HomeMy WebLinkAboutHoly Cross Waste Heat Correspondence Memos 1985BIL FFIELO LGHE if — ’ SAVE NOR Pn
Ee Shiv EL
ae z
State OF ALASKA vies i
OFFICE OF THE SQVERNOR Aue? PO f20 AUTHORITY
JuNneav
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.
XC. Ed (Moms
Sunde Whale
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 t Bee sa
4831 EAGLE STREET, ANCHORAGE. ALASKA 99503
TELEPHONE: (907) 561-1818
January 31, 1985
Mr. Bill Sheffield, Governor
Office of the Governor
Pouch A SA eR Rem
Juneau, Alaska 99811 , ee tr 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 a
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 with Alaska Village Electric Cooperative, 4831 Eagle Street, Anchorage Alaska, and
>
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 State 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.
: a] PASSED and APPROVED THIS A= day of Nias ,» 1985
Cae NO eee ATTEST: CITY CLERK