Dear Friends and Neighbors,

A goal for both the Legislature and the Walker-Mallot Administration is delivering affordable energy to all Alaskans. Alaska is a resource rich state, yet the cost of energy is very high in Fairbanks and many rural communities. Of course, keeping consumer costs down and affordable in Anchorage will always be a top priority. Here in Juneau, we’ve been learning about an innovative way to address Railbelt electricity costs that I would like to share with you.

I serve on the House Energy Committee, and we’re hearing about generation and transmission of energy through the electrical grid. One takeaway is that challenges with energy generation are very different from the challenges with energy transmission.

Current structure of Railbelt transmission. Six utilities and the Alaska Energy Authority own these transmission lines.

For example, the Susitna-Watana dam is a $5.6 billion energy generation project. If the dam is built, energy will exist for consumption, yet the infrastructure and transmission lines required to deliver energy to Interior Alaska will still have to be constructed.

Another challenge with transmission is a term called “pancaking costs.” We have six railbelt utilities: Homer Electric (Homer), Seward Electric System (Seward), Chugach Electric Association (Anchorage), Municipal Light and Power (Anchorage), Matanuska Electric Association (Mat-Su), and Golden Valley Electric (Fairbanks). Recently, the owners of the wind generators on Fire Island made a proposal to add additional wind turbines on Fire Island and move that energy through the railbelt to Fairbanks. There are transmission lines capable of moving the energy through the grid to Fairbanks, but doing so requires moving the power through lines owned by two to three different utilities. Each utility has a different cost for transmission. These different rates pile on top of each other or “pancake,” making the project economically unfeasible. This “pancake” effect is a major challenge to integrating renewable energy into the grid. With the Fire Island project, there were no utilities willing to purchase the energy from additional wind turbines because the cost of transmission was too expensive.

Proposed “Independent System Operator” or “Unified Service Operator” to establish one rate of transmission across the Railbelt that reduces inefficiencies and allows for easier integration of renewable energy and independent power producers.

One potential solution to this challenge is an “Independent Service Operator (ISO)” or a “Unified Service Operator (USO).” An ISO is a not-for-profit organization that combines the transmission facilities of several transmission owners into a single transmission system to move energy over long distances at a lower price than the combined charges of each utility between the buyer and the seller. Utilities like Chugach Electric support this concept. Currently, the House Energy Committee is investigating this concept through presentations by Chugach Electric, Renewable Energy Alaska Project, and the Alaska Railbelt Cooperative Transmission and Electric Company.

Marijuana Update:

More recent versions of proposed marijuana legislation seem to track more closely to the voter initiative and court precedent.  For example, under one proposal, individual possession of less than four ounces of marijuana would be legal, but only one ounce could be transported at a time. Additionally, the most recent version of the proposed bill outlines a process via voter initiative or local ordinance for villages to opt-out of allowing commercial sale and production of marijuana.

The voter initiative takes effect on Tuesday, February 24, and it is unlikely that the Legislature will pass a bill by next week. Meanwhile, the Alcoholic Beverage Control Board is prepared to issue emergency regulations to establish that public consumption of marijuana and the sale of marijuana is still prohibited.

Back in Anchorage:

I will be back in Anchorage this weekend. On Saturday, February 21st, from 4pm to 5pm, I’ll be at the Rustic Goat to meet with constituents. Please stop by to discuss happenings in the Legislature or to share a cup of coffee or tea on me!

Anchorage Caucus:

Anchorage Caucus will take place on Saturday, February 28th from 1pm to 5pm in the Anchorage Assembly Chamber at the Loussac Library.

Please schedule Saturday, February 28th from 1pm to 5pm for the Anchorage Caucus. This event is a great opportunity to talk with legislators midway through the legislative session while we are back in Anchorage. The event will be hosted in the Anchorage Assembly Chamber at the Loussac Library. I am happy to serve as Co-Chair of this great event and hope to see many West Anchorage faces in attendance!

Community Events and Opportunities:      

The Alaska Bar Association is hosting a youth law guide video contest for high school students.

Don’t forget to file for your PFD and while you are doing that you can give to your favorite non-profit through Click.Pick.Give.

Submissions for the First Lady’s Volunteer of the Year Awards end March 2nd. Nominate your favorite volunteer here!

As always, please let us know if you have any thoughts or suggestions.

Sincerely,

    Rep. Matt Claman

    P.S. follow me on Facebook and Twitter

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