HomeMy WebLinkAboutRes2013-008 Sponsored by: Hunt
�... CITY OF SEWARD, ALASKA
RESOLUTION 2013 -008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUPPORTING LEGISLATIVE EFFORTS TO CONSTRUCT A
NATURAL GAS PIPELINE FROM THE NORTH SLOPE TO SOUTH -
CENTRAL ALASKA
WHEREAS, the electricity produced by Chugach Electric and purchased by the Seward
Electric Utility is primarily produced from plants fueled by natural gas; and
WHEREAS, the gas used for power production comes exclusively from the Cook Inlet
basin; and
WHEREAS, Chugach, other power producers, and ENSTAR currently consume all of the
gas produced in Cook Inlet and are expected to face supply shortage; and
WHEREAS, recent exploration resulting in added gas production and the Cook Inlet Natural
Gas Storage facility have postponed the projected shortfall until 2015; and
WHEREAS, options for mitigating the projected shortfall are new hydro or other alternative
y., facilities producing sufficient volume, imported liquefied or compressed gas, or gas from the North
Slope; and
WHEREAS, Speaker Chenault and Representative Hawker have sponsored House Bill 4,
which supports the Alaska Gasline Development Corporation's (AGDC) pipeline project; and
WHEREAS, the bill provides the necessary structure, changes to existing statute, and
direction to move forward a natural gas pipeline for instate use whether as a stand -alone project or
in conjunction with the producers and Trans -Canada in a larger project; and
WHEREAS, of all the options presented to date, the instate gas supply from the North Slope
has the best potential for the earliest positive impact on the cost of electric power to Seward residents
and businesses in the near term, and the possibility of gas delivery for local use in the longer term;
and
WHEREAS, the bill, as introduced, includes the necessary provisions and solutions to
forward a successful Alaska natural gas pipeline project that best benefits Seward and all the Railbelt
utilities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
�•• OF SEWARD, ALASKA that:
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -008
...1
Section 1. The City Council of the City of Seward supports House Bill 4 as introduced and
Legislative efforts to fund AGDC as they move forward in developing a project to construct a natural
gas pipeline from the North Slope to South - Central Alaska.
Section 2. That a copy of this Resolution be sent to Speaker Mike Chenault, Senator Cathy
Giesel, and Representative Mike Hawker.
Section 3. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28 day of
January 2013.
THE CITY OF SEWARD, ALASKA
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David Seawa ayor ,
AYES: Bardarson, Terry, Casagranda, Keil, Valdatta, Shafer, Mayor Seaward
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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(City Seal) �mQo. 0V ` Et�� ' ®
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Council Agenda Statement
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Meeting Date: January 28, 2013 t
Through: City Manager Jim Hunt
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From: Community Development Director Ron Long
Agenda Item: Supporting Legislative Efforts to Construct a Natural Gas Pipeline from the
North Slope to South - central Alaska
BACKGROUND & JUSTIFICATION:
Administration respectfully requests Council support for this resolution as part of the City's effort to
maintain affordable energy costs for local residents and business through power sales by the Electric
Utility in the near term and potential availability of natural gas to Seward in the longer term.
The City supported various measures designed to fund and maintain critical infrastructure and cost
control measures for the delivery of electricity along the rail belt and to Seward, including
transmission lines and the City's participation in Alaska Energy Authority measures and in The
Alaska Railbelt Cooperative Transmission and Electric Company (ARCTEC).
Speaker Chenault and Representative Hawker have introduced House Bill 4 to provide the necessary
structure, changes to existing statue, and direction to move forward a natural gas pipeline. South -
central's present and projected future consumption of natural gas used for electric generation and for
heating exceeds known natural gas reserves in the Cook Inlet basin and it is imperative that sufficient
quantities of gas remain available. Exploration in the basin is not forecasted to yield sufficient gas to
avoid a shortfall, now projected for 2015, and the only near term sources for replacement gas are via
import. Utility rates would skyrocket under this scenario.
Seward's primary interest in this project is to ensure Chugach Electric and other ARCTEC members
have sufficient contract gas to provide affordable power into the future. Once the power generation
picture for south - central is stabilized, we would want to pursue pipeline delivery of burner tip gas to
Seward.
INTENT: Support Legislative Efforts to Construct a Natural Gas Pipeline from the
North Slope to South - central Alaska
CONSISTENCY CHECKLIST: Yes No N/A
1 Comprehensive Plan (document source here): Section 3.1, Economic
Development and 3.9 Quality of Life.
Strategic Plan (document source here): Page 2, city mission. Page 3
2. vision. Page 5, economic base. Page 7, Reduce Energy Costs, and x
throughout
3. Other (list): x
FISCAL NOTE: This is a resolution of support that has no fiscal impact.
Approved by Finance Department: j - ..Q�
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: Council approve Resolution 2013- CC) supporting Legislative Efforts
to Construct a Natural Gas Pipeline from the North Slope to South - central Alaska.