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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