Alaska Power Regulators Deny Wind Farm Complaint Against Coop

The Regulatory Commission of Alaska (RCA) has rejected an informal complaint filed by Alaska Environmental Power LLC (AEP), an independent wind farm, against electric utility Golden Valley Electric Association (GVEA).  AEP is unhappy with how GVEA determines when to purchase power from independent producers.  In the complaint, AEP argues that the GVEA’s methods shut out independent power producers by not using an incremental cost calculation in which high-cost power sources would be replaced first.  The coop uses a cost calculation that averages the cost of power produced across multiple sources, from inexpensive hydropower and coal to expensive fuel oil.  In a letter to the parties, the RCA wrote that GVEA had not violated any state regulations or operating tariffs. The Alaska Journal of Commerce has the full story.

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