Kake Tribal Corp President's letter to Petersburg Pilot

November 28, 2009
Ron Loesch Publisher and Editor Petersburg Pilot Box 930 Petersburg, AK 99833
pilotpub@gmail.com RE: Letter to the Editor on Hydropower and connectivity to Kake
Dear Mr. Loesch
I read your November 19 guest editorial. I would like to offer a positive but different perspective for all to consider. Our corporation represents most of the original families of Kake and many in Petersburg. Petersburg, Ketchikan and Wrangell all benefit from heavily subsidized hydropower resources and transmission infrastructure. According to the State of Alaska Department of Revenue, the Tyee and Swan generation facilities and the Swan Tyee Intertie was gifted by large direct State subsidies amounting to $268 million dollars with a small balance coming from government subsidized loans. Theoretically, the government owns these projects to provide subsidized power cost for the benefit of all Alaskans, including the rural communities. Government sponsored socialized power is beneficial when it is equally shared among its citizens, but as you can see by visiting Kake or Angoon this public strategy has failed to bring our people and industry low cost power.
Kake has received promises and waited 40 plus years for an intertie to bring us this cheap power. All SEAPA communities are in the process of converting municipal buildings, businesses and homes from oil to cheap electric heat. Is there a guarantee of SEAPA power to sell Kake from these government subsidized assets? Assuming Kake gets an intertie, is there a guarantee that SEAPA will sell electricity to Kake at the same 6.8 cent per kilowatt rate?
Contrary to your editorial the public and private cooperative developments in Thomas Bay are not unique. Many infrastructure projects around the country have public and private cooperative agreements because this yields lower costs, more efficient management and serves the ratepayer better. Wrangell already has a lucrative power sales agreement from Cascade so there is even a local example. Despite rhetoric, Cascade and the City of Angoon projects appear ready to work with others to deliver low cost power, including Petersburg.
The public and private Thomas Bay projects will provide much needed family wage jobs for Kake residents, Angoon residents, Wrangell residents, and yes, Petersburg residents as well. Each hydropower project expects to produce 130 direct jobs and many indirect jobs. Petersburg’s restaurants and businesses would most likely appreciate the extra business. The public/private Thomas Bay projects would be able to sell lower cost competitive power to Kake so we can rebuild our community with the substantially equal power costs enjoyed by Wrangell and Petersburg. What is wrong with energy self determination and independence from government?
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Further, rational thinking dictates that the Kake to Petersburg Intertie will be constructed along the least expensive route. Everyone understands that the lowest cost route is the route that intersects with the Cascade, Ruth and Scenery hydropower projects that will flood not only Kake but all of Southeast Alaska with low cost hydropower. The south-central route for the Kake Intertie would burden the Kake ratepayer with excessive O&M transmission costs if these costs are not shared with the hydro projects in Thomas Bay on the proposed Northern route. The least expensive route is the one that delivers the lowest cost per kilowatt hour to Kake ratepayer.
Your guest editorial also fear baited the claim that Thomas Bay power will fuel mines and lead to water contamination all because of the public/ private development of Thomas Bay. This statement is baseless and demonstrates a lack of depth of understanding. The power from the projects will be sold locally and then the surplus to the lower 48. Many of the original families of Kake and Petersburg have fought for and served our country. Please explain what is wrong with providing ourselves and our nation with energy security and lessening our dependence on foreign oil supplies while reducing green house gas emissions at the same time?
Your guest editorial suggests that electrical costs will increase with private participation in hydropower and transmission. The comparative cost and associated success of the recent FERC competitive process is a prime example of how private industry brings the public sector superior know-how and competition that pure governmental intervention and management could never match.
Kake Tribal Corporation has invested in Cascade Creek, LLC and wholly supports the City of Angoon’s development of Scenery and Ruth Lakes because these projects will deliver the lowest cost power to the citizens of Kake regardless of politics and that is doing the right thing by our people and our region. The unsuccessful strategy deployed by PMPL has resulted in no Petersburg FERC permit, no Petersburg job creation, nor has it led to lower cost of power for Petersburg now or in the future nor has it helped the region increase its energy security. Your strategy dictates that you have and will continue to buy more diesel generators. Contrary to your editorial, a new tactic might be better serving the needs of Petersburg by beginning to work with your neighbors instead of inciting them. I suggest that you try a fresh approach to constructive engagement and you will find cooperative friends as well as economic and energy benefits for Petersburg and its ratepayers.
Sincerely,
Harold Martin President, Kake Tribal Corporation Box 32034 Juneau, AK 99803-2034