Chugach Consumers
DETAILED SOUTHERN INTERTIE EVENTS & DOCUMENT LOG     Northern Intertie (Healy-Fairbanks)     Southeast Intertie (Juneau-Hoonah; Petersburg-Ketchikan)
3/3/04 Anchorage Daily News - Power line [Editorial] - $40 million subsidy wasn't enough to rescue this uneconomic project - The controversial southern intertie has met its just fate. The proposed power line between Anchorage and the Kenai Peninsula never stood a chance unless government paid a huge share of the bill. But not even $40-plus million of state money, set aside through political horse-trading in the waning days of Alaska's oil boom, was enough to lift the economically dubious project off the drawing boards.


TOM KIZZIA - Southern intertie is kaput - POWER LINE: Utilities abandon project, return $40 million to state - Railbelt utilities have finally given up on the southern intertie, a second Anchorage-Kenai electric transmission line once touted by legislators as a way to subsidize power consumers with state money.  Six utilities told the state in a letter on Wednesday they are abandoning the project after more than a decade and $7 million in studies..."I think the right thing has been done for the public," said utility critic Ray Kreig, a former Chugach Electric Association board member who rode the industry hard over its intertie plans. "I hope the public will see this as an indicator of other wastage taking place," he said...But a handful of critics challenged the economics of the project, saying it seemed more like a subsidy of construction companies than of utility consumers. They accused the utilities of exaggerating benefits in their studies.  One of the outspoken early critics was Alan Mitchell, who had a state contract to represent consumer interests. He testified in 1991 that if the project was such a good one, the utilities should borrow the money and build it themselves. Consumers would be better served by using the state money to retire existing utility debt, he said.
2/15?/04 New "decision date" for the Southern Intertie - [this new date may not be legal]
11/21/03 IPG Meeting - Extends date to 2/15?/04 - 
New "decision date" for the Southern Intertie - [this new date may not be legal]
Chugach Electric Board meeting - CEO Joe Griffith recommends that Chugach pull out of the Southern Intertie then seven days later says stay in! 
7/29/03 Chuck Legge - Frontiersman [political cartoon] - I don't think so  


Anchorage Daily News - Hyperbole - ML&P's Posey deserves a prize [Editorial] - Municipal Light and Power Director Jim Posey deserves some kind of prize for fanciest flight of hyperbole in defense of a government subsidy..."It's like owning a home down on the Kenai and I cannot get there," Posey said. "The airplanes don't fly, the road is closed and I am still paying the mortgage."...With his analogy, Mr. Posey suggests spending $119 million on another road to make sure he can get to his second house on the Kenai 24 hours a day, 365 days a year. If that's such a good deal, he and his fellow utility managers should spend their own ratepayers' money to make it happen.  BOTTOM LINE: Hyperbole can't make a bad deal good.
7/17/03 Sean Cockerham - Anchorage Daily News - Loss of state intertie funds delays decision - PENINSULA: Utilities to rethink massive power line project - ML&P General Manager still trumpeting his claim that Bradley Lake is a stranded ML&P asset: "It's like owning a home down on the Kenai and I cannot get there," Posey said. "The airplanes don't fly, the road is closed and I am still paying the mortgage."  Same by Associated Press  
7/16/03 Kyle Hopkins - Fairbanks Daily News-Miner - Utility vote tabled  
7/15/03 Alaska Public Radio -- MEA Tentatively pulls out of Southern Intertie - General Manager Wayne Carmony says he isn't sure IPG vote to extend deadline is valid.
7/15/03 Set as the "decision date" by the Intertie Participants Group (IPG, the committee of all Railbelt electric utilities) on 1/2/03.  It is the last possible date for a utility to drop out of the Southern Intertie.  CHANGED TO 11/21/03
7/14/03 Chugach Electric Special board meeting to consider Southern Intertie - first scheduled 7/11/03 - 4:00pm at Chugach Headquarters   CANCELLED AFTER IPG MOVED THE DECISION DATE TO 11/21/03
7/14/03 Special meeting of Intertie participant's Group called by Chugach Electric moves decision date to 11/21/03.  This is a highly controversial move.  Chugach thinks only a majority vote can do this;  the agreement itself seems to be clear that only unanimous agreement can do this.  IF THE PROJECT IS DEAD WHY DO THIS???  

Seward City Council meeting -- Recommendation from general manager Dave Calvert is for Seward Electric System to withdraw from the Southern Intertie.  Chugach Electric claims Seward will get $6 million in net benefits (see page 3); Seward itself doesn't believe it will have any net benefits for them!  Pulled from agenda "due to change in drop dead date".
7/14/03 Matanuska Electric board voted to withdraw if the "decision date" is determined to be July 15, 2003. If it is determined to be November 21, 2003, MEA is still in the SI.  Board was apparently told by management that MEA needed to remain part of the continued discussions of cost estimates, etc.
7/13/03 Chugach Consumers - Letter to Russell Nogg, ML&P Commission - UPDATE #1 - Deputy City Manager Mike Abbott said the MOA has no intention of supporting the construction of the Southern Intertie.  What we've heard so far is maneuvering to try and save the money and get it reappropriated for some other electrical project. This has such a remote chance of being successful in the adverse state budgetary environment we're in as to hardly be worth trying.  Three out of the six utilities have stated they are withdrawing and the Municipality of Anchorage indicates it has "no intention of supporting construction".  If there is a vote to extend the deadline, how will these [remaining] utilities explain what they are doing to AIDEA, which has the power to recover the money at any time by declaring a lack of progress on the project, or politically to the legislature and the governor? And possibly even to a judge in court later.


Chugach Consumers - Letter to Anchorage Mayor Mark Begich + Point Paper - The idea that ML&P has no existing financial obligation because the Assembly would have to approve any monies required is in error. A $20 million commitment appears to have been made by the Assembly in 1993 and is at risk.  ML&P now has only one way to cleanly exit this project which has no positive benefits for Anchorage: It must formally withdraw before the firm July 15th deadline.  If a decision to withdraw is made after the deadline, then ML&P additionally could well be obligated to return to AIDEA its ultimate share of the $7 million in engineering and environmental costs that otherwise can be paid out of the grant principal.  The claims made by general manager Jim Posey that ML&P invest in the Southern Intertie because its Bradley Lake hydro assets are "stranded" are without merit.
7/9/03 Chugach Electric Finance Committee meeting was to have taken place but was cancelled on 7/8/03 so NO OPPORTUNITY FOR THE PUBLIC TO HEAR WHAT BOARD IS THINKING!  Legislative Committee report from Chugach lobbyist substituted.   Meeting immediately taken into executive session to exclude the only public attendee, a Chugach Consumers representative.  No discussion or statement on Southern Intertie issued. 
7/8/03 Homer Electric Association board meeting ratifies formal notification of withdrawal from the Southern Intertie [their earlier statement]

Don Zoerb - Matanuska Electric Association - Southern Intertie presentation to board of directors and management recommendation - Corrections made in previous Chugach in-house claims for Railbelt-wide net PV benefit (loss):
  Chugach claim MEA correction
11/18/02 analysis $21.6 million benefit $34.1 million loss
6/5/03 analysis $6 million loss $58.8 million loss

CONCLUSIONS: No discernable benefits to MEA members; multi-million dollar negative financial impact ; significant exposure to cost overruns; will require future rate increases.  Recommends MEA drop out.


Rindi White - Frontiersman - Homer Electric pulls plug on Southern Intertie project - Homer Electric Association board president and Soldotna Mayor David Carey: "We have only on two days, ever used more power than what we buy," Carey said. "Every single month we pay for 73 megawatts of power, yet we almost never use it."  Those [and other] changes have also caused the co-op's need for the Southern Intertie project to wane.


Chugach Consumers - Letter to Chugach Electric Board of Directors + Point Paper - Chugach now has only one way to cleanly exit the project without wasting more of its members money: It must formally withdraw before the firm July 15th deadline...If a decision to withdraw is made after the deadline, then Chugach could well be obligated to return to AIDEA its ultimate share of the $7 million in engineering and environmental costs that otherwise can be paid out of the grant principal.  Clearly, more and more of the Railbelt, and in fact the state at large, are seeing this project for what it is, a money pit that will not help electric ratepayers or the state's economy in the tougher times ahead.

Marcus K. Garner - Peninsula Clarion - HEA changes position on intertie project - "We have a great deal more power than we need at this time," [HEA board president David] Carey said. "And if we had an avalanche or if something terrible happened, we would not be stranded."  He expects the cooperatives decision to be unpopular with the other utilities involved because it could conceivably halt the project that would traverse much of HEA's service area.  "We absolutely do anticipate that HEA will catch some flak," Carey said. "But we felt it was correct for our consumers for us to withdraw our support."

Jennifer Mitchell - Alaska Public Radio - Homer Electric drops out of the Southern Intertie - Also says that the legislature wiped out the entire remaining Railbelt Energy fund and it will take a three quarters vote of the legislature to recover that money.  What happened to the Power Cost Equalization fund as well?

Tom Kizzia - Anchorage Daily News - Intertie plan gets jolt from backer - HOMER: Electric company says $119 million project no longer makes financial sense - "HEA said the economics had changed in the past year.  While the project initially had positive benefits, changes in project costs, financing options, generation capacity and the state's economic climate have diminished the value of the particular, the addition of a 39-megawatt cogeneration plant in Nikiski improved local reliability without the powerline."
(but not available until 7/8/03)
Chugach Electric Association - DRAFT 2003 Southern Intertie Economics Analysis Update (page 1 to 7)  (page 8 to 15) - Comparison chart on page 5 of four Chugach studies displays arbitrary failure to properly compare the "secret" study to the pumped up numbers from the other reports.  

Peter Dunlap-Shohl - Anchorage Daily News [political cartoon]   


Tom Kizzia - Anchorage Daily News - Utilities may sue state over intertie - "This year's Legislature, pushed by Gov. Frank Murkowski, decided the [$28.5 million in] interest should be used instead to help balance the state budget...Murkowski spokesman John Manly said..."It's pretty clear the state's not going to be able to provide money for these projects indiscriminately anymore,"...

"Critics...complain the utilities have refused to take seriously recent criticisms of the line.  "If this thing isn't dead by now, if they're still going to try to pull a rabbit out of that hat, the ratepayers are owed something more than the soft PR and lobbying that's been going on," critic Ray Kreig, a former Chugach board president, said last week. "They won't talk about it, because they know their argument crumbles."

"Murkowski recommended taking back the interest money. The Legislature put it in a debt retirement fund, which helped get nearer to the governor's budget target.  In a related move, the Legislature swept the money remaining in the Railbelt Energy Fund -- more than $20 million -- into the state's Constitutional Budget Reserve as a part of this year's session-ending budget deal. 

"Matanuska Electric Association, the only Railbelt utility to show reluctance about the southern intertie, said last week it feels vindicated in calling for a delay last winter. Loss of the interest money and the higher construction cost estimate show the project is on shaky ground, said MEA spokesman Mike Pauley.  "It certainly doesn't bode well for the project passing any cost-benefit analysis," Pauley said.

"The higher construction cost estimate was the result of factoring in recent worldwide trends in transmission line building and the experience of building the Northern Intertie, said Lee Thibert, Chugach's senior vice president for power delivery.

"[A] utility spokesmen said last week they are exploring...federal aid for the project."

5/21/03 Senate passes operating budget (HB75) and corrects attempt by the House to reverse Gov. Murkowski's action (reclaiming the interest).  Senate appropriates the $27 million to the Alaska Debt Retirement Fund.  Bill text (see Section 21c, Page 65):  

"Sec. 18. FUND TRANSFERS. (c) The amount of the net income earned since August 11, 1993, on the appropriation made by sec. 2(a), ch. 19, SLA 1993, to the Department of Administration for a grant to the Chugach Electric Association and held by the Alaska Industrial Development and Export Authority is appropriated to the Alaska debt retirement fund (AS 37.15.011)." 

4/27/03 Phil Kaluza - Letter to the editor - Anchorage Daily News - Second intertie is a boondoggle with high costs, dubious benefits - "The utilities claim the construction of this extra intertie will improve reliability. How much better will it be? Why won't they tell us?  The utilities claim this project will generate jobs. But $60 million to install the underwater cable will go straight to an outside contractor. So much for Alaska jobs."
4/26/03 Robert W. Rutherford - Anchorage Daily News (Voice of the Times) - Southern Intertie important to Alaska - "Our governor's proposal to take the accumulated interest of the Southern Intertie grant for other purposes must be a severe shock to the participants group."   NOTE:  Mr. Rutherford's wife is Dora Gropp, Manager of Transmission & Special Projects at Chugach Electric.  She is in charge of the Southern Intertie project.


Anchorage Daily News - Intertie interest, It's BAAACCK! House pushes $28 million for doubtful project [Editorial] - No one expects the state House to rubber-stamp every single part of Gov. Frank Murkowski's budget proposal. But when the House decides to go its own way, it could at least pick a more worthy cause than the southern Railbelt intertie...The governor's recent position paper on the southern intertie notes that an important study affecting the need for the project is still under way. "Provided the utilities have developed sufficient justification for the project," the paper says, he's open to discussing funding mechanisms...In this spending dispute, Gov. Murkowski holds the upper hand. He can strike any particular appropriation from the budget with his line item veto. If the House's $28 million set aside for the southern intertie ever makes it to the governor's desk, he should have his veto pen ready to go.
4/15/03 Deadline for completion of independent third party construction cost estimate review and pricing estimates of owner-furnished equipment and materials.  
4/10/03 House attempts to reverse Gov. Murkowski's action (reclaiming the interest) by passing the operating budget (HB75) appropriating the $27 million back to the Railbelt Energy Fund.  Bill text (see Section 18c, Page 57):  

"Sec. 18. FUND TRANSFERS. (c) The amount of the net income earned since August 11, 1993, on the appropriation made by sec. 2(a), ch. 19, SLA 1993, to the Department of Administration for a grant to the Chugach Electric Association and held by the Alaska Industrial Development and Export Authority is appropriated to the Railbelt energy fund (AS 37.05.520)." 

Energy Info Source's - Transmission Insight - Alaska Battles Over Intertie - Whether the money is available or not, Kreig doesn't think building the line is necessarily the best use for it. "Considering the deterioration that has occurred in Alaska's financial condition since the original appropriation in 1993, Southcentral utility boards and local governments should look very hard at the intertie and ask the Legislature to reappropriate the $70 million in state funds already pledged to the project. The money would better benefit Southcentral Alaskans if used to reduce utility or municipal and school debt by $500 per household," said Kreig.


Anchorage Daily News - A gutsy budget move, Governor reclaims $27 million from controversial power line [Editorial] - A 1998 study...found that a dollar spent on the project would produce only about 50 cents' worth of benefits. (No wonder the utility kept the study secret for four years. And no wonder the utilities pursuing the intertie want the state to pay most or all of the cost.)...The governor and Legislature can find better uses for the money that was set aside for the southern intertie.


Tom Kizzia - Anchorage Daily News - Murkowski plan a blow to intertie - $27 MILLION: Utilities to work to restore interest earned -- Gov. Frank Murkowski's budget would pull out a major financial underpinning of the proposed Anchorage-Kenai Southern Intertie by taking back $27 million in interest...In a rare burst of cross-aisle applause, Rep. Les Gara, D-Anchorage, who started pushing last month to use the interest for the state budget, supported Murkowski's decision Monday. He said he would object to appropriating additional funds for the power line.  "This isn't the time in our state's history when we can afford boondoggles," Gara said.
3/6/03 Resource Development Council -- Southern Intertie presentation by Joe Griffith (Chugach) and Jim Posey (ML&P) --  Questions they refused to answer  
2/20/03 Seward Phoenix Log - Chugach asks Seward to join southern intertie
1/27/03 Electric Transmission Week - Costs, benefits of Alaska intertie still in dispute; final
decision postponed to July to allow for project review
- Ray Kreig, who served on the Chugach Electric board from 1994-2000, balked at the utility’s tactics and explanations. “The [original] DFI report was fine with Chugach management when they briefed it to the board in executive session on February 16, 1998,” Kreig said in written testimony to the board during the Jan. 2 public comment period. “The sliming of the report by Chugach should be considered to be nothing more than spin and damage control until the necessary independent review has run its course.”






Anchorage Daily News - Southern intertie [Editorial] - Good reason to question this Railbelt energy project - A 1998 utility company study that was kept secret for four years concluded the southern intertie would produce barely 50 cents' worth of benefit for every dollar spent...The project's defenders say a deal's a deal, even if it means throwing good money after bad. The day when Alaska could get away with such a cavalier approach to spending money is long past...

But for purposes of argument, let's accept the basic framework of this supposedly unbreakable deal. Let's grant that regional equity requires the money to be spent to benefit the southern Railbelt. Let's grant that it has to be spent to supply cheaper energy. Let's even grant that it has to be spent on a particular type of energy, namely electricity. Granting all that, it is still not clear that the southern intertie is the best way to do it.

The money could be used to retire debt at the region's electrical utilities. It could be used to upgrade and repair the existing high-voltage power line between the Kenai Peninsula and Anchorage. It could be used to install a centralized power dispatching system, to ensure that the most efficient mix of Railbelt power plants is used to meet electricity demand as it fluctuates during the day and during the year.

The new Anchorage-Kenai intertie should, at minimum, have to prove that it is a better investment than those options. That will require an independent, rigorous look at the intertie's costs and benefits and how they compare with the alternatives.

Intertie II - Is $23 million of interest money legally available? ...the legality of spending the interest money is one more important question facing an already questionable project.



POINT COUNTERPOINT Anchorage-Kenai Intertie? - Anchorage Daily News 
  • Eric P. Yould, Alaska Rural Electric Cooperative Association - Intertie promises to provide affordable power to Railbelt - "A project to benefit Alaska and Alaskans for the next 50 years is moving forward, thanks to the vision and efforts of legislators and electric utilities."
  • Ray Kreig, Former Chugach Electric Board Member - Southern Intertie's benefits likely not worth the cost - "Clearly the Southern Intertie has some benefits. The question is whether they are worth the cost. Are there better uses for $125 million in public and ratepayer funds? History indicates that cost overruns are highly likely, totally at ratepayer expense."
1/21/03 Rindi White - Frontiersman - Intertie project opposed - [Chugach spokesman] Phil Steyer disagreed ... the interest earnings were unusable...although the interest earnings were not specifically mentioned in the appropriation language, they were discussed elsewhere.  "There's no question in our minds about that," Steyer said. 
1/19/03 Alan Mitchell - Southern Intertie Benefit/Cost Studies (Chart) 
1/15/03 Chugach Electric recants on commitment to do the independent, third party cost review promised by 4/15/03:  see item 1 in the resolution passed.  
1/15/03 Regular Chugach Board meeting - Update on Southern
Intertie Studies
- Reported that it was a rushed through, very rapid presentation with very little time for questions or interest stimulated from the board. 
Tim Bradner - Alaska Journal of Commerce - Southern Intertie deadline set - Joe Griffith, Chugach's general manager, said the ["secret report"] wasn't withheld from the public. It was done by Chugach's board several years ago and not released because no one ever asked for it, Griffith said.  When a request did come a few weeks ago it was released, he said.  The numbers are different because one study measured benefits for the entire railbelt, which is a larger number, while the other study measured benefits only to Chugach customers, which is a smaller number, Griffith said.
1/8/03 Chugach Board Finance Committee - Summary of costs to date presentation - $7.8 million spent to date (Chugach paid $673,000).  $320,000 for lawyers.  Has line schematic showing where underground cable on land to be used.

Tom Kizzia - Anchorage Daily News - Utilities question Kenai intertie cost - POWER LINE: Group to seek more state funds for $100 million project.  Critics asked the utilities ... to postpone the decision, saying the project had been justified using trumped-up benefit claims. They cited an internal consultant's study for Chugach that found only $57 million in benefits, compared to the public study finding $143 million in benefits.  Chugach officials say the internal study, prepared four years ago but released only last month, addressed ratepayer impacts only and seriously undervalued benefits. But a consultant involved in both studies said last month the more conservative internal study was more accurate.  The Alaska Public Interest Research Group may challenge the project's environmental impact statement for ignoring the more pessimistic numbers...

APRN Alaska News Nightly - Jessica Cochran - Chugach GM Joe Griffith: "An Intertie is like a pipeline or a port or an airport or a highway and there's not a one of them that has a positive cost benefit analysis. So they are all.."  Chugach Electric admits, Intertie is a loser.

Meeting of the IPG which set the "decision date" for final action by all the other utilities as July 15, 2003.  All  public testimony was against the project and/or rushing to set the "decision date".  Utility vote was 5-1 (with only Matanuska Electric Association voting no).   Resolution passed.
Matanuska Electric Association letter objecting to the "haste with which the IPG is moving forward with efforts to declare a "decision date" for construction of the proposed Southern Intertie project...  A credible cost estimate for the Southern Intertie has not yet been prepared...  Forcing such decisions to be made before this information is made available would be a costly disservice to all of Southcentral Alaska's electric consumers."  Text version.  
12/28/02 Ed Granger - Letter to the editor - Anchorage Daily News - "... 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."
Meeting of the Intertie Participants Group (committee of all Railbelt Electric Utilities) in Chugach Electric Board Room    RESCHEDULED AGAIN TO 1/03

Tom Kizzia - Anchorage Daily News - $100 million too much for power line to Kenai? SUMMIT: Six Railbelt power firms to discuss feasibility of Kenai to Anchorage project - In 1998, a state-funded study concluded a second Kenai intertie would bring $143 million in benefits to the Railbelt. Federal regulators cited those numbers in approving the project this fall.  But just last week, Chugach released an internal analysis done in 1998 that found only $57 million in benefits.  Steve Haas, the consultant involved in both the studies, said last week the more pessimistic internal study was probably the more accurate of the two. It was designed to look at the impacts on Chugach ratepayers and made conservative assumptions, he said. The public study, which updated a decade-old analysis, was more "generous," he said.  "Without the state grant, the line would be difficult, if not impossible, to cost justify," the internal 1998 study said.  Annotated PDF version including corrections.
12/16/02 Meeting of the Intertie Participants Group (committee of all Railbelt Electric Utilities) in Chugach Electric Board Room    RESCHEDULED TO 12/20/02
12/15/02 Joanna Markett - Alaska Journal of Commerce - Intertie expansion planned for Hoonah, Kake - Not Southern Intertie but gives information on similar project history in Southeast. 
12/12/02 ML&P Commission meeting -- Former board president contradicts Chugach presentation and gives background to 2/98 DFI study.    
12/10/02 HAL SPENCE - Peninsula Clarion - Power-ful topic on tap for assembly - Kenai Boro resolution asks for extra substation on Southern Intertie.

1998 CHUGACH ELECTRIC "SECRET" COST - BENEFIT STUDY OF THE SOUTHERN INTERTIE RELEASED --  STUDY KEPT CONFIDENTIAL BY CHUGACH under general manager Gene Bjornstad for almost 4 years through the federal EIS process identified only $56.7 million in benefits while during the same time period Chugach was PUBLICLY SAYING benefits were $143 million on a project costing $106 million to construct!!!  Decision Focus, Inc. - Aeronomics, Ratepayer Impacts of Proposed Transmission Projects, Final Report; Includes Chugach Electric Association's Comments.    See:    Side by side comparison of the public and secret benefit study numbers.

Chugach board unexpectedly releases confidential 2/98 cost-benefit report on the Southern Intertie.  After member testimony, board also delays construction approval requested by management.  The planned SOUTHERN INTERTIE ECONOMICS presentation was delayed.
11/18/02 Briefing by Chugach Electric (Thibert & Fouts) on Southern Intertie to Chugach Consumers.  SOUTHERN INTERTIE ECONOMICS slide presentation + Preliminary Economic Evaluation Report of the Southern Intertie for the Chugach Electric System (November 12, 2002).
11/17/02 MATT TUNSETH - Peninsula Clarion - Intertie startup slated for 2004 - Connection linking peninsula to Anchorage favors inlet route.  Also in 11/24/02 Alaska Journal of Commerce.
10/21/02 Tim Bradner - Alaska Journal of Commerce - Power line to Kenai wins approval
10/9/02 VALUE OF RELIABILITY -- Chugach Board Finance Committee Presentation -- Reliability is most difficult to value and has a big affect on the cost - benefit ratio of the interties. 
10/2/02 RUS Record of Decision - Tesoro Route + Crossing C chosen
9/11/02 US F&WS Record of decision - Enstar Route Denied
8/19/02 SOUTHERN INTERTIE UPDATE -- Chugach Board Finance Committee Presentation
  • Jan 2003 – Chugach & IPG Decision to Construct
7/02 Southern intertie project : final environmental impact statement: Washington, DC, July 2002.  v. 1. [Main report] -- v. 2. Mitigation Plan. U.S. Rural Util. Service, et al.

  See especially: Vol. 1, Section 2.2.1, Project Costs and Benefits (pages 2-1 to 2-17) includes comments discarding battery system (BESS) as an alternative.

12/6/01 ARECA Resolution 02-21 supporting Southern Intertie 

Southern intertie project : draft environmental impact statement: Washington, DC, September 2001.  v. 1. [Main report] -- v. 2. Appendices, drawings, maps and simulations.  Includes bibliographical references (R-1 - R-30) and index. Also in CD version. U.S. Rural Util. Service, et al.

  See especially: Vol. 1, Section 1.4, Project Benefits and Costs (pages 1-29 to 1-32)

8/10/01 Jon Little - Anchorage Daily News - Project may hurt wildlife - INTERTIE: Refuge managers favor alternate route for cheaper power - 
10/20/00 David Whitney - Anchorage Daily News - Delegation's deal-making pays off - Compromises by Murkowski, Young win approval for electrical power grid - Washington - In the world of congressional deal-making, getting from Point A to Point B isn't always a straight line.  Such was the case this week when Alaska Sen. Frank Murkowski and Rep. Don Young won approval of a $384 million authorization for an electrical power grid for Southeast Alaska that no one else in Congress seemed to want.- Not Southern Intertie but gives information on similar project history in Southeast.

Decision Focus, Inc. - Aeronomics, Update and Reevaluation of the Economic Benefits of Southern Intertie ProjectClaims $143.5 million in benefits from the Southern Intertie!   Written by same consultants three weeks later and submitted to the PUBLIC EIS process.  Board not told about this one even though both studies were paid for by Chugach!  

Decision Focus, Inc. - Aeronomics, Ratepayer Impacts of Proposed Transmission Projects, Final ReportIdentifies only $56.7 million in benefits from the Southern Intertie. 
11/97 Decision Focus, Inc. - Aeronomics, 1997, Utility Rates Impact Analysis.  November 1997.
9/97 Southern Intertie EIS Community Working Groups in Kenai and Anchorage have last of five meetings


CHUGACH ELECTRIC GENERAL MANAGER EUGENE BJORNSTAD EVALUATION -- Adopted by Chugach board on 2/20/97.  Significant because it is one of the very rare times a general manager's personnel evaluation has become public in an Alaskan electric co-op.    
  • Lack of rational cost-benefit analysis - Three examples where board was misled by one-sided or incomplete information provided by general manager.  There is a history of general managers misleading Chugach boards by presenting incomplete and inappropriate cost benefit and other information about intertie proposals prior to board votes.   
1/97 Southern Intertie EIS Community Working Groups in Kenai and Anchorage have first of five meetings
6/19/97 Alaska Star -- ML&P manager Tom Starr resigns (fired); Mayor unhappy with Starr's signature on IBEW MOU.


12/14/93 Anchorage Assembly approval of Municipal Light and Power entering into the Alaska Intertie Extension Project participants agreement:  Assembly Memorandum No. AM 1346-93.
2/10/91 Tom Kizzia, INTERTIE LINE BACKERS TRY FOR FUNDING, Anchorage Daily News.  [...critics contend the benefits are so marginal the utilities would never build the transmission lines with their own money. Alan Mitchell, who critiqued past studies as a consumer advocate consultant for the state, said the state could better use the money to retire existing utility debt. "That way if the utilities really think it's a good idea they'd acquire another $150 million in debt to build the lines," Mitchell said. "It would force them to make a rational decision."]
3/24/90 George Frost, Analyst: Use Railbelt fund for rebates. Anchorage Daily News.  [Better use of funds may be direct rebate to ratepayers through lowered rates says state analyst Alan Mitchell.]  
2/14/90 Alan Mitchell, Analysis North, A Review of "Economic Feasibility of the Proposed 138 kV Transmission Lines in the Railbelt". Funded by Department of Commerce and Economic Development. Contract ASPS 90-028: Utility Consumer Representation.  Report AN-90-1 February 14, 1990.  Mitchell was the State of Alaska Utility Consumer Advocate.
12/89 Decision Focus, Inc. (DFI), Economic Feasibility of the Proposed 138kV Lines in the Railbelt. Addendum to the June 1989 Decision Focus, Inc.  Benefit/Cost Analysis.  December 1989. 
6/89 Decision Focus, Inc. (DFI), Benefit/Cost Analysis.  


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