GVEA "Report to our members"

Challenges for the 1990s

Last December, the US Department of Energy (DOE) selected a project proposed by the Alaska Industrial Development and Export Authority for funding under the Clean Coal III Demonstration Program. The proposed Healy II Power Project is a 50 mw power plant utilizing state-of-the-art, clean-coal combustion technology.

DOE will pay for just under half the cost of the plant, up to $93 million. Another $30 million was set aside for the project from the Railbelt Energy Fund by last year's legislature and needs to be appropriated this year. The rest of the funding, very preliminarily estimated to be about $50 million, will come from bonds to be repaid from power sales.

Technically, AIDEA will own the plant. However, Golden Valley will operate and maintain the plant, contract with Usibelli for the fuel, purchase the power generated and repay the construction bonds. This level of control and responsibility feels like "owner" to us, complete with all the inherent benefits and liabilities.

Carrying forward with this project while meeting the requirements we feel are needed to protect your interests is a tall order. We believe it's not only doable, but an outstanding opportunity we can't lightly pass up! We hope you share our excitement and will support our efforts during the coming months.