Turning Tide

It appears the tides of Cook Inlet are reversing, which may show-up as an economic advantage for many Alaskans. See, for years, those of us who have lived in south-central Alaska and rely on electricity from CEA, we have been subsidizing the high cost of electricity for those that live in Fairbanks and off-the-grid in between. Since Cook Inlet – until recently when outsiders invaded tranquility – had provided affordable natural gas, it was used to generate electricity on the cheap and sent north, at a discount. But when natural gas prices started to indicate that the supply and demand theory still works - by outsiders from Michigan strangling the supply economics - the contracts in effect for cheap electricity sent north remained in full force under authority of the Regulatory Commission of Alaska, so coop members of CEA paid the difference. See, CEA was not allowed to charge a rate that even covered the cost of fuel to turn the turbines that then created the power. CEA was stuck on outdated contracts, but the reasoning behind the regulators boycotting a realistic fuel cost was based on the “solution to pollution is dilution” principle, basically the many CEA customers that saw a higher wage could and should absorb some of the higher energy costs found in the interior, to help out our neighbor. But it didn't work so well, as the CEO of Golden Valley Electric Association in Fairbanks, the utility that purchased our cheap electricity then sold it back at a profit, he took advantage of this freebie and became a self-made $millionaire$, until he was fired. Anyway, the subsidized value is explained in that complicated electrical bill, but don't try to discipher it out, as it will blow your mind away, the intent with the confusion. Anyway, we may be able to re-coop some of that subsidized electricity, as there may come a time soon wherein it is the other way around, and Fairbanks residents foot the bill to subsidize our energy needs. Now this was not intended or designed as a get even plan, just the way the snow melts. See, the state is spending $millions$ in efforts to build a world-class LNG plant that will utilize “North Slope” natural gas that is considered “stranded”. So another “Alaska State Corporation” was started to deal another blow. Todays' Alaskan “I Can See Russia” Quiz: What is the benefit of a “state run corporation”? Nothing except transparency missing-in-action which allows very lucrative CEO salaries along with SOA retirement benefits – and they don't have to tell us how much they make. The entire cast of “State Corporations” have not a whole lot to be proud upon in the success category, but we must remember, just because a few crooks went to the slammer, it doesn't mean the culture of corruption was arrested. In fact matter of fact, maybe in the 49er crime does indeed pay off your kid's college loans....Wow, the attorneys for the botched Port of Anchorage project want to depose Bill Sheffield, who supposedly used the “GOD” label of association when in charge of the port's cost overruns – no it can't be in the $billions$? How many worker deaths? How about dispose, as didn't we try to get rid of Bill once upon a time before by “Impeachment”? Anyway, Sheffield's expensive attorneys – paid for by the Anchorage Municipality, which means our rates for everything will increase – they say Bill is too old to testify. Is this like taking the AARP 5^th? Bill is 86, Don Young is 81, so why do we give Don such a bad time, as we still have another 5-years before he catches up to Bill, in the category of forgetting things of impotence. But the payback I am talking about comes by virtue of Uncle Sam looking after the good of our nation. See, there exists an “Export Limitation” ban on any and all natural gas that is pumped from the “North Slope” - exception being deliveries to Canada or Mexico. But the existing LNG project calls for an all out export, to whomever wants to pay “Cadillac” coverage, for a long term supply as the “Slope” finds a humongous supply of gas stranded away in safe-keeping. But with the “Export Limitation” in effect, even with a ridiculous price tag $65-billion pipeline built south from “Prudhoe Bay” to tidewater, that gas ain't going aboard a ship, as there is no passport allowing it to get away. See, Uncle Sam wanted that “stranded gas” as a future reserve. So in efforts to find a way around the “Public Law, gas will be exchanged, as Cook Inlet gas has not the same restrictions and already enjoys an “Export License”. So we build that pipeline – which would have cost 1/10^th had we built it when we were supposed too, within 5-years of oil in – and the gas travels 800 miles into the Cook Inlet “Gas Gathering System” to be used to heat our homes and light our LEDs, and then the surplus Cook Inlet gas is liquefied and sent aboard the U.S.S. Joe Hazelwood for delivery to North Korea - everybody is happy. But, even though Fairbanks is some 400-miles closer to the “stranded gas” reserve which should account for cheaper energy costs then what would be found further away in Anchorage, the interior must subsidize the higher costs of getting it to Cook Inlet – which means it is payback time. See, in Alaska we have what is called a “pricing parity”, as without it the residents would be disenfranchised as the rightful benefactors of the value of the developed resources – wherein equal benefit is paramount. This “Pricing Parity” has been in effect for a long time, and the reason when “Crude Oil” prices dive and the lower-48 sees gasoline discounts in the “buck” range, we see frozen displays, with no decreases allowed. It's complicated, for a reason. Anyway, with that in mind I am all for that $65-Billion price tag for that LNG project, and when Bill Sheffield is deposed and the legislature is once again afraid to harm Bill, he will then be given the “GOD” position over the LNG project, and cost overruns will ruin any chance of ever seeing a payback, as we will be subsidizing another abortion for a long, long time. Abortions? Let's start with the Alaska Railroad, the Kodiak Launch Facility, AIDEA, the Healy Clean Coal Plant all the way to blueberry farms that never produced a berry. And every damn “Alaska Corporation” is manned by an individual on the payback schedule, high salaries and nothing to prove except if you want to be rich in Alaska, sign up for the “Corrupt Bastard Club”. In the meantime, don't hold your breath that we will ever see a natural gas pipeline, as that has been the intent for 30-years by now – just a great political bottomless $$$ pit represented by a “No-Action” committee of, Bill Sheffield wannabes – a.k.a. GOD!