MEA asks for bids on power plant

PALMER — The Matanuska Electric Association is soliciting bids for a gas-fired power plant at Eklutna.

The plans have been an ongoing issue at MEA since at least 2007. At one point, MEA wound up in court wrangling over a power plant ordinance the Mat-Su Borough passed. That suit made it to the state’s Supreme Court, which announced it had ruled against MEA last week.

Since the plant is planned for Eklutna, the borough’s ordinance has no bearing on it.

MEA currently buys nearly all of its power from Chugach Electric Association under a contract a previous board of directors voted not to renew and which is set to expire on Dec. 31, 2014.

But the co-op has since undergone a dramatic change in leadership. With this year’s election, the board majority shifted. The new board quickly set about reversing a lot of the policies of the previous board and firing the co-op’s general manager.

MEA lately hasn’t seemed as gung-ho as it once was about the prospect of getting into the power generation game.

“At this time, MEA is keeping all power supply options on the table by considering power purchase agreements with other utilities, as well as moving forward with local generation plans. Our main concern remains which option, or combination of options, will be the lowest cost to our members,” MEA’s Interim General Manager Joe Griffiths says in a press release announcing the bid solicitation.

In previous interviews, Griffiths has said he’s alarmed at the immediate problems with delivering gas in Southcentral. A former general manager of Chugach, he said that the Anchorage-based utility, if it doesn’t find new supplies, is going to run out of gas before MEA’s contract expires.

He said he would like to see whatever plant is built be able to run on gas and some other type of fuel.

The bid has two options. Either a company can bid to build the plant for MEA or it can bid to build a plant and sell power exclusively to MEA. The plant is to produce 180 megawatts of power, which the utility has said previously is enough to handle its base power load but not enough to handle its peaks. They’d have to contract with other utilities for that.

The land — 70 acres surrounding an existing substation and next to the old Eklutna Power House — was re-zoned for power plant usage earlier this year. An archaeological study has been done in the area. MEA is working with the Native corporation Eklutna Inc. — the land’s former owners — for possible co-generation agreements.

According to the press release, bidders have to indicate their interest by Wednesday and attend a meeting at the utility in November. Final proposals have to be in by late January and MEA will award a bid in May.

Contact Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.