Regulators Back GVEA in Wind Power Case

The Regulatory Commission of Alaska sided with Golden Valley Electric Association in a dispute with the owners of the Delta Wind Farm.

"We found no violation of statues, regulations or GVEA’s tariff provisions,” the regulators wrote in a letter issued October 17.

Alaska Environmental Power approached Golden Valley in February about purchasing additional wind power. AEP is seeking to expand its wind farm from 2 megawatts to 25 megawatts. Golden Valley already purchases every megawatt AEP produces.

The parties entered into discussions in March. Golden Valley spent thousands of dollars and hundreds of hours evaluating the proposal and negotiating with AEP. AEP withdrew from negotiations in July and filed an informal complaint in August, accusing the co-op of negotiating in bad faith.

"This decision confirms that GVEA has complied with the regulations and has dealt fairly with AEP,” said Golden Valley President and CEO Cory Borgeson.

AEP is pressing Golden Valley to buy its wind power at a price higher than the average of its other fuel sources. The co-op is concerned that this would raise rates.

“We want more wind power, but only if it doesn’t lower our reliability or raise our members’ rates,” Borgeson said.

Read the letter from RCA's Consumer Protection Officer.

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