Morning Headlamp – Powering Alaska’s Future – Furie and Chugach Electric

Supply meet Demand?  Chugach Electric Association and Furie Operating Alaska signed a gas sale and purchase agreement March 3rd for Furie to provide at least 20 percent of the utility’s natural gas needs through March 2033. The firm supply portion of the contract commences in April 2023 for 1.8 billion cubic feet, or bcf, of gas over a 10-year term. Chugach already has contracts with other producers to mostly meet its gas needs until then.

This is good news for Chugach customers. Maybe. Headlamp would note Furie is one of the companies who earned tax credits the state has yet to pay. Could the state’s instability lead to the inability of companies to continue with their projects? Headlamp hopes not. 

Over the Hill? The head of the Environmental Protection Agency is facing heavy pressure from   conservatives to take on the science of climate change. Undoing the 2009 endangerment finding — the Obama administration’s conclusion that greenhouse gases are a threat and can be regulated — would make it easier for EPA Administrator Scott Pruitt to reverse President Obama’s climate agenda. That’s because it would remove the legal obligation under the Clean Air Act to regulate carbon dioxide, removing a key tool that environmentalists are counting on as they try to keep Obama’s policies like the Clean Power Plan in place.

Headlamp read the article with great interest looking for the long list of names of conservatives who were applying the “heavy pressure.” Only two were found. Hill Hyperbole?

Frack to the Future? The Alaska Oil and Gas Conservation Commission’s proposal for notifying the public about plans to hydraulic fracture oil and gas wells in the state has been met with a frosty reception from the business community. The commission has suggested providing 10-day periods for public comment on well fracking applications immediately following the publishing of redacted versions of the applications to the commission’s website. The proposed regulatory change followed a mid-December public hearing on the issue requested by Bob Shavelson, a director of the Homer-based local environmental group Cook Inletkeeper. Oil company representatives argued the commission’s idea would add another regulatory burden that could delay their operations without providing any technical benefits to the state.

Headlamp sees this for what it is – another attempt by Cook Inletkeepers to “keep it in the ground”and thwart responsible resource development. 

 

First Reads

Ad campaign targets lawmakers as battle over income tax heats up

Alaska Dispatch News, Nathaniel Herz, March 31, 2017

Chugach Electric inks deal with Furie for gas to 2033

Alaska Journal of Commerce, Elwood Brehmer, March 31, 2017

Commission sticks with 10 days for comment on fracking

Alaska Journal of Commerce, Elwood Brehmer, March 29, 2017

Conservatives fear EPA chief going soft on climate science

The Hill, Timothy Cama, March 31, 2017

The Eagle Ford Is the Story Now, but the Permian Is the Future for ConocoPhillips

The Motley Fool, Matthew DiLallo, March 28, 2017