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MISSION
AEA pursues
energy solutions
to meet the
unique needs of
rural and urban
communities.
IMPACT
AEA positively
affects nearly
every community
and ratepayer
in Alaska.
LEGACY
For more than
46 years, AEA has
ensured Alaskans
have access to
safe, reliable,
affordable energy.
Reducing the cost
of energy in Alaska
2022ANNUAL REPORT
The South Fork Hydroelectric Plant
produces power equivalent to that
consumed by approximately 800 homes.
CONTENTS About AEA
Message from the Governor
Message from the Chair
Message from the Executive Director
Owned Assets
Power Cost Equalization
Rural Energy
Renewable Energy and Energy Efficiency
Grants and Loans
Financial Highlights
Board of Directors
Executive Team
3
4
5
6
8
10
12
16
22
24
26
27
About AEA
AEA provides energy solutions to meet the unique
needs of Alaska’s rural and urban communities.
02 | 2022 AEA ANNUAL REPORT
Dan and Carmen Janke inside their
South Fork Hydroelectric Plant, located
along Hiland Road, in Eagle River.
The project, which produces enough
power equivalent to that consumed
by approximately 800 homes, was
supported by AEA’s Power Project Fund.
An independent power producer, the
facility provides Matanuska Electric
Association with renewable energy at
an economical, fixed-rate cost.
Cover Photo
Created in 1976 by the Alaska Legislature,
the Alaska Energy Authority (AEA) is a public
corporation of the State of Alaska governed
by a board of directors with the mission to
“reduce the cost of energy in Alaska.” AEA
is the state’s energy office and lead agency
for statewide energy policy and program
development. AEA positively affects nearly
every community and ratepayer in Alaska.
Whether building modern and code-
compliant bulk fuel tank farms, upgrading
to high-efficiency generators in rural
powerhouse systems or integrating
renewable energy projects, AEA emphasizes
community-based project management. AEA
works to diversify Alaska’s energy portfolio,
lead energy policy, invest in Alaska’s energy
infrastructure, and provide technical and
community assistance to rural Alaska.
AEA built and owns several key pieces of
Railbelt electric infrastructure for the benefit
of Alaskans. Through its Renewable Energy
Fund and the Power Project Fund, AEA offers
grants and loans to qualifying projects in
the energy projects. AEA also manages
the Power Cost Equalization Program, and
several Renewable Energy and Energy
Efficiency Programs to grow Alaska’s clean
energy economy.
This publication on the activities and financial condition of AEA is submitted in accordance with Alaska Statute
44.83.940. Design and production by AEA. A total of 500 copies of the report were printed at Service Business
Printing located in Anchorage, Alaska at a cost of $6.50 per copy.
2022 AEA ANNUAL REPORT | 03
Dear Fellow Alaskans,
The Alaska Energy Authority (AEA)
was created in 1976 to promote,
finance, and construct power projects
to diversify Alaska’s energy portfolio.
This time coincided with Alaska’s foray
into the arena of large-scale energy
infrastructure projects. More than four
decades later, the pursuit of energy
diversification remains a top priority
for our energy independence, security,
and sustainability.
As the lead agency for statewide
of power from the Bradley Lake
Hydroelectric Project. Improvements
to transmission and energy storage
infrastructure will increase the
reliability and resiliency of the grid,
create operational efficiencies, and
continue to provide affordable,
reliable power to Alaskans. This
bonding by AEA, in partnership with
the Railbelt utilities, comes at no
additional cost to ratepayers and does
not add to the burden on the state
treasury.
Alaska’s energy needs are great and
so is our potential to harness it. By
continuing to pursue energy that
is sustainable, dependable, and
affordable we can lower the cost of
energy for rural and urban Alaska,
open up economic opportunities
for all Alaskans, and attract future
investments to our Great State.
Sincerely,
MIKE DUNLEAVY
Governor
Message fromthe Governor
energy program development, AEA is
central to diversifying our energy mix.
To bolster and guide this collaborative
effort between Alaska stakeholders,
public and private alike, I established
the Office of Energy Innovation.
Together with our partners, we will
develop innovative, sustainable, and
renewable technologies to ensure
Alaska’s energy independence and
its position as a national and world
energy leader.
As part of our ongoing commitment
to rural Alaska, we invested tens of
millions into the design, construction,
and maintenance of power systems
and bulk fuel tank farms in 19
communities. These investments
improve and sustain critical energy
infrastructure that enables nearly
200 remote communities’ access to
affordable and dependable power.
To support the future integration
of renewable energy projects
on the Railbelt, AEA closed on
$166 million in bond financing to
improve the efficiency and capacity
LEARN MORE ABOUT THE OFFICE OF ENERGY INNOVATION AT
https://gov.alaska.gov/admin-orders/administrative-order-no-340/
04 | 2022 AEA ANNUAL REPORT
On behalf of the board of directors, it is my
privilege to introduce the Alaska Energy
Authority’s (AEA) 2022 Annual Report for
fiscal year 2021-2022. This report highlights
AEA’s key accomplishments, notable
initiatives, and financial performance from
the preceding year.
AEA owns the Bradley Lake Hydroelectric
Project, which has provided some of the
lowest-cost wholesale power in the state for
more than 30 years. To augment its economic
power dispatch capacity, AEA, in partnership
with the Railbelt utilities, is exploring the
overall feasibility of increasing capacity with
the Dixon Diversion project. Water from Dixon
Glacier basin would be used to increase
reservoir levels to allow for greater power
production at Bradley Lake. This project
would be the largest hydropower project
in Alaska since Bradley Lake. In addition to
keeping energy costs low, it is expected to
provide additional ancillary public benefits
including job creation and integration with
other renewable energy resources.
For the nearly 200 rural communities who
benefit from the Power Cost Equalization
program, the Governor and Legislature
increased the maximum kilowatt-hours (kWh)
available to residential customers for
reimbursement from 500 kWhs to 750 kWhs
per month. PCE, which helps bridge the gap
in the cost of energy between urban and
rural Alaska, serves as a crucial lifeline for
rural Alaskans. This effort underscores AEA’s
commitment to rural Alaska.
Through its Renewable Energy Fund (REF)
program, AEA successfully secured $15
million, the largest appropriation for the
REF since the Fiscal Year 2014, to fund
all 27 projects as recommended to the
Legislature. These projects will provide an
array of benefits across the state including
the proving of nascent technologies,
improvements in rural systems design, and
continued integration of renewable energy
technologies, further diversifying Alaska’s
energy portfolio.
As I reflect on another year of change and
progress, I want to thank all AEA’s employees
for their extraordinary commitment to our
mission and the people of Alaska, and I look
forward to 2023.
J. DANA PRUHS
Chair
Bradley Lake Hydroelectric Project, Alaska
Message from the Chair
AEA is focused
on the development
of renewable energy
projects that move
Alaska toward a clean
energy future.““
2022 AEA ANNUAL REPORT | 05
Throughout 2022, AEA pursued innovative
energy projects that will help ensure Alaskans
have access to safe, reliable, affordable
energy. This progress would not have been
possible without the continued support of
the Governor and the Legislature. We also
recognize the significant contributions of our
federal, state and local partners, public and
private alike, for the milestones achieved to
date.
Alaska is benefiting from the passage of the
new Infrastructure Investment and Jobs
Act (IIJA). For decades, Alaska’s unique
infrastructure needs have far exceeded the
funds available. With these funding sources,
AEA is positioned to advance existing plans,
pay for much-needed upgrades to the state’s
largest electrical grid, and fund new and
existing electric vehicle-related programs.
As part of IIJA, the Grid Deployment
Office is administering a $10.5 billion Grid
Resilience and Innovation Partnerships
Program to enhance grid flexibility and
improve the resilience of the power system
against growing threats of extreme weather
and climate change. These programs will
accelerate the deployment of transformative
projects that will help to ensure the reliability
of the power sector’s infrastructure, so
all American communities have access to
affordable, reliable, clean electricity anytime,
anywhere. In response, AEA has submitted
four concept papers in preparation for
potential project funding.
The IIJA also established the Grid Resilience
Formula Fund Program, which allocates
$60 million to Alaska over five years, outside
of the direct federally recognized tribe
allocations. Federal funding for years one
and two for the State is set at $12.1 million
and $10 million respectively. The program
aims to reduce power outages in extreme
weather and natural disasters by improving
the resilience of the electric grid. The $22.1
million for funding year’s one and two will
be made available to program applicants in
AEA’s first solicitation cycle upon approval
of AEA’s program plan by the United States
Department of Energy. The IIJA also makes
$11 million available to protect Alaska’s grid
infrastructure against cyberattacks.
AEA is responsible for developing the
State of Alaska’s Energy Security Plan. This
plan provides the federal government,
the Governor, state and local government
agencies, and the energy industry with a
blueprint designed to address a potential or
actual energy emergency caused by supply
In the past year,
we pursued innovative
energy projects that
will enhance the
state’s current energy
assets and expand
its renewable energy
portfolio.““
06 | 2022 AEA ANNUAL REPORT
Message from the Executive Director
disruptions, a rapid and unsustainable
increase in energy prices, or other energy
emergency. It is a manual for state
government leaders charged with the
responsibility of ensuring the health,
welfare, and safety of Alaskans during
these emergency events.
In September 2022, AEA and the Alaska
Department of Transportation & Public
Facilities (DOT&PF) received approval
from the United States Department
of Transportation Federal Highway
Administration (FHWA) to implement
Alaska’s EV Infrastructure Deployment Plan
to build a network of EV charging stations
along Alaska’s highway corridors unlocking
$19 million to expand EV charging
infrastructure in Alaska. Under the IIJA,
Alaska is allocated a total of $52 million
over five years to support the expansion of
an EV charging network in the state, with
opportunities to apply for an additional
$2.5 billion in competitive grant funding.
In collaboration with DOT&PF, AEA is
working to ensure efficient and equitable
deployment across Alaska.
To support the mission of our military
members, AEA in collaboration with
the Golden Valley Electric Association
(GVEA), applied for and was awarded
$12,752,540 from the Office of Local
Defense Community Cooperation’s Defense
Community Infrastructure Pilot Program
in September 2022 to expand electricity to
the Black Rapids Training Site. The grant
will enable Black Rapids to transition
from diesel generator power to electric
distribution along the Richardson Highway,
in turn improving resiliency, saving money,
and benefitting the environment.
As we look toward the future of AEA and
recognize the unprecedented level of
federal funding that will become available
in 2022 and beyond, we see that AEA is
well positioned with existing programs and
shovel-ready projects to facilitate Alaska’s
transition toward cleaner energy and a
more diverse economy.
CURTIS W. THAYER
Executive Director
Last fall, AEA was part of a delegation of Alaskans that visited the United States Department
of Energy’s Idaho National Laboratory to learn about microreactor opportunities in Alaska.
Saint George Island, Alaska
2022 AEA ANNUAL REPORT | 07
Between 2008-2021,
the Alaska Intertie
saved GVEA customers
an average of $37
million per year.
Alaska Intertie, Photo by GVEA
08 | 2022 AEA ANNUAL REPORT
OwnedAssets
Throughout the 1980s, AEA developed the
state’s energy resources to help diversify
Alaska’s economy and provide affordable
energy to Alaskans. AEA built and owns
several key pieces of Railbelt electric
infrastructure — the Alaska Intertie, the
Bradley Lake Hydroelectric Project, and the
Sterling to Quartz Creek transmission line.
These assets benefit Railbelt consumers by
reducing the cost of power.
Alaska Intertie
Completed in 1986, the Alaska Intertie is a 170-mile long, 345-kilovolt
(kV) transmission line that stretches between Willow and Healy and
operates at 138 kV.
The Intertie connects Golden Valley Electric Association (GVEA), the
utility that serves areas north of the Alaska Range, with Southcentral
Alaska utilities. It was funded with State of Alaska appropriations
totaling $124 million and has no debt service. The Intertie provides
significant cost savings through the transmission of economy energy
to GVEA. It delivers to GVEA its power share of Bradley Lake and
enables the sharing of reserve generation capacity between the
Anchorage and Fairbanks load centers.
Operation of the Intertie is governed by the Alaska Intertie Agreement
signed in 1985 and amended thereafter. The parties to the agreement
are AEA, Chugach Electric Association, GVEA, and Matanuska
Electric Association. Each of these entities has a seat on the Intertie
Management Committee (IMC), which has responsibility for managing
the Intertie.
Through AEA’s leadership as an IMC member and with its step-in
rights on financial decisions regarding the Intertie, AEA is uniquely
positioned to ensure that ratepayers across the electrically
interconnected Railbelt region benefit as intended under the current
Alaska Intertie Agreement. In Fiscal Year 2021, the IMC created an
Asset Management Plan for the Alaska Intertie. The plan includes
a preventive maintenance program, multi-year projections of
maintenance and repair funding, climate change considerations, and
analysis of factors affecting future use. The plan incorporates and
facilitates some of the major changes anticipated on the Railbelt,
such as increasing renewable power generation, reduced greenhouse
gas production, and participation by Independent Power Producers.
The Bradley Lake Hydroelectric Project was
energized in September 1991. The project,
located near Homer, Alaska, has been a low-
cost source of electricity for the Railbelt for
more than 30 years. The 120-megawatt (MW)
facility generates about 10 percent of the total
annual power used by Railbelt electric utilities
at some of the lowest-cost power to more than
550,000 Alaskans.
The power generation potential of Bradley
Lake was first studied in 1955 by the United
States Army Corps of Engineers. AEA, then
the Alaska Power Authority, assumed
responsibility for the project in 1982. To
date, the total project cost is approximately
$400 million. The project was funded
through legislative appropriations and AEA
revenue bonds that are being repaid by the
participating utilities. The Bradley Lake Project
Management Committee manages the project,
subject to AEA’s non-delegable rights, duties,
and responsibilities.
In 2020, Bradley Lake was expanded to
increase energy generation through the West
Fork Upper Battle Creek Diversion Project. In
late 2020, AEA purchased a component of the
interconnected transmission system (Sterling-
Quartz) located on the Kenai Peninsula to
upgrade, reduce losses and increase reliability.
In December 2022, AEA and the Railbelt
utilities closed on $166 million in bond
financing to improve the efficiency and
deliverable capacity of power from the Bradley
Lake Hydroelectric Project. The bond proceeds
will be used solely to pay for transmission line
upgrades and battery energy storage systems
that will reduce the constraints on the Railbelt
grid by improving the Kenai Peninsula’s
transmission capacity to export power from
Bradley Lake, while also allowing for the
integration of additional renewable energy
generation.
Funding for the projects is coming from
payments by the five Railbelt utilities above
those required to retire the Bradley Lake
project bonds, and will come at no additional
cost to ratepayers or added burden on the
State treasury. These projects include:
Bradley Lake Hydroelectric Project
AEA, in partnership with the Railbelt
utilities, is studying a new project
to optimize the energy potential
of Bradley Lake. Similar to Battle
Creek, the Dixon Diversion Project
would divert water from Dixon
Glacier increasing the annual energy
production of Bradley Lake by 50
percent, or the equivalent of 24,000-
30,000 homes. It would be the largest
renewable project in Alaska in the
last 30 years. Additional studies are
funded by the State and Railbelt
utilities. Read more at https://www.
akenergyauthority.org/pressreleases
Upgrade transmission line between
Bradley Lake and Soldotna Substation;
Upgrade transmission line between
Soldotna Substation and Sterling
Substation;
Upgrade transmission line between
Sterling Substation and Quartz Creek
Substation; and
Battery Energy Storage Systems for Grid
Stabilization.
AEA, Railbelt utilities
pursue Alaska’s
largest hydropower
project in 30 years
10%
Bradley Lake generates about
10 percent of the total annual
electrical energy used by
Railbelt electric utilities.
ENERGY
$0.04
From 1995 through 2020, the
project averaged 392,000 MWh
of energy production annually at
$0.04 per kWh.
GENERATION COST PER KWH
120MW
Bradley Lake generators are
rated to produce up to 120 MW
of power.
CAPACITY
2022 AEA ANNUAL REPORT | 09
PCE helps to lower the cost of electrical power
borne by rural residents and community
facilities to a level comparable to that paid by
residents of Alaska’s larger cities.
The PCE program makes payments to
eligible rural electric utility companies and
those companies credit their residential
and community facility customers with
payments made from the program up to
a level of consumption. Those payments
result in a reduction of the unit cost of power
to residential and community customers.
The pre-PCE cost of electricity in rural
communities is almost always significantly
more than the electricity costs borne by
customers in Alaska’s urban areas. Residential
and community facility buildings and assets
in 193 communities see the benefits of PCE
credits.
AEA calculates the amount an eligible electric
utility is due based on a filing made by the
utility and issues monthly payments. The
PCE program staff also provides technical
assistance to utility clerks who need help
preparing and filing PCE reports. The PCE
disbursements are funded from the PCE
Endowment Fund. Alaska Statute (AS)
42.45.085 provides that five percent of the
PCE Endowment Fund’s three-year monthly
average market value may be appropriated
to the PCE program. In recent years, the five-
percent draw on the endowment has been
sufficient to fully fund PCE disbursements.
Fiscal year 2018 saw the enactment of
statutory changes that addresses how excess
PCE Endowment Fund earnings are to be
The Power Cost Equalization Program (PCE) was established in 1984 to
lower the cost of electrical power borne by rural residents and community
facilities to a level comparable to that paid by residents of Alaska’s larger
cities. AEA, along with the Regulatory Commission of Alaska (RCA),
administers the program that serves 82,000 Alaskans in 193 communities
that are primarily reliant on diesel fuel for power generation.
10 | 2022 AEA ANNUAL REPORT
used. These changes allowed the endowment fund earnings to
pay for PCE program administration costs fully and the earnings
could also contribute $30 million to the Community Assistance
Program and up to another $25 million for the Renewable Energy
Fund Program, Rural Power System Upgrade projects, and the
Bulk Fuel Revolving Loan fund.
During the 32nd Legislative Session, the Governor and the
Legislature approved a 50 percent increase to PCE payments
from 500 to 750 kilowatt-hours (kWh) helping rural Alaskans to
lower their cost of energy.
2022 AEA ANNUAL REPORT | 11
The cost of electricity for Alaska’s rural
residents is notably higher than for urban
residents. PCE lowers the cost of electric
service paid by rural residents. Ultimately
ensuring the viability of rural utilities and the
availability of reliable, centralized power.
Power Cost Equalization
750 kWh
RESIDENTIAL
Residential customers are
eligible for PCE credit up to
750 kWhs per month.
PCE highlights
$27.4M
FUNDS DISTRIBUTED
In Fiscal Year 2023, AEA disbursed
$27.4 million for payment of PCE
to rural electric utilities for the
benefit of rural communities.
The PCE program reduces the electric rates
paid by rural consumers to levels comparable
to those paid by consumers in Anchorage,
Fairbanks, and Juneau.
The program reimburses the utility for credits
it has extended to its customers. This happens
after the utility reports its sales and provides
a customer ledger to AEA.
AEA reviews the utility monthly report and
pays the utility based on rates calculated by
the state’s utility overseer, the RCA.
The RCA determines if a utility is eligible to
participate in the program and calculates the
rate that the PCE program reimburses each
eligible utility.
AEA determines the eligibility of community
facilities and residential customers and
provides reimbursement to the electric utility
for the PCE credits extended to customers.
As per AS 44.83.940, AEA produces
an annual PCE Statistical Report.
Community and utility data are based
on information submitted by utilities.
To view the report online, visit
www.akenergyauthority.org/pce
PCE Statistical Report
Golovin, Alaska
70 kWh
PUBLIC FACILITIES
Community facilities can receive
PCE credit for up to 70 kWhs per
month multiplied by the number
of residents in a community.
In rural Alaska, AEA constructs bulk fuel tank farms, diesel powerhouses, and electrical
distribution grids. Through circuit rider, emergency response, and training for operators and
utility managers, AEA provides the resources necessary to support the operation of these facilities.
Rural Energy
Rural Power Systems Upgrade
AEA’s Rural Power Systems Upgrade (RPSU) program
seeks to improve power generation in small Alaska
villages that are located off the electrical-grid system.
Upgrades range from complete powerhouse replacement
to minor maintenance and improvements. A project
may include efficiency improvements, powerhouse
upgrades or replacements, line assessments, demand-side
enhancements, heat recovery, and repairs to generation
and distribution systems. The Denali Commission is AEA’s
major federal funding partner, which requires a state
match of 50 percent for non-distressed communities or 20
percent for distressed communities.
RPSU also manages the State’s allocation through
the Environmental Protection Agency’s (EPA’s) Diesel
Emissions Reduction Act (DERA). Pending yearly funding
from Congress, states can apply for DERA funds based on
population. In addition to the state program, EPA also has
a tribal DERA program that awards funds competitively
nationwide. AEA uses DERA funds exclusively to replace
prime power diesel engines in rural Alaska. AEA selects
communities for engine replacement through the DERA
program based on current engine condition, redundancy,
efficiency, and engine eligibility. In Calendar Year 2022,
AEA was in construction of three RPSU powerhouse
replacement projects in Napaskiak, Nikolai, and Venetie.
Additional RPSU design work was completed for Rampart
and Nelson Lagoon. Engine replacement with DERA funds,
was completed in Chenega (two engines) and design
started in Grayling (two engines) and Akiachak (four
engines).
AEA has switched emphasis from full facility replacement
to improving operations and maintenance to maximize
the benefit to rural power systems. There are currently
20 active Maintenance and Improvement (M&I) projects,
which target high, return investment in eligible community
power systems. Typical projects include replacing old
switchgear and control systems, maximizing heat recovery,
and updating engine controls to improve efficiency and
sometimes replacing diesel gensets.
12 | 2022 AEA ANNUAL REPORT
The BFU program repairs
or upgrades fuel storage
facilities in communities
with less than 2,000
residents.
These facilities help
decrease the per-unit cost
of fuel by allowing the
community to purchase fuel
in bulk quantities.
Upgrading bulk fuel facilities
reduces the unit cost of
energy by replacing leaking
tanks and reducing the
risk of future tank and
equipment failure.Nunapitchuk, Alaska, Photo by STG Incorporated
2022 AEA ANNUAL REPORT | 13
Bulk fuel Upgrade
In rural Alaska, diesel fuel is largely used for
power generation and heating, while gasoline is
used for transportation. Most rural villages are
located along rivers or on the coast and get their
goods via barge, including heating fuel and fuel
for diesel-fired electrical generators. Delivery
is often limited by the season or the weather.
Barge fuel is delivered once or twice a year to
most communities.
Many of rural Alaska’s bulk fuel facilities were
built in the mid-1900s and are not compliant
with modern regulations. Yet they remain in
service until updated or replaced, posing risks to
personal safety and the environment.
AEA’s Bulk Fuel Upgrade (BFU) program repairs
or upgrades fuel storage facilities that help
lower the cost of fuel per unit by allowing the
community to buy fuel in bulk quantities. In
Calendar Year 2022, there were six full BFU
projects underway. In recent years, AEA has
switched its emphasis from bulk fuel facility
replacement to Maintenance and Improvement
(M&I) projects. Currently, 20 M&I projects are
planned or underway, which target high-return
investment in eligible community power
systems.
The RPSU program builds and retrofits
facilities in communities with less than
2,000 people.
Powerhouse upgrade projects replace
outdated, inefficient mechanical
systems with new electronically
controlled generator sets, providing
stable and reliable power.
The typical efficiency improvement in
diesel generation is between 10 and 20
percent.
Chignik Lake, Alaska
AEA provides soup to nuts technical assistance to rural utilities to ensure that
infrastructure lasts its full economic life, preventing catastrophic electrical
emergencies, and building community self-sufficiency. This helps assure safe,
reliable, operation of rural Alaska electric generation equipment in which
millions of dollars are invested.
Rural Training
AEA’s Rural Training program develops operators with the skills necessary to operate
their energy infrastructure and keep operators compliant with current industry
standards. In Calendar Year 2022, 36 operators from 33 communities trained in
Bulk Fuel, Person in Charge, and Power Plant Operations at the Alaska Vocational
Technical Center. AEA is pioneering the use of 3D imaging coupled with data from
every rural powerhouse to create new ways for operators to learn about their site’s
specific needs. AEA has converted some operation and maintenance manuals into
an electronic form that has been digitized into the 3D imagery of the powerhouse.
Training videos are also linked to the imagery. This allows an operator to easily find,
diagnose, and fix equipment in the powerhouse.
Circuit Rider and Technical Assistance
The Circuit Rider and Technical Assistance programs provide essential assistance
to reduce the number of emergency responses needed when there are power
outages in rural communities with a population between 20 and 2,000. Rural utility
operators and managers are instructed by AEA staff on the proper operations and
maintenance of their generation and distribution infrastructure. In Calendar Year
2022, Circuit Riders assisted eligible utilities over 390 times in providing remote
monitoring, training, technical consultation. On site assistance and minor repairs to
power systems were performed in 50 communities.
Electrical Emergency Assistance
AEA assists rural communities during extended power outages to reduce the
likelihood of death and property damage. In an electrical emergency, AEA assists the
utility in responding and restoring electricity transmission and generation. Financial
or technical assistance, including emergency repairs, may be provided. AEA
responds to a real or potential emergency situation before it becomes a disaster or
major loss. Engines, generators, and transformers may need to be purchased and/or
installed as part of an emergency response. In Calendar Year 2022, five emergencies
were declared.
14 | 2022 AEA ANNUAL REPORT
TRAINING VIDEOS ARE ON OUR YOUTUBE CHANNEL
https://www.youtube.com/@alaskaenergyauthority7923/videos
AEA provides soup to nuts technical assistance to rural utilities to ensure that
infrastructure lasts its full economic life, preventing catastrophic electrical
emergencies, and building community self-sufficiency. This helps assure safe,
reliable, operation of rural Alaska electric generation equipment in which
millions of dollars are invested.
AEA pioneers 3D imaging to understand rural powerhouse needs
Circuit Riders continues to update the Matterport 3D imaging of the rural powerhouse plants after
completing the inventory and assessment project. This assists them when speaking with local operators.
The above image shows several icons. These are Matter tags which when clicked on provide additional
information on the specific component, e.g. engine manual, procedure on how to change the fuel filter,
etc. The addition of Matter tags is a separate project aimed at converting the operations and maintenance
manuals into a digital interface.
2022 AEA ANNUAL REPORT | 15
Rural Training
AEA’s Rural Training program develops operators with the skills necessary to
operate their energy infrastructure and keep operators compliant with current
industry standards. In Calendar Year 2022, 36 operators from 33 communities
trained in Bulk Fuel, Person in Charge, and Power Plant Operations at the Alaska
Vocational Technical Center. AEA is pioneering the use of 3D imaging coupled with
data from every rural powerhouse to create new ways for operators to learn about
their site’s specific needs. AEA has converted some operation and maintenance
manuals into an electronic form that has been digitized into the 3D imagery of
the powerhouse. Training videos are also linked to the imagery. This allows an
operator to easily find, diagnose, and fix equipment in the powerhouse.
Circuit Rider and Technical Assistance
The Circuit Rider and Technical Assistance programs provide essential assistance
to reduce the number of emergency responses needed when there are power
outages in rural communities. In Calendar Year 2022, Circuit Riders assisted
eligible utilities over 390 times in providing remote monitoring, training, technical
consultation. Onsite assistance and minor repairs to power systems were
performed in 50 communities.
Electrical Emergency Assistance
AEA provides power-related electrical emergency assistance to rural communities.
Electrical emergency assistance encompasses risk to life or property due to power
failure. In Calendar Year 2022, five emergencies were declared.
Biomass
Biomass heat reduces diesel fuel use, keeps the money spent on
fuel (wood) within the community, and creates local jobs. AEA’s
biomass program has funded over 20 biomass woody heating
systems for schools and public buildings and provided technical
support for more than 50 systems. Along with the United States
Forest Service, the program has funded over 170 preliminary
studies to evaluate a community’s biomass potential. In 2022,
AEA hired a consultant to conduct additional feasibility studies
to get projects in the pipeline for development. This year the
team focused on developing a much needed pellet mill project in
Ketchikan to supply pellets for the region.
Hydroelectric
Alaska’s biggest source of renewable energy, hydroelectricity,
supplies more than 27 percent of the state’s electrical energy
in an average water year. About 51 utility-scale hydroelectric
projects are supported by AEA. The majority of Alaska’s existing
hydro projects are located in the Southeast and Southcentral
regions. Projects range from concepts to operational facilities.
AEA’s hydroelectric program improves efficiency and quality
in development, lowering the cost of construction, and
coordinating with state, federal, municipalities, tribal entities,
and private investors in analyzing, planning, and generally
assisting hydroelectric project development.
Hydroelectric power is Alaska’s largest
source of renewable energy, supplying
about 27 percent of the state’s electrical
energy in an average water year.
16 | 2022 AEA ANNUAL REPORT
Solar
Solar photovoltaic (PV) systems continue to gain popularity in
Alaska. These systems range from on and off-grid residential
to utility-scale PV. Northern latitudes often have impressive
solar generation in spring and fall due to clear skies, cool
temperatures, dry air, and bright, reflective snow. Solar PV
systems can actually exceed their rated output at these times.
In 2022, AEA’s Power Project Fund financed an 8.5-megawatt
Houston Solar Farm PV project on the Railbelt, and seven solar
projects were funded in Round 14 of the REF. AEA has also joined
the National Community Solar Partnership, which shares best
practices between states.
Wind
Alaska’s wind energy capacity has increased 400 percent since
2012. Today, wind energy contributes to 2.4 percent of the
state’s electrical production, and it is growing. This growth is
supported by AEA’s REF program and information shared among
wind energy producers and stakeholders. As of right now, REF
funding is being used to develop 18 wind projects in rural and
urban Alaska. AEA’s Alaska Wind Working Group meets quarterly
to discuss policy issues and funding needs to advance wind
energy. Additionally, AEA facilitates educational events, including
the wind-diesel and energy storage workshop, and assists
communities with evaluation and decision-making.
2022 AEA ANNUAL REPORT | 17
Run-Of-River Intake at South Fork Hydroelectric Plant, Eagle River, Alaska
Renewable Energy and Energy Efficiency
AEA’s renewable energy programs are central to Alaska’s clean energy economy.
The programs work with local governments, non-profits, and tribal organizations to
implement new energy solutions. They also provide technical assistance, funding,
and training to increase knowledge about cost-saving energy technologies.
An integral part of AEA’s energy efficiency and conservation outreach
is the Alaska Energy Efficiency Partnership (AEEP), a group of over
50 public, private, and nonprofit organizations that meet quarterly
to discuss energy efficiency and conservation efforts in Alaska.
Using information sharing and integrated planning, the group seeks
to improve the coordination of efforts to promote more energy
efficiency and energy conservation behaviors in Alaska. In 2022,
Partnership meetings focused on post-pandemic activities and
revamping efficiency. At quarterly meetings, members discussed
school efficiency, community weatherization, and outreach and
education.
AEA partnered in the annual Power Pledge Challenge, an initiative
from AK EnergySmart aimed at helping youth better understand
energy use. The program educates elementary and middle school
students in rural and urban Alaska on the basics of energy and the
benefits of energy efficiency and conservation at home and school.
Schools participate in monthly challenges such as developing
community energy profiles, creating energy saving public service
announcements, or calculating energy savings by switching to LEDs.
This year the program championed energy literacy and educated
1,124 students from 51 classrooms in 20 schools.
Alaska Energy Efficiency Partnership Power Pledge Challenge
Energy Efficiency and Conservation
Efficient production and consumption of energy saves costs, reduces demand, and are often the
lowest hanging fruit for energy solutions. It is available in every community in Alaska. AEA focuses
its energy efficiency program activities on commercial buildings, public buildings, industrial
facilities, and electrical efficiency. In 2022, AEA updated the Commercial Property Assessed Clean
Energy handbook to reflect the changes made to the program from House Bill 227. Additionally, AEA
organizes the collaborative multi-stakeholder group called the Alaska Energy Efficiency Partnership.
18 | 2022 AEA ANNUAL REPORT
The Alaska Legislature established the Village Energy Efficiency
Program (VEEP) in 2010 to reduce per capita energy consumption. For
the last several years, AEA leveraged federal State Energy Program
funds to meet this mission. In 2022, AEA released a VEEP Request for
Applications to fund efficiency programs. Grants totaling $600,000
were awarded to Gakona, Galena, Nenana, and Saint George with
$236,363 in community match. Since 2019, 41 VEEP projects have
been completed, 1,212 lights have been replaced, and 556,938
kilowatts (kWh) per year will be saved, for a 65 percent reduction
in energy consumption. Cost per kWh in these communities ranges
between $0.19–$1.00.
Village Energy Efficiency Program
Metlakatla Indian Community, Alaska
2022 AEA ANNUAL REPORT | 19
SIGN UP FOR VEEP PROGRAM NOTICES AND ANNOUNCEMENTS AT
https://list.state.ak.us/mailman/listinfo/aea-veep-notices
Through VEEP, AEA supported the Metlakatla Indian
Community in replacing outdoor lights with efficient light-
emitting diode (LED) models, which prevented a planned
shutdown of the lights due to reduced hydroelectric
generation capacity and resulted in annual energy savings
of about 25 percent. Additionally, the project supported
the training and development of the local workforce. In
2018, due to prolonged drought conditions that reduced
hydroelectric energy generation capacity, the local utility
shut off about half of its streetlights to conserve energy
and reduce costs. In the wake of this decision, Metlakatla
was selected through VEEP’s competitive application
process in 2019 to receive $50,000 in combined grant
funds from Wells Fargo and AEA to replace 61 high-
pressure sodium outdoor lights with LED models.
Metlakatla matched the grant with $12,165 of its funds to
complete the lighting retrofits. The retrofit has benefited
the community substantially. The new LED lights saved
$16,613, or about 25 percent, annual energy savings that
will offset retrofit costs within a few years. Further, the
retrofit saved essential outdoor lighting from being shut
down and improved the quality of light for Metlakatla
residents during perpetual winter darkness. The retrofit
also boosted local energy jobs.
VEEP Success Story:Keeping the Lights On
VIEW ALASKA’S ELECTRIC VEHICLE INFRASTRUCTURE IMPLEMENTATION PLAN ONLINE AT
https://www.akenergyauthority.org/alaskaneviplan
Electric Vehicles
20 | 2022 AEA ANNUAL REPORT
Through its Alaska Electric Vehicle Working Group (AKEVWG), AEA
made significant progress over the year in leading Alaska’s effort to
minimize barriers to EV adoption. AEA leads the AKEVWG, which is
comprised of members from across the state including the Alaska
Department of Transportation & Public Facilities, the Alaska Electric
Vehicle Association, electric utilities, EV owners, EV vendors,
municipalities, prospective charging sites, site hosts, universities,
and other stakeholders. The AKEVWG met quarterly and discussed
topics such as siting charging stations, climate considerations, power
requirements, etc. for publicly accessible charging locations.
With Volkswagen Settlement funds and State Energy Program funds,
AEA continued its progress to develop an EV fast-charging corridor
connecting Healy to Homer and Seward in 2022. Direct current fast
chargers (DCFC) were commissioned in Anchorage, Cantwell, and
Seward. DCFC sites in Chugiak, Cooper Landing, Healy, Soldotna,
and Trapper Creek will be commissioned in the summer of 2023 and
will lessen range anxiety. AEA also continues to pursue competitive
funding opportunities to expand Alaska’s EV fast-charging
infrastructure and community-based chargers throughout the state.
AEA is the lead agency for electric vehicle (EV) infrastructure deployment in Alaska. Following the passage of
the Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act, AEA has been
conducting public outreach with a variety of stakeholders including local agencies, utilities, and other interested
parties to inform Alaska’s plan for deploying EV infrastructure.
Alaska Electric Vehicle Working Group Volkswagen Settlement Fund EV Project Updates
NEVI Phases
Phase 1
Build out Alaska’s Alternative Fuel
Corridor
Phase 2
Build out Alaska’s Highway and
Marine Highway Systems
Phase 3
Install Charging Stations in Rural Hub
Communities
Phase 4
Urban and “Destination” Locations
2022 AEA ANNUAL REPORT | 21
As part of the BIL,
the National Electric
Vehicle Infrastructure
(NEVI) Formula Program
distributes $5 billion
over the next five years
(Fiscal Years 2022-2026)
to state departments of
transportation to build EV
chargers along highway
corridors to create a
convenient, reliable, and
affordable EV charging network nationwide. This infrastructure
will serve long distance EV travel along alternative fuel corridors
(AFCs). Through NEVI, Alaska will receive more than $52
million over five years to advance a statewide EV fast-charging
network. This program will adapt Alaska’s infrastructure
system to support reliable, equitable, and sustainable electric
transportation.
To receive the NEVI funds, Alaska was required to submit a
plan by August 1, 2022, demonstrating how the network will
be completed to meet requirements set by the United States
Department of Energy and U.S. Department of Transportation’s
Joint Office for EV Infrastructure Deployment. Alaska’s EV
Infrastructure Deployment Plan (The Plan) was developed by
AEA and the Alaska Department of Transportation and Public
Facilities (DOT&PF) with support from various stakeholders.
DOT&PF is the responsible recipient of Federal Highway
Administration (FHWA) Title 23 funds. The NEVI program funds
will be received by DOT&PF and administered by AEA. Together,
AEA and DOT&PF are working to make sure NEVI program funds
are used strategically, effectively, and efficiently.
The Plan, which was approved by the FHWA in September of
2022, addresses charging infrastructure deployment, existing
and future conditions, contracting, implementation, and
program evaluation, as well as documentation of state agency
coordination, stakeholder outreach, and public engagement.
EV charging placement across the state will be implemented in
phases to establish statewide connectivity. In early 2023, AEA
will release a Request for Applications to competitively select
site hosts for the first phase of NEVI program implementation.
This round of funding will be utilized to build NEVI compliant
charging stations along AFCs from Anchorage to Fairbanks.
National Electric Vehicle Infrastructure Program
$52M
Through the BIL NEVI
Formula Program,
Alaska will receive
more than $52 million
over five years.
DCFC stations will be
located approximately
50 miles apart along
the Alternative Fuel
Corridor and along
the road system and
marine highways.
Justice40 directs at
least 40 percent of
the benefits of the
program investments
will be distributed
to disadvantaged
communities.
50MI 40%
AEA contributes to the energy sector
by administering several funding
programs. In addition, AEA monitors
funding opportunities through Tribal
and Indian Energy loan programs and
the United States Department of Energy
(USDOE). AEA’s strong relationship with
the USDOE, awareness of funding, and
technical assistance available from
National Laboratories is of benefit to all
Alaskans.
Grants and loans
Houston Solar Farm, Alaska, Photo by Matanuska Electric Association
Power Project Fund
AEA oversees Power Project Fund (PPF) loan requests from qualified
applicants seeking low-interest loans. PPF enables local utilities,
local governments, or independent power producers to seek low-cost
financing for the development, expansion, or upgrade of electric
power facilities, including distribution, transmission, efficiency and
conservation, bulk fuel storage, and waste energy. PPF provides
a unique offering as a financing program that provides affordable
loan funds for small-scale energy projects, across all project phases,
including reconnaissance and feasibility studies. Loan terms are
generally set in correlation to a project’s useful life. Interest rates
on PPF loans are formula-driven and related to the 30-year taxable
municipal bond yield index, with a prevailing rate of 4.63 percent as
of January 23, 2023.
AEA Board Approves $4.9 Million Loan for
Alaska’s Largest Solar Project
AEA Board of Directors approved a $4.9 million PPF loan to
Energy 49 LLC to convert 45 acres in Houston, Alaska into
an 8.5-megawatt (MW)-rated photovoltaic (PV) solar array
making it the largest utility-scale PV solar installation in
the state.
The project, developed by Energy 49 LLC, a former
subsidiary of Renewable IPP, LLC, the owner and operator
of the Willow solar farm, will be an 8.5 MW ballasted
bi-facial PV solar array providing an amount of energy
equivalent to that needed to power approximately 1,400
homes. The purpose of the project is to expand renewable
energy production and augment further diversification of
energy resources in Southcentral Alaska.
The clean energy produced by the project will reduce
air quality emissions related to power generation while
simultaneously conserving those natural gas reserves in
the Cook Inlet.
VIEW THE PRESS RELEASE AT
https://www.akenergyauthority.org/pressreleases
22 | 2022 AEA ANNUAL REPORT
SIGN UP FOR REF EMAIL UPDATES AT
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2022 AEA ANNUAL REPORT | 23
The Renewable Energy Fund (REF) was
established in 2008 to help Alaskans
reduce and stabilize their cost of energy
through the development of viable
renewable energy projects. The program
is designed to produce cost-effective
renewable energy for heat and power,
accelerating the diversification of
community generation sources, which
in turn can increases resiliency, and
mitigate those negative externalities
incurred by those communities whose
heat and power is almost exclusively
powered via diesel fuel.
To date, REF has made 271 grants to
develop or construct renewable energy
projects statewide. There are now
over 100 operating projects built with
contributions from REF, collectively
saving more than 30 million gallons
of diesel each year. Annual renewable
energy generation increases each year
as more REF-funded projects become
operational. State funding has been
matched with hundreds of millions of
dollars from other sources to develop
these renewable energy projects.
In Fiscal Year 2022, AEA solicited
applications for REF Round 14. In
consultation with the Renewable Energy
Fund Advisory Committee (REFAC),
AEA recommended 27 projects for
funding. In June 2022, the Legislature
approved AEA’s recommendation and
appropriated $15 million for awards
to the recommended projects. AEA
is currently evaluating 31 funding
applications submitted for consideration
during REF Round 15. AEA’s consultation
with the REFAC is planned for early March
with a subsequent submission to the
Legislature of projects recommended
for funding in Fiscal Year 2023 planned
for late March. The REF grant program
sunsets on June 30, 2023. An extension of
its sunset date is being sought.
Renewable Energy Fund
Pillar Wind Farm, Kodiak, Alaska
$300M
STATEWIDE INVESTMENT
A total of $300 million has been
invested in renewable energy
projects statewide since the REF
program was established in 2008.
The REF program promotes
the statewide integration
of renewable energy within
Alaska’s energy portfolio.
All projects submitted for
REF funding are assessed
according to a robust, four-
stage evaluation process
that assesses applicant and
project eligibility, applicant
qualifications and experience,
economic feasibility, technical
feasibility, financial feasibility,
and matching funds and local
support.
The REF is available to the
following eligible applicants:
Electric Utilities with
valid CPCN
Independent Power
Producers
Local Governments
Other Governmental
Utilities
Tribal Councils
Housing Authorities
REF Highlights
p
p
p
p
p
p
BALANCE SHEETS June 30, 2022 June 30, 2021
Assets and deferred outflows of resources:
Restricted Investments securities and cash 1,048,505 1,243,953
Loans, net 27,058 26,011
Capital assets, net 385,307 396,079
Receivables and other assets 5,634 6,457
Total Assets 1,466,504 1,672,500
Liabilities and net position:
Liabilities
Bonds payable 45,925 69,199
Other bond liabilities 56 569
Payables and other liabilities 46,646 33,053
Total liabilities 92,627 102,821
Net Position 1,373,877 1,569,679
Total liabilities and net position 1,466,504 1,672,500
REVENUES, EXPENSES, & CHANGES IN NET POSITION June 30, 2022 June 30, 2021
Operating revenues:
Federal grants 10,211 8,575
Revenue from operating plants 13,507 22,657
State operating and capital revenues 4,461 3,922
Interest on loans 346 339
Other operating revenues 2,645 5,008
Total operating revenues 31,170 40,501
FY2022 FINANCIAL Highlights
24 | 2022 AEA ANNUAL REPORT
REVENUES, EXPENSES, & CHANGES IN NET POSITION (CONT)June 30, 2022 June 30, 2021
Operating Expenses:
Grants and projects 18,238 20,370
Power cost equalization grants 24,222 25,557
Plant operating 7,834 7,797
General and administrative 6,319 20,605
Provision for loan recovery (17) (33)
Loss on disposal of asset – –
Depreciation 12,305 12,356
State of Alaska appropriations and transfers ––
Other project expenses ––
Total operating expense 68,901 86,652
Operating loss (37,731) (46,151)
Investment Income, net (144,109) 151,983
Interest expense (1,568) (1,159)
State of Alaska reappropriations and transfers (12,395) 1,017,213
Capital contributions ––
Increase (decrease) in net position (195,803)* 1,121,886**
* *
NOTES REGARDING INCREASE (DECREASE) IN NET POSITION
*Net position decreased primarily due to unrealized investment losses in the Power Cost Equalization (PCE) Endowment fund
of ($143,842) and other funds ($267). Other contributing factors to the overall decrease was net operating losses ($39,299) and
($12,395) of net contributions made to the State of Alaska.
**In the Fiscal Year 2021 beginning net position/fund balance was restated to record revised amounts related to PCE sweep activity
due to the State of Alaska ($7,388) and revised amounts related to the general activity due to funds managed by Treasury ($2,239).
2022 AEA ANNUAL REPORT | 25
Board of Directors
J. DANA PRUHS
Chair, Public Member
ADAM CRUM
Commissioner, Alaska
Department of Revenue
BILL KENDIG
Vice Chair, Public Member
BILL VIVLAMORE
Public Member
RANDY ELEDGE
Public Member
JULIE SANDE
Commissioner, Alaska Department
of Commerce, Community, and
Economic Development
ALBERT FOGLE
Public Member
26 | 2022 AEA ANNUAL REPORT
Executive Team
CURTIS W. THAYER
Executive Director
AUDREY ALSTROM, PE
Director of Renewable Energy and
Energy Efficiency Programs
AMY ADLER
Acting Chief Financial Officer
TIM SANDSTROM
Chief Operating Officer
BYRAN CAREY, PE
Director of Owned Assets
BRANDY M. DIXON
Communications Director
ROBERT HAWKINS
Information Technology Director
MEGAN SCHMIDT
Human Resources Director
2022 AEA ANNUAL REPORT | 27
AEA provides energy solutions
that meet the unique needs of
Alaskans, now and in the future.
Alaska Energy Authority
813 W Northern Lights Blvd.
Phone: (907) 771-3000
Fax: (907) 771-3300
E-mail: info@akenergyauthority.org
www.akenergyauthority.org @alaskaenergyauthority @alaskaenergyauthority