The Fire Island wind energy project has taken a step forward. Anchorage-based Chugach Electric Association’s board has approved a set of terms and conditions for the project to supply the electric utility with power from the wind farm. The board took the action at a special meeting last week.
Under the terms, Chugach will purchase power from Fire Island Wind, a subsidiary of Cook Inlet Region Inc.
The proposal calls for Chugach to take up to 17.6 megawatts of power at a flat net price of $97 per megawatt-hour for 25 years, beginning Jan. 1, 2013. Fire Island Wind estimates of the energy output of the project puts production at approximately 48,500 megawatt-hours per year.
Chugach spokesman Phil Steyer says Chugach’s board meets again later Wednesday for a final vote on approval of the contract.
The deal is the conclusion of negotiations between Chugach and CIRI which began in 2010. Steyer says a power purchase agreement needs to be approved by both organizations and by the Regulatory Commission of Alaska.
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