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State Senator District E
Senate Majority Leader
Senator Cathy Giessel Newsletter
UPDATES
Issues affecting
your family, community and jobs.
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Dear Friends and Neighbors,
Happy Independence Day!
Today I'm highlighting the importance of recruitment and retention of public employees - teachers, police, firefighters, heavy equipment operators, principals, geologists...the list goes on and effects Alaskans every day.
A new study came out last week that examines data from a nationally representative sample of 28 police and fire pension plans, as well as national datasets.
"The analysis finds that a majority of these pension plans expect 75 percent or more of current employees to retire from the plan, and more than half of new hires (52 percent) are projected to stay until retirement. The analysis also finds that police officers have an average tenure of 18 years, firefighters have an average of 20 years, and all public safety workers combined have an average of 17.6 years of service. This retention rate contrasts sharply with the private sector where the median tenure in 2022 was 4.1 years.
The research finds that after the fifth year of service, public safety employee turnover flattens and is incredibly low until a public safety worker reaches retirement eligibility. This data indicates that pension plans are working as intended by retaining workers during their career and helping employees transition to retirement when appropriate."
The Role of Defined Benefit Pensions in Recruiting and Retaining Public Safety Professionals
In the study, data from Alaska is reviewed.
As we know, our public sector, government employees are badly short-staffed, with huge turnover resulting in the recent media stories below:
· Retiring Alaska teachers faced with delayed benefits for 12 to 14 weeks. Alaska's News Source
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· Retired teachers receive notice of delayed retirement paychecks placing them in a hard place Web Center Fairbanks
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· Reporting From Alaska- New retirees face months of delays in collecting state pensions; state says it is moving to clear backlog Reporting from Alaska
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· The upside of a little progressive pension paternalism. Governing
Today, for the first time in quite a while, the glass is more than half full for the public sector’s pension systems. Recent stock market gains, along with higher bond yields looking forward, will boost the actuarial funding levels of most systems when they post their upcoming reports, even though some are still far more underfunded than many Fortune 500 corporate counterparts. Tight labor markets now place a premium on the value of a guaranteed pension for workers of all ages, making it a valuable fringe benefit that attracts some employees.
Italian oil and gas major Eni eyes over $4 billion in upstream asset sale plan. World Oil
The company could potentially raise from €850 million to €1 billion through the sale of Alaskan assets to U.S.-based Hilcorp, while a similar amount could be raised by selling a 30% stake in Ivory Coast operations, the people said.
Items in this Newsletter:
· Partisan Divide: Warning
· Chugach Wildfire Hazard Mitigation Press Release
· Chugach Beluga River Investment Press Release
· Gwen Holdman, ACEP, Closing the Gap Podcast
· Australian Team Collaborates with Alaskans on Hydrogen, Microgrids
· Alaska Trends July Issue
· Alaska Trails July Newsletter
· Current Hot Topics, Things I Found Interesting, Education, Economy, Minerals, Healthcare, Politics
· Resource Values, Permanent Fund
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Partisan Divide: Warning
“There is nothing which I dread so much as a division of the republic into two great parties, each arranged under its leader, and concerting measures in opposition to each other. This, in my humble apprehension, is to be dreaded as the greatest political evil under our Constitution.”
John Adams, 1789.
“Let me now take a more comprehensive view, and warn you in the most solemn manner against the baneful effects of the spirit of party generally.”
Farewell Address, President George Washington, 1796.
Opinion: Bipartisanship produces results. ADN
This was one of the most productive Alaska legislative sessions in years. We passed legislation to fight crime, encourage more domestic energy production, improve public education, address workforce challenges, and make our health care system more efficient. We appreciate the collaboration of business and community leaders who worked together with the legislature to achieve these goals.
How ranked choice voting is bringing Alaska politics back to the center. Alaska Beacon
Ranked choice voting has finally allowed voters a better choice than the closed primary system.
(My Comment: There are 2 aspects to the Alaska Model: One part is the Open Primary, in which all voters can choose one person from the entire list of people running for that office. The second part is that the top 4 primary candidates go forward to a Ranked Choice General election in which voters get to rank their preferred candidates in order of priority. Both the Open Primary and the RCV General are required to provide voters with the clearest voice in our elections.)
Alaska voters gave themselves the power to rank candidates. Why do some people want to repeal that? PolitiFact
Proponents of Alaska’s open primary and ranked-choice voting system said it makes elections more competitive and improved representation because candidates across the political spectrum have been elected. Critics said the new system lacks transparency and confuses voters.
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FOR IMMEDIATE RELEASE
June 19, 2024
Chugach taking steps to mitigate potential wildfire hazards
With the current dry weather conditions and increased fire danger, Chugach Electric Association, Inc., is taking steps to mitigate wildfire risks in parts of its service territory, some of which could lengthen power outage times. Chugach is taking temporary measures to power line operations in North Muldoon, South Anchorage, Indian, Girdwood, Portage, Cooper Landing, Moose Pass, and Tyonek.
Those changes include the response to re-energizing a power line. Under normal conditions, Chugach’s lines are re-energized automatically following a short-circuit. Often, if the short-circuit is temporary in nature, this action will remove the short-circuit and restore power almost immediately. However, during the current dry weather conditions, Chugach will let the circuit stand open until Chugach’s line personnel can physically patrol an outage area before a line is placed back into service. This temporary change in how we respond could lead to longer outage times.
“With the warmer temperatures, comes increased fire danger,” said Chugach CEO Arthur Miller. “Having our crews physically patrol and inspect an area before a line is re-energized is prudent action to take in these conditions. We appreciate the patience and understanding of our members during this time.”
Additionally, Chugach, working with its contractor Carlos Tree Service, is already clearing trees from its easements on the Anchorage Hillside as part of a normal clearing cycle. This activity will further reduce fire potential. If trees are outside of the right-of-way and considered a potential hazard, crews will work with property owners to secure permission before clearing a tree. Chugach will return power line operations to normal when conditions permit. If you see trees close to or in contact with, Chugach power lines, please report them to the danger tree hotline (907) 762-7227.
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FOR IMMEDIATE RELEASE
July 1, 2024
Chugach Electric’s Beluga River investment surpasses $100 million in savings for members
Chugach Electric Association, Inc.’s (Chugach) investment in the Beluga River Unit (BRU) natural gas field in Cook Inlet has saved members more than $100 million over the past eight years. Chugach holds a two-thirds working interest in the BRU, with Hilcorp Alaska, LLC (Hilcorp) owning the remaining one-third and serving as operator of the field. Chugach acquired a 10% interest in 2016, and another 57% interest in the field as part of the acquisition of Municipal Light & Power in 2020. The cumulative net savings to Chugach since 2016 surpassed $100 million in May and was $101.2 million at the end of June.
“We are very pleased to see the ongoing savings for our members from this investment,” said Chugach CEO, Arthur Miller. “These savings translate to overall lower electric rates for the more than 91,000 members of the cooperative.” Miller added that with the ownership interest of the BRU, Chugach is the second largest producer of natural gas in Cook Inlet.
The savings from the ownership is calculated by comparing Chugach’s contract price with Hilcorp to the gas transfer price of BRU gas. The current contract price to Chugach is $7.78 per mcf and the current BRU gas transfer price is $6.45 per mcf, which provides Chugach members a savings of $1.33 per mcf. Chugach completed five wells in the Beluga River field in 2023, and there are plans to drill five more development wells in 2024. The BRU currently supplies 18% of total Cook Inlet gas production.
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Gwen Holdmann closes the information gap
on energy transition
Grasping complex energy topics can sometimes be difficult, especially when the energy landscape is constantly changing. There is often a lack of information in the energy news we are exposed to, and ACEP’s Gwen Holdmann is helping to close that information gap with a new podcast series.
The aptly named Closing the Gap podcast gives listeners a front row seat and a lot of context and information about the global energy transition and how it relates to Alaska.
In this series, listeners will find interviews and discussions with energy developers, researchers and thought leaders on topics ranging from renewable energy development and nuclear energy technology to carbon capture and sequestration, and more.
Subscribe to the series and learn more.
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Australian team collaborates with Alaskans on hydrogen, microgrids
Left to right: Matt Bergan, Paul McKinley, Laurent Nassif, David Edwards and Peter Kempster stand by a snow machine at Kotzebue Electric Association's wind and solar farm. Photo by Amanda Byrd/ACEP.
By Paul McKinley and Amanda Byrd
ACEP team members Amanda Byrd and Nathan Prisco visited and toured two microgrid communities in Western Australia in February. The visits included an innovative, high penetration renewable microgrid in Denham and the large regional hub community of Carnarvon, which is trialing innovative power systems.
The Australian visit inspired a knowledge exchange visit of David Edwards and Peter Kempster of Horizon Power, the Western Australia regional energy provider, to Alaska.
While the environments of Western Australia and the Arctic are entirely distinct, similar challenges exist in the two regions in deploying innovative technologies such as hydrogen systems, from land use and high-quality water availability to interconnection with the grid system and operation in harsh environments.
“When you remove the noticeable climate differences between Alaska and Australia, we face the same challenges and opportunities in servicing remote communities,” Edwards said.
Read the full story.
American Airlines' hydrogen-electric move. Axios
American Airlines has entered into a conditional purchase agreement with hydrogen fuel cell aviation upstart ZeroAvia for 100 hydrogen-electric engines intended to power regional jets with near zero in-flight emissions. (My comment: Hydrogen is very energy-intensive to produce, so cost of this will be interesting to follow.)
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Current Topics
With governor's signature, Juneteenth officially recognized as state holiday in Alaska. Alaska's News Source
Gov. Dunleavy signs bill to make Juneteenth an official state holiday in Alaska. ADN
Juneteenth, an annual celebration of the end of slavery in the U.S., is now an official paid state holiday in Alaska.
Iceland's fibre optic plans to close rural connectivity gaps by 2026. Eye on the Arctic
“Completing the fibre-optic expansion in full in such a short time will not only strengthen the country’s settlements, but also increase the country’s competitiveness by a significant margin,”
(My Comment: If only we could keep up with Iceland! Governor vetoes in this year’s budget took $11 million our of Broadband Assistance Grants to schools. These are rural schools who have minimal connectivity.)
Stuff I Found Interesting
This Anchorage nurse just became the first Alaskan to complete the grueling 'Triple Crown' of swimming. Alaska Public Media
Anchorage nurse Jordan Iverson has become the first Alaskan to complete a marathon swimming challenge called the Triple Crown of Open Water Swimming. Last Tuesday, Iverson swam 20.5 miles from England to France, finishing the final event in the challenge.
Three new extinct walnut species discovered in high Arctic mummified forest. Phys.Org
Today, the Canadian island of Axel Heiberg is a frozen desert devoid of nearly all life. But 45 million years ago, it supported a lush rainforest on the shores of the Arctic Ocean. Since then, the forest has been buried first beneath layers of sediment, then accumulated ice, leaving it frozen in time.
Microscopic fungi enhance soil carbon storage in new landscapes created by shrinking Arctic glaciers. Phys.Org
After the glacial ice is gone, microscopic lifeforms colonize the now accessible bedrock, accumulating nutrients and forming new soils and ecosystems. As soil can be a significant carbon store under the right circumstances, how exactly new soils form after the melting of glaciers is a question of great scientific and societal relevance.
Another new horizon for wood bison in Alaska. ADN
Next month, the Alaska Department of Fish and Game will start transporting about 65 wood bison to Minto Flats State Game Refuge about 35 miles west of Fairbanks for release into the wild there next year. Wood bison, once wide-ranging across the state, dropped to just a few hundred animals in North America by the early 1900s. Alaska’s program is the only one of its kind for wood bison in the United States.
Economy
Anchorage residents embracing rooftop solar cite concerns about natural gas shortfall. Alaska Public Media
Dunleavy announces budget vetoes, keeps $175 million in extra school funding. ADN
Dunleavy signed the budget Thursday, but the governor didn’t release any information about his funding vetoes until 4 p.m. Friday. The bill was signed in the company of seven Republican House majority members, and no members of the Senate were present. Members of the press and the public were not informed about the budget signing until a day after it had taken place.
(My comment: Why would a budget be ‘secretly’ signed, with only certain legislators invited? This is a little weird.)
Fisheries
Graphite Creek 2-24 filed program begins. Mining News North
Graphite One Inc. June 26 announced the start of a 2024 exploration program focused on collecting the final data needed to complete a feasibility study for developing a mine at its world-class Graphite Creek project in western Alaska.
Coeur encouraged by Kensington drilling. Mining News North
Coeur Mining Inc. June 27 reported that its multi-year exploration program at Kensington continues to deliver wide drill intercepts with high-grade gold at this mining operation in Southeast Alaska.
Education
Alaska Supreme Court weighs whether correspondence education lawsuit wrongly targeted state. Alaska Beacon
Alaska Supreme Court sides with state, allows correspondence school laws to stand. Alaska Public Media
But, at the same time, the court declined to say whether the use of allotments at private schools is constitutional.
The court said that because school districts approve vendors to be paid with allotment funds, the state was the wrong party to sue. The justices remanded the case to the lower court for further proceedings on that point.
Why last week's Alaska Supreme Court ruling isn't the final word on homeschool allotments. Alaska Public Media
But there’s a key question the court didn’t address: whether Alaska correspondence schools can allow parents to spend public money at private schools.
Politics
Presidential immunity extends to some official acts, Supreme Courts rules in Trump case. Alaska Beacon
State of Alaska issues regulations for carbon offsets program. ADN
The state is looking at three areas to start selling carbon offsets: Haines State Forest, Tanana Valley State Forest and state forested land in the Matanuska-Susitna region. All three pilot projects are expected to be around 75,000 acres to 100,000 acres each. Anew, an outside consultant, estimated in 2022 that the state could bring in $8 million per year from the three areas, in the first decade.
Editorial: Alaska Legislature must fix its unconstitutional action. ADN
(My comment: The Legislature branches, House & Senate, have extended past midnight on Day 121 several times. None of the passed legislation has been challenged in court or vetoed for that sole reason by a Governor. If the floor session is already convened, the actions taken have not been deemed “unconstitutional”.)
Childcare
Day care: the moment in history when politicians and families agreed. Alaska Beacon
Healthcare
1 big thing: Little progress on equity. Axios
"The United States likes to see itself as the world's standard bearer of excellence in health care. Yet when compared to other industrialized nations, we are not the exemplars we believe we are,"
Supreme Court rejects nationwide opioid settlement with OxyContin maker Purdue Pharma. ADN
USDA fines Alaska $11.9 million for failing to ensure SNAP recipients are eligible. Alaska Public Media
The federal agency behind the food stamp program is assessing an $11.9 million fine on the state of Alaska for failing to accurately gauge who is eligible for benefits, according to a letter from the U.S. Department of Agriculture’s Food and Nutrition Service.
USDA penalizes Alaska $12 million for overpaying food stamp benefits. Alaska Beacon
Alaska’s Department of Health owes the federal government $11.9 million because it overpaid food stamp benefits last year, the U.S. Department of Agriculture has informed the state.
(My comment: This feels very ironic since we had a long wait list with delays in food stamp distribution. Families and food pantries suffered due to state government inefficiencies. Now Feds fine us for “overpaying benefits”!)
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Alaska Oil Resource Values
Alaska North Slope crude oil price (7/3/24): $88.12
FY24 budget (beginning 7/1) is fully funded at a
forecast of $73/barrel of oil.
Price on 9/30/23: $87.99
Price on 9/30/22: $86.91
Price on 6/29/22: $116.84
Price on 3/08/22: $125.44
Price on 12/22/21: $75.55
ANS production (7/3/24): 411,274 bpd
Hilcorp expanding. Petroleum News
Hilcorp announces plan to buy Eni's oil fields on Alaska's North Slope. Alaska Beacon
Hilcorp, a privately held independent producer that came to Alaska only a little over a decade ago, is now one of two major operators in the state. The deal with Eni gives it an even bigger hold on the North Slope, where it has been operating the nation’s largest oil field for the past four years.
Graphite Creek 2-24 filed program begins. Mining News North
Graphite One Inc. June 26 announced the start of a 2024 exploration program focused on collecting the final data needed to complete a feasibility study for developing a mine at its world-class Graphite Creek project in western Alaska.
Coeur encouraged by Kensington drilling. Mining News North
Coeur Mining Inc. June 27 reported that its multi-year exploration program at Kensington continues to deliver wide drill intercepts with high-grade gold at this mining operation in Southeast Alaska.
Alaska North Slope group sues Biden administration over oil-development limits. Alaska Beacon
The limits on oil development are at the heart of the lawsuit, which claims the rule “turns vast swaths of the NPR-A into a de facto conservation system unit.” The members of Voice of the Arctic Iñupiat, a diverse group that includes the North Slope Borough government, Arctic Slope Regional Corp., the Iñupiat Community of the Arctic Slope and Ilisagvik College in Utqiagvik, have significant interests in continued oil development in the Indiana-sized reserve, the lawsuit states. The members benefit from revenues and employment generated through oil development there, it says.
(My Comment - I completely support the North Slope plaintiffs. First, this is the National Petroleum Reserve - Alaska (notice “petroleum reserve”), the title given it by the Federal government and intended for development of the petroleum resources. But second, most importantly, the value of the resource and land have been shown to significantly benefit the indigenous people of the area. Independent, retrospective research has documented the vast improvement in the health and wellbeing of the people of the North Slope with the development of the oil resources there.)
Voice of the Arctic Iñupiat sues to overturn NPR-A rule. Alaska Public Media
Biden's LNG limbo ... is now in limbo. Axios
A Louisiana federal judge has blocked the White House pause on new LNG export licenses to major markets, but the on-the-ground effects of the order are pretty hazy for now. The injunction yesterday is a victory for attorneys general in 16 GOP-led states and industry groups battling the pause, which Biden officials announced in January to weigh the economic and climate effects of surging exports.
(My comment: Alaska holds an export license for LNG. Over 40 years ago we began exporting LNG to Japan; this exporting was suspended in about 2010, when Cook Inlet gas production began to decline.)
Precious Metal Prices
July 3, 2024
Gold - $2371.54
Silver - $30.58
Platinum - $1019.43
Palladium - $1054.77
Rhodium - $4725.00
Alaska Permanent Fund
website
Fund value May 28, 2024 - $80,277,300,000
PFD payout from ERA, Fiscal years 1980-2023: $29.7 Billion
Cost of PFD in Oct. 2022: $2.2 B
Cost of PFD Oct. 6, 2023: $881.5 Million
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Click here to see list of accomplishments from the 33rd Alaska State Legislature Senate Majority.
Click here to view my webpage. It has links to all previous newsletters.
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