| Alaska Ratepayers Letter to Governor |
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Alaska Ratepayers, Inc. Alaskaratepayers.org Affordable and Predictable Electric Rates for Alaska
December 29, 2009
Honorable Sean Parnell Governor State of Alaska State Capital Juneau, AK
Re: Affordable and Predictable Electricity
Dear Governor Parnell:
Alaska Ratepayers is a non-profit, educational organization representing energy consumers throughout the State. Our goal is affordable and predictable electric rates for Alaskans. We firmly believe such a goal cannot be achieved without a substantial State investment in hydroelectric power. From the perspective of our children and grandchildren, over-reliance on in-state natural gas for Alaska’s in-state use is a perilous path to take. We have seen what the past decade’s roller coaster gas pricing and deliverability crisis has done to the average consumer. Statesmanship and leadership are absolutely essential as you guide the State through the process of creating a lasting energy strategy. With full recognition of your obligation to meet the energy needs of all of Alaska, we believe there are ways to extend benefits from the State’s investment in such a program to rural electric consumers. Alaska Ratepayers asks you to consider and propose the following: 1. Adopt a policy to diversify the State’s sources of power with emphasis on large hydro; and take advantage of extensive scientific, technical and economic studies of Susitna hydro in hand (an asset worth at least $325 million in today’s dollars); and, 2. Fund a six to nine month fatal flaw analysis to determine the feasibility of permitting and constructing large hydro alternatives: Chakachamna or Susitna Phase I. Chakachamna: specifically, we request the fatal flaw analysis determine if the significant fisheries and technical issues would prevent it from being permitted. In addition, the cost analysis should be refined and sufficient contingency allowed for the very long and difficult tunnel, which is the centerpiece of the proposed project. Susitna Phase I: we request sufficient funding be provided to determine the “right size” for the project and determine if there is a fatal flaw in the flow release needs to sustain and even enhance critical fisheries downstream. State contribution: for both projects the long term power cost curve should be developed utilizing extended financing and a State contribution which will lead to low initial cost per kWh for individual consumers and future business. Federal contribution: for both projects an effort should be made immediately to identify and secure commitments for federal contributions, through grants and loans and accelerated processing of permits and licenses. Decision Document: all of the above factors should ultimately culminate in a “Decision Document” as early as 2011, which will determine which hydroelectric project will provide the best long term solution as part of the 50% renewable power contribution. As members of three major electric cooperatives (see below) and as volunteers to our non-profit organization, we respectfully request an opportunity to personally present why this proposed approach is critical to your Administration’s legacy. Please feel free to contact me directly on my cell phone at 907-952-1502. Thank you for your consideration.
Respectfully,
Richard G. Wilson Chair 907-952-1502
Cc: Honorable Gary Stevens, President of the Senate Honorable Mike Chenault, Speaker of the House Honorable Lyman Hoffman, Co-Chair, Senate Finance Committee Honorable Bert Stedman, Co-Chair, Senate Finance Committee Honorable Bill Stoltze, Co-Chair, House Finance Committee Honorable Mike Hawker, Co-Chair, House Finance Committee Honorable Lesil McGuire, Chair, Senate Special Committee on Energy; and Co-Chair, Senate Resources Committee Honorable Bill Wielechowski, Co-Chair, Senate Resources Committee Honorable Charisse Millett, Co-Chair, House Special Committee on Energy Honorable Bryce Edgmon, Co-Chair, House Special Committee on Energy Honorable Craig Johnson, Co-Chair, House Resources Committee Honorable Mark Neuman, Co-Chair, House Resources Committee Mike Nizich, Chief of Staff Steve Haagenson, Executive Director, Alaska Energy Authority Jim Strandberg, Alaska Energy Authority Gene Therriault, Senior Policy Advisor, In-State Energy Alaska Ratepayers, Inc., Directors and utilities to which they belong: Rich Wilson, Chugach Electric Association Bruce Davison, Chugach Electric Association Jim Gill, Chugach Electric Association Joe Henri, Chugach Electric Association Frank Mielke, Matanuska Electric Association Bill Noll, Chugach Electric Association David Rohwer, Golden Valley Electric Association |