Icicle energizes its 'calculated risk' at Adak

Regular visitors know Deckboss likes to keep track of happenings out on Adak, the remote Aleutian island with a rather tumultuous history as a commercial fishing port.

As previously reported, a subsidiary of Seattle-based Icicle Seafoods Inc. took over the Adak processing plant in the spring.

Now here's a little news: The Regulatory Commission of Alaska recently approved a special contract between Icicle and the local power company, TDX Adak Generating.

Under the contract, TDX will supply "interruptible" power to Icicle, with existing residential and commercial customers having priority.

Power supply had been a problem for previous operators of the Adak plant.

While commissioners said they initially were concerned about the potential for "rate subsidization" of Icicle, the RCA ultimately held that the special contract will be good for all local power customers.

Here is the agency's eight-page order. It has a few details about Icicle's work to refurbish the plant, which concentrates on Pacific cod.

Also, here is an Icicle letter from late August that discusses the company's "calculated risk" at Adak.

Icicle powers ahead at Adak

We certainly have talked a lot on Deckboss about the troubles with the seafood processing plant on Adak Island.

We've also taken note of Adak's escalating electricity costs.

In April came word that a big Seattle processor, Icicle Seafoods Inc., would be taking over at Adak. This holds the promise of stability not only for the plant but also the island's thin economy.

It appears a priority for Icicle is securing reliable power, something that bedeviled the plant's former operators.

Icicle subsidiary Western Star Seafoods is installing two diesel generators at Adak that will burn ultra low-sulfur diesel, according to this public notice.

Further, a special contract between Icicle and the local power company, TDX Adak Generating, is pending before the Regulatory Commission of Alaska. Much more on that here.

The contract could presage possible relief for all ratepayers on Adak, as this discussion between the RCA staff and TDX suggests.

So, more power to Icicle and Adak, I guess.

By the way, Deckboss called the Icicle brass in Seattle to ask what the official name of the rejuvenated Adak plant will be. I didn't get a call back, so we'll just call it that Adak plant.

Adak electric consumers, prepare for a shock

Goodness knows Deckboss has posted plenty of gnarly news out of Adak Island over the past couple of years.

Now here's more: The local electric utility, TDX Adak Generating, is asking state regulators to approve a 136 percent rate increase for all residential and commercial customers.

Here's the letter to the Regulatory Commission of Alaska spelling out the reasons for the steep rate hike.

The power stays on

You might recall my post on the plight of Cook Inlet Aquaculture Association, which was facing a threat from the local electric utility to switch off power to the remote Tutka Bay salmon hatchery.

Well, the Regulatory Commission of Alaska recently came down with a ruling on the matter, and Deckboss suspects the Homer Electric Association is still rubbing its backside from the sting.

The best reading begins on page 17 of this order, which finds that the utility's rather heavy-handed way of dealing with the hatchery operator "was inappropriate, and not reflective of the spirit usually found in electric cooperatives."

In short, Cook Inlet Aquaculture is a longstanding customer and Homer Electric must continue supplying power, the RCA ruled.

But the RCA added: "The issue of HEA's cost to serve CIAA is unlikely to go away," and the hatchery operator someday could face higher rates.

Cook Inlet Aquaculture's power struggle

We have a heck of a battle going on between Cook Inlet Aquaculture Association and its power provider, Homer Electric Association.

It seems the aquaculture association is in jeopardy of having the power shut off to its remote Tutka Bay salmon hatchery.

The problem is that the buried power line that runs under Tutka Bay Lagoon to the hatchery is in poor condition and "constitutes a continuing hazard to the safety of the public," HEA says.

The aquaculture association's position is, OK, so fix it.

HEA is saying fine, but you hatchery guys have to pay to either lay a new submarine line or string an overhead line. The cost: $200,000 to $464,000.

The aquaculture people are saying no way can we afford that, but we desperately need power to keep our baby fish alive.

Naturally, a bunch of lawyers are now involved, and the matter is pending before the Regulatory Commission of Alaska.

Gary Fandrei, executive director of the aquaculture association, lays out his organization's position in this testimony filed with the RCA on Dec. 18.

As I understand it, the power utility feels it's not obligated to make such an expensive outlay for a single customer, and that the hatchery should be able to go with a less expensive option such as on-site generators.

To find HEA's position as well as that of the Alaska Department of Fish and Game and others, click here and look under "Documents."