Golden Valley Electric Association

2009 Board Election Q & A: Ward Merdes

1. What business, technical and fiscal knowledge, skills and experiences will you bring to GVEA’s Board of Directors?

Business skill and experience includes 20 years running a successful small business (law firm) in Fairbanks. I have hired, fired and managed employees, been responsible for production at all levels, generated and maintained budgets. I've built supply and demand projections, generated advertising campaigns, paid taxes, met payroll experiencing both feast and famine.

Having earned an MBA in finance and decision theory from Cornell, I counsel countless local enterprises toward profitable and ethical commercial behavior. My clients have come to rely upon thoughtful, blunt, honest advice. I understand accounting, economics, finance and the law. I'm fiscally conservative and have argued hundreds of cases before Alaskans. Born and raised in Fairbanks, I embrace Alaskan values, and will strongly represent GVEA's best interests to its owners, regulators and the State.

As a GVEA board representative, you will count on me to do my homework and think about your needs. I will research and evaluate finance and policy issues facing the cooperative. I will collaborate with others, and ask questions. I will help plot a strategic course for GVEA's next 50 years that ensures continued success. Times are changing. Technology is leaping forward. GVEA needs leaders who embrace that change.

2. How would you perceive your role and responsibilities as Director? Are there any specific things you would like to accomplish by the completion of your term as a GVEA board member?

The GVEA Board is responsible for "establishing policies, providing strategic direction, hiring the CEO, providing for a plan of succession, overseeing management, and overseeing all major corporate functions." As a board member, my role will be to embrace these responsibilities.

For example, GVEA's strategic policy of pursuing oil-based electricity generation is questionable. Oil's recent price advances will be repeated, once we emerge from recession and demand from China again spikes. Though oil price increases help Alaska, they hurt GVEA. GVEA's present alternative, coal, is also problematic. Coal is dirty, GVEA has proven that "clean coal" is not an option. Reliance on coal will meet continued resistance in Congress.

At the same time, it is increasingly clear that demand for electricity will skyrocket. Advances in battery efficiency point toward greater reliance on electricity. Electric vehicles require enormous amounts of electricity. GVEA thus needs both greater generation capacity and greater delivery capacity.

The logical generation option is hydroelectric. GVEA currently buys approximately 10% of its electricity (20 megawatts) from the Bradley Lake hydroelectric project. Increasing delivery capacity simply requires greater investment in lines.

3. What do you think Golden Valley’s long-term goals and objectives should be?

GVEA's long-term goals and objectives should be: (1) increased generation efficiency; (2) increased delivery efficiency; and (3) safe operations.

Simply put, Fairbanks needs more electricity, readily available, at lower rates. We need that electricity delivered to members without endangering Alaskans. That's what Golden Valley's Board should be working toward.

4. How would you help position the cooperative for the future?

GVEA needs additional capital investment, now. We need Susitna. We need an updated delivery grid. Demand is growing. GVEA must be prepared.

GVEA must take advantage of historically low interest rates to expand for tomorrow's demands. Because GVEA has a consistent cash-flow from members, it should utilize this resource to build a strong, more stable energy generation and delivery system for 2010 and beyond. GVEA must invest in tomorrow's infrastructure, today.

Though politically unpopular, GVEA need to at least look at nuclear energy potential. Eighty percent of France's electricity is generated in nuclear plants - without incident. Unlike Hollywood's depictions of catastrophe from 1950's nuclear technology, 20th century nuclear energy is small, safe and dependable. For example, the Toshiba S4 (Super, Safe, Small and Simple) reactor, which Toshiba offered to install for free in Galena, deserves investigation. It will deliver 10 megawatts for 30 years, without refueling. Nuclear power may not be the answer - but all possible benefits for Alaskans deserve a look.

We need safe, efficient electricity to support a growing Fairbanks.