HOUSE SPECIAL COMMITTEE ON UTILITY RESTRUCTURING March 8, 2000 8:12 a.m. COMMITTEE CALENDAR OVERVIEW: Energy Alternatives TAPES 00-4A, SIDES A AND B 00-4B, SIDES A AND B CALL TO ORDER CHAIRMAN BILL HUDSON called the House Special Committee on Utility Restructuring meeting to order at 8:12 a.m. PRESENT Committee members present were Representatives Hudson, Cowdery, Davies, Rokeberg, Porter, Berkowitz and Kott. SUMMARY OF INFORMATION MICHAEL KELLY, President, Golden Valley Electric Association, explained that the Healy Clean Coal Project lawsuit is close to a settlement and could be signed today. He responded to questions from the committee. RANDY SIMMONS, Executive Director, Alaska Industrial Development and Export Authority (AIDEA), Department of Community and Economic Development, talked about AIDEA's goals for the Healy Clean Coal Project and said that AIDEA believes the lawsuit settlement will be satisfactory to all parties. He also responded to questions from the committee. PERCY FRISBY, Manager, Rural Energy Programs, Department of Commerce and Economic Development, talked about the status of energy programs in rural Alaska and his department's efforts to reduce the need for separate power systems and the high cost of fuel. He answered questions from the committee. RON JOHNSON, Director, Energy Center, University of Alaska- Fairbanks, explained that throughout the world and in Alaska there is a move toward using more renewable fuels. Energy conservation is key, and UAF is now spending up to $1 million per year to study fuel cell and reformer technology for applications in Alaska. Several questions from the committee were answered. CHARLES WALLS, President and CEO, Alaska Village Electric Cooperative (AVEC), explained that 51 villages belong to that cooperative. They still experience high KWh costs and support the notion of energy alternatives toward lowering costs. He supports wind technology in appropriate locations in Alaska, as has been done in Wales. He answered questions from the committee. RICHARD GLENN, Director of Energy management, North Slope Borough, has looked at all kinds of alternative energy options. North Slope Borough is presently taking advantage of waste heat and energy audits. He supports more use of natural gas and encourages collaborations that could share the expense of drilling to lessen financial risks. He believes solid oxide fuel cells have potential and should be tested in rural Alaska. BRAD REEVE, General Manager, Kotzebue Electric Association, talked about a wind energy program in Kotzebue and how wind energy is the fastest-growing energy alternative in the world. Winter winds in Kotzebue closely match those needed for generating power to meet peak load needs. A project there has proven wind to be a viable technology and has reduced Kotzebue's's per KWh cost to .13 cents. [There was not sufficient time remaining for a presentation by Scott Newlun, Administrator, Yakutat Power, Inc., who was prepared to talk about the Yakutat Salt Chuck Tidal Project.] COMMITTEE ACTION The committee took no action. ADJOURNMENT CHAIRMAN HUDSON adjourned the House Special Committee on Utility Restructuring meeting at 9:53 a.m. NOTE: The meeting was recorded and handwritten log notes were taken. A copy of the tape(s) and log notes may be obtained by contacting the House Records Office at 129 6th Street, Suite 229, Juneau, Alaska 99801-2197, (907) 465-2214, and after adjournment of the second session of the Twenty-first Alaska State Legislature this information may be obtained by contacting the Legislative Reference Library at 129 6th Street, Suite 102, Juneau, Alaska 99801, (907) 465-3808.