Time Item Subject Page Info Action - GVEA

GVEA Board of Directors *REVISED* Meeting Agenda – May 25, 2021

Click here to join the meeting (833) 851-7240 (Toll-free)

Conference ID: 498 114 442#

NOTE: Items formatted in bold and underline will be taken up exactly at that time, whether or not they interrupt pending business. Other times are approximate.

MISSION

Recognizing GVEA’s importance to the economic, environmental and social viability of our communities, the Cooperative’s mission is to safely provide its member-owners with reliable electric

service, quality customer service and innovative energy solutions at fair and reasonable prices.

Time Item Subject Page Info Action 4:30 p.m.

1. Call to Order

X

2. Executive Session NOTE: Actions resulting from the executive session will be taken up when regular session resumes.

• Hedging Status Update –White Paper (Abbigail Dillard/Pete Sarauer)………………………………………………………………..

• Levelized COPA Status Update – White Paper (Abby Dillard/Daniel Heckman/Ron Woolf)………………………………..

• RCA/ERO Updates (Daniel Heckman/Dan Bishop/John Burns)... • Renewable RFI Update – White Paper (Naomi Knight)………… • COVID Update (Abby Dillard)………………………………………. • April 2021 Power Supply Report (Pete Sarauer)…………………. • Attorneys’ Reports (John Burns)…………………………………….

3-9 10-13 14-18 19-25 26-27 28-29 30-38

X

6:30 pm.

3. Safety Moment (Rick Solie)

X

4. Education/Member Comments 4.1 Living on the Line – GVEA Lineworkers (Joshua Parsons)……… 4.2 EV Update – (Evan MacArthur or Dan Bishop)…………………… 4.3 Member Comments

39-56 57-70

X

5. Approval of the Agenda and Adoption of the Consent Agenda……………

1-2 X

6. Consent Agenda 6.1 Review the Safety Compliance Officer’s April 2021 Report……... 6.2 Approval the April 27, 2021 Regular Board Meeting Minutes………. 6.3 Review the First Quarter 2021 Board and CEO Expenses……… 6.4 Appoint MAC Members to Serve as 2021 Election Judges……… 6.5 Appoint Director Dave Messier to Observe the 2021 Election Count

71-79 80-85 86-93 94

X

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7. New Business 7.1 Grid Modernization/AMI Update (Keith Palchikoff)……………….. 7.2 Demand Charge (Daniel Heckman/Abby Dillard)………………….

95-110 111-123

X

8. Review of Ongoing Required Reports: (bold if report will be reviewed) • Alaska Power Association Report • ARECA Education Foundation Report • ARECA Insurance Exchange Report • ARCTEC Report • Calendar/Planning Wheel/Strategic Directives……………………. • Good¢ents Report • MAC Report • NRECA Director Advisor Group • NWPPA Report (DeLong)

• Scholarship Report

124-128

X

9. Management Reports • CEO Handouts/SNAP Summary Report……………….………….. • Financial Reports/Form 7……………………………………………. • Progress Reports……………………………….…………………….

129 130-189 190-225

10. Good of the Order/Director Comments……………………………………… • Agenda Items for Future Meetings

11. Adjournment

X .

Living on the Line – GVEA LineworkersMay 25, 2021

1

May 25, 2021 Board Meeting Materials 39

Josh Parsons, GVEA Lineman

2


Outages

3


4


5


6


Residential Members

7


8


9


10


Safety

11


12


13


14


15


16


What can you do to help your lineworkers?

• Keep ROWs Clear• Visible Home Address

• Keep Contact Information Updated• Call 811 Before You Dig

• Transfer Switch for Generators

17


Questions?

18


GVEA AND ELECTRIC VEHICLES

CURRENT EFFORTS AND FUTURE ENDEAVORS

GVEA Evan McArthurEnergy Efficiency EngineerMay 2021


Overview• Future of electric vehicles (EV) and GVEA

• Phase 1 – Reducing/removing barriers to EV growth• Phase 2 – Incentivize infrastructure upgrades• Phase 3 – Implement smart charging and grid-load management

• Current Efforts – Phase 1• AEA (VW settlement funds) applicant assistance• Campus EV charger• Railbelt stand-alone Direct Current Fast Charger (DCFC) rate• ReCharge Alaska Cantwell charger

2


Future of EV• The electric vehicle market is predicted to overtake

internal combustion engine sales by 2035• This change will affect the electric infrastructure of

utilities• Home Charging• DC Fast Charging (DCFC)• New Service installations

• Promoting EV adoption causes reduction in CO2emissions

3


Phase 1 – Removing Barriers (2021-2030)

• Establishing an EV DCFC specific rate• Mitigates demand charge risks

• Providing information to members• Location of current charging stations• Updates on general EV topics• Hosting EV events to introduce members, owners, and vendors

• Host a few low-cost public chargers• Allows members to interact with charging technology

• AEA VW settlement funds• Removes transportation barrier between Anchorage and Fairbanks

4


Phase 2 – Incentivize Upgrade Options (2025-2035)• Install public DCFCs along major highways

• Fairbanks, Nenana, Delta• Purchase level 2 chargers and rent them out to members• Electrify the GVEA fleet

• Demonstrate the effectiveness of EVs for work• Slowly electrify GVEA work vehicles as appropriate

• Offer rebate for purchasing EV• Mix needs-based and first come first serve rebates

• On-Bill Financing• GVEA incurs the cost, repaid through utility bill

5


Phase 3 – Grid-load Management

• Once enough EV chargers are installed GVEA can implement grid-load management• Use plugged in vehicles to load shave during peak hours• Offer reduced rates for off-peak charging• Using EVs as Battery Energy Storage Systems

6


Current Efforts• Campus EV charger• AEA (VW settlement funds) applicant assistance• Railbelt stand-alone Direct Current Fast Charger (DCFC)

rate• ReCharge Alaska Cantwell charger

7


GVEA Campus EV Install Project

• Install 2 DCFCs (~50 kW) in GVEA campus parking

• Install new transformer and service• Purpose of project

• Provide a service to our members• Show GVEA commitment to green

initiatives• Gain experience with a new technology• Adds link to charging corridor

8


Schedule & Budget

• Budget - $254,000• 2 DCFC

• Schedule – Working chargingstation by the end of August 2021

Siemens VersaCharge 50

9


Vendor InformationVendor Model Maximum

Power Rating

Number of cars

Payment Options OCPP

CompatibleChargePoint CPE250 50 kW 1 SPA, RFID OCPI

CPE250 62.5 kW 1 SPA, RFID OCPI

Siemens VSCULT50SAG

50 kW 1 SPA, RFID, CC

X

175kW Ultra 175 kW 1 SPA, RFID, CC

X

FLO SmartDC 50 kW 1 SPA, RFID OCPI

SmartDC 100 kW 1 SPA, RFID OCPI

Freewire Boost Charger

120 kW 1 CC, RFID, NFC

ABB Terra 54HV CJ

50 kW 1 CC X

Terra 124 CJ 124/60 kW 2 X

10


AEA (VW Settlement Funds)• AEA RFA 21107 Applications • Multiple applicants within GVEA service area• New Construction has provided the required letters from

applicant’s utility• Sites in Fairbanks and Healy included in applications

11


DCFC Rate• Railbelt utilities have agreed on a methodology for a new

EV specific rate• Volumetric rate based on load factor

• A draft letter (AM 913 Joint Filing) to the RCA has beensent to Railbelt utilities for review

• GVEA submitted comments at the end of April, finalcomments made in May

12


ReCharge Alaska Cantwell Charger• GVEA awarded a grant to ReCharge

Alaska• Install DCFC in Cantwell to assist in electrifying

Parks Hwy• ReCharge Alaska project update

• Order placed on Jan 29, expected arrival May 14

• Currently on schedule (finish 6/9/21)

13


Thank You

Questions?Comments?

14


SAFETY & TRAINING MONTHLY REPORTAPRIL 2021 RESULTS

Page 1 of 8

TRAINING ACTIVITY SUMMARY

Date Safety/Training Activity EXE

FIN

MS

PS ENG

OPS

Total Training Hours

1 Line Safety Meeting 1 11 6.02 IBEW Safety Meeting 1 3 2 17 11.55 Safety/Environmental Orientation Training 1 5 36.06 E-Shop Safety Meeting 16 8.07 SPCC, Universal Waste - ROWM 1 5 15.08 Line Safety Meeting 9 4.59 IBEW Safety Meeting 3 1 12 8.010 Contractor Safety Orientation (Maytec x 1) 1 0.512 Safety/Environmental Orientation Training 1 4 20.012 Safety/Environmental Orientation Training 2 6.0

12Safety/Environmental Orientation Training (TDL Temp) 1 0.4

13 E-Shop Safety Meeting 1 15 8.014 SPCC, Universal Waste - ROWM 1 4 7.515 Line Safety Meeting 1 10 5.516 IBEW Safety Meeting 1 3 1 12 8.516 Safety/Enviromental Orientation Training 1 1 3.419 ROWM Safety Meeting Reporting Accidents 1 15 4.020 E-Shop Safety Meeting 14 7.020 Healy Safety Committee Meeting 10 12.520 NPPP 2021 Arc Flash Training 7 28.021 NPPP 2021 Arc Flash Training 7 28.022 Line Safety Meeting 1 1 8 5.023 IBEW Safety Meeting 1 2 1 8 6.027 NPPP Job Briefing for Managers & Supervisors 6 9.027 E-Shop Safety Meeting 14 7.029 Line Safety Meeting 1 12 6.527 E-Shop Safety Meeting 1 3 1 11 8.0

30On-Line Training - Non-Bargaining, Dispatch, Meter Techs - Distracted Driving 10 33 25 30 26 9 59.9

30On-Line Training - Warehouse, Facilities - Portable Hand & Power Tools 9 6.8

30 On-Line Training - Wireman - Hearing Protection 14 10.5

30On-Line Training -Vehicle Shop - Machine Hazards and Safety 6 4.5

30On-Line Training - Lineman - OSHA 1910.269 Medical Services and Overhead Lines 11 11.0

30On-Line Training - NPPP - Hazardous Energy Control Procedures 22 16.5

7 29 13 136 52 143 37943 151 93 449 355 420 1467

100% 100% 100% 95% 77% 77% 92%

Total Employee Safety/Trng Hrs for April 2020 per DivisionYTD Total Hours (# of Attendees x Time Attended)Percent of Employee Participation for April 2020



Page 2 of 8

MONTH IN REVIEWROWM Safety Onboarding and Training was finished this month for the rest of the returning crews. Hearing tests were conducted for Healy, Vehicle shop, Warehouse, and Facility Maintenance employees.ARC Flash training was held for North Pole employees.Job briefing training started in April for Managers and Supervisors. Training will carry into May.Distracted Driving safety training was scheduled in April.

NEAR MISSES AND SAFETY OBSERVATIONS RECOGNITIONSee attached April 2021 Incident, Near Miss, Safety Observation Report

Definitions:Near Miss Incident – An unplanned event or condition that under slightly different circumstances could result in injury or property damage.Corrective Actions Recommended - Proposed on the Near Miss submission.Actions Taken - Any actions that were taken at the time of the Near Miss or Hazard Identification to correct the situation.Closed Near Miss Incident – Considered closed when actions are taken by the Supervisor to mitigate the hazard and those actions are reported back to the employee submitting the Near Miss report.Near Miss Incident Discussions – Near misses and their follow up are routinely discussed in safety meetings.Safety Notes - Follow up actions or observations.

Red – Unsafe condition or activity that can result in death, serious personal injury, property damage or loss.Yellow – Unsafe condition or activity that can result in moderate personal injury, property damage or loss.Green – Unsafe condition or activity that has low risk of personal injury, property damage or loss.

OCCUPATIONAL INJURY / ILLNESS REPORTS

Date 4/26/2021Healy Unit 2 Description –Employee injured left thumb while trying to connect a 4 inch hose

to a temporary de-watering ash tank set up for Healy unit 1 bottom ash. Employee slipped on wet ash, where 4 inch camlock tee, attached to the hose fell on the left hand causing injury.Actions Taken – Employee was seen and treated at local clinic. Full investigation was conducted with action items assigned to root causes. Lessons learned was developed and emailed all supervisor throughout GVEA with talking points for their employees of incident.

Recordable YesDART YesLost Time NO



Page 3 of 8

INJURY STATISTICS

0

1

2

3

4

5

6

7

8

9

10

Healy North Pole FBK Other FBK Lineman FBK ROW FBK Wireman Nenana Delta

3

1

0 0 0

1

0 0

1

0 0 0 0 0 0 0

YTD First Aid/Recordable Injury by Location BLUE = Non-OSHA Recordable Injury (Minor First Aid only)

ORANGE - Recordable

1

2 2

5

1 1

00

1

2

3

4

5

6

7

8

9

10

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Total

ALL OF GVEA INJURIESAll of GVEA First Aid All of GVEA Recordable All of GVEA Lost Time



Page 4 of 8

0 0 0 0 0 0 00

5

10


FAIRBANKS OTHER First Aid Recordable Lost Time

0 0 0 0 0 0 00

5

10


FBK LINEMANFirst Aid Recordable Lost Time



Page 5 of 8

0 0 0 0 0 0 00

5

10


FBK ROWFirst Aid Recordable Lost Time

0 0

1

0

1

0 00

5

10


FBK WIREMANFirst Aid Recordable Lost Time



Page 6 of 8

0

2

1

3

1 1

00

5

10


HEALYFirst Aid Recordable Lost Time

1

0 0 0

1

0

5

10


NORTH POLEFirst Aid Recordable Lost Time



Page 7 of 8

NEAR MISS / INJURY / ILLNESS INCIDENTS YEAR-TO-DATE

SAFETY EVENTS INJURIES / ILLNESSES

Period Incidents Near Miss

Safety Observations

Non-Recordable

First AidRecordable DART Lost

Time

April2021 1 2 5 2 1 1 0

YTD 2021 8 6 13 5 1 1 0

Last Year YTD as ofApril 2020

21 12 24 18 4 1 1

Reported injuries and illnesses are discussed in all regular safety meetings and reported out to all Supervisor with Near Miss/ Injury Notification form for Safety Talking points in staff meetings.

0 0 0 0 00

5

10


NENANAFirst Aid Recordable Lost Time



Page 8 of 8

Definitions:

A Recordable injury or illness is a work-related injury or illness requiring medical treatment greater than first aid as described below. You must consider an injury or illness as meeting the general recording criteria, and therefore to be recordable if it results in any of the following: death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, or loss of consciousness. You must also consider as meeting the general recording criteria if it involves a significant injury or illness diagnosed by a physician or other licensed health care professional, even if it does not result in death, days away from work, restricted work or job transfer, medical treatment beyond first aid, or loss of consciousness.

DART stands for Days Away, Restricted work or job Transfer. A work-related injury or illness resulting in one or more calendar days after the day of injury with work restrictions ordered by a medical professional for purposes of treatment. A DART case is also recordable.

A Lost Time injury or illness is a work-related injury or illness resulting in one or more calendar days after the day of injury when the employee is unable to work in any capacity as ordered by a medical professional for purposes of treatment. A lost time case is also DART and Recordable.

First Aid as defined in 29 CFR 1904.7(b)(5)(ii) includes:Using a non-prescription medication at non-prescription strength (for medications available in both prescription and non-prescription form, a recommendation by a physician or other licensed health care professional to use a non-prescription medication at prescription strength is considered medical treatment for recordkeeping purposes);Administering tetanus immunizations (other immunizations, such as Hepatitis B vaccine or rabies vaccine, are considered medical treatment); Cleaning, flushing or soaking wounds on the surface of the skin;Using wound coverings such as bandages, Band-Aids™, gauze pads, etc.; or using butterfly bandages or Steri-Strips™ (other wound closing devices such as sutures, staples, etc., are considered medical treatment); Using hot or cold therapy;Using any non-rigid means of support, such as elastic bandages, wraps, non-rigid back belts, etc. (devices with rigid stays or other systems designed to immobilize parts of the body are considered medical treatment for recordkeeping purposes);Using temporary immobilization devices while transporting an accident victim (e.g., splints, slings, neck collars, back boards, etc.).Drilling of a fingernail or toenail to relieve pressure, or draining fluid from a blister;Using eye patches;Removing foreign bodies from the eye using only irrigation or a cotton swab;Removing splinters or foreign material from areas other than the eye by irrigation, tweezers, cotton swabs or other simple means;Using finger guards;Using massages (physical therapy or chiropractic treatment are considered medical treatment for recordkeeping purposes); orDrinking fluids for relief of heat stress.


Type Level Date Division Location Description Corrective Actions Recommended Actions Taken Safety Notes

Near Miss RED 4/2/2021 PS Healy Unit 2 O2 analyzers, in the boiler, were left on when making entry into confined space. Hazard was identified only after bumping into analyzer. O2 analyzer was not part of the LOTO, temperature was 736°C.

Add O2 analyzers to LOTO template for entry into high temp air heater and investigate source of heat in sensors.

Assign plant operator to Add O2 sensors to boiler LOTO template.

Operations was inspecting super heats for cleaning and found an O2 sensor that was not on the LOTO. The O2 sensors get very hot, and the employee bumped it making the discovery the employee was not injured. Contractors working in the super heat in the past, were aware it was on, and when asked why they never mentioned it, they stated they knew not to touch it, and simply avoided it. The PCS was updated, and operations has updated the LOTO for the superheat to include the O2 sensor. VH

Safety Observation

GREEN 4/2/2021 PS Healy Unit 2 Per supervisors approval, lab tech turned on well pump #4, a pump that has not been used in several months. The effluent was being sent to the lab pump. The lab sump pump vents towards the east side of the plant where there was a lot of overhead door traffic, causing a strong chlorine smell throughout the plant.

Backflush line before putting well pump in service to ensure no residual chlorine is present.

Lab tech notified control room and supervisor blocked off entry to the lab until all odor was eliminated. Lab tech also notified surrounding personnel.

We did not have a gas leak from the lab, there was no leak in the injection system and that external flushing of the well should be completed before bringing it in house. Over all while very smelly, there was essentially at the least very minimal health risks. Full details in Vince's email on 4/5/21

Near Miss YELLOW 4/8/2021 PS NPPP Employee was walking into VFD building during a routine plant walkaround and slipped on a patch of ice.

Apply salt to the icy area. Employee applied to the icy area and reported the hazard area to the plant foreman and control room operator.

Safety Observation

GREEN 4/8/2021 PS NPPP LSR BoosteEmployee noticed 2 female Swagelok fittings on the fuel pump bleeder valves were broken, due to excessive vibration. The fittings are located down stream (zero pressure) of the isolation valves.

Remove fittings and replace with Swagelok pipe plugs

Work order written

Incident YELLOW 4/26/2021 PS Healy 2 Employee fractured thumb while manning the Dewatering tanks, they were trying to move a hose after the tank was replaced. Employee was attempting to hook up 4" tee, slipped in mud and the tee fitting fell with the weight of the employee onto left thumb.

Iced hand and continued to work. Employee was seen and treated at local clinic. Full investigation was conducted with action items assigned to root causes.

Employee went to the doctor next day after shift and is now on light duty. Lessons learned was developed and emailed all supervisor throughout GVEA with talking points for their employees of incident.

Safety Observation

YELLOW 4/28/2021 PS Healy Unit 2 During the day shift several area employees were observed to be working in the plant without safety glasses and/or hardhats. These employees were working with other individuals who were wearing safety glasses and/or hardhats. One area in particular was the reagent/chemical storage area. Multiple employees at multiple times throughout the day were seen without these PPE in this area.

Confirm hard hats and safety glasses are required in the reagent/chemical storage area. If this is a requirement.... then just reviewing this with the employees may not be enough, as this should be known to be a hardhat and safety glass area.

An email was sent to all Healy employees reminding them that hard hats and Safety glasses are required in the lab area, outside of the office portion. This includes to and from the Restroom at the base of the stairs leading to E&I. also in the Chem. Storage area in the ID fan bay. Safety glasses should ALWAYS be worn while doing any work near the caustic or acid skids, in the event of a leak.

Area was Identified just outside the lab area, and correct PPE includes hard had and safety glasses in this area. Safety Specialist sent out an email to all employees reminding them of the expectation of proper PPE in this area.

Safety Observation

YELLOW 4/28/2021 PS Healy Unit 2 Open hole (2' x 2') - the hole to the caustic storage containment sump was left unguarded (see attached photo). There was no flagging nor physical guarding to prevent unintentional access.

The area was not an established walkway, so potential traffic was minimal.

Following current regulations and company standards. Use flagging with tags to identify open holes. Use physical guarding as required by regulation when an open hole exists. Reinstall designed guards once work is completed. Do not leave open holes unguarded.

Followed up with immediate supervisor. And email was sent out by Healy Safety Specialist to all Healy employees reminding them to place flagging an appropriate distance from the open pits, and tag the flagging, The open hole was corrected by operations.

Healy Safety Specialist to all Healy employees reminding them to place flagging an appropriate distance from the open pits, and tag the flagging, The open hole was corrected by operations.

Safety Observation

YELLOW 4/29/2021 PS Healy Unit 2 Open hole (~ 2' x 2') - the access to the ash surge tank #1A area sump was left unguarded (see attached photo). There was flagging to warn of the open hole, but the flagging was practically up against the open hole (no buffer area if a slip or trip occurred near the flagging). Given the area was a moderate traffic area with significant trip hazards (hoses) in the walkways, tagging the flagging and providing a larger buffer area could be seen as a positive improvement.

Have the flagging at least 6' from the open hole (all the way around). In addition, tag the flagging with the date, hazard, name of who hung the flagging (just in case there are questions), and expected completion date. Reroute the hoses to minimize the tripping hazard potential. Flag the hoses as needed when they can not be relocated to minimize the hazard.Review open hole flagging and barricading with the crews.

Hazard was corrected by Operations. Healy Safety Specialist sent out an email to all Healy employees reminding them to place flagging an appropriate distance from the open pits, and tags are required on flagging.

Hazard was corrected by Operations. Healy Safety Specialist sent out an email to all Healy employees reminding them to place flagging an appropriate distance from the open pits, and tags are required on flagging.

April 2021 Incident Near Miss Safety Observation Report


GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. BOARD OF DIRECTORS’

MEETING MINUTES

April 27, 2021 Fairbanks, Alaska

1

The Regular Meeting of the Board of Directors of Golden Valley Electric Association, Inc. was held on April 27, 2021. Due to COVID-19 and the need for social distancing, the meeting was held virtually via Microsoft Teams.

PRESENT Directors: Tom DeLong, Chairman; John Sloan, Vice Chairman; Dave Messier, Treasurer; Gary Newman, Secretary; Chris Bunch, Rick Solie and Brad Benson.

Staff: John Burns, President & CEO; Ron Woolf, Chief Financial Officer; Naomi Morton Knight, Acting Director of Engineering Services; Josh Davis, Director of Operations; Abbigail Dillard, Acting Director of Member Services; Reagan Russell, Director of Human Resources; Sarah Villalon, Controller; Dean Ojala, Safety Compliance Officer; Meadow Bailey, Director of External Affairs/Public Relations; Kathy Mattila, Senior Accountant and Susan Redlin, Executive Administrative Assistant.

Members: District 2: Cathy Walling and Richard Theilmann.

District 4: James Schwarber and Ben Loeffler.

District 7: Todd Adams, Julia Hnilicka and Kirk Martakis.

Consultant: Ivan Moore, Alaska Survey Research.

CALL TO ORDER Chairman DeLong called the meeting to order at 3:30 p.m.

EXECUTIVE SESSION At 3:31 p.m., without objection, the board convened into executive session to discuss personnel issues (CEO Contract), the immediate knowledge of which could have adverse impacts on GVEA.

At 4:10 p.m. Mr. Burns joined the meeting.

At 4:30 p.m., without objection, the board came out of executive session.

EXECUTIVE SESSION At 4:32 p.m., without objection, the board re-convened into executive session with select invited staff to discuss personnel, legal and financial issues (2021 Employee Survey; Form 12; COVID Update; Pension Plan Administrative Committee; March 2021 Power Supply Report and



MEETING MINUTES


2

EXECUTIVE SESSION (Continued)

Attorney Reports), the immediate knowledge of which could have adverse impacts on GVEA.

Messrs. Davis, Moore and Woolf, and Mesdames. Bailey, Dillard, Knight, Mattila, Redlin, Russell, and Villalon joined the meeting.

At 5:15 p.m., Mr. Moore departed the meeting.

At 5:45 p.m., Ms. Mattila departed the meeting.

At 6:27 p.m., Mr. Newman moved to come out of executive session. Mr. Sloan seconded the motion. The motion passed.

BREAK Chairman DeLong declared a 3 minute break.

OPEN SESSION At 6:30 p.m., the board convened into open session; members and staff (Ojala and Strle) joined the meeting.

SAFETY MOMENT Messrs. Burns and DeLong shared spring driving safety tips. Mr. Bunch talked about bicycle safety.

EDUCATIONAL PRESENTATIONS

MEMBER COMMENTS

Carbon Reduction Update Presentation Ms. Knight gave a PowerPoint presentation entitled “Policy 7.6: Carbon Reduction Goals – Semi-Annual Update”. The board asked questions regarding the presentation, which Ms. Knight answered.

Quarterly Safety Report Presentation Mr. Ojala gave a PowerPoint presentation entitled “Quarterly Safety Report.” The board asked questions regarding the presentation, which Mr. Ojala answered.

Member Comments Mr. Schwarber thanked GVEA and the board for transitioning towards more renewable energy. He commented on a recent educational class he attended on air source heat pumps that GVEA co-sponsored with the Cold Climate Housing Research Center and Solarize Fairbanks. He encouraged the board to continue to expand renewables and said he looks forward to the upcoming Annual Meeting.

Mr. Martakis said he was impressed with the recent educational class on heat pumps. He also commented on a number of items: the current rate paid to SNAP producers; GVEA’s Request For Proposal for renewable energy projects; GVEA’s support for ReCharge Alaska; and



MEETING MINUTES


3

MEMBER COMMENTS (Continued)

MEMBER ADVISORY COMMITTEE (MAC) REPORT

the possibility of a future EV charging station on the GVEA campus in Fairbanks. MAC Report Mr. Loeffler reported on the April 14, 2021 MAC Meeting.

EXTEND THE MEETING

At 7:31 p.m., Mr. Newman moved to extend the meeting for up to one hour. Mr. Messier seconded the motion. The motion passed.

APPROVAL OF THE AGENDA AND ADOPTION OF THE CONSENT AGENDA

Chairman DeLong requested to removed Item 7.4 (CEO Contract) from the Agenda and Mr. Sloan asked that an Alaska Power Association Report be added to Item 9 (On-Going Reports) on the Agenda.

Mr. Newman moved to approve the amended Agenda and adopt the Consent Agenda. Mr. Sloan seconded the motion. The motion passed.

The Consent Agenda included:

Approval of the March 16, 2021 Special Board Meeting Minutes. Approval of the March 22, 2021 Regular Board Meeting Minutes. Review of the Safety Compliance Officer’s March 2021 Report. Approval of Resolution No. 107-21: Authorizing Association

Right-of-Way Agents to Sign Right-of Way Permit Applications and Other Land-Related Application Documents.

Approval of Resolution No. 108-21: Authorizing GVEA’s President & CEO and Director of Engineering to Sign Rights-of-Way Leases, Permits, Easements and Other Land-Related Documents on Behalf of GVEA.

FAR COMMITTEE RECOMMENDATIONS: APPROVAL OF RESOLUTION NO. 104-21: ACCEPTING THE 2020 AUDIT OF THE ASSOCIATION’S FINANCIAL STATEMENTS AND RELATED RECORDS

As Chairman of the Finance, Audit & Rate (FAR) Committee, Mr. Messier moved to approve Resolution No. 104-21: Accepting the 2020 Audit of the Association’s Financial Statements and Related Records:

BE IT RESOLVED by the Board of Directors of Golden Valley Electric Association, Inc. that the audit of the Association’s Financial Statements and associated records for calendar year 2020 made by BDO USA, LLP, Certified Public Accountants, having duly been reviewed and recommended by the Finance, Audit and Rate Committee, is hereby accepted and ordered transmitted to the Rural Utilities Service, Co-Bank, Key Bank, National Rural Utilities Cooperative Finance Corporation and the Regulatory Commission of Alaska. The motion passed.



MEETING MINUTES


4

APPROVAL OF RESOLUTION NO: 105-21: ALLOCATING 2020 MARGINS

Chairman DeLong introduced Resolution No. 105-21: Allocating 2020 Margins: WHEREAS, Golden Valley Electric Association, Inc. (Association) desires to allocate 2020 Margins in the amount of $17,855,279 to members as required by the Internal Revenue Code for 501(c)(12) tax status; and WHEREAS, the Board of Directors pursuant to the Association Bylaws is directed to allocate capital credits and to distinguish between Operating Margins and Non-Operating Margins; and WHEREAS, the Board of Directors has reviewed for 2020 the Association’s financial position, results of operations, financial statements and the audit report of the Association’s auditors; and

THEREFORE, BE IT RESOLVED, by the Board of Directors of the Association, to allocate all of the 2020 Operating Margins in the amount of $13,938,061 to Association members on a patronage basis; and

BE IT RESOLVED, to allocate a portion of the 2020 Non-Operating

Margins of $975,905 which represents Margins allocated to GVEA from related organizations to Association members on a patronage basis; and

BE IT RESOLVED, to allocate $2,941,313 representing the remaining

portion of 2020 Non-Operating Margins as Class B Patronage Capital.

Mr. Bunch moved to approved Resolution No. 105-21. Mr. Solie seconded the motion. Following discussion, the motion passed.

APPROVAL OF RESOLUTION NO. 106-21: CHANGING THE COMPOSITION OF THE ADMINISTRATIVE COMMITTEE FOR THE GVEA RETIREMENT PLAN

Chairman DeLong introduced Resolution No. 106-21: Changing the Composition of the Administrative Committee for the GVEA Retirement Plan:

WHEREAS, Section 3.6(b) of the Golden Valley Electric Association Retirement Plan (2018 Restatement), as amended by Amendment No. 1, (the “Plan”) provides that the Administrative Committee members shall be GVEA’s Chief Executive Officer, Chief Financial Officer, Vice-President & General Counsel, and such other members as may be appointed from time to time by GVEA; and

WHEREAS, there have been changes within GVEA’s management structure that have created a vacancy on the Administrative Committee; and

WHEREAS, the Board has received a recommendation from GVEA’s CEO & President, CFO and outside ERISA Counsel that the vacancy should be filled by GVEA’s Director of Human Resources; and



MEETING MINUTES


5

APPROVAL OF RESOLUTION NO. 106-21: CHANGING THE COMPOSITION OF THE ADMINISTRATIVE COMMITTEE FOR THE GVEA RETIREMENT PLAN (Continued)

WHEREAS, the Board believes that appointing the Director of Human Resources to fill the vacancy on the Administrative Committee is in the best interests of the Plan’s participants.

NOW THEREFORE BE IT HEREBY RESOLVED, that Section 3.6(b) of the Golden Valley Electric Association Retirement Plan (2018 Restatement), as amended by Amendment No. 1, is hereby amended to read as follows:

The Administrative Committee shall be GVEA’s Chief Executive Officer, Chief Financial Officer, and Director of Human Resources and such other members as may be appointed from time to time by GVEA. Those additional members need not be officers, directors or employees of GVEA.

Mr. Messier moved to approved Resolution No. 106-21. Mr. Benson seconded them motion. Following discussion, the motion passed.

ON-GOING REPORTS

ALASKA POWER ASSOCIATION (APA) REPORT – Mr. Sloan reported on APA efforts as relates to support of Senate Bill 110 and House Bill 29 which would protect Alaska Electric Utilities from liability for fire and other damage caused by vegetation outside of a utilities’ right-of-way contacting a utilities’ electric facilities.

MAC REPORT – Mr. Bunch reported on the April 14, 2021 MAC meeting.

SCHOLARSHIP AWARDS COMMITTEE REPORT – Mr. Solie reported on the Scholarship Committee’s recent meetings wherein the committee reviewed and scored 64 scholarship applications. The seven scholarship recipients will be announced at the May 6, 2021 Annual Members’ Meeting.

MANAGEMENT REPORTS

SNAP SUMMARY – The March 2021 SNAP Summary was included in the board packet. FINANCIAL REPORTS/FORM 7 – Financial reports and the draft March 31, 2021 Form 7 were included in the board packet. PROGRESS REPORTS – Progress reports were included in the board packet. 2021 ANNUAL MEMBERS’ MEETING – Ms. Bailey gave an update on the upcoming 2021 Annual Members’ Meeting.



MEETING MINUTES


6

DIRECTOR COMMENTS

Chairman DeLong commented on remarks he received from members thanking GVEA for co-sponsoring the recent educational classes that were held on air source heat pumps and solar PV systems.

Mr. Bunch’s comments related to the carbon reduction presentation and suggested that the board assist staff in identifying strategies to move GVEA’s carbon reduction goal forward.

Mr. Sloan shared his appreciation for staff and all they do.

Mr. Newman shared his thoughts on recent RCA meetings, commented on recent hearings on HB 29 and SB 110 and reported on the topics that were discussed at NRECA President Jim Matheson’s recent leadership town hall meeting. He also reported that he will be taking a rate making strategies class later in May 2021.

Mr. Solie reflected on his first year as a GVEA board member. He commended staff for their efforts to always provide the board with educational information to assist the board in its decision-making.

Mr. Messier thanked finance staff for their efforts on the 2020 audit; said that if any infrastructure funding is appropriated by Congress that Alaska utilities should be prepared to meet the opportunity. He also recognized Ms. Bailey and the Public Relations department for its efforts to increase member outreach.

Mr. Benson’s comments were related the member portal on GVEA’s external website. He said he particularly likes the usage notification alerts he receives when his electric usages increases. He also said he is excited about a future EV charging station in Fairbanks.

Chairman DeLong thanked the members in attendance for participating in the meeting.

ADJOURN At 8:16 p.m., Mr. Newman moved to adjourn the meeting. Mr. Bunch seconded the motion. The motion passed.

______________________________ _____________________________ Tom DeLong, Chairman Gary Newman, Secretary

______________________________ Susan Redlin, Recording Secretary


QUARTERLY EXPENSE FORM FOR DIRECTORS Brad Benson

EXPENSE RECAP FORFIRST QUARTER 2021

QUARTERLY TOTALYTD TOTAL

TOTAL EXPENSES FOR FIRST QUARTER 5,555.44 5,555.44

MEALS Out of

DATE PURPOSE OF TRIP Pdiem LODGING TRANSP FEES Internet Insurance MTG Town Fees TOTAL EXP MONTHLY TOTAL

JANUARY

01/13 MAC Meeting 240.00 240.0001/15 MTA Internet 99.99 99.9901/25 Board Meeting 480.00 480.00AT&T IPad 18.49 18.49Insurance 0.00

18.49 99.99 720.00838.48$

FEBRUARY

02/03-02/04 APA State Legislative Conference 250.00 D 480.00 730.0002/17-18 Board Retreat 800.00 800.0002/22 Board Meeting 480.00 480.0002/23 Legislative Mtgs w/Lebon, Myers, Kawasaki, Hopkins, Wool 240.00 240.0002/24 Legislative Mtgs w/Cronk, Thompson, Prax, Shower, Rauscher 240.00 240.002/15 MTA Internet 99.99 99.99AT&T IPad 18.49 18.49Insurance 0.00

268.49 99.99 2,240.002,608.48$

MARCH

3/16 Special Board Meeting 240.00 240.003/22 Board Meeting 480.00 480.003/23-24 2021 Direcctors Conference 550.00 D 480.00 1,030.003/31 Scholarship Committee Mtg 240.00 240.003/15 MTA Internet 99.99 99.99AT&T IPad 18.49 18.49Insurance 0.00

568.49 99.99 1,440.002,108.48$

299.97 0.00 4,400.00 0.00 5,555.44$

TOTALS 299.97 4,400.00

TOTAL FOR JANUARY

TOTAL FOR FEBRUARY

TOTAL FOR MARCH


QUARTERLY EXPENSE FORM FOR DIRECTORS Chris Bunch




MEALS Out of


JANUARY

01/12 Annual Mtg Committee Meeting 240.00 240.0001/20 FAR Committee Meeting 240.00 240.0001/25 Board Meeting 480.00 480.0001/17 ACS Internet 52.13 52.1302/28 AT&T Ipad D 0.0002/28 Insurance 0.00

0.00 52.13 960.001,012.13$

FEBRUARY

2/17-18 Board Retreat 800.00 800.002/22 Board Meeting 480.00 480.002/17 ACS Internet 52.13 52.132/28 AT&T Ipad D 0.002/28 Insurance 0.00

0.00 52.13 1,280.001,332.13$

MARCH

3/16 Special Board Meeting 240.00 240.003/22 Board Meeting 480.00 480.003/30 Annual Mtg Committee Meeting 240.00 240.003/17 ACS Internet 52.13 52.133/31 AT&T Ipad D 0.003/31 Insurance 0.00

0.00 52.13 960.001,012.13$

156.39 0.00 3,200.00 0.00 3,356.39$

TOTALS 156.39 3,200.00

TOTAL FOR JANUARY

TOTAL FOR FEBRUARY

TOTAL FOR MARCH


QUARTERLY EXPENSE FORM FOR THE PRESIDENT AND CHIEF EXECUTIVE OFFICER John Burns


QUARTERLY TOTAL YTD TOTAL

TOTAL EXPENSES FOR FIRST QUARTER 468.88 468.88

Meals Out of

DATE PURPOSE OF TRIP Pdiem LODGING TRANSP FEES MISC MTG Town Fees TOTAL EXP MONTHLY TOTAL

JANUARY

0.000.000.000.00

TOTAL FOR JANUARY 0.00 0.00 0.00 0.00 0.00

FEBRUARY

02/03-02/04 APA State Legislative Conference 250.00 250.000.000.000.00

250.00TOTAL FOR FEBRUARY 0.00 0.00 250.00

MARCH

03/24-03/25Travel to Healy for site visit - mileage reimbursement and Hotel 95.68 123.20 218.88

0.000.000.000.00

95.68 123.20TOTAL FOR MARCH 218.88

468.88


QUARTERLY EXPENSE FORM FOR DIRECTORS Tom DeLong




MEALS Out of


JANUARY

01/06 Mtg w/John 240.00 240.0001/12 ARCTEC Strategic Planning 240.00 240.00

01/20Pre BOD Mtg, FAR Comm Mtg, Nominating Comm Mtg 320.00 320.00

01/25 Board Meeting 480.00 480.0001/15 GCI Internet 99.99 99.991/31 AT&T Ipad D 0.001/31 Insurance 0.00

0.00 0.00 0.00 0.00 99.99 1,280.00 0.00 1,379.99$

FEBRUARY

02/03-02/04 APA State Legislative Conference 250.00 D 480.00 730.0002/02 APA Railbelt Issues Forum 240.00 240.0002/08 ARCTEC Board Meeting 240.00 240.0002/12 MAC Task Force Meeting 240.00 240.0002/17-18 Board Retreat 800.00 800.0002/19 PreBOD Mtg 240.00 240.0002/22 Board Meeting 480.00 480.0002/23 Legislaitve mtgs-Lebon, Myers, Kawasaki, Hopkins, Wool 240.00 240.0002/24 Legislaitve mtgs-Cronk, Thompson, Prax, Shower 240.00 240.0002/15 GCI Internet 99.99 99.992/28 AT&T Ipad D 0.002/28 Insurance 0.00

0.00 250.00 99.99 3,200.00 3,549.99$

MARCH

03/02-03/03Extra Mtg Fee Chair-Sen Bishop, RCA mtg, ARCTEC and Burns Mtg 240.00 240.00

3/16 Special Board Meeting 240.00 240.0003/17 Pre BOD Mtg 240.00 240.003/22 Board Meeting 480.00 480.00

0.003/31 AT&T Ipad D 0.003/31 Insurance 0.00

0.00 0.00 0.00 1,200.00 1,200.00$

199.98 0.00 4,480.00 0.00 6,129.98$

TOTALS 199.98 4,480.00

TOTAL FOR JANUARY

TOTAL FOR FEBRUARY

TOTAL FOR MARCH


QUARTERLY EXPENSE FORM FOR DIRECTORS David Messier




MEALS Out of


JANUARY

01/12 ARCTEC Strategic Planning Mtg 240.00 240.0001/20 FAR Committee Meeting 240.00 240.0001/25 Board Meeting 480.00 480.0001/30 Hughesnet Internet 139.99 139.991/31 AT&T Ipad D 0.001/31 Insurance 0.00

0.00 0.00 0.00 0.00 139.99 960.00 0.00 1,099.99$

FEBRUARY

02/03-02/04 APA State Legislative Conference 250.00 D 480.00 730.0002/08 ARCTEC Mtg 240.00 240.0002/17-18 Board Retreat 800.00 800.0002/22 Board Meeting 480.00 480.0002/23 Legislative Mtgs (LeBon, Myers, Kawasaki, Hopkins, Wool) 240.00 240.0002/24 Legislative Mtgs (Cronk, Thompson, Prax, Shower, Rauscher) 240.00 240.0002/28 Hughesnet Internet 139.99 139.992/28 AT&T Ipad D 0.002/28 Insurance 0.00

0.00 0.00 139.99 2,000.00 2,869.99$

MARCH

3/16 Special Board Meeting 240.00 240.003/22 Board Meeting 480.00 480.003/31 Hughesnet Internet 139.99 139.993/31 AT&T Ipad D 0.003/31 Insurance 0.00

0.00 139.99 720.00 859.99$

419.97 0.00 3,680.00 0.00 4,829.97$

TOTALS 419.97 3,680.00

TOTAL FOR JANUARY

TOTAL FOR FEBRUARY

TOTAL FOR MARCH


QUARTERLY EXPENSE FORM FOR DIRECTORS Gary Newman




MEALS Out of


JANUARY

01/12 Annual Mtg Committee 240.00 240.0001/25 Board Meeting 480.00 480.0001/20 GCI Internet 70.04 70.041/31 AT&T Ipad D 0.001/31 Insurance 0.00

0.00 0.00 0.00 0.00 70.04 720.00 0.00 790.04$

FEBRUARY

02/03-02/04 APA State Legislative Conference 250.00 D 480.00 730.0002/11 NRECA Director Advisory Group Mtg 240.00 240.0002/17-18 Board Retreat 800.00 800.0002/22 Board Meeting 480.00 480.0002/23 Mtg w/Legislators (Lebon, Myers, Kawasaki, Hopkins, Wool) 240.00 240.0002/24 Mtg w/Legislators (Cronk, Thompson, Prax, Shower, Rauscher) 240.00 240.0002/15 ACS Internet 69.00 69.002/28 AT&T Ipad D 0.002/28 Insurance 0.00

0.00 250.00 69.00 2,480.00 2,799.00$

MARCH

03/04-05NRECA Risk Oversight: Board Role in Risk Mgmt 559.00 D 480.00 1,039.00

3/10 MAC Mtg 240.00 240.003/16 Special Board Mtg 240.00 240.003/22 Board Meeting 480.00 480.0003/23-24 NRECA 2021 Directors Conf 550.00 D 480.00 1,030.003/31 Annual Mtg Committee 240.00 240.003/5 ACS Internet 69.00 69.003/31 AT&T Ipad D 0.003/31 Insurance 0.00

1,109.00 69.00 2,160.00 3,338.00$

208.04 0.00 5,360.00 0.00 6,927.04$

TOTALS 208.04 5,360.00

TOTAL FOR JANUARY

TOTAL FOR FEBRUARY

TOTAL FOR MARCH


QUARTERLY EXPENSE FORM FOR DIRECTORS John Sloan




MEALS Out of


JANUARY

01/20 FAR Committee Meeting 240.00 240.0001/25 Board Meeting 480.00 480.001/31 AT&T Ipad D 0.001/31 Insurance 0.00

0.00 0.00 0.00 0.00 720.00 0.00 720.00$

FEBRUARY

02/03-02/04 APA State Legislative Conference 250.00 D 560.00 810.0002/10 NWPPA Finance Committee Mtg 240.00 240.0002/16 APA Government Affairs Mtg 240.00 240.0002/17-18 Board Retreat 800.00 800.0002/22 Board Meeting 480.00 480.0002/23 Legislative Mtgs (LeBon, Myers, Kawaski, Hopkins, Wool) 240.00 240.0002/24 Legislative Mtgs (Cronk, Thompson, Prax, Shower, Rauscher) 240.00 240.002/28 AT&T Ipad D 0.002/28 Insurance 0.00

0.00 0.00 250.00 2,800.00 3,050.00$

MARCH

3/12 NWPPA Business Mtg 240.00 240.003/16 Special Board Meeting 240.00 240.003/22 Board Meeting 480.00 480.003/31 Scholarship Committee Mtg 240.00 240.003/31 AT&T Ipad D 0.003/31 Insurance 0.00

0.00 0.00 0.00 0.00 1,200.00 0.00 1,200.00$

0.00 0.00 4,720.00 0.00 4,970.00$

TOTALS 0.00 4,720.00

TOTAL FOR JANUARY

TOTAL FOR FEBRUARY

TOTAL FOR MARCH


QUARTERLY EXPENSE FORM FOR DIRECTORS Rick Solie




MEALS Out of


JANUARY

01/25 Board Meeting 480.00 480.0001/24 GCI Internet 80.97 80.9701/30 AT&T Ipad D 0.0001/30 Insurance 0.00

0.00 0.00 0.00 0.00 80.97 480.00 0.00 560.97$

FEBRUARY

02/17-18 Board Retreat 800.00 800.0002/22 Board Meeting 480.00 480.0002/23 Legislative Mtgs - LeBon, Myers, Kawasaki, Hopkins, Wool 240.00 240.0002/24 Legislative Mtgs - Cronk, Thompson, Prax, Shower, Rauscher 240.00 240.0002/15 GCI Internet 80.97 80.9701/30 AT&T Ipad D 0.0001/30 Insurance 0.00

0.00 0.00 0.00 80.97 1,760.00 1,840.97$

MARCH

3/16 Special Board Meeting 240.00 240.003/22 Board Meeting 480.00 480.003/31 Scholarship Committee Mtg 240.00 240.003/15 GCI Internet 80.97 80.971/30 AT&T Ipad D 0.001/30 Insurance 0.00

0.00 0.00 0.00 0.00 80.97 960.00 0.00 1,040.97$

404.85 0.00 3,200.00 0.00 3,442.91$

TOTALS 404.85 3,200.00

TOTAL FOR JANUARY

TOTAL FOR FEBRUARY

TOTAL FOR MARCH


GOLDEN VALLEY ELECTRIC ASSOCIATION, INC. Interoffice Memorandum

May 12, 2021

TO: John Burns, GVEA President/CEO

FROM: Meadow Bailey, Director of External Affairs and Public Relations

RE: Appointment of 2021 Election Judges

Please place on the board’s agenda the appointment of election judges for the counting of ballots for Districts 4 and 7. Individuals participating as election judges are:

• Harmony Tomaszewski• Benjamin Loefler• Terry Hinman• Anita Hartman• Korene Long• Dan Beck• Carol Colp• Richard Thielman

Judges will observe and assist Fosselman & Associates CPA with ballot counting, open envelopes, rule on question ballots, review reports and certify results. The ballot count will be Thursday, June 10, 2021, starting at 2 p.m. in the boardroom.

In accordance with GVEA COVID protocol, all involved with the ballot count will wear masks and will maintain a six‐foot social distance to the extent possible. Candidates will be provided a Teams link to virtually watch the process.


Grid Modernization RoadmapMay 25, 2021

Keith Palchikoff – Grid Modernization Manager


Overview - Vision• Enable Decision Assistance Technology

Provide quality tools for GVEA staff and Members to evaluate cost, environmental sustainability, energy options (choice) and grid resiliency.

• Support TransitionFrom GVEA centralized generation to centralized and distributed generation and load control / conservation.

• Foster AgilityAllow GVEA staff and Members to detect and respond to events, trends and opportunities.


Overview - Accomplishments

2016 – OMS Electrical model in GIS Work flow to keep OMS accurate Real time outage map on GVEA.com

2018 – MDM 2019 – Member Portal (including SNAP data)

2021 – AMI 2017 – Initial deployment 2018 – 98% conversion 2019 – 100% conversion 2020 – 15 minute data refresh


Overview - Opportunities•Data Science

•Modern Rates

•Distributed Generation, Energy Conservation and DemandResponse

•Utility Operation


Data Science – GVEA Applications

Data Sources and Systems

•Members

•GVEA Operations


Modern Rates – Recalibrate Costs

Better Alignment Between Costs Incurred and Costs Recovered*

* Residential and Small Commercial Rate ClassesMay 25, 2021 Board Meeting Materials 100

Modern Rates – Streamline and Accelerate Process

Deriving the inputs to the cost of service study for the previous rate case was a multi-year, labor and cost intensive project.

2016 Rate Case Load Profiling

0

10

20

30

40

50

60

70

80

90

100

110

120

130

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Hou

rly M

W D

eman

d

Residential Small Commercial Large Commercial Combined

Winter Peak Load Shape - Minus Large Industrial - January 28, 2015(Statistical sampling of 300 meters – effort to compile graph > two years) Back Then…


0

10

20

30

40

50

60

70

80

90

100

110

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Hou

rly M

W D

eman

d

Residential Small Commercial Large Commercial Combined

14 MWh

Winter Coincident Peak Load Shape - Minus Large Industrial - February 9, 2021(Results aggregated from 100% of meters - effort to compile graph < 1 day)

Modern Rates – Streamline and Accelerate Process

Easy access to AMI data should significantly reduce the time, labor and cost of a new rate case AND produce results that more accurately align utility costs and revenue.

…And Now


Modern Rates – Enhance Core Principles

Rate Types and Evaluation

Enhanced Principles

Core / Traditional Principles

Two Part Rate Three Part Rate

NRECA Business and Technology Report, March 2021May 25, 2021 Board Meeting Materials 103

Distributed Generation – SNAP and Virtual Net Metering

Figure - https://news.energysage.com/virtual-net-metering-what-is-it-how-does-it-work/

Community Solar Farms?

Figure - State of California Public Utility Commission

*

• Solar production is not physically connected to load -facilitates optimum / alternative siting of solar generation

• Would allow extending SNAP program to renters, multi-tenant residential complexes and commercial properties.

• Rate and Revenue Considerations?

Multi-Tenant Residential / Commercial Properties


https://news.energysage.com/virtual-net-metering-what-is-it-how-does-it-work/

Energy Conservation and Demand ResponseVoltage Optimization = 1% – 3% kWh Reduction*

2019 Residential Sales = 267,590,191 kWhCommercial < 1 MW = 328,809,687 kWh

Sum = 596,399,878 kWh x 1% = 5,964 MWh = $1.3 million / year≈ 2 MW Eva Creek Turbine (30% capacity factor) or 7 MW solar farm (10% capacity factor)

Ran

ge B

Ran

ge A

127 V

110 V Demand Response Range

*NRECA: mean 𝐹𝐶𝑉𝑅 =Δ𝐸

Δ𝑉= 0.8


Energy Conservation and Demand Response

• In Home DisplaysHigher Frequency Data

• Improved Software Tools for Members to Manage Usage Options for tracking natural gas and water usage

• Direct Load Control


Utility Operations - Business Processes

• Pre-paid Billing

• Consistent Bill Cycles

• Improved Accuracy in Planning Studies Construction Work Plans, Load Forecasting

• Improved Reporting Distributed Generation, Grid Reliability Analysis


Utility Operations – Distribution Network

• Advanced Distribution Management System (ADMS)

• Distributed Energy Resource Management System (DERMS)


Utility Operations - Transmission System

• Synchrophaser Data

• Railbelt Reliability


Conclusion

• Grid Modernization Vision Aligns with GVEA Core Principles

• Substantial Progress

• Future Initiatives – Future Opportunities


The Demand Charge & Ratchet May 25, 2021

Abby Dillard – Director of Member Services Daniel Heckman – Regulatory Analyst


What is a Demand Charge?

• A charge for electrical demand that occurs during eachbilling cycle

• Designed to cover actual costs of providing electricity• Measured in kilowatts (kW)• Determined by measuring member’s highest average rate

of energy use in any 15-minute period during the month

May 25, 2021 | Pg. 2May 25, 2021 Board Meeting Materials 112

• Only Large General and Industrial Service Members• Current GVEA Rates:

• Schedule GS-2 (Large General Service – Secondary): $22.27 kW• Schedule GS-P (Large General Service – Primary): $18.92 kW• Schedule GS-3 (Industrial Service): $30.06 kW

• Updated either through general rate case or the SRF process

Who Does the Demand Charge Apply To?

May 25, 2021 | Pg. 3

LargeCommercial(GS-2(S))(GS-2(P))May 25, 2021 Board Meeting Materials 113

Where Does it Come From?

•Provided for in Alaska Administrative Code: • An electric utility may recover demand costs through

rates as follows:• Each electric utility shall implement a three-part rate that includes a

customer charge, a demand charge, and an energy charge to at least all customers consuming in excess of 7,500 kilowatt-hours per month or with a maximum demand of 20 kilowatts per month for three consecutive months….

• Part of GVEA’s rate structure for decades


Why Do We Have a Demand Charge?

• Consistent with Alaska cost-of-service and ratemaking principles (3 AAC 48.540) & cost causer, cost payer

• Larger customers require more services from GVEA (i.e.additional generating capacity, substations, transmissionlines)

• Reduces subsidization between rate classes

| Pg. 5May 25, 2021May 25, 2021 Board Meeting Materials 115

The Demand Ratchet

• Applies to Large General and Industrial Service Members• GVEA’s tariff provides a minimum monthly demand charge of 70% of the member’s

highest monthly demand charge for the previous 12 months• Exception for qualifying seasonal summer customers• GVEA has obligation to serve – must be prepared to provide adequate generation to

all customers at all times• GVEA makes generational plans and load forecasts based on loads used by

members. Have to be prepared to serve the highest member loads, if and when needed

| Pg. 6May 25, 2021May 25, 2021 Board Meeting Materials 116

Demand Ratchet Example

| Pg. 7May 25, 2021

• Peak occurred in January• Demand Ratchet will continue to be billed at 70% of January’s peak

unless higher peak occurs or until 12 months have elapsed• Members can easily see their demand peak on the member portal


Seasonal Service

• Available only to GS-2 Members• Members who disconnect or substantially reduce load for at least 5

consecutive months each winter shall have their minimum monthlycharges reduced during this time to reflect the Member's seasonaldemand. For purposes of this Special Provision; Members shall electbetween: (i) the months of November through March or (ii) the monthsof November through April for their reduced load period.

• Currently Four Members• Two Large General Service – Secondary (November – April).

• Tourist Attractions (One in Fairbanks, One in Denali Area).• One Large General Service – Secondary (November – March).

• Restaurant in Denali Area.• One Large General Service – Primary (November – March).

• Business in Fairbanks Area.


Impact of Demand Charge to GVEA

• Demand Revenue (Dollars) – Per Revenue Summary (YTD 2021)

• $2,715,418 – Large General Service (Secondary)• $974,945 – Large General Service (Primary)• $7,324,468 – Industrial Service

• Demand Revenue (Dollars) – Per Revenue Summary (2020) • $11,316,213 – Large General Service (Secondary)• $3,979,538 – Large General Service (Primary)• $29,679,942 – Industrial Service

• Demand Revenue (Dollars) – Per Revenue Summary (2019)• $11,474,475 – Large General Service (Secondary)• $3,729,001 – Large General Service (Primary)• $25,244,158 – Industrial Service


Railbelt Utilities’ Demand Charges

22.27

7.70

44.53

21.98 21.63

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

$/kW

Comparing Large General Service Customers

GVEA MEA CEA (North) CEA (South) HEA


Railbelt Utilities’ Demand Charges

30.06

21.98

31.36

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

$/kW

Comparing Industrial Service Customers

GVEA CEA (South) HEA


Takeaways

• Demand Charges are eligible for change on a semi-annual basis or during a general rate case

• Demand Charge has been used by utilities for decades and is not unique to GVEA

• Demand Charges help keep residential rates lower and reduces subsidization between rate classes

• Demand Charges & Ratchet allows for predicable revenue flow

• GVEA monitors accounts and if there is a more beneficial rate structure available, GVEA notifies the member

• Members have control over their usage• GVEA has to be prepared to serve all member’s highest

usage at all timesMay 25, 2021 | Pg. 12


Questions?

