Golden Valley Electric Association

2002 Annual Report

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A Message from the President & CEO
Steve Haagenson

"Making the Future Brighter"

President & CEO Steve Haagenson
GVEA President & CEO Steve Haagenson

You might not recognize Golden Valley as a cooperative unless it's pointed out. GVEA looks and acts like any other business, but there's a difference. It's the cooperative difference. It means our member-owners hold us to much higher standards of service than other organizations. We work hard every day to live up to this challenge and we're proud to be your locally-owned cooperative.

One of the ways we work to brighten the future is by working to extend power lines into unserved areas. This past year, we helped residents in three different areas obtain substantial funding toward line extensions. Over the next couple of years, we expect to welcome about 100 new members in the Chatanika, Parks Highway Milepost 328 and Rock Creek/Ferry areas.

Besides providing power to the Interior, we look to improve the future in other ways. In 2002, Golden Valley's Board of Directors authorized the use of $20,000 in unclaimed capital credits to be awarded in academic scholarships. Through this program, GVEA was able to brighten the future for eight high school and continuing education students in the Interior.

Protecting our environment is another way we make the future brighter. We're looking into green energy sources such as wind, solar and fuel cells. We placed weather stations at five windy locations and will be collecting and analyzing the data over the next couple years. Within the next decade, we hope to be able to add wind turbines to our generation mix and start to decrease our dependence on fossil fuel generation.

Beyond our members' expectations of higher standards, GVEA follows the seven cooperative principles. These ensure open membership, democratic control of co-op affairs, operation on a not-for-profit basis, return of capital credits to members and cooperative education.

Cooperation among cooperatives is the sixth principle and it's one of the ways we're strengthening ties with our neighbor utilities. The year 2002 saw the resurrection of joint board meetings between GVEA and other electric cooperatives. We're able to serve all Alaskans most effectively when we work together at local and national levels. An example of this cooperative effort was the construction of the Fairbanks-Anchorage Intertie nearly three decades ago. It took a team approach among Railbelt cooperatives to establish the need for the project and secured funding from the legislature. Our members still benefit from this transmission line today.

In 2002, your Board also voted unanimously to become a Touchstone Energy Cooperative member. Touchstone Energy is a group of 600+ cooperatives from around the country. By bonding together, our collective voice is stronger as we continue to use new technology to increase quality of life for our members and communicate the unique strengths of cooperatives.

Commitment to community is the final cooperative principle and it's one Golden Valley takes to heart on an individual basis as well as at the corporate level. Each year, GVEA employees volunteer hundred of hours making the future brighter in our communities. Our Healy Power Plant employees participated in the State's Adopt-a-Highway program and performed litter patrol along the Healy Spur Road. Employees manned a Kids Voting precinct and served as judges at several elementary schools and at the District Science Fair. In addition, employees contributed over $21,000 in pledges to United Way, which was matched by the Board of Directors.

While our core business may be providing power to Interior Alaskans, service to our members-owners is inherent in everything we do. That's the cooperative spirit of making the future brighter in our communities.

GVEA's Year in Review

The year 2002 was one of accomplishments at your co-op. Some of these accomplishments were of a personal nature, relating to individual employees. Some required the efforts of a team, and others, a commitment from every employee. Through all these endeavors runs the theme of cooperation.

On a personal level, Healy Plant Technician III Gabriel Jacobs set the record for longest term employment at GVEA with 35 years of service. Gabriel retired in October 2002, along with 32-year employee Electrical & Instrument Foreman Larry Miller.

Through a team approach, we saw our new capital credits system online. This system greatly reduces the amount of manual research employees must perform to locate missing addresses and ensure accurate refunds.

GV E-Bill, Golden Valley's electronic bill payment program, kicked off in March 2002. At year end, we had far surpassed the national level of 1% participation; nearly 5% of our membership has signed up. GV E-Bill is a service you asked for. It's also good for your co-op in terms of savings in paper bills printed and reduced mailing and postage costs.

Home, the residential portion of GVEA's Energy program, celebrated 10 years of success. Over the past decade, Energy has reduced greenhouse gases by almost 20,000 tons in Interior Alaska.

GVEA earned its 5th consecutive National Rural Electric Cooperative Association safety accreditation. Each accreditation period covers three years. This resulted from the underlying corporate philosophy that accidents don't just happen, they're caused. By determining and working with the causes, accidents can be prevented. Earning such an award takes a daily commitment from each employee.

Accomplishments on our major construction projects include continuing negotiations with the Healy Clean Coal Plant's owner, the Alaska Industrial Development and Export Authority, toward the eventual operation of the plant. Also, progress was made clearing, placing towers and stringing wire for the Northern Intertie. Batteries arrived for the Battery Energy Storage System, or BESS, and their installation began. The Northern Intertie and BESS projects are expected to be complete before the end of 2003.

2002 GVEA Fast Facts