Editorial: CBM could be example for power ordinance

July 24, 2007

Frontiersman Editorial

The Mat-Su Borough Assembly and Matanuska Electric Association continue to squabble over a proposed ordinance to regulate construction and operation of power generation plants in the Mat-Su Valley.

It's a familiar dance to a different tune.

It was only about three years ago that similar arguments were waged between the Borough and the coal-bed methane industry. Concerned about the track record traditional coal-bed methane extraction has had on the environment, the Borough crafted regulations governing how the gas can be extracted locally.

Seems some of the same concerns are driving the recent effort that would require certain protections and guarantees from anyone seeking to build power generation of 20 megawatts or greater. This includes MEA, which is in the process of fleshing out plans to build a pair of 100-megawatt plants, one gas-fired and the other coal-fired.

While MEA laments the ordinance as a deliberate attempt by the Borough to shut down its coal-fired plant, perhaps our local electricity cooperative should look out the corner of its eye.

If it did it would see Jim Fowler of Fowler Oil and Gas.

Fowler stood to lose the potential of millions of dollars worth of natural gas development when the Borough enacted its coal-bed methane ordinance. Instead of feeling sorry for himself, Fowler studied the regulations and what it would take to meet the Borough's guidelines and still access the coal-bed methane found under the Valley.

The result is Fowler has found a way that, if successful, would meet the Borough's requirements and allow for local coal-bed methane extraction that would be profitable for him and the landowners, and not destroy the environment in the process.

Rather than bellyaching about how the Borough is unfair and how MEA is the victim of power-hungry local yokels, our electric cooperative should be a willing participant in the ordinance planning and discussion. There is much to be gained in working together to craft an ordinance that protects the abundant natural resources found in our back yard, while allowing for industrial and commercial development to meet the demands of a growing community.

We've heard MEA officials say it would take an estimated $1 million more to meet the stipulations in the Borough's proposed ordnance. While that's a healthy chunk of change for anyone's wallet, it isn't out of line for a $350 million project, nor has MEA identified what part of the proposed ordinance would cause the escalation in cost or why.

By the time the Borough Assembly votes Aug. 28, MEA will have received the results of its latest informational ballot that asks member-owners their preferences regarding local power generation. With the not-so-silent opposition to a coal-fired plant and the Borough's pending ordinance regulating power plants, MEA may need to be ready to compromise. Perhaps the final answer will be a coal-fired plant using the latest in clean coal technology, or it may be a pair of gas-fired plants, one larger gas-fired plant, a gas-fired plant and strategic development of renewable resources or some local production in the form of a gas-fired plant supplemented by continuing to purchase some power from Chugach Electric Association.

If MEA truly feels generating its own power is in the cooperative's best interests, it will need to find a way to work with the Borough and its member-owners to build an electrical generation plant that will serve the needs of its service area while protecting the quality of life we enjoy today, and for future generations.