PALMER - In late August, MEA submitted a request to the Regulatory Commission of Alaska (RCA), asking the commission to explore the formation of a traditional Generation and Transmission Cooperative (G&T) or, alternatively, the creation of a genuine power pool for cooperatives along the Railbelt. Last week, MEA followed up with an appeal to the other Railbelt electric cooperatives to endorse this proposal.
Currently, every electric utility in Alaska is pursuing its own individual power supply solution.
"All of the electric co-ops along the Railbelt are either planning to build, or have recently completed construction, of new generation facilities. While the individual approach works, there may be economies of scale and overall efficiencies that are not being realized," said MEA General Manager Wayne Carmony.
"There are existing disparities in wholesale power costs along the Railbelt. A traditional G&T cooperative could end these disparities by allowing all consumers in the interconnected Railbelt system to share proportionally in the benefits derived from working together and from both past and future state and federal electric system subsidies," explained Lorali Carter, MEA Manager of Government and Corporate Communications.
MEA has long encouraged the formation of a traditional G&T as the best means to benefit all Railbelt ratepayers over the long-term.
Carmony clarified that participation in the RCA proceedings does not mean that any utility should amend, delay, or cease working on its individual power supply plans. "Each utility should continue to pursue their individual power supply plans as the RCA reviews the merits of a traditional G&T for the Railbelt," he said.
Related Information:
MEA - RCA Petition for G&T (2007)
Letter from General Manager Wayne Carmony - RCA Petition (2007)