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March 7, 2019 In this Issue: Governor’s budget shakes business confidence Uncertainties now cause projects to be delayed Legislators are not about to accept Dunleavy’s budget, and will write their own Infrastructure Skagway dock options eyed Transportation Truckers’ big economic clout Plan to delay ferry service cutoff Energy Southeast hydro: Low water GVEA drops Eco-Green deal Rural renewable energy program UA’s new power plant to fire up State gas project “shutdown”: Sending a signal? Talks underway with two of three…

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Feb. 14, 2019 In this Issue: Native corporations’ new stake in slope oilNew projects will pay $173 million/year in royalties at peak EconomyMat-Su showing job gains Health CareMedicaid covers 210,000 Alaskans Governor’s budget cuts hit across the state Business IntelligenceConstruction spending nudges up this year; oil, militaryCruise tourism will show sharp growthAnchorage looks at tax holiday for new housingBethel’s farm now serves outlying villages in Y-KAIDEA business loans show a dip, likely due to recessionMore small communities out of compliance…

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Southeast rare elements search Australia-based Northern Cobalt Ltd. will explore for rare elements in an area 35 miles southeast of Juneau, in Southeast Alaska. The company applied for permits with the U.S. Forest Service. The prospect, a potential vanadium bearing magnetite, is within the Tongass National Forest. Northern Cobalt plans three test holes in August, the deepest drilled to 1,400 feet. One attraction for the company is proximity to electric power from the Snettisham hydroelectric project, which is nearby. EPA:…

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Governor hits ADF&G budget Gov. Mike Dunleavy’s vetoes to the state’s FY 2020 operating budget have resulted in a $997,000 cut to the state commercial fisheries management division and another $280,000 reduction of funds for special area management, according to an analysis by United Fishermen of Alaska. A 50 percent reduction in travel is also ordered, including in the commercial fisheries group. Fish-tax sharing okay, for now The governor left intact the 50 percent sharing of state fish tax revenue…

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Eni takes keys at Oooguruk Caelus Natural Resources will be out of Alaska, at least as a production operator, effective July 31, when it turns over the keys for the company’s small Oooguruk field, which is producing, to Eni Oil and Gas which has purchased Oooguruk. Eni now owns the nearby Nikaitchuq field. Caelus has also sold Nuna, a small nearby oil deposit, to ConocoPhillips, but the deal has not closed. A few employees of Caelus will remain for a…

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Start on port reconstruction in Anchorage is delayed A business group lobbying the Anchorage assembly succeeded in getting the city to hold off on letting a contract for first phase of reconstruction at aging port facilities. The matter will be considered again at the next assembly meeting. Officials have an attractive bid in hand for the project to do the steel infrastructure for the port’s fuel and cement terminal, part of the overall reconstruction. Concerns were expressed over costs by…

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As the political wrangling over the state budget continues in the state Capitol there is particular concern for the University of Alaska following the governor’s veto of $131 million in state funds, or 41 percent of its budget. Funding for the university is still an issue as the Legislature’s special session continues, and some of the money may be restored. However, UA officials are already concerned about loss of key faculty and diminished enrollment. Given the timing, however, university officials…

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Strike halts ferry system State ferry system workers went on strike over a breakdown in contract negotiations with the state, shutting down sailings at the peak of the summer tourist and seafood seasons. Many seafood processors in coastal communities depend on the state ferries to send shipments of chilled fish. While cruise ships handle the bulk of summer tourists many independent travelers depend on the ferries, as do residents of coastal communities. The Inland Boatman’s Union of the Pacific represents…

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Governor hits Ketchikan dock Among Gov. Mike Dunleavy’s vetoes is $7.5 million in state funds to help pay for a moorage facility in Ketchikan for federal ocean research vessels. The money was intended to repair Ketchikan facilities to accommodate the Fairweather, a NOAA research ship. Without the facilities the U.S. Coast Guard is likely to “homeport” the vessel elsewhere. City seeks partners on dock The City of Ketchikan is meanwhile moving forward with a solicitation for potential private partners in…

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Utilities drop unified grid deal Six utilities along the state’s “railbelt” electric grid – the system from Homer and Seward north to Fairbanks – failed to reach final agreement on a unified grid management system and have withdrawn an application to the Regulatory Commission of Alaska to establish one. A jointly-owned transmission company was proposed as a way for utilities to finance upgrades to the grid, which until now has benefited largely from state grants. With that no longer an…

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