Citing the significant risk of carbon pricing, Alaska's consultants, Black & Veatch Corp., have made a clear recommendation that this plant should remain dormant. To us ratepayers especially, their assessment is reason enough to let it remain in mothballs.
The company recently released the draft of the Alaska Railbelt Regional Integrated Resource Plan. The final version will provide a plan for the state's energy development over the next half century. In that draft, Black & Veatch noted that:
"Due to the operating cost risks associated with the possible enactment of CO2 legislation, Black & Veatch does not recommend that HCCP be included in the preferred resource plan at this time. HCCP is currently being held in mothball status: Black & Veatch recommends that this condition be maintained for the foreseeable future until such time as it becomes clear whether CO2 regulations are enacted and the resulting economic impact on the plant can be determined."
Black & Veatch's assessment is right on the mark. CO2 standards appear to be right around the corner. The U.S. Supreme Court ruled in 2007 that greenhouse gases are pollutants and thus subject to provisions of the Clean Air Act. The Environmental Protection Agency ruled recently that greenhouse gases threaten public health. The Obama administration is free to initiate emission controls through regulation. Nationally there is much political backing for such a move.
The U.S. energy industry apparently confirms what Black & Veatch is saying. Although they had been expecting the EPA ruling for some time, since the announcement, spokesmen have warned that the industry should expect increasing uncertainty and higher costs, especially among large-scale coal burners, like cement manufacturers and power generators.
If wasting the public's money isn't reason enough for state officials to back away from re-opening the HCCP, there are plenty more good arguments focused on protecting the environment and public health.
We have an abundance of natural gas. Exploiting that resource requires only the political will to open the state's savings account and build a pipeline. Beyond that, the $12.5 million the Alaska Senate approved from the Railbelt Energy Fund just to get the HCCP working would be better used instead to promote clean and renewable energy resources wind, solar, tidal and geothermal of which the state also has plenty.
Black & Veatch has something to say about these resources, too. They recommend continuing development of Southcentral Power Project (natural gas) and the Fire Island and Nikiski wind projects. In addition, the company advised moving forward with research into the Glacier Fork, Chakachamna and Susitna hydroelectric projects, at least until environmental, geotechnical and capital costs can be understood sufficiently to determine if they are viable.
The company noted further that wind, tidal and geothermal would "become commercially mature" during the 50-year life of the plan, providing Alaskans with stably priced power.
If tapping into these cleaner energy resources is to become a reality, Alaska must fully commit to their development and the sooner the better. That means rejecting wasteful spending on attempts to make a failed idea work.
On the bright side, the Healy plant has lived up to its name. It's the cleanest type of coal plant we can imagine one that burns no coal at all. Now let's put our money to good work.
Mike O'Meara is the spokesman for the Homer Electric Association Members Forum. Also collaborating on this Point of View piece were Trey Simmons, a Glacier Valley Electric Association ratepayer; Matt Wallace, executive director of the Alaska Public Interest Research Group; and Jim Sykes, director of Utility Watch.









