The April 16th avalanche that severed the City and Borough of Juneau (CBJ) from its main source of hydroelectric power has residents scampering for ways to save energy and make financial ends meet. Coming on the heels of the mortgage lending snafu, skyrocketing fuel and heating costs, rising food prices, lower quotas for commercial fishermen and a U.S. economy that is teetering on the edge of recession, it’s not really a good time for Juneau to have a power crisis.

The bad news is that the cost of diesel power generation and repair of Alaska Electric Light & Power’s (AEL&P) avalanche-damaged power line from Snettisham will ultimately be borne by consumers. The company has little choice–with no insurance and inadequate financial reserves to help them weather the crisis they have to lean on customers. Juneau residents may see an immediate five-fold increase in their electric rates.

The State of Alaska is currently weighing the pros and cons of financial assistance for AEL&P or consumers. There are some strong arguments against a “bailout,” but without some relief for consumers the economic impact on Juneau could be huge. Some businesses will decide to close their doors or not open for the summer. Some folks may be on the verge of bankruptcy. Others will decide to move where the living is easier and the rates more affordable. Though the power will be restored in a matter of months, the economic trickle-down could last for years.

The good news is that it is springtime, not the depths of winter. Warmer weather is on the horizon. According to the Empire, Juneau has already cut energy usage by 20 percent. And the crisis is temporary–by mid-summer the Snettisham hydroelectric power should be back on line. Nevertheless, Juneau needs to pay close attention to decisions that will help keep the local economy healthy.

1. When taxes on electrical power increase along with this sudden, dramatic increase power rates, it’s only fair that the City and Borough of Juneau temporarily reduce the tax rate on electricity to lighten the burden on consumers. This is no time for the borough to have a windfall at the expense of AEL&P customers. Wisely, CBJ has already offered a no-interest loan to AEL&P so they have more time to recover their costs.
   
2. The state regulatory authority needs to limit the rate increase for consumers. Coupled with a low interest loan, the company could spread recovery costs over several years, allowing AEL&P customers to bear a more reasonable burden. And in the long-term regulators should require the company to either purchase insurance or keep enough reserves to cushion the impact of emergencies such as this.
   
3. SEACC needs to lighten up on their rabid anti-development crusade against Kensington Mine and Goldbelt, Inc. The companies have complied with all existing regulations and need to be allowed to begin operation. Jobs and cash flow from these projects may be critical to Juneau’s economic health this year.
   
4. From an economic standpoint, build the Juneau access road. The benefit to Juneau begins with the influx of money and jobs during construction. After it is completed this single transportation link will have a profound impact on Juneau’s long-term economy as well as making Juneau’s health services and shopping more accessible to those of us in outlying areas.

We’re all watching. With minimal infrastructure in most of Southeast Alaska, this type of power crisis can happen to any community. As we sympathize with Juneau residents, we need to learn from their experience and prepare for the worst in our own towns.

Hang in there Juneau.