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Alaska Editorial: Governor outlines positive step toward natural gas distribution

Posted: December 14, 2012 - 1:04am

This editorial was first seen in the Fairbanks Daily News-Miner:

Gov. Sean Parnell on Dec. 7 did what needed to be done with the serious problem of high energy costs in the Fairbanks area: He laid out a proposal that aims to speed the arrival of natural gas to the Interior by uniting a fractious group of competing entities.

And in doing so he also signaled to our neighbors elsewhere in the state that he is acutely aware of the economic damage being wrought here. People are moving away. Business decisions are being affected.

Gov. Parnell’s $355 million plan consists of a mix of bonds, cash and tax credits to build a natural gas liquefaction plan on the North Slope and a residential and industrial distribution system. Gas would be trucked to Fairbanks from the North Slope plant.

Gas could be delivered to Fairbanks, likely to power plants and existing gas customers, late in 2015. Homes and businesses that aren’t yet piped for gas would come online later. Those beyond the reach of a distribution system would be able to acquire propane.

The result for most everyone around here would be an end to crippling winter energy costs.

The governor’s plan isn’t just about Fairbanks, North Pole and the homes and businesses in between, though. His plan could lead to natural gas being provided to Interior river communities and to Southcentral, which is running low on its supply of Cook Inlet gas.

The plan will require legislative approval for nearly all of the financial outlay. A fraction — $30 million in tax credits — was previously approved. Legislators need to conduct their due diligence on the plan, of course, but they need to respond quickly. The Legislature opens its session in just over five weeks. The fact that the governor has put out his proposal now gives legislators time to begin forming questions and seeking answers.

Having Gov. Parnell involved at the center of the search for a solution is key. He needs to maintain that involvement, and bring others along to his point view, until the warmth of a blue natural gas flame begins spreading across the land.

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Latitude58
14494
Points
Latitude58 12/14/12 - 09:04 am
2
2

Bait & Switch

Be careful, Fairbanks. Parnell will do the same thing to you that he just did to Southeast and their ferries. He'll downsize those gas trucks to BBQ propane canisters.

islander
1193
Points
islander 12/14/12 - 09:32 am
3
2

seriously

Parnell is not an expert on the best solution for gas to the interior. Or is this just another major giveaway to some political contributor. For the trucking idea is one of those things that sounds so quick and easy that you have to wonder just why the private promoters need to have state funding to make it work. Private industry is certainly not know for making profits for the government or providing good to the public at less than the price they can get.

Next these promoters will be tell us that with a little bit of highway construction they can truck gas all the way to Juneau.

The only real gas in this story is that being passed by the governor.

dennyh
3271
Points
dennyh 12/14/12 - 07:03 pm
1
2

Jeez you two...

Are sour pusses.

Alaskastu
1649
Points
Alaskastu 12/15/12 - 11:43 am
1
0

He's all about giving federal

He's all about giving federal money back, cutting benefits to children and single mothers, and huge handouts to development.

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