Electrical intertie is not economical, provides only short-term benefits
During almost nine years as a member on the Chugach board of directors, I've watched and opposed attempts to spend the Alaska Electrical Intertie Grant. My belief is the project will waste scarce budget resources; in short, it will cost more than is justified by expected returns.
We are now at the decision point where all electric utilities are attempting to get their snouts in the public hog trough so $100,000,000 (or more) in public funds can be spent on this uneconomic intertie project. In this period of budget constraints this should concern legislators. It should also concern voters.
The intertie would provide short-term benefits to union contractors. Nonunion companies will be barred from bidding or working on the project. Bloated construction costs will result through suppression of competition. This restriction makes a mockery of the free, open and competitive bidding requirement within the Chugach Electric bylaws.
The electric utilities believe that a state of Alaska grant is "free money"; this is dead wrong. The utilities that support the project obviously believe the road to prosperity is paved through the expenditure of tax dollars and increased electrical rates.
Where are our "balance-the-budget representatives" when we need them? Do they exist? We will see.
-- Ed Granger
Anchorage