GVEA BOARD VOTES TO MODIFY STRATEGIC GENERATION PLAN
February 27, 2024 – Golden Valley Electric Association’s (GVEA) board of directors voted unanimously during Tuesday’s regularly scheduled board meeting to modify the Strategic Generation Plan (SGP), previously adopted in June 2022. The modification reflects the reality that circumstances and conditions have changed nationally and along the Railbelt since the board first adopted the SGP. These changes include the availability of federal grant funding opportunities and the unavailability of reliable, lower cost alternative energy sources with which to replace the generation output from Healy Unit 2 in the near term.
The SGP as modified reads as follows:
- Complete the installation of the Selective Catalytic Reduction System on Healy Unit 1 in 2024.
- Continue operating Healy Unit 2 until such time as alternative sources of reliable, lower cost energy are available.
- Finalize negotiations for Power Purchase Agreement(s) to integrate large-scale wind resources into GVEA’s system at a price that will lower the overall cost of power to GVEA’s members.
- Install energy storage of sufficient size(s) to assist GVEA in integrating large-scale renewable resources onto GVEA’s system.
- Continue efforts to secure reliable baseload generation to replace Healy Unit 2 in order to lower rates, increase reliability and reduce emissions, both in the short term and long term.
GVEA’s SGP, as modified, is intentionally open-ended. The plan ensures that as circumstances and conditions continue to change, GVEA has the flexibility to pursue all options and alternatives that are in the best interest of GVEA’s members in terms of lowering rates, increasing reliability and reducing emissions – both in the short and long-term. The March 1 increase in GVEA’s cost of power underscores the necessity that GVEA continue to aggressively pursue, and secure lower cost reliable energy to replace underperforming generation units and reduce GVEA’s reliance on higher cost generation.