Anchorage Daily News

The Healy "clean" coal plant is one of state government's biggest economic development boondoggles, so it's tempting to cheer the news that the state might actually get $50 million for the long-mothballed electrical project. That price is a pittance of the state's nearly $200 million investment, but it's better than nothing. And the deal raises hopes that the controversial plant may finally be put to constructive use after sitting idle for a decade. Ah, but this is the Healy clean coal plant, a cursed project if there ever was one.

Many a time in the past, the state has boasted of some helpful new arrangement with Healy, only to see the deal fall apart.

And that may well happen this time.

Because with Healy clean coal, the state is stuck in a dysfunctional relationship with a sharp-elbowed partner.

The Healy plant sits on a site owned by Golden Valley Electric Association, the Fairbanks utility. GVEA was supposed to buy the plant after it was up and running a decade ago but the utility balked, claiming the clean coal technology didn't work.

Since then, the state and GVEA repeatedly fought over the project in court. In March last year, after two years of mediation, the state thought it had struck a deal with GVEA to resolve the most critical disputes.

GVEA's board mysteriously rejected the deal.

At the time, the state was working with another potential buyer, Homer Electric. By reneging on the mediation deal, GVEA stymied the state's move.

So the state is stuck. It can't find another buyer as long as GVEA keeps posting the No Trespassing signs on the state-owned plant. After eight years, that dispute still hasn't been resolved in court.

In effect, GVEA got this latest deal by holding the state hostage, so it's fair to wonder how good a deal it really is.

GVEA critics have long suspected the utility is playing hardball so it can use its political influence to get the Healy plant at a huge discount, or even for free. Former president and CEO Mike Kelly is a state legislator who has served on the powerful House Finance Committee. Another former GVEA president and CEO, Steven Haagenson, is Gov. Sarah Palin's energy czar.

So why is GVEA all of a sudden willing to pay $50 million for a plant it said a decade ago would not work? Why is GVEA willing to cut Homer Electric in on this deal?

Those are good questions.

Critics led by Andrew Halcro have also questioned whether the latest Healy deal reflects any favoritism or political arm twisting behind the scenes. He cites the key roles that former GVEA executives Kelly and Haagenson play.

The Legislature should get answers to all these questions. Selling Healy to an obstructionist business partner for $50 million may be the best deal the state can get -- but the Legislature needs to take a good, hard look at it.

BOTTOM LINE: Here's another chapter in the Healy clean coal boondoggle. It may not be the last.

Smoke

Rep. Harry Crawford wants to raise the smoking age to 21. His intentions are good. Keep people from smoking, keep people from dying.

Right now in Alaska the legal age is 19. That's good enough.

Full disclosure: I smoked for 20 years, quit in 1989. I've supported spending millions of the state tobacco settlement money on education to help people quit the habit, supported most no-smoking rules for public places.

So while I shed no tears for smokers' loss of places to light up, I think anti-tobacco forces should declare victory and keep the faith with education, help to quit and high taxes. Congress will pay for expanding children's health insurance by raising the federal tax on cigarettes by 61 cents a pack, and Anchorage and Alaska already have slammed smokers with substantial levies on their habits.

At something like $7 a pack, fewer can afford to smoke. That's good.

I know it's almost a cliche of an example, but telling a young vet of Iraq or Afghanistan that he or she can't have a cigarette in Alaska just goes against the grain. Back from Anbar or tribal lands? Sure, you should quit soon. In the meantime, here's a match. Welcome home.

Raise the age and we make tobacco use more alluring to the young. Raise the price and we make tobacco use both expensive and stupid for everybody. Let's put our money there.

-- Frank Gerjevic

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