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ALASKA STATE LEGISLATURE
REPRESENTATIVE LES GARA
February 14, 2003 Hon. Frank Murkowski State Capitol Juneau, AK 99801
Ron Miller, Executive Director AIDEA 813 W. Northern Lights Blvd. Anchorage, AK 99503
Dear Governor Murkowski and Mr. Miller:
I am writing to express my concern over roughly $27 million I believe belongs in the State’s General Fund, but that AIDEA has indicated it might give to a private power company without legislative approval. This state has a large budget deficit and $27 million is a very significant amount of money. Such an amount might be used wisely to help properly fund our schools, our foster care and public safety systems, and other important services Alaskans rely upon. It is my hope that you will take action to ensure this money is returned to the General Fund. As is stated by the Legislature’s counsel, "use of [this] grant money to generate additional revenue for the grant recipient would be an unauthorized use of public money." Cook Memo at p. 2 (2/7/03).
The money I refer to is interest the state has earned on a $46.8 million appropriation the State made in 1993 for the construction of the Southern Intertie. Since 1993 roughly $27 million in interest has been earned in the state account where the appropriation is being held. Interest earned on a state account belongs to the state and cannot be spent without a legislative appropriation. Yet AIDEA has agreed to give this money to a private power company, Chugach Electric Cooperative, in the event the Southern Intertie is ever built. The best estimates are that the project will cost upwards of $130-140 million or more, but produce a public benefit of only approximately $60 million. Surely, even if we wished to spend the money on a southcentral power project, we could come up with a cost-effective one.
I understand the Attorney General’s office has recently sided with AIDEA’s action giving this $27 million in interest to Chugach. I hope you’ll take another look at the issue, as it seems to contradict a "Formal" position the Attorney General’s Office has taken, in a formal written opinion, in 1985. A.G. Opinion, File No. 366-341-85. Feel free to call if I may be of any help.
Sincerely,
Rep. Les Gara
To gain additional insight into this proposed project review the following newspaper articles:
Supporting opinion published in the Anchorage Daily News January 21, 2003 Saving utility customers 60 cents a month in exchange for $70 million in public funds
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