I’ve heard about a number of interesting ways that people are spending their energy rebates.
First, someone told me they plan on using their money for solar. That is, they are buying tickets to Hawaii this winter to soak up the sun. Another indicated they plan on upgrading the energy efficiency of a household appliance by buying a big screen television. Both great ideas, and probably a fair representation of how most people in Southcentral Alaska are using their additional $1,200.
In conversations I had with Chugach Electric Association, I was encouraged to hear that since the rebates were paid, they have more then doubled the number of members who pre-pay for the year. It is still fewer then 1,000, but it’s a start. They also have had a number of delinquent accounts brought current, which essentially meets the goal of the rebates as well.
Coupled with the Permanent Fund Dividends, which were $2,069 per Alaskan, a family of four received nearly $13,000 from the State of Alaska. Seems quite extravagant, given we don’t pay a state income or sales tax (the only state in the union to be so lucky), but I digress.
Given the recent decrease we have seen in federal dollars to Alaska, coupled with the Palin administration’s goal of decreasing the need for federal earmarks to Alaska, this distribution of cash is not likely to be taken well by the Congress when additional funding requests are brought forward. And of course, Alaskans likely will expect additional “energy rebates” in the future, especially if the large surpluses we are experiencing this year continue. Sadly, when the lean years return, and they will return, well-intentioned social programs may compete with future energy rebates.
Now don’t get me wrong, I recognize the cost of energy, especially diesel fuel and home heating fuel, is having a significant impact on Alaskans, especially rural Alaskans. Indeed, adequate and reliable supplies of energy and delivery are fundamental to economic and responsible resource development throughout the state. I just wish we could shift the Legislature’s focus from short-term payouts to long-term, sustainable solutions.
Well, we'll have our chance. At RDC's conference this November 19-20, Steve Haggenson of the Alaska Energy Authority (within the Palin administration) will release details of its long-term energy plan. And in the months following, RDC will be actively engaged in debating and ironing out the details of this plan as it is presented before the Legislature.
A foundation of any plan, in my opinion, rests with local control. The state needs to provide a climate that encourages local energy development, be it natural gas/ coalbed methane, geothermal, wind, hydro, coal, tidal, or others. The state must foster these opportunities and protect its interests. Too often, as local communities work to develop their energy resources, they have been squelched by the vocal minority opposition (for example, coalbed methane in the Mat-Su on state land).
My hope is that another core aspect of this plan will be efforts to encourage conservation, develop new technologies, and diversify Alaska’s energy portfolio. We also cannot ignore current programs, such as Power Cost Equalization, or similar programs that might be developed to say, help with home heating fuel. Unlike across the board payments, such programs target Alaskans most in need.
I look forward to working with Steve and the Legislature on this important piece of legislation next session. While I’m at it, I wanted to revisit an idea I proposed last year for paying Alaskans each a Royalty Check rather than a PFD (see http://akrdc.org/newsletters/2007/december/executivedirectormessage.html)
As we encourage more investment in this state, more resources will be discovered and developed, and subsequently, our Royalty Checks would grow. Last year, our PFDs would have been 20% greater using this model. This year, they would have been 33% bigger, or $2,763.
It’s worth repeating that as Alaskans responsibly develop more of their natural resources for the constitutionally mandated “maximum benefit of the people,” our Royalty Checks would grow. Our legislators would be encouraged to pass laws and put smart tax policy in place to increase responsible resource development. If we just took this one small step, the growth of our royalty checks would replace the need for energy rebates.
In the meantime, I’m putting my energy rebate into re-NU-ables. That is, I’m taking my son to the NU-OU football game at the end of this month!
Go “Cornhuskers!”
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