Homer Electric Association appears to be going down a path that is contrary to the wishes of the membership in regards to electricity production. The recent sharp increase in our rates underscores the urgency of getting the direction turned around. The old systems of natural gas, oil and coal no longer go where we want to go.
Our rates have increased substantially because we rely heavily on carbon intensive fuels. In the 1980s, HEA locked into a 30-year contract with Chugach when natural gas was plentiful and cheap. Since then, natural gas prices have skyrocketed, and HEA has spent hundreds of thousands of ratepayer dollars trying to get out of the contract. Now we're hearing the same rationales for a long-term contract to buy electricity from the Healy coal plant.
But the cost of coal is only going up. Burning coal produces mercury and other toxins, as well as carbon dioxide, a greenhouse gas, and new rules will add significant costs to our rates. Additionally, the Healy coal plant did not work 10 years ago, according to the Golden Valley Electric Association, and it's been mired in litigation ever since. The cost of bringing this plant back on line will cost tens of millions of dollars, and no jobs will be produced on the Kenai Peninsula by purchasing electricity from Healy.
There are now safe, reliable and locally available renewable energy technologies that are price stable and viable today. Wind, tidal, wave, current, solar, geothermal, hydro and small scale producers could all provide power to our utility. Most importantly, renewables provide flat-cost power, so we won't see our rates rising as fossil fuel prices invariably increase.
Furthermore, energy conservation and demand-side management could reduce the amount of capacity required, thereby lowering our rates even more. With a sound mix of base load capacity from renewables such as hydro, tidal and geothermal, along with the "intermittent" renewables such as solar, wind, conservation, etc., HEA can meet the entire demand of its members. As an interim measure, while these systems are being investigated and installed, we could continue using the systems that have served us until now. Extending our current agreements for five or 10 years is preferable to locking ourselves into a 50-year agreement.
Wind energy is getting better and cheaper with every passing year. More than eight giga-watts of wind energy production was added in the United States in 2008. According to the Alaska Energy Authority, the Bradley Lake area has class 5 Excellent (7.5 - 8 meters/second) up to class 7 Superb (greater then 8.8 m/s) wind potential. In addition, HEA already has transmission lines, a housing camp, maintenance workers, and a hydroelectric facility which is producing the least expensive electricity in Southcentral Alaska. A wind-powered pumped storage system at this location would increase the base load capacity of our cheapest power source.
Geothermal options are being investigated at Mount Spurr and Lake Chakachamna. Heat from the center of the earth is extremely reliable, renewable and could be used to meet base load demands.
Ocean technologies have been in use since the 1960s, and have become more economically viable in the past few years. We have some of the highest tides in the world, currents in Cook Inlet are quite strong, and waves are constantly pounding our coastline. There is no downside to using the ocean right outside our door to produce the energy that we need now and into the future.
Our Governor is calling for Alaska to achieve 50 percent renewable capacity in the next 15 years, and our president is providing billions of dollars to help make this happen. HEA should be a leader in creating flat-cost electricity from renewable power, and helping to drive the clean energy technology and sustainable jobs that are the future of Alaska.
Buying coal at ever increasing prices makes no sense when compared to utilizing facilities that use rain, snow, wind, geothermal and the ocean to produce the cheapest electricity in Southcentral Alaska.
Jim Levine is a licensed engineer in Alaska and California. He works full time as a construction project manager in Homer. He writes, "I am so interested in the direction that HEA is taking regarding energy production that I have submitted my application to run for the HEA Board of Directors in this current election."
