Representatives from CIRI Alaska and Municipal Light & Power met with Assembly members today to discuss the corporation’s Fire Island wind farm and a potential contract with the local power utility.

“I think we’re getting good traction with several of the rail belt utilities looking to diversify their energy sources,” said Suzanne Gibson, CIRI’s Senior Director of Energy Development. “It has some significant benefits to the Municipality as well.”

The project, which would cost an estimated $163 million and is scheduled for construction in April 2011, would include 33 wind turbines and generate 144,000 megawatt hours of power annually, or enough to power 17,000 Anchorage homes.

The project’s financial plan includes a $25 million State grant as well as $44 million in stimulus funding for projects set for completion by 2012. While CIRI would own and operate the turbines, the transmission line transporting the power off the Island would be owned by the utilities contracting with the farm

As of today, however, the project still has not sold any power contracts.

“We are in serious negotiations with all of the rail belt utilities,” Gibson said. “We’re hopeful that we’ll reach an agreement in the October timeframe and look for Assembly approval in the November time frame.”

Signing power contracts by the end of 2010 would be essential for keeping the project on track for financial close and then construction by April of next year, Gibson said, and ML&P would need Assembly approval before finalizing any agreements.

“CIRI feels the time to build is now,” Gibson said. “We strongly feel the stars are aligned.”

By Kirsten Adams