HomeMy WebLinkAboutCopper Valley Notes 1995Copper Valley Intertie Notes
Wednesday, November 8
3:30p Rep. Gene Kubina
Phone (Home) 835-2695
AIDEA to place phone call.
Thursday, November 9
10a Sen. Georgianna Lincoln (confirmed). Is in town for Youth Conference.
Staff contact: Annie
Phone: 465-3732
4:30p Rep. Scott Ogan; Phone: 376-4866;
Staff contact: Sandra
Rep. Ogan will come to AIDEA for meeting
Sen. Lyda Green; Phone: 376-3370
AIDEA to teleconference meeting with Staffer Brett Huber.
Others:
Senator Drue Pearce; Phone: 258-8185; spoke with Staffer Craig Johnson.
Representative Gail Phillips; Phone: 258-1642; Staff will let her know we extended the offer; send
report. Will call if she wants briefing.
Senator Bert Sharp; Phone: 452-7885; Will be out of town. Please send report. (Marilyn)
Rep. Mark Hanley; Phone: 258-8192; Left message on recorder. Call returned asking AIDEA to send
report. 716 W. 4th Ave., #300; Anchorage, AK (01).
ADDRESSES ATTACHED FOR PEOPLE WHO REQUESTED COPIES OF THE REPORT (CORRESPONDENCE).
Sutton-Glennallen Report Mailing List
Nancy Berbells
c/o Sutton Library
P.O. Box 266
Sutton, AK 99674
Phone: 745-4467
Request thru DCRA. KO talked with Nancy on 8/15/95
David G. VanCleve
Chickaloon Community Council
P.O. Box 1145
Chickaloon, AK 99674
Phone: 745-5038
Letter dated 8/14/95
Warren J. Keogh
P.O. Box 1166
Chickaloon, AK 99674
745-1155
Letter dated 8/12/95 and 8/19/95
Nancy Bertels
Librarian
Matanuska-Susitna Borough
P.O. Box 266
Sutton, AK 99674-0266
Faxed letter 8/17/95
Katherine E. Wright
Secretary
Glacier View Community Council
HC03 Box 8496
Palmer, AK 99645
ko:reports:sutton
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Author: Marilyn Heiman at Gov_Juneau_Capitol
Date: 11/6/95 5:09 PM
Priority: Normal
TO: David Ramseur
Subject: People for stakeholders meating
ee a a etn lime ima iittee Message Contents 9-999 ---- sence wenn n ene -----~------
In addition to Kavin Harun, Chris Rose and Robin McLean I
would recommend the following:
Cli£f£ Eames
Exic Myers
Mark Fostar
Kay Brown
David Pinkelatein
I have had several requests to see the report before the
maating, even if it is 1 day or a couple of hours.
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State of Alaska - Department of
Community and Regional Affairs
ee KNOWLES Mike Irwin iovernor Commissioner P.O, Box 110001 907-465-4700 Juneau, Alaska 99611-0001 NEWS RELEASE FAX: 907-466-2948
FOR IMMEDIATE RELEASE: Nov. 9, 1995
UPDA P Public Meetings Planned In Affected Communities
The proposed Sutton-Glennallen electrical intertie appears economically feasible,
according to a consultant’s study, but only if certain conditions are in place such
as a commitment to buy power by a major Copper Valley user and a financing plan.
Alaska Community and Regional Affairs (C&RA) Commissioner Mike Irwin, limited
by state law to deciding the intertie’s future based on economic feasibility, said
before the line is constructed, environmental studies must ba completed, the line’s
route needs further review and affected Alaskans should have adequate
opportunity to voice their opinions.
"If all the conditions are in place, building this intertie to provide lower cost power
to the affected Alaskans and to facilitate economic expansion appears to make
economic sense,” Irwin said, upon receipt of a consultant’s updated study of the
project. "Over the next several weeks, we'll be holding public meetings to see if
Alaskans agree or have other suggestions about this project’s future.”
This week, the engineering consulting firm CH2M Hill, presented an updated
economic report to a Knowles administration working group represented by four
state agencies, The study says that based on key assumptions and under certain
conditions, the intertie is feasible. After studying the report, the working group
found it credible and recommended to Irwin that the project proceed, but only if
several standards are met. They include:
* A power sales agreement between Copper Valley Electric Association and the
Valdez refinery Petro Star or another major power user. The two companies and
the Chugach Electric Association recently reached such an agreement. In addition,
the working group proposed a credit enhancement be provided for Petro Star’s
payment obligations.
* Copper Valley and Chugach electric utilities agree to participate jointly in the
project to help share the project’s financial benefits and risks. The general
managers of the two companies already have tentatively agreed In principle to such
joint participation.
-more-
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Intertie -2-2-2- November 9, 1995
* Alaska Public Utilitias Commission approval of any power sales agreements.
“ An updated finance plan must be in place, subject to C&RA approval.
* Expenditure of funds from a $36 million state loan approved by the 1993
Legislature for the project must be repaid, even if the project is never completed.
* Environmental conditions are fully complied with, including completion of an
environmental study and consideration of alternate routing to minimize public
concerns. All environmental and financial permits and plans must be in place before state funds are released for construction.
Community and Ragional Affairs officials will hold public meetings in coming weeks
in Anchorage, Sutton, Glannalien and Valdez. After the hearings, Irwin will make a
final decision about whether to proceed with the project.
The working group includes officials from the state departments of Natural
Resources, Transportation and C&RA and the Alaska Industrial Development and
Export Authority.
In 1993, the Legislature appropriated a $35 million, no interest, 50-year loan to
help construct the intertie, which then Gov. Walter Hickel signed into law. The
measure also included a requirement for a project feasibility study and plan for
finance satisfactory to the C&RA commissioner. In July 1994, Hickel’s CRRA
commissioner found the studies satisfactory and approved the loan.
Shortly after taking office, because of changing conditions and other factors, Gov.
Tony Knowles asked this working group to review certain issues related to the
financial feasibility of the intertia. That raview was completed this week by CH2M
Hill, under contract to AIDEA.
The new review says the intertie is viable from a resource cost standpoint,
assuming medium load growths in the affected area. Greater load growth makes
the project increasingly economically sound. Additional large power users in the
area appear likely, such as construction of major tourist facilities.
The study also reaffirmed that other alternatives, such as a Silver Lake
hydroelectric project or ganerating power with coal, are more costly than the
intertie. Currently, residential electric consumers in the Glennallen area pay some of
the highest power rataa in the region, about 18.4 cents per kilowatt hour.
Anchorage ratepayers pay about 9 cents per kilowatt hour.
Copies of the updated feasibility raport and a public meeting schedule are available
from the Department of Community and Regional Affairs in Anchorage (269-4500)
or Juneau (465-4700). -30-
Contact: Commissioner Mike Irwin, 269-4510 (Anchorage); 465-4700 (Juneau).
41-@8-1995 17:28 919072697463 ANCHORAGE GOVERNOR P.@2
State of Alaska - Department of
Community and Regional Affairs
TONY KNOWLES Mike Irwin Governor Commissioner P.O. Box 110001 907-465-4700 Juneau, Alaska 99811-0001
NEWS RELEASE FAX: 007-465-2848
MEDIA ADVISORY Nov. 8, 1995
ME N RTI TH
A media briefing on the proposed Sutton-Glennallen intertie will ba held
Thursday at 12:30 p.m. in the offices of the Alaska Industrial Development and
Export Authority, 480 West Tudor. The briefing will focus on a new economic
review of the project by an engineering consulting firm.
The briefing will be conducted by officials of AIDEA and the state
Department of Community and Regional Affairs, which by state law has jurisdiction
over the intertie projact.
Copies of the economic report will be available at the briefing.
For further information, contact Commissioner Mike Irwin at 269-4510 or
Randy Simmons of AIDEA at 561-8050.
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November 2, 1995
Mr. Intertie Interest
123 Nowhere Street
Middle of nowhere, AK 99
Dear Mr. Interest:
Thank you for contacting my office regarding the proposed Sutton-Glenallen intertie. I
appreciate hearing your views on this issue and wanted to provide you an update about
the current status of the project.
As you may know, the Alaska Legislature in 1993 approved a $35 million, 50-year loan
to help construct the intertie, which then-Governor Walter Hickel signed into law. The
measure containing the loan also included a requirement for a feasibility study for the
project, to be approved by the commissioner of the state Department of Community and
Regional Affairs, In July 1994, Governor Hickel’s commissioner found the project
feasible. Shortly after taking office, because of changing economic conditions and other
factors, I asked for an updated feasibility review. That updated review is nearing
Y completion by a ET pw anenne Bits Saeet eeaIoEty Consul “y Swm, CH2M KU,
Gnu Hell's Once completed, AIDE AAs report about the economic feasibility of the project will be
delivered to Community and Regional Affairs Commissioner Mike Irwin, and a small
review team represented by three other state agencies. Commissioner Irwin intends to
K seek the public’s comments on the project with a series of vubtielsese in affected
areas before issuing his decision about whether to proceed with the intertie project.
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The 1993 Legislature’s action was clear that the Community and Regional Affairs
commissioner, whose department includes the Division of Energy, is responsible for
deciding the feasibility of this project. The Legislature said: "The appropriation made
(for the intertie) is contingent upon the completion of a feasibility study and finance plan
satisfactory to the Department of Community and Regional Affairs as set out in former
AS 44,83.181,"
It is this administration's intention to fully comply with the Legislature's directives and to
give affected Alaskans another opportunity to express their views on this project. As is
the case with all major development projects facing this administration, before proceeding
KW we will insure that it is Leal ee Lath sound and that Alaskans have ample
opportunity to discuss it.
Thank you again for your interest in this issue.
Sincerely,
Tony Knowles
Governor
TK/JV/PF/CB 0114 Rural affairs
intertie.con
MEMORANDUM
TO: Riley Snell, a
Executive Director 2. ke ‘i LL, J h J, tena
FROM: D. Randy Simmons, S. Says what if 2445
Development & Finance Manager
DATE: November 1, 1995
RE: Sutton Glennallen Intertie Process
This memo will outline the recommended process and timeline for dealing with the CH2M Hill
Report on the Sutton Glennallen Intertie. It will cover the process of the working group that was
appointed by the Governor to look at potential changed conditions as they related to the 1994
Intertie Study, as well as the process for DCRA once they receive recommendations from the
working group.
Working Group Process and Timeline
There are four steps that the working group or staff need to complete prior to the fulfillment of the
it’s mission. They are:
1. Finalize the CH2M Hill Report. This task is in process and should be complete by the 6th of
November.
2. Meet with Alyeska. Staff has had final meetings with all financial feasibility stakeholders with
the exception of Alyeska. Alyeska requested a meeting prior to releasing findings of the CH2M
Hill Report. This meeting should take place prior to November 8.
3. Working Group Recommendations. The working group should discuss the report and forward
recommendations to Mike Irwin, DCRA Commissioner by November 87 7
4. Briefings. Immediately following the forwarding of recommendations by the working group, I
believe we should schedule briefings for environmental representatives, IBEW representatives and
interested legislators. The purpose of the briefings would be to deliver the report and brief the
parties on its’ contents. There would be no testimony taken, but questions would be answered as
they related to the report. Public testimony would come later under the DCRA process. I believe
this is the fairest way to let the most interested parties get an understanding of the working groups
charge and the report that ensued. These meetings should be scheduled for the afternoon of
November 8 and morning of November 9.
I believe we should also consider a press release from the Governor’s office at this time. The
release should explain what the next steps of the process will be and that the working groups
recommendations are just that, recommendations and not a final decision. Public meetings on the
report will follow.
DCRA Process and Timeline :
DCRA would have a two step process. BY |
1. Public Meetings. DCRA should hold public meetings on the financial feasibility of the intertie.
The purpose of the meetings will be to brief the public on the CH2M Hill Report and solicit public
testimony. DCRA is the proper entity to hold the meetings and not the working group. It is likely
there will be public testimony in other areas beyond the intertie’s financial feasibility, which was
the charge of the working group. CH2M Hill and AIDEA staff should be available for
Commissioner Irwin at the meetings. The meetings would be held in Anchorage, Sutton,
Glennallen and Valdez. It will take about 2 weeks to schedule and hold the meetings. Based on
this schedule, they should be completed by November 20.
2. Final Decision. Based on the CH2M Hill Report, working group recommendations and public
testimony, Commissioner Irwin should be able to make a final determination on the financial
feasibility of the intertie by November 24. A press release should be prepared at this time.
There are numerous other steps that will have to occur in the intertie process. Outlining these steps
is best left under the guidance of DCRA.
H:ALL/RSIMMONS/SUTPROC.DOC