Southcentral Power Project under utility control
February 7, 2013
By Alaska Business Monthly:
After 22 months of construction, the new Southcentral Power Project is now under utility control. As of 11:59 p.m. on Jan. 31, Chugach Electric Association accepted “care, custody and control” from SNC-Lavalin Constructors, the contractor hired to build the new power plant for two Anchorage-area utilities. “I’m very proud of the work by Chugach staff and managers to bring this project to fruition on behalf of the two utilities and the thousands of consumers they serve,” said Janet Reiser, chair of the Chugach Board of Directors.
The $369 million project became operational well ahead of its scheduled June transfer date. Groundbreaking occurred in March 2011. At the height of construction more than 400 workers were on-site.
SPP is a joint project of Chugach and Municipal Light & Power. Chugach owns 70 percent of the plant and ML&P 30 percent. Those percentages set each utility’s proportionate share for the fuel, expenses and output of the plant.
Under the terms of an agreement between the two utilities, Chugach will operate and dispatch the power from SPP on behalf of the joint owners. Although the utilities have been taking power from the project over the past few months during its testing and commissioning, they have now gained the ability to schedule when and how the plant will be used to ensure maximum economy, efficiency and benefit to customers.