| Myths & Facts |
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1. Myth: the best source of electric energy for the Railbelt for the next 50 years is natural gas because:a. Myth: InexpensiveFact: Low cost gas prices are long gone; hydro is now competitive with gas b. Myth: No subsidy for gas Fact: State subsidies are required c. Myth: Gas prices will hold Fact: Gas prices are projected to rise d. Myth: Gas is available Fact: Only as consumers pay more e. Myth: Storage will solve deliverability issue Fact: Only with long term commitments at “market price” f. Myth: Lower environmental impact than coal Fact: True; gas is ½ CO2 impact compared with coal g. Myth: Lower impact than Hydro Fact: Hydro is a fraction of the impact of gas h. Myth: Gas market price volatility can be mitigated Fact: Hydro power is highly predictable because it is independent of market volatility i. Myth: Bullet or spur line far quicker Fact: Hydro facility takes 2-4 years longer j. Myth: Bullet or spur line far less expensive Fact: Bullet line estimate $4 bil; Susitna Phase One estimate $5.5 bil k. Myth: Gas facilities offer low O&M Fact: Hydro is demonstrated to cost less operations/maintenance over the long term
2. Myth: Hydroelectric power is not feasible becausea. Myth: ExpensiveFact: Over 50 year period, hydro is cheaper b. Myth: Environmentally risky Fact: Managed to enhance fisheries c. Myth: Ruins salmon runs: Fact: No salmon runs above Devils Canyon d. Myth: Takes too long Fact: Phase I can be in place in 12 years e. Myth: Too big Fact: Phase I to supply 50% of current load f. Myth: Locks us in Fact: Project is phased to meet demand g. Myth: Politically risky Fact: Less risky for Alaskan consumers h. Myth: Wrong location Fact: Located near main Railbelt Inter-tie i. Myth: Stand alone facility Fact: Wind and gas resources can be tapped j. Myth: Sedimentation issue Fact: Sedimentation can be managed
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