Loading...
HomeMy WebLinkAboutIntertie Newspaper-Magazine Clippings 1995 2 NUV-U9-9U “INU YOris Mil INSIDE PAGE 2 A win-win deal Safety Bear Buddy Indian transformer PAGE 3 Board viewpoint PAGE 4 *Do we have your number? Chugach is increasingly taking advantage of new technologies to provide better outage Teporting and other customer services. However, in order for these systems to work for you, Chugach needs to have your current phone number, Check the number we have printed on your bill. If it’s not right (or blank) please provide an updated number on the portion of the hill you return with your payment. *The regulatory cost charge reappears effective with October bills. This is the fee collected from customers of all regulated Alaska utilities (not just electric utilities) to Fund the operations of the Alaska Public Utilities Commission. The RCC adds 24 cents to the average bill for 750 kwh of residential service. * The retail and wholesale fuel surcharges decreased with October bills. The quarterly adjustment recovers the costs (both actual and anticipated) of fuel and purchased power expenses over and above the amounts recovered in the basic kilowatt-hour rate. The fuel adjustment can (and usually does) vary each quarter. The October decrease means that for the next three months the average monthly residential bill for 750 kwh of service will nu vw mv uvvl | | see News notes, page 2 | POA We 9Vt nernilw Chugach and Copper cvo 4910 revue : October @= ‘ Number 1414 Valley developing power sales agreement Chugach and Copper Valley Electric Association have been working out the details of a power sales agreement which would provide a firm, reliable source of economical electricity for CVEA customers well into the next century, Economical electric service is important to Copper Valley customers, who pay approximately twice as much for power as Railbelt Alaskans. The proposal would also benefit current retail and wholesale Chugach customers by spreading costs over a larger customer base. Still, before any power can flow from the Railbelt to the Copper River Basin, a transmission line must first be completed between Sutton and Glennallen, At the end of September, CVEA‘s plans to build a 138,000-volt transmission line to link its customers to the state’s major power grid were on hold while a panel appointed by Gov. Tony Knowles reviewed the project. In 1993, the Legislature authorized and appropriated $35 million to be used as a 2ero-interest, 50-year loan to CVEA to help construct the line. The Legislature also authorized the Alaska Industrial Development and Export Authority to issue up to $25 miilion in bonds to provide additional funding for the project. The legislation made the loan subject to an independent feasibility study of the project, which was completed in April 1994 for the Department of Community and Regional Affairs, Division of Energy. In July 1994, the DCRA Commissioner Railbelt power grid. found the project could be financed and was economically feasible. However, to date the loan has not been made. In May 1995, Gov. Tony Knowles appointed an Interagency Review Pane! to take another look at the feasibility study. The three-agency panel is comprised of the commissioners of DCRA and the Department of Natural Resources and the executive direcror of AIDEA. The NUV7U9-9U INU UOely Mit ‘nstad | Working on a win-win deai For the past year, Chugach’s Management team has been discussing how to provide electrical power to Copper Valley Electric Association in Glennallen. Today, Copper Valley has the highest unsubsidized retail electric rates in the state and does not receive any power cost equalization funds from the State. During the 1993 legislative session, Copper Valley was authorized to receive an interest-free $35 million loan to construct an intertie between the Railbelt electrical system and the Glennallen-Valdez network. Clearly, connecting Copper Valley to ny vw AW UUVI | Manager’s message neni roa Wn GUI the Railbelt grid will be a great benefit to their area, However, you may wonder what it does for Chugach customers. The easy answer is that we sell more power and spread costs over a greater number of kilowatt-hours; hence, the cost-burden per unit of output is less. A broader perspective would see greaver economic activity as a result of cheaper energy prices. More econornic activity contributes to the overall good of Alaska’s citizens. This is why this intertie project makes good sense. While Chugach and Copper Valley are in the final stages of consummating a cv0 4910 power sales agreement that would involve the construction of the intertie to Glennalien, the project still needs a final review. The governor has convened a group of knowledgeable people to take another look ar the viability of the project before the loan is made. Tam optimistic thst the governor will make the right decision and allow the project to proceed. Certainly, it cannot fail to contritsute favorably to Alaska's economy: Sra. Gynt News notes, continued from page 1 be $1.84 lower than it has been during the past quarter, * October is national cooperative month. Chugach is organized as an electri¢e cooperative, owned by its more than 50,000 members, There are approximately 1,000 electric cooperatives nationwide, As co-op | members. Chugach customers elect a { board of directors to set policy for the Manone = utility and share in any margins earned by the organization through the “capital credits” program, Remember, Outlet readers can earn $50 if they find their member number in the newsletter. Each month three member numbers are inserted into the copy. If you find a member number in brackets {} which matches the member number on your bill, call our service center at 563-7366. Chugach is one of several utilities participating in a statewide Safety Bear Buddy program. The prograrn lets kids in trouble know they can approach specially-marked, radio-equipped utility vehicles and ask for help. Utility employees will radio for assistance and stand by until the proper authorities arrive. The Safety Bear Buddy program started in 1989 and now has 33 companies statewide participating using special {76137} vehicles which are on the streets every day to help out kids, and sometimes adults. This past January an Anchorage People Mover bus driver helped two young children who had been locked out of their home, Children in trouble should think of safety first when looking for help. Stress these safety tips to your child: Safety Bear Buddy Bear S +o Bear , ~~ Buddy * Never dash across the street without looking for oncoming traffic. Obey traffic safety rules. Stop. Look left, tight, left and make sure it’s clear before crossing the street. Utility workers in the field or on the roadside may be in a potentially dangérous area. Be aware of your surroundings before approaching them. Be careful when you're in construction sites or around utility operations. Do not touch the utility truck. It may be attached to a high voltage line. Call the driver and wave your arms over your head to get their attention before approaching. . Always use common sense. It pays to be careful, especially during times of emergency. = Making a move Chugach crews, along with Revmolds Rigging and Lynden Transport, moved anew 58,000-pound transformer into the India: Substation in August. Tests had shoven the old transformer in the substation wes failing and it was necessary to replace it, Crews installed a mobile siubstirion ro provide electrical service whiie the transformer exchange took place. NUV-UY-¥o IHU USI AM = ALS OM; Power sales, continued from page 1 panel is reportedly nearing the end of its review. In the meantime, Chugach and Copper Valley have been working out the details of a contract to ensure a long-term, reliable source of reasonably-priced power for CVEA. Chugach was selected as the preferred provider for CVEA after a teview of power supply proposals submitted last year. Here are some of the points contained in the preliminary power sales agreement: *Chugech would supply all the power required by CVEA over and above the output of the Solomon Gulch hydroelectric project at Valdez. While CVEA is obligated by contract to take the output of the State-owned hydro facility, Solomon Gulch only provides about 60 percent of the power required by CVEA in an average year. Wholesale power from Chugach would be much cheaper than the supplemental power CVEA now produces with its diesel ! generators. *CVEA could buy as much power as it wants from Chugach, subject to the carrying capacity of the planned transmission line, j GUV] AFFALKS FAX NO, SU/ 268 49/8 P, 04 *A portion of the cost of the transmission line would be shared by Chugach and its other wholesale customers, Individual wholesale custorners would have the option to opt out of the shared costs of the line, but in so doing would also forfeit the savings {167106} realized by adding CVEA as another Chugach customer. *CVEA would have the option of becoming an “all-requirements” customer of Chugach’s at some point in the future. Under that arrangement, Solomon Gulch would be pooled with other Chugach generation resources and Chugach would plan for and instal! generation (if necessary) to meet all of Copper Valley's needs. *CVEA would be eligible to earn capital credits on its power purchases from Chugach. In the past two years Chugach has returned nearly $5 million in capital credits to its wholesale customers. Chugach is Alaska’s largest ee PIC ies a reNy Ms Pet COMPETITION! Everyone knows that competition is what gets consumers the best deal in their purchases whether it be groceries or airline tickets. What would happen to food prices if there was only one grocery store? What about elactric service? Presently, you have no choice but to buy your power from Chugach Electric Association if you live in the service area. There is little competition for your consumer dollar. Lacking that competition, your board of directors is the group of men and women who represent you, the ratepayer, ina “watchdog” capacity in the effort to keep rates down while providing safe, reliable power. Because our fuel is some of the least expensive in the country, Chugach rates are essentially the lowest in Alaska. However, they are only at about the national average. If there were retail competition, would these rates be lower? Are you teceiving the best VALUE from YOUR cooperative when you pay your electric bill? To answer these questions, Chugach has joined a group of 24 of the largest electric co-ops in one of the most extensive “benchmarking” efforts ever done. Benchmarking is a reliable way of measuring our performance against the best practices of other electric utilities. This study is being performed by a leading utilities j management consultant for NRECA, | the Nationa! Rural Electric Cooperative electric supplier, providing wholesale and economy energy power to utilities from Homer to Fairbanks and retail electric service to 65,000 metered locations from Anchorage to the northern Kenai Peninsula. Chugach owns and operaies three natural gas- fired power plants and one hydroelectric facility, and also takes power under contact from two additional hydro projects. a bee Association. It will give us detailed I information on where we are and where we need to improve in order 16 achieve the new joint staff-board goal of being at the top of all-electric co-ops | and investor-owned utilities in economic efficiency. Results and progress will be shared with you in future Outlets. COST SAVING MEASURE - Your board is working with management in many areas to lower costs and your rates. Recently Chugach was faced with two alternatives in the disposal of obsolete turbines at Beluga and at Bernice Lake. If we removed the units and disposed of them through surplus means, we would likely have expended numerous resources and expense in the disposal process. On the other hand, Chugach chose to advertise the retired units for sale, and ended up receiving $60,000 for the units, The buyer also agreed to remove the units: and be responsible for asbestos ! abatement. These innovative methods j benefit the cooperative and help keep your rates low. i As a result of this action, the IBEW Union has filed a grievance alleging violation of their Chugach labor contract. An arbitrator has been selected who may ultimately decide the issue. We'll keep you posted. Pay Ke CVEA is also a member-owned electric cooperative. It provides service to 3,000 metered locations serving approximately 8,000 people from Valdez north past Glennallen and west along the Glenn Highway. CVEA currently uses the Solomon Gulch project and aging diesel generators at Valdez and Glennallen to meet the demands of its customers.