Anchorage Daily News

JUNEAU -- The state of Alaska has $450 million worth of requests to fund various alternative energy projects, but it only has $100 million for these efforts.

Now, with oil prices plummeting $100 a barrel since summer, some lawmakers and community leaders are hoping interest in alternative projects doesn't fade as well.

Rep. Les Gara, D-Anchorage, said he hopes the Legislature doesn't allow declining oil prices to scale back on the state's commitment to developing alternative energy projects.

"I think people need to stop legislating based on today's price of oil," he said. "Right now we're well situated, with over $7 billion in Constitutional Budget Reserve savings, to solve these issues."

But Jodi Mitchell is worried. "I'm very concerned that if the state has less money, they're going to cut back on these kinds of programs," said Mitchell, executive director of the Inside Passage Electric Cooperative.

The cooperative is a Juneau-based, member-owned utility hoping to bring affordable hydroelectric power from Alaska Electric Light & Power Co. to Hoonah, about 35 miles west of Juneau.

Mitchell's organization is part owner of Kwaan Electric Intertie Cooperative, a joint operation with AEL&P. Kwaan's group is among several communities or organizations applying to the Alaska Energy Authority for money.

In this case, it's hoping for $37.5 million to fund construction of the intertie.

Last spring, the Legislature allocated $50 million to the Alaska Energy Authority for alternative projects such as wind, biomass and tidal energy. During a summertime special session it allocated another $50 million.

But that was when oil was still climbing toward $140 a barrel. Now it's closer to the $50 a barrel range. Proponents are hoping the sagging oil price doesn't force the alternative projects to the back burner.

Alaska Energy Authority spokesman Karsten Rodvik said the proposed projects remain under review.

"When that's done we'll take a look at how it is going geographically, regionally, to make sure one region isn't going to get a whole bunch of new funding" while others get ignored, Rodvik said.

Mitchell said she is concerned about the Hoonah intertie because new engineering estimates have the costs climbing to more than $50 million.

"I kinda feel like if it doesn't happen now, it might never happen, especially with the oil prices in the tank right now," she said.

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