Electrical Power for Valdez and the Copper River Basin-1981

CHAPTER IIIPOWER MARKET DESCRIPTION AND OUTLOOKLocationValdez, situated in the northeast corner of Prince William Sound, is now~~ll known as the southern·· termim,ls of the Alaska oil pipeline. It isals~ . the·southern termin~s of the Richardson highway, which leads toFairbanks, 363 miles·north. Anchorage is 306 miles by road from Valdez.The Alaska Marine Highway connects Valdez to Whittier and Cordova. Itis served by air, but not mainline schedules.Glennallen, about half way between Valdez and Fairbanks, is 115 milesnorth on the Richardson highway. It is the eastern end of the Glennhighway, 189 miles from Anchorage.Figure 111-1 locates Valdez and Glennallen geographically.EconomyValdez economy before the oil pipeline was based on fishing and government.Before the 1964 earthquake, shipping played a part. The pipelineactivity has had heavy impact since 1970 when the first pipe stockpilingstarted. Oil storage and shipping facilities have been operating inValdez since the middle of 1977. Stability is returning after theextreme economic and demographic fluctuations caused by pipeline constructionbetween 1974 and 1976, and construction "wind-down" in late1976 and early 1977. The following chronology summarizes economicactivity in Valdez since 1970:1970 - Beginning of pipe delivery to Valdez and other areas alongthe pipeline corridor.1971 - Value of pipe dropped off but delivery of pipe continued.1972 and 1973 - No pipe delivered in this period. Business receiptsdecreased by SO percent in 1972 and continued to decrease in 1973.1974 to 1976 - Pipe delivery resumes with seven-fold increase by1975. Community experiences an ll-fold increase in businessreceipts from 1974 to 1975 and a four-fold increase from 1975 to1976.1976 - Peak of pipeline terminal construction. Pipe delivery eighttimes less than 1975 activity.1977 - Operation of pipeline and terminal began in late summer.CVEA service of some pump station utility type loads commenced.Since 1977, Valdez economy, judged by employment, dipped for severalmonths after pipeline operation commenced, then recovered with cyclic7