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CORDOVA - Cordova Electric Cooperative Executive Director Clay Koplin used a grant of more than $2 million that arrived May 22 to wipe out the final debt for Cordova's Power Creek Hydro project.

The final debt reimbursement arrived from the Alaska Legislature and the governor's office in the wake of the passage of the operating budget, House Bill 310.

This is not to say that the Cordova Electric Cooperative is clear of all debt.

"We have about $9 million of debt now," Koplin said. "Some is interest free from the state. Most of this debt was incurred during the process of placing the overhead lines to underground, a very expensive project. Also, the Whitshed extension program added to this debt load."

Cordova has 1,500 meters and a large seafood-processing capacity that is going to need more electricity than the Orca diesel plant, built in 1984, can handle.

"This is the reason why a down payment has been made on a new $3.9 million, American-made diesel generator," Koplin said.

"No. 1 is the load to carry the fish processors, and this new plant will save from 10-15 percent on the diesel usage," he added. "With the soaring costs of fossil fuels, that percentage could save thousands of dollars.

"This new diesel plant is a necessary evil. The old plant is below emission standards, and it is very challenging to replace parts. I will be searching for all the grant assistance I can find, including working with the new Alaska Energy Program, which has been funded for $50 million."

Funding is being sought for a new dam at Humpback Creek, which would extend the hydro season to year-round.

"We could possibly have a dam in 10 years with proper funding and plan approval.

Wind could see completion in five years and an increase in the Power Creek output in two years. There is more opportunity than challenges in today's energy arena," Koplin said.

Right now, the best solution is energy conservation, he said.

"Alaska Commercial is switching to energy-efficient technology right now," Koplin said. "The cheapest electricity is what you don't use."

Last month, at the Alaska Municipal League Communities Conference on Climate Change in Anchorage, Denali Commission energy project manager Kathy Prentki advised rural residents to prioritize projects that conserve the most energy, even if they're not the flashiest.

Projects such as the wind farm at Kotzebue and a geothermal plant at Chena Hot Springs can create a lot of buzz, but for some communities, Prentki said, upgrading existing diesel systems will save more fuel and money than investing in alternative energy.

"A lot of people want to have their renewable energy project that's visible and exciting, but that's not always the best thing to do with your money," she said. "Everybody needs to think about what they need and can support in their community and not grab the first alternative energy project that comes by."

Koplin also stated that some of Cordova's future projects include changing the existing First Street lights to LED.

"Also the opportunity may arise to have free energy audits available and a lot more education on conservation," Koplin said. "With the Humpback Hydro project on at 100 percent capacity, we have had no diesel deliveries since May 19, a definite step in the right direction."

Koplin thanked the cooperative's lobbyist, Larry Markley, for his role in getting this final debt reimbursement granted, as well as "the persistent Cordova Electric Cooperative board, Govs. Murkowski and Palin, the entire community of Cordova, the Cordova City Council, Mayor Tim Joyce, lobbyist Kate Tesar, Sen. Albert Kookesh, Rep. Bill Thomas, and the Eyak Corp., who assisted in the other half of funding through the Indian Energy Act," Koplin said.

"The end result has been over $6.6 million in diesel fuel savings and a 12 percent reduction in rates," Koplin said.