Transcript Inside Passage Electric Cooperative

Inside
Passage
Electric
Cooperative
Jodi M. Mitchell, CMA
Chief Executive Officer
May 22, 2015
Who is IPEC? Outline for presentation:
•
What is the electric cooperative structure?
•
General information about IPEC
•
What does IPEC have to offer Yakutat?
•
What about electric rates?
•
Summary and conclusions
•
Q&A
What is the electric cooperative
structure?
•
Non-profit, member-owned and governed
•
One member, one vote
•
Annual meeting of members held each year
•
Board is elected by membership, 3 year staggered terms
•
Margins allocated to member-owners via capital credits
•
Concern for community
•
Cooperation among cooperatives
•
Education, training, access to information about latest
technologies
Who is IPEC?
IPEC is a non-profit, nontaxable member-owned and
governed electric utility. We
generate and sell electricity
to about 1,325 customers in
the communities of Angoon,
Hoonah, Kake, Klukwan and
the Chilkat Valley. IPEC has
12 full-time employees, and
several part-time employees.
IPEC has five board members
who reside in each of the
communities we serve. IPEC’s
headquarters office is located
in Auke Bay, Alaska, north of
downtown Juneau. IPEC was
founded in 1976.
IPEC serves its communities by
providing:
Operations
Administration
•
Centralized operations planning
•
•
Overhauls and maintenance to
all of Diesel engines
Centralized billing and
accounting, human relations,
member communications
•
Line extension and new service
planning and construction
Strategic planning, governance,
energy planning
•
Grant writing and administration
•
•
Emergency and planned
distribution line repair
•
Access to lobbyist, auditor, legal
counsel
•
Fleet vehicle repair and
maintenance
•
Good relationships with
contractors, AEA, legislators, and
congressional delegation
ORGANIZATIONAL CHART FOR
INSIDE PASSAGE ELECTRIC COOPERATIVE
Board Member
Angoon
Richard George
Board Member
Chilkat Valley
Larry Beck
Board Member
Hoonah
Grace Villarreal
Board Member
Kake
Wilbur Brown
President
Board Member
Klukwan
Christopher Hotch
Director
Vice-President
Treasurer/Secretary
Director
Chief Executive Officer
& General Manager
Jodi Mitchell
Administrative Officer
Generations Manager
Jerry Medina
Brandon Shaw
Operations Manager
Head Operator
Head Operator
Head Operator # 1
Angoon
Chilkat Valley
Hoonah
Kake
Ed Kookesh Jr.
Jason Hainline
Don Bolton
Frank Hughes Jr.
Head Operator # 2
Controller
Hoonah
Roxanne Drake-Burkhart
Brandin Hill
Billing Officer
Elnora "Rosa" Rice
Accounts Payable Tech.
Janice Keen
Head Operator
IPEC’s Management & Operations Team
provides:
•
Self-performed engine overhauls & maintenance;
excellent reliability statistics
•
Staff lineman for small jobs
•
Bulk fuel contracts for low cost fuel
•
Clean, impeccable annual financial audits
•
Grant writing and administration (over $26 million in grant
funding received since 2005)
•
Sophisticated “utility specific” accounting and billing
software
•
Extremely low write-off percentage with online and credit
card payments accepted
IPEC’s Management & Operations Team
provides (continued):
•
Annual Membership meeting is rotated between
communities (election, food, prizes)
•
Energy planning for each community to reduce or
eliminate diesel reliance/work with community leaders
•
Postage stamp rate structure, but community cost-based
rates to be implemented
•
PCE billing, regulatory compliance, COPA (fuel surcharge)
filings
•
Access to Cost of Service/rate study professionals
•
Good relationships with AEA, legislators, congressional
delegation, and the Governor’s Office
IPEC’s Board and Management Team has
created a plan for each of our communities
to reduce or eliminate diesel reliance
•
We are currently building a hydro project in Hoonah –
estimated completion date August 15, 2015
•
We are working on developing a small hydro at Gunnuk
Creek in Kake (grant funded from AEA)
•
Hoonah has another potential hydro project which is
currently being surveyed for initial design
•
IPEC’s Klukwan and Chilkat Valley service area is currently
nearly 100% hydro (IPEC owns 10 Mile Hydro)
•
IPEC fully supports Kootznoowoo’s plans to build the
Thayer Creek hydro project (they have sole rights) in
Angoon
What does IPEC have to offer Yakutat?
•
Centralized billing, accounting, and collections
•
PCE, COPA, regulatory compliance
•
Online member access to account information, online
payments
•
Access to low cost financing for capital improvements
•
Energy planning to reduce diesel dependence
•
Grant writing and administration
•
Overhauls and maintenance (similar power house design
as Hoonah plant)
•
Potential for reduced bulk fuel prices/synergies
What does IPEC have to offer Yakutat?
(continued)
•
An elected seat on IPEC’s Board of Directors
•
Staff lineman for small jobs if needed
•
Diesel generation expertise, hydro potential
•
Annual membership meeting in Yakutat (rotation with
other communities)
•
Day trips to Yakutat possible from Juneau via AK Airlines
•
Excellent employee benefits but lean staffing
•
Access to legal counsel, auditors, engineering, and rate
professionals
What about Rates?
•
IPEC currently charges a postage stamp rate to all of its
members (different rate classes, but everyone pays the
same)
•
However, IPEC has a cost of service study that is nearly
complete, and implementation will occur soon
•
Yakutat’s rates would be based on cost of service
•
Bulk fuel price reduction is possible, and would help
reduce Yakutat’s rates
Summary and Conclusions
•
IPEC and Yakutat have a lot in common, share the same
challenges
•
IPEC can offer lower bulk fuel prices (Petro Marine)
•
IPEC can provide many services to Yakutat to streamline
operations and administration
•
Yakutat’s customers would become member-owners of
IPEC, and would share in profits through capital credits
•
Yakutat’s customers would have online access to their
accounts, and access to a toll-free line to IPEC’s customer
service center
Questions?