420 



CORPORATION WOULD SOON BE FORCED OUT OF BUSINESS. THIS WOULD, 

 OF COURSE, PROFOUNDLY EFFECT THE ECONOMY OF SOUTHEAST ALASKA. 

 IN A STUDY DONE BY THE MCDOWELL GROUP IN 1988, IT WAS FOUND 

 THAT THE ALASKA PULP CORPORATION IS RESPONSIBLE FOR AT LEAST 

 ONE-QUARTER OF ALL SITKA AREA EMPLOYMENT, AND AS OF 1986, WAS 

 RESPONSIBLE FOR AN ESTIMATED 7 PERCENT OF ALL REGIONAL 

 EMPLOYMENT . 



IT MUST BE EMPHASIZED THAT THERE ARE FEW ASPECTS OF OUR 

 ECONOMY HERE IN SOUTHEAST THAT WOULDN'T BE ADVERSELY AFFECTED 

 SHOULD APC BE FORCED OUT. MANY OF THE BUSINESSES HERE IN 

 SITKA HAVE ALREADY EXPRESSED THEIR CONVICTION THAT THEY WOULD 

 BE UNABLE TO STAY AFLOAT. 



JUST ONE IMMEDIATE EFFECT OF THE MILL CLOSURE ON SITKA 

 RESIDENTS, WOULD BE GREATLY INCREASED UTILITY RATES. THE 

 ALASKA PULP CORPORATION ACCOUNTS FOR APPROXIMATELY 27 PERCENT 

 OF ALL ELECTRICAL UTILITY REVENUE TO THE CITY AND BOROUGH OF 

 SITKA, WHICH MAKES IT POSSIBLE FOR THE CITY OF SITKA TO 

 PROVIDE RELATIVELY INEXPENSIVE HYDROELECTRIC POWER. THIS 

 COMMUNITY HAS BONDED ITSELF BASED UPON THE CONTINUED OPERATION 

 OF THE PULP MILL. SHOULD APC PULL OUT, SITKA'S BUSINESSES AND 

 HOUSEHOLDS WOULD BE FORCED TO SHOULDER A MUCH GREATER BURDEN. 



PRINCE OF WALES ISLAND, WHICH IS A PART OF MY DISTRICT, WOULD 

 BE IMPACTED VIRTUALLY OVERNIGHT BY REVISIONS IN ANILCA. THERE 

 HAS BEEN DRAMATIC GROWTH IN THE TIMBER INDUSTRY OVER THE PAST 



