MEA plays the Mad Hatter in its own fairy tale

Matanuska Electric Association recently played the role of the Mad Hatter when it asked the Regulatory Commission of Alaska to exercise its rarely used sweeping governmental powers to force all Railbelt utilities into a single entity. A second proposal asked for a mandated backup energy pool.

Critics of MEA have long asked the electricity cooperative to explore cooperation with other utilities and other options in addition to its coal and gas electricity generation scheme. Alaskans from Homer to Fairbanks could be asked to pay expensive costs for MEA’s proposal.

Why would MEA suddenly ask the RCA to use extreme governmental powers to force creation of a single Railbelt utility just as the Alaska Energy Authority is embarking on a comprehensive unified system operator study that might achieve a similar goal? It’s curious.

This is the same MEA that loudly declared its independence from other Railbelt electric utilities with a plan to build its own gas- and coal-fired generation plants. Never mind MEA has no apparent access to a gas supply, evidence suggests MEA’s coal plant costs are grossly underestimated, which could result in excessive future charges to ratepayers.

When RCA commissioners asked MEA about its proposal, the answers were less than satisfying. One commissioner asked whether MEA invited any other utilities to support its forced merger request. Nope, not one. When asked what MEA would do if it actually built planned coal- and gas-fired generation plants and then an area-wide utility were created, MEA said it would sell or lease the facilities to the new utility.

Translation: New Railbelt utility ratepayers would likely pick up the tab for MEA's expensive new generation and potential cost overruns.

To top it off, MEA has indicated it does not intend to participate in the impending Alaska Energy Authority unified service operator study — a public process that might actually create a Railbelt utility operation similar to what MEA is asking the RCA to force into existence.

The message is clear: It’s MEA’s way or no way.

MEA said that similar studies in the past had gone nowhere and that participating in a new one would be a waste of time and resources. In fact, the upcoming AEA study puts all options on the table to consider the most cost-effective and reliable electrical generation options. In addition, it invites the participation of regulators, consumer groups, the public and other stakeholders to help explore all possibilities — something that hasn’t happened in the past. Other Railbelt utilities are apparently willing to participate in AEA’s study. That MEA would not could only make sense to the Mad Hatter and mean that all the other utilities are out of step except MEA.

MEA’s credibility gap is exacerbated by the fact it is the only major utility that does not belong to the statewide Alaska Power Association. MEA declined to participate in the current Alaska Natural Gas Development Authority Railbelt energy study and did not join a Joint Action Agency in 2005, even though it stated support for a JAA to the state House Finance Committee on April 1, 2004. There is a long list of examples of MEA not cooperating over the past decade.

Perhaps MEA can take a page from another co-op's true story. After a couple of failed attempts at getting a cell tower site in Sutton, the community invited Matanuska Telephone Association to work with it. A location was soon found that made most everybody happy.

The best way MEA could demonstrate its good intent, in this case, would be to join the upcoming Alaska Power Authority study. Instead of claiming its coal/gas plant plan is the only one MEA will implement, it could invite the public to brainstorm additional options while the AEA study is being conducted. The public and other Railbelt utilities stand to gain a great deal of useful information and cooperation through the AEA study. We all need to find clean, reliable and cost-effective energy that will benefit our children and grandchildren.

Until the AEA public process is given an opportunity to work, the Regulatory Commission of Alaska has no justifiable cause to accept MEA’s proposal to force other Railbelt utilities to comply with its proposal. Perhaps the RCA should recommend MEA pursue its goals through the AEA process and demonstrate its willingness to work with others.

The RCA will continue to take public comments on MEA’s forced unification proposal until 4 p.m. Oct. 16 at rca@state.ak.us.

Jim Sykes is a Palmer resident and a founder of UtilityWatch, a consumer watchdog group.