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FAIRBANKS — As Administrator of the Alaska Industrial Development and Export Ascendancy Board, I apperceive the allegation it takes to participate on accompaniment and bounded government boards. For this reason, I appetite to acknowledge Frank Abegg for his accomplished account at the Interior Gas Utility. As a affiliate of the IGU Board, Mr. Abegg was complex in accurate negotiations over the accomplished 24 months arch to the alliance of the accustomed gas accumulation and administration systems beneath IGU ownership. While I acknowledge differing and assorted credibility of appearance in this process, I feel I allegation abode abundant inaccuracies in Mr. Abegg’s abandonment memo.

Mr. Abegg questions the amount AIDEA paid to acquirement the FNG supply, transportation, accumulator and administration arrangement to position the account for alliance beneath bounded ownership. As abundant in a presentation to the Alaska Senate Special Committee on Energy on Feb. 5, 2015, AIDEA committed to: 1) ensure the acquirement amount was appropriate, 2) balance its advance with adapted return, and 3) access bounded government approval afore the acquirement was closed.

AIDEA followed through on all fronts. First, through the admonition of both The Brattle Group and Western Financial Group, the acquirement amount was bent to be aural an adapted ambit of commensurable bazaar transactions. Next, AIDEA premised its advance on accomplishing a appear amount of return. Finally, as adapted by law, AIDEA presented the absolute angle to Interior association alive achievement of the absolute acquirement would be accidental on cancellation of three abstracted resolutions of abutment from IGU’s owners: the Fairbanks North Star Borough, and the cities of North Pole and Fairbanks.

AIDEA abundant its angle to the greater Fairbanks/North Pole association on a May 12, 2015, at a appointment hosted by the bounded governments. The presentation covered the acquirement price, adapted amount of return, acting AIDEA buying and advancing negotiations with an article to consolidate the gas account systems beneath unified bounded control. Afterwards accepting resolutions of abutment from all three bounded governments, the AIDEA Board assured the acquirement and accomplished negotiations to facilitate and accounts alliance beneath IGU. In accomplishing so, AIDEA did not breach a fiduciary assignment or apply an arbitrary advantage as alleged. Instead, it absolutely appear its angle to the Legislature, the bounded governments, and Interior association and systematically followed through to the contempo auction to IGU.

The advancement that AIDEA has withheld activity assets on the North Slope is incorrect. The ascendancy is currently negotiating with the accompaniment to augment the acceptable use of the basement as requested by IGU so that it can account the Interior Energy Project. Likewise the allegation that the absolute bulb and accumulator accessories crave adjustment ignores IGU’s own due activity consultants who begin no items present to acclaim adjoin commutual the account consolidation. Interaction with IGU management, during the due activity review, appropriate the account accurate modification assignment be done afterwards alliance so they could ascendancy activity ambit and timing.

An affirmation is fabricated that the projected 35 percent about-face amount to accustomed gas is “overly optimistic”. This bourgeois appraisal cardinal was called by the IGU Board and bent by an IGU adviser to be reasonable. Statements are additionally fabricated that the accepted gas accumulation arrangement is too big-ticket and the breadth is too short. However, the abbreviate appellation was requested by IGU and the account was a on and concurred with the arrangement acceding above-mentioned to AIDEA accepting it.

Allegations are fabricated that AIDEA has resisted application of a “potential lower amount another LNG supply” back the ascendancy has absolutely committed to ysis alternatives that accommodate assessable numbers. Discussions at the IGU Board affair on Aug. 7 affirm that an another angle has yet to be received.

Finally, accuse are fabricated that AIDEA recouped all of its activity amount and break withheld absorption balance on the gain of activity bonds. This is artlessly not actual as AIDEA incurred costs in balance of reimbursements and no activity bonds accept been issued. AIDEA is committed to abide to assignment with the IGU Board as the circumscribed account begins to booty advantage of acceptable acceding to body appeal and accommodation beneath the anew active costs agreement. The entities accept collaborated to assure the activity funds and actualize accoutrement that can abetment barter with about-face to use accustomed gas. Construction of broadcast LNG accumulator in Fairbanks is proceeding beneath the account accustomed by AIDEA with IGU concurrence. The aggregate accomplish taken to date accept bargain the amount of accustomed gas to customers. The amount today is about ten percent lower than delivered ammunition oil and the amount will abide to abatement as new barter are accustomed and added.

As a above citizen of the Interior and administrator of AIDEA, I attending advanced to connected assignment with the IGU on this important project.

Dana Pruhs was built-in and aloft in Fairbanks and currently lives in Anchorage. He is owns abundant business ventures including Pruhs Construction and serves on the Associated General Contractors Board of Directors, as able-bodied as the AIDEA Board.

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