As Alaskans, we pride ourselves for being an “energy state,” but we pay too much for energy. This problem hits rural Alaska particularly hard, packing an added punch because communities already suffer from the loss of municipal assistance and revenue sharing, and our seniors have had their Longevity Bonuses taken away. While the state treasury counts billions in extra cash from the high price of oil, rural heating bills have gone through the roof, and in hub communities gas at the pump costs almost $5/gallon. In the most unfortunate cases, elders have had to chose between heating and eating, and some villages report paying almost $1 per kilowatt hour, ten times the price in Anchorage. That’s why it’s important that the debate over the gasline include solutions that will lead to lower cost energy.

We can keep Alaska’s promise as an energy state by implementing a three-part strategy for becoming more energy self-reliant. That strategy will provide energy security and economic opportunity.

First, we begin with immediate and full funding for Power Cost Equalization to prevent the already high cost of rural energy from spiraling even further out of control. Second, develop alternative local energy to reduce fuel costs, provide reliable local sources of energy, and create local jobs. Finally, tap Alaska’s natural gas resources for long-term energy supplies for Alaska, developing the project that provides the most benefits to Alaskans in jobs, revenue and energy.

Full funding for PCE keeps a promise made that all Alaskans would have affordable energy. In its current form, PCE is only a shadow of what it once was. Now it just covers 750 kilowatt hours per residence, whereas it once covered 1500 kilowatt hours per residence, and it covered small businesses and schools. This means a huge portion of the family budget now goes just to pay utility bills. High energy costs also sap prosperity from local business and hurt local economies. Without healthy business and job opportunities, communities suffer, families suffer, and hope for a better future gets harder and harder to find. The state’s oil wealth comes from rural Alaska. Simple fairness requires that the state share these profits with rural Alaska by fully funding Power Cost Equalization.

Second, developing local sources of energy makes us more self-reliant and more independent. Think of it this way — when we import diesel we export dollars and jobs. Local energy keeps those dollars and jobs in local communities. Wind power can work in 80 communities thanks to new technology. Biomass can produce energy in 160 towns and villages by turning fish waste to diesel or converting wood chips to energy or capturing methane gas from the dump. We’ve already started using geothermal energy on a small scale, with off the shelf technology, and with more coastline than the rest of the country put together, wave and tidal sources offer great potential. At the same time, hydro projects can make a real difference in the communities where that resource exists.

The total cost of these projects is in the same league as the Knik Crossing, or the Gravina Island Bridge. We can pay for these infrastructure developments with bonds, with private financing, and with general fund appropriations. For the sake of rural Alaska and for the sake of Alaska’s future economic well-being, we must look at local and alternative energy sources. We’ll still need diesel. Alternative energy won’t be able to provide all our energy needs, but if we want low cost energy, we have to wean ourselves off of imported energy as much as possible.

Finally, we’re going to build a natural gas pipeline. It will be the signature achievement of this generation and will provide great bounty to Alaska. We’ll continue to seek the best project for the state and will insist that Alaska’s gas heat Alaska’s communities, but we have to remember that the gas pipeline is a long-term endeavor and won’t provide energy to the state for at least a decade, even if we can approve a project in the near future.

Alaska is an oil state. Alaska will be a natural gas state. But Alaska can also be an energy state. We can do more than send energy south to the Lower 48. We can generate Alaska energy for Alaskans and give all parts of Alaska the chance for lower cost energy, economic opportunity and energy independence.

Tags: Alaska, dependence, energy, oil, renewable, resources