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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 Alaska Energy Authority Page 2 of 4 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 Page 3 of 4 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. Zk '('- � 'L' Curtis W. Thayer, Secretary (rT"'x AP apoRAp 0' - CIO < (�,. - 4 E'jkL+ 19�a.• ' Alaska Energy Authority Page 4 of 4