Alaska governor announces energy aid measures, bashes Chavez

By MATT VOLZ, Associated Press Writer

JUNEAU, Alaska (AP) - Alaska Gov. Frank Murkowski on Thursday created a new rural energy adviser post and signed over $183 million in aid, then bashed Venezuela President Hugo Chavez and his fuel program for the state's villages.

The high cost of fuel has driven about 150 Alaska Native villages to accept money for heating oil from Citgo, the Venezuelan petroleum company. The company is donating about $5.3 million to native nonprofit organizations to buy fuel this winter for more than 12,000 households.

A few villages have refused, saying they don't want to participate in what they consider an attempt by Chavez to embarrass the United States.

Murkowski said his announcement was not a response to the Venezuelan fuel aid. The state's rural energy aid was approved by the Alaska Legislature earlier this year, and Murkowski said his new adviser would continue the work of a rural energy council that has been in existence for several years.

But when asked about the Venezuelan aid, Murkowski said Chavez should be trying to lift Venezuelans out of poverty and the "tin shacks" around Caracas instead of politicizing rural Alaska's high fuel costs.

"They're simply initiating this kind of an offer in Alaska to buy favoritism in a political system that is evaluating, if you will, the legitimacy of Chavez," Murkowski said. "I think Chavez should practice a little recognition that charity begins at home."

The $183 million will be added to the state's Power Cost Equalization fund. The endowment is estimated to generate about $25 million per year to help pay down the high cost of electricity in rural parts of Alaska.

Murkowski appointed former state senator Nels Anderson to the new rural energy adviser position, which he said will ensure Alaska villages have a policy-level voice in state government. Anderson is charged with working with state agencies on ways to bring down the cost of energy in rural Alaska.

"It's crushing our people out there and we've got to do something about it," Anderson said. "If we don't solve that energy problem, the villages go down the tubes."

Murkowski leaves office Dec. 4. He did not consult with any of the gubernatorial candidates about creating the new position but, "We don't think that this particular issue is in conflict with any administration," he said.

http://www.adn.com/news/alaska/ap_alaska/story/8321122p-8217301c.html