In January 2009, Alaska Industrial Development and Export Authority announced it would be selling Healy Clean Coal Plant (HCCP) to Golden Valley Electric Association (GVEA), of which 50% of the power will be purchased by HEA beginning 2014. However, the fact that HCCP is no longer considered a long-term power supply alternative and the fact that the state is following an Integrated Resources Plan for the Railbelt area convinced the board that the power supply study was not necessary at this juncture.

Debbie Debnam, Board President of HEA, said: “The long-term plan is now to go with some natural gas-fired generation and integrate renewable energy sources, such as small-scale hydro and wind projects.”

She further added: “We had been gathering information along the way, and there was a lot of stuff to weigh in making a decision. Decisions were based on economic things and timeliness of when transactions could occur and when things can be on line. We have a deadline for when our contract with Chugach Electric comes up. At some point in time, you have to review those things and you have to make decisions.”

AIDEA spokesperson Karsten Rodvik, said: “Homer Electric’s decision was unfortunate because a great deal of hard work went into the agreement. Our goal remains the same: to bring the Healy Clean Coal Project on line for the benefit of Railbelt electric consumers.”

The board meeting that was held in May 12 passed the motion 8-1, to transition away from the Healy Clean Coal Project. It also called for abandonment of a planned power supply study to decide what power supply options, including the Healy plant, would be the most advantageous for HEA. The company is now re-evaluating its rights and responsibilities under the various agreements regarding the Healy plant.