Healy Clean Coal Plant (HCCP)

Current status

Recently, Golden Valley received a proposal from Homer Electric Association to transfer the contractual rights for the Healy Clean Coal Plant to the Fairbanks area utility.

In its letter, Homer Electric indicated its willingness to assign its contract rights to Golden Valley, giving GVEA the right to restart HCCP, operate it and receive all power from the plant. In return, Homer Electric is asking that GVEA offset potential costs Homer Electric may incur generating power using natural gas rather than coal.

Golden Valley is in agreement that this state resource should be running, providing stable low-cost fuel for Interior ratepayers and creating local long-term jobs. However, GVEA is unable to enter into negotiations with HEA while in litigation with AIDEA. GVEA and AIDEA continue to work on several issues, including:

• Joint operation of HCCP and GVEA's existing Healy Power Plant
• Separate operation
• Land lease to AIDEA
• Sale of HCCP to GVEA

As always, GVEA stands firm in protecting members’ best interests in the cooperative.

For more information, read Golden Valley's...

• Statement of Fact filed with the court in January 2006.
• Member letter July 18, 2008

Purpose

When operational, the plant will provide 50 megawatts of competitively-priced power to the Interior. HCCP will provide jobs, enhance the co-op's ability to produce power from a variety of fuels, which helps stabilize the cost of power, and provide for the future power generation needs of Interior Alaskans.

Participants

AIDEA constructed and owns HCCP. The project was partially funded by the U.S. Department of Energy's (DOE) Clean Coal Technology Program in their efforts to research and develop clean burning coal technology. Usibelli Coal Mine partnered in the project as the coal supplier and GVEA participated as the future operator and power purchaser.

History

In 1989, the U.S. Department of Energy's Clean Coal Technology Program selected Healy as a demonstration plant. The goal was to use experimental technology to burn waste coal. Healy began burning coal in 1998 and generated power intermittently through 1999 in its testing phase.

HCCP's experimental clean coal technology was intended to help the electric utility industry and the environment. The goal was to prove the equipment could produce cost-effective electrical power while reducing sulfur dioxide, nitrogen oxides and particulate matter emissions.

AIDEA currently owns the plant. Under the original agreement, Golden Valley had agreed to operate the plant and purchase its power once the plant was commercially viable. The plant has been shut down since January 2000, because safe, reliable and economic operation was not possible with the experimental technology.

Construction Funding

Department Of Energy	$120 million
Alaska Legislature	$25 million
AIDEA	$150 million
GVEA & Usibelli Coal Mine	$10 million plus in-kind contributions

Timeline

1989	DOE selected HCCP as a Clean Coal Technology Program demonstration plant
1990-1994	Plant design completed and environmental permits secured
1995-1997	HCCP is constructed
1999	Plant failed to pass a 90-day operating test designed to test reliability and economics
2000	Plant shut down
2003	Joint meetings between AIDEA and GVEA
2004	GVEA offers to purchase HCCP from AIDEA State rejects offer
2005	AIDEA files lawsuit alleging breach of contract
Jan 2006 to May 2008	GVEA & AIDEA in mediation.