GVEA 2005 deficit and Healy Experimental Coal Plant

While GVEA members should have received their ballots in the mail about giving away $300 million of assets, more things are happening. Homer Electric Association is working with AIDEA, the state agency owners of the experimental coal plant in Healy, to get the plant restarted. GVEA is in mediation with AIDEA over access to the site, built on GVEA land. More info is available at www.chena.org/gvea.

GVEA has some concerns about making sure they stay in the black this next year and next, as they let themselves lose money in 2005. The stated reason was they had to pay back in December 2005 a few million dollars to members when only 5.88% of their 8% rate increase was granted by the RCA. However, they didn't say is that 1) the 8% was only initially allowed to be collected on an interim and refundable basis, and 2) they were told to give back the money in July 2005 by the RCA. GVEA thus had 6 months to cover the difference, but chose instead to fight giving back to the members what was due them, thus lost money. Another loss in a 3 year period and that puts them at risk for increased interest rates on loans. More about this on the link above.

I certainly like having electricity and am willing to pay a fair rate, but as a member-owner, would like to hear more than just than the one way spin. This is why I encourage regular and effective two way communication between member-owners and their board members. I've set up a separate blog to encourage comments at gvea.blogspot.com