Urgent Action Needed on Alaska Energy Policy
Mayor Suzanne LaFrance and Southcentral Alaska utility representatives have expressed a growing worry that declining natural gas production in the Cook Inlet will cause an eventual local surge in util
Urgent Action Needed on Alaska Energy Policy Mayor Suzanne LaFrance and Southcentral Alaska utility representatives have expressed a growing worry that declining natural gas production in the Cook Inlet will cause an eventual local surge in utility costs and decrease the reliability of electricity. The proposed Alaska LNG megaproject is believed to help stabilize the region’s energy grid. Mayor Suzanne LaFrance held a joint press conference at City Hall calling for urgent action on Alaska energy policy on Tuesday, July 28. From left are Matanuska Electric Association CEO Tony Izzo, Matanuska-Susitna Borough Mayor Edna DeVries, Anchorage Mayor Suzanne LaFrance and Enstar Natural Gas Co. President John Sims. Depending on the severity of the upcoming winter, some Southcentral Alaska utilities may run low on natural gas, and elected officials this week said they believe the proposed Alaska LNG megaproject would help stabilize the region’s energy grid. Anchorage Mayor Suzanne LaFrance and Southcentral Alaska utility representatives have expressed a growing worry that declining natural gas production in the Cook Inlet will cause an eventual local surge in utility costs and decrease the reliability of electricity.The municipality has taken steps to make Anchorage more ‘energy resilient’ and to create buffers against rising utility costs. Last week, the municipality announced a proposed site for a ‘waste-to-energy’ plant that could be finished as early as 2032. According to the estimates from the city, the plant could potentially generate enough electricity to power as many as 20,000 homes. The municipality is also expanding its solar rooftop arrays, and began a comprehensive energy assessment at city-operated facilities.Many leaders, including LaFrance, said they believed the proposed Alaska LNG project will give Alaska customers access to reliable gas supplies. The Alaska LNG project from developer Glenfarne is viewed by many lawmakers and Alaskans as a critical part of addressing the shortfall of local gas production from Cook Inlet. The $55 billion project moving long-stranded North Slope gas to Southcentral Alaska could provide most of the state with natural gas for heat and power as soon as 2029.The developer has yet to secure a final investment decision required to approve construction, which would take years of work before the first phase delivered gas to Alaskans. Enstar, the main natural gas supplier for the region, has said the utility may run low on gas. Texas-based BlueCrest Energy’s plans are not coming to fruition this year, and Alaska-owned HEX is delivering less than half of what the utility expected.Enstar has spent more than $4.5 million on LNG import alternatives, but it will come at a cost. In the coming years, customers could experience cost increases as high as 50%. By 2030 and beyond, the utility is looking at a 100% increase due to high LNG import prices. There is only one (solution) that reduces the price of energy in the state of Alaska, and that is the AK LNG project
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