Energy

......................................................................

Southeast Conference & Energy Hearing

Two pieces of legislation were reviewed at the recent session of the Southeast Conference, one creating a Department of Energy, and one establishing a statewide energy policy. HB 218 centralizes those entities that are working on Alaskan energy issues into one department. They include home weatherization, the Alaska Natural Gas Development Authority and the Alaska Energy Authority. The new department would administer a statewide energy plan including the retrofit of rural communities to sustainable sources of power.

Mayor Heinrich Kadake urged legislators to move forward on the Petersburg to Kake intertie. The population of Kake has fallen by more than 50% in recent years, from approximately 1000 residents to 450 today. Construction of this line will tie into the recently completed Swan Lake to Tyee project which will produce hydropower for the communities of Ketchikan, Wrangell and Petersburg beginning later this fall.

Mayor Albert Howard of Angoon also spoke. Electricity rates 5 and 6 times higher than Juneau rates are driving the push to get the Thayer Creek project underway. Fully designed, the project is awaiting construction funding and permitting and will be a terrific boost to Angoon when it is completed.

On the Canadian side of the border, Prime Minister Stephen Harper announced on September 16 that funding for the construction of the Northwest Transmission Line in Northern British Columbia has been approved. This is particularly good news from the standpoint of Alaska being able to eventually tie into the line, which will be within 40 miles of the community of Wrangell, to sell surplus power to the North American grid.

AEL&P’s Lake Dorothy project is a great success story. Surplus power sold to the Greens Creek Mine made its’ construction financially viable. The Mine substantially reduces monthly power costs, while converting to a cleaner energy source, and Juneau ratepayers benefit with another reliable source of hydro energy. In nearby communities of Skagway and Gustavus, new hydro projects have also recently come on line.

As we arrived at the Haines airport ready to board a Wings flight home, the weather changed dramatically and all flights were canceled Wednesday evening. Thirty or more participants, including legislators from Fairbanks, Anchorage and Bristol Bay, hurriedly tried to book another night in Haines. Some got rooms, some did not.

It is situations like these that remind me how important a road link would be.

Haines is a great town, spectacularly beautiful with a great variety of unique art, museum and cultural events. A recent renovation of the Halsingland Hotel has preserved its’ old world charm, and many of the buildings at the Fort have also been upgraded. If you make it up to Haines, I highly recommend dinner at the Fort Seward Lodge. It is excellent.

__________________________________________________________________________________

Federal Stimulus Funds on Energy

There has been considerable interest in the news lately over Governor Palin’s rejection of the $28.56 million in federal stimulus funds for energy. Talk of a special session is brewing, and legislative leaders recently sent a letter to Secretary Chu to request clarification. The language in the original stimulus bill is clear as to state responsibilities and requirements to institute international energy code standards in communities that have building code authority. However, the state of Missouri has been granted some flexibility to these requirements leaving the door open for Alaskan leaders to seek additional clarification. For your information, I am attaching correspondence from Secretary Chu to the Governor; the official response from the Governor’s Chief of Staff, Mike Nizich, and a letter from legislative leaders on the same subject.

Federal Stimulus Energy_Nizich_Chu_Ltr_2009.pdf (2.69 mb)

DOE Secretary Letter.pdf (98.17 kb)

Legislative leaders examine veto override option.pdf (60.51 kb)

_______________________________________________________________________________________________

House passes resolution urging hydroelectric power classified as renewable 

The Alaska State House unanimously passed House Joint Resolution 25 urging the United States Congress to classify hydroelectric power as a renewable energy source.

Currently, the federal government does not recognize hydroelectric power as renewable or alternative. Without the recognition of the federal government, federal funding options are closed to Alaska for hydroelectric projects. The passage of HJR 25 is an important step forward for Alaska in order to continue progressing our hydroelectric power infrastructure.

HJR 25 now moves to the Senate for consideration.

_____________________________________________________________________________________