Stedman says bill would let Southeast control own energy

Sen. Bert Stedman, R-Sitka, said the bill he introduced with Sen. Kim Elton, D-Juneau, on Friday is aimed at securing a long-term energy supply for the region. "What we want to do is generate our energy off of renewable sources like hydro versus carbon-based, and control our own energy," Stedman told the Ketchikan Daily News. "If you are heating your home on diesel fuel and oil gets to be $120 to $140 a barrel, you're probably going to want to heat it with electricity at 11 to 12 cents a kilowatt. It's basically trying to put the people of Southeast in charge of their own energy future."

The Southeast Energy Fund was established in 1986 at the same time as the Railbelt Energy Fund, which provided money for energy needs from the Kenai Peninsula to Fairbanks.

Millions have been appropriated for energy projects within the Railbelt. Stedman said the Southeast fund has been dormant.

"As we contemplate investing huge amounts of public money to facilitate in-state gas for the Railbelt, it would be irresponsible not to also address the considerable needs in Southeast," Stedman said.

Ketchikan Mayor Bob Weinstein said Senate Bill 132 is a positive step for energy needs in Southeast.

"We are obviously not going to benefit from natural gas in this area," he said. "What we can benefit from is the development and distribution of additional hydro resources. So creating a fund and hopefully getting some appropriations into the fund, I think, is an outstanding thing for the region."

Southeast communities have a long history of working toward energy independence by collaborating on power generation and transmission, Stedman said. However, many still burn oil to generate power.

Regulations will be written to control withdrawals from the Southeast Energy Fund, Stedman said. Another step will be an integrated resources study to assess energy needs.

The Swan Lake hydroelectric dam and dams at Ketchikan Lakes, Beaver Falls and Silvis Lake provide power to most Ketchikan Gateway Borough residents. The dams are close to capacity and Ketchikan is considering other options, including a dam at Whitman Lake and a connection to Metlakatla's hydroelectric dam.

Through the Southeast Alaska Power Agency, the city also is working to complete the Swan-Tyee intertie, which would connect hydroelectric dams at Swan Lake near Ketchikan and Tyee Lake near Wrangell and Petersburg. The partly completed intertie would allow communities served by the two dams to send or accept power when one has excess capacity.

The Swan-Tyee intertie eventually could connect with other proposed Southeast interties.

New hydroelectric dams would provide low-cost, renewable power over the long term, Stedman wrote, but they are expensive to build. Stedman estimated that completing a Southeast electric grid could cost up to $1.7 billion.

The proposed bill would broaden the authority of the Southeast energy fund to expand regional power generation and complete a grid.

"The Railbelt Energy Fund has been a valuable source of funding for energy projects in Southcentral and Interior Alaska," Stedman said. "The Southeast Energy Fund can play a similar role for southeast Alaska."

Stedman expects a companion bill to be introduced in the House as early as Monday.

"I think you'll see all of the Southeast legislators sign on," Stedman said. "I would expect all of the state elected officials, regardless of policy or affiliation, to be supportive of this bill."