New Power Plant in Anchorage (2014, purchase, utilities)

[Dakster]

Reading ADN, I see that a new natural gas power plant is going up near Muldoon Road in East Anchorage.

According to the article the new plant will be 35% MORE efficient than their current one and will generate enough power for 75% of their customers. It will save ML&P 13 million.

Now the part that makes no sense to me:

"Last fall, ML&P asked the Regulatory Commission of Alaska to allow a 31.5 percent rate increase, which was primarily to pay for the utility's investment in another new power plant off Minnesota Drive. ML&P expects to request another increase after Plant 2a is finished."

Read more here: New power plant in East Anchorage will save millions, officials say | Anchorage | ADN.com

Let me get this straight, ML&P is saving money with the new plant by making power much more efficiently and ML&P is continuing to raise power rates?

I realize this is a separate issue, but ML&P will not purchase wind power for CIRI because they (ML&P) said it would cause a rate increase. Isn't this exactly what they are doing? Isn't it more like, they want to build and run their own power generating plants, and be able to hike up the rates? FLip side, I can understand wanting to be totally self-sufficient, but if you are going to make more plants and generate power more efficiently, just by keeping rates flat you are making more money... Just say that - rather than use it would cost our rate payers more money, when you are doing the same thing anyways.

I don't live there (yet) nor do I know anything other than what I read online - which is why I am sure I am missing something.

[mizzile]

Originally Posted by Dakster

Let me get this straight, ML&P is saving money with the new plant by making power much more efficiently and ML&P is continuing to raise power rates?

I don't live there (yet) nor do I know anything other than what I read online - which is why I am sure I am missing something.

You're not missing anything. This is how things work up here. Expect a 30% increase in all utilities every three years or so no matter what. You may recall the time when the gas utility made an accounting error and undercharged the military for services for ten years, then applied to raise rates on regular residents to make up the lost revenue when they sorted their books.

[keyman51]

Infrastructure and putting aside $ to for the next plant.

[my54ford]

Rate issue aside. You are missing something....The tech involved. They plan on installing 120Mmw COMBINED CYCLE gas turbine plant. The fact is that combined cycle uses the waste heat from the CT to generate steam in a HRSG (heat recovery steam generator) This raises efficiency to 85% plus They are using GE LM6000 (aero-derivative CT) as primary power which is a very efficient unit by itself



Quanta Services Awarded EPC Contract For 120 MW Combined Cycle Thermal Power Plant in Alaska - Jan 9, 2014