Energy Law

FAIRBANKS ? The Golden Valley Electric Association says a wind farm near Healy could prevent increases in customer rates because it would likely produce cheaper power than wholesale prices the utility pays.

The proposed $93 million Eva Creek wind farm would be the largest in the state and could produce power for a full cent less than Golden Valley?s current wholesale price, which is about 10.6 cents per kilowatt-hour.

California is headed for another showdown over greenhouse gases.

A citizen's ballot initiative approved Tuesday could suspend AB32, the state's landmark 2006 law mandating a 25 percent reduction in industrial greenhouse gases by 2020.

Backed by manufacturers and Texas oil companies Valero Energy Inc. and Tesoro Corp., the ballot initiative would halt enforcement of the law until California unemployment, now at over 12 percent, sinks to 5.5 percent for at least a year. The "California Jobs Initiative," as it is called, is necessary to protect Californians from financial hardship at a time when they can ill afford it, its backers say.

Gov. Chet Culver told the Midwest Governors Association in Washington, D.C. today the Midwest is well positioned to lead job creation and retention in a renewable energy economy.

?We have a great deal to be proud of: a growing biofuels industry; huge energy efficiency potential; significant underground storage potential for carbon capture from factories and power plants, and massive wind power potential,? Culver said in prepared remarks.

?Add to all of that our strong university system, our community colleges offering technical training and our internationally known work ethic, and you can see why there is reason to be optimistic about what we can do in renewable energy,? Culver added.

The Democratic governor noted that Iowa leads the nation in biofuels output, adding nearly $12 billion to Iowa?s gross domestic product; generating $2.8 billion in household income; supporting nearly 83,000 new jobs and generating $576 million in state tax revenue.