Alaska Coop to Reduce Costs With New Fuel Delivery Boats
Posted on Jun 11, 2012 in Financing, Rates | Comments Off on Alaska Coop to Reduce Costs With New Fuel Delivery Boats
Anchorage-based Alaska Village Electric Cooperative (AVEC) christened two sets of tugs and barges, which will help the coop cut fuel costs. AVEC serves 54 remote villages and spends more than half of its gross revenue on diesel fuel for generation. AVEC entered into a long-term delivery contract with Anchorage-based Vitus Marine, LLC (Vitus), agreeing to provide upfront costs for its first sets of tugs and barges. Under the contract, Vitus will deliver fuel to AVEC member villages, saving the coop an estimated $2.5 million over the next five years. The National Rural Utilities Cooperative Finance Corporation has the full story in its newsletter.
