- Board releases request for proposals
PALMER – At their Oct. 12 meeting the Matanuska Electric Association Board of Directors unanimously voted to release a request for proposals seeking bids to build a new natural gas power plant at Eklutna.
The RFP calls for development of a 180 megawatt natural gas fired power plant. The invitation to bid allows two pricing options: an Engineer, Procure, and Construct (EPC) format, as well as an Independent Power Producer (IPP) process. Under an EPC proposal, MEA would own and operate the plant after construction. Under an IPP scenario MEA would enter into a long term power purchase agreement with the IPP, and the IPP would operate and maintain the power plant while selling the output to MEA on an exclusive basis.
“This is an important milestone for MEA in our local generation planning,” said Lois Lester, MEA Board President. “I can tell you that it has taken a lot of diligent work over the past five years to get to this point,” she added.
“The RFP includes a very aggressive timeline,” stated MEA Interim General Manager, Joe Griffith. “We are working to secure a power supply after our contract with Chugach ends in 2014,” Griffith said.
MEA’s all requirements contract with Chugach Electric Association ends Dec, 31, 2014. “At this time, MEA is keeping all power supply options on the table by considering power purchase agreements with other utilities, as well as moving forward with local generation plans. Our main concern remains which option, or combination of options, will be the lowest cost to our members,” Griffith stated.
Potential bidders are required to indicate their interest by Oct. 21, and attend a mandatory pre-bid meeting at MEA in early November. Final proposals responding to the RFP are due January 29, 2010. MEA and its consultant will then begin reviewing the proposals with plans to award the bid at the end of May 2010.
For more information on MEA’s local generation plans, contact Lorali Carter at (907) 761-9266.