The World's #1 Renewable Energy Network for News, Information, and Companies.

Geothermal Project Sends Utility Cooperative into Chapter 11

Exploring and developing geothermal resources is expensive. But for one electric co-op in Alaska, it was too expensive.

On September 29th, the Naknek Electric Association filed for Chapter 11 bankruptcy reorganization, citing assets of $10 million to $50 million and liabilities in the same range. The filing in federal Bankruptcy Court stems from the electric cooperative's involvement in drilling a well aimed at finding an underground source of hot water to harness for making electricity. The small utility ran into unexpected costs and other problems with the drilling venture, a bankruptcy lawyer representing the co-op said. Naknek Electric generates power for communities and salmon canneries at Bristol Bay in Southwest Alaska.

"NEA has engaged in a geothermal drilling project requiring extraordinary capital," Ronald Seigley, a vice president for CoBank based near Denver, said in a statement filed in the Superior Court. "NEA has suffered material delays and cost overruns in that project. This has impaired NEA's ability to pay its debts as they become due."

The co-op's vision was to create a 25 MW geothermal generation plant and 450 miles of transmission lines to bring electric power to 25 villages across the region. The co-op was eager to find alternatives to diesel. As was explained in an earlier story on the project the residents of the co-op's territory currently pay $0.43 per kWh for electricity.

ThermaSource, a California-based geothermal driller and now one of the co-op's creditors, ran the rig and spud the G-1 well on Aug. 16, 2009.

Naknek Electric General Manager Donna Vukich said in July that the well was completed to a depth of 10,433 feet and found what could be a viable hydrothermal system for generating power. The geothermal project was over budget, in part because well costs went up with a state ruling that deep geothermal holes were subject to regulation as oil and gas wells.

RELATED ARTICLES

Global Geothermal Alliance Concept One Step Further


Leslie Blodgett, Geothermal Energy Association The International Renewable Energy Agency (IRENA) convened roughly 60 stakeholders in June in Nairobi to finalize the concept of the Global Geothermal Alliance (GGA) and exchange views on the best way forward. GEA's Executi...
Pope Francis

A 9-Minute Guide To Pope Francis’ Encyclical on Climate Change

Jim Lane, Biofuels Digest Pope Francis issued Laudato si’ (Praise Be to You) On the care for our common home, his second encyclical, concerning Catholic doctrine with respect to climate change, consumerism, and development.
US Capitol

Republicans and Democrats Back Bill to Level the Playing Field for Renewable Energy

Vince Font, Contributing Editor U.S. Senators Chris Coons and Jerry Moran are leading a bipartisan effort to reintroduce tax code legislation aimed at leveling the playing field for renewable energy investment. The Master Limited Partnerships Parity Act w...
Pope Francis

The Common Goals of the Pope and Clean Energy

Paul Stinson, EDF Pope Francis turned a keen eye toward the environment and the problem of climate change with his encyclical,“Laudato Si” (“Praised Be”). As a clean energy advocate, I’m heartened that Pope Francis recognizes the need t...
Renewable Energy World's network editors help deliver the most comprehensive news coverage of the renewable energy industries. Based in the U.S. and the UK, the team is comprised of editors from Pennwell Corporation's myriad of publications that ...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

SAP for Utilities

The SAP for Utilities conference is the most comprehensive SAP for Utili...

GRC Annual Charity Golf Tournament

Designed by three-time U.S. Open champion Hale Irwin, the Hill...

GRC Fieldtrip - Geothermal Direct Use Tours of the Peppermill Resort

Located at the north end of the Moanna Hot Springs thermal anomaly, the ...

COMPANY BLOGS

Renewables make huge strides globally in 2014

Renewable sources of energy are making an increasing impact on the globa...

Net Zero Energy Efficient Buildings and Geothermal Heat Pumps

As the U.S. market for green building design and construction evolves, ...

California Solar Installations Put 6 Gigawatts of Power Online

That’s according to figures from the California Independent System...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS