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HomeMy WebLinkAboutCopper Valley Economic Development Council 1995ef Y ee Dir | COPPER VALLEY ECONOMIC DEVELOPMENT COUNC 7 ine » Yess b Sl P.O. Box 9 cegp Glennallen, Alaska 99588 - 1 September 19, 1995 seca fen | ) Alaska Industri! Development and Export Authority Mr. Riley Snell Alaska Industrial Development and Export Authority 480 W. Tudor Rd Anchorage, AK 99503 Dear Mr. Snell, Mr. Shively, Mr. Irwin and Kurt Parkin: Delays in making the decision on the Sutton to Glennallen Intertie, allow us once again the opportunity to state that importance to both the Copper Valley Region and Valdez the importance this line plays in the economic development efforts going on in each of our regions. Historically, the Kenai Peninsula is a solid example of what can occur when adequate, low cost power is available. Numerous projects, creating non oil related jobs are now on line, with many more in the development process. We strongly urge you to look at this project from the viewpoint of current and future consumers of this power. When we quote power rates to a potential investor in our region, they laugh and walk away!! We fall several percentage points below the national average in profitability of existing business, due to the cost of power. Banks won't finance, when a business cannot even predict what the cost of power will be in the future. Several major entities have decided against our regions for job producing projects, due to electric rates. In a time when the Governor is emphasizing his Marketing Alaska Initiative, these infrastructure projects cannot be halted or none of the initiatives currently being discussed will work. The tools needed for economic development need to be put in place, not taken away. The Copper Valley region had an opportunity for a fiberglass plant to be located in the region. We met the airport requirements, were able to locate land near the airport, communications were excellent, no property taxes made us a favorable location and then we discussed energy costs. We quickly disappeared from the list and with it 50 year round Ph. (907) 822-5001 - Fax (907) 822-5009 jobs. Tourism, the fastest growing segment of our region, cannot develop without additional infrastructure, namely hotels. When operating costs are discussed, we once again lose. Affordable power would make both the Copper Valley and Prince William Sound regions of the state more favorable to industrial development and value added processing with the construction of the line. It is beyond our comprehension how these factors continually escape assessment in the dozens of studies which have been completed for this project. We are not talking about a grant, it is a loan!!, When other infrastructure issues are so difficult to overcome in our Alaskan landscape, how can we not take care of one that is so simple? The few who are objecting to the intertie, have low cost power and wish a majority to continue to pay outrageous bills and bring two major regions of the state to a standstill. The studies have shown Allison Lake will provide for only todays needs, nothing into the future. Diesel generation has huge long term costs involved, and no lower rates for diesel fuel are projected to appear again. We have repeatedly brought to the attention of all of the firms who have studied the project that we have been designated as having the number one tourism development potential in the state. Ahtna Inc. has a major timber operation in the region, one has to ask why they are not processing any of the timber in the region. These issues are never addressed in the studies. Only the usage by current business. The bottom line is to build an intertie and let Alaska’s future happen. Don’t play politics with our lives. Let us develop and become a viable piece of Alaska’s economy. The alternatives being considered are viable only in the short term, not the long term. If Alaska had been looking at long term, this would not even be an issue today. In summary: © Economic development opportunities in Prince William Sound and the Copper Valley are being lost due to high energy costs. © Economic Development needs infrastructure to occur; energy being the primary concern. © Every effort to address the concerns of environmentalists have been made, which has resulted in design changes and intertie realignment. © Studies have never indicated what could occur with the construction of the line or addressed other potential projects and their power. requirements. © Need to look at the project in the long term with benefits to all of Alaska © Never addressed the possibility of business currently generating their own power, switching to commercial power. © Look at REA records and gain a historical perspective of what happens to development when energy needs are met. © Consumer viewpoint must be considered. How much more can any business pay and still remain profitable? © Alternatives presented do not reduce the cost of power and will not promote any type of development. Years of investigating alternatives for cost effective energy and the politics involved, have beaten us down. We ask for so little in these two regions and when we do we are strongly in need to provide a level of self sufficiency within our regions. We trust you will make the right decision for the majority, based on long term economic return to our regions and the State of Alaska. Sincerely, Donna Tollman Executive Director cc: | Governor Knowles Lt. Governor Fran Ulmer