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Press Releases
11/16/06 HEA and AIDEA
sign Project Development Agreement for Healy Clean Coal
Plant
Homer Electric Association (HEA)
and Alaska Industrial Development and Export Authority (AIDEA)
have signed a Project Development Agreement that will lead
to the restart of the AIDEA-owned Healy Clean Coal Plant (HCCP).
HCCP is a 50-megawatt coal-fired power plant located in
Healy, Alaska near the Usibelli coal mine.
Prior to signing the
agreement, HEA conducted a thorough engineering review and
physical inspection of HCCP. The results of the
inspection were favorable and indicated the plant,
operated as a clean coal facility, can produce reliable,
competitively-priced power for the Railbelt area between
Fairbanks and Homer.
Under the terms of the Project
Development Agreement, HEA will assume responsibility for
managing the work required to restart the plant. The cost
incurred in getting the plant ready for a restart will be
covered by AIDEA.
Following completion of the
restart work, HEA will operate and maintain HCCP. Homer
Electric intends to purchase power from HCCP beginning in
2014 when HEA’s existing power supply contract with
Chugach Electric expires.
The agreement is the
culmination of several months of discussions between Homer
Electric and AIDEA. HEA General Manager Brad Janorschke
said the Healy Clean Coal Plant provides HEA an
alternative source of power that will help lessen the
impact of escalating natural gas prices.
According to Janorschke,
approximately 9% of the natural gas being used for power
generation in the Railbelt could be displaced by operating
HCCP.
“Homer Electric members are
well aware of the impact natural gas prices have had on
electric rates. By diversifying our power supply options
we can stabilize our rates and continue to provide our
members with reliable, affordable power,” said
Janorschke.
AIDEA Executive Director Ron
Miller said his agency is ready to begin the process of
restarting the Healy Clean Coal Plant.
“The Project Development
Agreement is a major accomplishment for both the State and
Homer Electric. The studies conducted by HEA confirm
AIDEA’s often-stated belief that HCCP is a viable, safe
power plant that can provide coal-fired energy to the
Railbelt at a competitive price. The restart of HCCP will
also benefit the Healy economy with new jobs at the plant
and a new market for Usibelli coal,” said Miller.
“We look forward to continuing
our work with Homer Electric,” he added.
HCCP is the result of a
nationwide competition sponsored by the U.S. Department of
Energy to test innovative coal-burning technology. The
technology involves a combustion system that burns coal in
stages to minimize the formation of nitrogen and sulfur
oxides and reduce air pollution. From a field of 48
applicants, Alaska was selected to receive one of 13
grants. Construction began in 1995 and was completed in
1997 at a cost of approximately $297 million.
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For additional information
regarding this press release please contact:
HEA: Joe Gallagher (907)
283-2324
AIDEA: Ron Miller/Becky Gay
(907)269-3000
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