Southcentral AK mayors start energy solution coalition

ANCHORAGE, Alaska (KTUU) - A group of Southcentral Alaska mayors are coming together over fears of a future natural gas production shortage in Cook Inlet.

Eleven mayors, including Anchorage Mayor Dave Bronson, are forming a coalition that will consider the energy needs of the region while exploring options to meet those needs, then communicate those findings to constituents.

“Together we represent the voices of the communities across the region that will be directly impacted by the looming natural gas shortage,” Bronson said.

Bronson said the mayors’ communities represent 75% of Alaska’s population, and have a unique perspective on the concerns surrounding natural gas production in the cook inlet

“Anchorage is the single largest — geographically — the single largest user of Cook Inlet natural gas,” Bronson said.

According to the coalition, this Summer the Alaska Utilities Commission produced a report that concluded at current production levels that the state faces an energy crisis by 2027.

“Our constituents really don’t have a direct voice, they don’t call producers. They hear from the utilities, but often they hear from utilities when utilities are raising their prices. But we’re responsible for communicating with them on a regular basis, and I don’t want them to panic,” Kenai Peninsula Borough mayor Peter Micciche said.

In October, Alaska Gov. Mike Dunleavy said his administration is proposing legislation to incentivize future natural production in the Cook Inlet.

The proposal would make it more economically feasible for companies to increase natural gas production in Cook Inlet by reducing the royalty rate on all new oil and gas reserves purchased online for ten years after their startup.

“We could all recall back in 2010 when we’d see brownout commercials by the mayors at that time,” Dunleavy said. “That was addressed at that time through some incentives.

The coalition said they plan to meet with the governor and other policy makers on solutions like the governor’s incentive plan.

“Bring communication and sharing that with our citizens — and the governor and the legislature and anyone else that needs to be involved,” Palmer mayor Steve Carrington said.

Micciche said in the long term, he doesn’t think the importation of natural gas is a viable option.

“But we certainly can’t write it off today, as a short-or mid-term option, if that’s what we need to meet our demands,” he said.

Bronson added that as individual mayors, they certainly have the right to work with local assemblies on policies that would reduce electrical usage or bring on other energy sources.

“But that’s not a discussion for this coalition at this time,” he said.

Mayor Bronson said the coalition probably will not have its’ first formal meeting until the legislative session starts in January.

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