Southcentral Gas facility plans to spend about $41M on backup systems

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KENAI, Alaska (AP) - Cook Inlet Natural Gas Storage Alaska in Anchorage is planning to spend about $41 million to back up its ability to store and dispense fuel gas after built-up sand in a well and a failed dehydration unit caused the facility to lose about 20 percent of its capacity in March.

The Peninsula Clarion reports facility officials last month asked the Regulatory Commission of Alaska - the state agency that oversees utility pricing - to allow them to recover the project's cost in future storage rates. The company's petition says construction could begin in January 2019 and the new features could be operating by the end of that year if the commission approves.

The facility's fuel gas generates most of south central Alaska's heat and electricity.

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