ML&P Talks Gas Shortages

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by Kirsten Adams
by Nick Swann

Story Created: Mar 8, 2011 at 6:19 PM AKDT

Story Updated: Mar 9, 2011 at 11:57 AM AKDT

After cautioning consumers to conserve energy this winter, an Anchorage utility company reveals it spent more than $8 million on outside gas purchases this year.

In a report to the Anchorage Assembly, Municipal Light and Power states it spent more than $8 million on natural gas this winter when supplies at the Beluga River Unit fell short.

The unit is the utility's principle source of natural gas, and General Manager Jim Posey said production decreased this winter because of planned maintenance at the site.

The shortages pushed the utility to make the additional purchases, but when no additional gas was available shortly after Christmas, Posey said the electrical plant was forced to burn oil.

While the Beluga River Unit is back to regular production, natural gas extraction is decreasing by between five and ten percent annually and could fall short by as soon as 2013.

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