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GVEA files Delta Wind Farm tariff Utility claims that connection of the farm would be uneconomic and does not specify rates for power purchases from the facility Alan Bailey Petroleum News
Golden Valley Electric Association, the electricity utility for the Fairbanks region of the Alaska Interior, has filed with the Regulatory Commission of Alaska a tariff for the connection of an expanded Delta Wind Farm to the utility’s system. But rates for the payment to the wind farm for the purchase of power are conspicuously absent from the tariff.
The commission requested comments on the tariff by June 2 and commented that, given the absence of rates, the tariff may not comply with state regulations.
Expansion of capacity The wind farm is currently connected to GVEA’s system but has a capacity of just 2 megawatts. The new tariff arises from a proposal to increase that capacity to 13.5 megawatts. GVEA has filed the tariff because it is required to do so in response to a connection request from what is referred to as a “qualifying facility,” a renewable energy power source that meets certain requirements. But, in a longstanding disagreement with Delta Wind Farm Inc., GVEA has argued that the expansion of the wind farm is not economically viable, with the cost of integrating the wind farm into GVEA’s other power supply arrangements exceeding the cost of GVEA’s power that the wind farm would displace.
GVEA commissioned a system modeling consultant to analyze the likely system operating characteristics and financial impacts resulting from the operation of the new wind farm. That analysis concluded that regulation of the varying power from the wind farm would require GVEA to make increased use of its less efficient power generation plants, an effect that would negate the benefit of reducing the use of less efficient plants when the wind power kicks in.
Vehement disagreement Delta Wind Farm has vehemently disagreed with the GVEA analysis, accusing the utility of unwillingness to accept power from an independent producer. GVEA has its own wind farm at Eva Creek near Healy on the north side of the Alaska Range.
Mike Craft, managing partner of Alaska Environmental Power, owner of Delta Wind Farm, has claimed that the GVEA analysis grossly overstated GVEA’s projected fuel costs following wind farm integration, especially given the modest size of the wind farm in relation to GVEA’s total power needs. Croft has said that Delta Wind Farm is in a particularly advantageous position for making use of a wind system flowing from the Wrangell-Saint Elias Mountains and that the farm enjoys an especially high capacity factor as a result.
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