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An Alaska state flag blows in the wind at the Robert B. Atwood Building in Anchorage, Alaska.
David Ryder | Bloomberg | Getty Images

These are tough times in Skagway, Alaska, population 1,183.

“We’re in hard core survival mode,” Mayor Andrew Cremata told CNBC.

In a normal summer, the Southeast Alaska town would be teeming with tourists from the cruise ships sailing the Inside Passage. Residents could drive 15 miles up the Yukon Highway into Canada to run their basic errands, or they could hop on a state-run ferry to the next town over, Haines.

But this year, the cruise ships have just started running again. Cremata is hoping Skagway will see 100,000 passengers this year; in 2019 they had 1.1 million. The border to Canada remains closed to non-essential traffic, and the ferries, part of the Alaska Marine Highway System, are plagued by budget cuts.

“Just getting your family down to go see a dentist or doctor, when that becomes burdensome or overly expensive, there’s a point where people have just had it and move away,” Cremata said.

Multiply Skagway’s situation by thousands of communities and more than 700,000 Alaskans, and you can begin to understand why The Last Frontier finds itself in last place in CNBC’s 2021 America’s Top States for Business rankings.

It is the sixth bottom-state finish for Alaska in 14 years. The state previously achieved the dubious distinction in the first four years of the study between 2007 and 2010, hitting bottom again in 2018.

As difficult as the past year has been in this state and across the country, it presented opportunities that Alaska failed to capitalize on.

Alaska met the pandemic with the best-funded public health system in the nation, according to the United Health Foundation, spending $289 per person per year. That is more than three times the national average. Earlier this year, the state was setting the pace for Covid-19 vaccinations, even in its most remote regions.

As the national economy struggled to regain its footing, Alaska offered a generally business-friendly regulatory climate — its legal system tilts toward business, and the number of state laws and regulations is manageable. The conservative-leaning Tax Foundation ranks Alaska’s tax climate the third-best in the country.

In Skagway, Mayor Cremata said state and federal officials have been extremely helpful through the crisis.

“They are always ready and willing not only to engage us as a community, but individual people and business owners in the community. People that were struggling with problems with unemployment and all these kinds of things,” he said.

And at a time of social upheaval, Alaska offered its relatively diverse population some strong protections against discrimination.

High costs hurt Alaska

So how did Alaska manage to finish No. 50 again in 2021 despite so many advantages going in? In a word: cost.

Cost of Doing Business carries the most weight in this year’s study. As the recovery builds, states are touting low business costs more than any other factor, according to CNBC’s analysis. Alaska is an extremely expensive place to do business.

Even Alaska’s competitive tax climate, which earns points for relatively low property taxes and no personal income tax, includes a top corporate tax rate of 9.4%, among the highest in the country.

A snow covered road with power lines in Kaktovic, Alaska.
David Howells | Corbis Historical | Getty Images

Utility costs are oppressive. Alaskans paid an average of $20.20 per kilowatt hour for electricity last year, according to U.S. Department of Energy data, with even higher rates in remote areas. That was second only to Hawaii, and nearly double the national average. Wages are high thanks to the high cost of living, and office and industrial space — which are in short supply — is pricey.

Cremata said he is worried about how the price of everything seems to be creeping higher.

“Everything’s barged in,” he said. “And so, if the cost of fuel goes up, it affects the rates on the barge and that affects the price of your milk and eggs.”

Indeed, even that high rate of public health funding may be deceiving, because health care in Alaska is so expensive. An office visit to a doctor in Anchorage averaged more than $206 last year, according to the Council for Community and Economic Research, C2ER. That is more than twice the cost in Phoenix, Arizona.

Meanwhile, Alaska’s Covid-19 vaccination rate, once the envy of the nation, has fallen below the national average, according to data from the U.S. Centers for Disease Control and Prevention.

Medical Assistant Julia Naea administers the Pfizer Covid-19 vaccine at the Blood Bank of Alaska in Anchorage on March 19, 2021.
Frederic J. Brown | AFP | Getty Images

In March, Alaska became the first state in the nation to make vaccines available to everyone aged 16 and older. Officials theorize that meant those who wanted to be vaccinated were quick to get their shots, leaving vaccine-hesitant residents — many in rural or remote areas — who have proven difficult to convince.

Vaccination rates are a metric in the Top States’ Life, Health and Inclusion category, where Alaska finishes No. 19 this year.

Internet access remains a challenge

In addition to its cost issues, Alaska ranks No. 49 in the Top States’ Infrastructure category, above only Maine. It is yet another lost opportunity. Alaska might have been able to use the nation’s move toward remote work to partly offset its inherent infrastructure disadvantages, which include its distance from the rest of the country and its vast size.

This year’s Top States study introduced broadband connectivity as an infrastructure metric. But broadband in Alaska is the worst in the nation, according to BroadbandNow Research.

In Skagway, Cremata said internet service is cumbersome and expensive.

“You have to actually have a landline in your house for it to work,” he said. “So, the internet has a pretty substantial price to it, but then you also have a $30 charge because you need a landline for the broadband to work.”

According to BroadbandNow, fewer than 61% of Alaskans have access to broadband at all, and none have access to a low-priced plan, which the organization defines as costing less than $60 per month. The average speed is a paltry 58.6 Mbps, or one-third the speed in the top-ranked state, New Jersey.

Cremata said that early in the pandemic, when he and other local leaders worried the cruise ships could disappear for five years, they convened a task force to consider ways to reinvent the economy. One of the ideas was to make Skagway an internet hub, but it went nowhere.

“You’d have to have really fast internet, obviously, because you probably want to have all of your communications done in the cloud, which is pretty much impossible right now in Skagway,” he said.

Alaska Gov. Mike Dunleavy, while speaking at a dedication ceremony for a hydroelectric turbine generator in Igiugig, Alaska, on Tuesday, July 16, 2019.
Luis Sinco | Los Angeles Times | Getty Images

In May, Gov. Mike Dunleavy created a task force to recommend ways to improve connectivity in the state.

“On the heels of a global pandemic, now more than ever do we see the critical role that the internet plays in nearly every part of life and the importance of good connectivity for every Alaskan,” Dunleavy said in a statement.

But it is Alaska’s third broadband task force in the last decade, with little to show for the efforts. It is also unclear whether the state can muster the funding needed to bring its service up to date.

In his statement announcing the task force, Dunleavy, a Republican, emphasized the use of federal pandemic relief money to pay for the expansion. And while his administrative order creating the task force also contemplates using state funds, Dunleavy and the state legislature are already locked in a titanic struggle over the budget.

This month, Dunleavy vetoed more than $200 million in state spending approved by the legislature, with cuts aimed at everything from tourism marketing to mental health services.

Dunleavy also vetoed $8.5 million in funding for Alaska’s ferry system known as the Alaska Marine Highway System, a link to the outside world for communities like Skagway. 

And he relentlessly slashed the University of Alaska’s budget, with cuts totaling $70 million over three years. That hurts the state’s ranking in Education, where it finishes No. 47.

Crude oil rebound hasn’t helped Alaska

Hanging over all of Alaska’s business and financial woes is the price of oil, the state’s economic lifeblood. Oil revenues typically account for more than one-third of the state’s budget.

A part of the Trans Alaska Pipeline System is seen on September 17, 2019 in Fairbanks, Alaska.
Joe Raedle | Getty Images

Last year, as weak demand during the pandemic pushed oil prices to historic lows, oil production in Alaska fell to its lowest level in more than 40 years, according to the Energy Department.

This year, prices have rebounded, but production in Alaska has not. Alaska oil producers face much lower cost competition in the lower 48, as well as an intensifying tug-of-war over federal oil leases. Production through April was down nearly 5% from a year ago.

State budget forecasters expect oil production tax revenue will be around $311 million in the 2021 fiscal year that ended on July 1. That would be a 9% increase from 2020, but a 36% decline from the year before.

Those kinds of numbers could make it even harder for Alaska to climb out of the cellar next year.

Cremata said he hopes the crisis will convince Alaska to think beyond its traditional economic drivers including tourism, fishing and oil.

“You can’t think backwards. You have to think forwards,” he said. “Perhaps, this is like a chaos-opportunity moment — where there’s chaos, there’s opportunity, so that people in Alaska, who maybe have been relying on things that aren’t as reliable anymore, maybe try to expand towards some different ideas.”

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Is Tesla’s reputation ruined? It depends on who you ask

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Is Tesla's reputation ruined? It depends on who you ask

Conversations around Tesla’s reputation leaned toward the negative throughout 2023, but it depends on who you’re talking to, reports YouGov.

What’s the ‘Buzz’ about Tesla’s reputation?

The global market research firm conducted polls about what it calls the “Buzz” around Tesla – that is, what people are hearing about the brand – and whether there’s been a change in the proportion of people considering driving its EVs following recalls and recent negative headlines.

YouGov asked US adults about “Buzz” between January 2023 and April 2024:

Over the past two weeks, which of the following brands have you heard something POSITIVE / NEGATIVE about (whether in the news, through advertising, or talking to friends and family)?

Tesla’s Buzz scores stayed consistently negative through 2023 among YouGov’s “all US adults” category, with an average score of -7.1 in a score range of -20 to 90, and its scores dipped a bit further following the Autopilot ADAS recall in December.

Tesla’s customer base had considerably higher Buzz scores in 2023, meaning they were more likely to say they were hearing positive things about the brand. Current Tesla customers averaged a net Buzz score of 61.8, and that steadily increased in the early half of 2023 before stabilizing.

Would you still buy a Tesla?

Here’s where it gets interesting.

YouGov asked consumers between January and December 2023 whether they’d consider a Tesla when making a future purchase, and 70% of current Tesla owners said they would consider buying a Tesla.

In the “all US adults” category, unlike Tesla’s negative reputation results, it’s a positive percentage: 7.7% say they would consider Tesla for their next car purchase, and scores in this group have shown no significant change since Q1 2023.

YouGov concludes that “news of brand recalls has not played a significant role in shaping consumer consideration for the brand, particularly among Tesla’s customer base.”

Electrek’s Take

This is intriguing but not shocking. Tesla has a highly loyal customer base. The lease is about to end on my Tesla Model 3. We planned to sign a new lease for a Model Y. The recalls haven’t bothered me much, but all the turmoil that Fred and Jamie have reported on in recent weeks has. It’s most definitely killed my Tesla buzz.

When I leased this Model 3, I felt excited and proud. Now I feel disappointed and deflated by what’s happened at Tesla in recent weeks, thanks to Elon Musk’s layoffs and his bizarre decision to wipe out the entire Supercharger team. One of the best things about driving a Tesla is the Supercharger network.

Plus, it’s important to note that YouGov’s poll about next car purchases doesn’t extend into 2024, so it’d be interesting to see how all the recent drama has affected Tesla’s reputation with Tesla drivers.

I’m still considering a Tesla for my next car selection because, well, Tesla drivers know why. But I’d have to hold my nose while making that choice – I know it’s probably still good for me, but it’s now a bitter pill to swallow.

Read more: I just bought my very first Tesla. Here’s what happened


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Tesla releases new Optimus humanoid robot video that creates controversy

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Tesla releases new Optimus humanoid robot video that creates controversy

Tesla has released a new video of a prototype of Optimus, its humanoid robot, and it created some controversy as some disagree about how impressive it is.

Last month, Elon Musk gave an update on the timing for the rollout of Optimus. The CEO says that Optimus is already performing factory tasks inside its lab. He believes that Optimus will be used to perform real tasks inside actual Tesla factories by the end of the year.

Furthermore, Musk said that he believes Tesla could start selling its Optimus humanoid robot to customers outside of the company by the end of 2025.

This is a very aggressive timeline, nothing unusual for Musk at Tesla, but the company has gained some credibility on the project in recent months.

Late last year, Tesla unveiled “Optimus Gen 2”, a new generation of its humanoid robot that should be able to take over repetitive tasks from humans.

The new prototype showed a lot of improvements compared to previously underwhelming versions of the robot, and it gave some credibility to the project, which was laughed off by many when first announced with a dancer disguised as a robot for visual aid a few years ago.

However, everything Tesla showed in the Gen 2 update was done through teleoperation of the robots.

Now, Tesla has released a quick update video about Optimus and it shows the robot performing some tasks with end-to-end neural nets:

In the video, Tesla shows Optimus moving battery cells from one tray to another. First, by itself, and later, in cooperation with an industrial robot.

Tesla does share a shot of engineers training the robots with what appears to be VR systems:

However, some believe that this shows Tesla is still pretty early in its software development for the robot:

Milan Kovac, the engineer in charge of Optimus at Tesla, also shared some comments along with the video update:

The engineer confirmed the new neural net used to power the humanoid robot:

We’ve trained and deployed a neural net allowing Optimus to start doing useful tasks, such as picking up battery cells coming down a conveyor and precisely inserting them into a tray.

Kovac says that Tesla is now working to make Optimus faster, as well as capable of dealing “with more adverse terrains”.

Electrek’s Take

To be honest, I wouldn’t worry too much about the status of software development.

As a whole, it’s clear that the AI space is moving ultra-fast right now, and it feels like the right time to develop general-purpose humanoid robots to take advantage of it.

Even if Tesla isn’t the one to solve AI, it is valuable to have a hardware package that can do lots of things with the right AI. I could see Optimus becoming that thanks to Tesla’s experience deploying efficient and affordable AI hardware and power electronics in vehicles.

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Texas goes big on solar + storage that can power 41,000+ homes

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Texas goes big on solar + storage that can power 41,000+ homes

A 208-megawatt (MW) solar farm with 80 megawatt hours (MWh) of storage has come online west of San Antonio, Texas.

Solar + storage developers Cypress Creek Renewables brought Zier Solar + Storage online in Brackettville, Texas, on May 2, 2024. Zier can produce enough energy annually to power 41,600 homes.

Cypress Creek says that ERCOT, Texas’s grid, has already used Zier to ease supply strain.

“Texas needs every available megawatt, and low-cost renewable energy has proven critical as it continues to reach new production heights in ERCOT,” said Judd Messer, Texas vice president of Advanced Power Alliance. “Solar energy is ensuring sufficient capacity during daytime peak, setting records nearly every month, and quick-responding energy storage delivers a substantial reliability benefit when demand soars or when dispatchable energy unexpectedly falls offline.”

The project will provide $11.5 million in tax revenue to Kinney County with an additional $11.7 million earmarked for an independent school district. 

Cypress Creek has a 6-gigawatt (GW) pipeline of 24 projects in construction or development in Texas. That includes a 100 MWh standalone battery storage project in Rosenberg, near Houston, expected to come online next month.

Texas is No 1 in the US for solar capacity. The state already has nearly 23 GW installed, and the Solar Energy Industries Association expects an additional 41 GW of solar to be installed over the next five years.

Read more: Solar to displace natural gas in the daytime + in summer on the Texas grid


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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. – ad*

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