HomeMy WebLinkAboutAEA Board Minutes Sep 21 2023Alaska Energy Authority
BOARD MEETING MINUTES
Thursday, September 21, 2023
Anchorage, Alaska
1. CALL TO ORDER
ALASKA
ENERGY
AUTHORITY
Chair Pruhs called the meeting of the Alaska Energy Authority to order on September 21, 2023, at
8:30 am. A quorum was established.
2. ROLL CALL BOARD MEMBERS
Members present: Chair Dana Pruhs (Public Member); Vice -Chair Bill Kendig (Public Member);
Albert Fogle (Public Member); Julie Sande (Commissioner DCCED); Adam Crum (Commissioner
DOR); Bill Vivlamore (Public Member); and Randy Eledge (Public Member).
Commissioner Sande indicated that she has multiple obligations today and will leave the meeting
for a period of time and then return to the meeting. Commissioner Sande advised that Deputy
Commissioner Micaela Fowler is attending and will vote on her behalf.
3. AGENDA APPROVAL
MOTION: A motion was made by Vice -Chair Kendig to approve the agenda. Motion
seconded by Mr. Fogle.
The motion to approve the agenda passed without objection.
4. PRIOR MINUTES —August 2, 2023
MOTION: A motion was made by Vice -Chair Kendig to approve the prior minutes of August
2, 2023. Motion seconded by Mr. Fogle.
Mr. Eledge asked if the year 2033 was correct as indicated on page 10, within the third paragraph
of Item K. Curtis Thayer, Executive Director and Secretary -Treasurer, stated the year was correct.
There were no other comments or questions.
The motion to approve the minutes of August 2, 2023 passed without objection.
S. PUBLIC COMMENTS (2 minutes per person)
There were no members of the public online or in -person who requested to comment.
6. NEW BUSINESS — None
813 W Northern Lights Blvd, Anchorage, AK 99503 • Phone: (907) 771-3000 • Fax: (907) 771-3044 • Email: info@akenergyauthority.org
7. OLD BUSINESS - None
8. DIRECTOR COMMENTS
A. Responses to Board Questions from September Board Meeting
Mr. Thayer noted that the information clarifies and addresses the questions regarding the NEVI
plan.
B. Governor's State Energy Security Task Force Update (August Meetings)
Mr. Thayer provided the update on the Governor's Alaska Energy Security Task Force (AESTF). He
reviewed the six subcommittees and noted they have been meeting individually, as well as
collectively. He reviewed the current timeline for the recommendations, the public comment
period, AESTF voting, and final submittal to the Governor and the Legislature on December 1,
2023. All of the information presented is on the website. Mr. Thayer discussed the significant
amount of time spent by the AESTF and the subcommittees. He emphasized that AEA staff have
contributed additional time to the planning and organizing effort. Staff and the contractor have
attended all of the subcommittee meetings and are providing support.
C. Railbelt Owned Assets Update
Mr. Thayer reviewed the quarterly update of the Railbelt Owned Assets; Alaska Intertie, Bradley
Lake Hydroelectric Project, and rural transmission. Mr. Thayer discussed the recent trips with 11
legislators and others to Bradley Lake. He provided information regarding AEA's ownership of old
rural transmission tielines and the process to transfer and dispose of the lines within the next six
months.
D. Dixon Diversion Project
Mr. Thayer discussed the status of the Dixon Diversion Project and memorandum included in the
packet. He reviewed the project timeline.
E. Hydro Update
Mr. Thayer gave an overview of the Hydroelectric Program Update included in the packet. He
reviewed the status and funding of each of the projects.
F. IIJA / IRA Grant Funding Update
Mr. Thayer informed that he has been providing weekly reports to members. He indicated that
the 80-page Solar For All application due date has been extended to October 12.
G. Community Outreach
Mr. Thayer noted that the community outreach information lists the dates and topics of previous
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events, as well as this year's remaining 19 scheduled events.
H. Articles of Interest
Mr. Thayer stated that the Articles of Interest are in the packet on pages 35 through 96.
Mr. Fogle referenced a previous article of interest concerning the liquefied natural gas (LNG)
imported to Alaska to compensate for the energy production deficit. He asked if Mr. Thayer is
helping to facilitate conversations regarding the LNG import or how to look for more gas in the
Inlet. Mr. Thayer indicated that he is not facilitating conversations. He explained those
conversations are between Enstar, the utilities, and the Governor. Mr. Thayer noted that he has
been invited to a public luncheon with Enstar and legislators outlining Enstar's drivers and options.
Mr. Fogle inquired if there is a way AEA can assist with the discussions or ideations. Mr. Thayer
explained that there are established private entity nondisclosure agreements (NDAs) and that AEA
has not been invited to assist.
Mr. Fogle asked if AEA could potentially discuss with Enstar that a long-term solution might be
Susitna-Watana. Mr. Thayer commented that Enstar and all of the utilities are supportive of the
Susitna-Watana project. The less natural gas the electrical utilities use to generate electricity
means more natural gas in the long-term to provide for home heating.
Vice -Chair Kendig requested clarification for the amount of generation that is expected from the
100 MW solar and wind facility capability. Mr. Thayer noted the expected generation is
approximately 30%. The Battery Energy Storage Systems (BESS) are also being installed to help
with short-term regulations. However, there is no current technology for long-term storage. The
current technology is unable to store renewable energy in July and use it in October. Mr. Thayer
discussed that the Regulatory Commission of Alaska (RCA) has been conducting a series of public
meetings on renewables and the cost of renewables. He will compile the information for Board
members.
Chair Pruhs requested staff to conduct a study that clearly delineates the true benefits and the
direct relationships to the consumer of including the current forms of renewables and that clearly
delineates the effects to the baseline requirements that the utilities have to pay. Mr. Thayer
advised that the University, the utilities, AEA, and National Renewable Energy Laboratory (NREL)
have participated in a study which is scheduled to be released in December. Mr. Thayer noted that
he will attempt to acquire an early draft of those findings.
Vice -Chair Kendig noted the importance of increasing the longevity of the battery systems to days
or months, rather than the current assistance based in hours.
Mr. Eledge requested that the study include the component of the correlation between the
renewables and the capital cost of batteries.
I. Next Regularly Scheduled AEA Board Meeting Wednesday, October 25, 2023
Alaska Energy Authority
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MOTION: A motion was made by Vice -Chair Kendig to go into executive session to discuss
confidential matters related to Fiscal Year 2025 budget and Owned Assets Strategic Review;
that the immediate disclosure of which would have an adverse impact on the Authority.
This is supported by the Open Meetings Act, AS 44.62.310, which allows a board to consider
confidential matters in executive session. In this case, the board believes that these are
subjects which would have an adverse effect upon the finances of AEA and are protected
by law, due to rules protecting personal privacy and certain business information. Motion
seconded by Mr. Fogle.
Vice -Chair Kendig advised that he has a conflict for the Owned Assets Strategic Review section of
Executive Session, and he will not attend that portion. Chair Pruhs acknowledged the potential
conflict.
A roll call was taken, and the motion to go into executive session passed unanimously.
9. EXECUTIVE SESSION: 9:10 a.m. - To discuss confidential financial matters, the
immediate knowledge of which would have an adverse effect on Alaska Energy Authority:
FY25 budget update
• Owned Assets Strategic Review
The Board reconvened its regular meeting at 10:57 am. Chair Pruhs advised that the Board did not
take any formal action on matters discussed while in Executive Session.
10. BOARD COMMENTS
Mr. Fogle thanked Mr. Thayer and staff for compiling the information in an effective format.
Chair Pruhs expressed appreciation to staff for their time and effort directed at the many different
issues and at the extensive energy project opportunities.
11. ADJOURNMENT
There being no further business of the Board, the AEA meeting adjourned at 11:00 am.
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