MEA's public process far from public

PETER HOUSTON/Spectrum

May 25, 2007

I just checked the MEA Web site, and as far as I can tell, that was it for &#8220public process.” The advisory votes will be counted on June 7 and MEA will then proceed with its plan to build two power plants - one coal-fired - here in the Valley.

What can we do now? Write letters to the editors of every paper you can think of. Then send letters to your representatives and the governor. Contact info for just about everyone is on our Web site at: www.mearatepayers.com.

Attend the next MEA board meeting, too.

I believe the perspective of the majority of the board is summed up well by Larry DeVilbiss when he stated that he does not believe that the group speaking at last week's board meeting is representative of the membership, and he does not think the information we are sharing is valid, although he did not give specific examples.

On the contrary, Mark Foster is one of, if not the, most qualified consultants available to address this issue. As we have approached other economists for comment, consistently we have been told &#8220you already have the best.”

Mr. Foster's analysis (available at www.mearatepayers .com/Documents.htm) shows that MEA may have underestimated the cost of the coal power plant by as much as 80 percent. As a result, when more reasonable cost projections for carbon tax, personnel and administration are added in, a conservative estimate of the end cost to the ratepayer is 23 cents per kilowatt hour.

Compare that to your current bill and see if it isn't about

double.

Furthermore, Mr. Foster's analysis calls into question MEA's other assertions, such as that we need to be independent and that building our own power plant will provide more reliable service.

By becoming independent we lose any economies of scale, such as increased bargaining power of a large consortium of utilities that could get better rates on fuel, lower cost per megawatt when building a larger plant, the ability to build closer to the fuel source and transmit power rather than transport fuel.

Also, indications are that the majority of MEA's reliability problems are due to failures of MEA's distribution system and not as a result of Chugach's generation or transmission facilities. These distribution failures would be best solved by more tree trimming, and generation in our own service area would do little to improve reliability.

So in response to MEA's plans:

1- &#8220We need to be

independent”

We say: Tell us why. There is no indication of actual benefit to the ratepayer. In fact, it appears to be a bad business move. Instead cultivate better working relationships with all of the Railbelt cooperatives, which will lead to better economies of scale and better rates for everyone.

2- &#8220Coal is cheaper”

We say: What is the true cost of coal? This plan appears to be doubling our electric rates. Put your coal plant plans on the table next to contract proposals from Chugach, ML&P, and Golden Valley and others as interested and let the best

deal win.

3- &#8220Local generation is more reliable”

We say: Conduct and publicize an honestly independent study of the reliability issues over the last 10 years or so and assess what the true reliability problem is and what the best solution would be.

Then, begin discussion with the us, the owner-members,

on whether we need local

generation.

NOTE: I did not once mention renewable energies or anyone's back yard. These are separate and important issues, but the single most important issue is that this plan is bad. We must return to step one of this process before any more of our money is spent on it.

We must devise a plan that makes the best use of every dollar that we pay for our electricity. This &#8220best” plan is the responsibility of the board not, as board member David Dahms apparently believes, of ratepayers who are willing to step up and question the process.

I do agree with the board on one point though - time is of the essence, 2015 is tomorrow and you've wasted our time

so far!

Palmer-area resident Peter Houston is president of the public advocacy group MEA Ratepayer's Alliance, which can be found on the Web at www.mearatepayers.com.