HomeMy WebLinkAboutMEA Support LetterMatanuska Electric
Association, Inc.
P.O. Box 2929
Palmer, Alaska 99645.2929
Telephone: (907)745-3231
Fax: (907) 745-9328
August 12, 2008
Gordon Carlson, President
Native Village of Cantwell
P.O. Box 94
Cantwell, Alaska 99729
Re: Jack River Hydro Project
Dear Mr. Carlson:
On behalf of Matanuska Electric Association, Inc. (MEA), I am responding to your letter of
July 24,.2008 regarding the Jack River Hydroelectric Project. I am afraid that I have been able to
find no information about your project, other than a possible reference on Page 1-2 of the
Regional Inventory and Reconnaissance Study for Small Hydropower Projects in Southoentral
Alaska,produced by the U.S. Army Corps of Engineers in June, 1982. Therefore, this response
must be fairly generic. _
As an initial matter, and based upon the 1982 Inventory referenced above, MEA assumes that the
Jack River Project is a small (less than 2 MW) storage hydroelectric project. If this is a qualifying
facility, MEA will meet any purchase obligations from the Jack River Project that might arise
under 3 AAC %750 - .820. For purchase obligations arising prior to January 1, 2015, MEA is
contractually obligated to refer the opportunity to Chugach Electric Association, Inc. pursuant to
our existing wholesale power agreement.
Purchases of non -firm energy by MEA would be avoided cost, as currently posted on Sheet
No. 106 of MEA's Tariff. This rate for energy delivered to MEA is currently $0.05345/kWh.
Assuming that energy from the Jack River Project is wheeled to MEA over Alaska Intertie, the
wheeling rate for that State owned facility appears to run approximately $0.005/kWh, yielding a
return to you of roughly $0.0485/kWh. Firm energy would have a somewhat different rate, one
that would have to be negotiated once more information was available. MEA is fully regulated by
the Regulatory Commission of Alaska, and any power purchase agreement from a facility with
greater than 100 kW capacity would have to be approved by the Commission prior to going into
effect.
Of course, if the Jack River Project is too large to be a qualifying facility, MEA would still be
interested in talking with you about a possible purchase agreement effective January 1, 2015 or
later.
You have also asked MEA to provide a letter of support for the Native Village of Cantwell to
receive an Alternative Energy Grant from the Alaska Energy Authority (AEA) to pay for a
Gordon Carlson
August 12, 2008
Page 2
feasibility study of the Jack River Project. I am sure that you understand, MEA's highest priority
is to encourage AEA to provide Alternative Energy Grants for viable projects located within MEA's
service territory. That having been said, MEA believes that proposed projects such as the Jack
Creek Project which is apparently located near the existing RailbeR transmission grid could have
a greater chance at being found viable than more remote projects, and thereby be deemed more
worthy of having limited grant resources expended on them.
I hope that this response is helpful. If you have any questions, or wish to discuss this matter
further, please call me at (907) 761-9275, or e-mail me at ilwalkerdmatanuska.com
Sincerely,
?JamestL. Wa k �`e�'+"`
Senior Counsel
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