MEA: Cold, dark, winter may push gas fields over the limit

Everyone knows that Alaska is rich with abundant natural resources. Each fall Alaskans look forward to the Permanent Fund Dividend.

The PFD is our share of royalty money from developing Alaska’s oil and gas resources. For decades residents of Southcentral have enjoyed the benefits of inexpensive natural gas from Cook Inlet. Many of us depend on this natural gas to heat our homes as well as provide for our electricity.

For the past few years, residents have felt the effects of dwindling Cook Inlet gas supplies as the price of natural gas has increased. So if our state is so rich with natural resources, why are people talking about gas shortages?

Cook Inlet gas

Cook Inlet natural gas has been used to heat homes here since 1962. While enough natural gas has been contracted through the end of 2010 to meet the needs of customers using natural gas to heat their homes; the problem, is with deliverability. “How is that possible?” you ask.

The answer is that even though there is gas available, there is less pressure in the wells to actually deliver the gas where it needs to go — our homes, schools, businesses, hospitals, churches, as well as to power our electric generation plants. Most of the electricity generated in Southcentral comes from power plants that use Cook Inlet natural gas.

North Slope

natural gas

The state, numerous interest groups, citizens, as well as oil and gas production companies have talked for decades about how to develop the abundant natural gas resources on the North Slope. In recent years, government officials have discussed how to build a natural gas pipeline from the North Slope through either Canada or down to the export terminal in Valdez. The state is studying a plan to build a “bullet line” from the North Slope. The Alaska Natural Gas Development Authority is planning a smaller gas pipeline from the big pipe to Cook Inlet to supply our needs. The problem with each of these proposals is that they are billions of dollars and years, or possibly decades, from being permitted and constructed.

What happens

this winter?

MEA continually reminds its members to make sure their homes and businesses are prepared for the possibility of an extended power outage. Now is an excellent time to take an inventory of emergency supplies such as batteries, drinking water, first aid kits, warm blankets, and battery powered radios and flashlights.

This winter, in addition to the possibility of weather related outages, there is concern about power interruptions due to a natural gas shortfall. While a shortfall is not likely, it is a situation that we should all be prepared for. In a cold snap last January, gas demand came close to the Cook Inlet fields’ production limit. As temperatures stayed well below zero, homes and businesses used more natural gas for heat and electricity.

Matanuska Electric Association is working with other Railbelt electric utilities, as well as Enstar, the Mat-Su Borough, the municipality of Anchorage, and the Kenai Peninsula Borough on dealing with the possibility of not having enough gas to deliver this winter. If regionwide demand exceeds gas supply, the amount of gas flowing to power generators may have to be reduced to protect the gas supplies used for heating homes and businesses. This means each electric utility from Homer through Anchorage to the Mat-Su Valley, may have to resort to planned power outages to reduce demand on the gas system. MEA and the other utilities are completing a plan to circumvent the need for planned power outages and to ensure that if planned outages are necessary, the effect on our members is minimized.

In the upcoming weeks, a public awareness campaign will be launched as an effort to alert citizens about the possible gas shortfall and how that may affect their heat and lights this winter. The utilities are committed to educating consumers on what they can do to help reduce the demand for natural gas, such as taking steps to conserve energy, but to also prepare them for what to do during a planned outage.

In case of a problem delivering natural gas for heat and electricity, the government’s Emergency Operations Center will send alerts to consumers asking for voluntary energy reductions.

What are voluntary energy reductions?

Voluntary energy reductions are considered anything that will reduce the amount of gas or electricity being consumed. For example, turning thermostats down to 65 degrees in the home and 40 degrees in the garage, turning off all unnecessary lights and appliances, postponing doing laundry or dishes, turning down the setting on the water heater, and turning off gas fireplaces.

How will my

efforts matter?

Strength in numbers. Every little bit counts. For more energy saving tips, please visit MEA’s Web site, www.mea.coop.

Joe Griffith is interim general manager of MEA.