State works to stop Juneau energy crisis
Published Thursday, April 24, 2008
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Stumble It!JUNEAU — With avalanches having severed Juneau from its source of cheap hydro power, a high-level state disaster cabinet is looking for ways to help the town cope with a sudden spike in power costs.
The 17-member group of commissioners and other state agency representatives met for two hours Wednesday to consider how to soften the blow of what’s expected to be about a 450-percent increase in utility bills next month.
The group plans to meet again next week.
Massive snowslides took out several towers and 1.5 miles of transmission line last Wednesday near the Snettisham Hydropower Facility about 40 miles southeast of Juneau. The state-owned facility provides about 85 percent of Juneau’s power.
Officials with Juneau’s privately owned power company, Alaska Electric Light and Power, expect repairs will take about three months. Until they are completed, Juneau is being powered by the companies’ backup diesel generators.
Department of Military and Veterans Affairs Commissioner Craig Campbell, chairman of the cabinet, said his first order of business was assurance that the company’s generators could handle the load.
“I wanted to make sure backup power was sufficient, that we didn’t have any life threatening situation develop,” said Campbell. “It’s being monitored constantly.”
The City and Borough of Juneau is requesting the state to issue a disaster declaration, projecting the cost of the crisis to the private and public sector will total $25 million dollars.
But while Campbell said Juneau will likely receive some kind of assistance, he warned it won’t be the bailout state fisheries received when markets collapsed a decade ago.
“The Legislature changed the law to restrict using disaster relief funding to do that,” Campbell said. “Some of the tools used in the past just aren’t available anymore.”
Campbell said aid is more likely to take the form of loans or lines of credit.
For example the state could ask the federal Small Business Administration to issue loans for the private sector or have the Alaska Industrial Development and Export Authority advance a line of credit to AEL&P to cover immediate fuel costs. That way the company could offer customers more long-term payment plans to smooth out the cost spike.
Campbell said the cabinet also asked the Department of Law to clarify whether Juneau could be included in the Power Cost Equalization program that provides assistance to rural residents with their high fuel costs, but the likelihood is slim.
Meanwhile, he applauded efforts at energy conservation. The power company estimates usage has dropped 20 percent since the avalanches occurred. Many stores are only half lit and the city is preparing to announce stricter conservation measures such as shortened hours at its facilities.
Campbell said the cabinet understands the impact on Juneau is severe and will reverberate throughout the region. But he said it’s a lesson to urban Alaska.
“What you are seeing in Juneau is a lot of the way rural Alaska lives all the time,” he said.
Mayor Bruce Botelho recognizes Juneau is not the only community dealing with severe fuel costs.
“And I think that reflects in part our own caution about raising expectations that there will be federal or state aid that is going to be readily available,” said Botelho. “This is not what one typically thinks of as a disaster in terms of risk to life and property, even though the major triggering event was an avalanche of massive proportion.”
Alaska Electric Light and Power filed a request Tuesday for a cost of fuel rate adjustment with the Regulatory Commission of Alaska.
The company also had surveyors studying the avalanche site. Some of the bases of the downed transmission towers are under 10 feet or more of snow, said a company spokeswoman.
Community Discussion
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This is something people might want to take a look at. I am all for helping out people in a time of need, but is something Juneau will "need" next year or beyond? I read an artical in a recent issue of Alaska Magazine about Juneau's precarious location and the danger of avalanches. Just as the rural Alaskans really have no valid point to argue high cost of living expenses, people in Juneau should not be bailed out by the rest of the state when avalanche happens. I am in no way telling people where they should live, but people should be aware of inherent risks and costs where they choose to do so. I do not mind helping, but I hope some of this money will go to finding ways to avoid this problem again.
I sot of agree with Dizzzle and also think the Juneau is just a government subsidizing governments anyway. We tried for at least 25 years to move the capital so maybe some common sense will finally kick in now. 99% of the people who live there are government related and produce nothing, just consume.
I also wonder if their "new" electric rate actually brings it in line with the rip-off reaming we have had from GVEA all these years? 350% increase of X = how much? GVEA is about the highest in the nation thanks to the poor decisions along the way by the BOD and it seems that GVEA has 2 or 3 of everything, and only the best of course ... lol. I think they have spent about $15 million in just radio equipment alone … lol.
The people of Juneau have had state subsidized power forever so maybe it is time to let them pay their own way or move out. I can barely pay my own bills much less theirs too.
This isn't the first time power towers have been knocked down by avalanches... it's happened many times worldwide for a hundred years.. yet the power companies always just turn right around and reinstall the same flimsy erector-set towers.
....I guess that's why the call themselves "The Power Company", because they always seem to do as they please without question.
There are other cost effective methods for transmitting high-tension power... a few places in Europe have demonstrated these methods quite nicely.
PE100-pipe has very strong dielectric insulating properties, and we now have inexpensive high-temp superconductors... this makes it possible to trench big-power underground fairly cheaply.
Distant thunder had my thought exactly.We've known about
the techknowledgy for many years now.Why haven't we used it?
I wonder if they are paying close to what GVEA is charging interior residents. One has to question the why GVEA burns diesel to generate electricity when they have a unused power plant a few miles away sitting right next to a world class coal reserve.
GVEA charges around 18 cents per kilowatt hour. Juneau is now being charged 52.5 cents per kilowatt hour...MUCH more than Fbks. rates!
Our current GVEA fuel surcharge is based upon $80 a barrel oil. With oil currently selling for close to $120 a barrel we will be looking at 25 cents per kilowatt next quarter. Maybe our mayor needs to declare an energy disaster so that someone will address the issue. Good luck Fairbanks on heating your home next winter with $4.50 a gallon heating oil.
Alaska needs a unified approach to solve the energy needs of ALL ALASKANS. We can argue with each other until we are blue in the face, shivering in the cold and all in the poor house...OR...we can begin the serious undertaking to get ALL of ALASKA ENERGIZED with affordable energy and heat.
It is going to take some time to convert to renewable energy and even then it may require some non-renewable resources for co-generation power electrical or back-up just like the problem Juneau is now experiencing.
To many people have forgot or were not even born when ALASKA experienced the BIG '64 Earth Quake that took out a good chunk of Alaska's infrastructure. TEAM WORK put the infrastructure back together. We need that same CAN-DO spirit, now.
PUT ON YOUR THINKING CAPS AND ROLL-UP YOUR SLEEVES, THERE IS WORK TO BE DONE.
The way i see it Fairbanks has been under a energy crisis for how many months now. We got many people saying they are leaving because of the high electric bill and fuel bills how many politicians or state energy specialists are jumping to stop the energy crisis here? I do not feel bad for the people of Juneau. Do like we do deal with it. But im sure their situation will be taken care of while we still suffer high electric fuel and gas prices but who cares it is summer right. I guess those energy rebate checks we might have been geting would sure be nice huh but i guess them wonderful politicians have found a better way to use that money. Enjoy your new electric bill Juneau.
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