OPINION: No better time for an energy transition at Chugach Electric

For more than 65 years Anchorage consumers have enjoyed low prices for natural gas that drives more than 80% of the electrical generation for Chugach Electric. Railbelt utilities recently got a loud wake-up call when Hilcorp, the region’s major gas producer, sent notice that they could not guarantee gas supply beyond the end of existing gas contracts. For Chugach, that contract ends in 2028. We have known about this since the first Alaska Department of Natural Resources analysis in 2009. This problem could bring a steep increase in Chugach members’ power bills if we don’t act now to accelerate our transition to other energy sources.

The three of us are running for the Chugach Board to work with our leadership, workforce and members to quickly minimize the significant cost of our dependence on natural gas, especially when the alternative being pursued by the utilities is importing liquid natural gas. LNG will be more than double the price, and we know your family and the Southcentral Alaska economy cannot afford a steep jump in electricity prices when the Hilcorp contract runs out. We believe that alternative sources of fuel are realistic and offer hope for our energy future.

Chugach added the Fire Island wind project to the grid in 2012 to achieve 17% renewable generation. Since then, the cost of utility-scale wind has come down more than 60%, with solar and battery storage prices down over 80%. The fact is that natural gas is no longer affordable for the Railbelt, and renewables are.

So, is it possible to generate a significant amount of renewable energy in the Railbelt? The answer is yes. According to a study requested by Gov. Mike Dunleavy, done by the National Renewable Energy Laboratory, or NREL, in 2022, there are five different scenarios whereby the Railbelt can achieve 80% renewables by 2040. The estimated natural gas fuel savings are in the range of $500 million per year.

And now, new federal infrastructure laws provide more than $100 billion to electric cooperatives, like Chugach, for grid resiliency and renewable energy additions. A 30% tax credit is also available for independent power producers, individuals and businesses to install renewables. Alaska has never been in a better position to develop our massive renewable resources including wind, solar, hydro, tidal and geothermal.

Key steps to launch Chugach on this power transition include:

• Investing in transmission upgrades to share renewable energy across the grid. Transmission is expensive so we need to be deliberate about what and where it is built, with an eye toward bringing new resources online.

• Building significantly more battery storage to stabilize the grid and integrate renewable energy sources.

• Partnering with residential and commercial building owners to expand solar power on roofs across the Chugach service area, and

• Training and expanding the workforce needed to build and maintain this new infrastructure.

The unique characteristics of this moment — imminent natural gas scarcity and rising costs, rapidly declining costs of renewables, and federal funding incentives — align in a way we have never seen before. We have a clear choice — maintain the status quo and risk economic consequences — or be a leader in the clean energy transition in Alaska while also creating jobs and building a sustainable economy for the future.

If you pay a bill to Chugach, you have the power to decide whether Chugach secures affordable, reliable and sustainable electricity for generations to come. Chugach members should have already received their ballot in their email — check your spam — and have until May 19 to cast your vote. We hope you will support us — Shaina Kilcoyne, Susanne Fleek-Green and Jim Nordlund.

Susanne Fleek-Green, Shaina Kilcoyne and Jim Nordlund are candidates for this year’s Chugach Electric Association board election.

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