Story Created:
Jun 18, 2008 at 1:47 PM AKDT
Story Updated:
Jun 18, 2008 at 1:47 PM AKDT
Alaska Electric Light and Power has been granted authorization from a state agency to borrow up to $8-million to pay for avalanche repairs. Scott Willis, utility spokesman, said the Alaska Industrial Development and Export Authority loan will allow the company to pay back a a higher-cost bank line credit.
Willis said the utility was forced to borrow money to pay for the costs of fuel and contractors up front, in order to complete the much needed repairs on electrical lines. To counter the increased costs of supplying Juneau with energy, the utility boosted rates to pay for the higher fuel costs. Willis claimed that there has always been a lag between when fuel suppliers demand payments and when customers pay their bills.
The current situation was brought on by a massive avalanche that occurred on April 16, knocking out transmission lines between the Snettisham plant and Juneau.
