Opinion: The cost of waiting on Alaska LNG is already showing up

As former mayors of Anchorage, we each had the responsibility of leading Alaska’s largest city through moments of challenge and opportunity. While our administrations differed in time and approach, one priority remained constant: ensuring that Anchorage and Alaska have access to reliable, affordable energy.

Energy keeps our homes warm through long winters, powers our schools and hospitals, and fuels the businesses that employ our neighbors. It literally fuels every aspect of our economy and our quality of life. When energy becomes uncertain or unaffordable, the consequences are felt immediately by families, employers and communities across the state.

Today, Alaska faces a generational energy challenge. Cook Inlet natural gas production has been declining for decades. Like the frog in a pot on the stove, the problem around us has slowly grown but is about to reach a raging boil. Declining supplies of inexpensive Cook Inlet gas, rising demand and a lack of long-term certainty jeopardize the stability we rely on. Without action — right now — we will lose control over energy costs and availability.

We have faced moments like this before. During his tenure as mayor, Dan Sullivan recognized early the urgency created by declining Cook Inlet gas production. He convened an Energy Task Force that brought together industry leaders, policymakers and stakeholders to confront the issue directly. That work helped lay the foundation for the Cook Inlet Recovery Act, which the Legislature passed quickly to spur new investment and extend the life of the basin. It showed what is possible when Alaska acts with focus and urgency. It also showed the legislature can move fast when aligned on policy.

This is not a new conversation. For years, studies commissioned by both the Alaska Legislature and multiple administrations have identified the need to modernize Alaska’s tax structure and energy policies to remain competitive for large-scale investment and infrastructure projects. Again and again, those reviews reached the same conclusion: If Alaska wants to attract and keep transformational projects, the state must provide a stable, competitive framework that reflects the realities of modern energy development.

The Alaska LNG project is the only viable path to meet that need. It would deliver a stable, long-term supply of natural gas to Southcentral Alaska, helping ensure that homes, schools and businesses have dependable energy at predictable prices. It would also create jobs, strengthen the economy and generate revenue that supports essential public services.

For Anchorage and the entire Southcentral region, the stakes could not be higher. As the economic center of the state, Anchorage depends on dependable energy to sustain growth and opportunity. Utilities, employers and families all need certainty to plan ahead.

If the Legislature fails to pass meaningful property tax reform for Alaska LNG, this opportunity will slip away like other projects have done. Alaska’s property tax system was not designed for a megaproject like Alaska LNG. Because of that, tax reform legislation was introduced in March that will lower our energy bills and speed the delivery of natural gas from the North Slope. Our legislators must act quickly on a targeted solution and avoid making changes that raise energy costs or slow this project. Otherwise, Anchorage and all Southcentral Alaska will be forced to rely on imported gas for decades.

That outcome exposes us to higher and more volatile costs, shrinks our economy, prevents job growth and sends billions of dollars out of state.

Every day of delay increases that risk. As our electric and gas bills made clear this winter, costs are already rising. Without fast action, consumers should be prepared for increases of 30% to 40% or more. Our state will become an even harder place to start a family or a business.

A project of this scale requires careful consideration and responsible decision-making. But waiting carries its own consequences. The longer Alaska delays, the fewer options remain and the more expensive those options become.

As former mayors of Anchorage, we each had unique approaches to problem-solving. But now we speak with one voice: State leaders and legislators must act with urgency and purpose to enact tax changes that propel this project and unlock the revenue, economic, energy security and other benefits from our North Slope natural gas. Decisions now will shape the state’s economic future for generations.

George Wuerch (Anchorage mayor from 2000-2003) previously served as governmental affairs manager for the Northwest Alaskan Gasline, was founder/president of Fluor Daniel Alaska Engineering and served as vice president of corporate affairs for Alyeska Pipeline Service Co.

Mark Begich (Anchorage mayor from 2003-2009 and U.S. senator from 2009-2015) is a strategic consulting adviser hired by Gov. Dunleavy’s office to help advance the Alaska LNG project.

Dan Sullivan (Anchorage mayor from 2009-2015) previously served on the Regulatory Commission of Alaska and the Alaska Natural Gas Development Authority board.

Dave Bronson (Anchorage mayor from 2021-2024) is a candidate for governor of Alaska.

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