President & CEO Brian Newton

"Winds of Change"

Golden Valley Electric exists for the sole purpose of providing its members with safe, reliable and affordable power. But truth be known this is not an easy task, especially in today’s world. It takes forethought and drive to keep ahead of the ever-changing energy situations.

We’re excited about the Winds of Change. They are providing us with a couple new and exciting opportunities to kick the oil habit and deliver clean, green power reliably and affordably. And, best of all, these energy projects are right here in the Interior. Here is what we’re doing.

The Eva Creek Wind Project, located near Healy, would allow us to add more renewable energy to our mix. Eva Creek will make Golden Valley the Railbelt leader in renewable power. That’s something to be proud of.

At 24-megawatts, Eva Creek is the right size for our system. A larger wind project would not only jeopardize reliability, but it would also cost more in the long run. Eva Creek is estimated to cost less than $90 million and it will NOT raise rates. Instead, it will displace a portion of our oil needs when the wind blows. We expect this project to be online in the Fall of 2012.

Plans to bring liquefied natural gas (LNG) to the Interior has the potential to significantly lower our fuel costs as well as reduce energy costs in the Interior. Trucking LNG from the North Slope to North Pole would give us the opportunity to convert our aero-derivative turbine from oil to natural gas. At today’s price of oil, this will save us more than $15 million in fuel each year. That translates to a decrease of nearly 10 percent in the  Fuel and Purchased Power Charge on your monthly bill.

But don’t think we’ve given up on a gas pipeline or abandoned plans to build the Susitna Dam. Instead, trucking LNG is simply a bridging solution while we wait for a gas pipeline and Susitna to be built.

Finally, let’s look at one last project. While not new, the restart of the Healy Clean Coal Plant would open doors to tremendous opportunity. Assuming oil costs of $100 per barrel, HCCP would save us more than $2 million per month in fuel costs. That translates to a reduction of more than 15 percent to the Fuel and Purchased Power Charge on your monthly bill. GVEA is currently working with the Alaska Department of Environmental Conservation and the Environmental Protection Agency on the plant’s air permit renewal. Rest assured we’re doing everything we can to get this $300 million state asset online.

No matter how the energy situation plays out, one thing is certain: the Winds of Change are blowing opportunities Golden Valley Electric’s way. These winds have the opportunity to deliver clean, green power, and perhaps more importantly, more affordable power.