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HomeMy WebLinkAboutSutton-Glennallen Newspaper 1995 Q Quality Services (907) 274-1056 JAN 1 § 1995 ate Valdez Vanguard Client No. %O0 A Intertie vs. coal battle heats up 2ICA 302- Yash 2 Bo By Mike Jakiemiec 7=° “5° Valdez Vanguard Alaska Cogeneration Systems Inc. won a round recently in its fight with Copper Valley Electric Association as to who should pro- vide future electricity to Valdez res- idents, said ACSI President Frank Bettine. Energy... 2Itn Boa ¥264 From page 122° /%< ¥soK £s7¢ to negotiate with us, he said. “We feel like we're gradually winning the legal battle.” ACSI and CVEA are still in liti- gation. ACSI also filed an injunction in federal court to prevent the state from releasing the $35 million loan the legislature approved for the construction of the intertie. That case is still being consid- ered by federal Judge H. Russell Holland. Bettine said he doesn't expect a decision soon. Hurless said CVEA has peti- tioned Holland for the right to inter- vene in that case. If the petition was granted, “we would ask the judge to reconsider his ruling according to testimony and evidence provided by CVEA,” Hurless said. He said Holland could rule on the petition for intervention The Alaska Public Utilities Commission ruled that CVEA had to provide ACSI with “avoided cost” information by Jan. 9. CVEA has done so, said General Manager Clayton Hurless Monday. “The costs were filed Jan. 9. APUC will review and test the validity of them,” he said. Bettine said the ruling was sometime this week. In the meantime, Bettine is try- ing to set up a public meeting in Valdez to inform people about ACSI “We want to give a detailed description of the plant and let people know what we could offer the community,” he said. “It would be for the city council, city admin- istration, CVEA board members and the general public.” An appearance before the Valdez city council Tuesday night had to be postponed because of other company business, said Bettine. He is trying to re-sched- ule the meeting for sometime in the first or second week of February. i In a letter sent to City Manager Doug Griffin Dec. 28, Bettine said the cogeneration project would, among other things: * provide low cost district heat- ing from waste heat generated at the coal plant; encouraging for ACSI, which is seeking to build coal plants in Valdez and Cordova as alternatives to reducing energy costs, rather than the Sutton-Glennallen intertie. which CVEA favors. “We feel that’s pretty strong lan- guage from APUC that CVEA has See Energy, page 2 * provide oily/solid waste dis- posal; * stimulate utilization of the Alaska Railroad, ports and Prince William Sound barge services; * and reactivate Alaska’s bitu- minous coal industry. Two coal mines in the Mat-Su area owned by ACSI would provide the coal for the plant if the project takes wing. Bettine said the plant would be equipped to meet all clean air stan- dards. “When we get through with our plant, it would have the best avail- able control technology,” he said Monday. Another benefit would be eco- nomical, he added. “Our plant would create about a dozen high-paying, long-term jobs,” he said. CVEA says the intertie would be a cleaner operation environ- mentally and would also reduce residents’ monthly electric bill. Company Asks For Intertie Funds To Be Reassigned week goa Vs208eH Continued from Page 1 eration Projects as the best value for Prince William Sound communities and the state of Alaska.” Bettine and Randy Hobbs, another principal in the com- pany, were scheduled to brief the city council Tuesday night on their plan but called to cancel, citing a conflict in their schedule. Hobbs is the holder of op- tions on coal mine deposits in the Sutton area which he is seeking to develop. In his letter to Griffin, Bettine said Cogeneration Systems Inc. is seeking the support of the Valdez Cham- ber of Commerce and the Economic Development Council to support their ef- forts to divert the state funds to their project. The chamber of commerce, said Bettine, has been asked to organize a public meeting for mid or late January to generate grass roots support. Inanattachmentto his let- ter to Griffin, Bettine listed 10 benefits to coal plant pro- posal, including lower-cost energy, jobs creation, avoid the environmental damage the powerline would create, provide a disposal method for oily and solid waste, and other benefits. Bettine and Hobbs met with Griffin and other city workers on Dec. 22 tolay out their proposal with Mike Easley of Copper Valley Elec- tric also present. Griffin was non-commit- tal on the outcome of the meeting. “There would be many problems with siting (of a coal plant) and enviromental problems too,” said Griffin. wv Services Q: y SO) (907) 274-1056 JAN 2 0 1995 Date SITKA SENTINEL Client No. YQcA Anchorage Firm Eyes Loan for Power Plants * Ye 2IOM 307- 0330 By ALLEN BAKER Associated Press Writer ANCHORAGE (AP) — An An- shorage-based company with devel- »pment leases for a coal mine near Sutton wants to build coal-fired gen- erating plants in Valdez and Cordova — preferably with the $35 million \o-interest loan the Legislature allo- ated for a power transmission intertie ‘rom Glennallen to Sutton. Randy Hobbs of Alaska Cogenera- ion Systems Inc. says he’s ready to ouild a power plant in Valdez with orivate financing. He thinks his plan nakes good economic sénse. He says (s more practical than shipping pow- sr to Valdez from the Railbelt via the ntertie. His company has obtained an njunction from U.S. District Judge H. Russel Holland that now prevents the state from releasing the money for the ntertic. Hobbs has been working for several vears to reopen the old Evan Jones coal mine near Sutton. The mine was \ major coal producer from the 1920s intil 1968. Hobbs says he’s ready to 20 into small-scale production of ligh-grade, low-sulfur bituminous 2oal within the next year. But he’s thinking bigger. Coal-fired power plants around Alaska would give him markets for his coal, and he says the plants would be cheaper and less polluting than cur- rent diesel generating systems. Hobbs plans to load the coal into standard 20-foot shipping containers at the mine and truck it to Palmer. The containers would be Joaded onto train cars and shipped to Whittier or An- chorage, where they would be trans- ferred to barges. Hobbs says he can use his coal to fucl modem plants with low emissions at Valdez, Cordo- va and perhaps Kodiak. The plants would provide steam and hot water for heating as well as electricity, Hobbs said. As an added enticement, he's offer- ing to ship solid waste from Cordova and Valdez out of town in the empty coal-shipping containers. He would deliver the waste to the Matanuska- Susitna Borough landfill near Palmer. Coidova is running out of landfill ' space, and Mat-Su Borough officials say they'd welcome the business. Cordova, unlike Valdez, is not con- nected with the Copper Valley Elec- tric Association system, and so would not benefit from the intertie plan. Consumers there pay about 17 cents a kilowatt-hour for power from a dicsel generator. And that includes a state subsidy under the power cost equal- ization program. Without the state subsidy, Cordovans would pay about 23 cents a kilowatt-hour for their power, said Cordova’s city manager, Scott Jahnke. With that subsidy likely to dry up in the future, Cordova advertised na- tionally for a company that could pro- vide power for something in the range, of 10 cents a kilowatt-hour, said; Jahnke. Three proposals were received and are being evaluated by an independent engineer, he said. One was from Hobbs’ company for a coal-fired plant. The two others call for hydro- electric dams. Hobbs says his company can pro- duce power in Valdez and Cordova in the range of 10 cents a kilowatt-hour if he can get the intertie money divert- ed to his project. The two plants could be built for less than $35 million, he says. : Hobbs says his project also makes sense with conventional financing. And he’s discussed his proposals with the Alaska Industrial Development and Export Authority. That state agency has encouraged him to apply for a loan, Hobbs said. “There are several loan programs available to us,’’ Hobbs said. “Our project will have a lot more equity than is normally required— we will far exceed the 20 percent equity that’s required for such financing.” Hobbs says he's already invested about $1.8 million in development work and equipment purchases for the Evan Jones mine and a_ smaller, open-pit mine near Chickaloon, His partners in Alaska Cogeneration are Frank J. Bettine, a lawyer and engi- neer, Bill Steigers, an environmental engineer, and Mike Oswald, a me- chanical engincer who has worked on advanced coal-burning technology, Hobbs said. Getting the intertie money trans- ferred to another project could be tough. Clayton Hurless, general man-: ager of Copper Valley Electric Asso- ciation, says the Legislature has gone on record as saying the $35 million is available for the intertie only. And so far the administration of Gov. Tony Knowles hasn’t decided to withdraw the stamp of approval given the project by Edgar Blatchford, ‘the former commissioner of community and regional affairs. “I'm not aware of any effort to re- visit the whole thing — as long as the public process has been taken care of,” said Bob King, a spokesman for Knowles. Hurless of Copper Valley has been a firm advocate of the power line, which he thinks will cut electricity costs substantially for his customers. Homeowners in Valdez now pay about 18 cents a kilowatt-hour for their power, and those in the Copper River Basin pay 21 cents, he said. HKeteLae 9 dot, ew S-Ni 1/20/95 Farr bards Shall His customers get no state subsidy, Hurless said, and much of the power is produced by aging and obsolete diesel generators in Glennallen. The Solomon Gulch hydroelectric project near Valdez also serves the co-op. Hurless says the consultant who examined alternatives to the intertie evaluated both a coal plant in Glen- nallen and Hobbs’ plan for a Valdez plant, and found neither was competi- tive economically. The Valdez plant ‘‘was analyzed in the final study and came out as one of the two highest cost alternatives,” Hurless said. Hobbs says the analysis of his plant in the study was flawed. Mews i]eo/45 Arichorage Dad. Nass 1] 20/95 Quulity Servic ) (907) 274-1056 Dove JAN 2 5 1995 Valdez Star Client No. 420 A @ ‘GB Dhila Kubina Says Coal Co. Push For Railbelt Funds Could Put Whole Project At Risk 210E 420A ANCHORAGE—Ffforts by an Anchorage-based en- ergy company to take con- trol of a $35 million zero- interest stateloan to construct coal-fired power plants in Valdez and Cordova may jeopardize the entire loan package. That’s the view of state Representative Gene Kubina who says any attempt to di- vert the public funds to a private company “would be playing into the hands of those opposed to it.” The $35 million no-inter- est loan was approved reluc- tandy by the state legislature last year to help construct a Sutton to Glennallen powerline for the benefit of Copper Valley Electric con- sumers. Frank Bettine, president of Alaska Cogeneration Systems Inc., is now secking to divert the $35 million to his com- pany to build coal-fired power plants in Valdez and Cordova. The idea of handing over the money to Alaska Cogen- eration Systems arose out of a Dec. 17 meeting with Val- dez city manager Doug Grif- fin, says Bettine. Bettine says his company could build coal-fired power plants in Cordova and Val- dez at less than $35 million, and produce power cheaper than do the aging diesel- powered generators in Glen- nallen and Valdez. “That’s a guy with a lot of gall,” says Clayton Hurless general manager of Copper Valley Electric. “It’s kind of an incredible request,” he added. Furthermore, says Hurless, a power study by consulting engineers R.W. Beck & Associates found energy from coal-fired plants would be more costly than tapping into cheap energy through the Sutton to Glen- nallen power line. Meanwhile, Rep. Kubina says he’s “adamantly op- posed” to any diversion of the $35 million loan to Alaska Cogeneration Sys- tems. ° “My fear is that it will j just be money wrenchin the loan and we could end up with nothing. My goal is not to see it come back to the legis- lature,” Kubina said. Kubina’s fear is that the loan deal, approved by the legislature last year after a bitter fight, could become unravelled ifit returns to the legislature for re-appropria- tion. The $35 million came from the Railbelt Energy Fund, a fund set aside to underwrite power projects linking Anchorage-Fair- banks-Seward. Q Quulity Services (907) 274-1056 Date FEB 0 4 1995 Anchorage Daily News Client No= 9 294-2 7S os ate Reverse decision on intertie The proposal to build the 135-mile-long, high-tension power line up the Matanuska Valley from Sutton to Glennallen is still hanging on to life despite a court injunc- tion that has temporarily. halted it by stopping the. loan contract between the state and Copper Valley Electrical Associ- ation from being executed. Although the state’s own feasibility study determined that the project is not the best energy solution for Copper Valley or the state, those interests that would have the state loan $35 million (interest- free) to CVEA to help build this boondog- © gle are still lobbying. I have hope that the new Knowles : administration will reverse the last ad- ministration’s decision to build the pow- . erline. Before and after his election, the ; governor has acknowledged the need to! look: at the cheaper (and wiser) alterna- tives that. exist for the Copper Valley ; region’s 3,000 customers. . “| I encourage Gov. Knowles to select the ' energy project that will serve Copper! Valley’s needs and preserve the integrity ; of the spectacular Matariuska Valley. : Such action would be consistent with the : governor’s desire to protect Alaska’s enor-! mous tourism potential and trim state’ spending on unnecessary projects. . Action to halt the intertie would also be consistent with ‘the:'governor’s own. transition team’s recommendation that he’ reverse the decision to build the power-i line. I look forward to that action and! urge those who agree to call or write the’ governor today, and tell him to stop the; Sutton-Glennallen intertie. | 302. 420n 210k ‘ .°— Chris Rose; : . tem Sutton’ Q Quality Services (907) 274-1056 Date FEB 09 1995 Anchorage Daily News Client No. Y2¢A Cut power to intertie I am writing to encourage Gov. Tony Knowles to begin cutting the state’s bud- get -by eliminating a wasteful leftover. from the Hickel administration. The Sut- ton-Glennallen intertie would cost the state $35 million (or more) at a time when each dollar is important. The state’s own feasibility study demonstrated that only if the Copper Valley region experiences explosive growth would the intertie pay '- for itself. Who do you suppose will pay for the intertie if that explosive growth does not occur? ~ Other alternatives are available to pro- vide cheaper power to the. Copper Valley region. The Allison Lake hydro project near Valdez as well as a privately run coal’ co-generation: plant in Valdez have both been proposed. And, of course, if the gas pipeline the governor wants is built, electricity could be generated cheaply with natural, gas. Why spend all that money on a bad project when cheaper power is just down the. pipe(line)? I urge the new administration to recon- sider this misjudgement of the Hickel administration. st9& 4204 3c2- — Robin McLean Sutton Quality Services oes (907) 274-1056 Date MAR 0 4 1995 _ Frontiersman Client No. LOA or 2c 200 ob6/ My family lives in Chickaloon in the path of the Sutton-Glennallen Intertie. Others have moved here to build a community based on local empowerment. There are still compara‘ ve ¢vantages that can sus- tain an econ.u.y ..€re in Chickaloon. Those advantages will be lost if the Intertie is funded. In spite of every reasonable argu- ment against it, the Intertie remains alive. Now our future here is threatened. The America I grew up in was formed by owerful capitalists with special interests. eir vision demanded limitless resources and resulted in great projects of grandiose proportions. The fantasy of unlimited re- sources was still alive then. The city bus systems, interstate highways, the great hy- roelectric projects, nuclear power plants, and the lock-and-dam system along the Mississippi are examples of that imperial dream. These capital devouring projects used the latest technology or generated new, creative, awe-inspiring solutions for the commercial infrastructure The success of those projects also re- quired an ignorant public and a compliant ress. Americans are just beginning to real- ize the actual costs of these projects. Mani- cured parks, boat landings, and highway rest areas would not be fair tradeoffs today for poor air quality, resource depletion, or the loss of valuable farm bottom land that resulted from these projects. The Intertie is not like these projects. This project is unimaginative. It ignores creative demand-side management options and NS) elerena thee David G. VanCleve current technological advances. It lacks vi- sion. Copper Valley Electrical Association (CVEA) — a cooperatively owned utility — avoids the pursuit of sustainable, low-cost, elegant solutions to energy problems. It ig- nores human and ecological values that weren't likely to be respected in that earlier era of grandiose projects. The initiators of the project do not recognize the known and accepted values of human scale. The quest for mutually agreeable solu- tions to difficult problems facilitates healthy interdependence among communi- ties. Healthy local economies and trust re- lationships result from an open process. The state instead cut loose a narcissistic, etty, empire-building project that scoffs at ocal opinion, common sense, and commu- nity values. Its heavy-handed implementation is an example of the anachronistic thinking that guides decision making at CVEA. It pre- supposes that there will be winners and losers. CVEA’s endeavor to ramrod the project demonstrates poor judgment and predestines resolution in court. The state, Proposed Intertie is anti-community small communities, and everyone con- cerned loses. Gov. ony Knowles made a campaign promise to have his new Commissioner of Community and Regional Affairs re-evalu- ate Edgar Blatchford’s decision to go ahead with the Sutton-Glennallen Intertie. The Executive Summary of the Knowles/Ulmer Policy Transition tears report echoes the candidate’s words. The natural resources team is on record in the report opposing construction of the Intertie. The economic and community development team recom- mends, “Empower local and regional orga- nizations.... Mandate early cooperation and coordination on all government projects and programs between various state and federal agencies, local governments and private parties.” The governor responds to queries about his promise by saying that we need to get the argument “out of the courts and into the public forum.” Chickaloon’s resistance to the Intertie is not the roadblock to finding least-cost alter- natives. Chickaloon would be foolish to give up the only fair defense left to it. Our community's future is at stake. It’s the re- sponsibility of the governor and his admin- istration to get the Intertie issue into the public forum by stopping it now and be- ginning the re-evaluation that he promised. David G. VanCleve is a self-employed Chick- aloon resident. He and his family live on 30 acres within sight of the proposed Intertie route. (907) 274-1056 Date FEB 25 1995 CHUGIAK-EAGLE RIVER STAR Client No. —2I0E 302 6520 420Q 0329 OPINION By AARON H. DOWNING We must receive lower cost electricity. The price we now pay is, in my opinion, too high. Our electrical power should be, can be, and will be less if we work together. Matanuska Electric Association is constantly looking for ways to lower electric rates. It will continue to do so, but only if we mem- bers help. MEA is a co-op, a business that we own. It was formed for the good of our members, and, in the bargain, we provide electricity to ourselves. All of us have invested our money in MEA for the express purpose of obtaining electricity at a reasonable price. The amoui that each of us has invested in actual do! is the total amount of our individual credits. This capital credit money is paid to MEA alittle bit at a time, every month, when we pay our electric bill. We-do this for the sole reason of getting low cost power. MEA is paying us back through the capital credit checks we receive every year. MEA would probably not have been formed in 1941 if some other company would have built the lines to our homes. They didn’t want todo this, or more accurately, they re- fused to do this, so we said to heck with them, Can buildit ourselves. That’s what we did ind it ed. Today we are a healthy co-op and we’are growing. We are one of the iest co-ops in Alaska. We have the est service area of any Alaskan co-op. ir future is bright. We have recently cut costs to lower our rates. We can cut costs even further, but only if we members maintain an active interest in the real value of MEA be- yond that of just receiving power. Our real value in MEA is our ownership of MEA. Other companies covet MEA for the im- provement our money would make in their financial balance sheets. Chugach Electric is one of these. They tried to take away our MEA with the promise of lower rates and, at the same time, keep our employees ing. Now they are trying again, and this tii y had an expensive study done which shows an $80 million savings which they say we can share with them. Their is to take us over, close down our offi¢es, and get rid of 71 jobs in the Valley ahd Eagle River in or- der to save the $80. million. What that means, of course, is that Chugach gets to slurp up id then we get to share their - It is they who will get MEA’s $60 million of net worth and the bulk of the $80 illion in savings, not us. In the meantime co-op will be gone, 77 local people and their jobs will be gone, and we will have to drive to the Chugach headquarters to attend a Board meeting if we have any complaints about our electric bills. I can understand why they want us, what I don’t understand is why they think we want them. The simple matter is as long as we are profitable, run a good utility, stay financially healthy and remain competitive, there will always be those, like Chugach, who will try to take what we have. Greed is an ever present danger. We members must be wary of the Chugaches of the world who will try to take us over in one fell swoop, We must be equally vigilant to protect ourselves from other spe- cial interest groups who want to take control of MEA one piece at a time. These groups are not concerned with costs. Their concern is to maximize the flow of money toward feathering their nests. These vampires know that the way to get what they want is to con- trol our Board of Directors. We must assure ourselves that we maintain control of the af- fairs of our co-op, not Chugach, and not spe- cial interests. MEA elections are just around the cor- ner. The campaign propaganda will soon start jow with gusto. The Staudenmaier Com- / mittee will start beating the tom-tom and chant its normal share of barnyard residue in order to increase donations for its head tur- key. Our local VALUE office will yodel their usual fare of warped facts. The IBEW will try to convince the MEA membership that their candidates and their influence are nec- essary to provide cheap electric power, or for that matter any power at all. Some MEA Board candidates will try to hide the fact that the IBEW is paying for their campaign. These same candidates and special interest groups will attack by trying to convince you that MEA spent enormous amounts of money foolishly beating off Chugach, looking for other sources of lower cost generation, and negotiating for a more responsible labor agreement with the IBEW. All of these groups have one thing in common, they want your money and the control of your co-op a . n by members for themselves. This co-op was built by its members. It is owned by its members, and it must be run by its members. Each of us has the duty to keep MEA strong, healthy, cost competitive, and locally controlled for our benefit and the ben- efit of our fellow members. To do this we must learn all we can about the candid: running for our Board of Directors. We n not support those who are campaigning with money from special interest groups like the IBEW. We must carefully review the voting record of any incumbent director. Don’t give MEA away to Chuga-h, to Staudenmaier, or to the IBEW. Choose care-| fully and wisely when you vote for MEA Board candidates. It is your co-op, your money and your responsibility. (Aaron Downing is a member of the Poard of Directors of Matanuska Electric Assacia- tion. His views are his own.) Q Quality Services (907) 274-1056 Date MAR 0 2 1995 Anchorage Daily News Client No. _YreA Federal judge lifts bar to loan for 3o2 210F) 420A By RON McGEE Daily News reporter A federal judge’s deci- sion Friday may clear the way for the Copper Valley Electric Association to build a controversial pow- er line from Sutton to Glennallen with a $35 mil- lion no-interest, state loan. U.S. District Court Judge Russel Holland lifted. an injunction he had issued in November bar- ring the state from giving: Copper Valley the money. According to Copper Val- ley, Holland’s reasoning was that the Alaska Public Utilities Commission had taken jurisdiction over the matter. About $7.3 million of the loan is available to Copper Valley now for the first phase of construction. The money can be used for de- sign, surveying and envi- ronmental study costs, ac- cording to Dick Emerman, who manages the loan for the state’s rural energy agency. power line The legislature had set aside money in 1993 for the ‘loan to help build the line. But an Anchorage-based company called Alaska Co- generation Systems -Inc. filed a suit that prevented construction. The company wanted to build a coal- fired electrical generating plant in Valdez and use waste heat produced by the “coal to heat buildings there. Copper Valley would have been compelled to . buy electricity from the coal-fired plant. ‘Alaska Cogeneration President Frank Bettine said his company will file another suit at the point when the state gives Cop- per Valley money. The company also. has filed an antitrust suit claiming Copper Valley and the state are conspiring to fix the cost of electricity, Bet- tine, said. Copper Valley ‘said ‘the power line will allow it to tap into the Railbelt’s vast energy supply. Q Quality Services (907) 274-1056 ° ow MAR 0 2 1995 COPPER RIVER COUNTRY JOURNAL Client No. Qo & Judge puts s Intertie Loan Negotiations Back On Track Dion fecrl ANCHORAGE-Judge Russel Holland has lifted a pre- liminary injunction that prohibited DCRA from going forward with negotiations on the $35 million Intertie loan agreement with CVEA. THE LOAN agreement had been on hold since Novem- ber, 1994 when U.S. District Court Judge Russel Holland issued a preliminary injunction prohibiting DCRA from finalizing a loan agreement with CVEA. In November, Alaska Cogeneration Systems (ACSI) had cessfully argued before the Judge that the loan agreement violated the Public Utility Regulatory Poli- cies Act. Alaska Cogeneration Systems wanted to stop the intertie because they want to build a coal-fired generating plant in Valdez. On February 24th, how- ever, the Judge ruled that the Alaska Public Utilities Commission had taken jurisdiction of those problems and could resolve them. As a result, the Department of Community and Regional Affairs can now go ahead with the process of executing a loan agreement with CVEA. Dick Emerman of DCRA, told the Country Journal that "there has been a draft agreement on the table since November" and "if CVEA wanted to sign the agreement right now we could go forward with it." However, CVEA may have a hard time reaching a loan agreement with DCRA. DCRA has drafted a loan agreement that puts DCRA in the driver's seat as regards to disbursement of funds and deciding whether or not the project can be successfully completed. DCRA WANTS to divide the project into two separate phases. The first phase is a preconstruction phase and would have a spending limit of $7.3 million. During this phase, CVEA would have to achieve a predetermined list of "milestones" that DCRA has set out- including obtaining right of way , supplemental financing, Federal permits, environmental studies, en- gineering and design and so forth. According to Emerman, as the draft agreement is written, DCRA would completely control the money - making CVEA submit invoices to be paid with the funds. At the end of Phase One, the draft agreement apparently says that DCRA must givea "written determination" that "the way has been cleared for the successful completion of the project". Without this determination from DCRA, the disbursement of the funds for phase two (the construc- tion phase) couldn't begin. In other words, if DCRA felt like it, it could deny CVEA access to the construction funds and CVEA consumers would have to pay back the $7 million with no intertie. According to Emerman, CVEA has expressed the desire to have the money placed with a trustee and be allowed to accumulate interest to help fund the project. Emerman said that DCRA had asked the Attorney General if this was possible - but that the attomey General had said that without legislative language to that effect - it wasn't. CVEA said that they are planning a meeting with the Division of Energy Director Frisby next week to "pick up where we left off with the latest version of the loan agreement." They also said "we feel that administratively there are some things we need to address." (907) 274-1056 Date MAR 0 21995 _ COPPER RIVER —COUNTRY JOURNAL, _ Client No._ (20 A | Intertie Is Economically Unfeasible Sse gin 53419 242s sez Dear Country Journal, The status of Mark Air and the business practices of Neil Bergt have received considerable attention re- cently. Individual and corporate beneficiaries of State financial largesse should be held accountable for their actions. A history of bankruptcy and questionable cred- ibility by anyone asking additional financial favors from the State warrant close public scrutiny. Neil Bergt and others own the Valdez Petro Star Refinery, the single greatest electric consumer in the Copper River region. Whatever role the refinery has played or may play in the proposed Sutton-Glennallen Intertie project also deserves scrutiny. This 135 mile long powerline project requires a 50 year, $35 million zero- interest loan from the State treasury. Further, an addi- tional $25 million worth of low interest bonds through AIDEA may be available for the project. Insupportable Y2erF7 high growth projections by Petro Star assuredly helped the State rationalize its arbitrary decision July '94) to finance the powerline, a project whose cost estimates have escalated in the past two years from $29 million to $47 million. (One detailed study estimates the cost at approximately $60 million). If State funds finance the Intertie, to what extent do Mr. Bergt and the other refinery owners benefit? Perhaps these Railbelt Energy funds could be put to wiser use elsewhere. Perhaps the Governor will follow the recent recommendation of page 17 of his Natural Resources Policy Transition Team's report and, "Act immediately to avoid construction of the intertie because it is economically unfeasible..." Warren J. Keogh Chickaloon Q Quality Services (907) 274-1056 Dare MAR 0 3 1995 Frontiersman Client No. YroA “_— Intertie injunction lifted Bor 2WE 4204 By STEVE KADEL Frontiersman associate editor A judge has lifted an injunc- tion preventing the state from loaning $35 million to Copper Valley Electric Association (CVEA) to build a power line between Sutton and Glennallen. But a spokesman for a citizen ‘oup opposed to the proposed ine — known as the Intertie — . says it would be “foolish” to transfer the money. Warren Keogh, board mem- ber for the Chickaloon-based Alaska Citizens for Responsible Energy Development (ACRED), said the loan should not pro- ceed because lawsuits in federal and state courts still seek to block the power line. “I am greatly concerned,” Keogh said of the judge’s rul- ing. “It is a setback. But the way I ae it, Judge Holland dis- missed the preliminary injunc- tion but the suits are still in place. This doesn’t do anything to either of those legal actions.” However, U.S. District Court Judge Russel Holland on Feb. 24 lifted his previous injunction blocking a $35 million zero-in- terest loan to CVEA. Management of CVEA re- sponded that it removed “a ma- jor stumbling block in the con- struction of the proposed Inter- tie.” The utility Eid: the judge’s decision allows the state to go ahead with the loan. As of Wednesday, an econo- mist with the state Division of Energy said plans were to pro- ceed with part of the loan so CVEA could begin phase one of the Intertie. That $7.3 million partial loan would cover CVEA’s environmental studies, design studies, and other pre- liminary steps before construc- tion of the 135-mile power line. “My instructions are, we will go forward with CVEA to exe- cute the loan agreement,” said economist Dick Emerman, who drafted the $35 million loan proposal. ACRED, the citizens group, claims the Intertie is a boondog- gle that would increase CVEA power rates, not lower them as the utility says. Also, ACRED says the power line would mar the Matanuska Valley’s scenic ‘beauty and hurt tourism. Keogh added that Gov. Tony Knowles’ Natural Resources Policy Transition Team has rec- ommended the Intertie not be built because “... it is economi- cally unfeasible...” Knowles indicated on a pre- election questionnaire from the Alaska Center for the Environ- ment that he would reconsider the Intertie, said Dori McDan- nold, Valley coordinator for that group. She said Knowles pledged support for the least costly energy source for the Sut- ton-to-Glennallen area, adding it is time for Knowles to honor his statements. Q@ ality Sonicey (907) 274-1056 Date MAR 0.3 1985 Frontiersman Client No._Y WA Working together is the or H8E 420A 0324 0333 We must receive lower cost electricity. The price we now pay is, in my opinion, too high. Our electrical power should be, can be, and will be less if we work together. MEA is constantly looking for ways to low- er electric rates and will continue to do so if we members help. MEA is a co-op, a business, that we own. It was formed for the good of our members and, in the bargain, we provide electricity to ourselves. All of us have invested our money in MEA for the express purpose of obtaining electricity at a jemi rice. The amount that each of us has invested in actual dollars is the total amount of.our individual capital credits. This capital cred- it money is paid to MEA a little bit at time, eve tric bill. We do this for the sole reason of etting low-cost power. MEA is paying us ack through our annual capital credit checks. ‘ MEA would probably not have formed in 941 if some other company would have _uilt the lines to our homes. They didn’t want to do this, or more accurately, they re- fused to do this, so we said to heck with them and built it ourselves. TODAY WE ARE one of the wealthiest co-ops in Alaska. We have the largest ser- vice area of any Alaska co-op and we are growing. We recently cut costs to lower our rates. We can cut costs further, but only if we members maintain an active interest in the real value of MEA beyond that of just receiving power. Our real value in MEA is our ownership of MEA. Other companies covet MEA for the im- = our money would make in their inancial balance sheets. Chugach Electric is one of these. They tried to take away our MEA with the promise of lower rates and, at the same time, keep our employees working. Now they are trying again, and this time they had an expensive study done which shows an $80 million savings which month, when we pay our elec-\ Spectrum a they sa HEIR PLAN is to take us over, close down our offices, and get rid of 77 jobs in the Valley and Eagle River in order to save we can share with them. the $80 million. What that means is that Chugach gets to slurp up our money, and then we get to share their huge debt. It is they who will: get MEA’s $60 million of net \worth and the bulk of the $80 million in vings, not us. \In the meantime, our co-op will be gone, 77 \ocal people and their jobs will be gone, and\we’ll have to drive to Anchorage to at- tend a board meeting if we have any com- plaints\about our electric bills. I can under- stand why they want us, but why do they think we want them? nee ‘' The simple matter is as long as we are rofitable, y healthy, arid remain competitive, there will always be,those, like Chugach, who will try to take what we have. Greed is an ever-present danger. ; We members must be wary of the Chugaches of the world who will try to take us over in one felhswoop. We must be oe vigilant to protect ourselves from other special interest groups who want to take control of MEA one piece at a time, These groups are not concerned with costs. Their concern is to maximize the flow of money toward feathering their nests. These vampires know that the way to get what they want is to control our Board of Directors. We must assure our- selves that we maintain control of the af- n a good utility, stay financial- ” key for success fairs of our co-op, not Chugach, and not special interests. MEA ELECTIONS are just around the corner. The campaign propaganda will soon start to flow wit pie e Stauden- meyer Committee will start beating the tom-tom and chant its normal share of barnyard residue in order to increase dona- tions for its head turkey. Our local value of- fice will yodel their usual fare of warped facts. The IBEW will try to convince the MEA membership that their candidates and their influence are necessary to pro- vide cheap electric power, or for that mat- ter any power at all. Some MEA Board candidates will try to hide the fact that the IBEW os arins for their campaign. These same candidates and special interest groups will attack by trying to convince you that MEA spent enormous amounts of money foolishly beating off Chugach, looking for other sources of low- er cost generation and negotiating for a more responsible labor agreement with the IBEW. All of these groups have one thing in common, they want pe money and the control of your co-op for themselves. This co-op was built by its members. Each of us has'the duty to keep MEA strong, healthy, cost competitive, and local- ly controlled for our benefit of our fellow members. To do this we must learn all we can about the candidates running for our Board of Directors. We must not support those who are campaigning with money from special interest groups like the IBEW. We must carefully review the voting record of any incumbent director. Don’t give MEA away to Chugach, to Staudenmeyer, or to the IBEW. Choose carefully and wisely when you vote for MEA board candidates. It is your co-op, your money and your responsibility. Aaron Downing serves as a member of the Matanuska Electric Association Board of Direc- tors. Q Quality Services (907) 274-1056 Date _MAR 0 8 1995 Valdez Vanguard Client No. & teen Judge’s decision clears way for intertie 210A 302 ¥20R By Mike Jakiemiec Valdez Vanguard Copper Valley Electric Association can now begin the initial phases of a proposed power line from . Sutton to Glennallen following a fed- eral judge’s decision Friday to liftan . injunction that barred the state frém giving Copper Valley a $35 million interest-free loan. “US. District Court Judge Russel Holland originally issued the injunc- ‘tion last November after Alaska Cogeneration Systems Inc. filed a suit to prevent construction. ACSI wants to build a coal-fired electrical plant here. CVEA would have to buy elec- tricity from the plant if it’s construct- ed. According to a news release issued by CVEA, Holland lifted the suit because he felt the Alaska Public Utilities Commission had taken juris- ‘We have to com- plete negotiations for the loan agreement with the state.’ _ Mike Easley CVEA'’s manager of Engineering Services diction over the matter. About $7.3 million of the loan is now available to CVEA. The money “can be used for design, surveying and environmental study costs. The first step for CVEA is to get negotiations going again with the Department of Community and Regional Affairs, said Mike Easley, CVEA’s manager of Engineering Services. _ s “We have to complete negotia- tions for the loan agreement with the state,” Easley said. : Those negotiations have been on hold while the injunction was in place - and CVEA also wanted to wait until the Knowles Administration had completed its transition, Easley said. CVEA has sought to construct the intertie, which will tap into the Railbelt’s energy supply. and could ~ reduce electrical Costs in its aetiee - area, : The Legislature set aside the $35 million in 1993, but ACSI filed suit, claiming the coal plant could provide Jower electrical costs and that CVEA would have to buy power. from it under the. Public Vaility Regfiaory Policies Act. * ACSI has also filed an et suit claiming CVEA and the state are conspiring to fix the cost of electricity. E et ——— Q tality Services (907) 274-1056 poe MAR 0 8 1995 Frontiersman Client No. Ye tua _ Question: Set 2weE 4204 \ 3247 ©3337 Last week's Spectrum column (Frontiers- man, March 3) by an incumbent Matanuska Electric Association board member failed to mention some very pertinent facts. Foremost, the author failed to register that he was seeking re-election to the MEA board. Secondly, he failed to mention that he is an electrical contractor who has made millions of dollars contracting with MEA in the past and who has what we feel is an ob- sessive personal vendetta against the IBEW. Additionally, he failed to mention some very questionable management décisions the current span on the MEA board, of which he is a leading member, has\been making. We will take this opportunity to ask she of these very serious questions. We are very concerned about recent rumors of 30 per- cent raises given to some management em\ paren with additional year-end cash\ Retort had a contract for more than three years and certainly none has been offered before the first year’s probationary period has been exhausted. We are certain that Mr. Carmony is well qualified for the job, what concerns us is the secrecy surrounding the process. With regard to the MEA/Chugach takeover war: you bet we are concerned about the huge amounts of money MEA spent last year “beating off Chugach’s onuses of up to $15,000. Perhaps Mr. \ takeover bid” — $495,994 looks an awful Downing can give us an explanation about the need to not only increase the number of management employees and salaries but why this was done in light of the board’s recently completed management review which clearly pointed out that MEA is ad- ministration heavy. And why are all these decision being de- cided behind closed doors? Is it really nec- a for the board to conduct the majori- ty of its business in secret “executive ses- sions”? State law provides only three rea- sons for a cooperative board to go into ex- ecutive session. gf this board met behind closed doors and then bestowed a lucrative five- year contract on recently transplanted Ken- tuckian Wayne Carmony after he had been on the job less than 120 days. This is an un- heard of precedent. Why the rush? No past MEA general manager has ever ‘et like one-half of a half million dollars. at’s what Aaron Downing and his major- ity\on the board now say they spent ana- lyzing Chugach’s proposal and informing the membership. A simple, concise “no” would\have sufficed. And we really have to question the blank check Mi, Downing’s crew has written au- thorizing ‘board president Tamie Miller to make a run for a seat on the Chugach Board of Directors and authorizing MEA staff to experid association time and funds to advance her\candidacy,. MEA is indeed a member-owned cooper- ative. It offers same of the lowest-priced electrical rates in \Alaska and enjoys very reliable service. There are almost 200 men and women who earn their living working at MEA on behalf of the member owners. These men and womeniare very concerned s addressed to MEA board member that Mr. Downing and his majority on the board of directors have lost sight of their proper purpose and are instead pursuing some personal agenda aimed at MEA’s rec- ognized bargaining agent, IBEW Local 1547. No mention is made of the ongoing nine- a? personal legal vendetta Mr. Downing as been wag ne against the IBEW and its membership. No mention is made of the thousands of cooperative dollars senseless- ly wasted in useless battles with the union. The IBEW interest in the MEA board is simple. We are concerned about the contin- ued operation of one of the best, and until recently, well-managed electrical coopera- tives in the nation. No one is served if this utility is allowed to continue on the dan- gerous downward spiral of excessive ees and poor management, least of the nearly 200 men and women who are employed Face or the member owners of the cooperative. We are not ashamed of the fact that we have negotiated fair and equitable wages for honest, hard work and in reality are roud of what we do for our membership. oes that make us special interest? You bet. However, we do not think that we are any more “special” interest than an active elec- trical contractor who has previously demonstrated that projects which are be- yond his scope will simply be handed over to his friends from Jackson, Miss., employ- ing out-of-state, and in at least one in- stance, Mexican nationals. Please question the motives of self-serv- ing electrical contractors like Aaron Down- ing and ask yourself, what's in this for him? Gary Brooks is business manager of the International Brotherhood of Electrical Workers Local Union 1547. (907) 274-1056 Date MAR 0.8 1995 Anchorage Daily News Client No. $09 A ' Avoid construction of intertie The status of MarkAir and the business practices of Neil Bergt have received considerable attention recently. Individu- al and corporate::beneficiaries of state financial largesse should be held account- able for their actions. A history of bankruptcy and question- able credibility by anyone asking addi- tional financial favors from the state warrant close public scrutiny. Neil Bergt and others own the Valdez Petro Star Refinery, the single greatest electric consumer inthe Copper River region. Whatever role the refinery has played or may play in the proposed Sutton-Glennallen intertie project also de- serves scrutiny. This 135-mile-long powerline project re- quires a 50-year, $35 million, zero-interest loan from the state treasury. Further, many more millions of dollars of low-in- terest bonds through AIDEA may be available for the project. Insupportable high-growth projections by Petro Star assuredly helped the state rationalize its arbitrary decision (July 1994) to finance the powerline, a project ‘whose cost estimates have escalated in the past two years from $29 million to $47 million. One study estimates the cost at approximately $60 million. If state funds finance this intertie, to what extent do Mr. Bergt and the other refinery owners benefit? Perhaps these Railbelt Energy funds could be put to wiser use elsewhere. Perhaps the governor will follow the recent recommendation on Page 17 of his Natural Resources Policy Transition Team’s report and “Act immediately to avoid construction of the intertie because it is economically unfeasible...” 31 336D C425 Y2eaA _ Warren Keogh 302 Oe Chickaloon Q oe Qui Sree (907) 274-1056 Date MAR 0 4 1995 CHUGIAK-EAGLE RIVER STAR Client No. : MEA Director Downing has_special interests RICE “Zura Ysere 0320 0334 To the Editor: Last week’s opinion.column by an incum- bent MEA board member failed to mention some very pertinent facts, Foremost, the au- thor failed to register that he was seeking re- election to the MEA board. Secondly, he failed to mention that he is ah electrical con- tractor who has made millions'of dollars con- tracting with MEA in the past\and who has an obsessive personal vendetta \against the IBEW. Additionally, he failed to. mention some very questionable management deci- sions the current majority on the MEA board, of which he is a leading member, has\bee: making. \ We will take this opportunity, afforded us by the editor of The Star for response, to ask\ some of these very serious questions. We are ‘ery concerned about recent rumors of 30 percent raises given to some management employees with additional year-end cash bonuses of up to $15,000. Perhaps Mr. Downing can give us an explanation about the need to not only increase the number of management employees and salaries but why this was done in light of the board’s recently completed management review which clearly pointed out that MEA is administration heavy. And why are all these decisions be- ing decided behind closed doors? Is it really necessary for the board to conduct the ma- jority of its business in secret “executive ses- sion?” State law provides only three reasons for a cooperative board to go into executive session — recently this board met behind closed doors and then bestowed a lucrative five-year contract on recently transplanted Kentuckian Wayne Carmony after he had been on the job less than 120 days. This is an unheard of precedent. Why the rush? No past MEA General Manager has ever had a con- tract for more than three years — and cer- tainly none has been offered before the first year’s probationary period has been ex- hausted. We are certain that Mr. Carmony is well qualified for the job, what concerns us le secrecy surrounding the process. Nith regard to the MEA/Chugach take- over war; you bet we are concerned about he huge amounts of money MEA spent last year “beating off Chugach’s takeover bid.” $495,994 looks an awful lot like one half of amillion dollars. That’s what Aaron Down- ing and his majority on the board now say they spent analyzing Chugach’s proposal and informing the membership. A simple, con- cise NO would have sufficed. And we really have to question the blank check Mr. Downing’s crew has written authorizing Board President Tamie Miller to make a run for a seat on the Chugach Board of Directors and authorizing MEA staff to expend asso- ciation time and funds to advance her candi- dacy. MEA is indeed a member owned coop- erative. It offers some of the lowest priced electrical rates in Alaska and enjoys very re- liable service. There are almost 200 men and women who earn their living working a MEA on behalf of the member owners. These men and women are very concerned that Mr. Downing and his majority on the board of directors have lost sight of their proper pur- posé and are instead pursuing some personal agenda aimed at MEA's recognized bargain- ing agent, IBEW LU 1547. No mention is made of the ongoing nine-year personal le- gal vendetta Mr. Downing has been waging against the IBEW and its membership. No mention is made of the thousands of coop- erative dollars sénselessly wasted in useless battles with the union. The IBEW interest in the MEA board is simple. We are concerned about the contin- ued operations of one of\the best, and until recently, well managed electrical coopera- tives in the nation. No one \is served if this utility is allowed to continue on the danger- ous downward spiral of excessive spending and poor management, least of all, the nearly 200 men and women who are employed there or the member owners of the cooperative. We are not ashamed of the fact that we have ne- gotiated fair and equitable wages for honest, hard work and in reality are proud of what we do for our membership. Does that make us special interest — you bet, however we do not think that we are any more “special” interest than an active electrical contractor who serves on a utility’s board of directors. Please question the motives of self-serving electrical contractors like Aaron Downing and ask yourself, what’s in this for him? Gary Brooks Business Manager, IBEW LU 1547 (907) 274-1056 MAR 16 15 Date a Anchorage Daily News Client No_ Yoo FR A Protesters want Knowles to Hal rproject wide tae A190 By TRACY BARBOUR Dy 1y News reporter About 35 demonstrators rallied out- side Gov. Tony Knowles’ Anchorage office Wednesday to protest millions of state dollars going to finance a power line from Sutton to Glennallen and to complain that he broke a promise to halt the project. Shivering in the freezing tempera- tures, demonstrators walked up and down 36th Avenue waving signs that read: ‘‘Tony, you can stop it'’ and “Tony, why hive you gone back on your campaign premise to reassess this proj- ect?” The proposed intertie would connect Copper Valley ¥!ectric Association’s 3,000 customers to the Railbelt, where electricity costs are cheaper. Last July, the Hickel administration approved a $35 million, no-interest loan to help the utility pay for the intertie, which is expected to cost $47 million to build. The protesters charged that Knowles has reneged on a campaign promise to stop the project. Robin McLean, a board member of the Alaska Citizens for Responsible Energy Development, which helped organize the rally, said the proposed intertie is un- necessary and a waste of money. She said Knowles’ promise came in a re- sponse to a pre-election survey sent to him by the Valley Alaska Center for the Environment. RON ENGSTROM <~crorace Da'y News However, Knowles spokesman Bob King said Wednesday that Knowles nev- Please see Page B-3, INTERTIE INTERTIE: Demonstrators rally to resist Sutton-to-Glennallen power line projec. 62 Y20Q 210 Continued from Page B-1 er made such a promise. King said one of the survey’s questions asked if the candidate approved of the previous administration’s decision to fund the Intertie project. Knowles responded: “In this time of shrinking state dollars it makes sense to fund only those energy projects which are the most cost effective. According to the feasibility study of the Intertie project, a small hydroproject at Allison Lake may be a more cost effective source of energy. Therefore, as governor, I will request the new commissioner of Community and Regional Affairs review the feasibility study, hold new public meetings if necessary and reconsider the administrative finding which approved the Intertie project.” “We feel the governor has been living up to that — the commissioner has been reviewing the feasibility study,’’ King said. E McLean said she felt Knowles’ answer on the survey indicated ‘‘Allison Lake is a better project,” and she said she felt he would re-examine a state feasibility study done on the Intertie project. “They say they’re reviewing it,” McLean said. “I just think that’s a lie. I don’t think they’re doing anything.” ~ Community and Regional Affairs Com- missioner Mike Irwin could not be reached for comment Wednesday. Demonstrators also complained Wednesday that Knowles ignored a recom- mendation from his Natural Resources Policy Transition Team that he dump the Intertie project. In January, the team recommended “avoiding construction of the Intertie because it is economically unfeasible, en- vironmentally destructive, opposed by many Mat-Su Valley residents and good power alternatives do exist.” “We want to send a message to the governor to follow his own transition team’s recommendation,” said Chris Rose, who chairs Alaska Citizens for Responsi- ble Energy Development. “He is right in saying the governor's transition team recommended this project be halted, but that was only a recommen- dation,” King said. Dick Emerman, an economist with Re- gional Affair’s Division of Energy, said the Intertie’s future rests with the Copper Valley Electric Association. Last month, an injunction imposed in a November lawsuit barring the state from executing the loan agreement was lifted, paving the way for negotiations to reopen. “The direction that this division has received from the commissioner is ... to go forward with negotiations with Copper Valley," Emerman said. “If Copper Val- ley were to choose to sign it today, we in turn would sign it and the loan would be in effect. That doesn’t mean we would: issue a $35 million check — the money would be dispensed as expenses were incurred,”’ he said. Copper Valley and the division have a few issues to iron out before a check is cut, Emerman said. They mainly concern the division’s oversight and loan disburse- ment amounts, he said. But “‘if the utility does not agree to the terms we proposed in the loan agreement, it’s conceivable-we could remain apart on the terms for a long une or anything in between,’’ Em in Sald. CITIZENS RALLY AGAINST INTERTIE CHV 7 AOE JIM LAVRAKAS J Anchorage Daily News Citizens rally outside the Frontier Building, 36th Avenue and C Street, at noon Wednesday to protest the proposed Sutton to Glennallen intertie project. They represent Alaska Citizens for Responsible Energy Development, Alaska Center for the Environment, National Outdoor Leadership School and the Sutton and Chickaloon community councils. (907) 274-1056 Date MAR 17 1995 Anchorage Daily News Client No. 726 A Not tied up yet till time £0 stop intertie boondoggle Gov. Tony Knowles still has time to switch off $35 aillion in state financing for the proposed utton-Glennallen power line. Here’s hoping the overnor musters the moxie necessary to do the deed. : he doesn’t, the state will be stuck subsidizing a astly scheme to deliver Copper Valley consumers cheaper”’ power. At this late stage, the argument for funding the Glennallen intertie is more a matter of politics than principle. First is the Carole King defense: ‘‘It’s too late, baby, now, it’s too late.” Look, say the project’s backers: The legislature already approved the cut-rate financing. The project survived another This whole Jebate would be a ot more honest if ‘olks would just call ‘he Glennallen ntertie what it is — 2 last, expensive ling with welfare OS ates round of study. Our rapitalism, a contract is practically s0me-one, come-all ready to go; all the Jandout. . governor has to do is sign on the dotted line. To which we offer the imonition any mother gives a wayward 5-year-old: It’s never too late to keep from making a mistake. The study in question had more soft spots than a month-old tomato. It was a one of those perfunctory ‘quirements lawmakers impose when they want to it a cloak of economic legitimacy on what is sentially political pork. It showed that the power ae penciled out only under a rosy development enario that makes Wally Hickel sound like a »-growther. To push things to this point of almost-no-return, the project’s supporters invoked some other: Ser empty arguments. ' Our electricity costs too much, they said; ‘the state has to do something to help us. Everywhere else in Alaska got their energy pork while the getting was good. You can’t punish us for being last in line when: the easy money ran out. Well, hold on there. Does the name Solomon Gulch ring a bell? Back in 1981, the state lavished $68 million on that hydro project serving the Copper Valley. f Turns out that wasn’t enough. oeatita about. the dam not generating much power.in the winter, when the lake in question freezes and the water runs low. Pardon us, this is a surprise in Alaska?).:* So here they are, back for more. Finally, there’s the ‘‘best defense is a good offense” defense. ‘ The project’s advocates have the juice, politically, speaking, to get the juice, electrically speaking. If all else fails, they can put Gov. Knowles on notice: Kill’ this one, and our friends in the legislature will'set off, a firestorm that will take you all session and then, some to put out. You can talk principles and sound policy all you want, but are you ready to pay the price?” So what we have is one last boondoggle, a vestige of Alaska’s boomtime mentality. This whole debate would be a lot more honest if folks would just call the Glennallen intertie what it is — a last, expensive fling with welfare capitalism, a come-one, come-all handout to some 8,000 customers, compliments of ‘the well-connected. It would take a governor with uncommon fortitude to scotch the Glennallen intertie. We’ll find out soon if Tony Knowles is that kind of governor. Q Quality Services (907) 274-1056 MAR 2 4 1995 Date Anchorage Daily News Client No__Y20A Voice opposition to intertie The Sutton-Glennallen intertie is not just a local issue. It affects all Alaskans because it is another expensive state boondoggle that all taxpayers would eventually pay for. Considering a huge state project in the face of a budget shortfall is insanity. The independent study done last year showed that the intertie is not economi- -cally feasible, compared to other alterna- tives, except under a high-growth scenario in Copper Valley. The average growth of Copper Valley in the last decade was 0.1 percent, hardly a population boom. Despite the lack of economic feasibility of the intertie, last spring, the legislature appropriated a $35 million interest-free loan from the state to the Copper Valley Electric Association. The state cannot afford interest-free loans (no bank would give one), nor can the state afford ‘‘wel- fare” to a utility. Most Alaskans remember how such state projects become notoriously over- budget. This intertie was proposed in order to lower the electric rates of Copper Valley residents. Common sense (arithme- tic) dictates that their electric rates would have to increase to help finance the intertie. Gov. Knowles can put a stop to this intertie by just saying ‘‘no.”’ I suggest the legislature reappropriate the $35 million to more urgent needs than building a costly intertie through the back country from Sutton to Glennallen. I encourage all Alaskans who oppose the waste of state money to register their opposition to the proposed Sutton-Glenn- allen intertie with Gov. Knowles’ office. 3o2 Uc Yor} — Mary Barrett Chickaloon (907) 274-1056 Date MAR 2 5 1995 _ Anchorage Daily News Client No___Y2oQ Knowles reviewing intertie’s fate Jor 4300 em By PETER S. GOODMAN Daily News reporter PALMER — The ‘fate of a controversial power line proposed from Sutton to Glennallen is uncertain as Gov. Tony Knowles re- views the Hickel adminis- tration’s approval of the project. On his radio call-in pro- gram Tuesday, Knowles told a questioner he was studying the project, which would be financed primari- ly with a $35 million, no- interest state loan. He said he would soon make an announcement about its fu- ture. spokesman Bob King ex- plained the governor ,and Mike Irwin, commissioner for Community and Re- gional Affairs, were taking Later that day, Knowles a second look at a recent -study of the project to as- sess whether the line is warranted. . Asked whether the gov- ernor might opt to kill the project altogether, King said: options.” Since Knowles became governor in December, his office has received about 125 letters and faxes about “That’s one’ of the : the power. line, or intertie. Those opposed to it have outnumbered supporters 10-to-1, King said. “Certainly you pay at- 3} tention: to public com- ment,”” he said. “But it’s not the sole reason you make a decision. ... Ulti- mately, it’s the economics that count.” Copper Valley Electric Association wants to build the line to tap into the vast power supply | of the Rail-_. belt. The utifity. — which serves some. 8,000 custom- ers in and around Glennal-' len and Valdez — now re- lies ‘on aging diesel generators and a problem- ' atic hydroelectric genera- tor. Its customers are pay- ing roughly twice as much’ for their power as their Railbelt neighbors. . The utility has long ar gued the intertie is the bes! way to provide some relief But the project is adamant ly opposed by n resi dents ‘in the M uske Valley who fear i. .._| mai the scenery and open ur the back countTya for great er use. e Please see Page E21 INTERTII INTERTIE: Knowles reviews options before deciding fate of power project Continued from Page E-1 Two years ago, the legis- lature gave Copper Valley the interest-free loan to help build the line, the cost of which has been estimat- ed as high as $53.8 million.. But the money was condi- tioned on a study of’ the project and possible alter- natives. The legislature specified that the state’s commis- sioner of Community and Regional Affairs — at the time, Edgar Blatchford — had to declare “the study satisfactory’ before Cop- per Valley could get the loan. The study, released in May and prepared by R.W. Beck and Co., a Seattle consultant, concluded the intertie would be the least costly option only if Cop- per Valley’s thirst for elec- tricity were to double over the next two decades. Bar- ring that, a hydroelectric project at Allison Lake, near Valdez, would be a lower cost option, the study said. Blatchford approved the study in July. That spark- ed a pair of lawsuits seek- ing to stop the project — one from environmental- ists and Matanuska Valley residents; the other from a firm that wants to build a coal-fired generating plant in Valdez in place of the intertie. Then came November's gubernatorial election. In a questionnaire from the Valley Alaska Center for the Environment, can- didate Knowles noted that, “a small hydroproject at Allison Lake may be a more cost-effective source of energy.” He added that, as governor, he would de- mand further review. Knowles didn’t return phone calls Friday. But spokesman King confirmed that the governor won’t allow the project to go ahead on Blatchford’s say-so. It needs to pass muster with Knowles’ new commissioner, Irwin. Irwin has put together a team of state energy offi- cials to review the study, King said. Meanwhile the state has shelved its nego- tiations with Copper Val- ley over the terms of the intertie loan, said the utili- ty’s general manager, Clay- ton Hurless. Hurless said Friday that he understands the reason for the delay. “He’s a new governor, he’s not familiar with (the project),’’ he said. ‘‘For him not to review it would be imprudent.” Chris Rose — a co-found- er of Alaska Citizens for Responsible for Energy De- velopment, one of the groups fighting the line in court — wasn’t sure what to make of the governor’s approach. “I'd rather see him just kill it,” Rose said. “I think it’s clear from the study that’s already been done that this thing just isn’t feasible.” Q sy Set (907) 274-1056 __MAR 2 8 1995 Dat Anchorage Daily News Client No.__‘% +o4 Intertie would hurt tourism et 6 BHP 6 “Jay D. Page’s recent letter referred to opponents, of the intertie as “anti-human being groups.’ Perhaps he should more closely examine the issue. The effort to stop construction of the Sutton Glennallen intertie is about jobs and economics. Local tourism businesses operate commercial activities and derive revenue from the wilderness qualities of the proposed construction area. These enterprises are vital to local employment and provide both economic diversity and stability to Valley communities. Tourism and outdoor recreation in Alaska depend directly on the preserva- tion of natural resources. Tourism is the state’s second largest employer, generat- ing $1.3 billion in revenue. Industry ex- perts estimate that adventure travel and ecotourism represent the fastest growing segments of the travel industry. If resource management decisions are made without considering the effects on recreational users and tourism, then Alas- ka’s long-term economic well-being will posed Sutton Glennallen intertie. : a suffer. 1 ; In this vein, I. encourage the adminis- During the recent Tourism and Public tration to find an ‘alternative power Land Conference held in Anchorage, both’ source for the Copper Valley Region that Commissioner Irwin and Commissioner will protect the natural resources Vital to Hensley emphasized the importance of the growing ecotourism industry. ?/si ° tourism to the state. Similarly, the gover- 72.2 ¥204 39> — Eleanor Huffines nor’s natural resource transition team asne _. ..Palmer overwhelmingly voted against the ‘pro- tuality Services (907) 274-1056 Date _AUG 0 4 1995 Frontiersman Client No_4Y2UdA MEA members get $2.4M back 3o2 2icseE 420A Matanuska Electrical Associa- tion (MEA) has announced that Tamie Miller said in a prepared Statement. “If we can keep a $2.4'piltlion in’capital credits rein on the’ cost of power and will be returned to the coopera- tive’s ‘owners. “This is the members’ share of the profits as owners of their co-op,” MEA’s Board President keep a rein on the cost of deliv- ering the services, we anticipate that we can continue to return a share of the margins to the owners.” MEA returns capital credits each year to members from pea margins after the co-op as paid its expenses and in- vested in the system. Capital credits represent the difference between what it actually costs to provide a customer with electrical service and the amount the customer pays. These are the funds borrowed by the co-op for constructing and maintaining adequate facil- ities and service. The amount of money each member receives will vary de- pares on how long they’ve een a member and the amount of electricity they have used in years past, said Bruce D. Scott, MEA spokesman. Checks will be issued in the next month for those receiving, more than $25 and for those with current accounts. The members who do not qualify will have their dividends ap- plied to their accounts. (907) 274-1056 Dave AUG 0 4 1995 Frontiersman Client No. 4 Sane power line sparks fire Firefighters responded early Monday morning to a fire near Lake Lucille Drive in Wasilla. An electrical line had gone down sometime around 5 a.m. be- tween a row of houses and the railroad tracks, igniting several junk vehicles and some trash in the area. The firefighters had to wait until a Matanuska Electrical Associa- tion crew could come out and turn off the electricity. Meanwhile, at least one of the vehicles was consumed in the fire. The downed line is believed to have been caused by a tree limb that fell on the line. A power outage affected 10 homes and power was restored soon afterward, according to MEA. Services == (907) 274-1056 Date AUG 16 1995 Frontiersman Client No_ FQOA MEA weeds By LAURA atisT ¢2en 246 2°2- MITCHELL HARRIS Frontiersman reporter The mass of metal rumbles toward the brush on huge rub- ber tires. The blades on the front of the machine start churning as it begins clearing through bushes and trees. The machine leaves behind crushed stems and torn tree trunks. And following at quite a distance are strong figures wielding chain saws. As of the end of July, the Matanuska Electric Association has used one of these processes or a combination of both ma- chine and man to clear 177 miles of land under power lines across the Mat-Su Borough and Eagle River. And though resi- dents aren’t always thrilled with having the power lines around their homes cleared away, MEA officials stand by their procedures in the name of safety and consistency. The clearing processes at MEA are watched over by Neil Thomas, director of that depart- ment. “In the last five years, clear- ing has been pursued more ag- gressively,” Thomas said. Clear- ing consists of removing ob- structions from the area of the ower lines, usually trees and rush. MEA clearing is based on an eight-year revolving sys- tem, in which they will clear every mile of power lines in the hopes of keeping the lines clear until the next cycle. Under each power line, MEA is given an area, the easement, that it is entitled to clear. Sometimes landowners get upset when their favorite cot- tonwood or shielding length of trees gets targeted as a potential problem. “As a utility, we are con- cerned that once people power, we can maintain that ap as consistently as possi- said operations and engi- neering director Bob Mau. And if a tree is a potential power outage waiting to happen, the tree has to go. “We've been threatened that we'll be shot if we touch a tree,” Thomas said. “ And in these cas- es, we'll call the troopers and have them stand by ... But we don’t want to have to do that. Usually we'll just try to talk the individual into letting us clear at a later time.” And it’s not just a matter of aesthetics, Mau said. If an out- age occurs as a result of a tree limb, a lineman will have to get the problem solved at the source. If that means climbing a tree that is very close to a line, this puts the lineman in danger. There are two different steps in clearing, Thomas said. Hand clearers usually go in first to mark fences and other obstacles and to cut trees that the machines can’t wade through. Then the machines clear wide stripes of brush and trees leaving behind branches and tree roots for the hand clear- ers to take care of manually. One day recently, the big Ker- shaw clearing machine was bro- ken down, so both Michael Feil and Howard Myers were hand clearing. They skillfully wielded their chain saws, slicing through brush and trees, oblivious to the wood chips spraying out around them. The two are MEA employees; their titles are Clearing Special- ist II. The utility company also contracts with an Anchorage , Clears way for power supply eS - ay ae: F ope LAURA MITCHELL HARRIS/Frontiersman Michael Feil, part of MEA’s tree-clearing crew, cuts a tree down in an easement under a pow- er line. After cutting down several trees, he and crew member Howard Myers chopped up the tree trunks and pushed the branches aside, out of the owner’s way. company that brings out a crew of 18. The crews have been working on several areas in- cluding Palmer Fishhook, Lazy Mountain, the Butte and Hunter Creek, in addition to clearing for new services. The workers are certified tree trimmers. This meets state labor requirements in addition to making for an experienced work force, Thomas said. “It’s quite a workload,” Thomas said. “It’s hard work ... lots of these guys are ex-log- gers, arborists and foresters.” In other words, they know what they are doing, Mau said. He pointed out that if an MEA member has a tree the person thinks is too close to the lines, the member can call MEA and the tree trimmers will take care of it. They'll even cut it into lengths of wood and pile it. But basically, safety and con- sistency of service are th t important issues for ME/ said. “We look at the big | first.” a} (907) 274-1056 Date AUG 2 5 1995. Frontiersman Client No. YOU Yooh _ 300, 000 plunged into dark DIwe 302 420f A power outage left 300,000 people across the state without electricity from Point Hope to Fairbanks about 1:30 p.m. Tues- day. Power was restored to all Valley residents by 3:30 p.m. ex- cept for 25 members in Eklutna, according to Matanuska Electri- cal Association. The exact cause of the outage has not yet been determined. Three lines carry power from the power-generating plant in Beluga south of Anchorage through southcentral Alaska. One line was down for sched- uled maintenance Tuesda when the second line faulted, transferring wattage to the third line. The third line was over- loaded and failed, causing the outage. MEA is a wholesale power customer of Chugach Electric Association. The Beluga plant, across Cook Inlet from Anchorage, is MEA’s primary source of elec- tricity. QUALITY SERVICES pate SEP 0 1 1995 Anchorage Daily News Client No. O04 Outage caused by birds? I am responding to the article ‘‘Out- age remains mystery; utility studies ways to hasten response”’ (Aug. 24). As an electrical power engineer in private practice, having more than 30 years of power generation, transmission and sub- station design experience, I offer my insight into this problem for all parties to consider. The power-line outage may well have been caused by birds resting in the tower members and ‘“‘dropping’’ their “do-do” on the insulators, causing an “are over” of power to the metal tower ground. Rain will wash the insulators clean again, making it difficult for linemen to spot the source of trouble. I discussed a similar problem with the manager of the Juneau Light and Power Co. recently when it had eagle ‘‘do-do”’ problems on its 138-kilovolt transmis- sion-line towers. Getting power back more quickly is the major problem, which needs to be addressed with priority should we be faced with an earthquake knocking down transmission-line towers or cut- ting underground utilities (gas, tele- phone, power). I was the federal disaster officer who helped restore power to Bethel in De- cember 1975, when its power plant burned to the ground in minus-40 tem- peratures. The standby power genera- tors failed to start at the hospital and the airport. While employed by Chugach from 1983 to 1987, we were in the process of Mek combining the Municipal Light and Pow- er and Chugach utilities. The concept had financial merit. In light of this recent disaster, one power-dispatch cen- ter properly trained to respond to disas- ters could have minimized the power- outage period. $02 210E ¥20A4_ Henry P. Lang, P.E. QUALITY SERVICES Anchorage Daily News Client No. Yooh _ Failure mystery solved — “Outage remains mystery,”’ says the headline in the Aug. 24 article about the Railbelt-wide power failure that oc- curred on Aug. 22. Mystery? I wonder. Check out the article in September’s Popular Science titled ‘“‘The Secret Agenda of a Military Project in Alaska.” This is the ‘‘. . little known Pentagon-sponsored radio-phys- ics project, called the High Frequency Active Auroral Research Program (HAARP) ...” It’s an “... array of 36 antennas ... that stretches hundreds of miles across central Alaska ... and now undergoing testing ...” One of its functions is to act asa‘... ‘soft-kill’ weapon system using ELF (Extremely Low Frequency) waves ... to overload power-distribution grids ...”’ So, folks, maybe this is just our military playing around with its new toy! Joa 20€& 4204 — Steve Williams wert Services Q (907) 274-1056 __ SEP 07 199% Dat COPPER RIVER COUNTRY _JOURNAI 0" Intertie Study Expected by October Bor 4229 W0:E RURAL ALASKA-The results of feasibility study that is being performed on the Sutton-to-Glen- nallen Intertie have been delayed again. AN ENVIRONMENTAL consulting firm that has offices in Anchorage and Juneau, (with the creative name of "CH2MHILL"), has been contracted to perform the study. According to Percy Frisby, Director of the Divi- sion of Energy for the Department of Community and Regional Affairs, the study is expected to be finished by the end of September or beginning of October. THE STUDY WAS originally expected to be done in the spring, but has been delayed several times, due to new information. AIDEA, a state agency, contracted CH2MHILL to do the study. Governor Tony Knowles is expected to receive} the study early in October. He will then review the document and decide how to proceed. The Sutton-to-Glennallen Intertie had support in the Copper Valley Electric service area, but strong) Opposition in the Sutton area, through which the intertie would pass. Quality Services (907) 274-1056 Date _ SEP 08 895 Frontiersman Client No._GYvLo MEA to increase electric rates Jor 2104 420A Members/owners of Matan- uska Electric Association will have their electric rates increased by less than 1 tear beginning Oct. 7, according to a release from MEA. The 0.86-percent increase will raise the average residential cus- tomer’s bill by 63 cents for 846 kilowatt hours. Customers using 2,000 kilowatt hours, on average, will see a monthly increase of $1.37. MEA’s board of directors approved the change to bring the ined i to the financial- earnings level in the co-op’s cost of service filing with the ie Public Utilities Commission. Although all of MEA’s earn- ings are returned to the members in the form of capital-credits payments, its lenders require the utility to make a modest profit to show financial stability. Director of Administration Jim Woodcock said that savings re- sulting from MEA’s refinancing its federal debt last winter en- abled the co-op to avoid a larger rate increase. Qeus= 2 (907) 274-1056 Dae SEP 08 85 a Frontiersman _ Client No. YUeA Outage plunges Palmer into dark ise Yzou 302 PALMER — About 1,100 homes and businesses in the Palmer area lost power Thursday morning when a large pee of plastic foam with foil backing flew off a truck and hit MEA’s distri- bution line. The incident occurred near Hemmer Road off Palmer-Wasilla Highway. Power was out from 8:40 to 10:05 a.m QUALITY SERVICES nave SEP 0-8 1995 Anchorage Daily News Client No. “QdA Flying foam knocks out power — A man hauling a load of building supplies down the Palmer-Wasilla Highway knocked out power to much of downtown Palmer Thursday when a piece of foam flew out of the back of his pickup truck and hit a roadside powerline. The outage, which affected about 1,100 homes and businesses, lasted less than a half hour, said Bruce Scott, a spokesman for Matanuska Electrical Association. Scott said the unidentified man was transporting the supplies held down by a single strap when the foam and other objects flew out of the truck about 8:40 a.m. The foam struck two wires touching off an arc and the system short-circuited, he said. A woman driving behind the pickup told MEA officials that the man stopped to pick up his belongings and then continued on his way. 3°? ¥2¢A 219 €& Qees ~ ) (907) 274-1056 Date _ SEP 13 1995. Frontiersman Client No.__ 4204, Palmer falls dark because of tree Bo Yate BIE Power was interrupted early Friday morn- to north of Talkeetna Spur Road. By 10:30 a.m., ing to more than 250 homes and businesses all ie" 50 customers had power restored, and when a tree fell through the line north of Wil- by early afternoon, line crews had replaced low, according to the Matanuska Electric Asso- _ burned crossarms on a utility pole at the scene, ciation. The outage affected members along enabling MEA to energize lines involved, MEA the Parks Highway from Sheep Creek Lodge officials said in a statement. Quuolity Servires_ (907) 274-1056 Date SEI 13 1995 Frontiersman Client No. U2 cttoN Company offers to buy Sutton mine coal d2on 3ol Frontiersman staff A Connecticut firm has of- fered to purchase all coal of- fered for export from the Jonesville coal mine in Sutton. Officials at Glencore Ltd., of Stamford, Conn., said it is “preparing a formal offer for the purchase of 100 percent of the Alaska coal Nerox (Ener; Corp.) will have available for oo to the export market. lencore added that it pro- poses to enter into a five-year contract with the initial price to be effective April 1, 1996, to re- main firm through March 31, 1997,” after which date the price would be renegotiated on an annual basis. The export contract price would be based on the Japanese steam-coal market, now averag- ing from $39.50-$42.85 per ton, according to Nerox president Nicholas E. Ross. Nerox has already signed one domestic contract to supply coal to an Alaska-based home- heating distributor. Samples of Jonesville coal have been dis- tributed locally, and Ross said interest for other domestic pur- chases is strong. The mine near Sutton has a capacity of more than 500,000 tons annually or about $20 mil- lion worth of coal at current ex- port prices. Nerox expects the first year’s sales to exceed $10 million. Mine QUALITY SERVICES Date__SEP 14 1995 __ Anchorage Daily News Client No. #204 MEA power outage affects Eagle River, Birchwood About 1,150 customers of Matanuska Electric Association lost electricity Wednesday afternoon for up to two hours. The outage affected customers from downtown Eagle River to the South Birchwood area, along the Old Glenn Highway, said Tim Mahoney, an association dispatcher. A wire fell in the vicinity of Santa Maria Drive in Eagle River at 3:40 p.m.¢2 2/°& 420A i = »~ I (907) 274-1056 Date — rontiersman _ Client No. #204 SEP 2 0 1995 Elestric war stills 302 420A St0E By PAUL STUART Frontiersman reporter PALMER — The war between Chugach Electric Association and Matanuska Electric Associ- ation — which erupted in Feb- ruary 1994 with a takeover at- tempt against MEA by Chugach —- may have simmered down, but apparently it isn’t over yet. Dissension between the two utilities was still in the air earli- er this month, as MEA entered cautiously into discussions with five other Railbelt utilities — Homer Electric Association, Alaska Electric Generation & Transmission Cooperative (AEG&T), Chugach, and two municipal utilities, Anchorage Municipal Light & Power Co. and the City of Seward — about ways to save money for hun- dreds of thousands of cus- tomers in Southcentral. That hostilities were still be- neath the surface became ap- parent this year when, at a joint uncheon for “peace-making” on Jan. 5, Chugach officials pro- vided MEA representatives with sealed envelopes contain- ing what was termed a “study.” The study,” MEA member and public relations director Bruce Scott said, “purported to show the savings that would re- sult if Chugach took over MEA, closed MEA’s main office, fired 50 MEA employees and trans- ferred 27 other employees to Anchorage.” According to Scott, MEA’s staff theorized that Chugach’s financial problems were driving takeover attempts. MEA and AEG&T retained independent financial and en neering firms to determine why Chugach’s transmission and power generation costs “contin- ue to spiral out of control.” AEG&T, formed by MEA and Homer Electric Association a decade ago, purchases power for both utilities. AEG&T subsequently re- leased a study claiming electric utility customers in Southcen- tral would save as much as! $264.3 million over the next decade if caueacls operations were combined with other Rail-| belt utilities. In 1997, MEA customers} could be paying nearly 10 per-| cent less for power, and Chugach customers about 9 percent less, than they will be under existing projections, the} study maintained. | But Scott said MEA is still) busy making peace overtures to, Chugach. j During a recent MEA board | meeting, Scott recounted,) “MEA director Frank Mielke | applauded (MEA) president Barbara J. ‘Tamie’ Miller’s ef- forts to improve relationships between the two utilities.” See Business DiGest Pace A8& There's a lot to be patched up. As Scott described it: “Chugach began its takeover campaign (in 1994) with a pro- osal simultaneously faxed to EA’s general manager, the media and chambers of com- merce. “MEA responded by gather- ing input from our members and informing them about Chugach’s proposal. “This informational effort be- came particularly important,” Scott continued, “after Chugach and its allies purchased news- paper and radio ads, asking our members to defeat a bylaw amendment which would have made it harder for anyone to take over MEA. The ‘media war’ was expensive for both sides.” Scott said MEA’s board felt it had a responsibility to thor- oughly analf?ze Chugach’s pro- pos rather than reject it out of and. It meant retaining financial and investment banking, ser- . vices. All told, Scott said, MEA spent between $310,000 and $380,000 to study the offer. But MEA general manager Wayne Carmony felt spending that much to find out a takeover was not in the best fi- nancial interests of members sounded like a bargain to him. “Sometimes you have to spend money to save money,” he said. “It is usually easier after a takeover battle to say you could perhaps have won the battle and spent a little less,” Carmo- ny said. “But if you spent less and were unsuccessful, you would not be ina position to debate it; the other utility would be mak- ing all your members’ decisions for them.” Carmony added that while there is a minority of the mem- bership that was disappointed Chugach was not successful in taking MEA over, and has pub- licly or privately expressed con- cern over the cost of fighting Chugach off, it is important to remember that MEA’s efforts ultimately saved customers mil- lions of dollars and resulted in better relationships with Chugach and other Railbelt utilities. In February, following a re- view of Chugach’s Jan. 5 “sealed envelope” study, MEA filed a lawsuit, seeking to force Chugach to allow its members to vote on three bylaw amend- ments that MEA said would lead to reduced rates and im- proved service. MEA is a voting member of Chugach. The Anchorage Superior Court ruled against MEA after Chugach successfully argued that its own bylaw provision providing for a petition drive was illegal. MEA attorney Steve Ellis said he beled MES could win on appeal, but that an appea weld make “no sense tbe: cause Chugach’s board now agrees with the substance of EA’s lawsuit. The legal action coast MEA $26,000: : ! But after an election changed Chugach’s board composition, Ellis said, the board came to agree with MEA’s view. “It would only cause hard feelings to continue to seek an order compelling Chugach to do that which their board is al- ready inclined to do voluntari- ly,” Ellis said. Looking for ways to increase its representation, MEA recently authorized Miller to run for Chugach’s board. MEA surveyed Chugach and MEA members in preparation for the campaign, at a cost of approximately $7,100. jut Chugach, Scott said, re- fused to allow Miller to run for its board this April, sa ing MEA is a member of AEG&T, which Chugach considers to be a competitor. parking "~ SHARON McBRIDE/Frontiersman Trucks line the fence after a day’s work at the MEA building located in Palmer. (907) 274-1056 SEP 2 0 1995 ate Client No. po ee oo, Me “he egations ‘pester Lacher Defeated board candidate claims Lacher exceeded gift limit 302 20H 296 03330329 0339 By PAUL STUART Frontiersman reporter The ongoing labor dispute be- tween the Matanuska Electric Association and the Internation- al Brotherhood of Electrical Workers took a strange twist last week when the name of Mat-Su Borough Mayor Barbara Lacher cropped up in allegations that she had made an inappropriate campaign contribution during MEA’s board elections this year. Lacher oy wih ed denied the allegations Frida’ In a letter to MEA, defeated board candidate Aaron Down- ing of Palmer claimed a business owned by Lacher — Alaska First Title — allowed the use of its bulk mailing permit by rival candidate, Rod Cottle, for cam- paign literature. Cottle was a successful candidate in the April 27 balloting. The allegation by Downing said, “Considering the amount of mail Cottle had posted, the value of Mrs. Lacher’s mailin; permit to Mr. Cottle exceede the $1,000 gift limit allowed by any one person or business or businesses owned by the same person(s).” The $1,000 campaign contri- bution limit is stipulated in the bylaws of MEA. “Yes, | allowed Mr. Cottle to use my bulk permit — I let just about anyone who asks me,” Lacher said. “But he paid the postage.” “I’m sure if they asked him, Mr. Cottle could show them a re- ceipt for the actual postage,” she added. The bulk permit, Lacher said, costs her $75 a year, whether its used or not. “He (Cottle) could not have saved more than a few dollars by using my permit — certainly infinitely less than $1,000.” Downing had also accused Lacher of impeding an investi- Baking by attorneys for MEA king into the election process this year. Lacher admitted she was un- willing to supply details to an investigator who called her. Lacher added though, “I asked her if she was being paid by MEA, and she said yes. So, I told her that I felt this was a waste of MEA’s money, and as a member, I didn’t like that. “I checked, though,” the may- or continued, “and determined I was not in violation of any state laws. If they (at MEA) have a problem with Mr. Cottle’s candi- dacy under their bylaws, their issue is with him. It isn’t with me.” Lacher herself raised another matter that had been mentioned when she said, “I know a lot of people raise their eyebrows on this, because my husband was a union official and worked for MEA for 30 years. Well, so what? I’m proud of that.” Downing told the Frontiers- man he feels the IBEW has been involved in efforts to influence elections to pack the MEA board with members favoring union views. ~ Downing claimed this was a widespread practice in Alaska in virtually all the utility associa-| tions in the state. The complaint about Lacher and other a ing about irregularities in the April MEA board of directors election were partially responsi- ble for sparking an investigation by MEA. ‘ Attorneys and investigators hired by MEA reported back on July 25 that no significant prob- allegations by Down-- lems in the election were evi- dent. The re} ae did say, however, that IBEW Local 1547 business manager Gary Brooks refused to be interviewed about the elec- tion. The report was reviewed by the MEA directors at their Au- gust meeting. Quulity Services (907) 274-1056 eae SEP 2 0 1995 Fro Client No_ Y2¢eA Negotiations continue tween M ra | a be y-union - te O324 0333 P3387 H2oA oe ; By PAUL STUART Frontiersman reporter Arbitration is scheduled for mid-October between the’ Matanuska Electrical Associ- ation (MEA) and the Interna- tional Brotherhood of Electri- cal Workers regarding a poli- cy of using contract labor to cut costs, » But both MEA and the union indicated to the Fron- tiersman last week that nego- tiations are going well, an pay eed off the arbitration. e dispute between MEA and the IBEW Local 1547 is centered around a poli suggested July 13 by MEA’s general manager to use con- tract labor instead of MEA union employees whenever | possible,.to achieve savings of as much as $57 an hour perman. © The argument in favor of contractors is that lower ° maintenance and construc- tion costs for MEA would translate into lower electrici- ty rates for consumers in the Valley. Wayne Carmony, MEA general manager, toldthe ard of directors in a July 13 memorandum the use of con- See. rather than MEA employees whenever possi- ble would save labor costs of up to $57 an hour per man. Carmony told the board the cost to MEA for contrac- tor’s hourly rate per man has ranged from $75-$95 this ae He said the cost per our for IBEW employees, with benefits figured in, was “conservatively” in the range of $123-$132 per hour. Johnson and IBEW busi- ness manager Gary Brooks indicated negotiations were still sensitive, and Brooks said he preferred not to go into details at this point. The same issue of IBEW- versus-contract labor came up recently in a dispute in- volving the Kodiak utility, and the union won. In this, case the utility had to pay time-and-a-half wages to IBEW members, even for work that already been per- formed by contracted work- ers. The Kodiak project was the opens of large Sitka spruce trees that stood in the way of hooking a family’s house up to electrical service. Q (907) 274-1056 Date SEP. : 1 1995 COPPER RIVER COUNTRY _ JOURNAL Client No_ KYQa A COPPER RIVER-When the power went outat Tolsona Monday, the new KOOL oldies radio station, which has a translator at Tolsona Ridge, went down tem- porarily. But KOOL and PBS 'T'V both came back on that day. However, KCIIU in Valdez said that as of September 21st they were still not broadcasting yet in the Copper Valley due to the Tolsona incident. KCHU was having troubles getting to the site from Valdez because four spots on the Richardson Highway, starting at Mile 60, were cither flooding or experiencing land slides Septem- ber 21st, and the water was still rising. CVEA reported a power outage Thursday morning near Mile 50 on the Richardson. An acrial search found a large tree on the transmission line near ‘Tiekel River Lodge, and techni- cians got the power back online by 1 pm. Much of coastal Southcentral Alaska has been experiencing repercus- sions from ‘Typhoon Oscar, 22'S © 424 Services Quality Services (907) 274-1056 Date SEP 2 1 1995 COPPER RIVER —COUNTRY JOURNAL, _ Client No. 490 4 TOLSONA LAKE-There was a power outage from Mile 182 to Mile 109 on the Glenn Highway on September 18th. It was caused by a hill slide above the Ranch House at Mile 173 on the Glenn, The CVEA line crew and Glennallen Volunteer Fire Department were on the scene at around 8 am. Local people called the fire department because when the hill began to slide it took the trees with it, which fell on the power line and caught fire. CVEA said the primary line was downed by a tree, and crews cleared the area and replaced the line, putting power back in service by noon, --'86 Fee (wer & @ a (é q Qa — (907) 274-1056 Date OCT 04 1995 Valdez Star Client No_Y2eA Deal To Lower Electric Power Rates Is Close by Pat Lynn Editor, The Star soa 210k YAOA ANCHORAGE—Copper Valley Electric and Chugach Electric have reached an agreementat the staff level to share the costs of building a $55 million electrical inter- tie between: Sutton and Glennallen with Chugach paying 80 percen: of the cost. The agreementwas reached Tuesday afternoon of this’ week in a staff meeting be- tween Copper Valley general manager Clayton Hurless_ and Chugach staff members at the Chugach headquarters in Anchorage. Under terms of the tenta- tive agreement, Chugach would pay 80 percent of con- struction of the line, or $44 “million and Copper Valley. . would underwrite 20 percent or $11 million. The 138,000-volt line would run approximately 130 miles between the two com- munities. ~ The staff agreement is sub- ject to approval of the boards of directors of both utilities and the state Public Utilities Commission. The major “unknown” in the deal is the status of a $35 million interest-free state loan granted by the legislature to help underwrite the cost of electrical intertie line. Those funds have been impounded by Gov. Tony Knowles pending a review of the R.W. Beck feasibility study which was the basis for building the transmission line. Pr Power Suppliers May Share fost Of Building Intertie, Despite Protests Continued from Page 1 BIA 2IVE YAVGA Once the transmission in- tertie comes on line, Copper Valley would have access to wholesale power from Chugach at 4 cents per kilo- watt hour. And that could meana rate reduction of 3 to 5 cents a kilowatt hour for Glennallen/ Valdez consumers, accord- ing to Joe Griffith, the ex- ecutive manager of Chugach. Hurless was more cautious. “A three cent reduction is not impossible if everything works to perfection,” he said. Currently, Copper Valley pays 6.4 cents to generate power from the Solomon Gulch hydro plant which operates at full power only five months a year. The rest of the year, Cop- per Valley pays a whopping 15 cents per kilowatt to gen- erate power from aging and inefficient diesel-powered generators in Glennallen and Valdez. As a consequence, Valdez and Glennallen consumers face the highest, non-subsi- dized electric rates in the na- tion. Residential consumers in Glennallen currently pay 21 cents per kilowatt hour; Valdez residents pay 17 cents. Consumers in Anchorage, by comparison, pay 8 to 10 cents per kilowatt hour. The benefits to Chugach would be access to power from the Solomon Gulch hydro plant and, potentially, selling cheaper power to Alyeska which now produces its own power from diesel- fired generators. Chugach is the largest elec- tric power provider in the state, generating and supply- ing power to 180,000 whole- sale and retail consumers. It currently sells power to Homer Electric, Seward Mu- nicipal Power, the Matanuska Electric Association and to the Golden Valley Electric in Fairbanks in addition to re- tail customers to Anchorage. Ww ) (907) 274-1056 Date OCT 04 1995 Frontiersman Client No. Y 22 MEA, union settles on subcontracting issue 302 DIOL Matanuska Electric Associa- tion and the International Brotherhood of Electrical Work- ers, Local 1547, have settled an issue concerning MEA’s sub- contracting of work on lines, avoiding arbitration that was 420A 0329 339 353 scheduled for Oct. 16. The settlement calls for a two- ear extension of the current la- or contract, and for two addi- tional regular employees when work is being performed by outside contractors. “This is a good compromise and should result in a period of good labor relations,” MEA’s general manager Wayne Car- mony said. MEA’s board of di- rectors approved the agreement at a meeting last week. Qess< (907) 274-1056 Date OCT 0 5 1995 COPPER RIVER Client No. Y2cA Boreal Buzz COPPER RIVER-Reyne Brockman of Nelchina will be the Chamber's new Executive Director. Reyne is filling the position vacated by Connie Sackett, who has been the Executive Director for 5 years. Dozens of volunteers were recently recognized at the annual Cham- ber volunteer recognition night. ALASKA-The Permanent Fund Dividend check this year will be a large one. The state says that each check will be $990.30. COPPER RIVER-There was a power outage on Octo- ber 3rd. CVEA says it was caused by a raven "coming into contact with energized circuits near the Petro Star Valdez Refinery." The incident took power down in both Valdez and the Copper River Valley. COPPER RIVER-Copper Valley Electric and Chugach Electric are working on a power sales agreement. A major glitch, though, is that the Sutton-to-Glennallen transmission line will have to be completed first. ee GUTION ~ QUGN Ke QUALITY SERVICES pate_OCT 13 1995 Anchorage Daily News Client No. SocA Fuel surcharge rates fall | The Alaska Public Utilities - Commission granted Chugach Electric Association’s request for a decrease in the fuel surcharge rates for both retail and wholesale customers. Effective with the October billings, the retail surcharge will decrease from $0.00876 per kilowatt hour to $0.00631/kwh. Fuel surcharge rates also have dropped slightly for Chugach Electric’s . wholesale customers: Matanuska Electric Association, Seward Electric System and Homer Electric Association. 910A 302 420A Q Quality Services (907) 274-1056 Dare OCT 18 1995. Client No. H2O4 Governor 2RNRO6 2I0E -362- #208 CITY HALL—Senti- ment in the Governor’s of- fice appears to be shifting against the construction of an electrical transmission line between Sutton and Glennallen to bring cheaper power to the Copper River Basin and Valdez. That word from Clayton Hurless, general manager of Copper Valley Electric, to the Valdez city council Monday night. “Abouta month or so ago we began getting negative ECEIVE/) NOV - 1 1995 Alaska Industrie] Development and Export Authority May Kill Power Line Funding information fm the Governor’s office that the Governor was lining up against the (electrical) inter- tie line,” Hurless told the council. “So we are going to need to exert all the political and in- fluential pressure we possi- bly can on the Governor,” Hurless added. But reaching the Governor’sear may be tough, according to Hurless. “He has the ability to kind ofinsulate himselfaway from hs pablte on these kinds of issues if he so chooses,” he said. Hurless also reminded the council that Gov. Knowles had said while on a recent visit to Valdez he would not make a decision before com- ing to Valdez to discuss the project. “It would be helpful if he could be reminded of that commitment,” he said. Hurless sees the transmis- sion line as the only hope for cheaper power in the Copper River Valley and Valdez. Ini- tially proposed as a $55 mil- lion project to be borne by Copper Valley Electric ratepayers alone, the project is now moving towards a, joint effort with Chugach Electric. Agreement has been reached at the staff level to, share the cost of the project on an 80-20 basis with Chugach absorbing the lion’s share. See Governor... Page 10 S S «© es Governor Could Pull Plug on Chugach-Copper Valley Proposal AIOE 302 ¥20R Continued from Page 1 If the line comes to pass, it would allow Copper Valley to tap into wholesale power at Chugach for just 4 cents per kilowatt hour. Copper Valley now pro- duces power at enormous cost, resulting in residential rates of 17 cents in Valdez and 21 cents in Glennallen and the Copper Valley. By tapping into the cheaper Chugach power, consumers in Glennallen/Valdez could see arate reduction of 3 cents per kw, and perhaps as much as 5 cents long term. For Chugach, the power line is an opportunity to sell off surplus power and spread their costs over a wider con- sumer base. The key to construction of the power line is a $35 mil- lion interest-free loan granted by the legislature two years ago. Total cost of the 130- mile line has been placed at $55 million. “That loan has been im- pounded by the Governor, pending another review of the entire project. “There’s a serious pro and con argument going on within the administration,” says Hurless. Hurless also hinted darkly that a lawsuit might be brought against the Gover- nor if he withdraws the $35 million funding for the line. If the governor issues an adverse opinion, what effect does that have on Alaskan law? asked Hurless. The $35 million state loan is the result of alaw adopted by the legis- lature and signed by former Governor Hickel. “We haven’t found any- thing to indicate that with- out going back to the legisla- ture he has the ability to undo what has been done by a pre- vious legislature.” Hurless said the Governor is expected to make public his decision by Nov. 15. Q’"" “TY SERVICES pate vel 18 1995 Anchorage Daily News ntertie — interest revives Utilities’ offers give plan another chance 3o2r 4204 240A By S.J. KOMARNITSKY Daily News reporter PALMER — Behind the scenes negotia- tions have breathed new life into a plan to build a controversial power line be- tween Sutton and Glennallen with the help of a state-guaranteed loan. Several deals have been struck that could make the intertie a more viable project, at least from the state’s point of view. Chugach Electric Association, the state’s largest utility, has offered to pay 80 percent of the costs of building and maintaining the line while Copper Valley Electric Association, which serves Glenn- allen and Valdez, would pick up the rest. The line would connect the two utilities. Chugach also is negotiating with the Petro Star refinery in Valdez, the line’s biggest potential customer, to sell power at a reduced rate in exchange for an agreement by the refinery to not produce its own electricity, Chugach chief finan- cial officer Joe Griffith said. The second deal still is being negotiat- ed, and both would need to be approved by the utilities’ boards as well as the Alaska Public Utilities Commission. Chugach also needs state approval to receive a $35 million interest-free loan set aside for the project and up to $25 million in state-issued bonds. Gov. Tony Knowles will make that decision. A new report on the project, which takes Chugach’s proposals into account, is due out within the next several days. Knowles spokesman Bob King said Tuesday that no decision has been made, but having Chugach involved would ‘‘cer- tainly weigh in favor of accepting this Please see Page B-5, INTERTIE INTERTIE: Deals could make line viable fo oa ee B-1 project.”’ That’s a much different picture than this spring when the line appeared doomed. A state study then sug- gested a smaller project — a $32 million hydroelectric project at Allison Lake near Valdez — might be cheaper in the long run for the Copper Valley area. And Petro Star announced it planned to produce its own power by installing a turbine. The new deals have an- gered those who oppose the power line. “It’s unbelievable the administration hasn’t killed this project yet,”’ said Chris Rose, a co- founder of Alaska Citizens for Responsible Energy De- velopment. “Clearly, there’s no basis for it, that it’s not in the best interest of Alaskans. I’m concerned that special interests are trying to push it through.” “‘We’ve been fighting this thing for three years and we felt we might be winning,’’ said Robin McLean, a board member of citizens group. “It’s dis- illusioning to see changes occur not in our favor.” But, she said, she wasn’t ready to give up hope. Like everything with the intertie, Griffith said Chu- gach’s plans hinge on Petro Star. If it decides to gener- ate its own power, Chu- gach would probably not be interested in paying for the line. Copper Valley Electric wants the line to replace two aging diesel generators it now relies on for power when low water levels make its hydroelectric dam at Solomon Gulch unusa- ble. Richard Curtin, Petro Star’s general counsel, re- fused to comment on the company’s plans. He said if the company does put in a turbine, it will be installed ” OG next summer. For Chugach, the Hine would mean more custom- ers and a source of power in times of need, Griffith said. It also would mean cheaper power for Copper Valley residents, who now pay about twice what An- chorage consumers pay. The cost of building the line would be passed on to Chugach customers, he said, raising an average bill about 35 cents a month for about four years. The rates would go down after that. But, he said, doesn’t pencil out, won't do it.” “= i we Q Quality Senices 2" (907) 274-1056 Date Frontiersman Client No.__YteA OCT 2 0 1995 Intertie argument.,,, .,, powers up again 302 420A 6A By LAURA MITCHELL HARRIS Frontiersman reporter Though some thought the is- sue was dormant, the topic of the Sutton to Glennallen intertie is back. This time the topic of extending the controversial power line is revived as inter- ested parties wait for word on whether a state loan will be of- fered for the project. Locally, this brings up con- cerns the power line is a finan- cial waste and an eyesore that will spoil the Mat-Su Valley countryside and hurt tourism. The Chugach Electric Associ- ation has said it would fund 80 percent of the costs of building and maintaining the power line, over and above what the state loan would cover, if the Copper Valley Electric Association would pay for the remaining costs, Chugach spokesperson Vivian Kinnaird said. The inter- tie would join the two utility as- sociations. But the whole deal seems to depend on the outcome of ne- gotiations between Chugach and the Valdez-based Petro-Star refinery. The refinery, the line’s biggest potential consumer, has the ability to generate its own elec- tricity, Kinnaird said. If Petro- Star agreed not to produce its power, Chugach would charge them at a significantly reduced cost. Kinnaird said the way she understood it, Chugach’s offer to foot the majority of the costs is contingent on Petro-Star agreeing to Chugach’s terms. CEA and CVEA are both waiting for word from Gov. Tony Knowles on a 50-year, in- terest-free $35 million loan al- ready designated by the state legislature for the project. Knowles is waiting for recom- mendations from a three- agency panel that includes rep- resentatives from the Depart- ment of Regional and Commu- nity Affairs, the Department of Natural Resources, and the Alaska Industrial Development and Export Authority, Kinnaird said. Opponents to the Intertie ex- pressed disappointment that the issue again is being raised. “] don’t know what to think about this,” said Dori McDan- nold, the Mat-Su representative for the Alaska Center for the Environment. She said a previ- ous feasibility study had report- ed that this project wasn’t the most economically practical ef- fort. McDannold said the power line would sketch an unsightly scar across the beautiful Mat-Su Valley, as well as improve ac- cess to remote wildlife refuges. But basically it all comes back to money, and the plan is not the best one in terms of eco- nomics, she said. “And it seems that with the intertie, all the negative impacts are felt by the Matanuska Valley and the positives go to the resi- dents of the Copper Valley,” she said. Chugach’s Kinnaird said the a still have to be approved yy the CEA and CVEA boards, as well as the Alaska Public Utilities Commission. The pro- ject will affect rates to all CEA customers, probably adding some 35 cents to each average bill for four years, she said. Wholesale customers, like the Matanuska Electric Association, would be given the option to pay for the construction. If these customers choose not to chip in, the other associations wouldn’t reap the benefits from the margins, Kinnaird said. QUALITY SERVICES OCT 2 0 1995 Date. Anchorage Daily News Client No._ Yuen _ The fight against the intertie is costing couple more than a vie ser #oR Dpse SUTTON — The intertie has’ already cost Robin McLean and Chris Rose their just the best view. Their log house, basement and the walls so far, rises on a hillside, its empty window openings fac- ing south across a for- est of aspen, thin and straight as bayonets, toward Crag Peak. The Primero ne - site is about 1 = yards farther up, at MIKE DOOGAN the top of the hill. But if they lose, and the intertie is built, they’d have had to look at it every day from there. “The sanctity of these mountains is going to be lost,”” McLean said. McLean, 30, is tall, dark-haired, in- tense, a lawyer by training but a potter by choice. Rose is five years older, big, fair-haired, sunny, with a law office in Palmer. “It takes a while to get accepted in Sutton to begin with,” Rose saidj“‘Proba- bly longer if you’re a lawyer.” Sutton is a couple of stores and a sign on the Glenn Highway, 55 miles northeast of Anchorage. The Matanuska Valley narrows here, as the river that carved it nears its source: “This valley, to me, is the most beauti- ful place I’ve ever been,” McLean said. McLean is from Peoria, Rose from Des Moines. They met in the Anchorage court- house, when she was still Evang to make a go of the law. They moved to Sutton 3% years ago, to be caretakers at the Alpine Historical Park. They liked it here. About the time they found some land to buy, the intertie came back to life. “We knew when we bought this land we were buying this controversy,” Rose said. The intertie would connect the power system of Anchorage to the power system of Valdez. The power line would begin in Sutton and end 125 miles away in Glenn- allen, running along a_ 150-foot-wide swathe cut through the foothills of the Talkeetna Mountains and across the Mata- nuska River’s tribiftaries until it left the valley. Although the intertie is an old idea, it exists only on paper because it’s never made economic sense. Even after a few legislators steered a no-interest, $35 million loan the intertie’s way, the state’s own studies said it wouldn’t pencil. “It’s a boondoggle,” Rose said. Like any boondoggle, the intertie is being kept alive by powerful political forces. The utility that serves Valdez and Glennallen has convinced its customers they will get lower rates, and is paying a lobbyist to press its case. The electrical union wants the construction jobs. The governor has gone from being sort-of against the intertie to sort-of for it. Bureaucrats are trying to find a way to make it work, if only on paper. Opposing it are the few hundred people who live in this end of the valley, a few environmen- tal groups. Rose is the head of the opposition; McLean the heart. Although that’s not the way she describes it. “Chris is the organizer,” she said. “I’m the pest.” The battle is wearing on them. Fighting your own government requires constant vigilance: When McLean talks about the issue, the frustration in her voice is as sharp as the edge of a well-stropped razor. “It just makes you feel powerless in a country where the people are supposed to be powerful,” she said. ‘I’m not a govern- ment-hater at all, but this to me is an example of how things really get messed up.” Something is badly wrong here. McLean and Rose are young, hard-work- ing, concerned about their community. Just the kind of people politicians are always saying need to get involved. They have. Their reward is to be ground down by a corrupt and thoughtless government, to be taught that being right is not nearly as important as being well-connected. “I will be very happy to get this issue out of my life,” McLean said. “I’ve always believed that things should t--™~ out right. I guess I’ve gotten a | disillusioned by everything.” O Mike Doogan’s opinion column appears in the Daily News each Tuesday, Friday and Sunday. His e-mail address is: mdoogan@pop.adn.¢ 2m. AUTALN| NATHAN» nal, | Q Quality Services (907) 274-1056 Date Oct 30 1995 ALASKA JOURNAL OF COMMERCE | | Client No. YreA | Chugach and Copper Valley develop power sales agreement Chugach Electric Association, Alaska’s largest electric supplier, and Copper Valley Electric Association, which serves 8,000 people from Valdez north past Glennallen and west along the Glenn Highway, are developing a power-sales agreement that would provide a firm, reliable source of economical electricity for CVEA customers well into the next century, Chugach officials said in a statement. Economical electrical service is important to Copper Valley customers, who pay about twice as much for power as Railbelt Alaskans. The proposal also would benefit current retail and wholesale Chugach customers by spreading costs over alarger customer base. However, a transmission line must be completed between Sutton and Glennallen before any power can flow from the Railbelt to the Copper River Basin. CVEA’s plans to build a 138,000- volt transmission line to link its customers to the state’s major power grid are currently on hold while a panel appointed by Gov. Tony Knowles reviews the project. Meanwhile, Chugach and Copper Valley have been working out the details of the contract to ensure a long-term, reliable source of reasonably-priced power for CVEA. Chugach was selected as the preferred provider for CVEA after a review of power supply proposals submitted last year. 302 Bol SIrw~E YV20A4 Sbkl (veh lek; QUALITY SERVICES Date OCT 31 1995 Anchorage Daily News Client No._4%2e4 Research intertie questions A Daily News investigative story re- garding the proposed Sutton-Glennallen intertie would be welcome. Please help answer many questions for rate-conscious electric consumers, citizens concerned about dwindling state funds and residents of small communities. Why do most players in Alaska’s elec- tric industry continue to advocate this proposed power line? How vigorously would they pursue the project without state funding? Who will pay for the inevitable cost overruns that would accompany this ener- gy project? Why do electric utilities ignore, or offer rhetoric to, small communities in the path of the power line? What is the nature of political pressure being applied to Gov. Knowles to delay his halting the intertie? 3or Ye 2126 — Warren J. Keogh Chickaloon Sutton. GA Saito Cy fer 7: Q Quality Servives So! (907) 274-1056 Date NOY 6.1 BH Client No._Y¥2dA Proposed intertie a nasty dish | 3eor Zot Sie Y2z0A acc ast week's flurry of news articles and radio s on the latest develop- ments of the Sutton-Glennallen Inter- tie have brought this issue - no, “boondoggle” once again into the minds of the average resident of Southcen- tral Alaska. And in our minds, a strong word assodation exists: boondoggles and politics unfortunately go together. When it broke eae week that Anchor- age’s Chugach Electrical Association is ne- gotiating to pay 80 percent of the intertie’s cost, it served two purposes. It let the com- munity know that this issue is not dead! And if highlighted what a political plate of spaghetti this issue has become. Hold the boondoggle sauce, please. The news was both good and bad. Take Mike Doogan’: s Anchorage Daily News article for example. He highlighted the nasty dish of political spagetti two Sut- tonites, who are hatd working and con- cemed about their community, have been served. He called it like it is and that's good. But there are a lot more of us at the table. It’s true that Chris Rose and Robin McLean are two of our community leaders in opposing this project. And there are many more — community council heads, Native leaders, the Mat-Su Borough As- sembly, to name a few. Doogan's estima- SY Ew nae VALLEY lion of how.many people oppose this FO- ject is way tco jow! P aad several eee from the Palmer area, And then you could slarl counting the Electric mem- bers in Anchorage. And now the numbers start talking. - Speaking of numbers, if I had a doliar, mmmmm, maybe $10 dollars for every as- tounded MEA and CEA customer who said to me last week, “But I thought they decid- ed not to build the intertie?” maybe I could pay CEA not to build the intertie, just like they are trying to pay PetroStar nery not to cogenerate its own electric- ae to on make the intertie look half fea- Let’ s ask ourselves, as the thousands of citizens and CEA and MEA customers we are, does this make sense? Da we want to pay for this kind of project? Should the State sit back and let a public utility try to “provide incentives to PetroStar to cogener- jure a private company into what is nol in) the beat interest of this state? I€ anything, the state should be doin } everything in its power to encourage ani ate its own electricity. Why? It will save the} state money in the short and long term.| Remember the 50-year no-interest loan? i ‘is also the most conameey sensible} + and responsible alternative. And what better test of leadership for! Governor Knowles is there? His intertie! decision will clearly determine how the he will deal with economic and environmen- tal policies, and tell us really what Kind of governor he wil} be when the next election comes around. Remember how the green crowd swung the last governor's election? _ More spageiti anyone? So the news last week was both good and bad. Good that le are more aware that the project. ae oondoggie never died. Time to s again, to the state and now to ME. at We're stilf at the table. Too bad that din-! ner is stil) spagheiti. Please just hold the: doondoggle sauce this timet! ' Dori McDannold resides in Palmer and is the staff person for the Valley office of the Alas- 4a Center for the Enviranment. She can be reached at 376-8223 €€: 11 MHL S6-81-AON bo'd NOV-16-95 THU 11:32 Q Quilty Semices SS (907) 274-1056 Date NOV 01 1995. Valdez Star Client No. 420A DICE BOR HAGA JUNEAU---A final deci- sion on the electrical power line berween Sutton and Glennallen is moving into the home stretch in Juneau. Valdez Mayor John Har- ris is being summoned to Juneau to meer with Gover- nor Tony Knowles as the governor nears a decision on whether or not to release $35 million in state funds to help underwrite the $55 million project. Anchorage Mayor Rick Mystrom, Scare Representa- tive Gene Kubina, Srate Senator Georgianna Lin- coln, members of environ- mental groups, and execu- tives of Chugach Electricand Copper Valley Electric are also being invited to the skull session. Following the meeting, the governor is expected to send his finding to Mike Irwin, Commissioner of Commu- niry and Regional Affairs for a final recommendation. Gov. Knowles has been sic- ting on the $35 million in- terest-free state loan since Intertie Fund Decision Goes Down To The Wire early last summer when he ordered another review of the project. Environmental groups and residents of che Sutton/ Chickaloon area object co the project, saying it would cre- ate a 130-mile scar through the landscape. Others in Valdez have ex- pressed concern over the bur- den of carrying a $55 million loan—the estimated cost of the project——on less chan 3,000 Copper Valley con- sumers. Since che Governor with- held the funds, Copper Val- ley has entered into a deal with Chugach Electric whereby che cost of the project would be shared with Chugach picking up 80 per- cent of the cost, Copper Val- ley 20 percent. The $35 million stare loan is che key ingredigne in con- struction deal. Wirhout thase funds, the project would col- lapse. A final decision has been promised by the Governor before rhe end of the year. NOV-16-95 ° THU 11:32 Q=ss Ogan ‘ (907) 274-1056 no. _kov0106 Wolds —~<—— meeting Client No 420A By PAUL STUART” Frontioreman raportar CQruabt PALMER ~- “We're counting votes,” said state Rep. Scott Ogan, R-Lazy Mountain, Thurs- day night, in response to a ques- tion as to whether the upcoming Legislature wil] be attempting to override some of the vetoes Gov. Tony Knowles exercised over legislation passed at the last session. Speaking to a small audience at his monthly “Meet Your Leg: islator” night, Ogan zeroed-in on Knowles’ veloes of the wel- fare reform and teacher tenure bills. . “Although,” Ogan said, "some of these bills will be showing up with changes as the governor‘s own bills, [1 give the governor credit,” he added, “the man is a master politician.” Ogan also yielded the floor at his Vagabond Blues coffee shop forum to a speaker seeking sup- port from east Valley residents to oppose the intertie project of Chugach Electric, Robin McLean depicted inter- tie as "a $35 million state-fund~- ed project that would benefit fewer than 3,000 people in the rural Copper River Basin re- gion.” McLean added, “It isn’t needed, and it’s way too much money in these times.” She is part of a citizens’ group trying to get the governor to stop the intertie power-line Project. Ogan also said he will be sounding out constituents to see whether there is support for his introducing a resolution al the upcoming leyislative session for a US. Constitutional amend- ment. The amendment called for in the resolution would give states Lhe power to overturn federal Icgislation by a two- thirds vote of the 50 state legis- latures. P, US Coton Cok QUALITY SERVICES pate NOV 02 1935 Anchorage Daily News Client No.4204 Apply wolf test to intertie I urge Gov. Knowles to make. his decision on the Sutton-to-Glennallen in- tertie by the same method he proposes to use to analyze the newest wolf manage- ment proposal. He should consider wheth- er the intertie is 1) economically feasible, 2) based on good science and 3) supported by Alaskans. The intertie will fail miserably under this test, if reviewed with an unbiased eye. I urge the governor to use one. . Bor 926A 20E — Robin McLean Sutton et 4 Quality Services (907) 274-1056 NOV 02 1995 Date COPPER RIVER COUNTRY JOURNAL Client No. 420A Boreal Buzz ALASKA-Roy Ewan of Gulkana has been reappointed by Secretary of Interior Bruce Babbitt to the Southcentral Alaska Subsistence Regional Advisory Council. He was re-elected as chair of the council. Roy Ewan also works on the federal subsistence board, and is president of Ahtna, Inc., based in Glennallen. NELCHINA-Parents at Nelchina met with parents from Lake Louise recently to discuss forming a charter school for that region. According to Lottie Sparks School PTO president Reyne Brockman, 13 people showed up. They voted unanimously to form a committee of 11 members to write a contract. The first committee meeting will be held November 9th at 7 pm ‘ at Lottie Sparks School. Seven charter schools are al- lowed statewide in rural areas, on a "first-come, first- serve" basis. The Nelchina parents say they submitted some material and sample contracts and budgets to the Copper River Schoo! District. COPPER RIVER-Paul Weir of Glennallen has started a petition asking for equal electricity rates for Cop- per River and Valdez residents. Copper River people pay 19 cents a kilowatt hour, and Valdez residents pay 16 cents, according to Colleen Granger at CVEA - plus “customer charge". "I saw (the rates) once in the Country Journal, and I saw it in the Valdez Star," Paul Weir told the Journal. "It just bugs me that they're getting a different rate than we do." Paul Weir said he addressed the CVEA board recently on the topic. "I told them I didn't think this was fair. I thought it was a co-op, and it's supposed to be equal." Paul Weir was a past director of CVEA, when both regions had the same rates. QUALITY SERVICES NOV 0 3 1995 Date. Anchorage Daily News Client No. 4204 oe Many welcome intertie After reading Mike Doogan’s most recent column on the intertie, I called him. He did not return my call. If he had, he would have learned that this project has been sought by the people of the Copper River Ba- sin and Valdez for over a de- cade. A_ project that will sub- stantially reduce the highest un- subsidized elec- tricity rates in TALKING BACK TO THE NEWS the state, if not —————————"" the nation. A project that has been called by the Ahtna region a ‘‘key”’ to unlocking opportunity for them. A project the people of Valdez have made their No.1 priority for over half a decade. If Mike would have called, he would have learned the rates of Alaskans will drop in the short term 15 percent to 18 percent; that the intertie will provide opportunity to send energy back to the Railbelt when the gas line is built; that this is the most studied project in Alaska history; that CVEA can shut down two aging diesel generators; that CVEA is a small cooperative of local residents trying to provide a better life for their neighbors; and, yes, someone’s ‘‘view’’ might be im- paired. In Scandinavian countries, the quality of life is considered to be as yvood, if not better, than anywhere in the world. They have invested in interties to link the rural areas. As in Scandinavia, all Alaskans deserve the quality of life that this intertie will bring. Interties are not beautiful. Howev- er, I rarely hear complaints about the drive from Glennallen to Valdez or Anchorage to Fairbanks or Anchor- age south. The intertie is there. Inter- ties are necessary; they are highways of energy that provide jobs for Alas- ka families. Mike didn’t call. If he had, he would have learned the Sutton- Glennallen intertie is a project of inclusion. A project that provides opportunity and a future for a large number of Alaskans and a_ huge region of the state. 32 420H =10£- Rep, Gene Kubina District 35 ® ® QUALITY SERVICES pareNOV 0 3 1995 Anchorage Daily News Client No._Y¥20A ' Area residents oppose intertie In 1993, the Sutton, Chickaloon and Glacier View communities were told that an intertie would be built. It would be built regardless of our feelings on the issue. The Alaska Energy Authority, Cop- per Valley Electric Association and repre- sentatives from consulting companies hired to prepare a feasibility study on the intertie were holding the public hearings for ‘‘our’’ benefit. They were being “nice,” according to Mr. Clayton Hurless who was brought from Idaho by CVEA to get this project completed. Surprise, surprise. The people of the communities impacted by this project are not rural ‘‘ignorants’’ who will just accept our fate and do nothing. Thanks to the efforts of Chris Rose and Robin McLean, the couple in Mike Doogan’s column (Oct. 20), and others, ACRED (Alaskans Con- cerned with Responsible Energy Develop- ment) was created. We are continuing our fight against the intertie, and I challenge others to join in who are tired of unethical, economically unfeasible and environmentally hazard- ous politically derived projects. Fleecing of America? This is a good example of federal and state monies at work! The positive side of this: We can make a difference by working together. The best thing Hurless did was tell us there was nothing we could do about it. Thank you, Clayton! If you are tired of the same, come join us. 302 210m 420A — Michelle Schuman ACRED, Sutton (907) 274-1056 ae NOY 04 1994 3e2 420A Candidates for state offices have voiced a wide spectrum of opinions about environmental issues in the Matanuska-Sustina Valley. The Valley of- fice of the Alaska Center for the Environment (A.C.E.) sent questions to all the state candidates who will appear on Valley voters’ ballots next hb Tuesday. Client No__Y¥20A _ Dori McDannold staffs the Valley office of A.C.E. in Wasilla. She said, “We wanted to make sure that our Valley members and the public heard the candidates on some of the more press- ing problems about environmental quality around here.” All of the legislative candidates for the races in House Districts 26, 27 and 28 and Senate District N were sent questionnaires and asked to partici- te in the survey. louse District 26 Pat Carney did not respond. Viv Kohring responded. House District 27 Ron Larson responded. Scott Ogan did not respond. Gary Mike Pearson did not respond. House District 28 Paul Bratton responded. Bev Masek did not respond. Lloyd Rudd did not respond. Ted Smith responded. Senate N Lyda Green did not respond. Jay Kerttula did respond. Bob Shumaker did respond. Question 1: In the 1994 Alaska state legisla- tive session overwhelming testimony opposed Senate Bill 310 which promoted long-term log- ging contracts and Forest Management Agree- ments (FMAs) on state lands. State your posi- tion on a bill next session that would include FMAs. Bratton (Dist. 28): I will oppose any giveaway of our public lands to outside corporations under long-term Forest Management Agreements. Alas! should never allow the public lands so many of us depend upon for hunting, fishing, and recreation to be controlled by Outside inter- ests under 20- or even 40-year contracts. Instead I will support the creation of. regional Community Forest ‘ds to advise the Depart- ment of Natural Resources on the sustainable uses of the forest that can best support that area’s economy and allow for continuation of the busi- nesses and communities that depend on the for- est resources. Such boards should include local loggers, environmentalists, recreationalists, hunters and fishermen, and other local residents. Kerttula (Senate N): I voted against SB 310 last session. Many constituents were adamant in their opposition to this bill, and one of their main con- cerns was the lack of public input the bill would have allowed in maintaining this quality. We can keep the character of the Valley and bolster the economy by fostering the growth and develop- ment of small, locally owned, environmentally friendly businesses. Kohring (Dist. 26): I’m a proponent of small business development and would encourage such enterprises by working hard to reduce the Re - STS Toward a Greener Valley | Dori McDannold a a TT regulatory burden imposed by government, and create as much of a free market environment as ible — where any and all companies regard- less of size would be on an equal playing field. In addition, public input on timber issues is vital, and any major decisions made by the commis- - sioner of DNR should reflect the will of the peo- le. y Larson (Dist. 27): I voted no recommendation on this bill. I did not rere its chances of pas- sage, by assigning the bill to a subcommittee and entertaining over 70 amendments (which ad- dressed numerous public concerns) by the com- mittee in open forum. Shumaker (Senate N): Senate Bill 310 was de- signed so that a company large or small could manage a resource, timber. SB 310 would allow a company to make a commitment, thereby pro- vide for secure employment (if you call 20 years security). The commissioner is an employee of an elected official. Public input elected Paid official. SB 310 causes the state to make a commitment. Doesn’t that sound responsible? Since we are all “owners” of the resources I am interested in maximizing our return.I support SB 310 and FMA. Why couldn’t the lease agreements be for 55 years such as the one at Hatcher Pass? Job se- curity is number one. As the laid-off oil workers. Smith (Dist. 28): I have long supported some sort of partnership agreement between public and private sectors in order to manage our low value boreal forest. This support is based on two facts, one biological and the other fiscal. The biological fact is that the forest of the Mat- Su Valley is a forest in transition — it is in fact not sustainable in its present form without inter- vention. Historically that intervention has been fire. Birch is a relatively short lived species that requires soil temperatures above 60 F and full sunshine in order to germinate. Fire has provid- ed those circumstances as has clearing for home- steads, etc. We now do our best to protect our forests from fire, thereby preventing the circumstances that would permit birch to regenerate. We have thus chosen to change the environment to one which will become a predominantly spruce forest. The consequences of this are presently being seen on the Kenai Peninsula. If we want to continue our resent forest composition without letting the forest burn, harvest is mandatory. The Depart- ment of Fish and Game has spent about $700,000 in the past few years to convert less than 200 acres of habitat from spruce to birch. This brings up the second reason — fiscal. We can’t afford to pile and burn the many acres of spruce it would take to maintain the current for- est mix — we can’t even afford to do a basic in- ventory of the resource in order to do a manag- ment plan. I therefore conclude that the best way to manage this resource is to enter into an agree- ment with an entity who can make the invest- ment in inventory, planning, and infrastructure in exchange for a long term supply of material — a basic requirement for making required in- vestment. Any such agreement — regardless of what we call it — must meet two criteria: it must provide an opportunity for the manager to recov- er the up-front investment, and it must protect the public interest in public lands. Your question however set up circumstances that I can not accept, so the answer to that and the other questions follow. 1. [would oppose it. Question 2: Do you approve or disapprove of the decision to fund the the proposed Sutton- Glennallen electrical intertie? If you disap- prove, how would you work to override the de- cision? Bratton (Dist. 28): I would support repeal of the sppropeation and authorization for the Sut- ton-Glennallen intertie in favor of more economi- cal alternatives. I would also seek legislation to require that state-funded interties and other pro- jects be built only in compliance with community comprehensive plans and zoning regulations like the Chickaloon Special Use District. Kerttula (Senate N): I voted against the inter- tie project because of the feasibility study’s find- ings and because a majority of residents who contacted me on this issue were opposed to it. Many felt they would not be able to afford the electric bills they would get if the intertie was built. A new governor takes office in late Decem- ber, and I would urge him to review this project to see state’s process to award FMAs. I believe it is essential that the public be al- lowed adequate comment on issues dealing with eae owned resources, and will oppose legis- ation that does not allow or unfairly restricts public comment. Kohring (Dist. 26): I approve of the decision, as I feel the intertie is an important element in the development of the region’s infrastructure — hence its long-term economic viability. I also be- lieve the demand will ultimately justify the in- vestment in the project in the long run, as the economy expands, the Population grows. The project should be routed to limit damage to the area’s environment to minimize any negative vi- sual effects from the highway. Shumacher (Senate N): Cost effective doesn’t indicate reliability. The findings reflect careful study. I’m appalled that VACE is a major player in the lawsuit filed against the state on this inter- tie. This only means that every man, woman and child will pay to fight this case. Smith (Dist. 28): If the decision was arrived at after adequate opportunity for public input and discussion I would not oppose it. If it failed to meet the requirements for public participation in the decision, I would oppose it. Question 3: The upcoming Legislature may be asked to re-appropriate $12 million of un- used Railbelt energy funds originally slated for the Mat-Su borough area. Press reports say that some top proposals vying for the money in- clude the proposed port at Point MacKenzie oc Ic n--i-- tec rgc:-on-: to A.F.". sigv y - and a ski resort at Hatcher’s Pass. State what other specific projects or uses that the money could be used for? Bratton (Dist. 28): Our overcrowded school and huge bac! of substandard roads are the most critical needs for District 28 — that is where our delegation should seek to reappropriate these state dollars. The last thing we should do is dream up another way to subsidize big projects which too often result in very little local hire. Kerttula (Senate N): The $12 million is desig- nated for the railroad to aid local cost develop- ment. I would prefer to see the Legislature and/or Mat-Su Borough hold a series of public meetings throughout the area to see which eco- nomic de velopment projects the public supports, and on which projects the tablic beliereriwe should use these funds. The funds must be reap- propriated to be used on other projects. ohring (Dist. 26): I don’t believe govern should fund major projects which should b to private enterprise with the exception of ¢ oping infrastructure to aid in economic develop- ment and thus encourage businesses to locate here. Failed government-funded projects akin to the Delta barley project the Seward grain termi- nal and Point MacKenzie dairy project should not be repeated as they waste taxpayers’ dollars. Larson (Dist. 27): Mat-Su’s unused Railbelt en- ergy funds are very precious to our borough. Any use must be on a project that is proven to be economically feasible. Any use must benefit the public and be permanent in character. I wouldn't mind considering a revolving economic develop- ment fund to stimulate our borough’s economic health long into the future. Shumaker (Senate N): Either you have not done your homework or you are trying to mis- lead the le. The money that will be used to fund the projects that you mentioned will come from AIDEA. There are sufficient funds to cover those projects without infusion of more monies. I am hoping the Legislature sees the need to build more access roads to our (state) property current- ly with no access. Smith (Dist. 28): I would support any p that has a majority investment of private c (or AIDEA funds). Question 4: What, from your perspective, is the most important environmental/conservation issue facing the Mat-Su Valley? What will you do to address this problem? Bratton (Dist. 28): The alarming decline in salmon runs in the upper Cook Inlet region is clearly the most serious environmental/conser- vation issue facing this district. Only 3 of 15 in- dex streams actually met their escapement goals for kings this year. The Deshka River reached less than 25 percent of its goal. : There may be no single answer to the weak re- turns but we must take some immediate steps while we seek longer term solutions. These in- clude controlling intercept fisheries, guarantee- ing a fair allocation for in-river fishermen and es- capement, assuring protection of critical habitat, and providing adequate funding for resource protection and management. See SURVEY, Page A10 SURVEY: Candidates share views on issues Jor 420A Continued from Page A9 Kerttula (Senate N): Ensur- ing that our water supplies are clean is the most important. Water is not only essential to all human life, it is also critical to the habitat of our fish, mam- mal, and bird life. If we’re to continue encouraging in- and out-of-state tourism, hunting and sportfishing, we would be wise to protect our water quali- Kohring (Dist. 26): Since on- going development in the Val- ley is inevitable with its. popu- lation ever-increasing, it be- comes vital to ensure such de- velopment is done in concert with respect to the environ- ment. Therefore, a balance should be maintained so the quality of life we enjoy here re-. mains — although not through the imposition of zoning or government regulations. Larson (Dist. 27): The most important conservation issue facing our valley is the quality of our water and our air. Equal- ly important is a fully function- ing waste disposal site. I have assisted in the funding of water studies, funding of our DEC operations, and funding of the landfill improvements. Shumaker (Senate N): Lack of employment has many direct as well as indirect conse- quences. By opening our forest to development, FMAs, what such, we will be doing our en- vironment as well as our con- servation practices a world of good. ! Smith (Dist. 28): Failure to manage our forest resources. I believe that failure can lead first to an all-spruce forest, which will eventually succumb to beetles and fire, or alterna- tively to conversion to grass, which takes over in older birch -stands where there are inade- quate spruce seed sources. *, Hammond’s lead on herbicide Question 5: Do you approve‘ or disapprove of the state’s de- cision to allow the state De- partment of Transportation to spray herbicides along road- sides? If you disapprove, how would you work to override the decision? _Bratton (Dist. 28): If elected I will introduce legislation to en- act into state law Gov. Jay Hammond’s 1978 order ban- ning the use of herbicides on Alaska’s roadsides. That order protected Alaskans from invol- untary exposure to these chem- icals for 16 years. Today new technology is available that would not be the most cost ef- fective alternative. . Kerttula (Senate N): Since the Hammond administration, herbicide use along Alaska’s roadsides has been discontin- ued. This policy has been fol- lowed by every state adminis- tration until the present one. I will urge the new governor to take another look at the present decision and to follow Gov. use. : Kohring (Dist. 26): Herbi- cides are a known toxin and may very well pose a health hazard to individuals if ex- sci to it. Therefore, I would ‘avor alternative means to con- trol the growth of vegetation (such as the use of hydro-ax equipment) within developed and more highly populated ar- eas. However, along remote un- populated stretches of major roadways, the use of herbicides would be preferred given their cost effectiveness. Larson (Dist. 28): I am not in favor of wholesale herbicide us- age along Alaska’s roadsides. If there was a specific plan for us- age of this type in our valley I would certainly demand public hearings and expert testimony on it. Shumaker (Senate N): Herbi- cides have been used in our so- ciety for many years. That does not mean they are good or bad. Bor have a place. I presume DOT will take precautions and put safety number one. I’m sure they will. Smith (Dist. 28): Approve, if the herbicide and its applica- ok methods are approved by Quility Services (907) 274-1056 Dae NOV_0 8 1995 Frontiersman Glient No. “236A COUNT FROM THE COSTUME © ON TEE CORNER — The official Halloweening statistics are In: uestrian Acres is “The Place” to trick or treat. One anonymous Mouthketcer reports 490 costumed paren haunting their Equestrian ome. ANIMAL GOSSIP — Finally, a Valley coffee shap for good dogs! Yes, after a difficull search, the Fspresso Cafe and Coffee Co. serves dug biscuits for courteous canines. Dog requirements: you may not sit at or on the tables; you may not shake; and the proprietor reserves the right to only serve well-behaved puppies on the premises. For human-types it serves rea} berry waffles on weekends and good soup and nice croissant sandwiches the rest of the time. So when you're weary [rom wan- dering around Wal-Mart. go across the street and check out the nice wood tables, real art and good mu- sic. It's tucked behind the Frontiers- man offices, at the comer of Seward Meridian and Parks. It’s open from 5:45 a.m. till sometime pas 6 ae everyday, but it opens a little later on Sundays, And its very cool phone number is 376-JAVA. MORE ANIMAL GOSSIP — Homeless animals are tilled with the recent “Paws and Claws Ban- et” held by the Mat-Su Humane icty. Because of the contribulions of 68 attendees, all wayward Vallcy animals can rest assured of getting placed in homes, instead of facing the needle. Now the rules: you can’t be termi- nally Ill; you can’t be injured beyond repair; you have to be a family ani- mak you and your family must go through successful screening: and ou must have no bad habits like — iting people or violent growling tendencies. Especially grateful are the or- phaned 26 dogs, 32 cats, one goat, one pony and one pig — that barks like a dog and prefers dog kibble to pig chow, ESSAY CONTEST — So Rep. Scott Ogan just loved doing essays in high school, the Mouth hears. In fact, he loved them so much he is sug- gesting that all District 27 high school seniors participate in an ossay contest. One of the questions for the con- testants is: “What source did you use to determine your residency in louse District 27?" (The Mouth is eager for the answers.) And the grand prize is a free trip to Juncau ~ with lodging and meals, the oppor- tunity to shadow the representalive ne ENS ORL ent MAT_S Mle Pr ate an ep heated dere Lea 20s, ch HOt and a “behind the scenes look” at the 19th legistature’s second session. The Mouth wishes it could enter the con- test. CHANNEL FIVE SPORTSCAST- ER WALKS HIS TALK — Patrick McMicheaL sportscaster from Valley News, adopted a meatloaf-shaped puppy at the pound last week. Ru- mor has it that the plump pup was one of the Pet of the Week crowd, The Mouth hears the pooch answers to the name of Snickers, and will help out in the TV production arena, LOCAL POTTER IN BIGTOWN Sutton Artist Robin McLean der buled her beautiful floral pottery in an Anchorage gallery this weekend — wowing the cily yups. IT’S THAT LIGHT THING — Both the City of Wasilla (with its city of lights “Wasilla Wonderland” cam- pagn and Pacific Rim Engineering have joined in the fight against gloom and darkness, Let's all lighten up. FRED JAMES SIGHTING — Alert Mouthketeers reported that Fred James, local TV guy, is ening comfortably in CanCun, Mexico. He is heard complaining about the lack of culture and far too much sun. We all share his whine over his tough new life. . TODAY 1S NATIONAL PUN- STERS DAY — The Mouth cautions: “Never point a pun al a friend. It might be loaded. And then you might kill a Pun-pal...and end up in a Purvtentiary.” Groan. THIS WALL DOESN'T DIVIDE — Our local leader, Leo Kaye, is en- couraming overyond lo attend the Veterans Day memorial service at the Wall of -lonor on Saturday, THIS WEEK — Peanut Butter Lovers’ month continues and in- nocuous celebrations continue for Notary Public Week, Osteopathic “Week, Radiologic Technolo od Week, Operaling Room Nurse Weck, Na- tional Culinary Week, National Chil- dren’s Book Week, and Marriage En- richment Weekend, And don’t dare forget this is International Drum Month. IN HONOR OF NATIONAL CE- OCRAPHY WEEK — The Mouth asks Ihe pertinent question — where in the state are all 17 Lost Creeks, Mountains and Rivers? MOUTH RECEIVES A PEPTO BISMAL — VBX News, another lo- cal rag, provided the Mouth witha six-month supply of Peplo Bismal ({chorry flavor — yum) — presum- ably to offset Indjgestion from recent comments about the deliciousoslty of elementary school lunches. Thanks. THE MOUTH WONDERS « Is it true that local Valley coaches aren't taking the time to report final ame scores to the local media? hat a shame. Dicin’t they ever learn to share?) * Isit true that the proposed Sut- ton-Glennallen Interuie is a little $35 million gilt to Chugach, Petrostar and the labor unions? » Is it (rue that some caring moth- er is driving around the Valley with her small infant laid across her shoulder ~ instead of an infant seat? * Is it true that in the classified ods, there is a request still secking, any honest legislator? + Is it true that various gangs of Russian Dogs are settling canine ac- counts on 8 neutral turfed embank- ment —in (he middle of the city? + Is it true that our very own Su- perior Court Judge Beverly Culler could become the very first female Alaska Supreme Court Justice? + ts it true that the nice folks from Flowers by Louise offered 300 Valley shoppers fresh flown orchids last week at the annual open house? Svon-lo-be-infamous borough scribe Barbara Hunt puts words in The Mouth every Wednesday. If you have questions, tips or sugyestions, please fax win to her attention al Ue Fronticrsmun at 352- 2277, or you can mail them or drop them 7 1261 Seward Meridian, Wasilla, 99654, Confidential ity will be re- spected. Accuracy required and good laste requested. h\| = ety fodiens t of mine ih under dispute By PAUL STUART : Frontiersman reporter N SUTTON — Sunday after- noon, Randy Hobbs stood on a cold, windswept hillside about .two miles north of Sutton, pointing out mine shafts and acres of earthworks at the Jonesville coal mine site. “I've got $2.5 million of my own money. tied up in this op- eration,” he said. ’ Hobbs, who is president and .CEO of Hobbs Industries Inc. of Anchorage, said, “All I-want to do is see this mine get into op- eration, on a realistic basis, and provide the jobs it should.” But Nicholas Ross, president and CEO of Nerox Energ Corp. of California, said, “Randy. Hobbs has reneged on all he said he would do,” refer- ring to Hobbs Industries’ agree- ment with Nerox Power Sys-: tems, a New Jersey-based, wholly owned subsidiary of Nerox Energy, for the operation and oversight of the mine prop- mh t this. point, it looks like it could end up being the courts that decide who operates the mine. Hobbs said last week he was concerned that Nerox Power and the parent Nerox Energy Corp. were reneging on their agreements to provide capital for operation of the~ mine. Hobbs said he was considering legal action against the two Nerox companies. ' Hobbs also claimed he was fearful that what he considered unrealistically optimistic press releases about mine production and contracts for sales might have actually have been de- signed solely to boost values of pee stock in Nerox nergy. Ross, in making his counter- charges Monday, said he had instructed Bill haus: Nerox’s Anchorage attorney, to make the signed agreements (with Hobbs) and tape recordings of the agreement sessions avail- able for inspection, if needed to support claims that Hobbs had failed to follow.through on his part ofthe deal. Ross also said Nerox had al- ready purchased the master lease for the mine site from Placer Dome U.S. See MINE, Page 7 nearly PAUL STUART/Frontiersman Entrance is presently sealed to the upper level shaft of the Jonesville coal mine, which cuts 600 feet into a towering bluff in the foothills of the Talkeetna Mountains. A second, older shaft, not shown, penetrates some 4,000 feet into the mountainside. MINE: Hobbs worries about production Continued from Front Page “I deposited $800,000 in Plac- er’s account Nov. 1. All we need is a final ee | (for the lease transfer) from the (state) De- . pares Re- ; sources.” ' Placer Dome officials could : not be reached for comment. : Earlier Monday Artus told * the Frontiersman that Hobbs In- ' dustries was contractually- » bound to transfer existing min- ing permits it holds. He also . said Nerox Systems was apply- ‘ing for additional permits to ‘ sink shafts into the same de- posits, but from different direc- : tions than the two existing : shafts. { Elaborating on his earlier ? comments on Nerox press re- i leases, Hobbs said Sunday, ' “The amount of coal they were i talking about producing feniild }n’t happen here — certainly not ‘ for several years anyhow. With tan investment of another $1.5 tmillion and a year or so of } work, we might be able to turn ; out 100,000 tons of coal.” } Published reports in recent weeks from Nerox Energy had of Natural talked about shipping 400,000 tons of coal to the Defense De- partment, plus exporting large amounts of coal out of Valdez to the Pacific Rim market. Ross said Monday the bid for the Defense Department con- tract is going in under the Nerox banner. He said he ex- pes to get the contract, and to egin shipping by June of next year. Fund Doors open Grand Prize $10,000 Youth Soccer, Basketball Softball &Football MYAC 23rd Annual Palmer Moose Lodge Purchase of a ticket includes dinner and beverages Linda 745-8008 or Deidre 745-0262 He said he expects Nerox to be able to start export ship- ments under another contract by July of 1996 Hobbs said he intends to sub- mit a bid under the Hobbs In- dustries name for the U.S. De- fense Department contract, hoping to supply about 100,000 tons of high- Feat-yield coal a year for a government installa- tion in Fairbanks. Support your Raising Raffle November 18 at 7pm, drawing starts at 83pm 2nd Prize Additional $1,000 Cash Prizes For information call EE iQ Quality Serviers _—— {07} 274-1056 bue NOV 1.0 1995 Frontiersman Client No. /204 Group p Bor Zot 42M, 2c By LAURA MITCHELL HARRIS Fromiersman reparer SUTTON — Within the next few days, Gov. Tony Knowles will be presented with a feasibility review on the construction of a power line intertie from Sutton to Gien- nallen. He must then decide whether to ap- rove a 50-year, interest-free, $35 million oan from the state to fund the construction of a 127-mile intertie ——ee Copper Valley Electric Association (CVEA) to the Chugach Electric Association (CEA). In the meantime, there has been discus- sion in the Valley about whether this pro- ject is the best way to bring cheaper elec- tricity to the Copper River VaHey when economical and environmental factors are examined. a A local group, the Alaska Citizens for Re- sponsible Energy Development (ACRED), has been working for more than a year to convince state leaders the project is not tight for either the Copper Valley or the Mat-Su Borough. “The project has been pushed by the ulil- ity and the electricily union who are going to make money off of it,” said Robin McLean, a member of ACRED. “Copper Valley residents do have really high elec- tricity rates and do need cheaper power, but this project is not it.” (CEA has offered to fund 80 percent of the costs of building and maintaining the pow- er line, over and above what the state Ioan would cover, if CVEA would pay the re- maining costs, Chugach spokesperson Vi- vian Kinnaird said. Residents in the Copper Valley have some of the highest electric rates in the state. The $35 million loan was oints out intertie’s loose ends approved in 1994 by the state legislature, contingent on the results of a feasibility study into the project. McLean said her organization is basing its opinion almost entirely on economic fac- tors, not simply whether the power line will mar the pristine countryside north of Sutton. i “If this was a good plan, we'd support it,” she said. But ACRED would like to see other alternatives expiored, like hydroelec- tic power projects. And when the environmental factors in the borough are considered, everyone in the Valley should be concerned, McLean said. The consiruction of an intertie will cut a corridor through the upper Mat-Su Ber- ough, which will hurt tourism and hunting. See INTERTIE, Page A11_ & =~ -02-A0N TT NOW S6 60 20 ‘d NOV-20-95 MON 11:10 INTERTIE: MEA dor ace Hdl ere Continued from Front Page A representative from While- water Engineering, based in Bellingham, Wash., told the ACRED group at a ‘saturday meeting about an alternative plan of building a hydroelectric Rrajec at Sisar.. ' “Since 1915, this has been a viable project,” said Chuck Spalding, owner of Nova River- runners, an adventure company based north of Sutton on the Glenn Highway. “It's chea aper than the intertie and it wasn’t even considered by the stale. “Utilities are monopolies that make their own destiny in Lhis state,” Spalding said. “Those in- ake near... © volved are showing Lotal disre- ard for providin, 's Copper Val- ey electricity with the cheapest solution.” McLean said CEA is only con- cemed = making money not looking for the most responsi- ble reject. chair of ACRED, said he sees the electrical workers’ union as the only group that would ben- efit from the construction of an intertie, since the laborers will be paid for the actual construc. tion. The Matanuska Electric Asso- ciation is maintaining a position of neutrality until the governor makes his decision, MEA spokesperson Bruce Scott said. is Rose, co-founder and , con am mek ue ae OWN) Lemar ne MperreRLI R= RAM mute | participation possible “TCit’s constructed, it’s almost certain MEA will participate,” Scott said, “We may want to have an equity position in the line.” Kinnaird said wholesale cus- tomers, like MEA, will have the opportunity to pitch in to pay for the costs of the intertiec if apr proved. lf MEA dousn’t con- tribute, it won't be able to col- lect on profit margins that might result in the expansion, he Mat-Su Borough Assem- bly passed a resojution in Feb- ruary 1994 opposing the intertie project, citing negative environ- mental impacts. Borough Man- ager Don Moore said The bor- ough’s position has not changed. P, 03 QUALITY SERVICES pateNOV 10 1995 Anchorage Daily News Client No,_Y2r<4 Study | favors intertie OK for power line hinges on deals 302>30b 420A 26E By S.J. KOMARNITSKY Daily News reporter A new state study re- leased Thursday has con- cluded that a $53 million power line between Sutton and Glennailen is the best way to lower electricity bills for Copper Valley res- idents. But only if several key deals are struck. Chief among those is that the Petro Star refin- ery, near Valdez, the larg- est consumer of ‘power in the Copper Valley basin, would continue to buy power for the next several years. This spring, the com- Please see Page B-3, INTERTIE INTERTIE:New $53 million power line hinges on deals, state study concludes Coninued from Page B-1 pany announced it planned to install a turbine and produce its own power. But in the intervening months, officials there have negotiated a tentative agreement with Chugach Electric Association, the state’s lar; areese utility, and Copper Valley Electric As- sociation to continue to buy power for 10 years in exchange for cut-rate elec- tricity. The controversial power line, known as an intertie, would connect the two util- ities and allow Copper Val- ley to tap into the relative- ly cheap and vast power ely of the Railbelt. Copper Valley has pushed the line as a way to retire aging diesel genera- tors it now relies on and lower electrical rates for customers, who pay about double what Anchorage residents pay. The study by CH2M Hill, an engineering consulting firm, was the latest in a long line of studies of the power line. Gov. Tony Knowles requested the study this spring after Pe- tro Star announced it planned to produce its own power. He also assigned ‘four state commissioners to re- view the study. On Thurs- day, three of those commis- sioners gave their approval to build the intertie if sev- eral conditions were met. Chief among those con- cerns was that Chugach Electric Association, the state’s largest utility, pay part of the costs of build- ing and maintaining the line. Chugach has already agreed in principle to pay 80 percent of the costs of the line. Copper Valley The controversial power line, known as an intertie, would connect the two utilities and allow Copper Valley to tap into the relatively cheap and vast power supply of the Railbelt. would pick up the rest. Mike Irwin, commission- er of Department of Com- munity and Regional Af- fairs, who will make the final decision on the proj- ect, said he is reserving judgment until after public hearings are held in the four communities affected by the intertie — Sutton, Glennallen, Valdez and An- chorage. Those hearings will be held late this month or early December, he said. Opponents of the plan criticized the study, which they said hinged too much on Petro Star, and ignored other viable options such as a $32 million hydroelec- tric project at Solomon Gulch. “If the study’s own au- thors say that Petro Star is the key, then why should the state of Alaska be will- ing to spend all this money on this one small consum- er,” said Chris Rose, a co- founder of Alaska Citizens for Responsible Energy De- velopment. Rose also questioned Pe- tro Star’s commitment. Richard Curtin, the compa- ny’s general counsel, said he was keeping his options open. There also was some doubt about Chugach’s plans. General manager Gene Bjornstad said that although Chugach has agreed in principle to pay 80 percent of the cost, board members would pre- fer a smaller commitment. Chugach chairman Ray Craig said his decision would depend on what was best for ratepayers. The agreement requires the ap- proval of both uti 3 boards. Riley Snell, one of the four state commissioners assigned to review the study, agreed the intertie was the best choice only if the state approves a $35 million interest-free loan. But he said the Legislature only appropriated money for the intertie. He’s only allowed to decide whether the intertie is feasible, not whether it is the best proj- ect for Copper Valley, he said. Irwin stressed that the intertie is still a long way from being built. In addition to needing his approval to release the $35 million loan, it ) faces one federal la 3 and another state lawsuit. It also needs to clear sever- al environmental studies before construction can be- gin. QUALITY SERVICES pate_NOV 10 1995 _ Anchorage Daily News Client No._Y2eA . Intertie approach nothing new Because study after study has shown the Sutton-to-Glennallen intertie to be economically unfeasible, proponents have resorted to the grand old Alaska tradition of espousing grandiose but nebulous eco- nomic benefits for one and all way off in the distant future. (Re: Rep. Gene Kubi- na’s Counterpoint, Nov. 3.) In the past, this approach has cost Alaskans untold millions in ill-conceived projects that never remotely lived up to their promised economic benefits. Let’s not succumb to this hazy logic that at- tempts to justify an unaffordable project that has all the makings of an economic black hole. If Gov. Knowles would apply the same criteria to the intertie issue as he has to the wolf kill issue (it must be economical- ly feasible; it must make sense scientifi- cally; it must be supported by the people of Alaska), he could kill this deeply flawed project once and for all. 3e2 sul Y2on 219k — Jeff Arndt Chickaloon QUALITY SERVICES NOV 1 2 1995 Date. Anchorage Daily News Client No. 4224 Intertie doesn’t add up In response to Rep. Gene Kubina’s Counterpoint (Nov. 3) concerning the pro- posed Sutton-to-Glennallen intertie: e According to Copper Valley Electric Association, at its public meetings, the price of electricity would stabilize only, not go down. Also, if Chugach decides to finance this project, all Chugach custom- ers will pay more. ¢ Did you know there isn’t property tax in the Copper River Basin? Who pays for the schools, unlike for the rest of us? The state, entirely. ¢Petro Star (the refinery) in Valdez plans to build its own power facility. Why not make it bigger and generate jobs also? “When the gas line is built,’ we can send energy back, according to Kubina. When is a big question, and we can now send power back through Fairbanks, when the gas line is built. eWhy is no one building this intertie privately? Because without interest-free —_ money, it doesn’t make it cost-effec- ive. ¢Someone’s view would be impaired. Yes, many who consider the Matanuska Valley one of the most beautiful valleys in the state. These few people who live there and make their living through tour- ism, hunting and the view would be impacted, and yes, we do pay property taxes. In Scandinavia, this valley would be a national park, as well as in many other countries. Yes, Gene, interties are not beautiful. They are expensive — less, though, if you use interest-free state money. And, yes, Gene, when the gas line is built, the intertie will become a useless antique. 302 30k 203 420A — JJ Doyle Chickaloon NOV-29-96 WED 11:13 a Quolity Services — (907) 274-1056 NOV 13 1995 PENINSULA CLARION Date Client No__¥ 2" Copper Valle 200 302 VIIA ' JUNEAU (AP) — A state study hag determined that build- ing a new power line is the best way to cut high electcicity costs for people in the Copper River Valley in southcentral Alaska, The study issued Thursday concluded that the $53 million line between Sutton and Glennallen is economically fea- sible as Jong ag financing is in place and the region's biggest power consumer commits to buying electricity. The new line would tie the Copper Valley Electric Association into cheaper power available through the Chugach Electric Association, the state's largest utility. Customers around Glennalten now get power from aging diesel generators and pay about 18.4 cents a kilowatt-hour for elec- @ al . Price Dhl Neh > Mae he / Ee a {) U tricity, about twice the rate in Anchorage. The study by engineering consulting firm CH2M Hill, done at the request of Gov. Tony Knowles, said the Petro Star refinery near Valdez would have ,to continye to buy some of the power to make the new line pay its way. Petro Star is Copper Valley’s biggest power cus- tomer. The refinery had been mak- ing plans to install a turbine and make its own electricity, but Petro Star recently struck a ten- tative deal with the Chugach and Copper Vallcy utilities to buy power for 10 years in exchange for cut-rate prices. Three of four state commis- sioners Knowles assigned to review the study approved the plan Thursday as long as y power line feasible Chugach Blectric Association pays part of tha construction costs, Chugach has agreed in princi- ple to pay 80 percent of the cost, with Copper Valley covering the yest. In 1993, the state Legislature approved a $35 million no-inter- est loan to help build the project. One of the conditions recom- mended in the study is that the loan must be repaid, even if the power line is not built. Opponents said the study relied too much on Petro Star and ignored other options, such as a $32 million hydroelectric project at Solomon Gulch. Hearings are planned over the next month in the four commu- nities affected by the proposed line, Anchorage, Sutton, Glennallen and Valdez. P, 06 “QUALITY SERVICES — NOV 13 1995 SNE, Fe reeecetnemancemeetadeens Anchorage Daily News t 4 Intertle will c Create n needed jobs The headline to Mr. Keogh’s letter (Oct. 31) says “Research intertie questions.” Mr. Keogh and others who would consider themselves heroes if the intertie is not built are the ones who should try doing some research. They would find that the Rural Electri- fication Administration came into being in the mid-1930s. They would find that there has not been one electrical transmis- sion line, one substation or one electrical distribution line that was economically feasible when the facility was built. They would find that the very presence of the line somehow created its feasibility. They would find that the line that serves their home, shop, business or facto- ry has to pass in front of some person’s house. They would find that electricity provides convenience, saves labor, creates jobs and, in many cases, makes the impossible possible. They would find that the area between Sutton and Glennallen contains many valuable industrial miner- als. With adequate electricity, these min- erals can be translated into jobs. They will find that these jobs will keep their children and grandchildren at or near home in Alaska. If the intertie is not built, they will find that their children or grandchildren will be forced to find jobs outside Alaska. I know because my daughter and grand- son live in Massachusetts, and a son lives in Denver. If my kids and grandkids were here, I would look up and say, “Thank you, Mr. Intertie, for just being there.” dor sol 21DE 4204 — Earl R. Barnard ¥ = i Qtalay Sontat Qadlay Services _ (907) 274-1056 Date NOV 25 1995 Valdez Vanguard Client No. Intertie project inches closer Alok 3OL ¥iod By Mike Jakiemiec Valdez Vanguarc Asnudy released Nov. 9 con- cludes that the proposed Sutton- Glennallen intertie project is economically feasible, but only if a major power consumer such as the Petro Star refinery in Valdez, agrees to buy power and several other condilions are met. Gov. Tony Knowles ordered the study by the engineering consulting firm CH2M Hill after Petro Star announced plans fast spring to produce its own power. Since then, Petro Star hes entered into a tentative agree- meni with Chugach Electiic Association and Capper Valley Electric Association to continue to buy power for 10 years in exchange for lower electricity rates. Chugach Electric Association and CVEA have also worked out a tenlative agreement to share the costs of buikling the intertie. Chugach would pay 80 percent of the estimated $55 million con- struction cost, about $44 million. CVEA would pick up the other 20 percent, around $22 million, if the deal is ratified by the CVEA and Chugach boards of directors and the state Public. Utilities Commission. But before the project can move forward, it has to get the approva! of Mike Irwin, com- missioner of the Department of Community and Regional Affairs. Inwin and three other slate commissioners were assigned by Knowles to review the study. “if all ihe conditions are in place, building this intertic to; provide lower cost power to the affected Aiaskans and to faciti- tate economic expansion appears to make sense,” Irwin said. ‘The department plans to hold public meetings in Suiton, Glennallen, Valdez and Anchorage to hear public com- ment. A spokeswoman for the department said Monday that the See Intertie, page 2 intertie... AMA 302 Y16A From page 1 schedule of the meetings is still being put together, but could be finalized by the end of the this week. The mectings are expected to take place Jater this month or in December. _ Irwin and the other commis- sionets said they would recommend thal the project proceed but only if several conditions were met. Petro Star's tentative agreement with CVEA and Chugach fo buy power and the tentative agrement between ihe two utilities to share the cost of building the intertie sat- isfy two of the conditions Jaid out by fhe commissioners. Other conditions include getting approval from the Alaska Public Utilities Commission of any power sales agreements; putling an updat- ed finance plan in place, subject to Community and Regiona! Affairs approval; repaying the expenditure of funds from the $35 million state loan approved by the stale, even if the project is never completed; and meeting all environmental condi- tions, including completing an environmental study and consider- ing allernate routes to minimize public concerns. The study also said that other alternatives for lowering electrical rates in the Copper Valley region, such as a Silver Lake hydroelectric Project or generating power with coal, are much more cosity than the imtertie. CVEA residents currently pay about 18.4 cents per kilowatt hous. Anchorage residents pay roughly 9 cents per kilowatt hour. Chugach officials have estimat- ed that with the intertie, CVEA res- idents could see a reduction of three to five cents per kilowatt hour. CVEA general manager Clayton Hurless was more cautious with his estimate, saying a three-cent reduc- tion is mare likely. The controverial intertie project also faces one federal lawsuit and another state lawsuit and would have to clear several environmen- tal studies before contstruction could begin. The state legislature appropri- ated a $35 million zero-interest, 50-year long in 1993 to construct a power transmission line linking Alaska’s Railbell region to CVEA’s service area. CVEA has backed the intertie as a means of retiring the aging diese! genera- tors it now relies on, especially during the winter months when the water levels in Solomon Gulch drop. Then-Gov. Wally Hickel approved the loan in 1994, but Knowles requested another study shortly after taking office. TpiOl Idd S6-1 -0390 90 ‘d bEO- 1-¥d FRI 1U+4U Quality Sermon ye Q (907) 274-1056 Date NOV 15 4999. __ Valdez Star Client No,“ te perenne aie One Step Clos Governor A "ee nh —" 200 | Editor, ' ay Star JUNEAU-~The adminis- tration of Goy. Tony Knowles pproves :$ Powerline has given its blessings to the construction of a powerline transmission becween Sutton and Glennalleny—but only if cestain conditions are met, The controversial powerline is designed co rap into cheaper power from the Anchorage area to feed cus- tomes in the Copper Valley Llectric service area. The Governor's office said Thursday it would release $35 million in state loan funds to the powerline project on the following conditions: 1, Thar Copper Valley Electric and Chugach Elec- tric, the scate’s largest utility, agree co share the cost of the powerline on an 80/20 per- cenc basis, with Chugach paying the larger share. 2. Thar Copper Valley and Petro Star enter into a long term agreement to provide Perro Star's power needs. 3. That any power salcs agrec ments have the approval of the Alaska Public Utilities Cormumission, 4. That Capper Valley and Chugach prepare an updated finance plan for building the line, 5. That the $35 million intetest-free loan be repaid to the state even if the powurline is never campleted. 6. That all environmental conditions be mer, including are-roucing of the power line to ovece the objections of people in che Sutron- Chickaloon area. The Governor's office said four public hearings will be held: in Anchorage on Dee, 1, ia Surcon on Dee. 2, Glerinallen on Dec. 3 and Valdez on Dec. 4. Following the hearings, Mike Irwin, the Commis- sioner of Community & Re- gional Affairs will make the final decision, P, Ub Governor: has good grounds. és Instead, “it (or, some other large, user, such as 2 Alyeska” Ss" “pipeline terminal) must sign an irrevocable agreement - » to buy. large amounts of. electricity are even energy costs in the Copper Valley. ANCHORAGE DAILY NEWS Wednesday, November 15, 1995 “ao He Sticteb od 0.08 -ot ash grmtesi Hest ieee cee sehen mar eave Mes -Glennallen ower din * Second; 80 percent’ ‘of the’ money for’ paying | ‘off the.’ “highly subsidized power line’'will have to come from someone else "from custo ‘of Chugach Electric . here in Southcentral.” Th ‘study estimates that . Chugach’s . rates will rise a half cént a kilowatt hour — ‘equivalent. to. a yearly. tax. of. $45: on the average resident’s pill. . The Eadnshtaben elon Ss study says the State’ shiguldin? t ladle out any cash until the project clears numerous | hurdles. But it fails to state the obvious: the only * reason this project is still alive: ‘is ‘that ‘the game is rigged... eee The’: 1993: legislature, led: by:. ‘harkapedicar ‘Ramona. Barnés; décidéd it wanted to spend $35 million’on this~ particular power line — end of discussion. To his credit;:Gov:’Knowles“ordered”asecond“look;*but«the _review assumes the only project that can get a $35 ' million state subsidy is the power line. No wonder it comes out. looking better than the.competition.. .«..... Criticizing the intertie should not be construed, as saying the people of Copper Valley’should be denied the fruits of progress. It’s just that this particular version of progress would come ata heavy price. With its study, the administration missed the chance to: ask what is the best way of using $35 million’ fo: ‘help’ cut With all the conditions the: governor’ Ss’ suid fens recommends, including’ environmental, reviews, , resolution of lawsuits now blocking: the project; and another round of: public hearings, the intertie mayr. slowly die of its own ‘debilities. But a governor who repeatedly says he believes in “good: science, good management, and good public process’ should kill the project’ outright. : That's Right! . Do you want$35 Million ofyour money loaned atzero interest for the Sutton to Glennallen Intertie. "Government does not solve problems, it subsidizes them." Ronald Reagan , For more information call your Governor. 561-4228 oe This ad was paid for-by Alaska Citizens for Responsible Energy Development NOV-22-95 WED 10:68 P, 03 Frontiersman Client No. ¥204 74 Cheek Leble. | | © Frontisasnin 14ate 32 30b soe #2uA Z; f : : | NOV-22-95 WED 10:57 lity Services ee (907) 274-1056 Date NOV.15_ 1095 Frontiersman Client No. 429A Intertie myth: don’t buy it 302 AVL APO YA If you build it, they won't come. Lower electricity prices that is, for the customers of the Copper Valley Electric Association (CVEA). The fantasy of cheap electricity has been fueled recently by moves to re- view the feasibility of building a 127-mile power line to tie the Copper Valley with the Chugach Electric Association. A proposed $35 million loan from the state now awaits the ap- proval of Gov. Tony Knowles. We urge the governor to just say no to the inteftie. The reasons are simple — nobody really believes it will create lower prices for Copper Valley Electricity customers, and the impact for the Mat-Su Valley far outweighs any ben- efita (he questionable plan can create. When the pipe-dream Interlie idea was first floated, pro- ponents hammered on how those in the Copper Valley area pay some of the highest electric rales in the slate. They tout- ed the intertie as the shining knight in copper armor who would ride in and slay the cost dragon. But that premise has been a fairy tale all along. CVEA olfi- cials have admitted during public meetings that the pro- posed line would in reality only stabilize costs for the resi- dents in the region, not lower them. There is a good chance thal, depending on just how much the project would cost in the end and just how it would be financed, customers could actually end up paying more than they do today. And the chances of the intertie costing much more than the $35 million named by proponents are almost certain. Sources behind the scencs are quick to scoff at the irtertie price tag, saying the actual costs of the project could actually double as contractors run into construction and environmen- tal nightmares along the way. : But even more costly than the price of building the contro- versial line would be (he impact, both physically and in per- ception, to the prime recreation and hunting grounds the power line would intersect in the Matanuska Valley. The area is known for its pristine beauty and abundant wildlife, both of which would be adversely affected by the project. Millions of dollars each year flow into local economies as people from all over the stale and the nation travel into the region to take advantage of its natural offer- ings. A 100-foot-wide scar running straight through the Val- ley will add nothing to the coffers of the Mat-Su borough, and only creale a negalive impact in the minds of those who are looking for places to get away from it all when hunting or vacationing. Add in the om that there are better solutions to the problems of powering the CVEA into the next century — in- cluding the possibility of a hydroelectric plant on Silver Lake — and intertic comes up a loser. The Matanuska Valley al- ready has plenty of natural wildlife — adding a 127-mile- long white elephant would be a stupid and costly mistake. — Steve Heide c we-22-95 WED 10:58 Qe= =< (907) 274-1056 Date NOV 15 1995 Frontiersman Client No___ as 4 Report: Interiie une is feasible fu2 sol 2-0 A aid By LAURA MITCHELL HARRIS Fronileraman reportar The proposed Sutton to Glen- nallen electrical interlie appears economically feasible if certain conditions are satisfied, accord- ing to an engineering consulling firin’s report released Thursday. The project would link the Copper Valicy Electric Associa~ tion (CVEA) with the Chugach Electric Association (CEA), CVEA wants the intertie to bring cheaper electricity to the region, which has some of the highest electric rates in the state. Oppo- nents lo the tine say the project is a boondoggle that is not Lhe best economic plan for the slate, as well as a environmental night- mare for {he northeast portion of the Mat-Su Borough. The feasibility review was done at the request of Gov. Tony Knowles’ administration. Three ears ago, a 50-year, interest-free joan was approved by the state legislalune for the construction of an intertie. Shortly after taking office, Knowles asked for a re- view of the project due to chang- ing economic condilions. 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 lo make economic sense,” said Mike Irwin, commissioner for Alaska Communily and Regional Affairs (CRA). “Over the next several weeks, we'll be holding public meetings to see if Alaskans agree or have other suggestions about this project's fulure.” Irwin will make the final deci- sion as to whether the intertie is a go. He said he will make his deci- sion after the public hearing. Public meetings are planned for Anchorage, Sution, Glennallen and Valdez. The: revicw said the condilions include: See INTERTIE, Page A9 P, 04 Sh NOV-22-95 WED 10:59 INTERTIE: Conditions Jur 306 4204 Jich Continued from Front Page * A power sales agreement be- tween CVEA and the Valdez re- finery Pelro Star or another major power user. Pelro-Star had said it might generate its own power but recently came up with an agreement with CEA to get pow- er at a cheaper rate. * CVEA and CEA must agree to pevoras joinuy in the pro- ject to help share the project's fi- nancial benefits and ales The two ulililies have tentativel agraed, in.principle that CEA.wi fund some 80 percent of the costs of constructing and maintaining the line. However, this agreement is pending CEA board approval. * The Klaska Public Utilities Commission approval of any power sales agreements. * An updated financial plan must be in place, subject to CRA‘s approval. « Environmental conditions are fully complied with, includ- ing completion of an environ- mental study and consideration of alternate rouling lo minimize Public congemssire seve a ene P, 05 ANCHORAGE DAILY NEWS Wednesday, November 15, 1995 9 sii CU oLei ood t23¢ Xai onus te Seem Go ror has good grounds to jen : As the’ new study notes, he ut-rate ‘loan’ ‘isn’t, the oe only ‘help the intertie needs. The p power, line needs two. other heroic measures to: just ify, its existence. . Yo“ First i the | biggest.’ “customer. iin “the Valdez-Glennallen area, the. Petrostar’ refinery.’ will iy ‘have. to! drop, plans; to, produce its own -electricity. = buyer shuts: down or goes‘ out’ of busine Instead, it (or. some other large user, such as Alyeska’s - » pipeline terminal) must sign an irrevocable agreement - to buy large amounts of electricity, — even if® the ‘ Second, 80 percent ‘of the money for. paying off the ' highly subsidized power line’ ‘will have. to come from someone else — from customers ‘of Chugach Electric here in Southcentral.” The ® ‘study estimates that . Chugach’s rates will rise a half cént a kilowatt hour _ equivalent , to.a yearly, tax of. Mew on the average . resident’s Die cashes ¥ . The adminhistration’s athe ays ‘the's state ghesitan't ladle out any cash until the project clears numerous | hurdles. But it fails to state the obvious: the only reason this project | is still alive is ‘that the game is rigged. 0. -The1993: le, lature,” led: by he Barnés; décided it wanted to spend $35 million on this~ particular power line — end of discussion. To his credit; Gov:’Knowles*ordered’a“sécond"look;*but=the review assumes the only project that can get a $35 million state subsidy is the power line. No wonder it comes out looking better than the.competition.. ..... Criticizing the intertie should not be construed _ as saying the people of Copper Valley’should be denied the fruits of progress. It’s. just that this particular version of progress would come at a heavy price. With its study, the administration missed the chance to ask what is the best way of using $35 million to help cut energy costs in the Copper Valley. “*° With all the conditions the: governor’s study team’ recommends, including environmental reviews, resolution of lawsuits now blocking the project, and another round of public hearings, the intertie may-. slowly die of its own debilities. But a governor who repeatedly says he believes in ‘“‘good: science, good management, and good public process’ should kill the project outright. That's Right! . Do you want$35 Million ofyour money loaned atzero interest for the Sutton to Glennallen Intertie. "Government does not solve problems, it subsidizes them." Ronald Reagan For more information call your Governor. 561-4228 | This ad was paid for-by Alaska Citizens for Responsible Energy Development NUV-19-YO WEL 11+US - UALITY SERVICES pare NOV 15 1995 _ Anchorage Daily News _ Client Now 429A | = Last gasp? Governor has good grounds to kill Sutton-Glennallen power line Jax Sob Y20Q AIO The Knowles administration’s new study of the Sutton-Glennallen power line confirms what's heen known for a long time. Without a whopper of a state subsidy ~— a $35 million, no-interest state loan stretched over 50 years — the power line isn't anywhere close to the most cost-effective energy project for the region. If the idea is to help the Copper Valley get cheaper, more reliable power, the intertle is a mighty expensive way to do it. As the new study notes, the cul-rate loan isn’t the only help the intertie needs. The power line needs two other heroic measures to justify its existence. First, the biggest customer in the Valdez-Glennallen area, the Petrostar refinery, will have to drop plans to produce its own electricity. Instead, it (or some other large user, such as Alyeska’s pipeline terminal) must sign an irrevocable agreement to buy large amounts of electricity — even if the buyer shuts down or goes out of business. Second, 80 percent of the money for paying off the highly subsidized power line will have to come from someone else — from customers of Chugach Electric here in Southcentral. The study estimates that Chugach's rates will rise a half cent a kilowatt hour — equivalent to a yearly tax of $45 on the average resident's bill. The administration’s study says the state shouldn’t ladle out any cash until the project clears mymerous hurdles. But it falls to state the obvious; the only reason this project is still alive is that the game is rigged. The 1993 legislature, led by then-speaker Ramona Barnes, decided it wanted to spend $35 million on this particular power line — end of discussion. To his credit, Gov. Knowles ordered a second look, but the review assumes the only project that can get a $35 million state subsidy is the power line. No wonder it comes out looking better than the competition. Criticizing the intertie should not be construed as saying the people of Copper Valley should be denied the fruits of progress. It's just that this particular version of progress would come at a heavy price. With its study, the administration missed the chance to ask what is the best way of using $35 million to help cut energy costs in the Copper Valley. With all the conditions the governor’s study team recommends, including environmental reviews, resolution of lawsuits now blocking the project, and another round of public hearings, the intertie may slowly die of its own debilities. But a governor who repeatedly says he believes in ‘good science, good management, and good public process” should kill the project outright. P, Ud v3) OM Hey at| NOV-15-95 WED 11:02 DATE: FROM: Total number of pages transmitted including this page: os 3605 Arctic Boulevard - Suite 696 ~ Anchorage, Alaska 99503 © 907-274-1056 Novembex 15, 1995 AIDEA Attn: Kim FAX: 561-8998 Elaine Pratt QUALITY SERVICES 274~1056 272-5515 (FAX) Total number of articles: iL P. 01 SS a eee ene nae amcaennnerm uae tele meet te 2 NOV-29-95 WED 11:12 (907) 274-1056 Dare NOV 16 1995 _ COPPER RIVER COUNTRY J OURNAL Client No. 207 As You May Know S02 Jol #9 vary Dear Country Journal, As you may know, the Alaska Legislature in 1993 approved a $35 million, 50-year no-interest loan to help construct the intertie, which then-Governor Walter Hickel signed into law. The law appropriating the funds is only conditional on a requirement for the completion of a limited feasibility study for the project. This study is then to be submitted to the commissioner of the Department of Community and Regional Affairs (DCRA) for final determination of satisfying the law. In July, 1994, Governor Hickel's commissioner found the project feasible. Shortly after laking office, because of changing cconomic conditions and other factors, the Governor asked me as commissioner of DCRA to get an updated feasibility review. ‘hal updated review was recenily completed by the Alaska Industrial Development and Export Authority CATIA) and their consulting firm, CH2M Till. The ClH2M Hill/AIDEA report about the eco- nomic feasibility of the project has been delivered to me anda small review leam represented by three other state agencics. I intend to seck the public's comments on the project with a series of public mectings in Valdez, Sutton, Anchorage and Glennalien before issuing a decision about whether lo proceed with the intenie project. According to the statute, NMexibility is limited lo the finding that I as commissioner make, which must be based on the feasibility report and conditions 1 may delermine are necessary. The 1993 Legislature's action was clear that the Community and Regional Affairs commissioner, whose department includes the Division of Energy, is respon- sible for deciding the feasibility of this project. The Legislature said: "The appropriation made (for the inter- tie) is contingent upon the completion of a feasibility study and finance plan satisfactory to the Debarment of Community and Regional Affairs as set oul in former AS 44,83.181." P, 03 oc. Aan Oe | This Adrninistration's responsibility is to fully comply with the law and to give affected Alaskans opportunity to express their views on this projects. As is the case with all major development projects facing this Administration, before proceeding we will ensure that it is scientifically and financially sound and that Alaskans have ample opportunily to discuss it. You can obtain copies of the feasibility study and the public meeting schedule by calling the Division of Energy in Anchorage at 269-4500 or in Juneau at 465- 41700, va-ort Mike Irwin Commissioner Departmerit of Community & Regional Affairs Jer Zeb 2138 NOV-29-95 WED 11:11 Q ide Some = (907) 274-1056 Date HOV 1.6 1995. COPPER RIVER COUNTRY JOURNAL Client No. Heap. , o,e Intertie Study Turns Up Positive But More Meetings Will Be Held SVS perl Yoon 347 aus COPPER RIVER VALLEY-The State of Alaska's pare of Community & Regional Affairs ( has completed a feasibility study on the $35 million zero-interest, 50 year power trans- mission Ine loan thai would tie Alaska's Railbe}t to the Cop River Valley, And the study has found the Intertie to be feasible. COPPER VALLEY ELECTRIC ASSOCIATION (CVEA) Man- ager Clayton Hurless told a meeting of Copper Valley and Valdez Chamber members that over $1 million has now been spent on studies of the Intertle, Iturless said drat Commissioner Mike Irwin of DCRA did not yet sign off on the Intertie plan, He's waiting until another serics of public meetings Is scheduled for Anchorage, Sulton, Glennallen and Valdez in early Decem- ber. Hurless also said the study, though favorable, was skewed against the Intertie. He said it didn't show the true comparalive value or true cost of electricity. wove THE APPROPRIATION for the loan was originally made by the state legislature in 1993. There was a feasibility study in 1994, followed by this, the 2nd update on the study. The November, 1995 feasibility study update was conducted for the state by a company called CH2M Hill, The enginecring firm was called In after Petro Star in Valdez said it intends to produce its own power, instead of using power from CVEA. The current feasibility plan for the Intertie keeps Petro Star In the equation. The Intertie is much more feasible if Petro Star doesn't install its own turbine and produce power, but draws instead from GVEA. ANOTIILR MAJOR CONTINGENCY depends on Chugach Electric. Chugach Electric is negotiating with CVEA on paying what appears to be a large percentage of the Intertie ing, A recent story in the Anchorage Daily News listed Chugach's footing of the bill at 80% of the cost, but Hurless told the joint Chamber meeting that the exact percentage was "negotiable". IN ITS FINDINGS in the Executive Summa' feasibility study said that the Intertle ani alternatlves “are both viable” under a "medium-low" to "medium-high" load growth. The study said, "The Intertic, All Diesel, or Allison Lake alternative have the highest bencfit-cost ratios of all alternatives, However, because the Allison Lake alternative would have a high cost of power relalive to the Intertie, its resource cost is not further considered in this Executive Summary." The feasibility study stressed that the success of the Intertie is "dependent upon continued load growth." The study said, "fF loads were to remain at 1994 levels or if CVEA's largest consumer, the Petro Star refinery in Valdez, were Lo cease buying power from CVEA, the ben«lit-cost ratio for the Intertic would show that costs exceed benefits by a substantial margin and that the altemative is therefore not feasible." The study added, "With substantial load growth, the Intertie clearly has the highest benefit-cost ratio." , the second . "All Diesel" ’ The sludy said that the benefit-cost ratio for the Intertie would be about the same as that for a modified version of the "All Diesel" alicrnative. ‘The study said that the economics for Alycska Pipeline or Petro Star generating power of its own for sale to CVEA diminishes substantially once the Inlertic is constructed, The study said that Lhe economics of the Intertie, in relation to the “All Diesel" alternative, would improve if the Trans-Alaska Gas System CT'AGS) were to be constructed - even as late as 2010. The Silver Lake and Valdez Coal alternatives are more costly tan either the All Dicscl and Intertic alterna- tives, said the study. "fhe decrease in oil and gas prices since completion of the 1994 Intertle study make these alternatives less competitive against both oil-fired genera- tion in the All Diesel altematives and gas-fired generatlon associated with the Intertic alternative," the study sald. The study acicled that the discount rate used in the analysis has a significant impact on the findings. CVEA'S MANAGER urged those who are interested in the project to attend one of he December mectings. The dates and times of the meetings are advertised in this edition of the Country Journal. Le said it was particularly important that supporters of Lhe Intertie attend the Anchorage meeting peceeniea 4th. The Glennallen meeting is December 2nd at m. e If the Intertic passes Irwin's approval alter the meetings are held, there are several other hurdles to go, acy a state and federal lawsuit, and cnvironmental studics. 2a NOV-16-95 THU 19:22 QUALITY SERVICES pate NOV 16 S86 Anchorage Daily News Client No. tte4_ CORRECTIONS [ Wednesday’s editori- al on the Sutton-Glenty allen intertie guve an eee estimate of ‘oject’s potential eon 7 Chugach Electric consumers. According to Joe Griffith of Chu- oe Electric, the cost o a Chugach residen- tial SL atebiget would be approximately $4 a , year at the beginning and would decline over time, with the exact cost depending on the details of agreements currently being negoti- ated. BO2 264 YreR +10E | 1 ' Deter P02 wv ot Quality Services @ 1) phi Ry 7 (907) 274-1056 Date NOV 4.7 1995 ____Frontiersman Client No. 420A MEA studies intertie Jor Ade Yoon 20 By LAURA : MITCHELL HARRIS Fronllersman reporter - If a power line intertie is built from Sutton to Glennallen, the Matanuska Electric Association wants to be teady to get ino the action, At Tuesday's board meeting, 8 board of direc- tors voted to have MEA staff gather information and enter into negotiations leading to the _hertie- inthe event of its con- struction. j —Tast wee, a feasibility re- ‘view was unveiled on the pro- ject that would link the Copper alley Electric Association (CVEBA) to the Rallbelt power system that serves Southcentral aska, The review, conducted by the engineering firm, CH2M Hill Inc., said the project may be the best way to bring cheaper elec- tricity to CVEA members if a number of criteria are met. Gov. Tony Knowles asked for the re- view last spring to determine if previous studies on the project -were still valid in the wake of ‘changing economic conditions, Chugach Electric Association, the stale’s Jargest utility, has of- fered to work with CVEA to ‘help finance the Intertle. One of ‘the key conditions of the feasi- billty review is the commitment of Petro Star refinery in Valdez to buy electricity from CVEA instead of producing its own patie re — that without Petro Star, it wou! i BA ie e intereeled fein: vesting into the project. ~ A 50-year, interest-free $35 million loan was approved by the state legislature in 1993 to help construct the intertic. Knowles will make the final de- cision on the project afler Com- missioner of the Departinent of Community and Reglonal Af- fairs Mike [rwin makes his rec- ommendation on the project following public hearings to be held in Sutton, Anchorage, Glennallen and Valdez next month, . MEA General Manager Wayne Cannony recommended the mo- tion to the board in a memoran- dum that went over some bene- fits of MEA involvement. Carmony said if the intertie is built it could enhance MEA‘s abilily to provide more reliable service to residents in Sutton and Chickaloon, as well as making available more genera- tion resources in the event of a power emergency. He added that if MEA had a stake in the intertie, it might make con- structing a substation in the eastern part of MEA’s region Sce INTERTIE, Page Alt Zak INTERTIE: Bor Zot YeoR 213 Continued from FrontPage _ economically feasible. Carmony said in his memo he knows some MEA members “A pose the project and would only be satisfied with the pro- ject’s termination. “However, to address the ex- pressed concerns of other MEA members who favor the project, and in order to make sure good-faith efforts to mitigate le- gitimate environmental, eco- nomic, aesthetic and other con- cems of our members are un- dertaken, I believe it is impor- tant that MEA step up to the table and become an active layer in the construction of the utton-to-Glennailen Intertie,” Carmony wrote. : : The motion passed right be- fore the meeting was adjourned after a lengthy executive ses- siononapersonnel matter Director Bill Folsom voted against the motion saying he had promised local residents during his election that he - 4 " Miller cast the deciding vote in would oppose the intertie pro- ject, Siccet he had cuagel Ne ant-intertie stance. Two direc- MEA considers joining proposal Proposep Copper VALLEY INTERTIE tors, Frank Mielke and Jim Her- mon, abstained from the vote, .-adding they wanted to see some concrete numbers on the ‘cost of the project for MEA and itsmembers. |. Board president Barbara favor of entering into negotia- tions, joining the votes of direc- tors Ted Carlson and Rodney Cottle. - ‘* Miller assured the board it will have final approval on be- coming involved in the intertie project. Tuesday's vote would only let them get the ball rolling in the event that the project goes through, she said. “This is still a neutral posi- tion,” she said. One of the yg ardent u sing the intertie is re dotinn base Alaska Citi- zens for Responsible Energy Development. Chris Rose, co- founder of ACRED, said he sees this move toward negotiations as a declaration ef MEA’s posi- ion. He said his will con- tinue to actively oppose the project and try to ight oth- er alternatives for bringing cheaper electricity to Copper Valley. A press conference is scheduled for Monday in An- chorage for the group to discuss its position. CRED board member War- ren Keough was at Tuesday’s meeting and said he thought if MEA fook an active stance against the project, it might alert the governor to alternative = A drafi response to the feasi- bility review from ACRED coined the project, the Petro Star Intertie, a case study in cir- cular reasoning, mistaxen as- sumptions, poor public process and a public investment with private benefits. NOV-27-95 MON 11:40 Quilty Services. (007) 274-1056 Dore HOV 2 0 1895. ALASKA JOURNAL OF COMMERCE Client No. — 420A Conditions set for new Intertie o2 ” ¥ By the Alaska Journal of Commerce he proposed Sutlon-Glennallen clee- trical intertie appears economically feasible according to a study by CIL2M vin conditions are net such as a commiiment lo buy power by a major Copper Valley user and development of (ill, hut only if ce a financing plan. Alaska Department of Community and Re- glonal Affairs Commissioner Mike {rwin, lim- ited hy state law to deciding the intertie’s future based on economic feasibility, sald before the line is constructed, environmental studies must be completed, the line’s route needs further review and allected Alaskans should have adequate opportunity to voice AV their opinions, CH2M Lill presented the findings of its feasibility study to a Knowles administration working group of four state agencies — the departments of Natural Resources, Transpor- tation and Pubhe Facilities, Community and Regional Affairs and the Alasta Industrial Development and Export Authority. The group concluded that the project should proceed, provided certain conditions are met. Among them: * A power sales agreement is reached be- (ween Copper Valley Blectric Association and the Valdez refinery Petro Star or another ma- jor power user. The Wwo companies and Chugach Llectric Association recently reached such an agreement. The working group also proposed a credit enhancement to be pro- vided for Petro Slar’s payment obligations. * Copper Valley and Chugach Electric utili- lies agree to participate jointly in the projectto belp share the project's financial benefits and risks. The general managers of both compa- nies already bave tentatively agreed In prin- ciple to such a joint participation * Expenditure of funds from a $35 million stale loan approved by the £993 Legislature lor the project must be repaid, even if the project is never completed, * Enviroumcatal conditions are fully com- plied with, inchuding completion of an envi- ronmental study and consideration of alter- nate rouling to minimize public concerns. The group also required that the Alaska Public Utilities Comission approve of any power siles agreements and an updated f- nance plan is in place subject to DCRA approval DCRA officials plan to conduct public meet- ings in the next few weeks in Anchorage, Sutton, Glennalien and Valdez. Aller the hear- ings, Invin is expected to make a final deci- sion about whether to proceed with the project. AIDEA commissioned the feasibility study. P, 04 DEC-11-95 MON 11:41 (907) 274 180 NOV 22 1995 Datu Tundra Times Client No. YLeA Conditional rod for interile The proposed Sutton- Glennallen electrical intertie ap- pears economically feasible, ac- cording 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. Cominunity and Regional Af- fairs Commissioner Mike Irwin, limited by law to deciding the intertie’s future based on eco- nomic feasibility, said before the line is constructed, environmien- tal studies must be completed, the line's route needs further review and affected Alaskans should have adequate opportunity to voice their opinions, 7/°& 7204 P, 07 DEC- 4-95 MON 11:24 Qs (907) 274-1056 Date NOV 2 2 1995 Frontiarsman el Ans oem tome Client No_ 244. Secession has a price It’s time for supporters of Lake Louise secession to con- sider some hard realities. Those who desire to separate thomselves from the Bor- ough raise valid points, in so far as they go. The residents of the Lake Louise area are quick to point to their closeness to Glennallen, and the fact that they get the majority of their services from, do most of their shopping in and send - their children to schools in the much-closer ommunity as the main reasons for the move. Residents of this distant area also say they are paying many times in taxes what they feel they receive in services from the Mat-Su Borough. And they rescnt moves such as that the borough foisted on them to Step and charge an addi- tional fee for waste disposal. But there is more to this move than proponents are sceing clearly. As of yet, supporters of secession have not deter- mined just how much financial support the region actually receives from the borough, As the population grows in the coming century, Copper’ Valley Basin residents will sce their resources and the resources of Glennalien stretched to a point where they could very possibly exceed the ability of the region to cover additional needed services without the help of a larger, more economically viable partner like the Mat-Su Borough. And should the plan to build the Sutton-Glennallen inter- tie come to be a reality, those residents who have moved to break away may find themselves forced to swallow a deal they do not like if they don’t have the big stick of the Mat- Su Borough behind rte to protect their interests. Those who back the secession must also remember that they will take with them their portion of the debt already contracted for with regards to schools and bond funding, And as the secession would also take with it some $10 mil- lion in taxable resort property, it is not likely that Mayor Barbara Lacher will let this valuable asset go without a fight. There is the very real possibility that the borough would are) move ke gobble up oe entire region, td ing it and putting Lake e Louise res t back where they started from. eon AVE Before succession proponents move blithely off into the unknown of a break-up, they should canker the stum~- bling blocks carefully. There is most often safety in num- bers, and remember it is comforting to know your bigger sibling is there to back you up, even if the two of you don’t always get along. Steve Heide P. Ub SOM beb- 4-Y5 MON llids Q Quality Servicer stot (207) 274.1056 bae NOV 2 2 1995 Frontiersman > Ld «Is it true thal one of the many ro posed Intertie Feasibility Studies” didn’t consider the economic ramifications of lost revenue impacts — because of luck of Hor 3 Yor) aad moncy? OGM P, Ud NUV-24-Y5 FRIL 1lel4 QUALITY SERVICES NOV 2 3 1995 Date. Anchorage Daily News Tien) ING ne Gite: Aan (feet EC Say no to intertie project I do not understand why the governor does not stop the Sutton-to-Glennallen intertie. I would hate to sce the scenic Matanuska vay and Glenn Highway disrupted by a high-voltage powerline, when the largest projected consumer, Pe- tro Star, has the potential to co-generate. It does not make economic or environmen- tal sense. I hope members of the Chugach and Matanuska electric associations will voice their comments since the boards of direc- tors of the electric cooperatives appear interested in investing in this project. Bor aul “920A 2 — Ellen Americus Palmer PU Deh = See @ Qunkiy Services Se (907) 274-1056 Dae NOV 24 BS Frontiersman Client No. %204 Review: Intertie a bad investment Jor 2th 20f7 By LAURA MITCHELL HARRIS Fronersman reporter The Sutton-to-Glenallen inter- He is not a investment of public money because it’s not the best economic alternative. This is the message of a former member of the Alaska Public Utilities Commission on the roposal to build 2 power bine Dieetie that would carry elec- tricity to the Copper Valley. Mark Foster, an Anchorage engineer, presented his eco- nomic review to a group of me- dia and interested pasties at the Egan Convention Center Mon- day afternoon on behalf of Alaska Citizens for Responsible Energy Development, a group opposed to the construction of the intertie. Two weeks ago, a feasibility review, requested by Gov. Tany Knowles, was released stating the intertie is still a feasible idea if several conditions are met be- fore the line is constructed. Knowles, with recommenda- tions by his administration, will decide in the next few months whether to approve an interest- free $35 million loan to the enti- tes involved for the construc- tion. The intertie would link the Copper Valley Electric Associa- tion to the Chugach Electric As- sociation, the state’s largest util- ity. CEA has tentatively offered fo pay 80 percent of the costs of construction and maintenance. - its participation is contingent upen a 2-year commitment of Petro Star, a Valdez refinery, to buy electricity and not cogener- ate its own power. ts of the intertie say the line will bring cheaper and more reliable electricity to Cop- per Valley residents, who pay some of the highest electricity rates in the state. But Foster says the state's fea- sibility review, conducted by CH2M Hill Inc., is depending too heavily on a set of assump- tions that provide no guaran- tees, including the icipation of an industmial facility for an extended length of time. He also points out that since CEA has oifered to pay 80 per- cent of costs, it will be the CEA members that will be paying for a majority of the ine. The state needs to pursue a more prudent tact of exploring better alternatives or replacing the existing system in CVEA = one more efficient, he says. “If the state is going to spend Kiteraily ieee of Roars of dollars on studies that exam- ine alternatives to the power line, then the state must consid- er those alternatives and the in- tertie on the same playing field,” said Chris Rose, a Palmer attorney and co-founder of ACRED. Rose thinks the gov- emor is being pressured by the electrical union to approve the project and the pi parties who will benefit from tne con- struction of the intertie are the electrical union and Petro Star oil refinery. | | J . Public hearings will be held| in Sutton, Glennalien, Anchor-! age and Valdez Dec. 1-5 for’ people to comment on their sentiment on the intertie before; Mike Irvin, the Commissioner! af the Department af Commu- nity and Regional Affairs,| Ss the final recommenda-| tion to the governor, The Sutton meeting will be held 7 p.m. Tuesday, Dec. 5 at the Sutton) Community Hall. | “This is a classic Alaska is-| sue,” Foster said Wednesday.| “You have a group of local peo- ple not inny with the gov-; emmental process.” The opposition feels the inter- tie project is a financial boon- doggie, as well as one that wii! go nigh their front yard, he! said. And in pursuing the prob- lem, local opposition has been able to build support against it, he added. OPT NOW S6-11-030 90 ‘d NOV-30-95 THU 10:51 Q Quali Py (907) 274-1056 paw NOV 2 5 1995 CHUGIAK=-EAGLE RIVER STAR Client Na_ Yr Better alternatives to power Inter-tie To The Editor: 362 AGE Yea The Matanuska Electric Association (MEA) very recently entered negotiations in the Sutton-Glennallen Intertie boondoggle, Suggesting MEA take an equity position in this proposed project, Gencral Manager Wayne Carmony recommended MEA partici- pate in negotiations underway between Cop- er Valley Electric Association (CVEA), Petro-Star Valdez Refinery and others. , Though less than a majority of MEA’s Board of Directors voted for MEA’s role in the Intertie negotiations, our slectric cooperative's management now actively pur- sues a stake in this powerline. The Board's action occurred at the manthly Director's meeting November 14. Voting on 2 motion made by MEA’s Vice-President Ted Carson, President Tami Miller hesitatingly cast the third affirmative and deciding vote to initiate Intertie negotiations. To their credit, Direc- tors Hermon, Meilke and Folsom abstained or voted No on the motion. One wonders why this item of business was nat placed on the agenda for the Novein- ber meeting. One also wonders why the Board’s action occurred at the very last mo- ment of the lengthy mecting, a Lime follow- ing a closed executive session when most of the audience departed and only two co-op Members remained in attendance. Perhaps some directors and staff wish to quietly shun public scrutiny on this issue. To avoid future suspicion of being less than forthright on In- tertie affairs, I respectfully suggest MEA da a better job of keeping concerned electric consumers informed on matters related to MEA’s role in this proposed project. It is unfortunate that three MEA Direc- tors were swayed by Mr. Cannony’s recorn- mendation, one that itemized the project’s questionable benefits while omitting the eco- nomic, social and environmental tiabilities of this fiasco in the making. Why would our electric cooperative be- come involved in a $60 million project when cheaper power alternatives exist for Copper * Valley? Options exist that do net carry the economic risk, that will not raise our electric tates, that do not require an offensive high- voltage powerline through the Matanuska Valley and that can be supporied by MEA mernbers. That MEA should consider play- ing any role in providing energy via a powerline through the Matanuska Valley to a Valdez oil refinery is an absurdity. Peiro- Star Refinery could easily co-yenerate its own electricity. Further, less costly hydro- power development at Silver Lake or Allison Lake near Valdez are projects that would carry no risk for MEA member-owners. P. 02 MEA consumers would be better served by directors and managers who recognized this project for what it is, a grab for free State funds by CVEA, CBA and the IBEW, If con- structed, the proposed Intertie will require another bilking of the state treasury. Foolish energy development projects, like the former Susitna Hydro Project, have long afflicted Alaska. The Sutton-Glennaflen Intertic is no different. If this Intertie is actually buiJt how- ever, electric ratepayers from MEA and CEA will be covering the cost overruns when the frce money runs out. 1 suggest MEA consumers keep abreast of Intertie affairs and encourage our board of directors to avoid the strategic blunder of playing the Intertie game with CVEA and CEA. Warren J. Keogh Chickaloon DEC-19-95 TUE 10:39 semen Sosa Qanliuy Sens Sessa (907) 274-1056 Date NOV a 1995 Client No. Ln Intertle makes no sense Editor: I do not understand why the governor does not slop the Sut- ton Glennallen Intertie. I would hate to sce the scenic Matanuska Valley and Glenn a hd disrupted by a igh voltage powerline when the largest projected consumer, Petro Star, has the potential to co-generate. It dacs not make environmental or economic sense, I hope the members of the Matanuska Electric Association will voice their comments, since the board of directors of the electric cooperative appear in- terested to invest in this s project. dwALV2 Soy Ais FOG Ellen Americus Palmer Ak P, 04 Qssss = Hy ru 2" (907) 274-1056 De NOV 29 1995 Valdez Vanguard Client No. Yr20A State is seeking input regarding intertie Y20A 302 L/10E Vanguard staff The Department of Community and Regional Affairs will host a public hearing Friday at 7 p.m. in to discuss the results of a recently- completed feasibility study of the proposed Glennallen-Sutton inter- tie project and to take public com- ment. The meeting will be held in the Valdez City Council Chambers. Mike Irwin, commissioner of Community and Regional Affairs, and a representative of CH2M Hill, the firm that conducted the study, will be present. Irwin has the final say on whether or not the intertie project should move ahead. He, along with three other state commissioners, was assigned by Gov. Tony Knowles to review the study. Irwin and the other commissioners have said they would recommend that the project proceed, but only if sev- eral conditions were met. The state legislature appropriat- ed a $35 million zero-interest, 50- year loan in 1993 to construct a power transmission line linking Alaska’s Railbelt region to Copper Valley Electric Association’s ser- vice area. CVEA residents current- ly pay about 18.4 cent per kilowatt hour. Anchorage residents pay roughly half that. DEC-11-95 MON 11:38 Sowa eae Q Quality Services: (907) 274-1056 Frontiersman Client No_ __ 42 P, 03 CEM et in MEA SUL ISL A/D 0333 0524 SAG he Matanuska Elec- tric = Association (MBA) very recently | . entered negotiations in the Sutton-Glen- nallen Interlie boondog- gle. Suggesting MEA take an equity position in this a roposed project, General ’ anager Wayne Carmony recommended MEA articipate in negotiations underway between ‘opper Valley Electric Association (CVEA), Chugach Electric Association (CEA), Petra-Star Valdez Refinery and others, Though less than a majority of MEA’s Board of Directors voted for MEA’s role in the Intertie ne- gotiations, our electric cooperative’s management now actively pursues a stake in this powerline. The board’s action occurred at the monthly direc- tors’ mecting Nov.'14. Voting on a motion made by MEA’s vice-president Ted Carlson, president mie Miller hesitatingly cast the third affirma- tive anid deviding vote to initiate Intartie negotia- tions, To their credit, directors Hermon, Meilke, and Folsom abstained or voted no on the mation. One wonders why this item of business was not pees on the agenda for the November meeting. ne also wonders why the board’s action oc- curred at the very last moment of the lengthy meeting, a time following a closed executive ses- sion whei most of the audience departed and only two co-op members remained in the alten- dance. Perhaps some directors and staff wish to quiet- ly shun public scrutiny on this issue. To avoid fu- ture peepicon of bejng less than forthright on In- tertie affalrs,. respectfully suggest MEA do a bet- ter job of keeping concerned electric consumers informed on matter related to MEA‘s role in this’ proposed project. It is unfortunate that three MBA directors were swayed by Mr. Carmony’s recommendation, one should rethink Warren J. Keogh hink Intertie that itemized the project’s questionable benefits while “omitting the economic, so- cial, and environmental lia- bilities of this flasco in the making, Why would our eleciric . cooperative become in- volved in a $60 million pro- ject when cheaper power alternatives exist for Copper Valley? Options exist that do not carry the economic risk, that will not raise our electric rates, that do not require an offensive high-voltage powerline through the Matanuska Valley, and that can be supported by MEA members, That MEA should cousider playing any role in provid- ing energy via a powerline through the Matanus- ka Valley to a Valdez oil refinery is an absurdity. Petro-Star Refinery could easily co-generate its own electricity, Further, less costly hydropower development at Silver Lake or Allison Lake near Valdez are projects that would carry no risk for MEA meniber-owners. MEA consumers would be better served by di- rectors and managers who recognized this project for what it is, a grab fox free state funds by A, CRA and the IBEW. If constructed, the proposed Intertie will require another bilking of the state treasury. Foolish energy development projects, like the former Susitna Hydro Project, have lon; afflicted Alaska. The Sutton-Glennallen Intertie is no different. If tris Intertie is actually built how- ever, electric ratupayers from MEA and CBA will be covering the cast overruns when the free mon- ey runs out. : ; : ;. Lsuggest MBA electric. consumers keep abreast of Intertie affairs and encourage our board of di- rectors.to avoid the strategic blunder of playing ' the Intertle game with CVEA and CEA. swerve Warren J. Keogh is a MEA member and resident of Chickaloon. DEC-21-95 THU 11:02 P, 02 CEM Q Quality: Services (907) 274-1056 Date NOV 3.0 1995 Chilkat Valley News _ Client No, ¥20A. Places To Go, Things To Do ™ oh 2108 evs) 7% RECYCLING Take a break from recycling in December. There aren't golng to be any recycling pick-ups this month. TOLSONA MOTOR MUSHIERS-Bad luck. The Cross Country Snowmachine Race, scheduled for December 2nd and 3rd at! Tolsona Lake has been postponed, There's no snow, Call 822-513) | for details on its rescheduled time. | AMERICAN LEGION BAZAAR-December 2nd, 10 am to 4 pm at the| m in Glennallen. Turkey dinner and sandwiches. Tables are $15.: “all Vera, 822-3698. s GIVE TO THE TV CLUB-Get in the Christrnas spirit, The Weangell) Mt. TV Club needs $50 per family to help support the helicopter trips to the top of Willow Mountain so you can watch TV, You can vote on your favorite new Denver Channel when you give. INTERTIE MELTINGS-In addition to intertie meetings December 1st’ ) in Valdez and December 2nd, at 6 pm at the Caribou In Glennallen,, there will be a December 4th meeting at the Anchorge Holiday Inn! ) at 7 pm, and a meeting 7 pm on December 5th at the community hall in Sutton. i LAKE LOUISE HEARINGS-The Mat-Su Borough is continuing to claim that Lake Louise Is acwally part of the Palmer region. To attend the hearing, trn up at the Point at Lake Louise on Thursday, December 7th, at 1 pm. Or you can go to Wasilla City Council Chambers on Friday, December &th, al 4 pm. CVEA MLLETLNG-The Copper Valley Electric Association Board of! Directors will hold a Budget and Finance committee mectin; Thursday, December 7th at 1 pm In the Glennallen office. CVEA will’ hold a board retreat at the Point at Lake Louise at 10 am, Friday, Decoeen 8th through Saturday, December 9th, Call 822-3211 for ctails, : DEC-19-95 TUE 10:38 ( ality Services (207) 274-1056 NOV 30 #95 Date COPPER RIVER COUNTRY Te Client No. Ye 4 eee eed BOL 26 21 Hed GLENNALLEN-Glennalica Elementary is booking for a new principal School Supcrintendent ae Maykowskyj says the school will put administrator Sally Hronkin back in the administration office, as special programs director, Steve Paulz, lhe high school principal, had been in charge of Glennallen Elementary this year. He was assisted by Sally Hronkin and Becky Odell, whe both moved to the elementary school from the district office. Parents, the advisory school board, and the PTA had objecied to the plan of having Glennalicn's two schools share a principal. "hey wanted to have their own principal for K-8," saicl the superintendent. CORDOVA-IIow do others sce us? Here's a quote from Cordova High School coach Bob Lenz, after Cordova lost to Glennallen, 65-62: "they killed us at the free throw line Friday," Lenz told the Cordova Times. "Aaron Wilford hit 16 or 19 himself, including eight of 11 in the fourth quarter alone, Plus they did a good job defensively of taking away our inside game. They bave some very good athleles and follow their shots very well..." ALASKA-The state's jobless rate went up to 6.8% In October - more than one percentage point- withthe end of summer's tourism and fishing jobs. Rural Alaska had the highest jumps in unemployment. In Anchorage, eenaptoient went from 4.5% to 5.1% in October. COPPER RIVER-Honcywellis “working out the bugs” and fine-tuning the "energy retrofic' of Gicanalica, Gakona, Copper Center and Kenny Lake schools, according to the district. Honeywell has installed new lighting thal is more cnergy efficient, and has addressed the problems of other energy-consumnplion, including healing. When it is fully operational, the maintenance crew should be able to monitor the entire system by compuler - including temperatures al rcmote sites, In the meanwhile, Copper River's schuols arc currently being monitored for such things through Atlanta, Georgia, according to school superintendent Gcorge Maykowskyj. GLENN HIGIIWAY-A group called Alaska Citizens for Responsible Enceegy Development has taken out an ad in the Anchorage Daily News, opposing the Sution-to-Glennallen clectrical intertie, The group apparenily claims that the intertic is a plol by Ure state to help members of the electrical union. tt says: “Ftigh Paying Jobs...That's Right! The State wants to provide a Sew bigh paying jobs to a few Electrical Union members. Wh $35 million of your money! The Sutton-Glennallen Iniertie 1s all aboul who ts in chame: Alaskans or Unions? ASR your governor...” P, 03 Q Quality Services (907) 27441056 Dore DEC 01 235 Prontiersman Client No. 4244 Intertie too costl zo Hoe rr he coed Suiton-Glennalien Inter- § ‘tie leaves me dumbfounded. Why ' should we pay for someone else’s ; electricity, particularly if Copper Val- le ro electric consumer is Pet- rostar inery in Vaidez? And why should we bald an eyesore near the Cen Highway. We need to solve'the problem of expensive electricity rates in the Copper Valley, but the Intertie is the wrong answer. Chugach Electrical a, os = proposing ko 8&0 percent of-the cost ot the itertie, Where will CEA get this mon- ey? Electric associations are financed by consumers; by the fom who pay electric bills. Ido not buy my electricity ‘oon CEA, at least not aie Tam a resident of Palmer. I send my monthly check for elec- tricity to Matanuska Electric Association (MEA). However, MEA buys its electricity from CEA. Although MEA claims te be neutral about the Intertie, MEA has made it known that if the Interhe goes through, they want “in on the action.” If MEA buys ir Intertie, then part of our monthiy checks for electricity will be going to pay for electricity elsewhere. Personaliy, this increase would be justi- SPECTRUM i Cree Howell i ' 4 fied if the prim se of Intertie was to help out ane. ae ms who are sitting in cold dark houses because they cannot ak ford to pay higher electricity bills. Howev- ex, the consumer who has the most fo gain from the Intertie is Petrostar Oil Refinery in Valdez. It is the C pe ee s largest electric consumer an absolutely noth- ing, to lese by the Intertie. AI} it has ‘a do is promise to buy electricity from the govern- ment for 10 years at a new cheaper rate, and it has the Intertie built for them by the tesidenis of South Central Alaska. If Pet- tostax has the most to gain, then why is Pet- tostar not paying for the Intertie? Earlier “= yeas, Governor Knowles sup- ported plans to upgrade the Glenn Hignh- way by building scenic pullouts and a bike trail those are both excellent ideas and I fully support them. The Gienn Highway y in many ways) was listed by National Geographic as onl of the 10-most scenic highways in the US. { It's a beautiful drive and we should all bel proud that it isin our state. But who would! want to get out of their car to take pictures; of a wildemess obstructed by large metal! towers or nde on a bike path right next to a! huge power line. At present the residents of Copper Valley; receive electricity from old diesel generat i ing units, These old uniis are inefficient andj need to be replaced. The cost of these units have driven up the electricity rates in Cop-} per Valley. However, since the government; ae supported the idea of the Intertie, noj mt has gone into researching or de-| ig ew ctieaie: Choosing to put in hel Titestie is ike buying a new king cab) truck when all that is really needed is a; new spark plug. Instead of wasting our, money onan ugly duckling, we need to! shop around some more. _ Goto the public hearings on Dec. 4 and 5 5) in Anchorage and Sutton to voice your own; cepinion. My view is that the Intertie is not al smart choice for Alaskans. Cree Hourll fives in Palmer. | BE: TT NOW S6-11-93d c0 ‘d DkO- 1-Yo FRI 1U+ 38 = QUALITY SERVICES pate__PEC 01 19 Anchorage Daily News Client No, wth A intertie on local agenda Costlier power a possibility doz 30b 420A 210% 337 By S.J. KOMARNITSKY Daily News reporter 03373 o329 Anchorage residents will Bet their first chance thls week to welgh in on a controversial power line that would lower electrici- ty bills for those living in the Copper Valley basin but raise them in the An- chorage Bowl and other parts of Southcentral Alas- a. Starting today, public hearings will be held in four communities — Val- dez, Glennallen, Anchorage and Sutton. While“‘hearings have been held in the other communities before, this is the first one for Anchor- age. It's Monday at 7 p.m, at the Holiday Inn down- town. Many in the Anchorage ‘Bowl have never heard of ‘the project — a power line, also known ‘as an intertie, that would stretch 135 mi- les across the Matanuska Valley from Sutton to Glennallen. It would allow residents of Glennallen, Valdez and other communities in the Copper Valley basin, who now pay nearly double what Anchorage residents pay for electricity, to tap into the vast power re- serves of the state’s largest utilit Chugach Electric Assoc! ation. Exactly how much that would lower electricity bills in the basin is disput- ed. About 3,000 homes and businesses now draw thelr power from Copper Valley Electric Association at be- tween 17 and 21 cents per kilowatt hour. Those in fa- vor of the project - say it could lower those rates by up to 3 cents, or about $130 a year. Those opposed say Ploase see Page B-4, INTERTIE p, U2 BAI tvek DEU- 1-Yo FRI 1Ui39 = Continued from Page B-1 | it would be much less, Southcentral residents . could see their rates rise because Chugach Electrice has tentatively agreed to pay 80 percent of the costs of building and maintain- ing the line in exchange for. being able to sell power to Copper Valley Electric. Those costs, estimated at $53 million for construc- tion, and about $150,000 a° year for maintenance, would be passed on to Chu- gach consumers. Gene Bjornstad, general manager at Chugach Elec- tric, said he didn’t know how much the power line would raise customers’. rates. One early estimate was an extra J5 cents a month on an average resi- dential bill of $70, for up to four years. But that could vary de- pending on the final cost of : 1 pide rai JOM / Anchorage Dally Naws the line, and what percent- age: Chugach pays. It also depends on whether Homer Electric and Matanuska Electric associations, which buy their power from Chu- gach, agree to share the cost, he said. The two utili- ties account for about half of Chugach’s 100,000 cus- tomers. The deal still needs to be approved by the utilities’ boards, and by the Alaska site Utilities Commis- sion. Copper Valley and Chu- gach electric associations also are waiting to hear whether the state will pro- vide financing for the proj- ect. The Legislature desig: nated a ‘$35 million interest-free loan and up to $25 million in state-issued bonds for’ the power line with the condition the proj- ect be found economically feusible. Mike Irwin, the head of the state Depart- ment of Community and Regional Affairs, is offi- cially responsible for mak- ing the decision. He said he should decide by the end of this year. Also sure to play a part-is Gov. ony Knowles, who said in an interview last week he has not yet made up his mind. The line has been op- posed by an amalgam of ejivlronmental groups such as Trustees for Alaska and the Alaska Center for the P, 03 Dbu- 1-9 FRI 1U+4U as well as Sutton and Chickaloon, who live in or near the line’s intended path. E They argue the line is far from the best alterna- tive for lowering power costs in the Copper Valley, that it will leave an endur- ing scar on the scenic Mata- nuska Valley, and that it will cost the state an’ esti- mated $26 million in lost interest. “This thing wouldn't fly except for the $35 million Environment, residents of state loan,” said Kevin Ha-. run, of the Alaska Center for the Environment. "Our big concern is the state has not adequately looked at the alternatives.’ The group supports hydroelec- tric power, Those in favor of the roject include Copper Val- ey Electric Association; ’ Another option, a the International Brother- hood of Electric Workers, whose members would build the line; and many Copper Valley residents who are desperate for cheaper power. | The latest state study, which came out in mid-No- vember, did recommend the intertie over several alternatives, but only if the project recelves the $35 million interest-free loan. lan to replace the handful of ag- ‘ing diesel generators that Copper Valley Electric now relies on for power at times, would’ be just as viable if it were not for the loan, the study found. Other alternatives that were considered but not recommended were plans to build a coal-fired plant in Valdez and a hydroelec- tric project at Silver Lake, 465-4700. and a proposal to expand an existing dam at Solo- mon Guleh near Valdez that provides hydroelectric ower to Copper Valley. Rane water levels prevent the utility from using the dam in the winter. Irwin said if he decides ta sepnote the intertie, several conditions ‘will he attached, including that Copper Valley's biggest customer, the Petro Star refinery in Valdez, agree to purchase power sfor the next 10 years, and that Chugach finalize its agree- ment to pay part of the costs of the line. If he does, the project is likely to end up in court, Alaska Citizens for Re- sponsible Energy Perey ment, a group opposed to the line, already has filed a lawsuit, but it’s on hold until the state decides. In addition, Randy Hobbs, who wants to build the coal-fired plant in Valdez, said he plans to sue. For more information on the hearings, call the De- partment of Community and Regional Affairs, P. U4 DEU- 4-Yo MUN Ilidl QUALITY SERVICES pate DEC 0 3 1995 _ Anchorage Daily News Client No. Yre Attend Intertle hearing Monday it appears that due to increased pres- sures from the International Brotherhood of Electrical Workers union, Gov. Knowles is now willing to approve the Sutton-to-Glennallen intertie. That pres- sure, along with Chugach Electric Corp.’s intent to ralse its own electric rates to finance the deal, helps male this one of the most bogus projects in our state's history. But it’s not too late. The voices of reason can still prevail. Chugach Electric consumers can call their board of direc- tors and ask why Chugach is willing to ee — rates to pay for such a wasteful project. Anchorage citizens can also attend the public hearing to be held Monday at the downtown Holiday Inn, at Fourth Avenue and C Street, at 7 p.m. and argue against spending $35 million on pure pork. And all Alaskans should ‘urge Gov. Knowles to resist pressure from the IBEW and kill the intertie in favor of heifer uses of the statd’s diminishing resourtas. — Stephen Kotesf P. Ud (907) 274-1056 Date DEC 04 1995 SITKA SENTINEL Client No._Y2¢A Hearings Held on Intertie 420A J0A 20 ANCHORAGE (AP) — Public hearings began Friday on a disputed power line that would cut electricity costs for Copper Valley residents while increasing costs in Anchorage and other Southcentrai communities. The package would include an in- terest-free state loan of $35 million. Hearings are being held in Valdez, Glennallen, Anchorage and Sutton. The power line would stretch 135 miles through the Matanuska Valley from Sutton to Glennallen, connecting Copper Valley communities to the Railbelt grid and the relatively cheap power generated by Chugach Electric Association, the state’s largest utility. Exactly how much that would low- er electricity bills for the Copper Val- ley area is disputed. About 3,000 homes and businesses now draw their power from Copper Valley Electric Association. They pay 17 to 21 cents per kilowatt hour, 50 percent or more above the rates in Anchorage. Those in favor of the project say it could lower Copper Valley rates by up to 3 cents, saving the average resi- dential customer about $130 a year. Those opposed say the savings would be much less. Southcentral residents could see their rates rise because Chugach Elec- tric has tentatively agreed to pay 80 percent of the costs of building and maintaining the line. i en Those costs, estimated at $53 mil- lion for construction and about $150,- 000 a year for maintenance, would be passed on to Chugach consumers in the Anchorage area. The deal still needs to be approved by the utilities’ boards, and by the Alaska Public Utilities Commission. Copper Valley and Chugach elec- tric associations also are waiting to hear whether the state will provide fi- nancing for the project. The Legisla- ture designated a $35 million inter- est-free loan for the line — on the condition it was found economically feasible. Mike Irwin, the head of the state Department of Community and Re- gional Affairs, is officially responsi- ble for making the decision. He said he should decide by the end of this year. The line has been opposed by envi- ronmental groups, as well as residents who live near the line’s intended path. DEU- 4-Y¥9 TIUN L1l+éé QUALITY SERVICES paeDEC 04 1995 _ Anchorage Daily News ae Client, No 26.4 | Puslic MEETINGS ANCHORAGE ASSEMBLY mects 5 pt, Tuasday at LOussac Library. (343-4311) COMMUNITY COUNCIL mectings: Bayshore/Klatt (Jos Banta, 522-3808); Downtown (Cralg Cook, 349-1883); FCC Executive Board (FCC, 277- 1977), South Addition (Seth Eames, 272-9431); South Fork (Fon Aksamit, 696-1868}; Spenard (Pat Fullerton, 563-1156); Turnagain (Kelly Smith, 248-9126). HALO (HOME AND LANDOWNERS ORGANIZATION) meats 7 p.m. Thurs- day at Unity Church on O'Malley Road, featuring update on school construc- fion and programs in Soulh Anch- oraga, by Kathi Gillespie, Anchorage School Board member. (346-3784) MULDOON-FORT RICHARDSON. EAGLE RIVER LEGISLATIVE PUB- LIG HEARING featuring Alaska Legla- lature members Rick Halford, Randy Phillips, Vie Kohring, Pete Kolt and Ed Wilils, is Saturday, 11 a.m. at Muldoon Elomentary and 4 p.m. al Eagle Center. Only Sen. Phillips wil be at Muldoon hearing. (694-4949) SUTTON-GLENNALLEN INTERTIE PUBLIC HEARING Is 7 p.m. today at Holliday Inn. (745-6000) , r.us bel b-Qb TUE 11: UY P. U2 QUALITY SERVICES 4 nte rtie Salk pate_VEC 05 1995 “var gets cold shoulder Chugach customers don’t want to pay bill Jud Sob Yroq 2fuk By S.J. KOMARNITSKY Daily News reporter Anchorage residents gave state officials an earful at a rancorous late-night mect- ing Monday about a proposed power line that could lower rates for those living in the Copper Valley basin but raise them in the Anchorage Bowl and elsewhere in Southcentral Alaska. The meeting at the Holiday Inn down- town was the third of four public meet- ings in communities affected by the power line, or intertie, as it is known. Meetings in Glennallen and Valdez attracted about a residents, most favoring the proj- ect. Anchorage’s meeting, attended by about 100 people, was another story. Signs opposing the power line covered the meeting room's walls. Several people held signs saying “No Intertie,' and a few even plastered biimper stickers on them- selves reading ‘“‘3top the Tony Knowles Intertie.” From the beginning, Mike Irwin, com- missioner of the Department of Communi- ty and Regional Affairs, found himself on the hot seat. The Legislature has designat- ed a $35 million interest-free loan for the project, as well as up to $25 million in state-issued bonds. Irwin must give his approval for the funds to be released. The power line would stretch along the Matanuska Valley from Sutton to Glenn- allen. It would ailow residents of Glenn- allen, Valdez and other communities in the Copper Valley basin, who now pay nearly double what Anchorage residents pay for electricity, to tap into the vast power reserves of the state’s largest utili- ty, Chugach Electric Association. At the most, Copper Valley Electric Association customers would see their rates go down by about three cents a kilowatt-hour, or the equivalent of $130 a year on av average residential bill. At the same time, Anchorage residents would see their rates increase because Chugach Electric has tentatively agreed to pay 80 percent of the cost of building and maintaining the line. Those costs, estimat- ed at $53 million for construction, and about $150,000 «a year for maintenance, would be passed on to Chugach consum- Please see Page C-3, INTSATIE » DEQ= 6-96 TUE 11:10 INTERTIE: Power line opposed BOL 326 Hoe 216 wc Continued from Page C-1 ‘| ers. In exchange, Chugach would sel! power to Copper Valley Electric. Exactly how much Chugach customers’ rates would increase is unclear. Chugach board chairman Ray Kreig, who attended Monday’s meeting, didn't have an answer. But he said his decision would be based on whether the line would - benefit Chugach consumers. ‘If money is loaned, it better be paid back attractive- ly,’ he said. Much of the meeting focused on how Irwin would make his decision. People wanted to know how much of a role Irwin’s boss, Gov. Tony Knowles, would play, and whether he would consider the social and environmental impacts as well as economic factors. The Ine has been bitterly opposed by those who say its towers ~- up to 80 feet tall -- would mar the scenic Matanuska Valley, “Does Governor Knowles realize this is not the same legacy as the Coastal Trail?” asked David Heynen, an Anchorage archi- tect. “And if it's simply a cost analysis, then is cheaper always better?” In the past, Irwin has said his role was limited by the Legislature to deciding whether he found the project economical- ly feasible, not whether it was the best project for Copper Valley or how it would affect the enviranment.: But when pressed by Heynen and oth- ers, he said he would consider other factors and bring them up with Knowles, Several people questioned the state’s support for the project since, according to studies, it makes sense only with the $35 million interest-free loan. Without that, other projects, including a plan to replace the handful of aging diesel generators that Copper Valley Electric at times relies on for power, would be just as viable. Only two people voiced support for the project. Bob Hickey, an Anchorage resi- dent, sald he felt it was only fair to help those in Copper Valley lower their elec- tricity bills. But he said he had not looked at the alternatives to the power line. Irwin stressed that the state’s decision was only one part of the process. The line still has several hurdles to clear, includ- ing environmental-impact studies and court challeng:s. The final meeting on the project will be today in Sutton, Irwin said he plans to make his decision by the end of the year, P. U3 DEQ- 6-8b) TUE 11°11 QUALITY SERVICES pate__DEC0.5 1395 Anchorage Daily News Client No. 424A _ Intertie bad choice for Alaskans The proposed Sutton-to-GlennalJen_ in- tertie leaves me dumbfounded. Why should we pay for someone else's elactrici- ty, particularly if Ree Valley’s largest electric consumer is PetroStar Oil Refin- ery in Valdez? We need to solve the problem of expensive electricity rates in the Copper Valley, but the intertie is the wrong answer. ; Chugach Electric Association is propos- ing to pay 80 percent of the cost of the Intertie. Where will CBA get this money? Electric associations are financed by con- sumers, by the people who pay electric bills, I do not buy my electricity from CEA, at least not directly. J arm a resident of Palmer. I send my monthly chack for electricity to Matanuska Electric Assacia- tion. However, MEA buys its electricity from CBA. This increase would be justified if the purpose of the intertie was to help fellow Alaskans who cannot afford to pay higher electricity bills. However, the consumer who bas the most to gain from the intertie {s PetroStar Oll Refinery in Valdez. Uf PetroStar has the most to gain, then why is PetroStar not paying for the intertle? Choosing to put in the intertie is like buying a new truck when all that is needed is a new sparle plug. Instead of wasting our money on an ugly ducking, we need to shop around more. Go to the public hearing this evening in Sutton to voice your opinion, The intertie is not a smart choice. doe Jo, 42g 210 — Cree Howell Palmer P.u4 Dey DEC-11-95 MON 11:39 P, 04 wes aoe (907) 274-1056 —— ae BEC 0 6 1995 Cah | Frontiersman Client No. Qe ml : bat re MRA RL cL NH AN CI OT ALND aN OE MAT -SU tetra anatase th rb Lr Ma TAR Wiad THE MOUTH WONDERS: — els it true that Colony Inn Two, the re- furbished teachers’ boarding house in Palmer, is “the place to go for quality din- ing” in Palmer. And is it true that the new eggnog tarts are being named egglets, noglets, or tartletts? «Is it true that Valley News’ question, “Should America send troupes (sic) to Basnia? (sic) was met with many negative responses from Valley residents, includ- ing a thoughtful, “No, we might die; it sucks!” «Is it true that the Republican Fund- raiser at the Fairview in Palmer had an excellent turn-out to celebrate the success- ful first year of the Valley Republican’s regime? Is it true that after months of delay, Sutton finally had an open house at its brand new post office? els it true that Moose are safer this year and the kill-count on nine and by- ways is 36 less than where it was last year? «It is true that there were no local nora- inations for the “Most Boring Celebrity of the Year,” sponsored by “The Boring In- stitute,” located in New Jersey? Qualifica- tions for this award were over-exposure and tedium. els it true that at this week's INTERTIE public meetings, the vocal majority was clearly opposed: to the project, again and again DEC- 6-95 WED 10:33 QUALITY SERVICES Da te DEC 06 1995 Anchorage Daily News Client No. Y2erq Intertle a good investinent I read the editorial (Nov. 15), “last gasp? Governor has good grounds to kill Sutton-Glennallen power line.” I have read the ‘Facility Study Update by CH2M Hill” and offer these comments: The 1995 CH2M Hill Sutton-Glennallen intertle study is a technically balanced evaluation that shows a benefit/cost ratio of 1,14 for the medium-high load/high fuel cost escalation, It would be difficult for the lay person to rationalize the alterna- tives in this report to justify any other alternative. The sensitivity analysis does not factor in the contingency value of the tie line for loss of generation in Valdez in the event of a power plant fire or earth- quake damage. & The added load for the TAGS and HAARP ‘projects are acknowledged as “possibilities”; the Allison Lake hydro presently spills water in the summer and could be operated as a base load plant; Alyeska would be able to run their facility on one generator (presently run- ning two 12.5-Mw units at all times fot a nina-Mw load); the old Valdez diesel plant could be put on standby status to provide backup power for intertle line mainte- nance; a tie line would stiffen area grids for power security and spinoffs avallable for future area development. Last but not least, the Susitna hydro- electric project, previously reported feasi- ble by the APA Department of Energy in 1979, with a capacity of 778 Mw in phase one, would be the backbone for the central Alaska power source. The energy saved by this renewable resource would be 1.6 billion barrels of oil and/or 100 billion cubic fect of gas ‘for the 10-year project life, A good investment for the future of Alaska now with the oil/gas sale federal restrictions removed. I hope that this analysis will help Gov. Knowles approve the intertie, Joe 29% Y2oFt 24077) — Henry P. Lang, P.E. P, 02 a DEC-18-95 MON 11:37 (907) 274-1056 Date DEC 0 8 1995 Frontiersman Client No 4204 Crowd Bor Joe ase By LAURA MITCHELL HARRIS Frontiersman reporter SUTTON — Their reasons, ranged from aesthetics and eco- nomics to health and safety, but their purpose was the same. They wanted to stop the intertie. ore than 130 people crowd- ed into the Sutton Community, , Center Tuesday night to give their input to the man who could | decide the fate of the construc- tion of the Copper Valley Inter- . tie, a transmission Jine from Sut-_. ton to Glennallen. The standing- room-only meeting was attend- ed almost exclusively by the pro- ject’s opponents, many of whom felt their interests were being overlooked by a system of cor- orate big business and politics. Bat some of the people who Iead the opposition say they think their concerns were heard and hope they will be given serioys consideration, Mike Irwin, the commissioner of the state’s Department of Community and Regional Af- fairs, led the discussion at the hearing. He is a member of a working group organized by protests intertie Gov. Tony Knowles to look into the current feasibility of the in- terlie project and has been desig- nated to make the final recom- mendation on the project to the governor. ‘The proposal would loop the Copper River basin into the Rail- belt power line system that links cities fram Homer to Fairbanks, In 1993, the state Legislature ap- roved a 50-year, zero-interest 35 million loan for the intertie construction, pending a feasibili- ty stualy, in the hopes of provid- Sco INTERTIE, Page A14 INTERTIE: Residents voice concerns Sem Job aioe Continued from Front Page ing relief to Copper Valley Elec- trie Association members who pay some of the stale’s highest electric rates, An engineering firm recently concluded that the pokes is fea- sible in a review of a feasibility study based on the cost of alter- natives and the impact on CVEA’s rates, At Tuesday’s meeting, some: one in the audience asked for a show of hands on those who support the intertie. Several brave proponents raised their hands including representatives from CVEA who attended the meeting, A wave of arms shot up when those opposed were asked to respond. Tempers flared early on as Ir- win tried to explain to the audi- ence why the public hearing was nol being taped or transcribed an any offic) Soo This is ridiculous,” yelled Chickaloon resident Charles Lone Wolf. “How are we going to get what we need to get across if there’s no official record?” Irwin said he made the deci- sion not to record the four public hearings on the intertie because it wouldn't allow for the kind of ive and take he wanted to see ostered at the hearing. He added those interested also had ithe opportunity to make a writ+ _ ten comment and submit them to his office. Several speakers told Irwin the socio-economic factors impact- ing the Valley need to consid- ered. Sutton resident Michelle Schuman gave an statement on the beauty of the Matanuska Val- ley, as one of the few locales that remains a pute, pristine valley. “The reason those values haven’t been studied is because they are priceless,” she said. But these values are quantifiable and need to be considered, she said. Several speakers brought up the idea that Copper Valley resi- dents knew when they moved into that area the electricity was high-priced. This is one of the prices they paid for living ina re mote region, Impacts to tourism, land values, even photography, are just a few of the olher issues brought up at the hearing, Chris Rose, a co-founder of Alaska Citizens for Responsible Energy Development (ACRED), spoke last, promisin those who oppose the intertie will not toler- ate its construction. “We'll either kill it now or we're going to kill it later,” Rose said. “But we're not going away. This is not going to be built in the Valley.” When someone asked Irwin akout what happens from here, he said nothing is etched in stone at this point. This was a shift from Monday night’s hearing in Anchorage where Irwin told the publte the decision would be made by the end of December. But after hearing the public’s re- sponse and after a meeting with the governor and representatives from the Alaska Center for the Environment and ACRED on Tuesday, Lrwin said his next step may be an evaluative process to look at the feasibility study and make sure he’s comfortable with ‘the standards used, P. 04 Feal| DEU- 6-99 FRI llo QUALITY SERVICES Date__ DEC 08 1995 Anchorage Daily News Client No. 42¢4 Intertie will ralse local rates As a Chugach Electric ratepayer, I am concerned .that the Chugach board is obligating me, through my, monthly elec- tric bill,” to subsidize construction’ of an uneconomical power line from Sutton to Glennallen. ; Power demand in the Glennallen and Valdez areas can be met with more eco- nomical and environmentally sound alter- natives. Yet, those few IBEW jobs that would be created by this construction pork barrel have unduly influenced the latest. economic report on power line feasibility. ; That report says the power line is feasible, if Chugach Electric subsidizes rates paid by consumers in Glennallen and Valdez. Chugach ratepayers will be paying extra to cover the subsidy for a period of 10 years! I urge Chugach ratepayers to contact Chugach Electric general manager Gene Bjornstad and express your outrage about higher olectric bills for a power line that only benefits a few IBEW construction jobs and a handful] of users at the end of the Glenn Highway. , — Colleen Burgh P. Ud DEC-11-95 MON 11:42 QUALITY SERVICES pate__DEC 1 0 1995 Anchorage Daily News Client No. ‘1 teA4 We like Alaska wild My faith in the sensibility of Alaskans has been restored. The other night about 300 people and one braying donkey braved 23-bclow weather to come to the Sutton Community Center and voice their opposition to the Glennallen intertie. Here was grass-roots Alaska, our friends and neighbors in the Matanuska Valley, standing in unison for preserva- tion of our way of life and the unmarred beauty of the valley, People, were compas- sionate with the needs of Alaskans in the Copper River Valley to have cheapur electric rates. However, everyone belleved there were much more feasible alterna- tives to provide the reglon with less expensive electricity. One hundred thirty-five miles of 80-foot transmission towers straddling an 80-fost swath carved through the forest was viewed as a sacrilege to the beautiful land where we live. The Chugach and Talkeet- na mountains represent some of the finest scenery in the state. Nobody relished the idea of forever destroying magnificent views of these mountains with towering transmission lnes, It is my hope that the governor’s office will be as sensible as Alaskans at the Sutton meeting and stop this Glennallen intertie boondoggle. Politicians and busi- ness interests in this state seem intent on blindly pushing development without con- sidering aesthetic losses. It is time to start listening to the people of Alaska. The reason we live here is that we like Alaska wild, 302 at0o6 aE Y204 — Fred Hirschmann Wasilla P, 09 DEC-11-95 MON 11:41 QUALITY SERVICES pate_DEC 1 0 1995 Anchorage Daily News Client No,_7 244 People want intertie alternative I want to set the record straight. I was at the governor's Anchorage hearing on the Glennallen-Sutton infertle, and, con- trary to the Daily News’ head count of 100 people, I counted well over 200. The room of the Holiday Inn was so packed with people opposed to the inter- tie, they crammed sides and back of the room, and spilled out into the hallway. The Alaska Center for the Environroent’s reception room across the hall was also jammed with people writing letters to the editor and picking up Mterature. Clearly, Department of Community and Regional Affairs Commissioner Milce Ir- win didn't know what hit him. The zeae péople gave him was loud and clear: The governor has falled to include environmental considerations and alterna- tive projects in his decision-making pro- cess. And: citizens emphatically said the governor needs to stop this boondoggle and champion an alternative. Just as Anchorage residents oppose the intertie, so do Valley residents The Mat-Su Borough Assembly and Planning Commission, all local community coun- cils, the National Outdoor Leadership School, and the Alaska Wilderness Recre- ation and Tourism Association all ardent- ly oppose this project. The buck now stops with Tony Knowles. His rhetoric aside, the decision he makes will truly decide what kind of legacy he leaves for Alaska. We hunger for leadership. _ foe sol 219F 4794 __ Tony Edwards P. 08 DEC-12-95 TUE 11:08 QUALITY SERVICES nate DEC 12 1995 Anchorage Daily News Client No. 4Y2¢e¢4_ Intertie the best bet for energy Since the Legislature granted Copper Valley Electric Association a $35 million, no-interest loan to build the Sutton-to- Glennallen intertle, the project has been working its way through an extraordl- nary process of studies and reviews. ‘The latest review by CH2M Hill, at the direction of the governor, has just been released and favors the intertle as the project of preference. Only all-diesel gen- eration comes close to meeting our inime- diate needs and it is, environmentally, the least desirable. We will quickly outgrow diesel benefits .as the area grows and the een Elias National Park is davel- oped. P with little argument left in their arse- nal, the loyal opposition is left with visual impact arguments. This on a tle- line that may travel across state land, well out of view of almost every person traveling through the Mat-Su valley ... and this from a group of users who take ‘electrical energy from an intertie within sight of thousands of travelers as they drive the Glenn Highway every day. Go figure! The dog-and-pony show put on for Commissioner Irwin in Anchorage and Sutton by attorney Chris Rose and his little band of happy warriors was an embarrassment to me and certainly put be commissioner in a compromising posi- tion. It is, in fact, his charge to determine if the intertie is economically feasible. It is the charge of the environmental impact statement review to determine if the project is environmentally sound and of the courts to determine if it is legal. ' Let-us moye on, commissioner: ‘The naysayers can present their challénges in the correct forum before the EIS: review committee and the courts. We can start building our communities with economi- tal energy delivery to east Alaska. ; - . = I, Alan LeMaster, president Gakona Junction Village Inc. P, 02 — Qsa== =¢ (907) 274-1056 SX Dae DEC 18 1995 Valdez s Client No. Ad ‘Not in my backyard’ they tell the State... : Sutton Folks Blast Powerline Project ! by Roni Kelley Special To The Star 420A 20E 302 SUTTON—Inatumultu- ous public hearing on the controversial Sutton-to- Glennallen transmission power line, not a single per- son rose from the audience of 125 to speak in favor of the project. The Sutton hearing last Tuesday night was the final and most vocal of four hear- ings on whether the powerline should be con- structed to serve Copper Val- ley Electric consumers. The 138-KYV line, expected to cost some $55 million, is designed to bring cheap An- chorage power to Glennallen and Valdez. Residents of Sutton and Chickaloon say it will be a blight on the rural landscape and generally oppose theline. Speaker after speaker rose to condemn the project. Presiding over the hearing was Mike Irwin, the Com- missioner of the Department of Community & Regional Affairs. Power Costs, Environmental Costs Fuel Powerline Debate 4¥207 2ADE BOB Continued from Page 1 Irwin will make a final rec- ommendation on the contro- versial powerline sometime before the end of the year. From the start, Sutton and Chickaloon residents were incensed and confrontational with some speakers objecting to the absence of an official record. — “This is ridiculous, how are. we going to get across what we need to if there’s no offi- cial record. I’ve been a re- gional planner all over and I’ve never seen a meeting con- ducted like this,” yelled © Charles Wolf, a Chickaloon resident. “What about socio-eco- nomic loss?” asked Chuck Spaulding of Nova Riverrunners. : “We can cut it down as fast as they can putitup,” shouted Tom Schill of Sutton. “Whatare they going to do about security, considering how the community feels?” asked David Harrison of Chickaloon. “How do you plan to go across our land when our village is in total opposition?” Harrison’s next question took the audience by sur- prise. “Why has HAARP been down-played,” a refer- ence to the military space probe device near Gulkana. Most of the audience had no idea what HAARP is or what role, if any, it plays in the intertie project. _ As the meeting progressed, calmer voices were raised af- ter Irwin said “the die is not cast” on the powedline project. - That prompted Bisey ‘McGill of the Alaska Center for the Environmental to ob- serve, “it seems Mr. Irwin has changed his point of view since the night before” at a similar hearing in Anchor- age. Several speakers wanted to know why the issue could not be put on the ballot. Charles Wansor, an elec- trician, said the intertie was not a correct description of the power line. It’s a trans- mission only since it cannot backfeed power,” he said. In evidence at the meeting © were a series of protest signs: “Stop the Tony Knowles In- tertie,” and “No Intertire, Better Alternatives Exist.” The better alternatives were echoed throughout the meet- ing. Jenny Bear, Don Wallace and several other suggested a reservoir at Allison Lake or a Silver Lake hydro plant as more acceptable alternatives to meeting the power needs of Copper Valley. “We're not here to deny power to Glennallen they have power, we just don't want to have them get a free ride on our backs,” said Herb Fay. - Many cited the love of the . land in their opposition to the transmission line. “The spiritofthe land does not want this intertie,: said Jim Paulker. “The Mantanuska Valley is one of the few places in the world that remains pure and pristine,” said Michelle Schuman of Sutton. “You (Mr. Irwin) are asking us to give up our sense of free- dom.” Some felt the project was being shoved down their throats. “This has been an elitist project from the state that spits in the face of the common people,” said Dave Van Cleeve of Chickaloon. “Subversion of the politi- cal process has been the order of the day,” he added. Jim Egger, representing Alaska Sky Sailors, a group of para-hang gliders, said his group is “concerned from a recreation viewpoint that 80- foot high electrical transmis- sion towers would not be safe.” _ State Representative Scott Ogan spoke briefly at the meeting but ended with a statement embraced by the audience. “I hope there is a legislative solution to the need for more power for Glennallen and that the most cost efficient project can’be utilized.” : DEC-18-95 MON 11:38 tame sameness Quolity Services ares (907) 274-1056 Date VEC 4 3 Es Fronticrsman Client No__ ¥244 iv ib MUU Strw no longer wilh seas slress. Go to any one of the many school holiday concerts and receive an immediate infusion of holiday spirit. Start humming. ACES IN "LIGHTSCAPING” Dorwin of DJ Develop- ment on the P/W Efigh- way deserves a “Fight the Gloom” Award. Tt has over 50 oulside wired lights—year-round and that is not counting all the great Christmas lights. Dorwin says, “I have zero vandalisin and the little clectric cost charge is worth it, It is safer and we can sce in these dark limes!!” CALL TOR WOMEN TO “RULE THE WORLD” — Marion Romano, SBDC director, recently jumped out of an nirplane and it changed her entire life. Marion was so thrilled that she is making a call for 50 VALLEY WOMEN to empower themselves joining her fora great jump this summer, If you want to become a “fallen woman” too, give Marion a call, WE MADE THE "PLANET DIARY" — Ycp, Alaska is famous for the snow drought and we're on the list for recognized worldwide plienomenons, ANIMAL GOSS}P — Trim a tree for the birds — wlth ears of corn, popcorn and peanut strings, and some orange slices covered with peanut butler and seeds. “DEAR MS. MOUTH...! nced help finding a Valley place — both wonderful and nol preca- tory for my Saturday night CE Goto “Joann and Monle” at Vagabond Blues — no smoking and great music, Saturday from 8- 10:30. ; COLONY CHRISTMAS PARADE — Palmer was cooking on Saturday for the win- ter festival. Furred and snowsulled elves ca- vorted amongst the snowplows and big trucks with catalytic heaters in the wagon. Several Santas were seen, scatlered betwuen blankolad ilamag and hardy Boy Scouts with a wheeled dog. sled, The brave yet frozen Farm Loop Singers were accompanied by the Tom Williams Rein- deer Group, adorned in bright red harnesses. And there was Frank Iolt on a bicycle in his skin tight pants and a Blood Bank Drop dri- ving an entry. Gorgeous horses — breathing out steam — preceded the winning Palmer High Football Team. QUEEN OF THE “RED SNOWCHELKS” AWARD — goes to Debbie Rutherford, Palmer’s NBA cheerleader. She was an ani- mated player in the Palmer parade, happil oaniied precious snow (collected at Hatcher Pass) and tossing it about ... from her pickup truck. Her glowing red cheeks were Haturally done by Mother Nature. TODAY ~~ is the Mexico’s.Feast of “Our Lady of Solitude” whore pilgtims venerate the patron of the lonely. It is also Santo Lucia Day. eb ane dae Aly MOUTHY TIDINGS ~-- Along with the de- licious offerings of buttery Christmas cookies we have ait incidental celebration of the his- toric Battle of the Bulge. The Ilo Lo Ho Hot- line is in full gear as is Noel Night. THIS WEEK — Chanukah’s Feast of Lights ‘oes from the 18th to the 25th. We ean cele- rate International Langiege Week aid In- ternational Shareware Day—-where we should propaly pay Shareware Authors. And finally this is the anniversary of the fa- mous Aztec Calendar Stone Discnverv — a te tre re areereetntnertmeeniniit P, Ub 62 RENN TTT iphly developed calen- MIACT—° J dar monument to the sun. r NOT ANIMAL GOSSIP — Thursday is UNDERDOG DAY, where all #2 people are saluted, before ycar's end, Mp, hip for our Val- ley unsung heros. Stl “MAN WILL NEV- ER FLY” SOCIETY — Is celebrated annually on Dec. L6 — the night be- (ore the anniversary of the Wright Brother's first flight. The motto of this North Carolinian group is, “Birds fly, Men drink.” KAT WHAT YOU WANT ON SATURDAY — because this is the national day to ignore nulrilional warnings, or so says the Wellness Permission League. REMEMBER THE LOVED ONES — and help Hospice of Mat Su decorate a tree with lights and stars. People who have touched our lives will be honored 9 a.m. Saturday at the Collonwood Creck Mall. Hospice is 4 gentle organization that provides the physical, emo- tional, and spiritual Suppor for terminally ill atients and Lhelr families — s0 that they may five their lives In comfort dignity and peace. There will be a ceading of the names of loved ones at the lighting ceremony. INTERTIE NEWS — The meetings last wuck showed force from all age groups and all affiliations in opposition to the proposed inter- tie project. And the message was clear: this In- tertie deal was Wally’s (Hickle) and Ramona’s (Barnes)? If it flies, it will be recognized as a Tony (Knowles) deal. An alert businessman asked, “Is this really the legacy Tony wants?” THE MOUTH WONDERS «Is it true that complaints came in about Palmer fireworks because they were noisy? *Is it true that in -20 degree weather, our ki- dos are bravely fellowing fire drill rules? And is it true that the fire drills are deliberate to test sprinkler capability in cold weather? +1s it true that when a basketball backboard was broken, it took nearly 20 school adminis- tratora to repair it? «Is it true that Lincla Olson became “one with her sewing machine” in her dedicated preparation of “Gypsy” costumes? «Is it true that the Snowbirds of Wasilla are known affection. ily as IDIT-A-CHICKS? «ts it true thar somelime between Monday ) night's Intertie mecting and Tuesday night's mecting, the stace administrators changed thelr tune remarkably? eels-it trae thal the Lake Louisers‘divoree i> fromthe Mat Sv Boroughs onlyrguarantecd if. a simultaneous octrothal happens with anoth- er spouse?: ° - i ree almer was so crowded on olony Christmas, that a ‘as nearly impossible to find? oJs it true that FP. Saturday, dun parking place Soon-torbesin ‘anions borough scribe Barbara Hunt puts wore, in The Moh every Wednesday. If you have questions, tips or suggestions, please fax them to her aftention at the Frontiersman at 352-2277, or you can mail them or drop them of at 1261 Seward Meridian, Wasilla, AK 99654, Confi- dentiality will be respected. Accuracy requived and cond tach venturstod HI QUALITY SERVICES Anchorage Daily News Client No._%204 Projects raise cost concerns The fuss over big-brother-government offering $35 million for a Copper Valley intertie is surprising. We’ve forgotten the fact that the Legislature also authorized $90 million for the north and south inter- ties ... but this has not created a ripple of public interest. What is it that sepa- rates the Copper Valley project from the other two? The truth is there is very little difference in the projects. At this early design stage, environmen- tal impacts are not identified. But all, three projects should generate cost con- cerns. The state is funding only a portion of the $200 million needed for these projects. What the unfunded portion will do to everyone’s monthly utility bill should raise questions about project.eco- nomic viability. } One of the big expenses results from a little-known ‘1990 Memorandum of Un- derstanding” signed by the IBEW ‘and most of the electrical utilities. This MOU stipulates construction will be accom- plished by IBEW contractors only, which is a fine deal for everyone except the utility ratepayers and other Alaskans who would like to bid on these interties. The MOU ‘will severely limit competi- tion, thereby driving up project cost. Evaluation of similar projects indicates the cost increase will likely be more than 15 percent, which will add $30 million to’ the three projects. | Such an increase is more than enough | to bring the viability of these projects into serious question. Yet, in the Decem- ber 1995 ‘“‘Economic Evaluation’’ complet- ed by Commissioner Mike Irwin, Depart- ment of Community and Regional Affairs, this factor was totally ignored. I guess a $30 million project cost in- crease does not mean much to Irwin’s, department. Perhaps that’s why Alaska has budget problems. °?27 337 oz 306 “Yao0n 20 6333 = Ed Granger Q Quality Services (907) 274-1056 Date DEC 14 1095 COPPER RIVER Cc JO Client No. 420A DCRA Holds Meeting Here On Intertie Jona Boe AWE J20A GLENNALLEN-Mike Irwin, the Commis- sioner of the Department of Community & Regional Affairs (DCRA), visited four com- munities to discuss the latest study of the proposed transmission line between Glen- nallen and Sutton. THE MEETING was divided into three parts: a presentation by the Commissioner and a CH2M Hill representative; a question period, and a section for informal testimony from the public. The Commissioner explained that a "working group" appointed by the Governor had said he should approve the project after reviewing the latest study. He indicated that his approval - if he gives it - will be conditional, and he listed at least four conditions that had to be met before the $35 million no-interest loan money would be released. One of those conditions that he mentioned was that the project be jointly undertaken by Chugach Electric and CVEA. The testimony in Glennallen was, in general, supportive of the project, although plenty of Sutton and Chickaloon representatives showed up to pro- test - and several Copper River residents were cautious about the project. The Commissioner went on to hold meetings in Anchorage and Sutton, which were packed with people against the project. The Commissioner said he would decide what to do before the end of December. PEOPLE FROM the Copper River Valley came to testify at the Caribou Cafe during hearings on the Sutton-to-Glennallen In- tertie. Q Quality Services (907) 274-1056 Dare DEC 14 1995 COPPER RIVER —COUNTRY JOURNAL __ Client No. 420A Dear Country Journal, Thanks to Copper Valley Electric Association's * Board of Directors, staff and management, the Sutton- Glennallen Intertie lives! One might say that it is hanging on and in intensive care, but it lives. Last week, Commissioner Mike Irwin of the DCRA held public meetings to hear comment from those that would be affected. I had the opportunity to attend the meetings in Valdez, Glennallen and Anchorage. As expected, the first two meetings were positive and 50 to 75 people that took the time to go, spoke in favor of the Intertie, and did so quite eloquently. The meeting in Anchorage was attended by over 200 of the 100,000 plus rate payers in the Chugach Electric Association service area. These were 200 sign- carrying, well-organized, pre-programmed, passionate objectors, controlled by the left wing leadership of attorney Chris Rose and Robin McClean. They too, spoke eloquently but all were dead set against the project. I am concerned that our community has not taken a position that will convince the Commissioner that Se | we are as passionate about building this project as the opposition is against it. Commissioner Irwin has promised us that he will make his decision by the end of December. This gives us one last chance to voice our opinions through the mail. I encourage each and every rate payer in Glen- nallen and Valdez to call, fax or write a letter to the Commissioner and let him know we not only need the project, it is the key to the future growth of our businesses and families as well as that of the development of east- Alaska. Ask for him to approve the Intertie once and for all and allow this vital project to proceed to the next level. You can reach the Commissioner at DCRA, P.O. Box 112100, Juneau, AK 99811-2100, Attn: Honorable Mike Irwin, Phone 465-4700, fax 465-2948. 3o2 Sol 219K 4204 Alan LeMaster Gakona DEC-15-95 FRI 10:43 QUALITY SERVICES pate DEC 15 RS Anchorage Daily News Client No. 420A A few problems with intertie Now that the Sutton-Glenallen intertie issue has resurfaced, I think it is impor- tant to address other aspects of this project that might help the governor make a decision, I still remember the original feasibility study completed by K.W. Beck that left a number of unanswered questions, like why other alternatives weren't studied more thoroughly, projected power de- mands by Copper Valley, real costs of construction, undisclosed costs to Mata- nuska Electric Association and Chugach Electric Association members, land acqui- sition, litigation problems, environmental impact, etc. I also remember how the ex-chairman of the House Finance Com- mittee, Ramona Barnes, ramrodded this bill through the Legislature. : Now we have Chugach Electric trying to dissuade PetroStar from generating its own power (with the possibility of their surplus power in turn being sold back to Copper Valley Electric Association), a new feasibllity review based on 4 previ- ous deficient study and the IBEW who have contributed generously to the Tony Knowles election campaign trying to bul- ly him into unnecessary but very profit- able business for them, You can’t criticize PetroStar, they're med another business shooting for the owest costs, or IBEW and Gary Brooks, they understandably want to create more work for their union members. You can’t even condemn CEA or CVEA. When there is $35 million interest-free and $20 million in bonds at stake you can expect a few hands. out there grabbing for dough. But you can put the responsibility on our governor, Tony Knowles, and Commis- sioner Mike Irwin. It's their job to make wise and responsible decisions. Jor Aol 2e 4204 337. Mark Bertels Sutton DEC-18-95 MON 11:36 QUALITY SERVICES pate__DEC 17 1995 Anchorage Daily News Client No. Yueq Subsidizing Copper Valley I attended public hearings in Anchorage and Sutton for the Sutton-to-Glennallen high-power transmission line project. As a'way to move this project through, the people of Copper Center Valley were told they will get cheaper electrical rates. Currently, Copper Valley Electrical Asso- ciation members pay around 18 cents per kilowatt hour. In the Matanuska Valley, 10 cents per kw hour. However, that is not the whole story. I asked the Greater Copper Valley Chamber of Commerce a few questions: Q: “If I moved to Glennallen, how much would my property tax be?’’ A: “Well, you would pay nothing: there is no property tax in Copper Valley." Q: ‘'Do you have schools?” A: ‘‘Yes, of couyse.” Q: “Do you have roads?” A: “Of course we do." Q: “Do you have a hospital?” A: “Yes, -a health clinic.’ Q: “You have schools, roads and road maintenance, but no taxes at all? How do you pay for this?” A: “The state of Alaska pays for all of it.” My response was, ‘Sounds like a great deal to me.’’? The Chamber of Commerce employee responded, ‘Sure is!”* Where I live, the mill rate is 18 percent. Over 13 percent goes to schools in the Valley. My property tax is over $1,300. On a "cost-per-kw-hour” basis, I actually pay over 28 cents per kw hour. Not only are people in Anchorage and the Mat-Su asked to subsidize power for the people of Copper Valicy, 2,300 people, and Petro Star once, but we are asked to subsidize two times overt As an MEA consumer, I am asked to pay more for power so CVEA members and Petro Star can pay less, and I pay for thoir schools, road maintenance: and health care! aor 20L 4204 -—- Michelle Schuman POE Sutton QUALITY SERVICES Date DEC 18 8H Anchorage Daily News The Anchorage Times ae Publisher: BILL J. pli * wBelieving in Alaskans, putting Alaska first” Edijlars: DENNIS FRADLEY, PAUL JENKINS, WILLIAM §. TOBIN The Anco Tires Coramentary in this segment cf the Anchorage Daily News does nat cepresent the views of the Daily Nesrs, It is veritien and published under an Seeaceat yeith Gooner owners of The Tiznes. in the interests of preserving a diversity of viewpoinls in the community. Intertie investment Bor Zeb 204 23& HE MAJORITY, if not all, of the 90 people who testified at the Anchorage hearing on the proposed power line extension from Sutton to Glennailen rely on law-cost electricity to light their homes. It's unlikely they lie awake at night worrying abeut the aes- thetics of the power lines that deliver electricity to their home or place of work. Ah, but the proposal to deliver similar power to the residents of Glennallen and Copper Valley, who now are forced to pay an addi- tional 50 percent or more for power than do residents of Anchorage — that's a different matter. Who wants to see ugly power poles along the road or off in the distance on a drive up the Glenn Highway? How unneighborly and embarrassing that some Southcentral res- idents would take such a selfish stand. The commissioner of Regional Affairs, Mike Irwin, is responsible for making the final recommendation on the proposed no-interest $35 million state loan to finance construction of the intertie. - There's only one question he needs to answer: Is the project a good business investment? That question was answered last month in an update of a 1994 feasibility study ordered by Gov. Tony Knowles. The economic analysis, coordinated by the Alaska Indus- trial Development and Export Authority, again confirmed that the Glennalfen intertie is the most. cost-effective means of supplying low- cost power to the region — provided that a number of conditions are met. Among them: * The Petro Star refinery in Valdez, or another major user, must contract for a long-term purchase of power. « The parent companies of Petro Star should co-sign the loan. * Chugach Electric and Copper Valley Electric associations must formalize a jcint participation agreement. ¢ The utilities must repay the state loan in full even ifthe project. is never completed. * All environmental and financial permits must be secured and paid for by the utilities before state lean money is released. In other words, the economic risks fall on the utilities and private companies involved, not on the state. Board members and corporate officers must make hard business decisions before any state money is handed over. The utilities must convince rate payers that the pro- ject is in their best interest in the long run. The Public Utilities Commission and a plethora of state and fed- eral regulatory agencies will ensure financial, environmental, safety and aesthetic concerns are addressed satisfactorily. Not only should this particular loan be approved, but the proce- dures followed and the conditions stipulated should become a model for deciding future capital investments of the state. Solid business decisions are crete to the “build it, amegt come” philosophy of years gone by. IT NOW S6-81-94d 9€ c0 ‘d DEC-19-95 TUE 10:38 QUALITY SERVICES pate DEC 19 1995 Anchorage Daily News Client No. Y2ze74 Intertie not worih the price It makes little dollars or sense to build the Copper Valley intertie. When and where has there ever been a $60 million intertie built to save 2,300 people a few dollars per year on electric costs? Well sure, the Petro Star oil refinery in Valdez would be happy, but many people feel it’s bogus for ratepayers across, Southcentral Alaska to subsidize this oil company by increasing electric bills. Petro Star has committed to purchasing only 10 years’ worth of electricity from the intertie, but for the deal to even break even monetarily, the oil refinery would have to buy 25 years’ worth of juice to power its operation, The 15-year: deficit would, of course, be passed onto ratepay- ers. Another sour point is the issue of. economic viability. At the public meeting in Anchorage Dec. 4, there was consensus among the public and meeting organizers that environmental and social costs had not been factored into the economie feasi- bility study, The losses to tourism, eco- tourism, peace of mind, health and other concerns must be factored into the eco- nomics of building the intertie. There are better ways to reduce electric costs for Copper Valley ratepayers than to rack up a $60 million statewide expense. Simply replacing the aging Copper Valle diesel generators would drop rates consid- erably. Hydroelectric power is also a viable option. On the issue of aesthetics, which factors right into economics in my understanding, it would be a real shame to see an energy corridor scarring the lovely Matanuska Valley for any reason, especially for all the wrong reasons. BOL 3db SIQk 424A —- Geoff Butler Anchorage P. 02 Q Quuility Services (907) 274-1056 Date _DEC 2 0 1995 2 0 1995 Valdez Star Client No. 4¥20A . etition Aims to Sell Copper Valley Electric Co-Op to Chuchach Electric. by Pat Lynn Editor, The Star 210F 302 420A VALDEZ—AIl seven members of the Valdez city council have signed a peti- tion calling for a vote by Copper Valley Electric con- sumers on whether they want to sell Copper Valley to Chugach Electric. Support of the petition by city leaders is expected to set off a confrontation with the board of directors of the elec- tric co-op. The city council members acted as individuals and their signatures on'the petition did not reflect any official city action. “Tl do it, if that’s what it takes to get cheaper electric rates here,” said Valdez Mayor John Harris as he signed the petition. On Monday night, how- ever, the petition took the form of a city resolution of support which brought ob- jections from Clayton Hurless, the general manager of Copper Valley Electric. The adoption of the reso- lution, Hurless said, would complicate delicate negotia- tions now underway to build the 138-mile transmission line from Sutton to Glennallen, The transmission line is designed to tap into cheaper wholesale rates in the An- chorage bowl, thus resulting in reduced rates for Copper Valley consumers. Hurless urged the city council to meet with the Copper Valley board early in the new year before endors- ing a vote on the subject. In the end, Hurless pre- vailed and the council agreed to defer their resolution. The big gun behind the petition drive is Tom Staudenmaier of Eagle River. He’s been pushing for the past 13 years for the merger or buyouts of electric co-ops in southcentral Alaska. Staudenmaier believes electric co-ops in the state are top heavy with high-sala- ried managers and engage in costly duplication of services, personnel and power sources. He was active in Valdez last week with his petition, focusing mostly on business people. “Only one person turned me down,” he said. The petition calls for the following: 1, Reducing the number of votes from 60 to 50 per- cent for the selling of Cop- per Valley Electric to Chugach. 2. Allowing Copper Val- ley Electricconsumers to vote by mail. 3. A vote on selling the assets of Copper Valley to Chugach. Ifapproved by the consumers, the sale must take place within 180 days. 4. A special membership meeting to approve the three above motions. “T think the time is right for this,” said Staudenmaier. His petition drive comes as Copper Valley Electric is awaiting a state decision on whether a $35 million inter- est free loan will be granted to partly underwrite con- struction of an electric trans- mission line between Sutton and Glennallen. Another $25 million in state bonds would have to be issued to complete the $55 million project. The cost of the transmis- sion line would be split 80/ 20 with Chugach assuming the larger burden. But even if the line is con- structed, it would only lower electric rates by three cents per kilowatt hour in Glennallen and Valdez, ac- cording to Copper Valley manager Clayton Hurless. Valdez residential consum- ers now pay 17 cents perkilo- watt hour, Glennallen resi- dential consumer pay 21 cents —among the highest in the nation. Business and industrial consumers typically pay lower rates, depending on the volume they consume. (907) 274-1056 Date DEC 22 BR_ Frontiersman Client No. YA Intertie makes sense Editor: It is with total amagment to me that there has beer so much outspoken objection t) the con- struction and operaion of an electrical intertie wit] the Cop- per Valley utility at Gennallen. Scenery has been one of the objections. Those in the Valley who are objecting seem to have no problem with the gorgeous view they look at daily consist- ing of junk and wrecked auto- mobiles, etc. Plus muddy rivers! It is no secret the utility interties quickly blend into the surround- ing terrain and thus are not ob- jectional. The objections for this reason seem to be more of an ex- cuse rather than a reason. Economically there is no ques- tion that those on the other end would benefit most for the near future! Perhaps if ey uune were private and locally owne some objection would be valid. However, all the utilities in- volved are area utilities and therefore public owned; the le theré are as entitled as those ere. The bottom line here is electricity will flow in either di- rection. The way the “powers to be” here want to get rid of the natural gases resources located at Cook Inlet, we will soon be looking for cheap energy. Down the line, there is no question that north slope natural gas will be flowing down the pipeline right of way. This means power can be generated there and come to here via the intertie. I think money spent on local Alaskans, and the resources used. for local Alaskans, is much better spent than for Japanese steel. There is no question in this writer’s mind the whole thin makes a lot of sense and should be expedited. Everyone will benefit. Those objecting are be- ing myopic and _not considering the future. The benefits that can be obtained far exceed the costs involved. It is a good investment in the future benefiting those on both ends of the intertie. I urge people to open their eyes! gor So, 210 420A Pete Hahn Big Lake . (907) 274-1056 baWEC 2 2 1995 Frontiersman Client No Y LeA4 Who will intertie '- really serve? Jor 30b AWE YA Editor: ©2272 2577 93% Now that the Sutton-Glen- nallen intertie issue has resur- faced again I think it is impor- tant to address other aspects of this project that might help Gov- ernor Knowles make a decision. I still remember the original ot study completed by R.W. Beck (financed by CVEA) that left a number of unan- swered questions like why other alternatives weren't studied more. thoroughly, projected ower demands by Copper Val- ey, real costs of construction, undisclosed costs to MEA and CEA members, land acquisition, litigation problems, environ- mental impact, etc., etc. ; I also remember how the ex- chairman of the House Finance Committee, Ramona Barnes, ramrodded this bill through the legislature after a “successful” campaign fund-raising party with intertie proponents. And I haven't forgotten how the ex-di- rector of Community and Re- ional Affairs, Edgar Blatchford, uring the Hickel administra- tion approved this boondoggle without ever reading the feasi- bility study or even writing his own letter of approval. Now we have Chugach Elec- tric Association (CEA) trying to dissuade Petro Star from gener- ating its own power (with the possibility of its surplus power in turn aoe sold back to CVEA), a new feasibility: review by CH2M Hill/ AIDEA based on’ a previous deficient study, and the IBEW, which has contributed very generously to the Tony Knowles election campaign, try- ing to bully him into some un- necessary but very profitable business for itself. I guess we need to ask ourselves who the real beneficiaries are of this deal. , You really can’t criticize Petro Star; it’s just another business shooting ibe the lowest costs. Or IBEW and Gary Brooks; they un- derstandably want to create more work for their union mem- bers. You can’t even condemn CEA or CVEA. When there is $35 million interest free and $20 million in bonds at stake yau cap expect afew hands aut thee, grabbing for dough. But you aan put the eh ain Pie our overnor, Tony Knowles and ommissioner Mike Irwin. It’s their job to make wise and re- sponsible decisions; that’s why people elect a governor. In my opinion the issue is not whether this project is feagble. Anybody who has studied the matter can figure that out/The real issue is whether we hive a governor who bows down to special interest group oy pne who represents the people. MarkBertels Sutton DEC-22-95 FRI 11:11 QUALITY SERVICES pate DEC 22 895 Anchorage Daily News Client No, (ua : Find answer.to energy problem. As fi’ member of the’ “little’ and of; happy: warriors” mentioned by Alan ‘Le- Master (letter, Dee. 12), I want to respond to his comments on the intertie. ~ First, contrary to Mr,: LeMaster’s state- ments, Commissioner ‘Irwin must detesx- mine.more ‘thari. the “economic, feasibili- ty” of the power. line before, approves it He must determine that! yfeasi- ble”: Le, that itis a prudent use of'state money and that it is the’ best“ ‘power project available, o far neither has been shown through the current studies. The actual costs of the project to the electric consumers of the Chugach and Matanuska electric associa- tions have never been calculated. The updated costs of alternative projects have not been figured, We expect the Knowles administration to do so. Second, the’ “loyal opposition” to this intertie’ is growing as more people hear about it::Perhaps Mr. LeMaster did’ not listen to all the Sal: informed, intelligent questions posed to the commissioner con- cerning the dubious economics of this project. Perhaps Mr. LeMaster did not hear that few answers were available, | ‘According to the latest study, Copper Valley residents.would, at most, save $130 per year with the ~power line. Is this worth $60 million in agayee 3 state money? Better to let Copper .Valley’s population of 2,300 into the Power Cost Equalization Program or let one of the private rojeet fn ers who wants to build a power project in the region build one. I agree with Mr. LeMaster. Let’s get on with it. Let's find a real solution to the energy problem in the Copper Valley without creating one in the Matanuska Valley, go2 Bel yaad 2108 -— Naney Rertels Sutton P, 02 DEC-22-95 FRI 11:11 QUALITY SERVICES Anchorage Daily News Client No, 720.4 HAARP potentially dangerous Is there anyone in the entire Copper Valley basin, Valdez, Richardson. High~ way, or the entire Southcentral Alaska areas who may have an inkling what is behind the Copper Center-Sutton intertie? Tt is my sincere “prognosis” ‘that ‘the intertie will be very convenient to power HAARP, the High-Frequency Active Au- reral Research Program located at Gak- ona, the heart of the Copper Valley basin, Have you heard about, read or ob- served the weird weather in our northern hemisphere? The record explosion of hur- ricanes in the mid-Atlantic? Thousands of square miles without snow in the Anchor- age-Matanuska region? This is far from normal. When weather Js “‘altered’' in any specific area, it creates a “‘global-domino" effect: overcooling, as well as overheat- ing, which ean and will result in over- whelming “devastation.” At Gakona, the HAARP grid ‘of anten-, nas 1s capable of transmitting more han 4,7 glgawatts (billion watts) of power nto the atmosphere, then reverg ing shortwave radio beams, to penetilata and -posslbly cook any object wherever the ‘bens: are “directed.” The HAARP: project. may: be used to control or ae ly destroy the global weather pattern; cornmunications worldwide can be rendered useless. Mind control? This is all good and fine providing an irreversible: cident does not occur, as even thoge building it do not know the capability of this mega cooker! If there ever was a time to stand up and take action, this is the time. If not, I suggest that every God-fearing Alaskan say a prayer! It is in biblical Revelations that the elements shall melt; is HAARP it? 302 30. 4224 210k ' — Dori Engelstad Wasilla P, 03 DEC-22-96 FRI 11:12 QUALITY SERVICES Date_DEC_2.2.1995 Anchorage Daily News Client No. T2eA Intertle will be scenic blight . I wonder if people realize how much of an adverse impact the Sutton-Glennallen intertie will have on our scenic Matanus- ka Valley? Proposed routes will intersect or follow recognized public-use trails popular with, and heavily- used by, recreationalists — hikers, campers, fishermen, hunters, bicy- clists, snowmachiners and skiers — for more than 30 years. . Let’s name a few trails many of you will know: Purinton Creck Trail, Chicka- loon-Nelchina River Trail System, Boul- der Creek Trail, Alfred Creek Trail, Squaw Creek-Caribou Creck Trail Sys- tem, Crooked Creek Trail and Old Man Creek Trail. ’ Families spending a weckend in the area or at Lake Louise will be observing ‘and passing under high-voltage transmis- sion lines and 80-foot-tall towers en route to their ‘‘real Alaska experience." Alaska has spent perhaps millions of dollars promoting tourism; won't it be enlightening for the relatives and all of those tourists to sce the Last Frontier — its rugged mountains; the Talina, Nel- china and Matanuska glaciers; mouse; caribou; abundant lakes; waterfow! nest- ing areas; acres of profusely blooming wildflowers; and the Sutton-Glennailen intertle as they travel the Glenn Highway between Glennallen and Anchorage. Soir aol 2we 4204 — Zola Nutgrass Eagle River pak P, 04 QUALITY SERVICES pate DEC 2 8 Anchorage Daily News __ Client No. Y2e4 Alaska too grand for intertie The intertie must look beautifully prag- matic on paper, a man-sized ‘‘erector set’”’ marching along on 80-foot legs — above the trees — from Sutton to Glennallen, a trail of gawky steel taking Southcentral electricity east into the Copper River basin. Many have exposed the myriad financial and environmental questions that bedevil this proposed project; I will address the aesthetic and spiritual. Alaska wasn’t built along pragmatic lines; she was molded to a far grander scale. The Matanuska Valley’s fine, rela- tively uncompromised nature — her soul, if you will — enriches the people. You can’t bulldoze a power line the length of her without taking some of this away. From my porch during the past 10 years, I’ve watched wolves chasing Dall sheep, moose, grizzly and black bears and mountain goat. This valley has been lik- ened to a national park for its beauty and plentiful fauna. Yet for me and many others, it’s a home; it’s feral sanctuary; it’s where we grow fruits and vegetables and gather berries; it’s a place to hunt, run, hike and camp — a special place. To live here, edged against wilderness, under the sharp glare of the Chugach and Talkeetna mountains, is to live where you can still feel the Earth’s heart beat, where the ground hasn’t been degraded by hu- man industry and where people still live with the land — not separated from it — but as children, still in awe of it all. Certainly land of this character cries for higher consideration than economics alone can give? I urge Commissioner Irwin and Gov. Knowles to consider the higher ground. Our spirits ride with their important decision. 302 sol 20E 420 — Karl Braendel Chickaloon Kk QUALITY SERVICES pate UEC 2 8 9% Anchorage Daily News Client No._Y2o4 Respect other points of view In response to the letter (Dec. 12) from Alan LeMaster of Gakona: It is precisely his attitude that has polarized the various communities affected by the proposed Sutton-Glennallen intertie against one an- other. Here we are in the Sutton and Chickaloon area trying to come up with alternatives to what we see as a less than positive option (the intertie), and he refers to us as ‘“‘naysayers” and refers to our efforts as a ‘“‘dog-and-pony show.” The fact is that almost 100 percent of the people along the Sutton-Chickaloon- Sheep Mountain area are opposed to the intertie, and we did not go to the meeting to put on a show for Commissioner Irwin. Rather, we went to present our challenge in the proper forum, as Mr. LeMaster suggests. The intertie offers those of us who live along the Glenn Highway nothing but environmental, social and economic nega- tives, and I’m sorry Mr. LeMaster is embarrassed by our attempts to preserve our way of life. His lack of respect for our needs and opinions will prompt us to be even more steadfast in trying to stop the intertie. We were trying to offer alterna- tives, but as he seems only interested in insulting us, why should we bother wor- rying about their needs? Everybody in the Chugach Electric and Matanuska Electric service areas should be aware that it is your rate increases that are in part going to pay for this project. Let your utilities’ boards and legislators know what you think about it. Jer B26 Yreq 2196 — Jack Niggemyer Sutton QUALITY SERVICES pate DEC 2 8 19% Anchorage Daily News Client No._Yr0A4 Save us from Jorsol Y28A Dice By CHRIS ROSE The state of Alaska is now on the verge of wast- ing the last $35 million left over from the Susitna Dam fiasco on another proposed boondoggle — the Sutton-Glennallen in- tertie. The latest state study states the intertie is ‘‘fea- sible’? only if Chugach Electric Association (CEA) customers’ rates are raised to pay for 80 percent of the powerline and Petro Star oil refinery in Valdez continues to buy power from Copper Valley for the next 25 years, instead of generating its own pow- er. The study also demon- strates that the powerline won’t do what it is sup- posedly being built to do, that is, give some signifi- cant relief to the 2,300 residential customers in the Copper Valley who pay high electric bills. In- fat, the most probable scenario is that Copper Valley residents might pay 1.1 cents/kilowatt hour less than they would if Copper Valley Electrical Association (CVEA) sim- ply employed new, more efficient diesel generators. Finally, all the numbers that justify the intertie are based on a $53 million price tag that underesti- mates the project’s costs by at least $15 million and skews any finding of ‘‘fea- sibility.” If the intertie won’t re- ally benefit Copper Valley consumers, then who will benefit from it? 1 yet another boondoggle 0333 0329 The intertie does not pencil out as a good investment for the state or Copper Valley consumers. The. answer to that question is easy: the elec- trical union and Petro Star oil refinery. It’s commonly known that the International Brotherhood of Electrical Workers (IBEW) has been lobbying Gov. Knowles hard to build the intertie. A great deal of the millions that would be spent on the powerline would go directly to those union members who actu- ally work on the project. The IBEW was a large supporter of Knowles in the last election. Petro Star oil refinery in Valdez would also bene- fit. The firm gets an inter- tie built just for it. In fact, under the conditions put on the intertie in the state’s most recent study, it is essentially up to Pe- tro Star and Chugach Electric Association whether the. intertie is built or not. °* All Petro Star has to do under the state’s current plan is agree to power from Copper Valley Elec- tric for 10 years. (Curious- ly, this 10-year commit- ment falls 15 years short of what the study says is required for the power- line’s ‘‘feasibility.’’) Add this to Chugach Electric Association’s apparent in- tention to pay for 80 per-. cent of the intertie, and the project would move forward. Gov. Knowles’ hands are not tied on this deci- sion. Indeed, it is exactly for this type of decision that we have elected someone with strong and creative leadership skills. The intertie does not pencil out as a good in- vestment for the state or Copper Valley consumers. It is the Knowles adminis- tration’s responsibility to work with all interested parties to advocate for al- ternatives that are more likely to meet the needs of CVEA customers and that do not shift the financial burden onto other Alas- kans. For instance, the Silver Lake hydro alternative near Valdez could be built by private industry with no state subsidy whatso- ever. Gov. Knowles should declare that the in- tertie is not the best or most responsible energy project for Copper Valley, and move on to create an atmosphere that allows a more prudent project to be adopted. O Chris Rose of Palmer is chair of Alaska Citizens for Responsible Energy Develop- ment. QUALITY SERVICES pate DEC 2 8 1995 Anchorage Daily News Client No._Yre4 Sil | Project helps forge a healthy economy Bor 4ol 1204 Dic By DONNA TOLLMAN and PAUL ROETMAN The controversy around the Sutton to Glennallen intertie is a classic exam- ple of the struggle be- tween partisan politics and sound economic poli- cy. Yee again, the private moral prejudices of a small, vocal minority are set against sound econom- ic and environmental practice and the legiti- mate needs of ordinary Alaska residents. The Alaska Legislature endorsed the importance of electrical interconnec- tion for the Copper River Valley when it appropriat- ed $35 million for a ‘‘zero”’ interest loan to Copper Valley Electric Associa- tion (CVEA) to partially finance the intertie. This is money that will be paid back. There is very little op- position to the project among CVEA members. Most of the opposition comes from a small group living around Sutton and from the environmental lobby. Designers of the intertie have done everything pos- sible to reassure these folks. No offer of compro- : mise with, the minority has made any difference at all. . The intertie, when com- pleted, will reduce the cost of power for CVEA customers, who pay the highest unsupported rates in Alaska. Lower electrical rates will mean new business development, especially ’ The truth is that the intertie is cheaper than the only other viable alternative, which is local diesel generation. tourism-related develop- ment in the Copper Valley and Prince William Sound. It will be especial- ly beneficial to the An- chorage business commu- nity. Anchorage is the hub for economic activity in Southcentral and growth anywhere in the region promotes development in Anchorage. Here are some items that haven’t gotten much attention in the press. You may have heard that: ¢ The intertie will harm the ‘‘view shed’’ along the Glenn Highway. The truth is that the majority of the tie line will not be visible from the road. There is already a tie line between Glenn- allen and Valdez over Thompson Pass. It travels right by the Worthington Glacier turn-out and view- ing area. One hundred thousand visitors stopped there last summer. The towers are so well de- signed and placed that the tie line attracts little or no attention. eThere are cheaper al- ternatives to the intertie. The truth is that the intertie is cheaper than the only other viable al- ternative, which is local diesel generation. The more growth in the CVEA area, the better the tie line looks. Hydroelectric power ran an extremely poor third and hydro will only supply power six months of the year. eInterties are environ- mentally bad and harmful to residents and wildlife. The truth is small utili- ties are terribly ineffi- cient, a lousy deal for the customer and the environ- ment. The intertie will make efficient use of the available surplus of clean, cheap generating capacity in the Railbelt, without the duplication of new generating capacity in the Copper Valley. Infrastructure, the nuts and bolts of any economy, must be built and main- tained. People need to work. They need electrical power for their homes, businesses, schools and hospitals. A healthy econ- omy provides electric power as cheaply and cleanly as possible. Sup- port the intertie and re- sponsible economic devel- opment. Help your friends and neighbors in the Cop- per River Valley and Prince William Sound. O Donna Tollman is executive director of the Copper Valley Economic Development Coun- cil. Paul Roetman is executive director of the Prince William Sound Economic Development Council. Q Quulity Services (907) 274-1056 Date DEC 29 1995 Frontiersman Client No. Y Le4 LETTERS TO THE EDITOR Intertie banner under siege Editor: As a member of the “little band of happy warriors” men- tioned by ae an LeMaster in a Dec. 12 Ipiter (in the Anchorage Daily News), I would like to re- spond to his comments on the Sutton-Glennallen Intertie. First, contrary to Mr. LeMas- ter’s statements, Commissioner Irwin must determine more that the “economic feasibility” of the owerline before he approves it. He must determine that it is “feasible,” i.e., that it is a pru- dent use of state money and that it is the best power project available. So far neither been shown through the current studies. The actual costs of the project to the electric cuxzsumer of Chugach and Matanuska Electric have never been calcu- lated. The updated costs of al- ternative projects have not been figured. le expect the Knowles ministration to do so. Second, the “loy al opposi- tion” to this intertie is growing as more people hear about it. Perhaps Mir abides did not listen Is all the well-informed, intelligent questions posed to the commissioner concerning the dubious economics of this project. Perhaps Mr. LeMaster did not hear that few answers were available to these ques- tions. According to the latest study, Copper Valley residents would, at most, save $130 per year with the powerline. Is this worth $60 million in scarce state money? Better to let Copper Valley’s population of 2,300 into the Power Cost Equalization Program or let one of the pri- vate developers who want to build a power project in the re- gion build one. I agree with Mr. LeMaster. Let’s get on with it. Let’s find a real solution to the energy prob- lem in the Copper Valley with- out creating one in the Matanuska Valley. Y26R AWE Nan "302 30¢ cy Bertels Sutton = QUALITY SERVICES . pate_DEC 31 BS Anchorage Daily News Client No._¥20A Roadside artisan returns; more Cret epee S02 Bol 4204 28 & Here’s what has happened to some of the people who appeared in this column during the year: fe Don, the guy who was building kayaks alongside Midtown poppe streets last summer, came back. People have seen him in the same places recently. This time, according to reports, pels build- 4 i ing an airplane. : ne Fore about 7 Wh earn im, ear rom < several people. One MIKE DOO was a man who be- friended Don and gave him a ride to Portage to catch the Whittier train. “In some ways, he was extremely ratio- nal,’ the man said. I also heard from a man in Cordova, who said he’d bought one of Don’s kay- aks. “T’'ll tell you one thing, he’s on a religious or spiritual quest,’’ the man said. ‘‘He keeps talking to me about these gateways.” OLA GAN Norsworthy said, “which they wouldn’t have done three moontas ago.” The Cordova police bought him a one-way ticket to Valdez, where I lost him again. Now his wanderings have brought him back to the streets of Anchorage, at least for a while. : Among the disheartening statistics about Mountain View, there’s a new num- ber that could be the first sign of renewal: 14. That’s the number of police officers, paid for by a special federal grant, who have been patrolling the trouble-plagued neighborhood since October. “T’m really surprised at the acceptance in the community,” said Sgt. John Nor- sworthy, who supervises the Mountain View contingent. ‘‘We’re their cops now.” Working from a small blue-and-white house across from Duldida Park, the| special force — all volunteers — hunts| drug dealers and truants, delivérs holiday food baskets, checks on shut-ins and makes traffic stops. The hope is that this community policing will help to counter Mountain View’s poverty, transience and sorry recent history. There are small signs that it’s working. “T see kids playing in the park now,” Robin M ris Rose are stil working on their new house near Sutton| and still hoping the giant electrical line tol Glennallen won't be built. “We are still waiting to hear some kind of decision from the governor,” Rose said last week. The Sutton-Glennallen intertie is one of the cheesiest political deals in recent memory. Knowles inherited it when he became governor but so far seems inclined to go along. “We're trying not to attack the gover- nor,” Rose said, ‘‘but we are trying to put a lot of pressure on him.” Isn’t that kind of a fine line? I asked. “A very fine line,” Rose said, laughing. “Sometimes: I can’t even see it.” en Kemplen has had better luck with government. Money to chop up Fair- view’s broad, straight streets has been included in upcoming road bonds. The idea is to create ‘“‘defensible space,” small areas where the residents know police patrol in Mountain View who is supposed to be there and is not. Kemplen, a Fairview resident, and city planners hope this will reduce the neighborhood’s crime problems. Money for a complete design, $200,000, will be on the spring ballot. “If the citizens of Anchorage vote for the road bond, we’re pretty far along,” Kemplen said. “I'll cross my fingers.” oO Sherry Worthy got what she wanted, too: $226,000 for a Muldoon community center. She also got an award from her community council for her work with young parents and families. “That was really a dynamic thing for e in my life,” Worthy said of the campaign for the community center. These young women were great. (They?) just really went to work and got to see for hemselves how the whole process works.” O Mike Doogan's opinion column appears In the Daily News each Tuesday, Friday and Sunday. His e-mail address Is: mdoogan@pop.adn.com.