RUSHED SOUTHERN INTERTIE VOTE WANTED BY CHUGACH ELECTRIC MANAGEMENT DELAYED BY QUESTIONS
SECRET 2/98 ECONOMIC STUDY RELEASED

As it turned out, the Chugach board unexpectedly released a confidential 2/98 cost-benefit report on the Southern Intertie by DFI -Aeronomics that has surprisingly been kept secret throughout the entire EIS process until now.  The EIS was completed in July 2002.

The existence of the study commissioned by Chugach became known when Director Chris Birch moved for its release so the public could better understand project economics.

The board also delayed the construction approval requested by management after testimony from Chugach members Alan Mitchell, an expert in Intertie economics and Phil Kaluza, a former member of the Nome Joint Utilities Board and a board member of the Alaska Public Interest Research Group. Both said the public needed to be assured that the $70 million state subsidy for the line is being wisely spent and that there must be time to review the information in the just released report (which won't be available for some time while Chugach removes material from it not released in last night's vote).

Portions deleted from the management resolution by the board are in red italics: 

WHEREAS, Chugach Electric Association, Inc. has determined the necessity to construct a second transmission line (Southern Intertie) between Anchorage and the Kenai Peninsula;

WHEREAS, Chugach Electric Association, Inc. is party to the Intertie Participant Agreement with five other utilities to construct the Southern Intertie;

WHEREAS, the Intertie Participant Agreement provides for reconsideration of the commitment to construct at the “decision date” by all parties;

WHEREAS, the route selection, environmental work, cost estimates and other project activities leading to the “decision date” have been completed;

WHEREAS, Chugach Electric Association, Inc. supports the TESORO route as the selected route for the intertie;

WHEREAS, Chugach Electric Association, Inc. has determined that participation in construction of the tie is beneficial to its members;

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Chugach Electric Association, Inc. that the General Manager is authorized to commit to Chugach’s continued participation in the construction of the Southern Intertie under the provisions of the present Intertie Participant Agreement.

Please send comments or questions to Chugach Consumers