Rates paid by Homer Electric Association users will rise by 3.25 percent beginning Feb. 1. The Alaska Regulatory Commission, which permits rates charged by public utilities, allowed the rate raise on Friday.
HEA Manager of Regulatory Affairs John Draves said the temporary increase will be in effect until HEA can negotiate other ways of recovering costs — either with the permanent 1.8 percent rate increase that HEA is currently proposing to the Regulatory Commission, or by charging other utilities that transmit power over HEA lines.
Despite the scanty state spending expected in 2016, this year’s state capital budget may provide funding for long-deferred upgrades to Kenai’s wastewater treatment plant.
Built in 1981, Kenai’s wastewater plant discharges into Cook Inlet from an outlet in the Kenai beach mudflats. The ammonia in this discharge exceeds the plant’s August 2015 permit from the Alaska Department of Environmental Conservation, which allows Kenai five years to bring the plant to the ammonia emission limits.
Homer Electric Association decreased its rates starting Jan. 1, while an unresolved proposal that may raise them remains suspended until July.
The cost of power adjustment price that HEA members pay for a kilowatt-hour of electricity was about 7 cents. On Jan. 1 it dropped to about 6 cents. For a member using 550 kilowatt hours a month (the average, according to an HEA press release), the decrease will save around $6.88 each month.
KENAI — Setbacks for commercial marijuana establishments may become more tightly regulated in Kenai than they are at the state level.
Alaska’s regulations for commercial marijuana require establishments to be be 500 feet away from schools, youth centers, churches and correctional facilities. In Kenai, a proposal from the Planning and Zoning Commission would add setback requirements for seven additional facility types and would create a system of measuring setbacks. The Kenai City Council may reduce this list when its members debate and vote on the proposal.
After considering several possible paths for a new highway section around Cooper Landing, the Alaska Department of Transportation named its preferred path for the new road on Friday.
On Friday, the Regulatory Commission of Alaska ruled that Cook Inlet Natural Gas Storage Alaska can sell 2 billion cubic feet of gas unexpectedly discovered in its underground storage facility, and that the profit will be divided between CINGSA and the four utility companies that use it for storage.
With Alaska Medicaid cut by $51.9 million in this year’s state budget, Kenai Peninsula Medicaid providers are seeing the first financial effects of the underfunded program in the elimination of annual increases to their Medicaid reimbursement rates.
Presenters at a June 17 joint meeting of the House and Senate Resource Committees identified Cook Inlet companies as heavy users of oil tax credits.
Three Alaska Native subsistence users addressed an audience of national wildlife policy advisers last week about the risks of climate change to subsistence-based communities, what those communities are doing to adapt, and how their adaptations may be helped or hindered by state and federal government.
The pipeline proposed by the Alaska LNG project would bring North Slope natural gas to liquefaction and export facilities being considered for construction in Nikiski.
Where the liquefied natural gas, LNG, could go from Nikiski is still to be determined, but its potential destinations increased on Friday when the Alaska LNG project was given a permit by the U.S. Department of Energy to export a maximum of 20 million metric tons of LNG per year to countries lacking a free-trade agreement with the United States.
The proposed Cook Inlet Harbor Safety Committee is another step closer to reality. After writing and receiving comments on a draft charter, the group’s convening committee is searching for another essential organizational element: members.
After two days of meetings in Kenai City Hall between Kenai administrators and regional and national officials from the Army Corps of Engineers, the two parties presented an agreement to share the cost of a study crucial to a collaboration between Kenai and the Corps to halt bluff erosion.
SOLDOTNA — Kenai National Wildlife Refuge staff said that their new visitor center, which began construction in 2013 and opened to the public for the first time on Friday, is not only larger than their previous center but more interactive.
Matt Connor, the refuge’s chief of visitor services, said that the old visitor center was “just kind of a little cubby-hole area with some exhibits around the corner. It was 30 years old. The exhibits didn’t really tell quite the same story.”
Although few specifics of the Alaska Liquid Natural Gas Project’s contracting procedures have been worked out, Alaska LNG contracting engineer Dan DeVries felt confident telling a diverse gathering of Kenai Peninsula contractors, service-providers and business owners that “for this project, we (Alaska LNG) will need basically everything.”
In addition to making an estimated 5,830 Kenai Peninsula residents eligible for Medicaid, the Medicaid expansion being debated in the Alaska Legislature could have behind-the-scenes effects on a health care system currently dealing with 9,239 unprocessed applications.
Plans for a controversial hydroelectric plant are available for public examination in their most detailed form to date. On March 27, Homer Electric Association, working through its subsidiary Kenai Hydroelectric, submitted a draft of its license application for the Grant Lake hydroelectric project to the Federal Energy Regulatory Commission (FERC), the national power plant licensing agency. The draft license application contains plans for the Grant lake project that HEA has been developing since it received a preliminary study permit from FERC in 2009.
KENAI — The U.S. Fish and Wildlife Service has criticized the City of Kenai’s proposal for a road in a wetland near the Kenai River.
KENAI — A directional drill rig is tunneling into the ground along Bridge Access road where it will run underneath the Kenai River and connect a portion of the four-mile pipeline that Enstar Natural Gas Company began laying in February.
Workers with Arizona-based Southeast Directional Drilling worked on Tuesday to run the drill and make way for a pipeline which will connect the Cook Inlet Natural Gas Storage Alaska facility, or CINGSA, and Enstar’s transmission pipeline.
On Monday, House Speaker Mike Chenault, R-Nikiski, introduced a bill to the state House of Representatives that would create a tax credit for ammonia producers. According to its text, House Bill 100 would entitle “a taxpayer that owns an in-state processing facility whose primary function is the manufacture or sale of ammonia or urea” to receive a tax credit equal to the royalty paid by that manufacturer’s gas suppliers on their state leases.
Enstar Natural Gas company has begun work on a gas transport pipeline alongside Bridge Access Road in Kenai. According to Enstar communications manager Lindsay Hobson, the 16-inch diameter pipeline will lie four to five feet underground and run four miles, connecting Enstar’s Cook Inlet facilities to the CINGSA gas storage area in Kenai. Approximately 3,000 feet of the pipeline will run beneath the bed of the Kenai River.