Common Council hears of rising energy costs

By Diana Haecker
The Nome Common Council welcomed two new members to the panel: Councilman-elect Cameron Piscoya was sworn in to serve a three-year term and Kellie Miller took the oath of office to serve as the Youth representative.
The council made quick business of only a few action items that were mostly of housekeeping nature. One resolution was passed that authorizes each of the six council members, the Mayor of Nome, the City Manager Glenn Steckman and City Clerk Bryant Hammond to sign checks and depository pledge agreements; two signatures would be needed.
The council passed a resolution  designating Bryant Hammond as acting city manager from Nov. 12 -26, 2002.
In new business the council, on recommendation of City Manager Steckman and Public Works Director Cole Cushman, rejected a resolution that would’ve awarded a contract to Construction Machinery Industrial for an articulated boom lift in the amount of $99,500. Steckman explained that four proposals were received for the lift, but the lower bids had compliance issues and the bid from Construction Machinery Industrial was $20,000 over what was budgeted for the item.
Ken Morton delivered the NJUS report and brought expected yet hard-to-digest news of the increased price for electricity. How much? Morton said it’s complicated but gave the pricing for a single-phase household within city limits, using up to 750 kWh per month: the base rate of $0.1975 per kWh stays the same but the fuel surcharge has increased from $0.1599 to $0.2481, which brings the price per kWh to $0.4456. In comparison, up until this month, one kWh cost $0.3574 before the state’s Power Cost Equalization, which knocked $0.1018 off the price per kWh for residential users.
In a follow up email, Morton explained the reason for the fuel surcharge. “The surcharge is used to cover costs that relate to the fuel component of the utility’s operations,” he wrote.  “This includes:  purchase, wharfage, insurance (for assets & potential pollution), fuel loan interest, tank farm maintenance, etc.”  
 He then explained that NJUS calculates the fuel surcharge after fuel deliveries are completed in the fall, using “a weighted average approach to help buffer changes year-to-year.  Without this approach, the surcharge for this fall would have been an extra $0.0629/kWh,” he said.
And will the PCE cancel out the increase? That is not known yet as the state will release the new rate next month. “The only good news this year in regard to energy pricing is that the legislature, in recognition of the challenges of increased rural energy costs this year, raised the monthly kWh cap from 500 kWh to 750 kWh each month,” said Morton. The goal of the PCE program is to help offset the cost of rural energy to be closer to road system electrical energy costs, and the rate is calculated each fall following a change in fuel pricing.
PCE does not apply to businesses.
This month’s NJUS invoices will reflect the new fuel surcharge.
Morton also reported to the Council that he was part of a tour of the Department of Energy Idaho National Laboratory, the nation’s leading center for nuclear energy research and development. He said that the research on micro-nuclear technology moves along but at this point, one cannot buy a reactor off the shelf and commercial systems are being tested, with results expected at the end of this decade. In the meantime, he suggested to continue educating residents and the council on the issue. An economic analysis of micro-nuclear reactor is in the making and “if it says it doesn’t make sense for Nome, we don’t look at it hard, but if it does, we keep looking at it as the technology becomes more mature.”
City Manager Steckman in his report said that the city makes a push to get the message across for people not to park or store their vehicles in the public right-of-ways as winter approaches and snow removal will begin. Steckman said in light of higher fuel costs, city employees are asked to conserve energy and are instructed not to leave city vehicles running excessively. He also announced that Carrie M. McLain Memorial Museum Director Amy Phillips-Chan has submitted her resignation and her last at work will be November 4. He commended her on her work and expanding the museum collection. Phillips-Chan accepted a job in Juneau at the Alaska State Libraries, Archives & Museums as director of the division. Steckman said the job will be advertised in late November or early December. Asked if the city got responses for the job of assistant city manager, Steckman said, yes, there were two applicants, but none of them were qualified.
In citizen’s comments, Rhonda Schneider, outgoing executive director of the Nome Community Center introduced her successor, Ephraim “Butch” Palmero.
Samuel Hiratsuka, a legislative assistant for Congresswoman Mary Peltola, addressed the council and said he will hold mobile office hours for constituents on Tuesday and Wednesday.
In communications, the Nome Kennel Club reported the loss of the trail tripods that NKC board and volunteers have just this spring and summer put up along the Iditarod Trail between Farley’s Camp and Topkok. NKC obtained a Historic Iditarod Trail Alliance grant to purchase timbers and reflectors to replace old and fallen over tripods on this heavily used and treacherous section of the Iditarod Trail. Volunteers have completed standing up the new tripods in June but flooding by Merbok wiped out the tripods along with the Nome-Council Hwy and subsistence camps between Cape Nome and the Bonanza Bridge.
In Councilmember comments, Mark Johnson remarked that the National Weather Service has no meteorologist stationed in Nome any longer and that instead a social scientist is on staff. “We should encourage NOAA to bring a meteorologist back,” Johnson said. He welcomed the new council members Kellie Miller and Cameron Piscoya, a sentiment echoed by all council members.
Councilman Scot Henderson brought up the shortage of substitute teachers at Nome schools and encouraged people to consider helping out. On Monday, Nome-Beltz Middle High School was closed due to understaffing.
Mayor John Handeland reappointed John Odden to the Planning Commission, and the council unanimously confirmed the appointment. The next regular council meeting will be held on Nov. 14.