Palin's pipeline deal

Investigative reporting by the Associated Press has revealed serious questions about Governor Sarah Palin's vaunted 1,715 mile pipeline to bring natural gas from Alaska to the lower 48 states. She has touted this as her signature accomplishment, using it to claim expertise on energy independence.

Not so, it now seems. There is real question that the TransCanada Corp. that won the contract will ever be able to get it built, due to financing and regulatory difficulties, despite what begins to seem like a sweetheart deal. Rather than making the bidding attractive to the global energy giants that actually own the rights to the gas, as even Dick Cheney had advised her, Palin created a process that favored a few local pipeline companies. In the end, five bids were submitted. Four were ruled out as not meeting the bidding requirements, leaving TransCanada Corporation as the only viable bidder.

In addition, AP raises questions about improper, insider links with this company. The leader of Palin's project team had worked previously for a subsidiary of TransCanada, a connection that would have violated Palin's own regulatory ethical guidelines. A former TransCanada executive served as an outside consultant to advise on the adequacy of their plan. And Palin herself had a phone conversation a few months prior to the deadline with both the President and CEO of TransCanada, reportedly "to clarify the bidding process."

Even more problematic are questions of whether TransCanada can get financing to build the project, even with the $500 million supplement quaranteed by the Alaska government. "Most definitely TransCanada got a sweetheart deal this time," said Republican Sen. Bert Stedman, who voted against the TransCanada license. "Where else could you get a $500 million reimbursement when you don't even have the financing to build the pipeline?"

This is the maverick that will transform the way Washington does business??

Ralph