The clock is ticking.

Cook Inlet gas is running out quickly. It provides 88% of our power and is our biggest expense. The main producer will no longer sign new contracts. The remaining Cook Inlet gas is being sold at higher prices, without the supply guarantees we used to have. Imported gas will be more expensive, and its timing is uncertain. It will take years to secure alternative energy supplies and, without proactive and decisive action, our co-op risks unpredictable and higher costs.

Short term stability

In the near term, we’ll need to work with the assets we have, including our gas plants. As imported gas replaces Cook Inlet gas, prices will rise, and timing is uncertain. During this time, everything we can do to increase the efficiency of how we use energy in our homes and businesses will help us save. Local solar is the fastest of all energy sources to build and I support allowing members to save money and energy with distributed solar. 

Long term solutions

We’re learning firsthand that we can’t put all our energy eggs in one basket. The next step towards long-term solutions is putting our abundant sun and wind resources to work.

In Alaska, utility-scale solar is cheaper than gas power. It’s the quickest to build, and can reduce our gas use in the summer, saving our scarce Cook Inlet gas for winter heat. Wind is the second quickest, and the winter abundance of wind matches our energy needs in Alaska’s cold and dark. Costs are lower than imported gas, and all future studies of the Railbelt grid have included large amounts of wind generation. One recent study found that the Railbelt could reach 25% wind power before any upgrades to the grid, while an economic analysis from the National Renewable Energy Laboratory showed that the cheapest energy system in 2040 has wind providing 50% of the energy. Hydro takes a long time and costs a lot, but can provide stable baseload power for generations, helping to balance the others. Bradley Lake provides this today, and the state is expanding it through the Dixon Diversion. Cook Inlet has geothermal potential, but it’s too early to know if the economics will pan out. Tidal and nuclear power may become viable in the future.

These projects will help generate tax revenue for local emergency services and schools and income for local landowners. As we build a more stable local energy system, imported gas will continue to provide a significant amount of power.

For me, good process is key to making the right choices. I’ll continue publishing transparent data and analysis about our HEA budget, operations, and options so members and local business owners can be a partner in this conversation. You can visit my Facebook or my Alaska Energy Blog for the latest information.