A coal-fired power plant is seen in Healy, Alaska, not far from Denali National Park and Preserve. (Cropped photo by Craig Talbert republished under Creative Commons license )
Southcentral Alaska’s natural gas crunch is boosting demand for coal-fired power hundreds of miles inland, a sign that a looming supply crisis will have far-reaching consequences across Alaska.
In a late-August filing with the state’s utility regulator, the electrical cooperative for Fairbanks said it had signed a six-year contract with Usibelli Coal Mine to supply Healy 2, a troubled coal-fired power plant.
Until February, Fairbanks’ cooperative, Golden Valley Electric Association, had planned to shut down Healy 2 because of its high maintenance and operating costs.
“The greater concern now is that the natural gas shortage in the Cook Inlet will worsen, resulting in a potentially critical situation for the Alaska Railbelt utilities starting in 2027,” GVEA said in the filing.
Since 2022 , the largest natural gas supplier in Southcentral Alaska has warned about an impending supply crunch for the region.