The Southeast Alaska Power Agency (SEAPA) held their board meeting for audit review and 2012 plans a little later than planned when the board member's plane overheaded Petersburg. Scheduled to begin at noon the meeting actually began shortly after their plane landed at 3:30 on Dec. 13.
SEAPA started their meeting with the financial statement for September 2011 which was affected by the record rainfalls for the month.
“Regarding the September financial statements, revenues were under budget,” CEO Dave Carlson said. “Here today, we're actually right on budget.”
During Carlson's CEO report it was noted there was a possibility for land use fees to increase but SEAPA was exempt from the rate increase and Carlson provided an update on SEAPA's bond insurance standing according to Standard & Poor's Ratings Services.
“I got a call from Seattle Northwest, we have bond insurance that was downgraded by Standard & Poor's,” Carlson said. “It is a reportable event. We went from AA+ to AA- or something like that.”
“The reason is they don't look at bonds as favorably as they used to,” attorney Joel Paisner explained. “At the time we sold these bonds, it was when the economy was crashing all around us. It really doesn't affect us in any way other than that Dave has to report it as a material event.”
Joy Merriner, audit senior manager for Mikunda Cottrell, went over the 2010 audit with the board and reported everything “went smoothly.”
“Nothing to report on, control deficiencies or concerns,” Merriner said. “(SEAPA did a) really good job from management perspective.”
Following the audit, SEAPA discussed their operations plan for 2012 with Eric Wolfe, director of special projects, leading the discussion with information gathered throughout the year about the Tyee and Swan Lake plants.
“We've been tracking La Nina for six months every Tuesday morning to discuss the short range forecast, but that's not as important as the long range,” Wolfe said. “Right now we have information and a chance for cooler temps, that means drier weather and means loads are going to be up.”
Wolfe explained how when precipitation goes up, the demand for electricity goes down since it means warmer weather. The inverse is also true, when precipitation goes down, the demand for electricity goes up because it means cooler and clearer winter weather. Complications arise for SEAPA because the water reserves for the plants were designed about 30 years ago when summer was the peak consumption time due to logging industry.
“This year I want to limit or stop (electrical) exports at (a reservoir level of) 1270, then come back in March and look at the forecast,” Wolfe said.
“We don't want to starve out Wrangell and Petersburg, but I'm confident we're going to spill out the Tyee next year,” Wolfe said.
SEAPA's meeting recessed for the evening and resumed the following morning. The following occurred at the second half of SEAPA's meeting:
• SEAPA approved a rebate to purchase utilities totaling $1,650,000.
“The benefits of SEAPA flow back to the communities in a number of ways and this year we're proud that we could rebate back some of our revenues to the communities,” Wolfe said.
• SEAPA approved a consulting contract with their current CEO, Dave Carlson, “so we can hold on to his expertise after he retires,” Nelson said. SEAPA also selected Mycoff Fry & Prouse of Conifer, Colo. as their CEO recruitment firm
• SEAPA's staff will look into increasing the storage capacity at Swan Lake by raising the existing dam.
“I think it went extremely well, very pleased with the board working together and moving forward,” Nelson said.
Reader Comments(0)