The Alaska Industrial Development and Export Authority announced its intent to purchase Fairbanks Natural Gas for $52.5 million Jan. 28 along with its sister companies under Pentex Alaska Natural Gas Co.
Gov. Bill Walker said in a release from AIDEA that it is important to focus on the immediate goal of lowering energy costs in the Interior. “AIDEA’s initiative to help streamline gas distribution systems in the Interior is a positive development,” Walker said.
Some legislators aren’t so sure. Rep. Mike Hawker, R-Anchorage, said he is concerned about the “tone” the state is setting by intervening in private business. “If I was doing this in my business it would be called insider trading,” Hawker said.
House Speaker Mike Chenault, R-Nikiski, also said in a Jan. 30 press conference that he worries state involvement might push the final cost higher. Similar comments were heard from the Senate. AIDEA’s preliminary deal is challenged on several fronts, Sen. Peter Micciche, R-Soldotna, said Feb. 2. “I think it would’ve been healthy to brief the Legislature prior to announcement. The state simply doesn’t have the money to buy things without adequate due diligence,” Micciche said. “The LNG-to-Fairbanks business that’s operating today is not in peril and operates at capacity.”
That sale is pending review of the Regulatory Commission of Alaska and Attorney General Craig Richards. A statement from Hilcorp Jan. 29 said the news of AIDEA’s pending deal with Pentex was unexpected, but that Hilcorp and Harvest look forward to collaborating with AIDEA and the state to get cheaper and cleaner energy to the Interior.
Fairbanks Democrat Rep. David Guttenberg lauded the proposed purchase of the gas utility. “I think this is a very good idea. I think we’re working on better alignment” between the utilities, Guttenberg said in an interview. Guttenberg has stressed that lowering the cost of energy in the region would benefit all of Alaska through the disposable income that would be freed.
Former Fairbanks senator and AIDEA board member Gary Wilken said there are reservations about the proposal because some might not be fully apprised of what the authority is trying to do. It is a continuation of the work AIDEA was tasked with two years ago, he said.
image credit J. Emilio Flores, Corbis
