HomeMy WebLinkAboutAlaska Energy Authority Organizational Presentation to the House Finance Subcommittee 01-30-2020-AREDUCING THE COST OF ENERGY IN ALASKA
Alaska Energy Authority
Curtis W. Thayer
Executive Director
Alaska Energy Authority
House Finance
Subcommittee
January 30, 2020
Who We Are
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.
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What We Do
Energy Planning –In collaboration with
local and regional partners, AEA provides
critical economic and engineering analysis
to plan the development of cost effective
energy infrastructure.
Grants and Loans –AEA provides loans to
local utilities, local governments, and
independent power producers for the
construction or upgrade of power
generation and other energy facilities.
Railbelt Energy –AEA owns the Bradley
Lake Hydroelectric Project and the Alaska
Intertie. These assets benefit Railbelt
consumers by reducing the cost of power.
Renewable Energy –AEA provides
renewable energy and energy efficiency
grants, analysis, and expertise to benefit
Alaskans. These include hydro, biomass,
wind, solar, and others.
Power Cost Equalization –The Power Cost
Equalization Program reduces the cost of
electricity in rural Alaska for residential
customers and community facilities.
Rural Energy –AEA constructs bulk fuel
tank farms, diesel powerhouses, and
electrical distribution grids in rural villages.
AEA supports the operation of these
facilities through circuit rider and emergency
response programs.
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Our Projects
AEA works with
its Alaska partners
and stakeholders to
provide reliable and
affordable energy
solutions.
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Bradley Lake Hydroelectric Project
Alaska Intertie
Bulk Fuel Upgrades
Rural Power System Upgrades
Rural Utility Assistance
Power Cost Equalization
Renewable Energy Fund Grants
Power Project Fund Loans
Alaska C-PACE
Alternative Energy
Energy Efficiency
Energy Project Development
Programs and Projects
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Bradley Lake Hydroelectric Project
Produces ~10% of Railbelt electricity, 4.5 cents/kWh
Benefits members of:
Chugach Electric Association
City of Seward
Golden Valley Electric Association
Homer Electric Association
Matanuska Electric Association
Municipal Light & Power
Battle Creek Diversion Project:$47 million, will add ~10% energy
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Alaska Intertie
7
170 miles from Willow to Healy
Allows Golden Valley Electric
Association (GVEA) to connect to
and benefit from lower cost power
Improves reliability within Railbelt
system
Operated by AEA and Railbelt
utilities
$40 million savings for GVEA in
Fiscal Year 2019
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Bulk Fuel TankFarm Upgrades
Code compliant fuel
storage facilities
Prevention of spills and
contamination
Reduction of fuel cost by
allowing the community to
purchase bulk quantities
118 projects completed
since 2000
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Rural PowerSystem Upgrades
9
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Improving power system
efficiency, safety, and reliability
Building code compliant
facilities to provide stable and
reliable power
~10% to 20% efficiency
improvement in diesel
generation
86 projects completed
since 2000
Rural Utility Assistance
103
Communities received circuit
rider and rural utility worker
assistance in Fiscal Year 2018
38
Communities received
training in Fiscal Year
2018
6
Communities assisted
with electrical emergencies
in Fiscal Year 2018
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110History –Established in 1985, the Power Cost Equalization
(PCE) Program provides electric power to rural residential
customers and community facilities at costs similar those in
Anchorage, Fairbanks, and Juneau
PCE Endowment Fund –Created and capitalized in
Fiscal Year 2001, the $1.1 billion PCE Endowment Fund
is managed by the Department of Revenue
Calculation of PCE Rate –The Regulatory
Commission of Alaska determines the
effective rate based on rural utility
expenses and power sales
Power Cost Equalization Program
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PCE Impact
194
Communities
Served
$27 Million
Disbursed in
Fiscal Year 2018
Supported by
AEA Rural Utility
Assistance
Web Portal
to Increase
Accuracy
$
Renewable Energy Fund
$268 million invested in the Renewable
Energy Fund (REF) by the State
Boosted renewable energy market in Alaska
Leveraged hundreds of millions of federal
and private dollars
90 operational projects, 30 in
development
Displacing ~30 million diesel equivalent
gallons annually
~$74 million in fuel savings in 2017
Power Project FundLoan Program
$27.5 million committed or disbursed for 20 loans
$10.7 million uncommitted
Flexible loan program
Covers all aspects of supply side system
Relies on unique, in-house technical expertise for evaluation of loan viability and regulatory compliance
Loan applications are vetted for economic and finance viability
Critical resource in shift from grant
funded to debt financed energy projects
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Alaska C-PACE
Adopted by over 20 states, Commercial
Property Assessed Clean Energy (C-PACE)
is an effective financing program tool to
attract private capital for energy upgrades
In 2017, legislation was passed to develop
a C-PACE program in Alaska
AEA is leading an ad hoc group of
stakeholders to initiate programs in
municipalities and boroughs statewide
Under the C-PACE model, debt associated
with doing the improvements is repaid via
a line item on local tax assessments
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Alternative Energy and Energy Efficiency
Biomass
AEA’s biomass program
supports the construction
of wood-fired boilers using
local fuels that provide
heat for public facilities.
Energy Efficiency
AEA focuses its energy
efficiency programs on
commercial buildings,
public buildings, industrial
facilities, and electrical
efficiency.
Hydroelectric
In addition to Bradley Lake,
AEA continues to analyze,
develop, construct, and
fund hydroelectric projects
throughout Alaska.
Wind
AEA supports the
development and
construction of wind
projects across Alaska –
from the Railbelt Grid to
rural villages.
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AEA Org Chart
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AEA FY2021 Budget (thousands)
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AEA FY2021 Capital Budget (thousands)
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Unaudited Financial Highlights (thousands)
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Unaudited Financial Highlights (thousands)
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PCE Endowment History (thousands)
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AEA provides energy solutions
to meet the unique needs and
opportunities of Alaska’s rural
and urban communities.
REDUCING THE COST OF ENERGY IN ALASKA
SAFE,
RELIABLE, &
AFFORDABLE
ENERGY
SOLUTIONS
ALASKA ENERGY AUTHORITY
813 West Northern Lights Blvd.
Anchorage, Alaska 99503
Phone: (907) 771-3000
Fax: (907) 771-3044
Toll Free (888) 300-8534
akenergyauthority.org
For more information, please contact AEA Executive Director Curtis W. Thayer
REDUCING THE COST OF ENERGY IN ALASKA