Tiqun throws in with MEA and Chugach over power proposal

MAT-SU — What may have begun as a power struggle for future electricity production may lead to greater cooperation between a trio of Southcentral Alaska energy concerns.

Mat-Su Valley residents can devour as much as 130 megawatts of electricity at times and its mainstay power provider, Matanuska Electric Association, may have more alternatives to its plans to build 200 megawatts of new generation by 2015. Ratepayer-owned MEA proposes to build a 100-megawatt gas-fired plant and 100-megawatt coal-fired plant at Mile 37 of the Glenn Highway near Palmer.

As debate over MEA’s plans continues, Tiqun Energy has said it also wants to generate electricity in Southcentral Alaska. Owned by Marc Marlow, Randy Hobbs and Randy Kaer, Tiqun wants to build 60 megawatts of generation on the Alaska State Fairgrounds south of Palmer and 120 megawatts in the old Knik Arm Power Plant in Anchorage. Both of Tiqun’s plants would be gas-fired.

Both entities say their power plant projects would save ratepayers money and provide reliable electricity.

At a recent MEA board meeting, Hobbs, president of Tiqun Energy, recommended that the cooperative extend or rewrite its contract with Chugach Electric Association when the current contract expires on Dec. 31, 2014. Tiqun would then supply Chugach Electric with the new generation it needs to replace aging facilities in Anchorage and at the Beluga gas fields across the Cook Inlet. MEA currently buys nearly all of its energy from Chugach.

The 60-megawatt plant Tiqun proposes to build at the state fairgrounds would be housed in a barn-like structure to blend in with surrounding structures, Hobbs said. The plant would also supply waste heat to nearby businesses and possibly greenhouses.

Hobbs said the proposed Palmer plant would provide new generation in the middle of MEA’s service area and would meet the cooperative’s needs without MEA needing to build its own generation.

Lorali Carter, manager of government and corporate communications for Matanuska Electric Association, said MEA is in negotiations with Tiqun. Although it is in an all-encompassing contract with Chugach Electric, if CEA does not come to an agreement with Tiqun, MEA can then step in.

Chugach and Tiqun are also negotiating “about Tiqun’s plan to sell power to Chugach,” said Phil Steyer, spokesperson for Chugach Electric Association.

Though CEA and MEA are independently negotiating with Tiqun, both cooperatives have challenged Tiqun’s qualified facility status with the Federal Energy Regulatory Commission. MEA has challenged Tiqun’s Palmer plant and Chugach Electric has challenged Tiqun’s Knik Arm proposal.

Tiqun dismisses both challenges.

“We don’t think they have any merit,” Hobbs said. “We are confident FERC will uphold our [qualified facility] status.”

Hobbs said Matanuska Electric Association and Chugach seem to be cooperating.

“MEA seems to have turned over a new leaf and they are being cooperative, and we really appreciate that,” Hobbs said.