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Kyle Hopkins

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Sean Cockerham writes about Alaska state politics. He spent three years based in Juneau for the Daily News before joining the Tacoma News-Tribune two years ago to write about Washington state politics. He went to Iraq twice for the News Tribune, and previously wrote about Alaska government and politics for the Fairbanks Daily News-Miner. Now he's back in Anchorage. E-mail Sean at scockerham@adn.com

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Erika Bolstad covers Alaska issues, including the congressional delegation, from Washington, D.C., for McClatchy Newspapers. Before joining the bureau this summer, she spent seven years as a reporter at the Miami Herald, where she covered politics, government and the state legislature. E-mail Erika at ebolstad@adn.com.

Palin energy plan: Grants to utilities and energy debit cards.

Posted by Alaska_Politics

Posted: May 15, 2008 - 1:08 pm

Here's the press release from the governor's office describing her energy-assistance plan. Download more details of how the proposal would work here.

Governor Unveils Plan to Return Surplus to Resource Owners

Conservation and long-term solutions remain key focus

May 15, 2008, Anchorage, Alaska – Governor Sarah Palin today unveiled a short-term energy plan to address the skyrocketing costs of energy in Alaska. The package includes two parts – returning surplus funds through a grant to all electric utilities to reduce ratepayer bills and an Energy Debit Card for the next 12 months.

“Alaskans are feeling the pinch of high energy costs,” Governor Palin said. “The state treasury is swelling, while family checkbooks are evaporating. The right thing to do is to return surplus monies to the resource owners through energy relief. Instead of going to Washington, D.C. for relief, Alaskans should be independent enough to take care of this energy problem ourselves.”

Since coming into office, the Palin Administration has been focused on long-term solutions to Alaska’s energy crunch. In some of Alaska’s communities, consumers are faced with the nation’s highest energy costs. In 2007, a comprehensive energy supply inventory was initiated to identify alternatives to high-cost energy supplies.

Earlier this spring, Steve Haagenson was appointed as the State’s Energy Coordinator. In his capacity as the Executive Director of the Alaska Energy Authority, he is developing a statewide plan to reduce costs, promote conservation and secure long-term supply solutions for each part of the state. Results of that work are expected by year-end 2008.

“For instance, in Bush Alaska, the best solutions to high diesel prices are to use less and find alternatives,” Governor Palin said. “We cannot lose sight of the need for these long-term fixes, but as crude oil prices continue to set daily records, Alaska’s families, communities and businesses cannot afford to wait.”

Returning surplus funds through grants to electric utilities will result in a 60 percent reduction for all ratepayers. The benefit will flow to homeowners, renters, schools, governments and businesses. A review by the Department of Law has indicated that there should be no federal income tax consequence since the grants act to offset the revenue collected by the utilities themselves.

In addition, there will be conservation incentives for the utilities. For every 1 percent reduction in 2008 kilowatt hour sales from 2007 sales, the state will make a year-end contribution for capital energy projects to the utility.

The Energy Debit Card will go out to every qualifying Permanent Fund Dividend applicant. The benefit will be $100 per month per PFD recipient. The amount allocated for children’s benefits will accrue to the card of the sponsor on their PFD application. Money not used on the card one month will carry over to the next month. It is expected that the amount available to individuals through the card will be considered income by the IRS.

The temporary Energy Debit Card can be used for purchases from Alaska energy vendors, such as heating oil distributors, natural gas utilities, electric utilities, gas stations and other retail fueling stations.

The value of this plan is approximately $1.2 billion. The grant to electric utilities is expected to be $475 million, while the Energy Debit Card totals are forecast to be $729 million. The Governor has proposed this energy relief plan for one year.

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18 May 18, 2008 - 4:01pm | dntoya623

Energy Cards to Alaska Residents only

I think that this is a good band aid to put on the rising cost of gas. With the rapid increase of gas within the last week, I am going to assume cost will continue to rise which will make is hard to justify cancellation of the program in a year.

The biggest problem that I have with this proposal is the fact that is will only be extended to Alaska residents. I have grown up in Alaska and was a resident from 1989-2003. My husband was stationed at Fort Richardson in 2000 and became a resident shortly after. We were stationed at Fort Lewis, WA in March of 2003. Due to deployments to Iraq, purchasing our 1st home, welcoming a new baby, and work was unable to return to Alaska although many member of my immediate family resides here. Due to that, we lost our residency status.

We were relocated back here in November 2007 and have dealt with all of the unfortunates of Alaska just as the residents of Alaska including the increase of gas prices and am appalled that this proposition is directed to benefit only Alaska residents eligible for 2008 dividend. We will continue to enjoy the beauty and happiness of Alaska in addition to the common unfortunates that Alaskans deal with year after year. We have even looked for a home here to purchase and after calling Alaska home for more than half of my life, I guess the thought that I would be excluded from not only the Alaska Permanent Fund, but also from a temporary approved relief from the State is infuriating.

We pay for the gas here just like anyone else and should be entitled like anyone else residing in Alaska whether a resident or a member of the Armed Service or Air Force. There are lots of battalions of soldiers stationed here that make sacrifices for the United States which last I checked (although considered overseas) included the State of Alaska!!

I would strongly recommend that the State reconsider the eligibility of this relief should it be approved.

Sincerely,
Long time Alaskan who lost eligibility due to commitment to husband and his service to U.S. Army.

17 May 17, 2008 - 7:56pm | rnrpagel

Palin 100.oo plan

I so agree with what she wants to do.It will help so many people that can't pay their gas bill to keep their homes going. This will lighten the load to help others out that need it. With things going higher in prices so many are having hard times to make ends meet. We are a 2 income family and even my hubby and I are having hard times to pay the bills. Then we all have to worry about food on top of it all. So I agree with what she is doing to try and help everyone out. Go Palin.

May 17, 2008 - 10:13pm | AK_Lady

Gimme, gimme, gimme!

What about when it ends after 12 months? What will people do then????

May 18, 2008 - 6:06pm | just_a_note

Or maybe

folks will have had some time to "work out the details" of making their homes more energy efficient and find transportation that is more affordable. It is called breathing room, while some more long term solutions are in the works. Do you live such an insulated life that you don't know of families who are trying to keep afloat? Or perhaps you just don't give a damm about anyone except yourself! The money is there, it is there becasue oil is so high so why in the world would any caring government hoard the money and watch others suffer?

May 18, 2008 - 6:21pm | rfn

Confessed oil company shills

and their big oil employed spouses don't have to worry about these things. The trials and tribulations of mere mortals are of no consequence. Of course if they were clever they'd negotiate having part of their fees/salaries paid in "product" which they could then black-market when the shortages caused by price controls arrive.

Remember the Nixon, double-nickel era? Odd/Even day gas availability? 5-gallon limits?

~~rfn, DD

May 17, 2008 - 10:18pm | rfn

Good question.

Maybe they'll just return to the lower-48.

Where gas and food are cheaper?

16 May 17, 2008 - 7:31pm | blueslivin

Its about time we got some help!

After having my electricity turned off this last week because I am disabled and cannot afford to even eat. And being a diabetic my health has gone downhill due to the rising cost of food and fuel. This is very welcome. I have spent the winter not being able to leave my home and only going out if absolutley neccessary. There have been two times I had to postpone doctor appointments because I didn't have gas in my car to make it to the dr office and no money for bus fare. This is a welcome relief for me. For those of you who don't need it, don't take it, send it back or better yet, give it to some one who really needs it. Some one who is hurting and unable to eat because of the cost of gas to go to the grocery store for food they can't afford anyway.

May 17, 2008 - 10:18pm | AK_Lady

B. S.!

This is Alaska. No one goes hungry or without heat or without health care... unless they want to.

Hell, you can't even get drunk and pass out on the street without someone coming to rescue you.

Give us a break already.

May 18, 2008 - 8:05am | rfn

Thank you for having shared

with us your experience with a good Samaritan.

There is so little GOOD news these days!

I shall pray for you...

rfn, DD

May 18, 2008 - 9:14am | AK_Lady

You obviously misunderstood what I'm writing about. Haven't you seen those shiny community service vans picking drunks up off the sidewalks in the middle of winter?

May 18, 2008 - 10:02am | rfn

What a wonderful concept!

Do you find them comfortable as well as convenient?

I shall pray for their continuing success though I fear that, without some relief from high fuel prices, it may fall by the wayside. Perhaps some of the more affluent among us might allow the use of their debit cards to provide fuel for those vans? Which does raise the question (for the legislature to consider before rejecting help for Alaskans) as to whether the value of those cards might be transferable, as for charitable donations or perhaps to those who can't afford airplanes, snowmobiles, ATVS, RVs and Escalades?

~~rfn, DD

May 18, 2008 - 12:08pm | AK_Lady

People should be able to get drunk and pass out on the sidewalk. Leave them alone.

Don't even think about touching my Sarah Card. You know how much it costs to fill a Super Cub these days??

May 18, 2008 - 5:36pm | rfn

I have no issue with

your rights so long as they do not infringe upon those of any person.

As to the cost of filling a PA-18? About 1/3 of what it should cost. We need to outlaw squandering precious resources on non-essential rich kid toys! To get a "Sarah Card" (what a great idea; should have The Governor's picture on each one), one should be required to produce a letter from an employer attesting that the individual NEEDS a vehicle to get to and from work.

This sparks another idea! Perhaps Sarah Cards (I do love that term; it helps name recognition for the 2012 Presidental election) should have double-validity when used for public transport. Or maybe entitle the bearer to free passage on People Movers or whatever the buses are called in other communities.

~~rfn, DD

May 17, 2008 - 8:39pm | TheSdog

So how

do you get on the internet?

Have a computer at home? Internet access? Or did you use transportation to get to the library?

Must have some money somewhere and perhaps you could have saved it or the necessities.

May 17, 2008 - 8:49pm | juno

15 May 17, 2008 - 12:31pm | cat966

At least the Palin administration is doing more than just talkin

Now everyone has an idea what to do--At least this package treats everyone in the State the same. Anyone who doesn't like the system can stand at the gas pump and put the gas in someone elses car. The idea of using the permanent fund list is to keep from making a whole new program. It boost the economy and keeps the cost of operations down. Its only a one year program, its not ment to be a new system. Thanks to the forward thinking Palin Administration Team.

14 May 17, 2008 - 10:58am | cheapersmokes

Smart move!

Folks, I feel this is a very forward thinking action by the Governor! However, I feel that it should be limited to only one payment per household like has been suggested here already!

I also like the fact that it is not projected to become a permanent fund since the landscape can change month by month.

It is not possible to propose a program that will cover and make everyone happy but this is a tremendous start!

Maybe some funds can be set aside for residents upgrading to wind and solar energy since many advancements have been made in improving the efficiency and lowering the cost of those types of energy also.

Did you ever wonder just how long the Iraq war would last if we would just tell them we are not paying for oil as long as we have to have troops over there to protect them?

13 May 17, 2008 - 9:07am | buboy

Gov's energy plan......

After 35+years of the democrats and republicans being asleep at the wheel...NO energy plan, it is amazing to me that any elected person would say the Gov's energy stimulus plan during an election year is bad. The Saudi King should have told BUSH: Drill your own damn oil.

12 May 17, 2008 - 6:00am | yours_truly

Give one per household, NOT one per person

It takes the same amount to heat a house that 3 people live in as 6 people. You can trim the cost of this package immensely by giving one card per HOUSEHOLD only.

May 17, 2008 - 8:36am | AK_Lady

Of course!

Matter fact, with all those bodies, the family of 6 would pay less to heat their house!
It should be clear to everyone that this is nothing more than pandering by Palin. Vote for me! SWIPE!

The Sarah Card!

May 17, 2008 - 8:44am | juno

Sara bucks for Sara votes!

11 May 16, 2008 - 10:29am | rfn

Interesting take on all this

earlier today from a well-dressed, well coiffed woman who was enjoying her strawberry waffles with her friends. Her take was that the energy rebates are entirely to build popularity. Nobody needs that money. "Besides, if the governor" (she didn't say "governor"...and I won't repeat the vulgar words she used) "really wanted to do something about the cost of gasoline she'd just suspend the state tax on crude oil." "Then the price of oil, worldwide, would fall by at least thirty percent immediately."

One other lady at her table giggled a little and almost choked on her latte. The others, some with plain old coffee (except for one who apparently couldn't afford more than water), sat there in stunned silence. When they didn't join in her glee she stormed out, got in her Escalade and spun her tires all the way out of the parking lot, nearly hitting an elderly man on a bicycle.

Some "lady", eh?

May 16, 2008 - 10:35am | AK_Lady

Ooooo

Tell us another story, Uncle rfn!

Ha!

May 16, 2008 - 10:37am | rfn

"Uncle",

in that context, is a denigrating racist term deserving of being flagged.

May 16, 2008 - 10:44am | AK_Lady

Ha!

Flag away, Uncle!

May 16, 2008 - 5:19pm | rfn

When

we each do our part of keep folks indoors and blogging rather than spinning their wheels, wasting energy, the world is a better place. I have to be on duty anyway, so not likely I'd be driving wastefully about.

Update:

Just found DMV won't accept a complaint about a dangerous driver by phone, even when the license plate number is provided. Will have to stop by there later today. Heck, by then that reckless fool might have sobered up!

Further update:

Troopers DO accept complaints and say they'll have closer attention paid when the vehicle is seen. No challenge; just observe closely!

10 May 16, 2008 - 9:17am | sduchatellier

What about the rest of us?!?!

This plan would only give aid to people who qualified for the PFD in 2008. What about everyone else? My family and I have been here since June 2007 and still don't qualify for the PFD, though we changed residency and built a home here for our family. We are struggling with the high cost of fuel just like everyone else. What help are we going to get? I know we are not the only family in this position, as you have to be a resident for the whole year prior to the PFD. And what about our military families here that don't qualify for the PFD, yet live on the economy? What aid are they going to get out of this proposed plan? They should find a way to help everyone that lives in AK not just those that qualify for the PFD.

May 17, 2008 - 7:29pm | Nailem

The rest of us?

You will be able to buy one of the cards at a fraction of the cost right at the gas pump, no doubt.

May 16, 2008 - 12:55pm | Emperor

You still..

..receive the benefit of the grants given to utilities to lower costs.

May 16, 2008 - 10:21am | TheSdog

No soup

for you!

9 May 16, 2008 - 9:01am | lickmylovepump

In Your Face

This is a great "in your face" reaction to the greedy oil companies who profit at the expense of the masses. Don't get me wrong, I am all for profits, and the American business institution. As a small business owner who also profits from the money that our oil companies are making, and to avoid being hypocritical, profits are great! However there can be too much of a good thing when it starts going in one direction. The public is suffering on the whole from increaseed fuel prices. Alaska's unforgiving climate is not condusive to biking or using two-wheel drive, cracker box economy cars especially if you have a family to support and transport. The bus system pretty much leaves little to be desired at this point which is yet another MOA downfall among many. Until the muni can come up with a more energy efficient way of doing business and providing alternate transportation for its residence, I feel that this is a small expense for the State to pay for assistance to its residents. We can only hope that one day the Muni will step up to the plate and reach into the deep pockets of the purhasing power for MOA and spread some of the wealth they have obtained from taking bribes amongst Anchorage local residents. Oops, did I say that out loud?

8 May 16, 2008 - 7:53am | skaneshiro

knee jerk reaction

I don't like government handouts, but I can't think of any other way to get relief to people more immediately than something like this plan.
I would like to see 0 interest state loans for energy/conservation projects and purchasing fuel efficient vehicles.
With a zero interest loan, often the monthly payment is only slightly higher than what you would have been paying in higher fuel bills, and those savings would continue long beyond one year.

7 May 16, 2008 - 12:14am | Man_Dinga

wrong approach

1.2 billion would go a REALLY long way when it comes to clean energy R&D in Alaska. Did you know that one GE wind turbine that costs just 1.2 million can power 500 homes? Think of the jobs that would create too! Shoot, I've been to "towns" in Alaska that doesn't even HAVE 500 homes. Using the PFD system is not a good idea! There's many service men and women up here not qualifing for the PFD yet have lived here 6-8 years. They pay the same gas price as the rest of us. They should receive the same benefits resulting in spending their paycheck in AK. When will our elected officials quit thinking about short term-hook up the big companies-solutions and look at what life might be like 5-10-15-20 years from now? How about we strive to be the first state in the union on 100% clean energy? How hard would that really be? Not too hard! Sure it'll cost a lot... maybe around 1.2 billion.

6 May 15, 2008 - 8:51pm | darwin

True Leadership

This is an outstanding example of true leadership by someone who is attempting to help the citizens of Alaska. The loudmouth below who likes to hear himself/herself talk just can't accept that a political leader is doing something good for the people. It's about time someone is helping citizens instead of illegal immigrants. Of course I'm sure there are those who would rather freeze ice cubes and send them off for the polar bears. Good job Sarah!!!

May 15, 2008 - 9:19pm | AK_Lady

Gimme, gimme, gimme!

Free money from the guvment!

May 15, 2008 - 9:25pm | rfn

Really,

it's OK to opt-out.

May 16, 2008 - 10:11am | AK_Lady

Really,

it's OK to log-off.

May 18, 2008 - 8:59pm | haut_monde_ak

They don't because there is 3 of them using the same log-in...

I thought, and still suspect, multiple personalities but apparently there are 3 different people using the same name. One supposedly plans to become a politician. HA!

That is why one of them is replying with rfn, DD because that one or personality received a religous degree over the internet (Lord of the Blogs, perhaps?).

BTW, they think that I am you, Juno, or Syrin. No offense, but I haven't a clue who you are and I'm sure you as well. I don't have time to obsess about who people are, especially since the likes of 'rfn' don't identify themselves (or their personalities) either. My time is much too valuable.

I am female, so we do have that in common ;)

May 19, 2008 - 11:46am | rfn

There ARE.

The use of "there is 3 of them" strengthens the suspicion that you are a public school teacher.

May God save the children!

May 18, 2008 - 10:02pm | AK_Lady

haut_monde_ak

How many state employees does it take to do rfn's job?

5 May 15, 2008 - 6:23pm | _Syrin

one year?

She proposed this energy relief plan for one year. Why not 2,4 or 6 years?

May 15, 2008 - 7:07pm | juno

Why not?

Because next year she gets another pandering photo op for the same thing.
Kids. Ya gotta love 'em!

May 15, 2008 - 6:37pm | rfn

Because next year or the year after

a miracle might occur and fuel prices will fall dramatically.

Or maybe folks will stop feeding those airplanes, SUVs, ATVs, RVs and snowmachines so there'll be a gigantic energy surplus!

No point in setting up a long-term program when fuel usage might decline to almost nothing, yielding little revenue to fund such a program. Or, in that same period of time, pigs might fly.

Or maybe we could just outlaw those expensive elitist toys? Perhaps not outlaw them...just make it illegal to buy fuel for them unless they're essential to subsistence living?

May 15, 2008 - 6:44pm | AK_Lady

10 YEARS!

Alaskans want 10 years of energy relief!!!

Now we know what those "New Energy for Alaska" yard signs meant.

May 15, 2008 - 8:06pm | _Syrin

yard signs...funny

Still wondering about "Take a Stand" oh yeah, for the destructive ways of government to tax and spend. Got it...

4 May 15, 2008 - 4:27pm | juno

Sara bucks for Sara votes.

Palin Fiscal conservative? She spouts off "personal responsibility" in every speech. Does she know what that means? Pure pandering.

May 15, 2008 - 4:45pm | schwebb7

More important pork

Instead, the government should spend it on pork projects like batting cages and "community centers"

May 15, 2008 - 4:35pm | rfn

Another voice

cries out proclaiming she won't accept a handout!

The altruism here today simply overwhelms!

May 15, 2008 - 4:48pm | juno

Palin/Parnell - New energy for Alaska?

It takes brains to figure out a solid energy plan. Throwing money at the problem is the sign of the times with this brainless administration.
Palin/Parnell honest? No.
Palin/Parnell ethical? No.
Palin/Parnell transparent? You bet!
It's election year and Palin/Parnell are buying votes.

May 15, 2008 - 5:03pm | rfn

Of course a really

responsible person will refuse to accept any such payout.

Or maybe donate it to a candidate in the next election.

Oh....I forgot....use will be restricted to paying for energy....no frivolous spending.

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Palin energy plan: Grants to utilities and energy debit cards.