|
Juneau’s electricity rates are likely to quintuple as the result of an
avalanche early this morning that cut all hydroelectric power to the
area, according to an Alaska Electric Light & Power spokeswoman.
Juneau is now running on diesel generators at Auke Bay and Lemon
Creek, said Gayle Wood, director of consumer affairs. One transmission tower is down and four damaged on the Snettisham
line, which connects hydroelectric power from the Snettisham lakes to
the service area. Outages were limited to the Thane area this morning because the power
load transferred to the diesel generators that were already running. Wood said it would be two to three weeks before workers could safely
begin repairing the line, and that hydro power wouldn’t be restored
for at least three months. __________________________________________________________ Thursday, April 24, 2008 St Electric ratepayers may have to cover repair costs as well By Alan Suderman | JUNEAU EMPIRE Juneau's electric ratepayers won't only be asked to pick up the price
tag for the diesel fuel being used to keep the city's lights on. They may also have to pay for repairing the transmission line and
electric towers that were damaged in last week's avalanche near the
Snettisham hydroelectric project. Alaska Electric Light & Power Co.'s general manager, Tim McLeod, said
Wednesday that he estimates the repair cost for the seven transmission
towers damaged or destroyed by the avalanche between Juneau and its
main source of hydroelectric power will be about $7 million. AEL&P, a private utility, is responsible for maintaining the
Snettisham line and estimates it will take three months to repair the
lines. McLeod said the company can cover some of the repair costs with its
reserves and will have to finance the rest. The next time AEL&P applies to the state regulatory body to increase
its rates, McLeod said the costs for replacing or fixing transmission
towers will be incorporated as part of the company's depreciating
assets, and consumers will be asked to pay for them. McLeod added that the repair costs would be spread out over a long
period and wouldn't have a large effect on electric rates. He said a
detailed analysis was necessary to determine how much of an increase
the repair costs would necessitate. AEL&P may ask the Regulatory Commission of Alaska, the state body that
oversees utility companies, for a rate increase next year, McLeod
said. Higher rates will be needed to offset the price of the new $60
million hydroelectric project at Dorothy Lake, he said. McLeod said the Dorothy Lake project may come on line next year and
will ultimately save Juneau's ratepayers money as energy demands
increase and the company relies less on diesel fuel to generate
power. It's still too early to tell if the state would object to AEL&P's
efforts to pass the repair costs off to its customers, according to
Daniel Patrick O'Tierney, chief assistant attorney general for
regulatory affairs and public advocacy. O'Tierney said his office will take a look at any of AEL&P's rate
adjustment requests and determine if it's in the public's interest to
participate in any regulatory commission proceedings. He added that it's the regulatory commission, which is made up of five
Anchorage-based commissioners, that will have the final say if the
repair costs come out of Juneau ratepayers' pockets. "Ultimately, that's the commission's decision," O'Tierney said. ------------------------------------------------------------------------------- City shaves some electricity expenses By Greg Skinner | JUNEAU EMPIRE As the city faces the possibility of spending its entire yearly
electricity budget within 90 days, an effort is underway to chip away
at the expense caused by emergency power rates of more than 50 cents
per kilowatt-hour. Various departments expect a variety of changes including shutting off
the airport's escalator, closing the Mendenhall and downtown libraries
one day per week, and lowering the temperature in the 40,000-square-
foot Centennial Hall by eight degrees to save money. City Manager Rod Swope said he estimates energy savings measures now
in place and on the way will reduce the expected $2.5 million increase
in fees for three-months of power by $250,000. Last week, Swope
directed city department heads to reduce electricity costs within city
operations and present numbers and actions at a meeting Wednesday. "I'm happy," he said. City Finance Director Craig Duncan estimated the city consumed 22.3
million kilowatt-hours annually before the price hikes caused by a
series of avalanches wiped out the Snettisham transmission line
bringing hydropower to Juneau. New shutdowns and operational refinements come on top of new standards
of disciplined light use, heating levels and office equipment
operation. The city says it costs 50 cents per day to operate a
personal computer. Fire Chief Eric Mohrmann said his department can save about $16,000
over the time period and is looking to shut down administrative
offices on Friday to further conserve. Docks and harbors can reduce
expenses for electricity they have direct control over by about $3,000
per month. Much of the energy consumed in harbors throughout the city
is paid for on a flat fee no matter how much is consumed. "Our big problem is electricity we don't control," Port Director John
Stone said. The Augustus Brown Swimming Pool sauna will oust its 300 daily users
and shutdown to save another $720 per month, but the pool will stay 86
degrees. Public Works Manager Joe Buck is tweaking the Mendenhall Sewage
Treatment Plant, the city's biggest electric consumer, to reduce use
by 20 percent. Buck figures he can save more than $15,000 per month by
running a tighter ship. Citizens can join the effort in reducing cost to the city and
eventually their own wallets. Special Projects Manager Maria
Gladziszewski said new power rates raise the cost of water going into
homes and then passing through the city treatment facilities from 13
cents for 300 gallons to $1.20. Buck said the more the community reduces water use during the crisis
the cheaper water rates will be in the future. "It (conservation) will lower future rate increases," Buck said. ------------------------------------------------------------------------------- web-posted Thursday, April 24, 2008 State officials delay disaster declaration By Pat Forgey | JUNEAU EMPIRE A disaster declaration for Juneau won't be coming any time soon, but
state officials are still looking for ways to bail Juneau out of a
deepening power crisis. "This is going to have a devastating impact on Juneau if nothing is
done, we all know that," said Gen. Craig Campbell, commissioner of the
Department of Military and Veterans Affairs for the state of Alaska. Campbell chairs Gov. Sarah Palin's Disaster Policy Cabinet, which met
Wednesday in Anchorage to look for ways of coping with the high power
prices brought on by an avalanche and landslide that cut transmission
lines from the Snettisham Hydropower Project. Alaska Electric Light & Power is running mostly on backup diesel
generators, at many times the cost of hydro. Juneau's mayor and legislative delegation have requested a disaster
declaration from Palin. The Disaster Policy Cabinet, chaired by Campbell and made up of the
commissioners of the departments of Commerce, Transportation,
Administration and Public Safety discussed the issue Wednesday, but
took no action, Campbell said. They'll meet again next week. "From what I'm hearing, I don't give it a real strong chance," said
Tim McLeod, AEL&P's president and general manager. Campbell said AEL&P is already moving aggressively to reconnect power
lines, and a disaster declaration will not speed that process. "As far as the work is going, a disaster declaration won't do anything
to speed it up," Campbell said. The avalanche itself doesn't appear to meet disaster criteria, he
said. It's in a desolate, isolated area where there are no health or
safety concerns. Ironically, because AEL&P was prepared for the disaster, with adequate
backup power available, Juneau is less likely to qualify for
assistance, he said. The backup generators burning fuel oil are going to be running more
heavily than ever before, but they appear to be well maintained and
capable of meeting the demand, Campbell said. "We believe the generators will be able to support that load," he
said. "It's not perfect, but I think we'll be OK." Before the next Cabinet meeting, they'll explore whether there is a
possibility of a disaster declaration solely based on the price of
electricity, or if there are other ways to mitigate that. Campbell
said that it initially appears unlikely, but experts with the
Department of Law and others will try to look for a way to qualify. "The cost of power is spiking due to the price being paid for diesel
fuel spiking; nobody in the Cabinet disputed that," he said. Some of
them had homes in Juneau, he noted. They're now looking for funds that might be available to mitigate the
cost, similar to the state's Power Cost Equalization program that
subsidizes some rural electricity costs. "We're looking for any mechanism we can to reduce that impact,"
Campbell said. State Rep. Beth Kerttula, D-Juneau, said a disaster declaration from
the governor is an important step in getting state or federal help
with power costs, but it's not the only option. Campbell and Kerttula both said they've notified U.S. Sen. Ted
Stevens, R-Alaska, and other congressional offices that they're
seeking federal help. Stevens did not respond to calls to his Washington, D.C., office
Monday and Wednesday. Campbell said state law did not allow a state disaster declaration
based solely on economics. After a fisheries disaster declaration in Western Alaska a decade ago,
in which state aid was provided, the rules were changed to disallow
economic disasters, Campbell said. "The Legislature changed the rules on us after that," he said.
Add this page to your favorite Social Bookmarking websites  |
