CELEBRATING 75 YEARS 75 years ago, 242 families in the Matanuska Valley petitioned the newly-created Rural Electrification Administration (REA) for help in creating an electric cooperative and bringing power to their homes and farms. On March 1, 1941, Matanuska Electric Association was incorporated and on January 20, 1942, MEA delivered power to the first member. Within the first year, only about half of the total 242 members had power, but they continued to buy into the cooperative, waiting for the infrastructure to reach their homes. Southcentral Alaska’s population quickly grew from 59,278 people in 1930 to 225,886 by 1943, due in large part to World War II efforts in the Pacific. As requests for electrical services grew, so did MEA’s service territory. By 1950, MEA was providing power to Chugiak, Sutton and Jonesville, adding Birchwood in 1952. MEA continued expanding, moving north to Talkeetna in 1963 and Big Lake in 1965. *Note: Some pictures that appear in this publication are historic and may not meet today’s safety standards. Fast forward to today, and MEA is now generating our own electricity, powering our members’ homes and businesses with the Eklutna Generation Station (EGS) power plant. We serve nearly 50,000 members through more than 4,200 miles of power lines in the Mat-Su and Eagle River/Chugiak areas. With a service area roughly the size of West Virginia, MEA is the oldest existing and second largest electric utility in the state. We recognize that much has changed in the past 75 years for both MEA and all of our members, new and old. It’s our goal to serve our membership with a value on service, reliability and trust. It’s important to us that we continue to be a strong part of the communities we serve. MEA is here to light up your lives and our communities. From our family to yours, thank you for a memorable first 75 years and here’s to the next 75. Sincerely, Your Matanuska Electric Association BOARD OF DIRECTORS 75 years. That’s a long time. I can speak first-hand to the changes that have happened in that time…television, microwaves, cell phones, the internet just to name a few. Alaska has seen changes too - from statehood to the pipeline and permanent fund to the development of Eagle River and the valley from a small group of colonists and pioneers to one of the fastest growing areas of the country. Through it all, Matanuska Electric Association has been there, supporting each of you and the growth of this community. We’ve been a catalyst for development and an enabler of the self-reliance and quality of life we Alaskans expect. Elsie E. “Lois” Lester DIRECTOR AT-LARGE 2015 was a year of both growth and reflection for MEA. We leapt from a distribution-only cooperative to a fully vertically integrated utility - producing, selling and distributing our own power. This was a major transition for the cooperative and I could not be more proud of the tenacity, teamwork and collaboration that made it happen without a hitch. President After 16 years of service, this is my last year on the MEA Board. When I reflect back on the progress over those years, I can tell you there were bumps and hard times, but we persevered for the good of our members. I am gratified to have been a part of such an amazing team of Board members and employees who were ready to serve, improve and grow. I am honored to have represented each of you over those years and even more proud that I will still count myself a member of this great cooperative in the years ahead. President Elsie E. “Lois” Lester Peter Burchell DIRECTOR AT-LARGE Bob Doyle SUSITNA DISTRICT David Glines EAGLE RIVER DISTRICT Secretary-Treasurer Kit Jones DIRECTOR AT-LARGE Janet Kincaid DIRECTOR AT-LARGE Vice President Marvin Yoder MATANUSKA DISTRICT EXECUTIVE TEAM It is an honor to serve as MEA’s newest General Manager. To be unanimously approved by the MEA Board of Directors is humbling, however, you don’t just replace steel-toed boots like Joe Griffith’s overnight and my goal is to build on the many successes that started under his watch. I am fortunate to have a strong executive team with a combination of nearly 100 years in their respective fields helping me lead the way. Guiding a group of 191 dedicated employees who come to work everyday with an eye on safety and a goal of making sure this community’s pulse of electricity keeps moving gives me a great sense of pride and responsibility. Providing an essential service for my family, friends and neighbors at a low price is a necessity - it is something the MEA team thinks about every day. GENERAL MANAGER Tony Izzo General Manager Tony Izzo EXECUTIVE ASSISTANT Dawn Baham DIRECTOR OF ENGINEERING Gary Kuhn IN-HOUSE COUNSEL David Pease DIRECTOR OF PUBLIC RELATIONS CHIEF INFORMATION OFFICER DIRECTOR OF HUMAN RESOURCES Julie Estey Stan Halfacre Heidi Kelley CHIEF FINANCIAL OFFICER DIRECTOR OF OPERATIONS DIRECTOR OF POWER SUPPLY Matt Reisterer Eddie Taunton Tony Zellers Previous MEA office building being constructed. It was a huge investment of optimism when the Matanuska Valley Farmer’s Cooperative Association (MVFCA) set out to form a separate electric cooperative in 1939. Incorporated March 1, 1941, as a member-owned cooperative, Matanuska Electric Association (MEA) has powered the Valley since electricity flowed to its first 150 customers across 93 miles of line January 20, 1942. Early 1000’s - Earliest known account of Dena’ina and Ahtna Athabascan people in the Matanuska and Susitna Valley region. 1870s - Incandescent light bulb invented. March 30, 1867 - Russia and the U.S. sign the Treaty of Cession, transferring Russia’s interests in Alaska to the U.S. for $7.2 million. Since then, Alaska’s oldest existing member-owned cooperative has grown to serve more than 4,200 miles of power lines across mountains and spanning rivers, serving MEA’s more than 50,000 members. It is with great pride we share OUR story, because we are all MEA. 1905 - Orville G. Herning builds the Knik Trading Company in Knik. 1882 - First commercial electric plant in the U.S. began operation in Appleton, Wisconsin, selling electric power to some of the city’s wealthiest families. 1912 - Congress passes a bill to create the Territory of Alaska, form a Legislature and authorizing the President William H. Taft to establish a route for the railroad. 1910 - U.S. government completes a year-round trail from Seward to Nome for use by dog sled teams. 1914 - John Bugge homesteads 320 acres near the intersect of the Palmer-Wasilla and Glenn highways. 1914 - President Woodrow Wilson establishes Alaska Engineering Commission to open up the area known as the Matanuska Valley for agriculture. ‘A huge investment of optimism’ Electricity was a practical consideration when members of the MVFCA began forming an electric co-op in 1939, and later the Matanuska Valley Federal Credit Union and Matanuska Telephone Association to provide banking and phone service in the Valley. Homegrown historian Jim Fox — grandson of Colonists Henning and Irene Benson — said although federal Colony planners included a power plant in Palmer to provide electricity to the hospital, garage, creamery, hatchery, trading post, school and other buildings, there was no plan to extend service to farms. Electricity was a critical factor in the Valley’s fledgling dairies’ ability to keep milk cool and fresh for market, which was a challenge from the on-set in Colony barns designed with wooden floors and no running water, or electricity, to aid in sanitation. Work on the Echo Lake line (1965). E.F. Clements of the Territorial Department of Health and Sanitation brought the problem to the forefront when he put milk producers on notice in April 1939 that all dairies would soon be required to have a permit from the health department to sell milk. “Electricity had a huge impact on the farmers who stayed, and how it allowed them to stay,” he said. “The people who formed the electrical co-op created something that ensured the success of the Colony and made for a real livelihood for the Colonists.” Building out the new electric co-op’s lines also added new jobs to the Valley at a time when wage-an-hour work was scarce, Fox said. “Valley residents who formed the electrical co-op had a vision for what having an electrical grid base could mean for encouraging development,” he said. “It was a huge investment of optimism.” MEA purchases Talkeetna Light and Power from Myron and Lynn Stevens (1963) Photo by Dale L. Wahlen. ‘Cheapest hired man I ever had’ The Linn family was among those first 127 customers when MEA began distributing electricity January 20, 1942. Allan Linn, 86, still remembers his excitement as the poles approached their farm. The first transmission line came up from Anchorage businessman Frank I. Reed’s hydropower plant at Eklutna and ran along the west edge of the Alaska Railroad line to Matanuska where it split, running east and north to Palmer and west to Wasilla, he said. Reed constructed the plant in 1929 to serve Anchorage. Electricity changed life in many ways — from safer lighting and electric wells that facilitated indoor plumbing, fire protection, watering livestock and crop irrigation, to refrigerators, freezers, cream separators and incubators for poultry. “To quote my father, ‘It’s the cheapest hired man I ever had,’” Linn said. October 1914 - John August Springer homesteads 320 acres of benchland 1917 - Orville G. Herning moves on the north bank of a sweeping bend his store to Wasilla after the railin the Matanuska River. road established a town site there. April 1, 1917 - Construction of Matanuska Experiment Station begins under the direction of F.E. Rader. Employees work on transformer at Palmer substation. October 11, 1918, - Government land sale in Wasilla. 1918 - Sutton founded as a station on the Matanuska Branch of the Alaska Railroad. 1929 - There are 58 farmers — 12 of whom are married — farming in the Matanuska region, according to the Alaska Experimental Stations’ annual report. 1927 - Alaska Agricultural Stations and the Alaska Railroad cooperate to establish a creamery at Curry, expanding the market for the milk produced in the Matanuska Valley. It took another year to complete the 287 miles of power lines MEA needed to reach all its members. But by the end of 1943, all 242 members had current. The first lines were built by men — like Bob Mielke, Bill Smith and Ralph Moore — with long-handled shovels and strong backs. Evelyn Mielke said one of her new husband’s first jobs was digging holes for a line across the Knik River in 1948. The soil was so sandy, she said holes were 20-feet wide at the top to get them six- to ten-feet deep. Linn said workers used shovels with eight- to ten-foot handles to dig each hole. Still, electricity was so uncommon in the Valley that when Frank B. Linn arrived at the experiment station in 1927, Superintendent M.D. Snodgrass put him in charge of the farm’s power plant after learning he “knew what a light switch was,” Linn’s son recalled 90 years later. Electricity was still uncommon in the Valley in 1937 when Colony doctor Dr. C. Earl Albrecht began writing to the REA about forming an electric co-op to serve the Valley. Albrecht installed the area’s first residential generator in his family’s new private residence on Bailey Hill in Palmer in the spring of 1941. “Those guys sure were happy when they got the Blue Ox” — a mechanized posthole digger — at the end of the World War II, he said. As secretary of the electric co-op Board, Dr. Albrecht is one of five men who signed MEA’s articles of incorporation March 1, 1941, along with fellow incorporators Walter E. Huntley, Ross Sheely, Colonists Laurence Arndt and Edward I. Wineck. Alaska’s first REA cooperative ‘Dance your way to electric lights’ The Alaska Railroad, the mine operations at Chickaloon, Sutton, Eska and Independence Mines, the Matanuska Experiment Station and co-op buildings in Palmer had individual power plants to generate their own electricity as early as 1917. Before the REA would authorize formation of the cooperative, it needed an “accurate report and survey showing that adequate and constant power can be made available,” according to The Valley Settler, February 10, 1939. February 4, 1935 - President Franklin Roosevelt signs Executive Order No. 6957 withdrawing 8,000 acres in the Matanuska Valley from homestead entry for the Colony Project. May 10, 1935 - There is about 100 miles of graded road in the region, 20 miles of gravel road, no paved roads, no road from the Matanuska Valley to Anchorage, and no highway was planned linking the Valley to Fairbanks when the first 202 Colonists arrive in Palmer. April 12, 1935 - Alaska Rural Rehabilitation Corp. incorporated. March 1, 1941 - MEA formed. 1936 - Alaska State Fair founded. October 14, 1941 - MEA signed its first power purchase agreement from Anchorage Power and Light for a maximum of 250 kWh at a rate of $0.02 per kWh. An “Electric Ball” was organized at the Community Hall March 11, 1939, to fund the survey. “Dance your way to electric lights,” reads a hand-drawn ad in The Valley Settler. The dance raised $150, enough for Anton Anderson — original head surveyor for the Colony — to complete an 18-page report describing construction conditions. In early 1940, REA sent a telegram authorizing formation of an electric co-op. Construction began on a distribution line from the Eklutna hydro plant with approved capitalization of $187,000, and a $140,000 REA loan received April 10, 1941. Reed’s plan to extend transmission lines from his expanded Eklutna Hydro Plant across Knik Arm and the Matanuska River stumbled when he failed to get financing in 1935. Instead, MEA constructed the transmission line from Eklutna in 1941, financed by an REA loan. MEA’s first power purchase agreement was signed with Reed’s Anchorage Power and Light on October 14, 1941, to provide a maximum of 250 kWh at a rate of $0.02 per kWh. MEA purchased power from Chugach Electric Association from 1950 to 2015, when the Eklutna Generation Station began production. Today Reed’s concrete powerhouse is on the National Register of Historic Places and stands on the grounds of MEA’s Eklutna Generation Station. The original “Electric Ball” event drawing. 61,877 56,409 MEA Historical Tid-Bits Members paid a minimum monthly charge of $3.50 for MEA service in 1942. Now, in 2015, it’s $5.65. 28,766 Early MEA members on the Chugiak Line in the 1950s communicated with MEA via radio because there was no phone service in that community at the time. Points of service Fred Machetanz paid his MEA bill in 1957 with a watercolor painting of Denali. On loan to Mat-Su College,the painting is on display in Student Services in the Machetanz Building in Palmer. Miles of power line 14,438 A Lockheed P-38 WW II aircraft flew too low over the Knik River and took out four spans of power lines in 1945. 4,053 The average monthly electric bill for homes was $15.67 (285 kWh) and on farms was $25.30 (572 kWh) in 1955. 5,051 2,628 Former MEA General Manager Willard Johnson also drove the mail truck, being responsible for the mail route. The National Academy of Engineering named electrification as the most important engineering achievement of the 20th century. 1941 - Power line constructed from Eklutna Hydro to Palmer. 1943- All original 242 MEA members had power. January 20, 1942 - First MEA members receive power. January 3, 1959 - Alaska becomes the 49th state in the Union. 4,356 2,567 1,766 1,436 471 230 294 93 94 112 345 1942 1943 1947 1955 September 6, 1963 - MEA purchases Talkeetna Light and Power from Myron and Lynn Stevens. 534 1960 865 1970 1980 1990 2010 2015 2013 - MEA begins constructing the 171-megawatt, natural-gas-fired Eklutna Generation Station. March 27, 1964 - Alaska Good Friday earthquake knocks out power to MEA members for three days. 2015 - MEA becomes a vertically integrated utility producing, transmitting and distributing all of its own power. COMMUNITY GIVING Being an integral part of the communities we serve has always been important to MEA. 1966 MEA scholarship recipients. Frontiersman Collection Courtesy of Jim Fox. 2015 MEA scholarship recipients. Scholarships As far back as we can find, MEA has been providing our young members with funds to support their career goals. In 1991, the ARECA Education Foundation was established to guarantee funds to students for many years to come. Since then, over $587,328 has been given in scholarships to our youth. In 2015, we awarded scholarships to 21 students in our service area totaling $20,000. MEA bowling team. Year unknown. Sponsorship and Donations In 2015, MEA contributed over $25,000 to over 75 nonprofits. By committing ourselves to helping these organizations grow, we’re building our communities one step at a time. Employees bringing donations to victims of Millers Reach Fire (Big Lake 1998). Sockeye Fire (Willow 2015). Aid When mother nature challenges our service area, it’s important to MEA to be part of the solution. We’ve offered support and aid to members and neighboring utilities. In 2015, we rebuilt destroyed lines and services destroyed in the Sockeye Fire in Willow and assisted with digging outhouse holes for those temporarily displaced from the fire. COMMUNITY INVOLVEMENT Looking back through MEA’s archives, it was hard to find a box of photos that didn’t include MEA employees participating in community events. Being a part of all of the communities we serve is an important part of being a cooperative, as it’s the support of our communities and members that have helped us grow into who we are today. Events We’re proud supporters of local events that take place in all of our communities throughout the year. In 2015, we participated in parades in Wasilla and Palmer and handed out over 75 bags of candy to spectators. 1991 Colony Days parade float. 2014 Colony Days parade float. Energy Education Mrs. Wright’s 5th grade class at Central School. Year unknown. We’re dedicated to educating our youngest members about the most important parts of our industry: Safety and Efficiency. Our Energy Education programs include Safety City (grades 3-6) and Energy Efficiency (grades 7-9) and are free of charge to all members. Last year, over 1500 students received one of our presentations. 3rd grade students at Sherrod Elementary in 2015. Tree Decorating The long-standing tradition of hanging the Christmas lights up in downtown Eagle River is a linemen favorite. Tree decorating in Eagle River. Year Unknown. Lineman Glenn Durkee decorating 2015 downtown Eagle River tree. Alaska State Fair sack races. Year unknown. Upgrading the Palmer Substation. RAILBELT COLLABORATION Alaska Public Utilities Insurance Trust’s Administrative Workshop. Work on plans for system upgrades. MEA’s previous vehicle fleet. Since before Alaska was a state, our memberowned cooperatives have played an essential role in developing the state’s small electric grid and providing a platform for communities to grow from small rural outposts into the thriving cities and towns they are today. As the populations in the service area of each of the cooperatives grow closer, we continue to look for new ways to work together. Today, the Railbelt utilities are investigating how our assets can be better coordinated for the benefit of ratepayers throughout the system. Firing up MEA’s Eklutna Generation Station power plant in 2015 ushered in a new era of Railbelt collaboration. A new power market was developed that allows the electric utilities from Homer to Fairbanks to buy and sell power from each other when it is more cost effective for our members. The Eklutna Generation Station’s 10 smaller reciprocating engines offer a unique product – small increments of power. Not only is this design the most effective for serving our distinctive fluctuating residential load, but it offers other utilities a less costly option for meeting smaller power needs than throttling back their larger engines or having to start one that’s less efficient. The resulting sales provide win-win cost savings for the members of the buying utility and revenue for the seller. Collaboration among the Railbelt utilities in this new market is unprecedented and our members are already seeing benefits through reduced rates; however, there is more work to be done. In 2016, MEA will work with the other electric utilities on the Railbelt to consider ways to collaborate on operating and managing the system. We are open to any solution that will increase reliability and reduce costs for our members. CHARITABLE FOUNDATION UAF Experimental Farm Sutton Community Playground MEA’s Operation Roundup ® program contributed $152,150 back into our local communities in 2015. Each month, bills of members opted into the program are rounded to the nearest dollar. That money is then distributed by a separate non-profit called the MEA Charitable Foundation. With the pennies ($0.12- $11.88) given annually per participant, members have provided the community with improved sports fields, homeless youth support, veteran services, recycling programs, children’s services and so much more. Below is a list of the nonprofit grant recipients for 2015: 4 Paws for Ability Access Alaska Blood Bank of Alaska Early Childhood Partnership of Mat-Su Engine 557 Food Bank of Alaska Friends of Sutton Library Girl Scouts of Alaska Love INC Mat-Su Food Bank Mat-Su Special Santa Program Mat-Su Youth Housing (MYHouse) Meadow Lakes Community Development Museum of Alaska Transportation and Industry Radio Free Palmer Set Free Alaska Sunshine Community Health Center Talkeetna Community Council UAF Experimental Farm United Way of Mat-Su Valley Residential Services Wasilla Area Seniors, Inc. Wasilla Library Association Wasilla Youth Soccer Association, Inc. Mat-Su Miners Radio Free Palmer This foundation would not be possible without the volunteer Board of Directors. This group works tirelessly to help those individuals and organizations whose needs might otherwise fall through the cracks: David Dahms, Chair Barbara Gerard, Vice- Chair Kelly Sidebottom, Secretary Tom McGregor, Treasurer Dee Bownes Linda Menard-Post Sue Smith UAF Experimental Farm- the oldest weather station in the state. (Palmer 2015) Since Operation Roundup ® began in 2011, it has given $617,659.67 back into the local communities we serve. RELIABILITY Line crew in Talkeetna. Credit: Frontiersman Collection Courtesy of Jim Fox. Clearing rights-of-ways. Year unknown. MEA realizes one of the most important things to our members is keeping the lights on. In 2015, we sharpened our focus on reliability and saw a decrease in both number and length of outages. Since 2013, MEA members have seen a 20% decrease in the average length of an outage and a 32% decrease in total outage time. Clearing Clearing is MEA’s single most cost effective way to reduce outages. Over the past 5 years, trees have caused 23% of our total system outages and have accounted for 43% of total system outage time. We improved our vegetation management plan, including development of a 7-8 year clearing cycle focused on high need areas first. In 2015, we focused on clearing in the Meadow Lakes area, Willow, Eagle River, Birchwood/Chugiak and Palmer. Substation upgrades MEA completed upgrades to Hospital substation and Shaw substation (Bogard/Seldon). These upgrades allow us to isolate the impact of outages and paved the way for high-speed communication between substations for quicker reaction time. Wasilla Transmission Line approved After a year of public involvement, the Wasilla Planning Commission approved a route for a new transmission line to meet the area’s significant growth and increase its reliability. Next steps include design and right-of-way acquisition in 2016 with construction possible as soon as 2017. New meters MEA continues to install electronic meters that allow our team to better pinpoint locations of outages and more quickly and efficiently collect meter readings. They can assist in reducing outage time and result in significant cost savings for our members. Underwater cable installation (Big Lake 1965). Credit: Frontiersman Collection Courtesy of Jim Fox. MEA continues to invest in capable, talented employees who are dedicated to keeping the lights on day and night. Special thanks to our line crew, clearing employees, dispatchers, engineers, and all the others who work toward this goal each day. FINANCIALS Balance Sheet As Of December 31, 2015 Statement of Revenue and Patronage Capital Year Ended December 31, 2015 Assets Net Utility Plant $578,278,819 Operating Revenues $142,549,343 Other Property and Investments 22,986,617 Less: Fuel and Purchased Power Costs 65,539,313 Current Assets 37,773,547 Other Operating Expenses 70,534,646 6,986,268 Total Operating Expenses 136,073,959 Deferred Charges Total Assets $646,025,251 Operating Margins 6,475,384 Patronage Capital from Others 2,636,903 Non-Operating Margins, Net Equities and Liabilities Assignable Margins 9,381,133 Equities and Margins $127,699,295 Long-Term Debt, Net 479,341,247 Beginning Patronage Capital Current Liabilities 27,705,701 Patronage Capital Returned Deferred Credits 11,279,008 Ending Patronage Capital Total Equities and Liabilities $646,025,251 268,846 113,917,966 $123,299,099 MEA members may request a complete copy of the audited financial statements by calling 761-9212. Matanuska Electric Association, Inc. Where The Dollar Went In 2015 Matanuska Electric Association, Inc. Where The Dollar Came From In 2015 Fuel and Purchased Power 0.2¢ 4.6¢ -0.2¢ -1.8¢ 0.2¢ 6.6¢ Residential Sales Power Production Expense Maintenance & Operation of Lines Consumer Accounts Expense Comm & Ind Sales (1000 kVa or Less) 32.8¢ 62.4¢ Administrative & General 13.1¢ 0.3¢ Depreciation Public Street & Hwy Lighting Sales 46.0¢ 12.9¢ Taxes Interest on Long-Term Debt Other Electric Revenues Other Deductions 6.0¢ 3.8¢ Interest Income & Other Non-op Margins 7.9¢ 5.3¢ Patronage From Others Margins COMMITTEE THANK YOUS Our cooperative was started by to a group of individuals who worked hard to make something they believed in happen. We continue to depend heavily on individuals with that same attitude and commitment to bettering their communities. Thank you to the volunteers listed below who put hours of time, energy and focus into making our cooperative the best it can be. Scholarship Committee: Election Committee: This committee meets annually, prior to our Annual Meeting, to review applications and select recipients. This committee’s work is mainly done leading up to the Annual Meeting and works with the Election Overseer to ensure that all MEA bylaws and guidelines are being followed with the annual election. DanaLyn Dalrymple Lorriane Jagger-Kirsch Mary Sears Sarah Jansen John Notestine Dana Thorp-Patterson Bylaw Committee: This committee meets quarterly to review, discuss, and recommend changes to the association’s bylaws. Michael Janecek, Chair David Combs Phil Haley Mark Kelsey Dewey Taylor Dan Tucker (Vacant Seat) Sheila Shinn, Chair LaMarr Anderson Tor Anderzen Marian James Dan Kennedy Carrie Klein Dan Tucker If you are interested in joining a committee, please contact Cassi Campbell at [email protected] www.mea.coop Matanuska Electric Association, Inc. P.O. Box 2929 Palmer, AK 99645 Palmer 163 E. Industrial Way 761-9300, 745-3231 Outages: 746-POWR (7697) Fax: 761-9352 Wasilla 1401 S. Seward Meridian Parkway 376-7237, 761-9500 Outages: 746-POWR (7697) Fax: 761-9520 Eagle River 11623 Aurora St. 694-2161 Outages: 696-POWR (7697) Fax: 689-9630
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