MEA pitches funding for renewables

August 12, 2007

By Russell Stigall/Frontiersman

MAT-SU - Matanuska Electric Association is willing to sacrifice its share of the state's Railbelt Energy Fund to help jump-start renewable energy projects close to home.

MEA General Manager Wayne Carmony said he would recommend the state dedicate the remaining Railbelt Energy Fund money - about $75 million - to Southcentral Railbelt renewable energy projects.

&#8220An ideal vehicle for the appropriation is the Renewable Energy Fund legislation pending before the Legislature,” Carmony said.

The Renewable Energy Fund is described in House Bill 152, which passed the state House this year and establishes a pool of money to fund grants to promising Alaska renewable energy projects. The bill will have to wait until the 2008 session to have its day in the Senate.

Example projects would be the Ocean Renewable Power Corp. Knik Arm Tidal Project, small-scale hydroelectric projects and larger cooperative projects like the Fire Island Wind project and Mount Spurr geothermal project proposed by the native Tanadgusix Corp.

HB 152 would be a statewide program while the Railbelt Energy Fund was created for projects specific to communities along the Railbelt.

Carmony announced the cooperative's new direction regarding the Railbelt Fund in a response to Gov. Sarah Palin's recent veto of the Railbelt Fund, from which the co-op was slated to receive $26.5 million. The money was designated for infrastructure maintenance and a new transmission line.

Chugach Electric Association supported House Bill 152 that would create the Renewable Energy Fund, which is akin to opening a bank account. However, Chugach Electric has not discussed internally from where the organization feels the funding should come, said Phil Steyer, Chugach Electric Association spokesperson. Chugach has a seat on REAP's board of directors.

Chris Rose of Renewable Energy Alaska Project said MEA's idea was a good one, but is cautious about Carmony's proposal because being a leader in developing renewable resources is not characteristic for MEA, he said.

&#8220So far MEA has done very little to promote or develop renewable energy projects,” Rose said.

Palmer-based REAP is a proponent of the renewable fund and promotes renewable energy projects in Alaska. Its sponsors and board of directors include many of the Railbelt and rural power utilities in Alaska. Matanuska Electric is not a member or sponsor of REAP.

Lorali Carter, MEA spokesperson, said the renewable fund could help with projects normally too expensive to start otherwise.

&#8220Some of these smaller hydro projects are very capital intensive,” she said. &#8220Electric co-ops don't have the capital money to invest in their startups. This is an idea for how the state can help with grants to get these types of projects off the ground.”

Carter said MEA may or may not look to the Renewable Energy Fund to jumpstart its proposed 5-megawatt renewable project, depending on the findings of the Alaska Energy Authority Unified Systems Operation study.

Matanuska Electric Association plans to build 200 megawatts of generation capacity in the Mat-Su Valley by 2015, half fueled by coal and half by natural gas. The 5 megawatts of renewable power would supplement the co-op's existing 19.5 megawatts of hydroelectric power.

The $800,000 Unified Systems Operation study, which will begin in October, is expected to find ways Railbelt electric co-ops can better cooperate to meet the demands of the entire Railbelt grid. The Alaska Energy Authority plans to have draft findings completed by the legislative session in 2008.

Carter said Matanuska Electric Association proposed the idea to shift Railbelt funds to the Renewable Fund to address the demands of its member-owners.

Matanuska Electric Association does not have specific plans for how the funds should be transferred or how the Renewable Energy Fund should be used.

&#8220For now it is just a concept, but MEA just thinks it would be a good idea to take all the money and sweep it into a renewable energy fund,” Carter said.