John Sims, president of Enstar, presents to the House Energy Committee with Inna Johansen, director of gas supply at Enstar, about the challenges delivering gas to Anchorage during a cold snap while Arthur Miller, CEO of Chugach Electric, watches on remotely in Juneau.
The notion of importing gas to a state with tremendous proven reserves of the resource is anathema to many Alaskans, who can’t fathom why it doesn’t make more sense to develop the gas within the state’s borders. But the appetite of producers to explore for more gas in Cook Inlet — and take on the associated financial risk — is meager. And the massive natural gas deposits on the North Slope are mostly stranded, with transportation costs rendering their delivery uneconomic.
Energy cost increases, in the event gas has to be imported, will reverberate through every corner of Alaska’s economy. The costs of heat and power are priced into every commodity we purchase. So an increase in energy costs will result in retailers raising prices to cover their own costs. It will result in landlords raising rent prices to cover increased utility bills.
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