Gov. Sarah Palin will soon introduce a bill that would launch the process of creating a state corporation to oversee power generation in Alaska’s most populated region, according to the Associated Press.
That new corporation would serve the so-called Railbelt, the area from Kenai to Fairbanks served by the Alaska Railroad, which is now served by six separate utilities.
The AP reported that Palin’s legislation is expected to follow steps suggested in an Alaska Energy Authority study released last year, which suggested that a more efficient management model would help as the time nears when replacement will be required for many of the region’s current generation facilities.
“The region is facing very significant future capital investments over the next 30 years, ranging from $2.5 billion to $8.1 billion depending upon the future resource portfolio that the region selects,” that report said.
“The ability of a regional entity to issue tax-exempt debt would also have significant benefits,” it concluded.