HomeMy WebLinkAboutKootznoowooThayerREF11-7-09 IPECINSIDE PASSAGE ELECTRIC COOPERATIVE
November 7, 2009
Mr. Peter Naoroz, General Manager
Kootznoowoo, Inc.
8585 Old Dairy Road, Suite 201
Juneau, AK 99801
Re: Letter of Support for Thayer Creek Hydroelectric Project for Angoon, Alaska
Dear Peter:
The community of Angoon suffers from extremely high energy costs due in part to its
dependence on diesel electric generation. Inside Passage Electric Cooperative ("IPEC") is the
member -owned, State certificated and regulated electric utility for Angoon. IPEC strives to
reduce and stabilize electric rates to Angoon's members by reducing the cost of generation, by
increasing economies of scale through greater sales, and by keeping IPEC's non -fuel costs to a
minimum while providing safe, reliable, sustainable power.
We understand that Kootznoowoo has exclusive rights through ANILCA to develop and
construct the Thayer Creek Hydroelectric Project for the benefit of the community of Angoon.
IPEC has always supported the Thayer Creek Project as having the best potential to provide
clean, renewable, lower cost electricity for Angoon. To this end we have committed substantial
time and resources over the past several years to work with and assist Kootznoowoo to develop
the project.
IPEC remains supportive of Kootznoowoo's efforts to develop and construct the Thayer Creek
Hydro project for Angoon to the extent that it aids IPEC in reducing electric generation costs for
the community. We understand that Kootznoowoo is applying for funds from the State of
Alaska's Renewable Energy Fund, and we wholeheartedly encourage and support your efforts.
It is our hope that the Thayer Creek Hydro project proves to be economically and operationally
feasible, and that it will provide significant rate benefits to Angoon. As a non-profit entity,
IPEC's goal is to provide the lowest possible cost to ratepayers consistent with safe and reliable
utility operation. With that in mind, we hope to enter into a memorandum of understanding,
and then power sales agreement negotiations with Kootznoowoo. Ideally, Kootznoowoo will
agree to provide cost -based power with a reasonable rate of return consistent with State
P.O. Box 210149 Auke Bay, Alaska 99821 (907) 789-3196 Fax (907) 790.8517
Kootznoowoo, Inc.
November 7, 2009
Page 2 of 2
regulations.
It is our hope that Kootznoowoo's Thayer Creek Hydro Project can provide significant rate
benefits to Angoon. We wish you luck with the project, and we will do our best to aid your
efforts as we have in the past.
Sincerely,
INSIDE PASSAGE ELECTRIC COOPERATIVE, INC.
Z�q'141V-Ijl
Jodi Mitchell, CMA
Chief Executive Officer & General Manager
CC: IPEC Board of Directors
Alaska State Senator Albert Kookesh
Alaska State Representative Bill Thomas
City of Angoon