Legislature(2007 - 2008)
03/12/2008 02:57 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB289 | |
| SB260 | |
| SB120 | |
| SB246 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 246
"An Act establishing a working group to analyze the
potential of a hydroelectric power project on the
Susitna River; and providing for an effective date."
Co-Chair Stedman reported that the bill deals with an issue
the committee has been struggling with for several years.
Senator Joe Thomas, sponsor, explained the purpose of the
bill. SB 246 will direct the Governor to have the Alaska
Energy Authority (AEA) analyze the hydroelectric potential
of the Susitna River. The AEA will review and update
studies done in the past, evaluate cost analysis, financing
options, current and future demand, and other critical
issues to determine the feasibility of the project. The
Governor will submit a final report to the legislature not
later than July 1, 2010.
In recent years, Alaskans have seen their energy costs
skyrocket. These ever-rising costs and uncertain supplies
not only make it difficult for Alaskans across the state to
make ends meet, but also have an adverse impact on economic
growth.
The energy produced by a hydroelectric facility is
predictable, stable, clean and low cost. Currently, the
Bradley Lake hydroelectric dam produces energy for the
Railbelt at just $.05 per kWh, far below the $.176 per kWh
that the Interior is currently paying.
In addition to these factors, the majority of our combustion
turbine power plants along the Railbelt are over 30 years
old and all will need retrofitting and replacement that will
cost between $1 billion and $2.5 billion over the next ten
years. Once these replacements begin, we will continue with
the same rising energy costs, fluctuating operating
expenses, and high polluting facilities that the citizens of
the state have experienced in the past.
Twenty-five years ago, when a dam along the Susitna River
was last looked at, Cook Inlet Gas cost $.21 per million
cubic feet, the population and energy demand along the
Railbelt was substantially less than today, and energy costs
were nowhere near what they are today. He said he believes
all these factors, along with environmental and long-term
energy considerations, merit a reopening of the Susitna
discussion.
Nothing is as comprehensive of an approach to reducing
costs, emissions and dependence on finite, non-renewable
energy production for the Railbelt and adjacent areas as a
Susitna Dam project.
Senator Thomas referenced the high price of oil and gas. He
noted that the fiscal note is broken down according to tasks
with the objectives clearly laid out. He encouraged the
committee to support the passage of SB 246.
4:52:25 PM
Co-Chair Stedman asked if this is a broader reaching energy
analysis scope, farther reaching than just the Susitna
project. Senator Thomas agreed that it was not limited to a
Susitna study. Co-Chair Stedman asked what the comparative
energy supplies are: a bullet line, imported LNG, gas line
strikes in Cook Inlet, coal, etc. Senator Thomas added
other potential hydro in the Railbelt.
4:53:44 PM
Senator Elton wondered if the Railbelt Energy Fund was more
appropriate as the funding source. Senator Thomas agreed
that the fund would be appropriate. Co-Chair Stedman noted
that it also includes a look at the transmission lines.
Senator Thomas agreed that it did look at updating
bottlenecks. Co-Chair Stedman thought the committee should
look further into the Railbelt Energy Fund.
Co-Chair Stedman noted the fiscal note contains $2.7 million
in FY 09 followed up by $1.5 million in FY 2010.
4:55:17 PM
STEVE HAAGENSON, EXECUTIVE DIRECTOR, ALASKA ENERGY
AUTHORITY, spoke of the benefits of hydroelectric energy
projects. He suggested identifying the potential savings
and benefits from using hydroelectric energy. He testified
in favor of SB 246.
Co-Chair Stedman offered the numbers of $10 billion to $15
billion for cost of the Susitna hydroelectric project.
JERRY MCCUTCHEON, ANCHORAGE, testified against SB 120.
5:03:52 PM
PHIL STEYER, DIRECTOR, CHUGACH ELECTRIC ASSOCIATION,
testified in support of SB 246. The Railbelt is heavily
dependent on natural gas from the Cook Inlet Basin to
generate electricity. Electricity from the three current
hydro projects is the least expensive, but it is at its
limit. As the price of natural gas has risen, so has the
cost to the public. Chugach is looking for a Susitna
hydroelectric project for the Railbelt.
Senator Thomas concluded by saying that this was a much-
needed project. He thought that future gas should not be
used to solve energy needs, but rather should be sold and
exported. He suggested that there is a strong need to go
forward with this bill.
SB 246 was heard and HELD in Committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|