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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,
Today's newsletter is about energy. You pay a lot for lights and heat. That is about to go up in price.
I've been sharing information with you about the shortage of gas for utilities and ENSTAR. It’s real and it’s about to result in much higher prices for us consumers. You can expect to be billed at least 30% more in the near future, just to keep your lights on and your home heated. Schools and businesses will also be paying more.
There is more gas in Cook Inlet, but it is expensive to produce. One company is the main gas producer and that is Hilcorp.
BlueCrest Energy is a company developing oil onshore on the Kenai Peninsula. They know of a gas deposit but it’s offshore and they can’t afford to access it. To reach the gas requires an offshore platform and lots of money.
So whatever gas is available to utilities is going to be much more expensive. As I’ve shared with you, it is highly likely that the gas will be imported, probably from British Columbia. It will cost more than the Cook Inlet gas of the past. The pipeline from the North Slope is not any closer to reality now than it was 40+ years ago.
Because of all this, I have been working with my House and Senate colleagues to put together a future focused energy policy for our state. We believe that it will be very similar to the recommendations from the Energy Task Force.
The point is, we are offering an actual policy to move forward, bringing a secure energy future and a viable economy to our state. We must change the direction we have been going and start to move forward again.
Items in this Newsletter:
· Modernizing Alaska's Railbelt grid with lessons from Iceland
· AEA Secures $206.5 Million from U.S. DOE to modernize Alaska's energy infrastructure
· AK DOT&PF Snow Summit
· Current Topics: Education, Economy, Minerals, Health Care, Politics
· Resource Values, Permanent Fund
· Alaska History
· Andy, the Driving Safety Dog and Cell Phones
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Modernizing Alaska’s Railbelt grid
with lessons from Iceland
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Iceland’s Landsnet transmission network, totaling approximately 2000 miles including 570 miles of 220/230 kV lines, 800 miles of 132/138 kV lines, 600 miles of 66/69 kV lines and 25 miles of 62 kV lines connecting the small community of Húsavík.
By Amanda Byrd
The Governor of Alaska recently charged the Alaska Energy Security Task Force with developing strategies or pathways for achieving 10 cent/kWh power across the state. Currently, the delivered cost of power on the Railbelt averages 22 cents/kWh. It is clear that, with the additional uncertainties around Cook Inlet gas supply, Alaska’s business-as-usual practices are not adequate.
A new white paper prepared by Alaska Center for Energy & Power (ACEP) researchers Gwen Holdmann and Erlingur Gudleifsson delves into the elements that shaped Iceland's present energy landscape, its current market dynamics, and the insights Alaska can glean from Iceland’s experiences as it navigates its own energy transition.
As Alaska looks toward transitioning the Railbelt grid to delivering increasingly renewable-generated power and at a lower price, transforming how we generate and use power, relies on modernizing the grid infrastructure. This includes not only physical infrastructure, but the governance, ownership, and cost recovery methods.
Looking to energy economies that have successfully transitioned from a carbon-heavy power generation fuel to near 100% renewables can offer insights to help make this change. Iceland, in particular, can serve as an instructive model for Alaska due to similar installed capacity, grid length, population served and environmental conditions.
Today, Iceland's energy market exemplifies what Alaska aspires to develop. The average price of delivered power in Iceland stands at less than 10 cents/kWh. Iceland's Ring Grid, managed by a state-owned transmission system operator, operates under the principles of open access, transparent pricing, and non-discriminatory transmission.
Successfully modernizing Alaska’s Railbelt grid benefits residential consumers but is also key to Alaska’s ability to be competitive in a changing global economy that is increasingly reliant on accessible, affordable, and low-carbon energy sources.
Read the white paper, “Lessons Learned from Iceland’s Ring Grid: Ownership and Asset Management Strategies for an Islanded Grid” and watch a presentation by Gwen Holdmann here.
-From Alaska Center for Energy & Power Newsletter
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This federal grant is a very big deal. This will enable seriously needed upgrades to our electric grid. It is a major emphasis for the work I am doing.
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AK DOT&PF 2023 Snow Summit
Alaska Department of Transportation and Public Facilities hosted a snow summit last Friday about their goals, new technology, and what they are doing statewide to improve transportation in the winter.
A complete street is safe and feels safe for all users. It prioritizes safety, comfort, and connectivity for all users. Space is the key for this plan, and one example could be a bike lane and large sidewalk in the summer, where the bike lane could be used for snow storage in the winter.
511 has some improvements they have made to their service, with more coming. They will now be working with improved timelines, airport updates, ferry updates, rest areas, and geofencing for school buses coming up in your route. They have considered offering their data to Google and Apple Maps to increase the accuracy of directions given to most people. If there is anything else you would like to see 511 add to their service, you can let them know by going here.
The Anchorage International Airport Snow Response Team won the Exceptional Service Award for 2023! We want to congratulate them and keep up the good work!
Contractors are used by DOT during emergency situations to provide support and make sure service does not slow during large events, such as landslides, earthquakes, large snowfalls, and ice events. DOT also stated that due to the current recruitment & retention issues statewide, contracting is necessary.
Avalanches are a big issue with Alaska highways. There are long-term measures that can be taken to mitigate and ensure safety, such as creating more space between the avalanche paths and the road, and walls to block the incoming snow from the path, but often these measures are much more expensive outright. Commonly, DOT uses short term measures in the form of road closures, signage, and preemptive avalanches to mitigate the risk. Below, you will see the statewide rankings for avalanche prone roads, and the hazard levels they possess.
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Ice roads and seasonal roads are a very cost-efficient way to travel from smaller communities to hubs. As airfare and cargo prices increase, driving can often be a more cost-effective way to travel and pick up groceries and cargo.
Snow machine trails are used for both recreational and general transportation in different communities. DOT transferred this program in July of 2023, so they are still working on getting it up and running.
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Current Topics
Vic Fischer, the last surviving signer of Alaska's constitution, dies at 99. Alaska Public Media
Vic Fischer was a stalwart supporter of the best for Alaska. His impact will live on. He will be missed.
Latest Alaska crime report shows a 67% increase in murders and a slight overall decrease in crime. Alaska Beacon
The murder rate in Alaska increased dramatically, though there was a slight overall decrease in crime statewide in 2022, according to an Alaska Department of Public Safety report released Monday.
Education
Anchorage superintendent discusses changes for next school year, including new start times and career academies. Alaska Public Media
Anchorage students finished their first quarter on Friday, but many eyes are already on next school year, when the Anchorage School District will roll out three major changes. ASD Superintendent Jharrett Bryantt says the first change will be that all sixth graders will be middle school students. The second change has to do with school start times.
Economy
Women face more tech-driven job losses. Axios
Technology will eliminate scores of jobs over the next decade — and two-thirds of those losses will hit jobs currently held by women without college degrees.
Politics
AFN delegates pass 28 resolutions, including plea to Congress for subsistence action. Alaska Beacon
Members of this year’s Alaska Federation of Natives conference in Anchorage voted Saturday to ask Congress and the federal government to protect and increase subsistence hunting and fishing rights for rural Alaska Natives.
Health Care
American reality: Too little addiction treatment for kids. Axios
An alarming rise in overdose deaths among children and teenagers is colliding with an inadequate pediatric mental health system — including a lack of addiction treatment.
Lonely world. Axios
One of the most common problems in our world today, touching millions of people on every continent, is persistent, pervasive loneliness: 1 in 4 people in the world say they're lonely. The pandemic spotlighted loneliness around the world — and the problem isn't going away. This year, Surgeon General Vivek Murthy declared loneliness an epidemic in the U.S.
Congress has a chance to reduce drug patent abuses, lower costs for Alaskans. Alaska Beacon
One of the most egregious tactics Big Pharma employs to abuse our patent system is called “product hopping.” This is when companies make small changes to a drug, such as its intake method or dosage, and then file new patents to protect these changes. Meanwhile Big Pharma companies shift patients from the older version of the drug onto the newer version, which has new patents. By doing this repeatedly, pharmaceutical firms are able to create “patent thickets” around their most lucrative products. This locks patients into paying higher prices for the same drugs while preventing them from accessing more affordable alternatives.
(My comment: Don’t forget the other cost-driver coming from Insurance Companies through Pharmacy Benefit Managers, who negotiate rebates from Big Pharma then pocket the money, instead of passing it on to you, the consumer.)
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Alaska Oil Resource Values
Alaska North Slope crude oil price (10/25/23): $91.08
FY24 budget (beginning 7/1) is fully funded at forecast $73/barrel oil.
Price on 9/30/23: $87.99
Price on 9/30/22: $86.91
Price on 6/29/22: $116.84
Price on 3/8/22: $125.44
Price on 12/22/21: $75.55
ANS production (10/24/23): 462,426 bpd
China's moves cast pall over EVs. Axios
China will now limit how much battery metal it exports, potentially casting a cloud over the future of the globe's transition toward electric vehicles. It's difficult to make an EV today without metal from China. Now, that country is using its mineral advantage to protect itself amidst escalating global conflicts.
(My comment: the U.S. will NOT achieve any electric vehicle manufacturing, wind towers, battery energy storage and so on without graphite, gallium, and germanium, among other minerals. Earlier this year, China banned the export of germanium and gallium. Or they are “limiting” export of graphite.
We ship nearly all our mineral concentrates to China for refining. The U.S. does no refining of minerals, making us subservient to China. Once our U.S.-mined minerals cross over to China, the minerals become the possession of China.
The Red Dog mine (Northwest Alaska) produces germanium which is shipped to Canada for refining; this means that the U.S. can still access this U.S.- produced mineral.
Alaska has a huge, high-grade deposit of graphite in the Nome area. This mineral will be shipped to Washington State for refining if all permits are issued. Again, the U.S. will have access to our own mined minerals.
Alaska may have gallium present. Our Dept. of Natural Resources geologists are hot on the trail to find some of economic value.
Alaska can supply our country with the critical minerals for today and tomorrow.
Market prices for Renewable Fuel Standard credits are falling. EIA
The prices of ethanol (D6) and biomass-based diesel (D4) renewable identification number (RIN) credits—the compliance mechanism used for the Renewable Fuel Standard (RFS) program administered by the U.S. Environmental Protection Agency (EPA)—each fell by more than one third between September 1 and October 16, our data shows. As of October 16, biomass-based diesel RINs (D4 RINs) were $0.90, and ethanol RINs (D6 RINs) were $0.89; both prices were more than 40 cents lower than on September 1. D4 RIN prices have not been this low since 2020, when EPA granted several small refinery exemptions that reduced fuel blending requirements and RIN prices.
Oct. 25, 2023 Precious Metal Prices
Gold - $1995.51
Silver - $23.07
Platinum - $917.49
Palladium - $1168.00
Alaska Permanent Fund
website
PFD payout from ERA, Fiscal years 1980-2024: $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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Alaska History
October 27
· 1982 - Aurora 1 telecom satellite launched
October 29
· 1965 - Nuclear Test on Amchitka Island
October 30
· 1983 - Alaska's four time zones combined into only two
October 31
· 1935 - Juneau-Douglas Bridge opened
November 2
· 1976 - Voters approved Constitutional Amendment (Art. IX, Sec. 7 & 15) creating the Alaska Permanent Fund (vote: 75,588 yes; 38,518 no)
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Andy,
the Driving Safety Dog, Says...
No Cell Phone use when Driving!
(Click here to see video)
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