Golden Valley Electric Association

2005 Annual Report

PDF Icon 2005 Annual Report - PDF (2.7MB)

A Message from the President & CEO

"You're part of our co-op"

President & CEO Steve Haagenson
GVEA President & CEO Steve Haagenson

Golden Valley's Green Goals

In a few years, Golden Valley's fuel mix will look a bit different. In addition to our diverse fuel supply, made up of coal, oil, natural gas and hydroelectric power, we'll be adding more renewable power generation.

Last year, GVEA's Board of Directors adopted a green power pledge. The pledge, called a Renewable Portfolio Standard, calls for 10 percent of Golden Valley's peak load to come from renewable energy sources by 2007. That figure increases to 20 percent by 2014.

We anticipate peak load to be about 230 megawatts in 2007. Golden Valley plans to meet these goals through a variety of programs and initiatives:

  • Bradley Lake Hydroelectric Project
    GVEA owns a share of this project, located in the Kenai Peninsula, and since 1991, has been receiving a share of its output which equates to 20 MW.
  • Energy$ense conservation programs
    GVEA's Home$ense energy audit, and Builder$ense and Business$ense rebate programs contribute by encouraging members to install energy efficient measures. GVEA estimates a one megawatt reduction in energy needs annually due to these programs.
  • Small scale renewable power
    In 2005, GVEA launched the SNAP program. SNAP stands for Sustainable Natural Alternative Power. In the coming years, we anticipate connecting several local SNAP producers to our system.
  • Wind
    There's potential for wind generation in the Interior, particularly in the Healy area. Wind power on our system could be a reality by 2010.

What does it mean to be part of our co-op? The simplest answer is the consumers who receive service from Golden Valley Electric, own the business. In the co-op world, these consumers are called members-owners.

Electric co-ops are businesses "of, by and for" the people they serve and represent. Being a member-owner of GVEA means you, along with your neighbors, own the company and have a voice in the decisions made on your behalf. And that is one of the fundamental differences between your local electric cooperative and other energy providers.

Why is being locally owned and operated important to you? Because more and more, we hear of other companies closing their local offices and moving out of town or out of the country to save money. When that happens, their customers have to do business long distance, frequently talking to customer service representatives hundreds or thousands of miles away who don't know them, their families or even their communities.

Being part of our co-op also means GVEA works for its members, not for profits. While investor-owned utilities (IOUs) need to pay dividends to their stockholders, electric co-ops operate on a not-for-profit basis and work to keep costs as low as possible. Co-ops also return margins to members. Margins are profits outside of the cooperative world.

Electric cooperatives were born out of the refusal of IOUs to extend power into rural areas they thought would be unprofitable. Well, these cooperatives, while not-for-profit, have certainly proven to be a valuable, innovative and formidable force for Americans.

But these co-ops don't just exist by themselves. People create them. GVEA took shape when a small group of pioneers became interested in bringing electric service to rural areas and furthering the agricultural industry in the Tanana Valley. Back in the late 1940s, College Road and Farmers Loop were considered rural.

This rich history continues today. Golden Valley Electric is still growing and extending service to previously unserved areas. Most recently, we've extended power further north along the Steese Highway and have welcomed over 50 new members in the Rock Creek/Ferry and Skinny Dick's areas along the Parks Highway.

Being part of our co-op means GVEA is focused on serving your needs and your needs alone. Our "members first" focus ensures we continually look for ways to improve our ability to meet your needs and strengthen the quality of life in the Interior.

Driven by members' needs, in recent years, GVEA has also added services, such as GV E-Bill electronic bill paying and SNAP, the first green power program offered by a utility in the state.

These are some of the benefits of being part of our cooperative, but membership also carries responsibilities. Participating in the governance of the co-op by voting for your board representative is one responsibility of membership.

We understand members are busy living their lives and may not have much time to get involved with their co-op. There are different levels of participation from board member, to the Member Advisory and Green Power Advisory Committees, to simply staying informed. Your co-op strives to deliver messages we think you'd be interested in through monthly publications. And our Annual Members' Meeting provides the ultimate member focused experience from displays to project updates to member comments.

Ownership, member first focus and a proud tradition of innovation and independence are what you can be proud of as member-owners of Golden Valley Electric. We're glad you're part of our co-op and look forward to the opportunity to serve you and Interior Alaska far into the future.