RCA skeptical of MEA proposal

MAT-SU — Members of the Regulatory Commission of Alaska have reservations about Matanuska Electric Association’s motive in proposing a Railbelt-wide generation and transmission power pool.

The RCA met in Anchorage Thursday, where commissioner Dave Harbour moved to reject MEA’s petition to create a Railbelt cooperative based on existing disputes between Railbelt utilities.

“When we receive a petition from one effective party that is in dispute with other effective parties, … this might be a forum for continuing this dispute,” Harbour said. “The word cooperation kept coming up [during Thursday’s public testimony]. I am a little troubled that a petition comes before us from one entity.”

Harbour said the commission should open a docket to research a Railbelt-wide generation and transmission cooperative only if all parties involved want to proceed. The RCA should not bring the other parties in “kicking and screaming,” he said.

“[MEA’s] reasons don’t reflect enough cooperation for all the parties involved,” Harbour said.

Matanuska Electric Association Manager of Government and Corporate Communications Lorali Carter said she could not respond to Harbour’s comment about MEA’s motivation because it is not clear to what dispute Harbour was referencing.

MEA’s proposal for a traditional generation and transmission cooperative for the Railbelt stands on its own merits, she said.

“MEA feels the time is right for the RCA to explore this issue,” she said. “Forming a traditional G and T is a good idea for the entire Railbelt.”

Despite Matanuska Electric Association’s call for a power pool or Railbelt cooperative, utilities should continue with their plans to build generation facilities, Carter said. However, needs for an all-inclusive cooperative might change.

Both Chugach Electric Association and Matanuska Electric Association have plans to build their own gas-fired power plants, Carter said. The cooperatives may gain economies of scale if they build a larger plant together.

“We know we need 200 megawatts plus 5 megawatts of renewable energy,” Carter said. “But if we are to join a Railbelt-wide G and T the load requirements will be different.”

Commissioner Harbour’s request to reject the MEA petition failed. Instead, Commissioner Mark Johnson proposed the RCA hold a public hearing at 9 a.m. Sept. 24 to collect more information and give Railbelt utilities a chance to comment on the possibility of forming a power pool. The commission will then have a public meeting the morning of Sept. 25 for a chance to vote on whether to open a docket to investigate Matanuska Electric Association’s petition.

Commissioner Kate Gard said she favors holding a public hearing.

“Whether we drag [the utilities] kicking and screaming or not, they are going to come,” Gard said. “I want to hear what the parties want to say.”

Once a docket is opened and an order is made the commission would have two years to make a decision on the

proposal.

Carter said it is clear the commissioners are thoughtfully considering the proposal.

“We look forward to working with the commission on Monday,” she said.

Though Anchorage-based Municipal Light and Power is not directly included in the petition, the utility could join later if law allows a municipal utility to join cooperatives, Carter said. Either way, ML&P could still contract with the new entitiy that is formed and have all the benefits of other members.

Steve Cleary of the consumer protection group Alaska Public Interest Research Group said his organization is pleased with MEA’s change in direction from a go-it-alone approach to wanting to cooperate with other Railbelt utilities. Still, Cleary said he is skeptical of its plans to build 200 megawatts of generation in the Mat-Su Valley.

Valley resident Tim Leach, a member of MEA Ratepayers Alliance, also congratulated the electric co-op on its change of direction “if they are intending to cooperate.”

Leach said MEA’s proposal is premature and should wait until the Alaska Energy Authority releases its findings from an $800,000 Unified Systems Operator study due in March 2008.