HomeMy WebLinkAboutRes. 2021-03 Investigate and Develop Strategic Plan for Railbelt Assets 2021
AEA Resolution No. 2021-03
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ALASKA ENERGY AUTHORITY
RESOLUTION NO. 2021-03
RESOLUTION OF THE ALASKA ENERGY AUTHORITY
TO INVESTIGATE AND DEVELOP A STRATEGIC PLAN FOR RAILBELT ASSETS
WHEREAS, 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; and
WHEREAS, AEA owns the Alaska Intertie and the Bradley Lake Hydroelectric
Project (Bradley Lake Project or Project), which includes the SSQ Transmission Line.
These assets benefit Railbelt consumers by reducing the cost of power; and
WHEREAS, the Bradley Lake Project located near Homer, Alaska with an
installed capacity of 120 megawatts, is the largest hydroelectric project in the state,
providing electric power to the Railbelt utilities from the Kenai Peninsula to
Fairbanks. The Bradley Lake Project generates ten percent of the total annual power
used by Railbelt utilities and provides some of the lowest-cost power in Alaska; and
WHEREAS, the participants in the Bradley Lake Project have approved the
investigation of further expansion opportunities associated with the Project; and
WHEREAS, the Alaska Intertie transmission line is a 170 -mile long, 345kV
transmission line between Willow and Healy that is owned by AEA and operates at
138 kV. The Intertie interconnects Golden Valley Electric Association (GVEA), the
regulated utility that serves areas north of the Alaska Range, with southcentral
Alaska utilities. As an integral part of the interconnected Bulk Electrical System
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(BES) for the Railbelt region, this AEA-owned asset transmits Bradley Lake and
economy power north into the GVEA system. Although power generally flows
north, the line is also available for GVEA to transfer energy south if an emergency
situation finds the Cook Inlet region short of electric power; and
WHEREAS, the SSQ Line is 39 miles long, and operates at 115 KV capacity,
and was purchased as part of the Bradley Lake project as required project work to
provide better cost-alignment for capacity upgrades benefiting Alaska ratepayers.
The transmission path for energy produced by the Bradley Lake Project travels
initially through HEA’s transmission system, interconnecting with the AEA-
purchased SSQ Line, continuing on through the CEA/MEA transmission system, the
Alaska intertie and finally ending in the GVEA service territory. The alignment of
utility interests related to capacity upgrades facilitates joint planning and ultimately
lower costs paid by Railbelt ratepayers; and
WHEREAS, AEA, as the State’s energy office, should continue developing
energy policy in furtherance of its mission of reducing the cost of energy in Alaska
that introduces renewable power to the Railbelt grid when the life-cycle costs of
doing so are shown to be an affordable, cost-effective and secure energy option.
WHEREAS, the State has invested billions of dollars in Anchorage,
Matanuska-Susitna Valley, and Fairbanks to reduce the cost of energy, and
hundreds of millions of transmission upgrades still need to be completed to
provide redundant, reliable electric service meeting the standards set forth in the
reliability standards currently in place for the Railbelt BES; and
WHEREAS, the Bradley Lake project, as a mature asset in the Railbelt region
of the state, has various expansion opportunities likely to result in low cost, clean,
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affordable energy for generations of Alaskans and should be explored without
delay; and
WHEREAS, as the owner of significant Railbelt generation and transmission
assets, AEA ensures that sound public policy and energy initiatives maximize
benefits to the Railbelt ratepayers; and
WHEREAS, a strategic plan addressing the least-cost options associated
with the authority-owned assets would be in furtherance of AEA's mission.
NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY
AUTHORITY AS FOLLOWS:
1) AEA will work collaboratively with Chugach Electric Association,
Golden Valley Electric Association, Homer Electric Association, and
Matanuska Electric Association to prepare a strategic plan addressing
the costs and benefits associated with :
a. Transmission upgrades addressing capacity, reliability and
redundancy;
b. Asset ownership options that meet the long-term needs of the
interconnected Bulk Electric System (BES); and
c. The introduction of additional renewable energy options to the
Railbelt.
2) AEA is authorized to pursue opportunities that will benefit the
ratepayers. This may include upgrading assets, purchasing additional
Railbelt assets, divesting of assets and exploring/identifying viable
renewable energy projects for interconnections to the BES . The
Executive Director shall report back to the Board and provide
recommendations for their consideration.
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3)The Executive Director of the Authority is hereby authorized to take such
actions as may be necessary or convenient to carry out the purposes of
this resolution in the name of and on behalf of the Authority.
4)This Resolution shall become effective immediately upon its passage and
approval.
Dated and ANCHORAGE, ALASKA ON THIS 12TH DAY OF August, 2021.
____________________________________
J.Dana Pruhs, Chair
______________________________________
Curtis W. Thayer, Secretary
CORPORATE SEAL