SUMMARY
Good afternoon. With this month’s board meeting traditionally pushed back a week due to spring break, I hope everyone had a chance to enjoy a little extra time between meetings. I’ll admit I’m ready for spring – while Alaska winters certainly have their place, the return of more daylight is always welcome.
February was another busy and productive month for the cooperative. Our team hosted auditors on-site, continued preparations for the upcoming HEA Annual Meeting and Board Election, and participated in several key industry meetings. These industry meetings included the Alaska Power Association’s (APA) State Legislative Conference in Juneau; Northwest Public Power Association (NWPPA) Board of Trustees meeting in Vancouver, Washington; and several important regulatory meetings at the Regulatory Commission of Alaska (RCA).
Below is a summary of recent business activities and progress toward our strategic goals. A more detailed report will be provided during the board meeting.
SAFETY
There were no Occupational Safety and Health Administration (OSHA) recordable incidents in February. One minor personal injury occurred, and a vehicle accident remains under investigation. Additional details are provided in the Safety report.
FINANCIAL OVERVIEW
The cooperative is off to a solid start in 2026, with January results coming in ahead of budget expectations. Revenue for January totaled $12.1 million, with a cost of service of $10.4 million, resulting in a monthly operating margin of just over $1.7 million. These results reflect typical seasonal energy use and the updated rates that took effect Jan. 1, 2026, which help ensure the cooperative continues to maintain reliable service and financial stability.
Additionally, our annual independent financial audit is nearing completion. Auditors from Aldrich CPAs + Advisors LLP will present the Independent Auditor’s Report on the consolidated financial statements at the upcoming board of directors meeting.
RELIABILITY
GENERATION – The Nikiski Combined Cycle (NCC) plant operated throughout February with output levels adjusting as system demand fluctuated in response to changing weather conditions across the service area. Speaking of weather, February brought variable patterns, with periods of both extreme cold and unusual warmth that shifted demand throughout the month.
At the Bernice Lake facility, maintenance on the generating units was completed, and all units have returned to normal standby service. Staff at the Nikiski plant continue to prepare for the upcoming April maintenance outage. On February 16, Unit No. 2 at the Bradley facility failed to shut down as commanded, resulting in a brief outage. Operators identified a failed start/stop coil, replaced the component, and returned the unit to service on February 19.
MEMBER/CUSTOMER SERVICE
ENGINEERING SERVICES, NEW SERVICE APPLICATIONS – The chart below shows the new service applications and provides a historical comparison.
MEMBER SERVICES – Our annual report of Board Policy 603: Identity Theft Red Flag Prevention is scheduled for review at this month’s Board meeting. This policy was established to ensure we take reasonable steps to identify, detect, and prevent the theft of our members’ personal information, commonly known as identity theft.
Additionally, in accordance with Board Policy 723, annual Disclosure Statements (Conflict of Interest) will be distributed at Tuesday’s meeting. If you would prefer a fillable PDF version for electronic submission, please contact Jenniffer or let her know during the board meeting.
CYBER SECURITY & INFORMATION TECHNOLOGIES
Scammers are increasingly using artificial intelligence to clone people’s voices. One in four Americans say they’ve received a deepfake voice call in the past year, and many report it can be difficult to tell the difference from a real call.
In some cases, the caller may sound exactly like someone you know — a boss, child, or grandparent — urgently asking you to send money or share personal information.
If you receive an unexpected call requesting money or sensitive information, hang up and contact the person directly using a phone number you already have saved. It can also help to establish a family code word with loved ones to verify identity during an unexpected or suspicious call.
BUSINESS & COMMUNITY RELATIONSHIPS
State Legislative Activity – Legislative activity continues to increase as the session progresses. Nearly 90 new bills were filed ahead of the February 23 deadline for personal legislation. Any new bills introduced after that date must come from legislative committees. With just under three months remaining in the session, committees are beginning to focus on advancing priority legislation.
Several newly introduced measures could affect electric utilities. House Bill 328, sponsored by Rep. Chuck Kopp, R-Anchorage, would allow regulated public utilities to request approval from the Regulatory Commission of Alaska (RCA) for a strategic investment surcharge to recover certain infrastructure-related costs outside of a general rate case.
The House Energy Committee also introduced House Bill 369, an omnibus energy bill that combines several energy-related proposals into a single piece of legislation. The bill includes a proposed diversified portfolio standard (DPS) for the Railbelt and wildfire mitigation requirements for utilities across the state.. It is expected to undergo additional revisions as the legislative process continues.
House Bill 329, introduced by the House Community and Regional Affairs Committee, clarifies an existing statutory exemption from certificate of fitness requirements for electrical work in small or unconnected service areas. The bill specifies that the exemption applies only where a utility serves no community larger than 2,500 residents or where isolated portions of a service territory meet the same condition.
The Senate Labor and Commerce Committee also held a second hearing on Senate Bill 150, introduced by Gov. Mike Dunleavy, which would require Railbelt electric utilities to offer net metering programs at the prevailing retail rate on an annual cycle. Testimony included a presentation from the Alaska Center for Energy and Power (ACEP) discussing the history of net metering programs, potential cost-shift considerations and lessons learned from other states.
In the House Energy Committee, members considered amendments to House Bill 257, sponsored by Rep. Ted Eischeid, D-Anchorage, related to portable solar generation devices. Amendments adopted by the committee limit portable solar systems to 1,200 watts per electric meter, require safety features to prevent back-feeding during outages, and exempt very small utilities. The bill was held in committee for further consideration.
The House Community and Regional Affairs Committee also heard House Bill 220, sponsored by Rep. Kevin McCabe, R-Big Lake, relating to easements and rights-of-way within state parks for access to private property and public utility infrastructure. HEA and other members of the Alaska Power Association testified in support.
BOARD OF DIRECTORS' MEETING APPROVALS | MARCH 17, 2026
Regular HEA Board Meeting
- Regular Meeting Minutes of February 10, 2026
- Resolution 45.2026.03, Acceptance of the 2024 Audit Report
- Resolution 45.2026.04, Capital Credit Payment to an Estate
- Board Policy 603, Identity Theft Red Flag Prevention – Annual review complete, and housekeeping revisions approved.