Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

October 10, 2024

Dear friends and neighbors,

 

Photo: Whittier is part of my Senate District E. Its a breath-taking place on a clear day!

 

 

Cost & Options for Energy

RCA issues order mandating conditions for new Chugach Electric tariff. Petroleum News

Based on evidence presented, the commission determined that the target TIER should remain at 1.55, a level at which, the commission said, Chugach Electric would be able to maintain its financial integrity.

(My comment: A reminder that the Regulatory Commission of Alaska (RCA) is an agency charged with consumer protection. Rate increases like this must be reviewed by the RCA and amended as appropriate.)

 

OPINION: Imported natural gas may be less costly than many expect ADN

 

U.S, and U.K. Researchers Fabricate First Capsules for Advanced Reactor Materials. Office of Nuclear Energy

The project supports a larger effort between the two countries to share nuclear energy user facility resources to advance civilian nuclear energy technologies.  The capsules will undergo irradiation testing later this year at Idaho National Laboratory (INL).

 

Three Mile Island Restart. Reuters

A power deal to help resurrect a unit of the Three Mile Island nuclear plant in Pennsylvania in what would be the first-ever restart.

 

Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News

 

New Alaska utility energy storage system to support Railbelt transmission. Alaska News Source

Chugach Electric Association and Matanuska Electric Association officials celebrated the unveiling of a new Battery Energy Storage System (BESS) Monday in an effort to improve energy storage for Southcentral Alaska and help prevent mass electrical outages in the future.

 

 

Items in this Newsletter:

·     Permanent Fund Corporation presentation

·     Seward Safer Highway information

·     Trends - Alaska Job Projections 2022-2032

·     Current Topics, Stuff I Found Interesting, Economy, Education, Politics, Healthcare

·     Resource Values, Permanent Fund

·     Best Workplaces Alaska

On September 27, Devon Mitchell, the Exec Director and CEO of the Permanent Fund Corporation, spoke to CommonWealth North.

The recording of the presentation is here.

The slide deck can be seen here.

 

Last week I provided the APFC Trustee Paper #10, which is the topic of the 9/27 presentation. It discusses the issues that will be deliberated by the Legislature this coming January about the importance of making some changes in the Fund sturcture.

 

A reader responded that he felt nothing should change, that the PFD policy, the Earnings Reserve Account, and the management of the Principle of the Fund have worked for 40 years so why change anything?

 

Great question!

As you will hear in the recording of the presentation, the management of the Fund has changed a great deal over the years.

Mr Mitchell pointed out that the reason the Principle is so large, and earning so much, is because over the years, previous generations of Alaskans understood the importance of leaving a legacy of following generations, an intergenerational promise.

 

Previous generations didn't spend windfall funds on themselves; they gave up that immediate gratification to provide a stable Fund for the future.

I am embarrassed to say, as a Baby Boomer, that it seems to be mostly my generation that is clamoring to spend down the fund, through irresponsibly large Dividend checks.

 

Alaskans of my generation have lived the luxury of other people paying our bills through the taxation of companies doing business here, mainly oil.

 

But what very few Alaskans know is that the earnings that were available to spend over the 40+ years were supposed to be divided: 50% to dividends checks + 50% to government services spending. BUT the state government never took its 50%; its was plowed back into the Fund, making it grow faster.

 

From 2014-2018, oil prices fell sharply (Slide 16); now we couldn't sit back any longer and let other people pay our bills and we had to rely on our savings accounts to pay for services.

 

Our savings were very depleted by 2019 when, for the first time, state government accepted its part of the Fund earnings to pay for state services that benefit all Alaskans.

 

Today: Our savings are precariously low. The Earnings Reserve Account cannot sustain the 5% draw on it, plus inflation proofing.

 

To combine the ERA and the Principle into one Fund that then functions like other endowment funds makes sense for the future. That is the explanation that Mr. Mitchell lays out.

 

I urge you to listen to the presentation. The Trustee Paper #10 is very understandable.

 

This will be a subject that the Legislature will be discussing and it be more meaningful after looking at the presentation and the Trustee Paper.

The Safer Seward Highway Website is full of information about the project and its progress.

 

On Sept 25 I had an update on the project.

The website shares issues that the Stakeholder Working Group has helped to bring forward for consideration as the design is considered. Its very impressive to see the wide diversity and number of stakeholders that were included in the discussions.

The public opinion poll is interesting, as is the map of the various types of accidents over the years.

If you are a user of the Seward Highway, I think you will find this site very interesting.

Current Topics

Americans' growing reliance on government. Axios

Residents in more than half of America's counties now draw a substantial share of their total income — more than a quarter — from the government, according to an Economic Innovation Group analysis. The vast majority of those counties are rural and vote overwhelmingly for Republicans.

 

OPINION: Politics can be more than binary - Anchorage Daily News

 

Alaska can expect very different approaches on resource projects, depending on the president - Alaska Public Media

 

Winter Off to Slow Start, Late Freeze-up, Above Normal Temps. Alaska Public Media

Winter’s arrival has been a bit delayed in much of Alaska, as warmer-than-usual temperatures persist and any snow that’s lasted more than a day is either at higher elevations or latitudes.

 

Stuff I Found Interesting

Many Alaskans say they want parties to work together. Ak Public Media

Rosputko was one of dozens of Alaskans we’ve spoken with this election cycle about some of the most important issues facing the state and their communities. Many, like Rosputko, told us they wanted politicians to work together across the aisle.

 

OPINION: Protect Voting Rights, No on Ballot Measure 2. ADN

Ballot Measure 2 would allow political parties power to exclude all voters from voting in party primary elections unless they register with the party. More than 60% of Alaskans chose not to affiliate as Democrat or Republican and could lose the right to vote in state-funded primary elections.

 

No evidence of widespread non-citizen voting or registration. Beacon

Alaska court records show only one prosecution for noncitizen voting since 2011, a case filed in 2023 that’s still unresolved. Tupe Smith was born in American Samoa, an island territory in the South Pacific. Its residents are U.S. nationals — having some of the same legal rights as other Americans — but aren’t citizens.

 

Scientists Discover Mysterious Modern Underwater Ice Structures on Arctic Seafloor. SciTechDaily

“Our work shows that permafrost ice is both actively forming and decomposing near the seafloor over widespread areas, creating a dynamic underwater landscape with massive sinkholes and large mounds of ice covered in sediment,” said Charlie Paull, a geologist at MBARI and the lead author of the study. “These dramatic and ongoing seafloor changes have huge implications for policymakers who are making decisions about underwater infrastructure in the Arctic.”

 

National Security

Russian, Chinese vessels spotted in Bering Sea, showing 'increased interest in the Arctic' - Alaska Public Media

This is the third time since July that the Coast Guard has reported encountering either Russian or Chinese military vessels in the region. Roughly two years ago, crews encountered Russian and Chinese warships traveling together about 75 miles north of Kiska Island, in the Western Aleutians. And in 2023, U.S. Navy warships were dispatched to the Aleutians, after 11 Chinese and Russian military vessels were found operating in the region.

 

 

Economy

OPINION: Alaska’s state government has a payroll crisis. We need answers. - Anchorage Daily News

 

ASRC leads Alaska Business Top 49ers for 29th year. Petroleum News

Arctic Slope Regional Corp. held the number one spot on Alaska Business 2023 Top 49ers ranking. This marks ASRC's 29th consecutive year as the largest business established and headquartered in Alaska.

 

Nova takes the next big step at Estelle. North of 60 Mining News  

Nova Minerals Ltd. Oct. 2 announced that it has hired Whittle Consulting to carry out optimization studies for Estelle that will focus on establishing an initial mine at the RPM deposit that can be scaled up to a larger operation at the gold-antimony project in Alaska's West Susitna Mineral District. Lying about 100 miles northwest of Anchorage, Alaska, Estelle hosts 244 million metric tons of S-K 1300-compliant measured and indicated resources averaging 0.3 grams per metric ton (2.72 million ounces) gold, plus 231 million metric tons of inferred resource averaging 0.3 g/t (2.45 million oz) gold.

 

Changing Jobs Can Put a $300,000 Dent in Retirement Savings. Wall Street Journal

The 401(k) was supposed to solve a key problem of pensions: Workers had to stay in a job for decades to get a decent benefit. Even though 401(k) savings remain with workers who switch jobs to seek better salaries and more fulfilling work, this research suggests people who stay put keep the most momentum in their retirement savings.

(My comment: Defined Benefit Pension provides a solid, sustaining retirement for the same “stay put” career.)

 

Health Care

OPINION: Dunleavy’s birth control veto makes life harder for Alaskans - Anchorage Daily News

 

U.S. National Trends and Disparities in Suicidal Ideation, Suicide Attempts, and Health Care Use. The Pew Charitable Trusts

There was a 22% rise in suicidal ideation overall, with a pronounced 45% increase for young adults ages 18 to 25. Less than 50% of people with suicidal ideation received mental health care, and the groups at highest risk were even less likely to receive care.

 

Inflammation-serious rick to your health. Wall Street Journal

 

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (10/9/24): $75.05

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 (10/8/24): 4469,611 bpd

 

Hilcorp again eyes Interior Alaska for oil exploration. Alaska Beacon

 

Kairos Power Breaks Ground on Molten Salt Production Facility. Department of Energy

The salt production facility will produce reactor-grade Flibe, which is a chemically stable combination of lithium fluoride and beryllium fluoride salts, that will be used to cool Hermes’ TRISO-fueled pebble bed design and allow it to operate near atmospheric pressure.

 

Precious Metal Prices

October 9, 2024

Gold - $2615.60

Silver - $30.70

Platinum - $967.00

Palladium - $1080.00

Rhodium - $5075.00

 

Alaska Permanent Fund

website

 

Fund value September 24, 2024 - $81,960,500,000

PFD payout from ERA, Fiscal years 1980-2023: $29.7 Billion

I am honored to serve on the Board of Directors for Alaska Behavioral Health, named one of the Best Workplaces in Alaska in 2024!

 

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.

Feedback is always welcome.

Have a great week!

 

Cathy 

 

Personal Contact:

907.465.4843

sen.cathy.giessel@akleg.gov

 

Past Newsletters on my website



My Staff:

·     Chief of Staff: Jane Conway (from Soldotna)

·     Office Manager: Paige Brown (from Anchorage/Girdwood)

·     Resources Committee Staff: Julia O'Connor (from Juneau)

·     Legislative Analyst: Angela Rodell (from Juneau)

 

 

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Senator Cathy Giessel's Newsletter | 12701 Ridgewood Rd | Anchorage, AK 99516 US