Begich pushes $650M Alaska energy plan

$300M pegged for electric utility infrastructure grants; $200M for new public transport authority; $150M for AHFC rebates

Eric Lidji

Petroleum News

As part of a broader energy plan, the mayor of Alaska’s largest city wants to put $300 million in state funds toward infrastructure grants for electric utilities.

Anchorage Mayor Mark Begich on May 28 proposed spending $650 million in state funds on four energy-related programs in the coming year.

In addition to the utility grants, the program would increase support for energy audits, fund large public transportation projects and create an “integrated” energy plan for the state.

Begich said the utility grants would lower rates by reducing the debt burden on electric utilities facing massive infrastructure projects in coming years.

The $300 million appropriation would be administered through the Alaska Energy Authority, which is currently working on its own plan to reduce the cost of energy across the state.

Municipal Light and Power, the Chugach Electric Association and the Homer Electric Association are planning a new 260-megawatt power plant, Begich said.

The energy plan would also put $200 million into a new Alaska Public Transportation Authority charged with building a commuter rail between Matanuska-Susitna Borough and Anchorage, as well as increase bus service in other population centers.

The energy plan would also put $150 million in the Alaska Housing Finance Corp. Home Energy Rebate Grant Program to add inspectors and give rebates up to $10,000 for families that implement energy efficient improvement to their homes.

Begich said any energy plan should focus on “long term” and “sustainable” solutions. He did not say how his plan would fit with a $1.2 billion short-term energy plan being promoted by Gov. Sarah Palin. Begich said they both might be appropriate, or the two could be combined, but added that state lawmakers would have the final say.