JUNEAU — Utilities in Alaska’s Railbelt are getting closer to importing natural gas as legislators debate energy bills intended to bridge a looming shortfall of Cook Inlet gas.that its contracts would not automatically be extended, utility managers have discussed importing natural gas as likely the best available alternative. Power and heating prices would be expected to increase substantially.
“As MEA reviews options with our utility partners, our goal is to develop a solution that provides near-term certainty and long-term flexibility as we continue towards our energy diversification goals,” she said. Discussions are ongoing between House and Senate members about passing a package of bills this year. Sutton Republican Rep. George Rauscher, co-chair of the House Energy Committee, said the goal behind an energy package is to prevent heat and power bills from rising exponentially, increase gas supply from Cook Inlet and help diversify sources of power for the Railbelt.
A new set of measures being considered by the Legislature would go further, allowing royalty reductions on new gas fields in Cook Inlet, and also for oil production. Rauscher said reducing royalties “aims to elevate Alaska’s competitiveness and attractiveness” for investment.
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