Spectrum

Troubled by perceptions of MEA

August 14, 2007

By Tucjerman Babcock

I read your editorial in Sunday's Frontiersman regarding Matanuska Electric Association's idea to transfer the remaining $75 million from the Railbelt Energy Fund to the Renewable Energy Fund. I appreciate the advice and the general tenor of your editorial, but there were a few items I would like to address.

Your editorial mistakenly states MEA's action came after the Mat-Su Borough's small poll. MEA's support for dedicating the Railbelt Energy Fund to renewable energy projects in the Railbelt was announced more than a month before the Borough's Ivan Moore poll results. When the governor announced her capital budget vetoes on June 29, which included all allocations from the Railbelt Energy Fund, MEA released a statement announcing our intentions to lobby for the transfer of the money to the Renewable Energy Fund.

The editorial also states that MEA is &#8220slowly learning” that supporting renewable energy is much less controversial than backing a clean coal plant. That characterization is not just.

MEA has a legal responsibility to provide reliable electrical service at a reasonable cost. No renewable energy project meets either of these criteria, which means they cannot provide base-load requirements. Base-load refers to customer demand for power 24 hours a day, 365 days a year. MEA was instrumental in supporting the legislative funding of $15.5 million for the Fire Island Wind Farm (also vetoed by the governor).

I am troubled by your feeling that the co-op &#8220has a history of animosity, secrecy and hostility to anyone or any group daring to question its motives.” Our only motive is reliable power at a rate folks can afford.

The fact is that no utility in the Railbelt has ever had as public a process as that conducted by MEA. MEA has held numerous public meetings on its new generation plans, including three meetings where a professional from CH2M Hill spent more than nine hours answering specific questions about the Integrated Resource Plan. As you know, the IRP recommends that local generation should be comprised of a combination of natural gas and clean coal technology. MEA remains respectful and courteous with the membership whether they call, e-mail, write letters or attend board meetings.

Your editorial challenges MEA to follow up with a proposal containing more specifics about how MEA and the membership could benefit from the plan. That would be premature on our part. The Renewable Energy Fund legislation, House Bill 152, does not list specific projects. The legislation would establish an advisory committee to recommend renewable projects worthy of state subsidy. MEA and the membership will benefit when state grants help renewable energy projects get up and running. These types of projects are very capital intensive - almost none of them pencil out without subsidy.

HB 152, Section 3, paragraph ( l ) explains that the Alaska Energy Authority, in consultation with an advisory committee, will develop a methodology for determining the order of projects that receive assistance, including separate requirements for grant eligibility, and adopt regulations identifying criteria to evaluate the benefit and feasibility of projects for which an applicant applies for support from the fund.

Unrelated to your editorial, but in a separate Frontiersman article, REAP spokesman Chris Rose voices skepticism of MEA's interest in supporting renewable energy projects. I would note that Mr. Rose has enjoyed several years of income in his position.

I believe he has yet to bring to fruition a single renewable energy project. While MEA has never funded Mr. Rose's speeches or presentations, MEA does look forward to Mr. Rose endorsing the use of the entire Railbelt Energy Fund for renewable projects.

Mr. Rose says MEA has done very little to promote or develop renewable energy projects. I must assume that Mr. Rose forgot that MEA was instrumental in securing more than $15 million in state money for the Fire Island Wind Farm. MEA has also been excitedly working with PolarConsult and officials from the Anchorage Landfill regarding small hydro projects and using methane gas from the landfill for power generation.

In closing, I would like to reiterate that MEA understands the value - and the expense - of renewable energy projects, yet we believe they can still be a source of supplemental power. MEA has encouraged the development of state-supported renewable energy projects and, looking toward 2008, plans to lobby on behalf of transferring the remaining $75 million in the Railbelt Energy Fund to the Renewable Energy Fund.

Tuckerman Babcock is MEA's assistant general manager.