The two sides of the dispute agree on the need to wean Alaska’s power grid from its deep dependence on natural gas. But they disagree sharply about how quickly the transition should happen.
of local gas supplies. But they disagree sharply about how quickly the transition should happen, and whether a government mandate to install more renewable power sources will benefit consumers.
Those advocates point out that while industry leaders have long said they’re working to reduce dependence on natural gas, Alaska’s urban utilities still generated 80% of their power from fossil fuels in 2020, according to a .
Thayer, di Suvero said, was willing to accept the job that Dunleavy gave him to shepherd the RPS bill through the Legislature.Thayer, in a phone interview, acknowledged that he has an “informal” relationship with Izzo that stems from their time as colleagues. “If legislative direction raises the cost of energy by 20%, 30%, 40%, what does that do? That’s a lot of money taken out of the economy to pay electric bills,” Thayer said. “Everybody agrees we need to go to renewables, but the cost factor is an issue.”
Mitchell, in a phone interview, said many of the assumptions he used for his model were conservative: low natural gas price increases, estimating that Alaska wind projects would cost twice the national average and leaving out federal incentives for renewable energy projects. They added nuclear power as a qualifying source of electricity, state regulators were charged with monitoring effects of the RPS policy on rates and reliability, and the deadline for hitting the 80% target was pushed back a decade, to 2050.
While several hearings were scheduled in recent weeks, Sumner said last week that there’s been “direct pushback” from the utilities. It’s “probably too late” to expect the legislation to be approved this year, he added.“I can’t see that the utilities have any plan besides putting us on imported LNG,” Sumner said. “It’s horrifying for the people I represent, because it’s going to mean higher energy costs.
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