Planners give power to ordinance

July 13, 2007

By Russell Stigall/Frontiersman

MAT-SU - Matanuska Electric Association Assistant General Manager Tuckerman Babcock called the Mat-Su Borough's proposed ordinance governing power plant construction a &#8220sham” and the process a &#8220railroad” job, but that didn't dissuade the Borough's planning commission Thursday from green-lighting the regulations.

The ordinance that would regulate electric power plants moves on to the Borough Assembly July 17.

At a special meeting Thursday the Mat-Su Borough Planning Commission amended and approved the electrical generation ordnance with four planners in favor and three opposed. Opposing the measure were David Webster, Dick Zobel and Chairperson Helga Larson.

Valley residents filled the Borough Assemble Chambers in Palmer, some speaking out for and against the ordinance. Most of those addressing the planning commission expressed approval of the measure. Of 78 written comments about the power generation ordinance, 73 were in favor of the proposal. Of the five dissenting comments, one was from Usibelli Coal Mine, which stands to gain from selling its coal to MEA for the co-op's planned coal-fired power plant.

&#8220Seems like almost overwhelming public support of the ordinance,” planning commissioner Vern Halter said.

The Borough's ordinance would require power producers wanting to build new generation in the Mat-Su Valley to present information about the impacts on plants on the cultural resources, land use, noise, traffic and transportation, visual resources, socioeconomics, air quality, public health, hazardous materials handling, waste management, biological resources, soils, geological hazards and resources and transmission system safety and nuisance.

The commission amended the ordinance to require power plants of 20 megawatts or larger to meet the ordinance requirements, instead of 50 megawatts as originally proposed. Another amendment removes exemption from the ordinance for potential projects in the cities of Houston, Wasilla and Palmer.

&#8220Power plants will have an impact Borough-wide,” commissioner Dianne Woodruff said.

MEA plans to build 200 megawatts of new electric generation in the heart of the Mat-Su Valley by 2015. Until then, MEA buys its power from Chugach Electric Association and the Eklutna Lake hydroelectric project. MEA has informed Chugach Electric Association it will not renew the decades-old contract with Chugach when it expires Dec. 31, 2014.

Babcock attended Thursday's meeting and said MEA's plan for new generation will result in electricity that is cheaper to rate-payers and more reliable.

The ordinance was fast-tracked to keep pace with MEA's progress in procuring the land and permitting for a 100-megawatt coal-fired generator and a 100-megawatt gas-fired generator at Mile 37 of the Glenn Highway south of Palmer, Borough manager John Duffy said.

Babcock said regulation is in the purview of the Borough, but he called how the Borough has gone about constructing its regulations a &#8220sham process” and an attempt to &#8220railroad this through.”

Babcock also disagrees with the ordinance being based on one regulating power plants in the state California. The Borough should have looked closer to home for examples. The Kenai Peninsula Borough, Anchorage and the Fairbanks North Star Borough already have ordinances that regulate power plants.

&#8220This [ordinance] is not about the traffic and such,” Babcock said. &#8220This is for stopping the coal plant. Whether we should build a coal plant or not is not something the borough should be considering.”

Babcock asked the commissioners to slow down the Borough's process.

&#8220A power plant isn't coming tomorrow,” he said, adding he would like to see the Borough sit down to a meeting with MEA. &#8220That would be the responsible way for the borough to proceed.”

It would also be expensive for MEA rate-payers, Babcock said. &#8220At least $1 million dollars to comply with this.”

Commissioner Dianne Woodruff asked Babcock if the Borough to see the co-op's consultant study that came up with the $1 million estimate number. Babcock said the consultant would need to be asked. She then asked what top three issues MEA has with the ordinance. Babcock said MEA had not finished analyzing the ordinance and could not answer in depth.

MEA would meet the borough's requirements &#8220unless it gets to the point of being unreasonable,” Babcock said.

Members of activist groups Cook Inletkeeper, Utility Watch and Friends of Mat-Su spoke in favor of the ordinance.

Contact Russell Stigall at 352-2267 or russell.stigall@frontiersman.com.