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HomeMy WebLinkAboutMarshall Waste Heat Correspondence, Memos 1985BILL GHEFFIELO — 2\ STATE OF ALASKA , STOLL) IL piesst POSER AUTHORITY JUNEAY February 22, 1985 Mr. Vincent T. Beans President Alaska Village Electric Co-operative, Inc., Board of Directors 4831 Eagle Street Anchorage, AK 99503 Dear Mr. Beans: I have received your correspondence of January 31 regarding the capital project request by the Alaska Village Electric Co-operative. Thank you for informing me of your organiza- tion's support of the twelve programs to convert village electrical systems to overhead distribution. As you may be aware, I had proposed a Fiscal Year 1986 operating and capital budget for the State of Alaska total- ing $2.97 billion in general funds. With declining oil prices reducing our projected revenue, we will not know with certainty what amount will be available for the capital budget until we receive our March revenue forecast. We do know, however, that the total capital budget will be far less than it has been in recent years. Funding for the projects requests you have submitted has not been included in the proposed budget. In order for the projects to receive consideration throughout the budget process, it is important that the communities submit them as community priorities. I encourage those communities that rate the system conversion project as a top priority to work closely with their legislative delegation, as well as with the appropriate State agencies. You may be assured that all projects included in the final FY 86 budget presented to me by the Legislature will receive full consideration. I have referred a copy of your letter to the Office of Management and Budget, as well as to the Alaska Power Authority, for their information and review. Xe. Ed Moms Sudan White Mr. Vincent T. Beans -2- February 22, 1985 Again, thank you for providing me with this information on your request for funding. Sincerely, /s/ Bill Sheffield Bill Sheffield Governor cc: Jay Hogan, Associate Director Division of Budget Review Office of Management and Budget w/attachment Larry Crawford, Executive Director Alaska Power Authority Department of Commerce and Economic Development w/attachment ay 4831 EAGLE STREET, ANCHORAGE. ALASKA 99503 TELEPHONE: (907) 561-1818 January 31, 1985 Mr. Bill Sheffield, Governor Office of the Governor Pouch A DOA rr Rete Juneau, Alaska 99811 ~ eS Dear Governor Sheffield: Alaska Village Electric Cooperative serves 48 cities across Alaska with a total population in excess of 15,000. AVEC provides electric service to a majority of communities in Western Alaska with populations from 125 to 800 citizens. The Cooperative has in the past received the large majority of Cooperative money for construction of generation and distribution facilities from REA in the form of loans. This adds an element of interest cost to our KWH retail rates. In addition, the loan funds must be repaid. Many villages and cities have received numerous grants, sometimes ranging into the millions of dollars, for electrical facilities. AVEC originally constructed distribution systems with underground and later surface utilidor in some areas. While well intentioned at the time with funds available, both types of systems have proven to have reliability or maintainabil- ity limitations in the arctic environment. Damage due to ground cracks and frost heaving action causes safety problems to develop. Accordingly, AVEC has been subject to some criticism from regulatory agencies as a result of practical problems associated with providing service in remote village areas, necessitating accelerated conversion action to reduce future problems. Many consumer service entrances were also found to be substandard by investigators and subjects the village consumers served by regulated utilities to immediate disconnection under a growing rigid interpretation of statutes/regulations by State agencies in small villages. The Cooperative has started a program to convert to overhead distribution to improve safety and reliability. The cost to complete this is estimated to be some $15,000,000 in current dollars. We therefore request that AVEC receive a grant to the Cooperative in the amount of $3,890,000 in the new state budget as a first installment on this project with similar annual increments each future year until this task is satisfactorily completed. Included in the list of conversion projects scheduled with the first installment are as follows: Mr. Bill Sheffield, Governor January 31, 1985 State of Alaska Page Two of Two Estimated City/Village Cost Shishmaref $454 ,000 Selawik 630,000 Scammon Bay 258,000 St. Mary's 2nd Phase, St. Mary's Airport Line, 506 ,000 Pitkas Point Intertie, Pitkas Point Stebbins 263,000 Holy Cross 2nd Phase 263,000 Alakanuk 2nd Phase 188 ,000 Marshal] 109,000 Noatak 300 ,000 Koyuk 245,000 Elim 264,000 St. Michael 410,000 Total $3,890,000 This project will provide long range benefits to the village people in many communities with more reliable and longer life electrical facilities. Accordingly, the Board of Directors of Alaska Village Electric Cooperative unanimously forward this request and encourage the strongest support of the Administration and our elected officials to ensure this receives high priority and adequate funding. |. OF THE BOARD: VE aa Vincent T. Beans, President AVEC Board of Directors cc: Sen. Frank Ferguson Sen. John Sackett Rep. Al Adams Rep. John Binkley Rep. Jack Fuller Rep. Kay Wallis CITY OF SHISHMAREF, ALASKA RESOLUTION 85-1 A RESOLUTION SUPPORTING THE ALASKA VILLAGE ELECTRIC COOPERATLVE'S REQUEST FOR FUNDS TO CONVERT THE URD SYSTEM TO OVERHEAD IN SHISHMAREF, ALASKA. WHEREAS, the City of Shishmaref receives it's electrical power thru an agreement wich Alaska Village Electric Cooperative, 4831 Eagle Street, Anchorage Alaska, and : a WHEREAS, the current system intact is an overgound "URD'' system, inadequate to serve the City of Shishmaref's needs because of numerous failures within the System, causing power outages throughout the City, and WHEREAS, che Alaska Village Electric Cooperative has requested monies from the Stace of Alaska to convert the current URD system to an overhead system in the City of Shishmaref, Alaska, NOW THEREFORE BE IT RESOLVED THAT the City of Shishmaref City Council fully supports the Alaska Village Electric Cooperative's request for funding to convert the current URD system to a more reliable overhead system. PASSED and APPROVED THIS 2A7 day of \.s mene, 1985 beth Can YOR C Laer, = KD) lic ATTEST: CITY CLERK oie cas