Legislators Brief CWN On Energy Alternatives

Commonwealth North Energy Committee Meeting

by

Dave Harbour

On Friday, Commonwealth North’s held its energy meeting--chaired by Mary Ann Pease (NGP Photo-r)--in the Alaska Natural Gas Development Authority Conference Room in downtown Anchorage to hear from House Energy Committee Co-Chairs Representative Bryce Edgmon (NGP Photo-l) and Representative Charisse Millett (NGP Photo-l) as well as Senate Energy Committee Chair Senator Lesil McGuire (NGP Photo-r).

They reported, in general, on the 2010 Legislative session energy accomplishments along with upcoming energy challenges.

Pease opened the meeting with a recollection of an early Commonwealth North report wherein Founder, Governor Walter J. Hickel, counselled caution when dealing with the Federal government, since so many of Alaska's current challenges deal with the need to react to Washington's laws and regulations.  (This appraisal is consistent with my own memories of Governors Hickel and William A. Egan and their opinion of a predatory federal government.)  However, most of the discussion dealt with local, Alaska energy issues.

McGuire noted the current Gulf of Mexico oil spill tragedy overtaking the American consciousness, noting that in wake of that incident, "we need to consider what we do to protect the interest of the state."  She reviewed the passage of legislation intended to promote in-state marketing of Alaska North Slope (ANS) gas and tax/regulatory incentives for Cook Inlet producers.  Questioned as to whether state subsidies for bringing ANS to Cook Inlet might neutralize Cook Inlet exploration incentives she reiterated a longstanding policy against legislating 'winners and losers' but stated that 2010 pro-oil and gas legislation was aimed at providing several incentives to encourage involvement and even competition in the marketplace.  "Rather than putting only some options on the table," she said, "let's give a number of incentives to various projects and let them compete.  I don't want to stop and limit and mutually exclude certain opportunities."

On the same subject, Millet said that, "Government is not good at picking winners and losers; we are better at incentivising different projects.  One thing we could do," she said, "is make the tax structure so reasonable that tax credits would not be needed, but this is the real world."  Millett emphasized the importance of creating a single coordinating point for energy issues within the state and said she hoped the Legislature could move ahead during the next session to create a Department of Energy.  In referring to passage of state energy policy legislation this year, she said that, "Within this energy policy we recognize that we are an oil province and also recognize that Alaska is moving toward becoming more of a renewable energy state."  She also addressed the failure of an effort to pass a state energy authority to acquire, own and operate public utility generation and transmission facilities.  "We have some ideas on how to develop generation and transmission infrastructure and we'll be working toward that next session."

Edgmon added that, "We are a resource development state and we must have energy; if we don't make energy a big deal in Alaska, we won't be here.  Oil prices hit $147 in 2008," he recalled, "and when a fuel truck pulled up in front of my home in Dillingham it was like Darth Vader was arriving.  If we want the State to stay diverse and as it has developed, we need to keep focused on energy."  (More Event Photos Below)

Event Photos:

Wilson Justin

Jane Anvik

Cathy Giessel

Grant Hunter

Chris Birch

Jennifer Johnston

Lance Pruitt

Liz Vasquez

Ray Krieg

Mia Costello with Deborah Brollini

Lesil McGuire

Harold Heinze