MARK BEGICH: BRINGING NEW ENERGY TO ANCHORAGE AND ALASKA

Mayor Mark Begich Hopes to Save Customers and Utilities Money, Solve Strained Utility Infrastructure Problem. Fred Boness, an independent consultant for both sides who values the tie-up at around $500 million, says the strain on infrastructure has been a key driver behind their talks. "Both have aging facilities with increased demand," he says. "The idea of a merger is not new and novel. It's come up about three times in the past 20 years. But the board and management of both utilities are now on board, which hadn't happened before." There is also now a big rate differential between the two utilities, with ML&P customers enjoying much lower rates due to its one-third stake in the Beluga River gas field in northern Cook Inlet. [Alaska Utility Merger Talks Heat Up, Anchorage Daily News, 9/7/2007]

Mayor Mark Begich Works With Two Anchorage Utilities to Save Over $200 Million In Electric Rates Over Next Decade. Savings in average retail electric rates for the two utilities -- Chugach Electric Association and Municipal Light & Power -- could top $200 million over the coming decade under one merger option, says the study from Chicago-based Navigant Consulting Inc. Some would save ratepayers a great deal of money, while others would actually increase costs, Nichols said. Examples Nichols sites are:

• It would be better for consumers if ML&P bought Chugach, not the other way around. The reason is because the government-owned ML&P can borrow money more cheaply -- by issuing tax-exempt bonds -- than can Chugach. If ML&P bought Chugach, savings would be $168 million over the 12-year period from 2009-2020. If Chugach bought ML&P, utility costs would actually increase by $45 million.

• If a private company bought both Chugach and ML&P, costs would rise by $243 million. Again, the higher cost of financing is a major factor, Nichols said.

• If a separate government entity acquired both utilities, the savings would be $218 million.

• In another option attractive to Nichols, the two utilities could merge most staff and certain operations and invest together in a one new, large, gas-fired power plant -- instead of two smaller plants, as the utilities are now planning -- and save $183 million.

• Even if the utilities did nothing else but join forces on the single power plant, they could save big costs -- $86 million, according to the Navigant study. [Power Bills Could Drop If Utilities Join Forces, Anchorage Daily News, 11/7/2007]

Mark Begich Signs U.S. Mayors Climate Agreement, Anchorage First City To Sign On. Anchorage is the first city in Alaska to sign on to Nickels' U.S. Mayors Climate Agreement, which the Seattle mayor launched in 2005. To date, 850 mayors in all 50 states have pledged to reduce greenhouse gas emission by 7 percent compared to 1990 levels. While in Anchorage, Nickels was briefed on the impact global climate change is having on Alaska. [Anchorage and Seattle Mayors Agree to Expand Ties, MOA Press Release, 6/29/2006; United States Conference of Mayors]

Mark Begich Chairs Assembly That Approved Purchase Of Beluga Gas Field, Kept Electric Rates Low. In 1996, Mark Begich served as chairman of the Anchorage Assembly when the Assembly took a $125 million risk to approve the city’s electric company’s purchase of a third of the Beluga gas field from Shell Oil. Shell owed the Beluga gas field, which sits across Cook Inlet from Anchorage, in partnership with Arco and Chevron. Arco managed the field's operations. At the time, ML&P had grown increasingly concerned about its future energy supply. The Beluga field supplied the utility with more than three-quarters of its needed energy. The utility's contract with Beluga ran through 2005, after which Beluga could have cut supply or significantly jack up the rate it charged for gas, meaning higher rates for the utility's then 30,000 customers. The purchase was an effort to pre-empt that possibility. [ML&P Scopes Gas Deal, Anchorage Daily News, 4/11/1996]

• Assembly Chairman Mark Begich Advocated For City Purchase Of Shell's Share Of Gas Field Or Face Higher Rates After Gas Contracts Expire In Nine Years. ''We are right to get into the gas business,'' Assembly Chairman Mark Begich said. ''We are trying to provide for our own needs and save ratepayers millions of dollars.'' The city currently buys gas from the three companies that own the field. When the city owns a share this January, it will only have to honor the contracts of two companies. Without the deal, ML&P rates would go up in January by 6 percent, said Tom Stahr, ML&P general manager. He said the purchase will keep the rate increase between 2.5 and 4 percent. [City to Buy Shell’s Part of Gas Field, Anchorage Daily News, 10/23/1996]

• Thanks To The Beluga Gas Field Purchase, ML&P Offer The Lowest Rates On The Rail Belt. Municipal Light & Power customers have the lowest rates along the Rail belt because the utility owns part of Beluga. [Electric Utilities to Explore Possibility of Merger, Anchorage Daily News, 6/15/2007]

Mark Begich Pushed For Utility Oversight To Be Given To Independent Board. Mark Begich, while chairman of the Anchorage Assembly, sponsored an ordinance that would take oversight of the utility away from the mayor and the Assembly and give it to an independent board. [Mystrom Fires 22-Year ML&P General Manager, Anchorage Daily News, 6/17/1997]

Mayor Mark Begich Strives To Provide Lowest Utility Rates For Customers, Created Oversight Panel To Examine Merger Of Anchorage’s Two Utility Companies. Mayor Mark Begich created an oversight panel in 2007 to examine a possible merger between Anchorage’s two utility companies, city-owned Municipal Light and Power and Chugach Electric Association. Chugach and the city of Anchorage hired an independent consulting firm to study merger options, which will be analyzed by the joint oversight panel. “I think we can end up with something that benefits ratepayers and taxpayers,” Begich said. If the two join up, it could keep Chugach’s rates from soaring in the future if the Homer and Matanuska electric associations follow through on their plans to stop buying power from Chugach. [Anchorage Daily News, 11/7/2007]

Mayor Mark Begich Supports Development Of Fire Island Wind Farm. The proposal includes establishing a state agency, the Alaska Energy Authority, to control the money and build the transmission lines from the island to the Anchorage Bowl. Those lines would then be a publicly owned asset. $25 million in State funding would leverage from $100 million to $125 million in private money to build the wind farm -- about two dozen turbines generating about 50 megawatts a year. That's enough to offset the natural gas demands of about 18,000 Alaska homes, according to Jim Jager, spokesman for Cook Inlet Region Inc., the Native corporation that owns land on the island. CIRI and enXco, one of the largest renewable energy companies in North America, are partners in the project. If the project starts in 2008, turbines could be up and running by 2009 and no later than 2010, Jager said. It would be sold to electric utilities on the Railbelt energy grid and could be expanded in the future to serve 35,000 homes. Wind power could extend the life of Cook Inlet gas reserves, now expected to run out in eight years, giving the Railbelt more time to tap both more natural gas sources and cleaner, renewable energy sources. Mayor Mark Begich has publicly supported the project and lobbied for state funding. [Fire Island, Anchorage Daily News, 4/29/2008]

Mayor Mark Begich Makes The Most Out Of Garbage, Plans Methane Collection System To Provide Power. Mayor Mark Begich plans the building of a city methane collection system at its landfill so rotting trash can produce electricity to power 2,500 homes instead of emitting greenhouse gases. [Greener City Will Save Money Begich Says, Anchorage Daily News, 9/18/2006]

Mayor Mark Begich Asks USCM To Endorse Alaska’s Natural Gas Pipeline. Mayor Mark Begich will asked more than 300 of the nation's mayors to join him in supporting an Alaska natural gas pipeline as part of a national energy strategy aimed at reducing America's dependence on foreign energy sources. Mayor Begich's gas pipeline resolution asks the U.S. Conference of Mayors to endorse, pending completion of appropriate environmental review, a project to bring Alaska gas to market and that any such project must ensure full pipeline safety to protect the public and environment. "I am looking forward to bringing the important issue of an Alaska natural gas pipeline to the attention of the nation's mayors," Mayor Begich said. "All cities across this country are dealing with rising energy costs and the need to find a steady supply of inexpensive energy." [Mayor Begich Takes Gas Pipeline Resolution To Mayors’ Conference, US State News, 6/21/2007]

Association of Mayors Signs On To Mayor Mark Begich Proposed “Best Practices” Task Force To Reduce Emissions. The World Winter Cities Association for Mayors (WWCAM) also approved a proposal by Mayor Mark Begich to establish a task force to focus on "best practices" by northern cities when it comes to reducing global warming emissions and the impacts of climate change. The initiative will be based in Anchorage and led by Begich's office. "Cities across the northern world are at the cutting edge in reducing climate change through innovative operations," Begich said. "This Greenland conference was an eye-opener for all winter cities mayors, and we'll work hard to further their efforts." The task force will be staffed by Anchorage officials and solicit ideas from other northern cities which can then be broadly shared. Begich also proposed the international mayors sign a pledge similar to one advanced by the U.S. Conference of Mayors to reduce emissions and improve their city operations to minimize climate change impacts. The WWCAM met in Greenland and agreed to meet in Anchorage in 2009 to continue discussions on how to combat global warming. Begich is the North American vice chairman of the WWCAM, which is headquartered in Sapporo, Japan and chaired by Sapporo's mayor. Anchorage has hosted two international conferences of the WWCAM, in 1994 and 2004. [World Winter Cities Mayors To Meet In Anchorage, Anchorage Daily News, 1/25/2008]

Mayor Mark Begich Hosted Climate Change Conference In Anchorage For Leaders of 32 Cities. Mark Begich helped urged leaders from 32 U.S cities to be leaders in slowing global warming by taking steps in their communities. "We need to find the leadership in this country," said Mayor Rocky Anderson of Salt Lake City at a conference on climate change. "If it's not going to come from the top down. ... We need to push from the bottom up." Anchorage Mayor Mark Begich hosted the conference for leaders from 17 states. Mayors spent three days discussing how to reduce their cities' contributions to warming and how cities can adjust to changes scientists predict will spread to other states. [Mayors gather in Alaska to discuss their cities' response to global warming, The Associated Press, 9/18/2006]

Mayor Mark Begich Leads The Nation In City Energy Efficient Street Lighting Initiative. In a move expected to save millions, improve nighttime visibility and make it easier to see the stars, Mayor Mark Begich plans to phase out the city’s 16,500 orange streetlights and replace them with energy-efficient white lights. The city's light replacement plan, one of the most ambitious in the nation, requires a change-over investment of about $5 million, which would probably happen gradually as traditional lights burn out. Today each streetlight costs around $20 a month to run and maintain. That's close to $5 million a year. Newer style white street-light bulbs are more expensive to buy, but they pay for themselves with lower operating costs. Not only do they use less electricity, they last four to five times longer. The new lights use 30 to 50 percent less energy and reduce greenhouse gas emissions created from burning natural gas to generate the electricity. Current streetlights burn out every three to four years, but the new bulbs could last as long as 20 years. The total savings, including energy and maintenance, could be more than $1 million a year. The biggest savings comes from not sending out maintenance crews to replace bulbs so often. The new fixtures are also designed to focus light where it's needed instead of scattering light rays skyward. All those changes improve safety -- it's easier to see pedestrians walking at night. It's also a big aesthetic improvement -- cutting the amount of stray light reduces light pollution. [No More Orange Glow, Anchorage Daily News, 4/2/2008]

• Mayor Mark Begich Attracts Light Manufactures, Utility Executives And Planners To Anchorage Lighting Conference. In March of 2008, 80 national street-light manufacturers, utility company executives and lighting planners gathered at the Hotel Captain Cook to study Anchorage's plan lighting plan. Cities like Oakland, San Diego and Ann Arbor are all in different stages of light transitions and, like Anchorage, all struggle with the risks of emerging technology. Mayor Mark Begich told the experts the cost savings made the switch worth it. "We figure if it works in Anchorage, Alaska, it can work anywhere," he said. [High Tech Glow, Anchorage Daily News, 3/20/2008]

Mayor Mark Begich Demonstrates Commitment To Renewable Resources By Creating New Position. In 2005, Begich hired a renewable resources manager, Kevin Harun, to find ways to save energy, develop sustainable practices, improve and expand recycling in the city area and save taxpayer money. Harun coordinated "the cooking oil issue," Begich said. He's found sources and customers for recycled restaurant and household oils. Once filtered, the oil can be used for heat or processed into biodiesel to replace fossil fuels for vehicles. It's cheaper than gas. And, Begich said, it burns cleaner, spitting out fewer unwanted emissions. Harun helped Begich push for a wind farm on Fire Island, where backers say 30 turbines could produce as much as 100 megawatts of energy. And Harun is monitoring the costs of gas used by city vehicles, Begich said, to decide when it might be worth it to replace city cars with hybrid gas-electric vehicles. [Greener City Will Save Money Begich Says, Anchorage Daily News, 9/18/2006]

Mayor Mark Begich Pushed For Cost-Effective Citywide Recycling. Mayor Mark Begich pushed for Assembly approval of city recycling plan. The first of two proposals would launch curbside recycling for a portion of the city garbage utility's residential customers and start charging those customers based on how much trash they throw away. The second proposal would charge people more to dump garbage at the city landfill and transfer stations, using the extra money to pay for citywide recycling efforts such as two new places to drop off recyclables. Begich proposed raising the fee to unload a ton of garbage at the dump or transfer station by $8. That would pay for about $1.5 million in recycling projects including $350,000 for additional drop-off sites and about $250,000 for "public outreach and education," according to city estimates. The proposal would also raise the monthly rate for Solid Waste Services residential customers from $16.35 to $18 per month. Anchorage is the largest city in the country that doesn't have curbside recycling citywide. “The good news is that Anchorage is moving forward to expand recycling to create new job opportunities and save money by extending the life of the landfill,” said Mayor Mark Begich. [Assembly Picking Through Trash Rates, Anchorage Daily News, 5/7/2008; City Seeks Public Involvement on Recycling Issues, MOA Press Release, 6/5/2007]

• Mayor Mark Begich Rolls Out Recycling Plan For Trial Area, Emphasizes Convenience. Under Mayor Begich’s recycling plan, the city will use its own trash collection service in the north-central part of Anchorage, to demonstrate how curbside recycling should work. In that 20 percent of Anchorage, the city will phase in curbside service over a couple of years. For convenience, people living in houses­ and small apartment buildings will get a 96-gallon container that will take all recyclables except glass, all mixed together. For homes that don't get curbside collection right away, the city will set up two more regional recycling centers, one in Muldoon, the other in South Anchorage. The plan aims to get recycling into each school as well. Computers, electronic waste and construction debris would be diverted from the landfill, along with yard waste, which really eats up landfill space. [Recycling, Anchorage Daily News, 3/25/2008]

• Mayor Mark Begich’s Recycling Plan Cost-Effective, Moving Anchorage Closer To National Average. In the city's model, curbside recycling will have a financial payoff too. Trash rates will go down if your home can get by on just one 32-gallon trash can emptied weekly. Rates that reward recyclers for reducing their trash, called "Pay As You Throw," are critical to stimulate more recycling. All these changes will allow Anchorage to almost double its volume of recycling, from about 15 percent of all trash to maybe 30 percent or more -- much closer to the national average. [Recycling, Anchorage Daily News, 3/25/2008]

Mayor Mark Begich Answers Businesses’ Needs To Recycle Cardboard, Saves Money. Cardboard waste generated by downtown businesses will make money for a local recycling company and free up space in the Anchorage landfill, if the businesses buy into a two-month pilot program spearheaded by the municipality. The service is free, thanks to a collaboration of the city, Alaska Waste and Smurfit-Stone Recycling Co. that has also involved the Anchorage Parking Authority, a teen environmental group and the Anchorage Downtown Partnership. Mayor Mark Begich cut the ribbon on the project, which provides a 37-cubic-yard container for cardboard and another for newspapers in the parking lot at Third Avenue and A Street, near the Sunshine Mall. Businesses that want to recycle can save time by using the downtown bins instead of hauling material to the recycling center. They'll save money at the landfill, which charges $45 per ton. And taxpayers will save money if the landfill doesn't have to be expanded to accommodate more waste. [Cardboard Recyclers Think Inside the Box, Anchorage Daily News, 11/17/2006]

Mayor Mark Begich Works To Establish New Energy Standards For Anchorage Buildings. Mayor Mark Begich is working to establish new energy efficiency standards for buildings, including the new Dena'ina Civic and Convention Center and museum expansion. [Climate Change Impact on Northern Cities Focus of Greenland Conference, Anchorage Daily News, 1/14/2008]

Mayor Mark Begich Saves Power At City Hall, Saves Taxpayer Dollars. Mayor Mark Begich worked to make City Hall run as efficiently as possible. One step was by replacing light bulbs at City Hall with a more efficient model -- which will save $50,000 to $60,000 in power bills each year. Additionally, computers are put into sleep mode, saving more than $80,000 a year and reducing emissions by more than 1,200 tons, recycling bins are found on every floor and city vehicles were replaced by hybrid gas-electric vehicles. "These are very simple things we can do," he said from his cell phone in Seward, where he was touring with mayors from around the country who came to Anchorage for a weekend conference about global warming. [Greener City Will Save Money Begich Says, Anchorage Daily News, 9/18/2006]