25,366,576
(3,448,631) 3,448,631
2,600 2,600
114 114
899,153 899,153
1,112,256 1,112,256
(1.279.054) _ (1.279.054)
29,400 5,462.073 2,011,409 18,598,763 26,101,645
(2,011,409) 2,011,409
2,165 2,165
71 71
466,835 466,835
1,136,643 1,136,643
(1,311,833) _ _(1,311.833)
$ 31.565 $ 5.462.144 $ 1.603.478 $19.298.339 $26.395.526
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1997 AND 1996
OPERATING ACTIVITIES:
Cash received from members
Cash received from power cost equalization program
Cash paid to suppliers and employees
Interest received
Interest paid
Equity distribution from investment in associated organizations
Net cash provided by operating activities
INVESTING ACTIVITIES:
Additions to electric plant and construction work-in-progress
Contribution in aid of construction
Proceeds from sale of general plant
Net cash used in investing activities
FINANCING ACTIVITIES:
Increase in memberships
Increase in donated capital
Retirement of patronage capital
Payments on long-term debt
Proceeds from additional long-term debt
Net cash used in financing activities
CHANGE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
See notes to financial statements.
1997
$12,430,261 6,090,469 (14,082,684) 1,003,271 (748,124)
91,123
4,784,316
(3,256,473) 253,587 198
(3,002.688)
2,165 71 (1,311,833) (1,615,381) 1,831,000
(1.093.978)
687,650
17.154.754
$17.842.404
1996
$11,404,851 6,451,288 (12,719,841) 1,017,844 (711,930)
75,108
5,517,320
(3,501,203)
390.800
3.854
(3,106,549)
2,600 114 (1,279,054) (1,548,040)
2.500.000
(324.380)
2,086,391
_15.068.363_
$17,154,754
(continued)
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
YEARS ENDED DECEMBER 31, 1997 AND 1996
RECONCILIATION OF NET MARGINS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net margins
Adjustments to reconcile net margins to net cash
provided by operating activities:
Depreciation
Bad debt expense
Loss on sale of general plant
Patronage capital from associated organization
Changes in assets and liabilities which
provided (used) cash:
Accounts receivable
Materials, fuel and supplies
Other current assets and deferred debits
Accounts payable
Accrued expenses
Deferred credits
Total adjustments
NET CASH PROVIDED BY OPERATING ACTIVITIES
See notes to financial statements.
1997
$ 1,603,478
3,191,179
(3,702)
9,266
(11,379)
(101,680)
575,333
(282,184)
(204,224)
(16,008)
24,237
3,180,838
$ 4.784.316
1996
$ 2,011,409
3,067,757
(1,251)
1,871
(21,175)
53,254
(2,002)
231,670
159,084
50,342
(33,639)
3,505,911
$i15:5117,320
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.
AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1997 AND 1996
NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization: The consolidated financial statements of Alaska Village Electric
Cooperative, Inc. and Subsidiary include the accounts of the Alaska Village Electric
Cooperative Inc., (the Cooperative) and Microgen Technologies, Inc., (Microgen), formerly
known as AVEC Energy Services and Alaska Energy Services, a wholly owned subsidiary of
the Cooperative. The Cooperative is organized for the purpose of generating and distributing
electric energy to its members in rural Alaska. The primary source of revenue for the entity
is generated from the sale of electric energy. All material intercompany profits, transactions
and balances have been eliminated. Microgen, Inc. (the Company) is designed to provide
solutions for the high energy costs of small isolated communities or industries by the
development and application of innovative energy production, management and delivery
systems.
The accounting records of the Cooperative conform to the Uniform System of Accounts
prescribed by the Federal Energy Regulatory Commission as modified for Electric Borrowers
of the Rural Utility Services (RUS).
Cash equivalents: For purposes of the statements of cash flows, the Cooperative considers
all highly liquid instruments purchased with an original maturity of one year or less to be
cash equivalents.
Materials, fuel and supplies: Inventory of materials, fuel and supplies is stated at
weighted average cost.
Allowance for funds used during construction: The Cooperative is permitted by
regulatory agencies to provide for a return on capital invested in plant under construction by
including an allowance for funds used during construction as an additional cost of
construction and as a reduction of interest expense.
Income taxes: The Cooperative is exempt from federal income taxation pursuant to
Section 501(c)(12) of the Internal Revenue Code. The wholly owned subsidiary, Microgen
Technologies, Inc. is a taxable entity. The taxes are calculated in accordance with FASB 109
Accounting for Income Taxes.
Patronage capital: Patronage capital consists of net margins accumulated since inception
net of retirements of patronage capital.
The distribution of such patronage capital to members of the Cooperative is restricted under
covenants of RUS mortgage notes. The Board of Directors has established a fifteen year
patronage rotation policy.
Donated capital: Donated capital consists of grant amounts received by the Cooperative
from various agencies, principally the federal government and escheatment of membership
fees.
Nonoperating margins: Nonoperating margins are an accumulation of all nonoperating
income reduced by nonoperating losses and operating losses as required by RUS regulations.
If a positive balance exists at year-end, it is transferred to patronage capital assignable.
Contributions in aid of construction: Contributions in aid of construction are credited to
the associated cost of construction of property units.
Postretirement benefits: Expenses related to postretirement benefits other than pensions
are reflected in administrative and general expenses and are funded currently.
Use of estimates: Management uses estimates and assumptions in preparing financial
statements in accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities, and the reported revenues and expenses. Actual results could vary from
the estimates that were assumed in preparing the financial statements.
NOTE B: ELECTRIC PLANT
Electric general and distribution plants are recorded at cost (direct labor, materials, freight and an
allocation of administrative salaries). General plant is recorded at cost and includes purchases in
excess of $250 with a life greater than one year. Depreciation is computed by the straight-line
method based upon composite rates as follows:
Generation plant 7.00% per annum
Distribution plant 3.48% per annum
General plant and equipment 2.00% to 20.00% per annum
Gains or losses on retirements of electric plant are credited or charged to accumulated
depreciation in accordance with regulatory requirements.
Electric plant consists of the following:
December 31,
1997 1996
Plant in Service
Generation plant $ 33,965,489 $ 32,117,891
Distribution plant 23,415,719 22,725,022
General plant and equipment 2,448,124 2,314,920
Plant held for future use 448,789 441,663
60,278,121 57,599,496
Construction work-in-progress 7,298,951 7,036,083
67,577,072 64,635,579
Less accumulated depreciation (35,233,499) (32,094,249)
$ 32,343,573 $ 32,541,330
Interest on borrowings for construction projects is capitalized during the construction phase of
the projects. Capitalized interest for the years ended December 31, 1997 and 1996 was $105,870
and $91,120, respectively.
NOTEC: INVESTMENTS IN AND TRANSACTIONS WITH ASSOCIATED
ORGANIZATIONS
Investment in associated organizations consist of the following:
December 31,
1997 1996
National Rural Utilities Cooperative Finance Corporation $ 565,131 $ 565,131
ARECA Insurance Exchange 1,626,272 1,610,809
Other 14,256 18,340
$ 2,205,659 $ 2,194,280
The Cooperative purchased insurance coverage during the years ended December 31, 1997 and
1996 from the ARECA Insurance Exchange, in the amount of $567,414 and $559,050,
respectively.
The Cooperative accounts for its investment in ARECA Insurance Exchange using the equity
method. All other investments are recorded at cost.
NOTE D: CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following:
December 31,
1997 1996
Cash in checking accounts $ 2,769,077 $ 330,655
National Rural Utilities Capital Term Certificates 15,073.327 16,824,099
$17,842,404 $17,154,754
NOTEE: DEFERRED DEBITS
Deferred debits consists of the following:
December 31,
1997 1996
Preliminary Nightmute deffered costs $ 115,374 $ -
Deferred preliminary survey and investigation 132,648
Miscellaneous deferred 5,032
$ 253,054 $ -
NOTE F: LONG-TERM DEBT
Long-term debt consists of 2% and 5% mortgage notes payable to RUS:
Debt outstanding at
December 31,
1997 1996
Final payment due nn a
March 2004 $ 303,181 $ 350,444
August 2004 405,516 463,288
June 2005 299,286 337,228
June 2006 406,282 451,102
January 2007 2,453,642 2,700,460
November 2009 2,346.855 2,522,227
May 2010 3,913,758 3,304,780
September 2012 5,342,341 5,657,152
September 2018 3,523,234 3,661,094
January 2022 4,402,709 4,552,020
May 2025 2,275,183 3,223,730
August 2025 7,018,904 5,224,000
May 2026 1,065,300 1,093,047
33,756,191 33,540,572
Less current maturities of long-term debt 1,656,000 1,505,000
$32,100,191 $32,035,572
10
Substantially all assets of the Cooperative are pledged as collateral for these notes. Interest only
is paid for two years following an advance of funds from RUS.
At December 31, 1997, the Cooperative has unadvanced RUS loan funds available in the amount
of $1,938,000.
Expected principal payments over the next five years are as follows:
1998 $1,535,000
1999 1,599,000
2000 1,651,000
2001 1,737,000
2002 1,722,000
The Cooperative is required to conform to several debt covenants mandated by RUS. Under the
most restrictive covenants, the Cooperative must maintain a prescribed level of insurance, key
financial ratios, and may not declare or pay dividends unless certain requirements are met. At
December 31, 1997, management believes the Cooperative was in compliance with all
covenants.
Under the provisions of the long-term debt agreements, until total equities equal or exceed 40%
of the total assets of the Cooperative, the return to patrons of capital contributed by them is
limited generally to 25% of the patronage capital or margins received by the Cooperative in the
preceding year.
The Cooperative has a $5 million line-of-credit available from National Rural Utilities
Cooperative Finance Corporation. As of December 31, 1997 no funds have been advanced on
the line-of-credit.
NOTE G: INCOME TAXES
The provision for income taxes includes federal and state income taxes currently payable and
those deferred or prepaid because of temporary differences between financial statement and tax
bases of assets and liabilities. Future income tax benefits represent temporary differences
relating to current assets and current liabilities, and deferred income taxes represent temporary
differences relating to noncurrent assets and liabilities. At December 31, 1997 there was an
income tax benefit of $13,600 which was fully allowed for at year end.
11
NOTE H: EMPLOYEE BENEFITS
Pension plan
All eligible employees of the Cooperative participate in the National Rural Electric Cooperative
Association Retirement and Security Program, a multi-employer defined benefit pension plan
(Plan) qualified under Section 401 and tax exempt pursuant to Section 501(a) of the Internal
Revenue Code. The Cooperative records and pays contributions to the Plan equal to the amounts
billed by the plan administrator. A moratorium on contributions has been in effect since July 1,
1987 and lifted periodically, due to reaching full funding limitations. In this multi-employer plan,
which is available to all member cooperatives of NRECA, the accumulated benefits and plan
assets are not determined or allocated by employer.
The Cooperative’s contributions to the Plan for pension plan service costs amount to
approximately $126,705 and $61,277 at December 31, 1997 and 1996, respectively. The
Cooperative has recorded the remaining liability in accordance with Financial Accounting
Standard Board and RUS requirements. Management intends to pay the entire amount during
periods when the NRECA moratorium is lifted.
Postretirement benefits other than pensions
Operating expense applicable to postretirement employee benefits other than pensions, included
in administrative and general expenses, was $126,705 and $61,277 for the years ended
December 31, 1997 and 1996, respectively.
The Cooperative participates in the NRECA multi-employer plan which is available to all
member cooperatives. All employees or former employees who have rendered services in the
credited service period are eligible for postretirement medical, dental and life insurance
programs.
NOTEI: DEFERRED CREDITS
Deferred credits consist of the following:
December 31,
1997 1996
Deferred meter installation $ 110,578 $ 94,345
Deferred transformer installation 75,952 67,948
$ 186,530 $ 162,293
12
NOTE J: COMMITMENTS AND CONTINGENCIES
Under the terms of legislation entitled Power Cost Equalization (PCE) enacted by the State of
Alaska, a portion of monthly member billings are paid by the state. In accordance with this
legislation, the Cooperative billed the state approximately $6,090,469 and $6,055,465 for the
years ended December 31, 1997 and 1996, respectively.
The PCE subsidy provides affordable electricity in rural Alaska. The PCE program is currently
funded by the Alaska legislature. PCE program reductions could effect the timely utility
payments of the Cooperative consumers and may effect long-term electricity usage.
The Clean Air Act of 1990 requires the addition of pollution control equipment and/or the
burning of cleaner fuels to reduce pollution. Due to the size of the Cooperatives operations, it is
management’s position that there will be no impact on operations.
The Cooperative is named as a potential responsible party at four operations locations. The
nature of operations creates the opportunity where potential environmental cleanup or impact
studies may occur. There is not adequate information available to establish cost or
responsibility.
The Cooperative intends to purchase the assets of Nightmute Electric Cooperative for a nominal
amount. The purchase is currently pending APUC approval and finalization of the purchase
terms.
The Cooperative, from time-to-time, may be a participant in legal proceedings related to the
conduct of its business. In the normal course of business, it also has various commitments and
contingent liabilities which are not reflected in the accompanying financial statements. In the
opinion of management, the financial position of the Cooperative will not be materially affected
by any current legal proceedings, commitments or contingent liabilities.
NOTE K: SUBSEQUENT EVENT
Effective March 2, 1998, the Board of Directors of Microgen Technologies, Inc., a wholly owned
subsidiary of Alaska Village Electric Cooperative, Inc., has elected to cease the operations of
Microgen.
ADDITIONAL CONSOLIDATING SCHEDULES
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. AND SUBSIDIARY
CONSOLIDATING SCHEDULE - BALANCE SHEET
DECEMBER 31, 1997
ASSETS AVEC Microgen Eliminations Consolidated
ELECTRIC PLANT
In service, at cost $ 60,277.032 $ 4,705 $ (3,616) $ 60,278,121
Construction work-in-progress 7.354.457 (55,506) 7.298.951
67,631,489 4,705 (59,122) 67,577,072
Less accumulated depreciation (35,233.264) (235) (35,233,499)
Total electric plant 32,398,225 4,470 (59,122) 32,343,573
INVESTMENTS IN ASSOCIATED ORGANIZATION 2,705,659 (500,000) 2,205,659
CURRENT ASSETS:
Cash and cash equivalents 17,395,409 446,995 17,842,404
Accounts receivable 3,554.878 2,854 (4,369) 3,553,363
Materials, fuel and supplies 4,497,783 4,497,783
Other current assets 379.461 379.461
Total current assets 25,827,531 449.849 (4,369) 26,273,011
DEFERRED DEBITS 253.054 253.054
TOTAL $ 61.184.469 $ 454.319 $ (563.491) $ 61.075.297
EQUITIES AND LIABILITIES
EQUITIES $ 26.522.626 §$ 432,022 $ (559.122) $ 26,395,526
LONG-TERM DEBT, less current maturities 32,100,191 32,100,191
COMMITMENTS AND CONTINGENCIES (Note J)
CURRENT LIABILITIES:
Current maturities of long-term debt 1,656.000 1,656,000
Accounts payable 262.178 11,192 (4,369) 269,001
Accrued expenses 455.344 11.105 466.449
Total current liabilities 2,373,522 22,297 (4,369) 2,391,450
LIABILITY FOR POSTRETIREMENT BENEFITS
OTHER THAN PENSIONS 1,600 1,600
DEFERRED CREDITS 186.530 186.530
TOTAL $ 61.184.469 $ 454.319 —$ (563.491) $ 61.075.297
See notes to financial statements.
14
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. AND SUBSIDIARY
CONSOLIDATING SCHEDULE - OPERATIONS
YEARS ENDED DECEMBER 31, 1997
AVEC Micorgen Eliminations Consolidated
OPERATING REVENUES $ 18,624,130 $ 116,019 $ (114,038) $ 18,626,111
OPERATING EXPENSES:
Cost of power generation 10,596,048 10,596,048
Depreciation 3,191,179 3,191,179
Administrative and general 2,114,908 183,997 (54,916) 2,243,989
Consumer accounts 504,342 504,342
Distribution 676,226 676,226
Payroll and gross receipt taxes 159,426 159,426
Other 39.942 39.942
17,282.071 183.997 (54.916) 17,411,152
Operating margins before interest expense 1,342,059 (67,978) (59,122) 1,214,959
INTEREST EXPENSE 748.124 748.124
Net operating margins 593.935 (67.978) (59,122) 466.835
NONOPERATING MARGINS:
Interest income 1,043,603 1,043,603
Other nonoperating income 93.040 93.040
1.136.643 - - 1,136,643
NET MARGINS $ 1.730.578 _$ (67.978) $ (59.122) $ 1.603.478
See notes to financial statements.
15
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC.
RATE SCHEDULES - EFFECTIVE AUG. 18, 1997
PERMANENT RATES
Doly 1947
“Sillivg
SMALL POWER- GS - 1 (1ST 700 KWH
‘includes 15% PCE REDUCTION
SMALL POWER- GS - 1 (OVER 700 KWH
TOTAL RATE TOTAL RATE
VILLAGE Z PER KWH = PER KWH Rate Per Costof RCC PCE uP TO W/O PCE Rate Per Costof RCC | PCE KWH FUEL Rate 700KWH = 700 KWH KWH FUEL Rate 700 KWH
(A) (B) (C) (D) (A+B+C-D) (A+B+C) (A) (B) (C) (D) (A+B+C-D) (A+B+C) [ALAKANUK 0.32 [0.0859] 0 0.2132 | _0.1927 0.4059 0.22 [0.0859[ 0 0.1793 0.1266 0.3059 [AMBLER 0.32 [0.1556| 0 0.2695 |__0.2061 0.4756 0.22 [0.1556] 0 0.2385 0.1371 0.3756 ANVIK 0.32 |0.1206| 0 0.2412 | _0.1994 0.4406 0.22 |0.1206| 0 0.1318 0.3406 [BREVIG MISSION 0.32 | 0.1038| 0 0.2276 |__0.1962 0.4238 0.22 |0.1038| 0 0.1283 0.3238 [CHEVAK 0.32 [0.1109[ 0 0.2334 | 0.1975 0.4309 0.22 [0.1109] 0 0.1304 0.3309 [EEK [0.32 [o.oss9| 0 0.2164 | 0.1935 0.4099 0.22 | 0.0899| 0 0.1272 0.3099 [ELIM 0.32 |0.1036[ 0 0.2275 | 0.1961 0.4236 0.22 [0.1036] 0 0.1293 0.3236 EMMONAK 0.32 |0.0865| 0 0.2137 | __0.1928 0.4065 0.22 | 0.0865] 0 0.1267 0.3065 GAMBELL 032 [o1194[ 0 0.2402 | 0.1992 0.4394 0.22 [0.1194] 0 0.1317 0.3394 [GOODNEWS BAY 0.32 [0.1398[ 0 0.2567 | _0.2031 0.4598 0.22 | 0.1398| 0 0.1347 0.3598 GRAYLING 0.32 |[0.1405| 0 0.2573 | __0.2032 0.4605 0.22 |0.1405| 0 0.1348 0.3605 [HOLY CROSS 0.32_| 0.1001 0 0.2247 | 0.1954 0.4201 0.22 [0.1001] 0 0.1288 0.3201 [HOOPER BAY 0.32 _|0.0929[ 0 0.2189 | 0.1940 0.4129 0.22 |0.0929| 0 0.1277 0.3129 HUSLIA 0.32 |0.1032| 0 0.2271 | 0.1961 0.4232 0.22 [0.1032] 0 0.1292 0.3232 KALTAG 0.32 [0.1164[ 0 0.2378 | 0.1986 0.4364 0.22 [0.1164] 0 0.1312 0.3364 IKIANA 0.32 [0.1360[ 0 0.2536 | _0.2024 0.4560 0.22 |0.1360| 0 0.1341 0.3560, KIVALINA 0.32 | 0.0846| 0 0.2122 | 0.1924 0.4046 0.22 |0.0846| 0 0.1264 0.3046 KOYUK 0.32 | 0.0893[ 0 0.2159 | 0.1934 0.4093 0.22 |0.0893| 0 0.1274 0.3093 UPPER KALSKAG 0.32 | 0.0911 0 0.2173 | _0.1938 0.4111 0.22 [0.0911] 0 0.1274 0.3111
MARSHALL 0.32 | 0.0825[ 0 0.2105 | 0.1920 0.4025 0.22 | 0.0825| 0 0.1261 0.3025 MEKORYUK 0.32 |0.0789{ 0 0.2076 | _0.1913 0.3989 0.22 |0.0789| 0 0.1256 0.2989 MINTO 0.32 | 0.0806{ 0 0.2089 | 0.1917 0.4006 0.22 |0.0806| 0 0.1258 0.3006
MT. VILLAGE 0.32 | 0.0089| 0 0.1510 | _0.1779 0.3289 0.22 [0.0089| 0 0.1154 0.2289
NEW STUYAHOK 0.32 _[0.1223[ 0 0.2426 | 0.1997 0.4423, 0.22 [0.1223] 0 0.1321 0.3423
NOATAK 0.32 [0.1065| 0 0.2298 | 0.1967 0.4265 0.22 [0.1065] 0 0.1297 0.3265
NOORVIK 0.32 |0.1332[ 0 0.2513 | 0.2019 0.4532 0.22 | 0.1332] 0 0.1337 0.3532
NULATO 0.32 |0.0859| 0 0.2132 | 0.1927 0.4059 0.22 [0.0859| 0 0.1266 0.3059
NUNAPITCHUKIKASIG| 0.32_|0.0755| 0 0.2048 | _0.1907 0.3955 0.22 |0.0755| 0 0.4251 0.2955
OLD HARBOR 0.32 [0.1015| 0 0.2258 | 0.1957 0.4215 0.22 [0.1015] 0 0.1290 0.3215
PILOT STATION 0.32_| 0.1001 0 0.2247 | 0.1954 0.4201 0.22 [0.1001] 0 0.1288 0.3201
QUINHAGAK 0.32 [0.1135| 0 0.2355 | _0.1981 0.4335 0.22 [0.1135] 0 0.1308 0.3335
[RUSSIAN MISSION 0.32 |0.0929{ 0 0.2189 | 0.1940 0.4129 0.22 | 0.0929] 0 0.1277 0.3129
ST MARY'S/ADREFIPIT| 0.32 _| 0.0891 0 0.2157 | 0.1934 0.4091 0.22 [0.0891] 0 0.4274 0.3091
SAINT MICHAEL 0.32 [0.0942 0 0.2199 | 0.1943 0.4142 0.22 [0.0942] 0 0.1279 0.3142
SAVOONGA 0.32 |0.0986| 0 0.2235 | 0.1951 0.4186 0.22 |o.0986| 0 0.1285 0.3186
‘SCAMMON BAY 0.32 _| 0.0831 0 0.2109 | 0.1922 0.4031 0.22 | 0.0831] 0 0.1262 0.3031
SELAWIK 0.32 |0.1697{ 0 0.2808 | 0.2089 0.4897 0.22 |o1697| 0 0.1392 0.3897
SHAGELUK 0.32 |0.1630| 0 0.2754 | 0.2076 0.4830 0.22 | 0.1630] 0 0.4382 0.3830
SHAKTOOLIK 0.32 |0.0930{ 0 0.2189 | 0.1941 0.4130 0.22 | 0.0930| 0 0.1277 0.3130
SHISHMAREF 0.32 |0.1078| 0 0.2309 | _0.1969 0.4278 0.22 |0.1078| 0 0.1299 0.3278
SHUNGNAK 0.32 |0.1546| 0 0.2687 | 0.2059 0.4746 0.22 |0.1546[ 0 0.1369 0.3746
STEBBINS 0.32_| 0.0931 0 0.2190 | 0.1941 0.4131 0.22 |0.0931| 0 0.1277 0.3131
TOGIAK 0.32 |0.1137| 0 0.2356 | _0.1981 0.4337 0.22 |0.1137| 0 0.1308 0.3337
TOKSOOK BAY 0.32 [0.1080[ 0 0.2310 | 0.1970 0.4280, 0.22 |0.1080| 0 0.1299 0.3280
0.0973| 0 0.2224 |__0.1949 0.4173, 0.22 |0.0973| 0 0.1283 0.3173
0.1138] 0 0.2357 | _0.1981 0.4338 0.22 [0.1138] 0 0.1308 0.3338
NOTES: = 700 KWH limit per month / consumer / location
- Federal and State facilities excluding schools, are not eligible for PCE
- Higher usage permitted to community facilities, based on population.
prmnorce. wot iy -INCLUDE $5 MONTHLY CUSTOMER CHARGE
C:\QPV\NEWRATES.WB2 09: 19:16 08/18/97
Joly 1997
ALASKA VILLAGE ELECTRIC COOPERATIVE, INC. 4 . | | ; 1
RATE SCHEDULES - EFFECTIVE AUGUST 18, 1997 ’ '
PERMANENT RATES *INCLUDES 15% PCE REDUCTION
LARGE POWER - GS-2 (FIRST 1500 KWH) LARGE POWER GS-2 (OVER 1500 KWH)
(A demand charge of $45/KW will be assessed to all large power users when applicable)
PER KWH PER KWH PER KWH
VILLAGE ite Per Costof RCC PCE UP TO 701-1500 ite Per Costof RCC PCE OVER
KWH FUEL Rate 700 KWH KWH KWH FUEL Rate 1500 KWH
(A) (B) (c) (D) (A+B+C-D) __(A+B+C) (B) (Cc) {D) (A+B+C-D) [ALAKANUK 0.14 [0.0859 0 0.1113 | _ 0.1146 0.2259 0.0859| 0 0.0000 0.1459
AMBLER 0.14 | 0.1556 0 0.1705, 0.1251 0.2956 0.1556 0 0.0000 0.2156
ANVIK 0.14 | 0.1206 0 0.1408 0.1198 0.2606 0.1206 0 0.0000 0.1806
|BREVIG MISSION 0.14 | 0.1038 0 0.1265 0.1173 0.2438 0.1038 Q 0.0000 0.1638 [CHEVAK 0.14 [0.1109; 0 0.1325 | _ 0.1184 0.2509 0.1109; 0 | 0.0000 0.1709
|EEK 0.14 | 0.0899 0 0.1147 0.1152 0.2299 0.0899 0 0.0000 0.1499
|ELIM 0.14 | 0.1036 0 0.1263 0.1173, 0.2436 0.1036 oO 0.0000 0.1636
EMMONAK 0.14 | 0.0865 0 0.1118 0.1147 0.2265 0.0865 oO 0.0000 0.1465
|GAMBELL 0.14 | 0.1194 0 0.1397 0.1197 0.2594 0.1194 0 0.0000 0.1734
GOODNEWS BAY 0.14 | 0.1398 0 0.1571 0.1227 0.2798 0.1398 0 0.0000 0.1998
GRAYLING 0.14 | 0.1405 0 0.1577 0.1228 0.2805 0.1405 0 0.0000 0.2005
HOLY CROSS 0.14 | 0.1001 0 0.1233 0.1168 0.2401 0.1001 0 0.0000 0.1601
|HOOPER BAY 0.14 | 0.0929 0 0.1172 0.1157 0.2329 0.0929 0 0.0000 0.1529
HUSLIA 0.14 | 0.1032 0 0.1260 0.1172 0.2432 0.1032 0 0.0000 0.1632
[KALTAG 0.14 | 0.1164 0 0.1372 0.1192 0.2564 0.1164 0 0.0000 0.1764
|KIANA 0.14 | 0.1360 0 0.1539 0.1222 0.2760 0.1360 0 0.0000 0.1960
LKIVALINA 0.14 | 0.0846 0 0.1102 0.1144 0.2246 0.0846 0 0.0000 0.1446
[KOYUK 0.14 | 0.0893 0 0.1142 0.1151 0.2293 0.0893 0 0.0000 0.1493
\UPPER KALSKAG 0.14 | 0.0911 0 0.1157 0.1154 0.2311 0.0911 0 0.0000 0.1511
|MARSHALL 0.14 | 0.0825 0 0.1084 0.1141 0.2225 0.0825 0 0.0000 0.1425
|MEKORYUK 0.14 | 0.0789 0 0.1053, 0.1136 0.2189 0.0789 0 0.0000 0.1389
MINTO 0.14 | 0.0806 0 0.1068 0.1138 0.2206 0.0806 0 0.0000 0.1406
MT. VILLAGE 0.14 | 0.0089 0 0.0458 0.1031 0.1489 0.0089 0 0.0000 0.0689
NEW STUYAHOK 0.14 | 0.1223 0 0.1422 0.1201 0.2623 0.1223 0 0.0000 0.1823
NOATAK 0.14 | 0.1065 0 0.1288 0.1177 0.2465 0.1065 0 0.0000 0.1665
NOORVIK 0.14 | 0.1332 0 0.1515, 0.1217 0.2732 0.1332 0 0.0000 0.1932
[NULATO 0.14 | 0.0859 0 0.1113 0.1146 0.2259 0.0859 0 0.0000 0.1459
INUNAPITCHUKI/KASIG| 0.14 | 0.0755 0 0.1024 0.1131 0.2155 0.0755 0 0.0000 0.1355, [OLD HARBOR 0.14 | 0.1015 0 0.1245 | _0.1170 0.2415, 0.1015] 0 0.0000 0.1615
'PILOT STATION 0.14 | 0.10014 o 0.1233, 0.1168 0.2401 0.1001 oO 0.0000 0.1601
[QUINHAGAK 0.14 | 0.1135 oO 0.1347, 0.1188 0.2535 0.1135 oO 0.0000 0.1735,
\RUSSIAN MISSION 0.14 | 0.0929 0 0.1172 0.1157 0.2329 0.0929 oO 0.0000 0.1529
[STMARY'S/ADREF/PIT| 0.14 | 0.0891 0 0.1140 | 0.1151 0.2291 0.0891[ 0 0.0000 0.1491
[SAINT MICHAEL 0.14 | 0.0942 0 0.1183 0.1159 0.2342 0.0942 0 0.0000 0.1542
SAVOONGA 0.14 | 0.0986 0 0.1221 0.1165 0.2386 0.0986 0 0.0000 0.1586
SCAMMON BAY 0.14 | 0.0831 0 0.1089 0.1142 0.2231 0.0831 oO 0.0000 0.1431 [SELAWIK 0.14 [0.1697] 0 0.1825 | _0.1272 0.3097 0.1697| 0 0.0000 0.2297
SHAGELUK 0.14 | 0.1630 0 0.1768 0.1262 0.3030 0.1630 0 0.0000 0.2230
.SHAKTOOLIK 0.14 | 0.0930 0 0.1173 0.1157 0.2330 0.0930 0 0.0000 0.1530
.SHISHMAREF 0.14 | 0.1078 0 0.1299 0.1179 0.2478 0.1078 0 0.0000 0.1678 SHUNGNAK 0.14 [0.1546| 0 0.1697 | __0.1249 0.2946 0.1546| 0 0.0000 0.2146
[STEBBINS 0.14 | 0.0931 0 0.1174 0.1157, 0.2331 0.0931 oO 0.0000 0.1531
TOGIAK 0.14 | 0.1137 0 0.1349 0.1188 0.2537 0.1137 0 0.0000 0.1737
TOKSOOK BAY 0.14 | 0.1080 0 0.1301 0.1180 0.2480 0.1080 oO 0.0000 0.1680
TUNUNAK 0.14 | 0.0973 0 0.1210 0.1163 0.2373 0.0973 0 0.0000 0.1573
WALES 0.14 | 0.1138 0 0.1350 0.1188 0.2538 0.1138 0 0.0000 0.1738
NOTES: - 700 KWH limit per month / consumer / location
- Federal and State facilities excluding schools, are not eligible for PCE
- Higher usage permitted to community facilities, based on population.
= KW demand charge based upon high demand during the month or
85% of highest demand (rachet) during past 12 months whichever is higher
-include $45 MONTHLY CUSTOMER CHARGE
AAA RIAARIEAIO ATED IAI 0.99 46 NAOT