MEA's Board of Directors on Feb. 9 unanimously voted to offer $2.58 million to Eklutna Inc. for approximately 70 acres of land the Native corporation owns near Eklutna. MEA is proposing to build up to a 180-megawatt (MW) natural gas-fueled power plant on the land, located northeast of the Eklutna interchange of the Glenn Highway.
Eklutna Inc. CEO Curtis McQueen told MEA directors earlier in February that Eklutna tribal members hoped the power plant development would help them develop a 1,500-home development along the Glenn. Eklutna Inc. is particularly interested in assisting with the development of cogeneration facilities at the plant site. Cogeneration is the process by which waste steam from the power plant can be used for heating nearby facilities.
MEA obtained two appraisals of the property and offered the average of the two, an MEA spokesperson said.
The Anchorage Planning and Zoning Commission on Feb. 2 unanimously recommended a zoning change that would allow MEA to build the power plant, changing the land designation from primarily transitional to an industrial zone. The land sale is contingent upon final rezoning approval by the Anchorage Assembly.
MEA General Manager Wayne Carmony said the co-op plans to build up to a 180-MW natural gas power plant on the land. Construction would begin in 2012. The plant is projected to cost between $300 million and $400 million, said MEA spokesperson Lorali Carter.
Carmony said MEA will need an additional 50 MW of electricity, which could come from a variety of sources including renewable energy projects and/or power purchases.
MEA’s power-purchase agreement with Chugach Electric Association expires Dec. 31, 2014. Carmony said this means the Eklutna plant must be ready for test operation by October 2014.