After being encouraged to do so by an MEA member at the Sept. 8 Board meeting, MEA directors voted 4-3 to stop spending money to overturn a Mat-Su Borough ordinance regulating power plants. The ordinance covers 50-megawatt forms of power generation, including natural gas, coal and hydro.
Director Dahms objected, pointing out that a recent
survey of MEA members by Loyalty Research Corp. showed 54 percent of MEA
members believe State and Federal regulations are enough without regulations from the Borough as well.
Another MEA member had asked the Board to prohibit spending on the ordinance at the August meeting, but the Board did not act on that request.
Voting to stop MEA from spending funds to pass Proposition 1 were directors Katie Hurley, Janet Kincaid, Secretary-Treasurer Peter Burchell and President Lois Lester. Voting against that measure were directors Larry DeVilbiss, David Dahms and Vice President David Glines.
The Shaw Group, an independent consulting firm hired by MEA, indicated the ordinance could cost MEA ratepayers $9 million to $12 million and create delays resulting in a failure by MEA to have adequate generation available to serve its members on Jan. 1, 2015, when its contract to purchase wholesale power from Chugach Electric expires.
Proposition 1, placed on the ballot in response to a board resolution adopted last year, seeks to overturn a borough ordinance governing the construction of power plants in the borough. In its resolution, the Board noted that an independent review projects that complying with the ordinance would cost MEA members "in excess of $9 million" for construction and ongoing operation of a generation facility.
The MEA Board's resolution, adopted Nov. 26 said, "It is in the membership's best interest for the Association to support a referendum petition to repeal ordinance 07-096(AM) ... The General Manager is hereby authorized to expend Association resources in support of a referendum petition..."
The Board did not repeal Resolution 1841 and MEA continues to recommend a "YES" vote on Proposition 1.
Additional Information:
Proposition 1: Your Voice Is Your Vote