January 17, 2023
Happy New Year! Another year has come and gone far too quickly. I hope all of you had a safe & happy holiday season. Usually, the holidays provide us with a slow period, an opportunity to “catch up” with year-end activities as we anticipate a fresh start with the New Year. Although the slow period is appreciated, it’s never long enough to really “catch up.” That being said, I have no complaints because I enjoyed a vacation with my family knowing the Cooperative is blessed with a terrific staff who can handle any unexpected event…. for that I am extremely appreciative.
The following are brief updates on HEA’s current business activities and strategic goals that have taken place over the last month. As always, a more detailed report will be given on the day of the meeting.
Unfortunately, we did have two Occupational Safety and Health Administration (OSHA) recordable incidents in the month of December. A detailed safety report is included in this month’s Board packet. Additionally, the 4th Quarter 2022 safety scorecard will be ready for distribution at the February Board meeting.
Revenues for the month of November were $9.4 million and cost of service was $8.8 million, which resulted in an operating margin of just over $630,000. This monthly gain pushes our year-to-date operating margin to $1.6 million. Lastly, the Retail Energy Usage graph, found at the end of this report, reflects a little higher than average increase due to our gradual increase in new services and the colder weather we experienced in December.
Preliminary planning and year-end preparations are underway for the annual independent financial audit by BDO USA, LLP. Thanks to all departments for helping meet end-of-year deadlines by submitting all final 2022 costs to accounting promptly.
HEA’s generation facilities operated well for the majority of December. There were no significant issues at Nikiski Combined Cycle (NCC), the Battery Energy Storage System (BESS) or at Bradley Lake. However, on December 26th, Seldovia Unit #2 tripped and upon further inspection by HEA staff and our vender NC Cat (OEM), the issue was much smaller than feared and the unit placed back in service.
With the end of 2022, I am happy to report that the 2022 right-of-way clearing plan was 100% completed. With the improved reliability, increased safety, and reduced fire hazard, keeping our rights-of-way clear is one of our best investments. I have mentioned it before and it is worth mentioning again, our vegetation maintenance is crucial for managing electric safety risks to the public and preventing wildfires.
Lastly, economy energy sales to Golden Valley Electric Association (GVEA) continued during the month of December.
MEMBER | CUSTOMER SERVICE
Planning of the 2023 Annual Meeting is in full swing. The meeting will be held on Thursday, May 4, 2023. Candidacy packets will be available to eligible incumbents at this month’s Board meeting.
2022 was a good year for the Engineering Services group with 500 new service applications processed. The graph below indicates 2022 leading the last 5 years in this category. The quarterly New Services report will be available next month.
CYBER SECURITY & INFORMATION TECHNOLOGIES
The FBI recently arrested a fraud gang based in Canada targeting businesses and the elderly by remotely accessing their devices under the auspices of impersonating banks, software vendors, IRS, & Social security by calling their victim and requesting remote access. The gang generated over $10 million dollars from 20,000 victims in December alone by remotely accessing their devices.
As a reminder, never let anyone remotely access your computer, IPAD or phone without first receiving permission from HEA IT.
BUSINESS & COMMUNITY RELATIONSHIPS
The first session of the 33rd Alaska legislature convenes on January 17, 2023. Please be sure to watch for emailed updates from Alaska Power Association’s (APA) Deputy Director Michael Rovito, who will be keeping us appraised of all state and federal legislative activities. APA will begin their weekly and informative legislative teleconferences on Friday, January 13, 2023, at 9:00 a.m. This first call will take place before the session begins due to the legislature releasing pre-filed bills on January 9 and January 13. If you are interested in participating, please contact Jenniffer Rosin for details.
In addition, the two-day 2023 APA State Legislative Conference will begin February 1 in Juneau. More details will be discussed during the board meeting on Tuesday.
Board of Directors’ Meeting Approvals | January 17, 2023
Regular HEA Board Meeting
- Regular Meeting Minutes of December 13, 2023
- Resolution 45.2023.01, Appointment of the 2023 Annual Meeting Election Committee
- Resolution 45.2023.02, Establishing Voting Eligibility Record Date of the 2023 Annual Meeting of the Members