Why wasn the transmission line insured? How will the repair costs be paid?
Industry-wide, transmission lines are typically not insured. If insurance could be purchased, the cost could be about as expensive on an annual basis as the costs for the repairs that have just been completed. Every five years, the operations contract with AIDEA requires an insurance review, and 2008 is a review year. The consultant hired to do the review will check on the availability and cost of insurance for the line. The repair costs will likely be financed through a long-term loan, though grant funding is being sought. The impact to rates will be negligible and will not occur until after new rates are approved by the Regulatory Commission of Alaska, possibly in 2009 or 2010.
