Agency, utility debate plant's future

The Alaska Industrial Development and Export Authority is hoping to persuade Golden Valley Electric Association of Fairbanks to move forward with a limited retrofit of the $297 million Healy Clean Coal Project rather than a total replacement of new clean coal-burning technology in the plant. GVEA

The 50-megawatt coal-power plant was completed in 1998 but has been idle since late 1999 in a dispute between the state development authority and the Fairbanks utility on whether the new technology works.

AIDEA is anxious to get the issue resolved so the plant can get back into operation, according to Bob Poe, executive director of the authority.

"We're paying $6.5 million yearly on debt service and another $2.3 million to Golden Valley to keep the plant maintained," said money comes out of the authority's annual income and it's money that could be used to finance other development or to help fund the state budget."

The Healy Clean Coal Project was designed to demonstrate the effectiveness of new clean coal-burning and emissions-control technologies developed by TRW Inc., and Babcock and Wilcox, which is now a part of McDermott International.