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HomeMy WebLinkAbout2024-10-22 AEA Agenda and docs 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG Alaska Energy Authority Board Meeting October 22, 2024 9:00 am AGENDA Dial 1 (888) 585-9008 and enter code 212-753-619# Public comment guidelines are below. 1. CALL TO ORDER 2. ROLL CALL BOARD MEMBERS 3. AGENDA APPROVAL 4. PRIOR MINUTES – September 10, 2024 5. PUBLIC COMMENTS (2 minutes per person) see call in number above 6. COMMITTEE REPORTS - NONE 7. OLD BUSINESS – A. Battery Energy Storage Systems (BESS) Service Agreements i. Resolution 2024-13 – Authorizing Purchase from Alaska Electric & Energy Cooperative of Battery Energy Storage System (BESS) or Related Services ii. Resolution 2024-14 – Authorizing the Purchase from Chugach Electric Association of Battery Energy Storage System (BESS) or Related Services iii. Resolution 2024-15 – Authorizing the Purchase from Golden Valley Electric Association of Battery Energy Storage System (BESS) or Related Services iv. Resolution 2024-16 – Authorizing the Purchase from Matanuska Electric Association of Battery Energy Storage System (BESS) or Related Services B. Board Meeting Schedule 8. NEW BUSINESS – A. Alaska Energy Authority 2024 DRAFT Financial Statements B. Resolution 2024-17 – Renewable Energy Certificates 9. DIRECTOR COMMENTS A. Response to Board Question B. Bradley Lake Update and Video C. GRIP 3 Update D. SSQ Line Update E. Railbelt Transmission Organization (RTO) Update F. Power Project Fund (PPF) Loan Update G. Power Cost Equalization (PCE) Update H. Rural Update I. Renewables Update J. Navision Update K. Governor Eklutna Decision L. FY25 Statutorily Required Reports Schedule M. Community Outreach N. Articles of Interest O. Next Regularly Scheduled AEA Board - Thursday, January 23, 2025 at 9:00 am Alaska Energy Authority Page 2 of 2 10. EXECUTIVE SESSION – Discuss confidential financial matters related to the FY26 budget 11. BOARD COMMENTS 12. ADJOURNMENT Public Comment Guidelines Members of the public who wish to provide written comments, please email your comments to publiccomment@akenergyauthority.org by no later than 4 p.m. on the day before the meeting, so they can be shared with board members prior to the meeting. On the meeting day, callers will enter the teleconference muted. After board roll call and agenda approval, we will ask callers to press *9 on their phones if they wish to make a public comment. This will initiate the hand-raising function. We will unmute callers individually in the order the calls were received. When an individual is unmuted, you will hear, “It is now your turn to speak.” Please identify yourself and make your public comments. 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG Alaska Energy Authority BOARD MEETING MINUTES Tuesday, September 10, 2024 Anchorage, Alaska 1. CALL TO ORDER Executive Director and Secretary-Treasurer Curtis Thayer called the meeting of the Alaska Energy Authority to order on September 10, 2024, at 9:01 am. 2. ROLL CALL BOARD MEMBERS Members present: Clay Koplin (Public Member); Duff Mitchell (Public Member); Adam Crum (Commissioner DOR (Arrived 11:10 am)); Julie Sande (Commissioner DCCED); Ingemar Mathiasson (Public Member); Jenn Miller (Public Member (Arrived 1:00 pm)); Robert Siedman (Public Member); and Tony Izzo (Public Member). A quorum was established. 3. AGENDA APPROVAL - None 4. PRIOR MINUTES – June 20, 2024 MOTION: A motion was made by Mr. Siedman to accept the prior minutes of June 20, 2024. Motion seconded by Mr. Mitchell. Mr. Mitchell noted that the members voting on this motion did not attend the June 20, 2024 meeting. A roll call was taken, and the motion to accept the minutes of June 20, 2024 passed unanimously, with Commissioner Crum and Ms. Miller absent. 5. PUBLIC COMMENTS (2 minutes per person) There were no members of the public online or in-person who requested to comment. 6. WORKING SESSION A. Ethics Training Matthew Stinson from the Department of Law presented “Ethics Act Training” to the Board. B. AEA Overview Curtis Thayer and AEA staff presented AEA Overview presentation to the Board. Alaska Energy Authority Page 2 of 14 C. Share Point Board Access Jennifer Bertolini, AEA Executive Assistant, presented SharePoint Board Access to the Board. Lunch Break at 12:04 pm; Reconvened at 1:00 pm. 7. COMMITTEE REPORTS - None 8. OLD BUSINESS - None 9. NEW BUSINESS A. Resolution 2024-05 Amending AEA Bylaws MOTION: A motion was made by Mr. Siedman to adopt Resolution 2024-05, adopting changes to the AEA Bylaws. Motion seconded by Mr. Koplin. Mr. Thayer requested outside counsel David Grossklaus, Dorsey & Whitney, and AEA counsel Mark Billingsley to comment for discussion purposes on the amendments to the Bylaws contained within Resolution 2024-05. Mr. Grossklaus reviewed the basis of the Bylaws and gave an overview of each of the articles. He discussed the rules for election of the Chair and Vice Chair as shown in Exhibit A. Commissioner Sande expressed her apprehension regarding the specification of quarterly meetings. She requested additional information regarding the change to conduct regular quarterly meetings rather than regular monthly meetings. Mr. Thayer explained that research on other state agencies and corporations revealed that every corporation, except for Alaska Industrial Development and Export Authority (AIDEA), conduct quarterly meetings. He noted that four meetings are the minimum and that special meetings remain subject to the call of the Chair or the Board. Mr. Grossklaus discussed that the number of meetings is dependent on the workload. He recognizes that the Board may need to utilize special meetings and meet more often initially. Furthermore, the subcommittees will meet separately from the full Board. Mr. Billingsley commented on the concern of noncompliance with the Bylaws if the Bylaws mandate monthly meetings and fewer meetings are conducted. Mr. Siedman commented that quarterly meetings have worked well during his state agency experience. He noted that additional meetings were called when needed. Mr. Mitchell expressed support for the Bylaws and remarked that special meetings can be conducted when necessary. Mr. Grossklaus noted that the word “members” is used twice in Article IV. Meetings, Section 3. Special Meetings. The word “members” will be changed to the word “directors” respectively. Alaska Energy Authority Page 3 of 14 Commissioner Crum highlighted Exhibit A and discussed his recent experience at the Alaska Permanent Fund Corporation regarding election rules. He noted there was no secret ballot and the nomination process occurred during the meeting. Commissioner Crum asserted that if the proposed AEA Bylaws are adopted, then it will be necessary to waive the procedures of seven days prior notice and 72 hours open for nominations for the Chair and Vice Chair for elections to proceed today. Commissioner Crum suggested that Chair and Vice Chair elections could be held today prior to adopting the changes to the Bylaws. Mr. Billingsley agreed that holding Chair and Vice Chair elections prior to adopting the changes to the Bylaws would be proper. Mr. Izzo expressed support for the amended Bylaws, including the minimum quarterly meetings and the flexibility to meet more frequently when needed. Ms. Miller expressed support for the amended Bylaws. She suggested that the nominations for Chair and Vice Chair could occur today and the voting on the nominations could occur during an October meeting. Mr. Koplin expressed support for regular quarterly meetings. Mr. Mitchell asked if the Bylaws give the AEA Board the authority, discretion, and leeway to establish additional subcommittees that are not currently outlined. Mr. Billingsley explained that a time-certain ad hoc committee could be created by the Chair and a majority vote without amending the Bylaws. Mr. Grossklaus agreed, and noted that an amendment to the Bylaws is necessary to create a permanent committee. There were no other comments. MOTION: A motion was made by Mr. Mitchell to table Resolution 2024-05 until after the elections. Motion seconded by Mr. Siedman. A roll call was taken, and the motion to table Resolution 2024-05 passed unanimously. B. Election of Officers Mr. Thayer reviewed the rules for today’s election of Chair and Vice Chair. MOTION: A motion was made by Mr. Izzo to nominate and elect Mr. Koplin as Chair. Motion seconded by Mr. Duff. No other nominations for Chair were submitted. A roll call was taken, and the motion to elect Mr. Koplin as Chair passed unanimously. Alaska Energy Authority Page 4 of 14 Mr. Thayer turned the meeting over to Chair Koplin. MOTION: A motion was made by Mr. Izzo to nominate and elect Mr. Siedman as Vice Chair. Motion seconded by Mr. Siedman. MOTION: A motion was made by Chair Koplin to nominate and elect Mr. Mitchell as Vice Chair. Motion seconded by Mr. Mitchell. No other nominations for Vice Chair were submitted. Chair Koplin requested members to complete the secret ballot and return it to Mr. Thayer. The motions for the Vice Chair nominations were tied. Mr. Izzo commented that it is important to him that the Chair and the Vice Chair are producing or transmitting power. He reiterated his nomination of Mr. Siedman for Vice Chair. Ms. Miller requested that the nominees for Vice Chair comment on their key priorities and their reasons for wanting to serve as Vice Chair. There was no objection. Mr. Mitchell commented on his experience over the last 20 years with power development, including the Federal Energy Regulatory Commission (FERC) process. He noted that Alaska includes members of Alaska Power Association (APA), American Public Power Association (APPA), and Independent Power Producers (IPP). Mr. Mitchell discussed that before joining AEA’s Board, he resigned from any officer and executive director position with APPA. Mr. Mitchell stated that he has worked well with Mr. Siedman during their previous experience at the NHA Legislative Affairs Committee. Mr. Mitchell highlighted his experience and assistance with the IGA tax credits in D.C. He indicated that he has been involved with more than just producing assets that the AEA Board would encounter. Mr. Mitchell expressed his willingness to serve as Vice Chair. Mr. Siedman expressed his willingness to serve as Vice Chair. He discussed his almost 20 years of experience in the energy field. He believes his work at large hydroelectric facilities along the Columbia River and work for the U.S. Army Corps of Engineers has given him a breadth of knowledge regarding renewables. Mr. Siedman noted that he has been in Southeast Alaska for eight years, which has the second largest transmission system in the state. He emphasized the challenges, understanding, and political will of operating a small grid that joins three communities. Mr. Siedman stated that he has nothing against Mr. Mitchell. Mr. Siedman believes Chair Koplin will do an amazing job and believes he could do a good job as Vice Chair. Mr. Mathiasson commented for clarity that this election is being conducted under the old Bylaws, which do not describe how elections are to be held. The Board is choosing to conduct the election under reasonable procedures similar to the new Bylaws, but are not bound by the new Bylaws. Chair Koplin discussed that the rationale for his nomination contemplated the representation between utilities and independent power producers regarding Railbelt and other issues. Alaska Energy Authority Page 5 of 14 Mr. Izzo remarked that considering the previous comments, he may have nominated Ms. Miller for Vice Chair because she is an outstanding representative and problem solver who can complete a power generating project. Mr. Izzo commented that he has nothing against Mr. Mitchell, and feels obligated to follow up that there is a tremendous amount of tension with APA members. Mr. Izzo expressed his concern, and would like the AEA Board to get a clean start. There were no other comments. Chair Koplin requested members to revote. The second vote on the motions for the Vice Chair nominations were tied. Chair Koplin asked Mr. Grossklaus if nominations for Vice Chair can be reopened. Mr. Grossklaus commented that decision is up to the Board. The Board could reopen the nomination process. He recommended that the Board take one more vote before reopening the nomination process. Chair Koplin requested members to revote. The third vote on the motion to elect Mr. Mitchell as Vice Chair passed with four votes for Mr. Mitchell, three votes for Mr. Siedman, and one write-in vote for Ms. Miller. Chair Koplin returned to Item 9A. MOTION: A motion was made by Vice Chair Mitchell to reopen Resolution 2024-05. Motion seconded by Mr. Mathiasson. A roll call was taken, and the motion to reopen Resolution 2024-05 passed unanimously. MOTION: A motion was made by Vice Chair Mitchell to accept Resolution 2024-05, the amended Bylaws, and include the changes discussed by Mr. Grossklaus in today’s meeting. Motion seconded by Commissioner Crum. A roll call was taken, and the motion passed unanimously. C. Resolution 2024-06 Banking Services Resolution Chair Koplin requested Mr. Thayer provide an outline of Resolution 2024-06. Mr. Thayer reported that AEA released a competitive request for proposal (RFP) for new banking and custodial services. Two banks responded, and First National Bank Alaska (FNBA) was selected. Resolution 2024-06 authorizes the banking services with FNBA, and authorizes Mr. Thayer and Pam Ellis, AEA Controller, as the primary signers on the bank accounts. Mr. Thayer noted that he and Ms. Ellis are the primary signers of AEA’s current accounts at Key Bank. The total cost of the FNBA contract is not to exceed $250,000 per year. He discussed that there is upwards of Alaska Energy Authority Page 6 of 14 approximately $80 million on deposit across 16 accounts, including repurchasing accounts. Mr. Thayer explained that some of the interest earned on the accounts is returned to the State of Alaska per statute. MOTION: A motion was made by Vice Chair Mitchell to accept Resolution 2024-06 Banking Services Resolution. Motion seconded by Mr. Siedman. A roll call was taken, and the motion to approve Resolution 2024-06 passed, with Ms. Miller absent. D. Resolution 2024-07 Federal Grant Awards Chair Koplin requested Mr. Thayer discuss Resolution 2024-07. Mr. Thayer explained Resolution 2024-07 creates a policy that requires AEA Board approval to apply for and accept grants that are greater than $10 million. The previous AEA Board provided input to this resolution. However, they chose not to advance the resolution, since the new Board was to be created. Mr. Thayer explained that all federal awards must obtain federal receipt authority from the Office of Management and Budget (OMB), the State Legislature, and the Governor. MOTION: A motion was made by Commissioner Crum to approve Resolution 2024-07 requiring AEA Board approval to apply for and accept federal grants over $10 million. Motion seconded by Mr. Siedman. Commissioner Crum requested to add language that the proposed grant applications are directly submitted to the Budget and Audit Committee, as well as to the full Board. Mr. Siedman agreed with Commissioner Crum. He asked for counsel’s opinion if this policy is in line with best practices. Mr. Billingsley noted that he has not researched the practices of other agencies. Mr. Grossklaus commented that he is also unaware of other agencies practices. He believes the proposed resolution is an appropriate practice for these purposes. Mr. Siedman noted that as the second of the motion, he would be willing to entertain an amendment. Commissioner Crum requested a friendly amendment to the motion, adding that the Budget and Audit Committee is notified of any applications going forward. The friendly amendment was seconded. There was no objection. Mr. Thayer requested clarification that the friendly amendment should be inserted as follows within the first sentence of Section 1: Application for, and acceptance, of all grants more than $10,000,000 shall require notification to the Budget and Audit Subcommittee, as well as requiring AEA Board approval. Alaska Energy Authority Page 7 of 14 Commissioner Crum agreed. There was no objection to the friendly amendment. He commented that this resolution was discussed with the previous Board. It provides a clean process for the higher dollar grants while allowing staff the agility to continue to respond. A member asked Mr. Thayer to explain the previous Board’s process. Mr. Thayer explained that AEA staff would notify the previous Board of grant applications, but there was no consistent policy. The member asked for the current process regarding grants under the $10 million threshold. Mr. Thayer explained that the application for and acceptance of grants at or below $10 million remain at the discretion of the AEA Executive Director and staff. A roll call was taken, and the motion to approve the amended Resolution 2024-07 passed, with Ms. Miller absent. E. Resolution 2024-08 - Authorizing acceptance of GRIP 3, Round 1 Grant Award Mr. Thayer discussed that Resolution 2024-08 authorizes the acceptance of the GRIP Federal Award for the Railbelt Innovative and Resiliency Project. The project includes a subsea HVDC transmission line and two battery energy storage systems (BESS) for a total of $413 million. The federal cost share is $206.5 million. The match required is $206.5 million. He noted that AEA, through its utility partners, have pledged $40 million of the match and the State has put forth $12.7 million. Discussions with the Legislature are ongoing regarding funding the balance of the match over the eight-year project schedule. Mr. Thayer explained that AEA staff, primarily Jim Mendenhall, has negotiated the terms and conditions of the grant agreement with the US Department of Energy (DOE). The grant agreement has been reviewed by AEA’s legal counsel. The memorandum from Dorsey & Whitney is attached to the Resolution. The grant application is also attached to the Resolution, and Mr. Thayer has the file containing the back-up information with him. Mr. Thayer explained that if the Board accepts the grant award, he will sign the contract with DOE and the eight-year project timeframe will begin. Mr. Thayer informed that Mr. Mendenhall and Mr. Grossklaus are available today to answer any questions. There were no questions. MOTION: A motion was made by Vice Chair Mitchell to accept Resolution 2024-08, authorizing acceptance of the GRIP 3, Round 1 Grant Award. Motion seconded by Mr. Siedman. Mr. Izzo declared that he will abstain from voting due to the perception of a conflict. MEA members are likely to benefit, even though MEA could not afford this project without the federal funding and State support. The project will facilitate additional clean energy across the Railbelt and will benefit members through lower rates. Alaska Energy Authority Page 8 of 14 Commissioner Crum commented that the first sentence on page two of the project overview encapsulates the vision, and he is proud to work with AEA on this fantastic application and project. He believes this project has made the Governor’s Energy Taskforce successful and opens the possibility for multiple generation projects around the state. He expressed his support and looks forward to this being the first phase of large-scale infrastructure upgrades throughout the state. Vice Chair Mitchell agreed with Commissioner Crum’s comments. He reiterated that this is the first of many more transmission lines and additional federal investments. Mr. Siedman commented that there is currently only one transmission path from Homer to Fairbanks. He noted that other parts of the United States have multiple distribution and transmission lines that contribute to grid resiliency and reliability. Mr. Siedman echoed the comments that this project is a very good first step. Mr. Siedman asked for additional information on what would happen if the State match cannot be secured. Mr. Thayer explained that question was discussed during the application process. He noted that the project would stop when the money was spent. Without speaking for the Governor and the Legislature, Mr. Thayer expressed that there is tremendous support for this project moving forward. Mr. Mendenhall explained that if the project is 50/50 with the federal government, there is no claw back if the project stops. He noted that this provision was reviewed by staff and counsel. Chair Koplin expressed his support for this exciting project and believes it will benefit the entire state. There were no other comments. A roll call was taken, and the motion to approve Resolution 2024-08 passed, with Ms. Miller absent and Mr. Izzo abstaining. F. Resolution 2024-09 - Accepting Solar For All Grant Award Mr. Thayer explained that Resolution 2024-09 is acceptance of a $62.5 million grant received from the Environmental Protection Agency (EPA) Greenhous Gas Reduction Fund Solar for All Grant program. AEA will focus on residential-serving community solar projects and Alaska Housing Finance Corporation (AHFC) will focus on residential rooftop solar projects on low-income housing. Grant negotiations, including the terms and conditions, have been completed and reviewed by counsel. Mr. Thayer indicated that Josie Hartley, AEA, spearheaded the effort and the competitive application process. She is available to answer any questions. There were no questions. MOTION: A motion was made by Commissioner Crum to approve Resolution 2024-09 Accepting the Solar For All Grant Award. Motion seconded by Vice Chair Mitchell. Alaska Energy Authority Page 9 of 14 Mr. Siedman asked if an additional $62.5 million grant was received in Alaska. Mr. Thayer agreed that there were two $62.5 million grants received. Resolution 2024-09 is one of the grants and the other recipient was AHFC with Tanana Chiefs. A member asked for confirmation that this grant has no associated match. Mr. Thayer agreed that there is no required match on this grant. Mr. Mathiasson recused himself from the vote to avoid any misconception. There were no other questions. A roll call was taken, and the motion to approve Resolution 2024-09 passed, with Ms. Miller absent, Mr. Mathiasson and Mr. Siedman abstaining. G. Resolution 2024-10 - Transfer of Craig-Klawock Tie Line Mr. Thayer explained that AEA found out recently that the Craig to Klawock (C-K) power tie line was still owned by AEA. Resolution 2024-10 provides for the transfer of ownership of the C-K line to Alaska Power & Telephone Company (AP&T). This is in the best interest of all parties. The C-K intertie is fully depreciated, and retaining ownership offers no revenue benefit to AEA. Additionally, AEA is exposed to potential liabilities associated with this ownership and AEA lacks the necessary funds to continue maintaining or upgrading the C-K lines. Mr. Thayer discussed that AP&T, with its existing role in providing power to both Craig and Klawock, has the resources, knowledge, and experience necessary to maintain and respond to emergencies involving the C-K line. Mr. Thayer noted that Bill Price, AEA, is available to answer any questions. Commissioner Crum recommended that Resolution 2024-10 and Resolution 2024-11 are discussed together and presented as one motion. There was no objection. H. Resolution 2024-11 – Transfer of Shungnak-Kobuk Tie Line Mr. Thayer explained the transfer of the Shungnak-Kobuk (S-K) tie line is similar to the C-K line transfer. The S-K line would be transferred to the Alaska Village Electric Cooperative (AVEC), which serves the communities of Shungnak and Kobuk. Mr. Thayer noted that in order to facilitate maintenance of the line, AEA obtained easements from NANA, the owner of the land that the line crosses, and as part of the transfer agreement, AEA will transfer the easement to AVEC with NANA’s consent. Mr. Thayer discussed that this transfer is in the best interest of all parties for the same reasons as the C-K line transfer. He acknowledged that there is an additional tie line transfer that will come before the Board at a later meeting. MOTION: A motion was made by Vice Chair Mitchell to approve Resolution 2024-10, and amend the resolution to include Section 3. The transfer of AEA’s interest in the C-K tie line project to AP&T shall be conditioned to the extent practicable on AP&T providing open access to the C-K tie line, and to approve Resolution 2024-11, and amend the resolution to include Section 3. The transfer of AEA’s interest in the S-K tie line project to AVEC shall be Page 10 of 14 Alaska Energy Authority conditioned to the extent practicable on AVEC providing open access to the S-K tie line. Motion seconded by Ms. Miller. Vice Chair Mitchell commented that Alaska is one of the few states that does not have an open access law. He wants to ensure that future tie-ins are provided open access to the extent practicable. He believes open access is a good forward practice. Mr. Izzo requested Mr. Thayer to give AEA’s perspective on Vice-Chair Mitchell’s comments. Mr. Thayer indicated that staff discussed Vice-Chair Mitchell’s comments prior to the meeting and found that adding Section 3. does not hinder the transfer of the two tie lines. Mr. Izzo expressed his support; however, he believes that open access should be reviewed on a case-by-case basis. Open access cannot be allowed to harm or present a negative reliability impact to the primary users of the line. There were no other comments. A roll call was taken, and the motion to approve Resolution 2024-10, as amended, and Resolution 2024-11, as amended, passed unanimously. I.Resolution 2024-12 – Amendment to Bond Resolution Mr. Thayer provided background information regarding Resolution 2024-12, Amendment to Bond Resolution 2024-02. He indicated that this resolution was reviewed by counsel, and he requested Mr. Grossklaus to provide additional information. Mr. Grossklaus agreed with Mr. Thayer’s description and added that after the bondholders approve the amendment, staff will return to the Board for an amendment to the Bond documents to reflect the additional uses. There were no questions. MOTION: A motion was made by Vice Chair Mitchell to approve Resolution 2024-12. Motion seconded by Commissioner Crum. A roll call was taken, and the motion to approve Resolution 2024-12 passed, with Ms. Miller absent and Mr. Izzo abstaining. Mr. Thayer expressed appreciation to Mr. Grossklaus and Mr. Billingsley for their efforts regarding the previous resolutions. J.Resolution 2024-13 – Authorizing Purchase of Capacity on Battery EnergyStorage Systems (BESS) – (pending) Mr. Thayer indicated that Resolution 2024-13 is not requested to move forward today. He highlighted that the authorization relates to the $28 million bonding balance. Work is ongoing with the utilities to develop a term sheet capacity agreement regarding the BESS usage. Vice Chair Mitchell asked Mr. Thayer if the utility agreement will be available at the next AEA Page 11 of 14 Alaska Energy Authority meeting. Mr. Thayer agreed. There were no other questions. K.Meeting Schedule (Quarterly – July, October, January, April) Mr. Thayer discussed the provided memorandum suggesting the possible quarterly meeting schedule through July 2025. Commissioner Sande requested additional time to review the proposed schedule to ensure that the Commissioners’ meetings that cannot be delegated do not overlap with AEA meetings. Vice Chair Mitchell indicated that Thursday meetings work better for him; however, he will adjust his schedule accordingly. Commissioner Crum agreed with Commissioner Sande’s comments, and suggested that the October meeting date is scheduled today, and that the remaining meeting dates are approved at the October meeting. Discussion occurred, and without objection, the next meeting was scheduled for Thursday, October 24, 2024 for two hours. L.Sub-committee Assignments (Budget & Audit, and Personnel) MOTION: A motion was made by Commissioner Crum to elect by unanimous consent Commissioner Crum, Mr. Siedman, and Ms. Izzo to the Budget & Audit Subcommittee, and to elect by unanimous consent Ms. Miller, Commissioner Sande, and Mr. Izzo to the Personnel Subcommittee. Motion seconded by Vice Chair Mitchell. A roll call was taken, and the motion passed unanimously. 10.DIRECTORS COMMENTS A.AEA FY 2025 Budget Mr. Thayer noted the FY25 Budget was discussed earlier in the meeting during the AEA Overview presentation. There were no questions. B.Audit Update – process Mr. Thayer discussed that the audit is in process and is on schedule. The final draft of the financial statements will be reviewed at the October Board meeting. There were no questions. C.National Electric Vehicle Infrastructure (NEVI) Plan Mr. Thayer indicated that the NEVI Plan is included in the packet for informational purposes. The plan went out for public comment and has been submitted. Mr. Thayer reported that the previous Page 12 of 14Alaska Energy Authority NEVI Plan was recognized by the Federal Highway Administration as one of the best plans in the country. There were no questions. D.Denali Commission Awards Mr. Thayer informed that AEA was successful in receiving three Denali Commission Grant Awards totaling approximately $3 million for distribution upgrades and a rural power system upgrade. There were no questions. E.Community Outreach Mr. Thayer reviewed the community outreach look-back table provided in the Board packet. There were no questions. F.Articles of Interest Mr. Thayer highlighted the articles of interest included in the Board packet. Mr. Thayer indicated that staff provides Board members with a weekly status report. Mr. Thayer noted that the weekly status report is administratively burdensome. He asked Board members for feedback regarding the content and timing of the information. Commissioner Sande suggested that it would be helpful to have biweekly highlights or bullet points of important Board items. Mr. Izzo agreed with Commissioner Sande, and recommended that the reports are submitted biweekly or monthly, with exceptions provided, as necessary. He recognized the extensive level of detail contained in the weekly status reports and agreed the weekly reports pose an administrative burden to staff. Mr. Siedman agreed with Mr. Izzo, and recommended that the frequency of reports is determined by the Executive Director. Vice Chair Mitchell agreed with the previous comments that a status report on a weekly basis is not necessary. He did not suggest a report schedule. Vice Chair Mitchell believes it is important, though, for Board members to be made aware of important issues that arise unpredictably. He expressed appreciation to staff for providing well-informed reports, and believes staff time is better spent doing their job rather than reporting on their job. Chair Koplin summarized the Board’s consensus for staff to use its discretion for providing Board reports; however, staff is to promptly report important issues to Board members. There were no other questions or comments. G.Next Regularly Scheduled AEA Board – TBD Page 13 of 14 Alaska Energy Authority Chair Koplin reiterated that the next regularly scheduled AEA Board meeting is on Thursday, October 24, 2024. MOTION: A motion was made by Vice Chair Mitchell to enter into executive session to discuss confidential information related to the FY26 budget, which the immediate disclosure of 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 the rules protecting personal privacy and certain business information. Motion seconded by Mr. Siedman. A roll call was taken, and the motion to go into executive session passed, with Commissioner Sande absent. 11.EXECUTIVE SESSION: 3:12 pm – Discuss confidential information related to the FY26budget. The Board reconvened its regular meeting at 4:06 pm. Chair Koplin advised that the Board did not take any formal action on matters discussed while in Executive Session. 12.BOARD COMMENTS Mr. Izzo expressed congratulations to Chair Koplin. He commented that AEA is operating at the highest level during his 20 years’ involvement with AEA. This is reflected in the balance sheet, in Mr. Thayer’s leadership, and in the AEA team. Mr. Izzo offered sincere thanks to Mr. Thayer and the AEA team. Mr. Mathiasson commented that this was a good first meeting. He expressed appreciation for all the work and effort. Commissioner Crum expressed appreciation to the staff and understands this will be a big growth year with many opportunities. He looks forward to working with Board members and staff to power Alaska. Mr. Siedman reiterated the compliments to AEA’s impressive staff. He noted that for him, this first meeting contained an enormous amount of information. Mr. Siedman expressed appreciation for the presentations and he will continue to learn. He congratulated Chair Koplin and Vice Chair Mitchell. Vice Chair Mitchell believes that the Governor did an excellent job of interviewing and selecting Board members, who share the same goal of lowering the cost of energy and optimizing Alaska’s resources. He complimented the staff and looks forward to working together. Page 14 of 14 Alaska Energy Authority Mr. Thayer expressed appreciation to Jennifer Bertolini, AEA, for her diligence in preparing the documents. Chair Koplin expressed appreciation to Board members for their confidence in electing him Chair. He welcomed suggestions and constructive criticism regarding ways to improve the meeting. He is excited for the continued work of the Board and for staff’s contribution on behalf of Alaskans. Chair Koplin reiterated the importance of community outreach, staff updates, securing grants, and negotiating the NICRA rate. He recognized Ms. Bertolini for providing a well-organized packet and linkable agenda. Chair Koplin thanked the members who attended today’s meeting remotely. 13.ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 4:12 pm. __________________________________________________ Curtis W. Thayer, Secretary 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM DATE: October 22, 2024 TO: AEA Board of Directors FROM: Curtis W. Thayer, Executive Director RE: Purchase of Bradley Lake Hydroelectric Project Required Project Work: BESS or Related Services from Railbelt Utilities As part of work required to support the Bradley Lake Hydroelectric Project (so-called “Required Project Work”), AEA seeks to purchase BESSs or related services from Railbelt utilities. The funds for these transactions were raised as part of AEA’s Bond Series 11. The Board has before it four draft resolutions, supported by this memo, to authorize agreements with each of GVEA, HEA, MEA, and CEA. BACKGROUND In December 2022, Alaska Energy Authority issued its “Bond Series 11,” totaling $166M, to support the Bradley Lake Hydroelectric Project. The Bradley Project Management Committee voted to allocate 35% of bond proceeds to BESSs. Of the $58M available for BESSs, the AEA Board designated $30M via Resolution 2024-12 as cost share for the US Department of Energy GRIP 3 Round 1 grant that has been awarded to AEA. This left $28M for direct investment into BESSs. Use of bond proceeds is expressly limited to Required Project Work (“RPW”). The State of Alaska Department of Law issued a memo in April 2022 describing RPW as including BESSs that improve power oscillations. Additionally, an analysis by external engineering firm GDS Engineering found that these investments are consistent with sound economics and national standards. BESSs help manage grid oscillations, which have increased in recent years, by absorbing or supplying power. Oscillations could cause damage to the power grid and the Bradley Lake powerhouse in a severe case. For example, if a 100MW load drops off in Fairbanks, the Fairbanks BESS combined with the BESSs in Anchorage and on the Kenai Peninsula can provide stability to the Railbelt. Without the BESS systems, an over-frequency event can occur and the Bradley Lake plant can lose synchronism. Alaska Energy Authority Page 2 of 2 AEA-UTILITY PURCHASE AGREEMENTS The proposed terms for AEA’s purchase from GVEA, HEA, CEA, and MEA generally would be under the same terms and conditions, including: • AEA will issue payments to the utility owner on a monthly basis. • The utility will retain the right to use BESS spinning reserve at all times to the extent unused by AEA under the agreement. • The utilities and AEA will work together to develop a protocol for providing oscillation dampening services that best serves the entire Railbelt. • The utility will be responsible, at its cost, for charging, energy loss associated with conversion, arranging transmission and wheeling, and O&M. • The utility will own any federal or state tax credits and any other renewable energy attributes associated with the BESS. • Payment proportional to Seward’s participant share will go to Seward’s wholesale provider, which is currently CEA though that could change during the life of the agreements. Utility-specific terms include: • GVEA’s contract will not be executed until GVEA commissions a replacement or significant upgrade to its existing BESS. • ODS provided by each of CEA and MEA will come from the same BESS, which is co- owned by the two utilities and which share the capacity (25% MEA / 75% CEA). Before execution, AEA will need to ensure that the purchase agreements align with the Power Sales Agreement, Bond Series 11 documents, and the Department of Law memo regarding RPW, especially with regard to whether AEA may purchase oscillation dampening services or must acquire an ownership interest in the BESSs themselves. Utility Anticipated Contract Execution Date Value of Service / Contract Value Total BESS Capacity BESS Date of Service CEA ASAP $16,072,397.54 75% of 40MW (2hrs) October 2024 MEA ASAP $3,870,839.20 25% of 40MW (2hrs) October 2024 GVEA TBD $4,740,376.54 TBD Estimated 2028 HEA ASAP $3,365,947.13 46MW (2hrs) January 2022 = $28,049,559.40 In conclusion, we encourage the AEA Board of Directors to adopt the resolutions authorizing the use of Bond Series 11 proceeds to purchases BESSs or related services from GVEA, HEA, CEA, and MEA. AEA Resolution No. 2024-13 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-13 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE PURCHASE FROM ALASKA ELECTRIC & ENERGY COOPERATIVE OF BESS OR RELATED SERVICES WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to accept grants and enter into contracts “for the construction, financing, operation, and maintenance of all or any part of a power project,” “for the sale or transmission of power from a project,” and “acquire battery and other energy storage systems”; and WHEREAS, AEA desires to purchase Battery Energy Storage Systems (BESS) or associated oscillation dampening services for the benefit of the Bradley Lake Hydroelectric Project; and WHEREAS, AEA desires to use $28 million of the proceeds from its $166 million Bond Series 11 issued in December 2022 to perform Required Project Work for the Bradley Lake Hydroelectric Project; and WHEREAS, Bond Series 11 proceeds are required to be spent on Required Project Work, and investment in BESS or associated oscillation dampening services along the Railbelt was found by the Alaska Department of Law to be Required Project Work; and WHEREAS, GDS Engineering found the purchase of oscillation dampening services using BESSs to be consistent with sound economics and national standards; and WHEREAS, Alaska Electric & Energy Cooperative desires to provide BESS or associated oscillation dampening services using its BESS to AEA; and WHEREAS, the Board of Directors has reviewed the Term Sheet for a proposed service agreement with Alaska Electric & Energy Cooperative. AEA Resolution No. 2024-13 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Board of Directors hereby endorses the terms and conditions included in the Term Sheet for the proposed service agreement with Alaska Electric & Energy Cooperative. Section 2. The AEA Executive Director is authorized to enter into a contract with Alaska Electric & Energy Cooperative so long as the contract includes no additional material terms and is consistent with all material terms of the Term Sheet except that the contract may deviate only if necessary to meet the definition of Required Project Work with regard to acquiring an ownership interest in the BESS or services associated therewith. Section 3. The AEA Executive Director is authorized and directed to administer the contract referenced in Section 2 above. Section 2. The Executive Director is authorized to take all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Clay, Kolpin, Chair __________________________ Curtis W. Thayer, Secretary Corporate seal 1733062 Draft term sheet, AEA 2024/09/30 TERM SHEET FOR ALASKA ELECTRIC & ENERGY COOPERATIVE, INC. TO PROVIDE TO ALASKA ENERGY AUTHORITY OSCILLATION DAMPENING SERVICES FOR THE BRADLEY LAKE HYDROELECTRIC PROJECT This term sheet (the “Term Sheet”) is intended to set forth certain terms and conditions being discussed to provide oscillation dampening services related to the 46.5 MW by 2-hour (46.5MW/93 MWh) battery energy storage system (“BESS”) owned by Alaska Electric & Energy Cooperative, Inc. (“AEEC” or “Seller”) between the Alaska Energy Authority (“AEA”), as Buyer, and the Seller (the “Proposed Transaction”). AEEC and AEA are referred to individually as a “Party” and, collectively as the “Parties”. This Term Sheet is for discussion purposes only and does not contain all matters upon which agreement must be reached in order for the Proposed Transaction to be completed. This Term Sheet is not a binding agreement and does not represent an offer or commitment of any nature from either Party hereto or their respective affiliated entities to engage in negotiations regarding, or to enter into any contract or agreement effecting, the Proposed Transaction contemplated herein. This Term Sheet does not impose any obligation or liability on any Party hereto if the transaction contemplated herein is not consummated. The terms and conditions of this Term Sheet are subject in all respects to the Parties’ satisfactory completion of commercial and legal due diligence; receipt of any necessary board, regulatory, and/or other third-party approvals; confirmation that the Proposed Transaction is consistent with the funding source (Bond Series 11) T&C; and execution by the Parties of one or more binding definitive agreements and other documentation or agreements necessary to effect the Proposed Transaction (the “Definitive Agreements”). 1. Terms and Conditions of Proposed Transaction General Terms Buyer: Alaska Energy Authority ("AEA") Seller: Alaska Electric & Energy Cooperative, Inc. ("AEEC") Project Site: The 2-hr BESS referenced herein. Governing Law; Jurisdiction and Venue: Alaska Terms for the purchase of ODS from AEEC Oscillation Dampening Services: AEA shall purchase oscillation dampening services (“ODS”) to address certain expected but unpredictable intermittent instability events causing oscillation problems with the turbines (each an "Instability Event") at the Bradley Lake Hydroelectric Project ("Bradley Lake") so that the BESS can be used (in proportion to the consideration provided by AEA and subject to the limitations set forth herein) to mitigate or eliminate such Instability Event through spinning reserves. The Parties understand that Instability Events cannot be scheduled, so the value the BESS delivers is by being available to respond, to the extent defined in the Definitive Agreements, to these unscheduled events. Seller’s resource for providing ODS 46.5 MW by 2-hour (46.5MW/93 MWh) battery energy storage system Required Project Work Seller shall provide, and the Definitive Agreements shall include language that ensures, service that is in alignment with the definition of Required Project Work provided in Bond Series 11, as interpreted by the SOA Dept of Law in its memo dated 4/27/22, and as applied by GDS Associates in its letter dated 9/27/22; including that: The service must achieve sound economics and meet nationals standards in the industry Payments to Seller For the ODS, AEA will make monthly payments to Seller totaling $3,365,947, taking into consideration those terms and conditions relating to performance guarantees set forth in the Definitive Agreements. The AEA monthly payment amount will be modified as necessary to reflect changes associated with Seward Electric System’s wholesale power agreement. Term: The ODS will be provided for 15 years from the date the Definitive Agreements are executed, unless terminated earlier due to an AEA event of default or any other reason as may be specified in the Definitive Agreements. Limitations on Availability of ODS to AEA AEEC shall be entitled to use a) all BESS capacity remaining when AEA is benefitting from the ODS committed to AEA at any given time, and b) all of the BESS capacity, any time AEA is not benefiting from the ODS. If the tie line to Anchorage is out of service and the Kenai is islanded, the BESS will be fully dedicated to serving the AEEC Load Balancing Area, which would provide sole mitigation of Bradley oscillations during islanded periods. Charging Energy: AEEC shall be responsible, at its own cost, for providing or procuring charging energy for any energy l o s s a s s o c i a t e d w i t h converting charging energy to discharged energy associated with the ODS. Transmission Charges: AEEC shall be responsible, at their cost, for arranging transmission and wheeling required to deliver Charging Energy and take discharged energy associated with the ODS as may be applicable under tariffs and agreements. O&M Charges: AEEC shall be responsible, at its cost, for all O&M Charges associated with the BESS. Operation of the BESS: AEEC will operate the BESS based on a protocol ("Protocol") to which the Parties mutually agree, that will be attached as an exhibit to the Definitive Agreements. The Protocol shall address operation of the BESS and dispatch of the ODS. On a quarterly basis, AEEC shall provide the BPMC a report on ODS performance and compliance with the protocol. Battery Energy Storage Tax Credit: As the owner of the BESS, Seller shall own any Federal or State tax credit(s) or related cash amounts for which the BESS qualifies and, to the extent applicable, any other renewable energy, environmental or green attributes associated with the BESS. Additional Provisions The Definitive Agreements shall contain other provisions for agreements of this nature, including, but not limited to, conditions precedent, billing and payment, measurement and metering, termination, force majeure/excused performance, limitations on liability, indemnification and confidentiality. 2. Other Terms and Conditions a. Not Binding. This Term Sheet does not constitute, nor is it intended to be, a final agreement between the Parties or a commitment to enter into any binding agreement(s). This Term Sheet does not give rise to any binding obligations, express or implied, and neither Party will be liable to the other for the failure to agree upon Definitive Agreements. In addition, neither Party should act or fail to act in detrimental reliance on this Term Sheet. No Party will be legally bound until mutually acceptable final Definitive Agreements containing such terms and conditions as agreed to by the Parties are fully executed by duly authorized representatives. b. Confidentiality. This Term Sheet and any information exchanged between the Parties regarding the Proposed Transaction described in this Term Sheet will be kept confidential to the fullest extent allowed by the laws of the State of Alaska. No Party will make a public announcement regarding the contents of this Term Sheet without prior written consent of the other Parties. c. Costs and Fees. Each Party shall bear and be solely responsible for its own costs, expenses, and legal fees in connection with the preparation and negotiation of this Term Sheet and the preparation and negotiation of any Definitive Agreements. d. Relationship. This Term Sheet will not be construed to determine that a Party is a partner, joint venturer, or fiduciary of the other Party, to create any other form of legal association that would impose liability on one Party for the act or failure to act of the other Party, or to provide either Party with the right, power, or authority (express or implied) to create any duty or obligation of the other Party. e. Choice of Law. Interpretation of this Term Sheet will be governed by the laws of the State of Alaska, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction. All disputes arising out of this Term Sheet will be subject to the exclusive jurisdiction of the state and federal courts located in Anchorage, Alaska, as applicable, and each Party consents to the personal jurisdiction of these bodies. f. Term. The terms set forth in this Term Sheet are valid for 120 days from the date hereof and thereafter shall be null and void. [Signature blocks to be added once the Parties agree to this Term Sheet.] AEA Resolution No. 2024-13 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-13 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE PURCHASE FROM ALASKA ELECTRIC & ENERGY COOPERATIVE OF BESS OR RELATED SERVICES WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to accept grants and enter into contracts “for the construction, financing, operation, and maintenance of all or any part of a power project,” “for the sale or transmission of power from a project,” and “acquire battery and other energy storage systems”; and WHEREAS, AEA desires to purchase Battery Energy Storage Systems (BESS) or associated oscillation dampening services for the benefit of the Bradley Lake Hydroelectric Project; and WHEREAS, AEA desires to use $28 million of the proceeds from its $166 million Bond Series 11 issued in December 2022 to perform Required Project Work for the Bradley Lake Hydroelectric Project; and WHEREAS, Bond Series 11 proceeds are required to be spent on Required Project Work, and investment in BESS or associated oscillation dampening services along the Railbelt was found by the Alaska Department of Law to be Required Project Work; and WHEREAS, GDS Engineering found the purchase of oscillation dampening services using BESSs to be consistent with sound economics and national standards; and WHEREAS, Alaska Electric & Energy Cooperative desires to provide BESS or associated oscillation dampening services using its BESS to AEA; and WHEREAS, the Board of Directors has reviewed the Term Sheet for a proposed service agreement with Alaska Electric & Energy Cooperative. AEA Resolution No. 2024-13 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Board of Directors hereby endorses the terms and conditions included in the Term Sheet for the proposed service agreement with Alaska Electric & Energy Cooperative. Section 2. The AEA Executive Director is authorized to enter into a contract with Alaska Electric & Energy Cooperative so long as the contract includes no additional material terms and is consistent with all material terms of the Term Sheet except that the contract may deviate only if necessary to meet the definition of Required Project Work with regard to acquiring an ownership interest in the BESS or services associated therewith. Section 3. The AEA Executive Director is authorized and directed to administer the contract referenced in Section 2 above. Section 2. The Executive Director is authorized to take all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Clay, Kolpin, Chair __________________________ Curtis W. Thayer, Secretary Corporate seal 1733062 Draft term sheet, AEA 2024/09/30 TERM SHEET FOR ALASKA ELECTRIC & ENERGY COOPERATIVE, INC. TO PROVIDE TO ALASKA ENERGY AUTHORITY OSCILLATION DAMPENING SERVICES FOR THE BRADLEY LAKE HYDROELECTRIC PROJECT This term sheet (the “Term Sheet”) is intended to set forth certain terms and conditions being discussed to provide oscillation dampening services related to the 46.5 MW by 2-hour (46.5MW/93 MWh) battery energy storage system (“BESS”) owned by Alaska Electric & Energy Cooperative, Inc. (“AEEC” or “Seller”) between the Alaska Energy Authority (“AEA”), as Buyer, and the Seller (the “Proposed Transaction”). AEEC and AEA are referred to individually as a “Party” and, collectively as the “Parties”. This Term Sheet is for discussion purposes only and does not contain all matters upon which agreement must be reached in order for the Proposed Transaction to be completed. This Term Sheet is not a binding agreement and does not represent an offer or commitment of any nature from either Party hereto or their respective affiliated entities to engage in negotiations regarding, or to enter into any contract or agreement effecting, the Proposed Transaction contemplated herein. This Term Sheet does not impose any obligation or liability on any Party hereto if the transaction contemplated herein is not consummated. The terms and conditions of this Term Sheet are subject in all respects to the Parties’ satisfactory completion of commercial and legal due diligence; receipt of any necessary board, regulatory, and/or other third-party approvals; confirmation that the Proposed Transaction is consistent with the funding source (Bond Series 11) T&C; and execution by the Parties of one or more binding definitive agreements and other documentation or agreements necessary to effect the Proposed Transaction (the “Definitive Agreements”). 1. Terms and Conditions of Proposed Transaction General Terms Buyer: Alaska Energy Authority ("AEA") Seller: Alaska Electric & Energy Cooperative, Inc. ("AEEC") Project Site: The 2-hr BESS referenced herein. Governing Law; Jurisdiction and Venue: Alaska Terms for the purchase of ODS from AEEC Oscillation Dampening Services: AEA shall purchase oscillation dampening services (“ODS”) to address certain expected but unpredictable intermittent instability events causing oscillation problems with the turbines (each an "Instability Event") at the Bradley Lake Hydroelectric Project ("Bradley Lake") so that the BESS can be used (in proportion to the consideration provided by AEA and subject to the limitations set forth herein) to mitigate or eliminate such Instability Event through spinning reserves. The Parties understand that Instability Events cannot be scheduled, so the value the BESS delivers is by being available to respond, to the extent defined in the Definitive Agreements, to these unscheduled events. Seller’s resource for providing ODS 46.5 MW by 2-hour (46.5MW/93 MWh) battery energy storage system Required Project Work Seller shall provide, and the Definitive Agreements shall include language that ensures, service that is in alignment with the definition of Required Project Work provided in Bond Series 11, as interpreted by the SOA Dept of Law in its memo dated 4/27/22, and as applied by GDS Associates in its letter dated 9/27/22; including that: The service must achieve sound economics and meet nationals standards in the industry Payments to Seller For the ODS, AEA will make monthly payments to Seller totaling $3,365,947, taking into consideration those terms and conditions relating to performance guarantees set forth in the Definitive Agreements. The AEA monthly payment amount will be modified as necessary to reflect changes associated with Seward Electric System’s wholesale power agreement. Term: The ODS will be provided for 15 years from the date the Definitive Agreements are executed, unless terminated earlier due to an AEA event of default or any other reason as may be specified in the Definitive Agreements. Limitations on Availability of ODS to AEA AEEC shall be entitled to use a) all BESS capacity remaining when AEA is benefitting from the ODS committed to AEA at any given time, and b) all of the BESS capacity, any time AEA is not benefiting from the ODS. If the tie line to Anchorage is out of service and the Kenai is islanded, the BESS will be fully dedicated to serving the AEEC Load Balancing Area, which would provide sole mitigation of Bradley oscillations during islanded periods. Charging Energy: AEEC shall be responsible, at its own cost, for providing or procuring charging energy for any energy l o s s a s s o c i a t e d w i t h converting charging energy to discharged energy associated with the ODS. Transmission Charges: AEEC shall be responsible, at their cost, for arranging transmission and wheeling required to deliver Charging Energy and take discharged energy associated with the ODS as may be applicable under tariffs and agreements. O&M Charges: AEEC shall be responsible, at its cost, for all O&M Charges associated with the BESS. Operation of the BESS: AEEC will operate the BESS based on a protocol ("Protocol") to which the Parties mutually agree, that will be attached as an exhibit to the Definitive Agreements. The Protocol shall address operation of the BESS and dispatch of the ODS. On a quarterly basis, AEEC shall provide the BPMC a report on ODS performance and compliance with the protocol. Battery Energy Storage Tax Credit: As the owner of the BESS, Seller shall own any Federal or State tax credit(s) or related cash amounts for which the BESS qualifies and, to the extent applicable, any other renewable energy, environmental or green attributes associated with the BESS. Additional Provisions The Definitive Agreements shall contain other provisions for agreements of this nature, including, but not limited to, conditions precedent, billing and payment, measurement and metering, termination, force majeure/excused performance, limitations on liability, indemnification and confidentiality. 2. Other Terms and Conditions a. Not Binding. This Term Sheet does not constitute, nor is it intended to be, a final agreement between the Parties or a commitment to enter into any binding agreement(s). This Term Sheet does not give rise to any binding obligations, express or implied, and neither Party will be liable to the other for the failure to agree upon Definitive Agreements. In addition, neither Party should act or fail to act in detrimental reliance on this Term Sheet. No Party will be legally bound until mutually acceptable final Definitive Agreements containing such terms and conditions as agreed to by the Parties are fully executed by duly authorized representatives. b. Confidentiality. This Term Sheet and any information exchanged between the Parties regarding the Proposed Transaction described in this Term Sheet will be kept confidential to the fullest extent allowed by the laws of the State of Alaska. No Party will make a public announcement regarding the contents of this Term Sheet without prior written consent of the other Parties. c. Costs and Fees. Each Party shall bear and be solely responsible for its own costs, expenses, and legal fees in connection with the preparation and negotiation of this Term Sheet and the preparation and negotiation of any Definitive Agreements. d. Relationship. This Term Sheet will not be construed to determine that a Party is a partner, joint venturer, or fiduciary of the other Party, to create any other form of legal association that would impose liability on one Party for the act or failure to act of the other Party, or to provide either Party with the right, power, or authority (express or implied) to create any duty or obligation of the other Party. e. Choice of Law. Interpretation of this Term Sheet will be governed by the laws of the State of Alaska, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction. All disputes arising out of this Term Sheet will be subject to the exclusive jurisdiction of the state and federal courts located in Anchorage, Alaska, as applicable, and each Party consents to the personal jurisdiction of these bodies. f. Term. The terms set forth in this Term Sheet are valid for 120 days from the date hereof and thereafter shall be null and void. [Signature blocks to be added once the Parties agree to this Term Sheet.] AEA Resolution No. 2024-14 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-14 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE PURCHASE FROM CHUGACH ELECTRIC ASSOCIATION OF BESS OR RELATED SERVICES WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to accept grants and enter into contracts “for the construction, financing, operation, and maintenance of all or any part of a power project,” “for the sale or transmission of power from a project,” and “acquire battery and other energy storage systems”; and WHEREAS, AEA desires to purchase Battery Energy Storage Systems (BESS) or associated oscillation dampening services for the benefit of the Bradley Lake Hydroelectric Project; and WHEREAS, AEA desires to use $28 million of the proceeds from its $166 million Bond Series 11 issued in December 2022 to perform Required Project Work for the Bradley Lake Hydroelectric Project; and WHEREAS, Bond Series 11 proceeds are required to be spent on Required Project Work, and investment in BESS or associated oscillation dampening services along the Railbelt was found by the Alaska Department of Law to be Required Project Work; and WHEREAS, GDS Engineering found the purchase of oscillation dampening services using BESSs to be consistent with sound economics and national standards; and WHEREAS, Chugach Electric Association desires to provide BESS or associated oscillation dampening services using its BESS to AEA; and WHEREAS, the Board of Directors has reviewed the Term Sheet for a proposed service agreement with Chugach Electric Association. AEA Resolution No. 2024-14 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Board of Directors hereby endorses the terms and conditions included in the Term Sheet for the proposed service agreement with Chugach Electric Association. Section 2. The AEA Executive Director is authorized to enter into a contract with Chugach Electric Association so long as the contract includes no additional material terms and is consistent with all material terms of the Term Sheet except that the contract may deviate only if necessary to meet the definition of Required Project Work with regard to acquiring an ownership interest in the BESS or services associated therewith. Section 3. The AEA Executive Director is authorized and directed to administer the contract referenced in Section 2 above. Section 2. The Executive Director is authorized to take all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Clay Koplin, Chair __________________________ Curtis W. Thayer, Secretary Corporate seal Draft term sheet, AEA 2024/09/30   CORE/2065927.0031/191264229.8 TERM SHEET FOR CHUGACH TO PROVIDE TO ALASKA ENERGY AUTHORITY OSCILLATION DAMPENING SERVICE FOR BRADLEY LAKE This term sheet (the “Term Sheet”) is intended to set forth certain terms and conditions being discussed for the “Proposed Transaction” in which Chugach Electric Association, Inc. (“Chugach” and “Seller”) would provide Alaska Energy Authority (“AEA” and “Buyer”) oscillation dampening services from the 40 MW by 2-hour (40MW/80MWh) battery energy storage system (“BESS”) owned by CEA and Matanuska Electric Association, Inc. ("MEA"). Chugach and AEA are referred to individually as a “Party” and collectively as the “Parties.” This Term Sheet and the Proposed Transaction do not cover any sale of oscillation dampening services from MEA to AEA that has occurred or may occur. This Term Sheet is for discussion purposes only and does not contain all matters upon which agreement must be reached in order for the Proposed Transaction to be completed. This Term Sheet is not a binding agreement and does not represent an offer or commitment of any nature from either Party hereto or their respective affiliated entities to engage in negotiations regarding, or to enter into any contract or agreement effecting, the Proposed Transaction contemplated herein. This Term Sheet does not impose any obligation or liability on any Party hereto if the transactions contemplated herein are not consummated. The terms and conditions of this Term Sheet are subject in all respects to the Parties’ satisfactory completion of commercial and legal due diligence; receipt of any necessary board, regulatory, and/or other third-party approvals; confirmation that the Proposed Transaction is consistent with the funding source (Bond Series 11) T&C; and execution by the Parties of one or more binding definitive agreements and other documentation or agreements necessary to effect the transactions contemplated hereby (the “Definitive Agreements”). 1. Terms and Conditions of Proposed Transaction General Terms Buyer: Alaska Energy Authority ("AEA") Seller: Chugach Electric Association, Inc. (“Chugach”) Project providing the service: The BESS located at Chugach's headquarters. Governing Law; Jurisdiction and Venue: Alaska Terms for the purchase of oscillation dampening service from the BESS DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 2 CORE/2065927.0031/191264229.8 Oscillation Dampening Service: AEA shall purchase oscillation dampening service ("ODS") from Sellers using the BESS to address certain expected but unpredictable intermittent instability events causing oscillation problems with the turbines at the Bradley Lake Hydroelectric Project ("Bradley Lake") so that the BESS can be used (subject to the operational limitations of the BESS) to mitigate or eliminate such oscillation problems through contingency reserve response. Seller’s resource for providing ODS 75% of the 40 MW by 2-hour (40MW/80MWh) battery energy storage system co-owned by Chugach and MEA Required Project Work Seller shall provide, and the Definitive Agreements shall include language that ensures, services that are in alignment with the definition of Required Project Work provided in Bond Series 11, as interpreted by the SOA Dept of Law in its memo dated 4/27/22, and as applied by GDS Associates in its letter dated 9/27/22; including that: The service must achieve sound economics and meet nationals standards in the industry Payments to Sellers for the ODS: For the ODS, AEA will make equal monthly payments to Seller of $89,291 per month during the Term, subject to mutually acceptable performance guarantees included in the Definitive Agreements. The monthly payment amount may be revised to reflect a different term depending upon the performance guarantee mechanism that is ultimately agreed upon by the parties in the Definitive Agreement. The AEA monthly payment amount will be modified as necessary to reflect changes associated with Seward Electric System’s wholesale power agreement. Term: The Term of the ODS agreement will be for 15 years from the date of execution of the Definitive Agreements, unless terminated DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 3 CORE/2065927.0031/191264229.8 earlier due to an AEA event of default or any other reason as may be specified in the Definitive Agreements. Operations to Provide for ODS to AEA: Chugach will operate the BESS in a manner that will provide ODS to mitigate oscillations caused by the Bradley Lake Project. The services provided will comply with the Electric Power Systems study: Bradley Lake Oscillation Mitigation Study, dated June 14, 2024. Charging Energy: Chugach shall be responsible, at their cost, for providing or procuring charging energy for any energy loss associated with converting charging energy to discharged energy associated with the ODS. Transmission Charges: Chugach shall be responsible, at their cost, for arranging transmission and wheeling required to deliver Charging Energy and take discharged energy associated with the ODS as may be applicable under tariffs and agreements. O&M Charges: Chugach shall be responsible, at their cost, for all O&M Charges associated with the ODS. Operation of the BESS: Chugach will operate the BESS based on a protocol ("Protocol") to which the Parties mutually agree and that will be attached as an exhibit to the Definitive Agreements. The Protocol shall address operation of the BESS for the ODS. On a quarterly basis, Seller shall provide the BPMC a report on ODS performance and compliance with the protocol. Battery Energy Storage Tax Credit: Buyer shall have no ownership interest in any Federal or State tax credit(s) or related cash amounts for which the BESS qualifies and, to the extent applicable, any other renewable energy, environmental or green attributes associated with the BESS. DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 4 CORE/2065927.0031/191264229.8 The Parties intend that the ODS Definitive Agreements will qualify as a “service contract” as such term is used in Section 7701(e) of the United States Internal Revenue Code of 1986 (“IRC”) and that none of the conditions set forth in IRC Section 7701(e)(4) shall apply. Those conditions that would inhibit the Definitive Agreements from qualifying as a “service contract” under the IRC are as follows: (i) the service recipient (or a related entity) operates such facility. (ii) the service recipient (or a related entity) bears any significant financial burden if there is nonperformance under the contract or arrangement (other than for reasons beyond the control of the service provider), (iii) the service recipient (or a related entity) receives any significant financial benefit if the operating costs of such facility are less than the standards of performance or operation under the contract or arrangement, or (iv) the service recipient (or a related entity) has an option to purchase, or may be required to purchase, all or a part of such facility at a fixed and determinable price (other than for fair market value). For the avoidance of doubt, the Parties do not intend for AEA to (1) operate the BESS facility; (2) pay for BESS service when applicable performance guarantees are not met; (3) receive a significant financial benefit from reduced operating costs; or (3) have an option to purchase all or a part of the BESS facility. Parties intend to make best efforts to collaborate in drafting final agreement(s) that support maximizing eligibility for IRS refundable/direct pay energy property and DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 5 CORE/2065927.0031/191264229.8 bonus tax credits or other tax credits or applicable financial incentives. Additional Provisions The Definitive Agreements shall contain other customary provisions for agreements of this nature, including, but not limited to, provisions related to conditions precedent, billing and payment, measurement and metering, forecasting, curtailment/interruption, events of default, termination, force majeure/excused performance, performance guarantees, limitations on liability, indemnification and confidentiality. 2. Other Terms and Conditions a. Not Binding. This Term Sheet does not constitute, nor is it intended to be, a final agreement between the Parties or a commitment to enter into any binding agreement(s). This Term Sheet, this Term Sheet does not give rise to any binding obligations, express or implied, and neither Party will be liable to the other for the failure to agree upon Definitive Agreements. In addition, neither Party should act or fail to act in detrimental reliance on this Term Sheet. No Party will be legally bound until mutually acceptable final Definitive Agreements containing such terms and conditions as agreed to by the Parties are fully executed by duly authorized representatives. b. Confidentiality. This Term Sheet and any information exchanged between the Parties regarding the Proposed Transaction described in this Term Sheet will be kept confidential to the fullest extent allowed by the laws of the State of Alaska. No Party will make a public announcement regarding the contents of this Term Sheet without prior written consent of the other Parties. c. Costs and Fees. Each Party shall bear and be solely responsible for its own costs, expenses, and legal fees in connection with the preparation and negotiation of this Term Sheet and the preparation and negotiation of any Definitive Agreements. d. Relationship. This Term Sheet will not be construed to determine that a Party is a partner, joint venturer, or fiduciary of the other Party, to create any other form of legal association that would impose liability on one Party for the act or failure to act of the other Party, or to provide either Party with the right, power, or authority (express or implied) to create any duty or obligation of the other Party. DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 6 CORE/2065927.0031/191264229.8 e. Choice of Law. Interpretation of this Term Sheet will be governed by the laws of the State of Alaska, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction. All disputes arising out of this Term Sheet will be subject to the exclusive jurisdiction of the state and federal courts located in Anchorage, Alaska, as applicable, and each Party consents to the personal jurisdiction of these bodies. f. Term. The terms set forth in this Term Sheet are valid for 120 days from the date hereof and thereafter shall be null and void. [Signature blocks to be added once the Parties agree to this Term Sheet.] AEA Resolution No. 2024-14 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-14 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE PURCHASE FROM CHUGACH ELECTRIC ASSOCIATION OF BESS OR RELATED SERVICES WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to accept grants and enter into contracts “for the construction, financing, operation, and maintenance of all or any part of a power project,” “for the sale or transmission of power from a project,” and “acquire battery and other energy storage systems”; and WHEREAS, AEA desires to purchase Battery Energy Storage Systems (BESS) or associated oscillation dampening services for the benefit of the Bradley Lake Hydroelectric Project; and WHEREAS, AEA desires to use $28 million of the proceeds from its $166 million Bond Series 11 issued in December 2022 to perform Required Project Work for the Bradley Lake Hydroelectric Project; and WHEREAS, Bond Series 11 proceeds are required to be spent on Required Project Work, and investment in BESS or associated oscillation dampening services along the Railbelt was found by the Alaska Department of Law to be Required Project Work; and WHEREAS, GDS Engineering found the purchase of oscillation dampening services using BESSs to be consistent with sound economics and national standards; and WHEREAS, Chugach Electric Association desires to provide BESS or associated oscillation dampening services using its BESS to AEA; and WHEREAS, the Board of Directors has reviewed the Term Sheet for a proposed service agreement with Chugach Electric Association. AEA Resolution No. 2024-14 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Board of Directors hereby endorses the terms and conditions included in the Term Sheet for the proposed service agreement with Chugach Electric Association. Section 2. The AEA Executive Director is authorized to enter into a contract with Chugach Electric Association so long as the contract includes no additional material terms and is consistent with all material terms of the Term Sheet except that the contract may deviate only if necessary to meet the definition of Required Project Work with regard to acquiring an ownership interest in the BESS or services associated therewith. Section 3. The AEA Executive Director is authorized and directed to administer the contract referenced in Section 2 above. Section 2. The Executive Director is authorized to take all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Clay Koplin, Chair __________________________ Curtis W. Thayer, Secretary Corporate seal Draft term sheet, AEA 2024/09/30   CORE/2065927.0031/191264229.8 TERM SHEET FOR CHUGACH TO PROVIDE TO ALASKA ENERGY AUTHORITY OSCILLATION DAMPENING SERVICE FOR BRADLEY LAKE This term sheet (the “Term Sheet”) is intended to set forth certain terms and conditions being discussed for the “Proposed Transaction” in which Chugach Electric Association, Inc. (“Chugach” and “Seller”) would provide Alaska Energy Authority (“AEA” and “Buyer”) oscillation dampening services from the 40 MW by 2-hour (40MW/80MWh) battery energy storage system (“BESS”) owned by CEA and Matanuska Electric Association, Inc. ("MEA"). Chugach and AEA are referred to individually as a “Party” and collectively as the “Parties.” This Term Sheet and the Proposed Transaction do not cover any sale of oscillation dampening services from MEA to AEA that has occurred or may occur. This Term Sheet is for discussion purposes only and does not contain all matters upon which agreement must be reached in order for the Proposed Transaction to be completed. This Term Sheet is not a binding agreement and does not represent an offer or commitment of any nature from either Party hereto or their respective affiliated entities to engage in negotiations regarding, or to enter into any contract or agreement effecting, the Proposed Transaction contemplated herein. This Term Sheet does not impose any obligation or liability on any Party hereto if the transactions contemplated herein are not consummated. The terms and conditions of this Term Sheet are subject in all respects to the Parties’ satisfactory completion of commercial and legal due diligence; receipt of any necessary board, regulatory, and/or other third-party approvals; confirmation that the Proposed Transaction is consistent with the funding source (Bond Series 11) T&C; and execution by the Parties of one or more binding definitive agreements and other documentation or agreements necessary to effect the transactions contemplated hereby (the “Definitive Agreements”). 1. Terms and Conditions of Proposed Transaction General Terms Buyer: Alaska Energy Authority ("AEA") Seller: Chugach Electric Association, Inc. (“Chugach”) Project providing the service: The BESS located at Chugach's headquarters. Governing Law; Jurisdiction and Venue: Alaska Terms for the purchase of oscillation dampening service from the BESS DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 2 CORE/2065927.0031/191264229.8 Oscillation Dampening Service: AEA shall purchase oscillation dampening service ("ODS") from Sellers using the BESS to address certain expected but unpredictable intermittent instability events causing oscillation problems with the turbines at the Bradley Lake Hydroelectric Project ("Bradley Lake") so that the BESS can be used (subject to the operational limitations of the BESS) to mitigate or eliminate such oscillation problems through contingency reserve response. Seller’s resource for providing ODS 75% of the 40 MW by 2-hour (40MW/80MWh) battery energy storage system co-owned by Chugach and MEA Required Project Work Seller shall provide, and the Definitive Agreements shall include language that ensures, services that are in alignment with the definition of Required Project Work provided in Bond Series 11, as interpreted by the SOA Dept of Law in its memo dated 4/27/22, and as applied by GDS Associates in its letter dated 9/27/22; including that: The service must achieve sound economics and meet nationals standards in the industry Payments to Sellers for the ODS: For the ODS, AEA will make equal monthly payments to Seller of $89,291 per month during the Term, subject to mutually acceptable performance guarantees included in the Definitive Agreements. The monthly payment amount may be revised to reflect a different term depending upon the performance guarantee mechanism that is ultimately agreed upon by the parties in the Definitive Agreement. The AEA monthly payment amount will be modified as necessary to reflect changes associated with Seward Electric System’s wholesale power agreement. Term: The Term of the ODS agreement will be for 15 years from the date of execution of the Definitive Agreements, unless terminated DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 3 CORE/2065927.0031/191264229.8 earlier due to an AEA event of default or any other reason as may be specified in the Definitive Agreements. Operations to Provide for ODS to AEA: Chugach will operate the BESS in a manner that will provide ODS to mitigate oscillations caused by the Bradley Lake Project. The services provided will comply with the Electric Power Systems study: Bradley Lake Oscillation Mitigation Study, dated June 14, 2024. Charging Energy: Chugach shall be responsible, at their cost, for providing or procuring charging energy for any energy loss associated with converting charging energy to discharged energy associated with the ODS. Transmission Charges: Chugach shall be responsible, at their cost, for arranging transmission and wheeling required to deliver Charging Energy and take discharged energy associated with the ODS as may be applicable under tariffs and agreements. O&M Charges: Chugach shall be responsible, at their cost, for all O&M Charges associated with the ODS. Operation of the BESS: Chugach will operate the BESS based on a protocol ("Protocol") to which the Parties mutually agree and that will be attached as an exhibit to the Definitive Agreements. The Protocol shall address operation of the BESS for the ODS. On a quarterly basis, Seller shall provide the BPMC a report on ODS performance and compliance with the protocol. Battery Energy Storage Tax Credit: Buyer shall have no ownership interest in any Federal or State tax credit(s) or related cash amounts for which the BESS qualifies and, to the extent applicable, any other renewable energy, environmental or green attributes associated with the BESS. DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 4 CORE/2065927.0031/191264229.8 The Parties intend that the ODS Definitive Agreements will qualify as a “service contract” as such term is used in Section 7701(e) of the United States Internal Revenue Code of 1986 (“IRC”) and that none of the conditions set forth in IRC Section 7701(e)(4) shall apply. Those conditions that would inhibit the Definitive Agreements from qualifying as a “service contract” under the IRC are as follows: (i) the service recipient (or a related entity) operates such facility. (ii) the service recipient (or a related entity) bears any significant financial burden if there is nonperformance under the contract or arrangement (other than for reasons beyond the control of the service provider), (iii) the service recipient (or a related entity) receives any significant financial benefit if the operating costs of such facility are less than the standards of performance or operation under the contract or arrangement, or (iv) the service recipient (or a related entity) has an option to purchase, or may be required to purchase, all or a part of such facility at a fixed and determinable price (other than for fair market value). For the avoidance of doubt, the Parties do not intend for AEA to (1) operate the BESS facility; (2) pay for BESS service when applicable performance guarantees are not met; (3) receive a significant financial benefit from reduced operating costs; or (3) have an option to purchase all or a part of the BESS facility. Parties intend to make best efforts to collaborate in drafting final agreement(s) that support maximizing eligibility for IRS refundable/direct pay energy property and DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 5 CORE/2065927.0031/191264229.8 bonus tax credits or other tax credits or applicable financial incentives. Additional Provisions The Definitive Agreements shall contain other customary provisions for agreements of this nature, including, but not limited to, provisions related to conditions precedent, billing and payment, measurement and metering, forecasting, curtailment/interruption, events of default, termination, force majeure/excused performance, performance guarantees, limitations on liability, indemnification and confidentiality. 2. Other Terms and Conditions a. Not Binding. This Term Sheet does not constitute, nor is it intended to be, a final agreement between the Parties or a commitment to enter into any binding agreement(s). This Term Sheet, this Term Sheet does not give rise to any binding obligations, express or implied, and neither Party will be liable to the other for the failure to agree upon Definitive Agreements. In addition, neither Party should act or fail to act in detrimental reliance on this Term Sheet. No Party will be legally bound until mutually acceptable final Definitive Agreements containing such terms and conditions as agreed to by the Parties are fully executed by duly authorized representatives. b. Confidentiality. This Term Sheet and any information exchanged between the Parties regarding the Proposed Transaction described in this Term Sheet will be kept confidential to the fullest extent allowed by the laws of the State of Alaska. No Party will make a public announcement regarding the contents of this Term Sheet without prior written consent of the other Parties. c. Costs and Fees. Each Party shall bear and be solely responsible for its own costs, expenses, and legal fees in connection with the preparation and negotiation of this Term Sheet and the preparation and negotiation of any Definitive Agreements. d. Relationship. This Term Sheet will not be construed to determine that a Party is a partner, joint venturer, or fiduciary of the other Party, to create any other form of legal association that would impose liability on one Party for the act or failure to act of the other Party, or to provide either Party with the right, power, or authority (express or implied) to create any duty or obligation of the other Party. DRAFT: Chugach-AEA BESS Service term sheet, mcb 24/9/30 6 CORE/2065927.0031/191264229.8 e. Choice of Law. Interpretation of this Term Sheet will be governed by the laws of the State of Alaska, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction. All disputes arising out of this Term Sheet will be subject to the exclusive jurisdiction of the state and federal courts located in Anchorage, Alaska, as applicable, and each Party consents to the personal jurisdiction of these bodies. f. Term. The terms set forth in this Term Sheet are valid for 120 days from the date hereof and thereafter shall be null and void. [Signature blocks to be added once the Parties agree to this Term Sheet.] AEA Resolution No. 2024-15 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-15 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE PURCHASE FROM GOLDEN VALLEY ELECTRIC ASSOCIATION OF BESS OR RELATED SERVICES WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to accept grants and enter into contracts “for the construction, financing, operation, and maintenance of all or any part of a power project,” “for the sale or transmission of power from a project,” and “acquire battery and other energy storage systems”; and WHEREAS, AEA desires to purchase Battery Energy Storage Systems (BESS) or associated oscillation dampening services for the benefit of the Bradley Lake Hydroelectric Project; and WHEREAS, AEA desires to use $28 million of the proceeds from its $166 million Bond Series 11 issued in December 2022 to perform Required Project Work for the Bradley Lake Hydroelectric Project; and WHEREAS, Bond Series 11 proceeds are required to be spent on Required Project Work, and investment in BESS or oscillation dampening services along the Railbelt was found by the Alaska Department of Law to be Required Project Work; and WHEREAS, GDS Engineering found the purchase of oscillation dampening services using BESSs to be consistent with sound economics and national standards; and WHEREAS, Golden Valley Electric Association desires to provide BESS or associated oscillation dampening services using its BESS to AEA; and WHEREAS, the Board of Directors has reviewed the Term Sheet for a proposed service agreement with Golden Valley Electric Association. AEA Resolution No. 2024-15 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Board of Directors hereby endorses the terms and conditions included in the Term Sheet for the proposed service agreement with Golden Valley Electric Association. Section 2. The AEA Executive Director is authorized to enter into a contract with Golden Valley Electric Association so long as the contract includes no additional material terms and is consistent with all material terms of the Term Sheet except that the contract may deviate only if necessary to meet the definition of Required Project Work with regard to acquiring an ownership interest in the BESS or services associated therewith. Section 3. The AEA Executive Director is authorized and directed to administer the contract referenced in Section 2 above. Section 2. The Executive Director is authorized to take all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Clay Koplin, Chair __________________________ Curtis W. Thayer, Secretary Corporate seal Draft term sheet, AEA 2024/09/30       TERM SHEET FOR GVEA TO PROVIDE TO ALASKA ENERGY AUTHORITY OSCILLATION DAMPENING SERVICE FOR BRADLEY LAKE This term sheet (the “Term Sheet”) is intended to set forth certain terms and conditions being discussed to provide oscillation dampening services from the 46 MW by 2-hour (46MW/92MWh) and/or controls upgrades to GVEA’s existing battery energy storage system (BESS) owned by Golden Valley Electric Association, Inc. (“GVEA” or the “Seller”) , between the Alaska Energy Authority (“AEA”), as “Buyer”, and the Seller (the “Proposed Transaction”). GVEA and AEA are referred to individually as a “Party” and, collectively as the “Parties”. This Term Sheet is for discussion purposes only and does not contain all matters upon which agreement must be reached in order for the Proposed Transaction to be completed. This Term Sheet is not a binding agreement and does not represent an offer or commitment of any nature from either Party hereto or their respective affiliated entities to engage in negotiations regarding, or to enter into any contract or agreement effecting, the Proposed Transaction contemplated herein. This Term Sheet does not impose any obligation or liability on any Party hereto if the transactions contemplated herein are not consummated. The terms and conditions of this Term Sheet are subject in all respects to the Parties’ satisfactory completion of commercial and legal due diligence; receipt of any necessary board, regulatory, and/or other third-party approvals; confirmation that the Proposed Transaction is consistent with the funding source (Bond Series 11) T&C; and execution by the Parties of one or more binding definitive agreements and other documentation or agreements necessary to effect the transactions contemplated hereby (the “Definitive Agreements”). The Parties’ intent for the Proposed Transaction will not be effectuated through the Definitive Agreements until GVEA commissions a replacement or significant upgrade to its existing BESS. 1. Terms and Conditions of Proposed Transaction General Terms Buyer: Alaska Energy Authority ("AEA") Seller: Golden Valley Electric Association, Inc. (“GVEA”) Project Site: The BESS site located in Fairbanks, Alaska. Governing Law; Jurisdiction and Venue: Alaska Terms for the purchase of oscillation dampening service from the BESS DRAFT GVEA-AEA BESS Service term sheet 24/09/30 2 Oscillation Dampening Service: AEA shall purchase oscillation dampening service (“ODS”) from Sellers using the BESS to address certain expected but unpredictable intermittent instability events causing oscillation problems with the turbines at the Bradley Lake Hydroelectric Project ("Bradley Lake") so that the BESS can be used (subject to the operational and warranty limitations of the BESS) to assist with the mitigation of such oscillation problems through contingency reserve response. Payments to Seller for the ODS: For the ODS, AEA will make a net present value monthly payment equal to $4,740,376 , subject to mutually acceptable performance guarantees included in the Definitive Agreements. The monthly payment amount may be revised to reflect a different term depending upon the performance guarantee mechanism that is ultimately agreed upon by the parties in the Definitive Agreement. The AEA monthly payment amount will be modified as necessary to reflect changes associated with Seward Electric System’s wholesale power agreement Seller’s resource for providing ODS 46 MW by 2-hour (46MW/92MWh) battery energy storage system and/or controls upgrades to GVEA’s existing battery energy storage system Required Project Work Seller shall provide, and the Definitive Agreements shall include language that ensures, services that are in alignment with the definition of Required Project Work provided in Bond Series 11, as interpreted by the SOA Dept of Law in its memo dated 4/27/22, and as applied by GDS Associates in its letter dated 9/27/22; including that: The service must achieve sound economics and meet nationals standards in the industry, and the service must be provided by “a replacement or significant DRAFT GVEA-AEA BESS Service term sheet 24/09/30 3 upgrade to Golden Valley Electric’s (GVEA) existing BESS“ (RPW memo) Term: The Term of the ODS agreement will be for 15 years from the BESS commercial operation date, or in the event controls upgrades for GVEA’s existing BESS, the date of completion and commissioning of the controls modifications, unless terminated earlier due to an AEA event of default or any other reason as may be specified in the Definitive Agreements. Operations to Provide for ODS to AEA: GVEA will operate the BESS in a manner that assists in mitigating oscillations caused by the Bradley Lake Project. Charging Energy: GVEA shall be responsible, at its cost, for providing or procuring charging energy for any energy loss associated with converting charging energy to discharged energy associated with the ODS. Transmission Charges: GVEA shall be responsible, at its cost, for arranging transmission and wheeling required to deliver Charging Energy and take discharged energy associated with the ODS as may be applicable under tariffs and agreements. O&M Charges: GVEA shall be responsible, at its cost, for all O&M Charges associated with the oscillation dampening service. DRAFT GVEA-AEA BESS Service term sheet 24/09/30 4 Operation of the BESS: GVEA will operate the BESS based on a protocol ("Protocol") to which the Parties mutually agree that will be attached as an exhibit to the Definitive Agreements. The Protocol shall address operation of the BESS for the ODS. The Protocol shall also address how the ODS from all Railbelt BESS systems will work collectively. On a quarterly basis, Seller shall provide the BPMC a report on ODS performance and compliance with the protocol. Battery Energy Storage Tax Credit: As the owner of the BESS, Seller shall own any Federal or State tax credit(s) or related cash amounts for which the BESS qualifies and, to the extent applicable, any other renewable energy, environmental or green attributes associated with the BESS. The Parties intend that the ODS Definitive Agreements will qualify as a “service contract” as such term is used in Section 7701(e) of the United States Internal Revenue Code of 1986 (“IRC”) and that none of the conditions set forth in IRC Section 7701(e)(4) shall apply. Those conditions that would inhibit the Definitive Agreements from qualifying as a “service contract” under the IRC are as follows: (i) the service recipient (or a related entity) operates such facility. (ii) the service recipient (or a related entity) bears any significant financial burden if there is nonperformance under the contract or arrangement (other than for reasons beyond the control of the service provider), (iii) the service recipient (or a related entity) receives any significant financial benefit if the operating costs of such facility are less than the standards of performance or operation under the contract or arrangement, or DRAFT GVEA-AEA BESS Service term sheet 24/09/30 5 (iv) the service recipient (or a related entity) has an option to purchase, or may be required to purchase, all or a part of such facility at a fixed and determinable price (other than for fair market value). For the avoidance of doubt, the Parties do not intend for AEA to (1) operate the BESS facility; (2) receive a significant financial benefit from reduced operating costs; or (3) have an option to purchase all or a part of the BESS facility. Parties intend to make best efforts to collaborate in drafting final agreement(s) that support maximizing eligibility for IRS refundable/direct pay energy property and bonus tax credits or other tax credits or applicable financial incentives. Additional Provisions The Definitive Agreements shall contain other customary provisions for agreements of this nature, including, but not limited to, provisions related to conditions precedent, billing and payment, measurement and metering, forecasting, curtailment/interruption, events of default, termination, force majeure/excused performance, performance expectations, limitations on liability, indemnification and confidentiality. 2. Other Terms and Conditions a. Not Binding. This Term Sheet does not constitute, nor is it intended to be, a final agreement between the Parties or a commitment to enter into any binding agreement(s). This Term Sheet does not give rise to any binding obligations, express or implied, and neither Party will be liable to the other for the failure to agree upon Definitive Agreements. In addition, neither Party should act or fail to act in detrimental reliance on this Term Sheet. No Party will be legally bound until mutually acceptable final Definitive Agreements containing such terms and conditions as agreed to by the Parties are fully executed by duly authorized representatives. DRAFT GVEA-AEA BESS Service term sheet 24/09/30 6 b. Confidentiality. This Term Sheet and any information exchanged between the Parties regarding the Proposed Transaction described in this Term Sheet will be kept confidential to the fullest extent allowed by the laws of the State of Alaska. No Party will make a public announcement regarding the contents of this Term Sheet without prior written consent of the other Parties. c. Costs and Fees. Each Party shall bear and be solely responsible for its own costs, expenses, and legal fees in connection with the preparation and negotiation of this Term Sheet and the preparation and negotiation of any Definitive Agreements. d. Relationship. This Term Sheet will not be construed to determine that a Party is a partner, joint venturer, or fiduciary of the other Party, to create any other form of legal association that would impose liability on one Party for the act or failure to act of the other Party, or to provide either Party with the right, power, or authority (express or implied) to create any duty or obligation of the other Party. e. Choice of Law. Interpretation of this Term Sheet will be governed by the laws of the State of Alaska, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction. All disputes arising out of this Term Sheet will be subject to the exclusive jurisdiction of the state and federal courts located in Anchorage, Alaska, as applicable, and each Party consents to the personal jurisdiction of these bodies. f. Term. The terms set forth in this Term Sheet are valid for 120 days from the date hereof and thereafter shall be null and void. [Signature blocks to be added once the Parties agree to this Term Sheet.] AEA Resolution No. 2024-15 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-15 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE PURCHASE FROM GOLDEN VALLEY ELECTRIC ASSOCIATION OF BESS OR RELATED SERVICES WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to accept grants and enter into contracts “for the construction, financing, operation, and maintenance of all or any part of a power project,” “for the sale or transmission of power from a project,” and “acquire battery and other energy storage systems”; and WHEREAS, AEA desires to purchase Battery Energy Storage Systems (BESS) or associated oscillation dampening services for the benefit of the Bradley Lake Hydroelectric Project; and WHEREAS, AEA desires to use $28 million of the proceeds from its $166 million Bond Series 11 issued in December 2022 to perform Required Project Work for the Bradley Lake Hydroelectric Project; and WHEREAS, Bond Series 11 proceeds are required to be spent on Required Project Work, and investment in BESS or oscillation dampening services along the Railbelt was found by the Alaska Department of Law to be Required Project Work; and WHEREAS, GDS Engineering found the purchase of oscillation dampening services using BESSs to be consistent with sound economics and national standards; and WHEREAS, Golden Valley Electric Association desires to provide BESS or associated oscillation dampening services using its BESS to AEA; and WHEREAS, the Board of Directors has reviewed the Term Sheet for a proposed service agreement with Golden Valley Electric Association. AEA Resolution No. 2024-15 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Board of Directors hereby endorses the terms and conditions included in the Term Sheet for the proposed service agreement with Golden Valley Electric Association. Section 2. The AEA Executive Director is authorized to enter into a contract with Golden Valley Electric Association so long as the contract includes no additional material terms and is consistent with all material terms of the Term Sheet except that the contract may deviate only if necessary to meet the definition of Required Project Work with regard to acquiring an ownership interest in the BESS or services associated therewith. Section 3. The AEA Executive Director is authorized and directed to administer the contract referenced in Section 2 above. Section 2. The Executive Director is authorized to take all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Clay Koplin, Chair __________________________ Curtis W. Thayer, Secretary Corporate seal Draft term sheet, AEA 2024/09/30       TERM SHEET FOR GVEA TO PROVIDE TO ALASKA ENERGY AUTHORITY OSCILLATION DAMPENING SERVICE FOR BRADLEY LAKE This term sheet (the “Term Sheet”) is intended to set forth certain terms and conditions being discussed to provide oscillation dampening services from the 46 MW by 2-hour (46MW/92MWh) and/or controls upgrades to GVEA’s existing battery energy storage system (BESS) owned by Golden Valley Electric Association, Inc. (“GVEA” or the “Seller”) , between the Alaska Energy Authority (“AEA”), as “Buyer”, and the Seller (the “Proposed Transaction”). GVEA and AEA are referred to individually as a “Party” and, collectively as the “Parties”. This Term Sheet is for discussion purposes only and does not contain all matters upon which agreement must be reached in order for the Proposed Transaction to be completed. This Term Sheet is not a binding agreement and does not represent an offer or commitment of any nature from either Party hereto or their respective affiliated entities to engage in negotiations regarding, or to enter into any contract or agreement effecting, the Proposed Transaction contemplated herein. This Term Sheet does not impose any obligation or liability on any Party hereto if the transactions contemplated herein are not consummated. The terms and conditions of this Term Sheet are subject in all respects to the Parties’ satisfactory completion of commercial and legal due diligence; receipt of any necessary board, regulatory, and/or other third-party approvals; confirmation that the Proposed Transaction is consistent with the funding source (Bond Series 11) T&C; and execution by the Parties of one or more binding definitive agreements and other documentation or agreements necessary to effect the transactions contemplated hereby (the “Definitive Agreements”). The Parties’ intent for the Proposed Transaction will not be effectuated through the Definitive Agreements until GVEA commissions a replacement or significant upgrade to its existing BESS. 1. Terms and Conditions of Proposed Transaction General Terms Buyer: Alaska Energy Authority ("AEA") Seller: Golden Valley Electric Association, Inc. (“GVEA”) Project Site: The BESS site located in Fairbanks, Alaska. Governing Law; Jurisdiction and Venue: Alaska Terms for the purchase of oscillation dampening service from the BESS DRAFT GVEA-AEA BESS Service term sheet 24/09/30 2 Oscillation Dampening Service: AEA shall purchase oscillation dampening service (“ODS”) from Sellers using the BESS to address certain expected but unpredictable intermittent instability events causing oscillation problems with the turbines at the Bradley Lake Hydroelectric Project ("Bradley Lake") so that the BESS can be used (subject to the operational and warranty limitations of the BESS) to assist with the mitigation of such oscillation problems through contingency reserve response. Payments to Seller for the ODS: For the ODS, AEA will make a net present value monthly payment equal to $4,740,376 , subject to mutually acceptable performance guarantees included in the Definitive Agreements. The monthly payment amount may be revised to reflect a different term depending upon the performance guarantee mechanism that is ultimately agreed upon by the parties in the Definitive Agreement. The AEA monthly payment amount will be modified as necessary to reflect changes associated with Seward Electric System’s wholesale power agreement Seller’s resource for providing ODS 46 MW by 2-hour (46MW/92MWh) battery energy storage system and/or controls upgrades to GVEA’s existing battery energy storage system Required Project Work Seller shall provide, and the Definitive Agreements shall include language that ensures, services that are in alignment with the definition of Required Project Work provided in Bond Series 11, as interpreted by the SOA Dept of Law in its memo dated 4/27/22, and as applied by GDS Associates in its letter dated 9/27/22; including that: The service must achieve sound economics and meet nationals standards in the industry, and the service must be provided by “a replacement or significant DRAFT GVEA-AEA BESS Service term sheet 24/09/30 3 upgrade to Golden Valley Electric’s (GVEA) existing BESS“ (RPW memo) Term: The Term of the ODS agreement will be for 15 years from the BESS commercial operation date, or in the event controls upgrades for GVEA’s existing BESS, the date of completion and commissioning of the controls modifications, unless terminated earlier due to an AEA event of default or any other reason as may be specified in the Definitive Agreements. Operations to Provide for ODS to AEA: GVEA will operate the BESS in a manner that assists in mitigating oscillations caused by the Bradley Lake Project. Charging Energy: GVEA shall be responsible, at its cost, for providing or procuring charging energy for any energy loss associated with converting charging energy to discharged energy associated with the ODS. Transmission Charges: GVEA shall be responsible, at its cost, for arranging transmission and wheeling required to deliver Charging Energy and take discharged energy associated with the ODS as may be applicable under tariffs and agreements. O&M Charges: GVEA shall be responsible, at its cost, for all O&M Charges associated with the oscillation dampening service. DRAFT GVEA-AEA BESS Service term sheet 24/09/30 4 Operation of the BESS: GVEA will operate the BESS based on a protocol ("Protocol") to which the Parties mutually agree that will be attached as an exhibit to the Definitive Agreements. The Protocol shall address operation of the BESS for the ODS. The Protocol shall also address how the ODS from all Railbelt BESS systems will work collectively. On a quarterly basis, Seller shall provide the BPMC a report on ODS performance and compliance with the protocol. Battery Energy Storage Tax Credit: As the owner of the BESS, Seller shall own any Federal or State tax credit(s) or related cash amounts for which the BESS qualifies and, to the extent applicable, any other renewable energy, environmental or green attributes associated with the BESS. The Parties intend that the ODS Definitive Agreements will qualify as a “service contract” as such term is used in Section 7701(e) of the United States Internal Revenue Code of 1986 (“IRC”) and that none of the conditions set forth in IRC Section 7701(e)(4) shall apply. Those conditions that would inhibit the Definitive Agreements from qualifying as a “service contract” under the IRC are as follows: (i) the service recipient (or a related entity) operates such facility. (ii) the service recipient (or a related entity) bears any significant financial burden if there is nonperformance under the contract or arrangement (other than for reasons beyond the control of the service provider), (iii) the service recipient (or a related entity) receives any significant financial benefit if the operating costs of such facility are less than the standards of performance or operation under the contract or arrangement, or DRAFT GVEA-AEA BESS Service term sheet 24/09/30 5 (iv) the service recipient (or a related entity) has an option to purchase, or may be required to purchase, all or a part of such facility at a fixed and determinable price (other than for fair market value). For the avoidance of doubt, the Parties do not intend for AEA to (1) operate the BESS facility; (2) receive a significant financial benefit from reduced operating costs; or (3) have an option to purchase all or a part of the BESS facility. Parties intend to make best efforts to collaborate in drafting final agreement(s) that support maximizing eligibility for IRS refundable/direct pay energy property and bonus tax credits or other tax credits or applicable financial incentives. Additional Provisions The Definitive Agreements shall contain other customary provisions for agreements of this nature, including, but not limited to, provisions related to conditions precedent, billing and payment, measurement and metering, forecasting, curtailment/interruption, events of default, termination, force majeure/excused performance, performance expectations, limitations on liability, indemnification and confidentiality. 2. Other Terms and Conditions a. Not Binding. This Term Sheet does not constitute, nor is it intended to be, a final agreement between the Parties or a commitment to enter into any binding agreement(s). This Term Sheet does not give rise to any binding obligations, express or implied, and neither Party will be liable to the other for the failure to agree upon Definitive Agreements. In addition, neither Party should act or fail to act in detrimental reliance on this Term Sheet. No Party will be legally bound until mutually acceptable final Definitive Agreements containing such terms and conditions as agreed to by the Parties are fully executed by duly authorized representatives. DRAFT GVEA-AEA BESS Service term sheet 24/09/30 6 b. Confidentiality. This Term Sheet and any information exchanged between the Parties regarding the Proposed Transaction described in this Term Sheet will be kept confidential to the fullest extent allowed by the laws of the State of Alaska. No Party will make a public announcement regarding the contents of this Term Sheet without prior written consent of the other Parties. c. Costs and Fees. Each Party shall bear and be solely responsible for its own costs, expenses, and legal fees in connection with the preparation and negotiation of this Term Sheet and the preparation and negotiation of any Definitive Agreements. d. Relationship. This Term Sheet will not be construed to determine that a Party is a partner, joint venturer, or fiduciary of the other Party, to create any other form of legal association that would impose liability on one Party for the act or failure to act of the other Party, or to provide either Party with the right, power, or authority (express or implied) to create any duty or obligation of the other Party. e. Choice of Law. Interpretation of this Term Sheet will be governed by the laws of the State of Alaska, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction. All disputes arising out of this Term Sheet will be subject to the exclusive jurisdiction of the state and federal courts located in Anchorage, Alaska, as applicable, and each Party consents to the personal jurisdiction of these bodies. f. Term. The terms set forth in this Term Sheet are valid for 120 days from the date hereof and thereafter shall be null and void. [Signature blocks to be added once the Parties agree to this Term Sheet.] AEA Resolution No. 2024-16 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-16 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE PURCHASE FROM MATANUSKA ELECTRIC ASSOCIATION OF BESS OR RELATED SERVICES WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to accept grants and enter into contracts “for the construction, financing, operation, and maintenance of all or any part of a power project,” “for the sale or transmission of power from a project,” and “acquire battery and other energy storage systems”; and WHEREAS, AEA desires to purchase Battery Energy Storage Systems (BESS) or associated oscillation dampening services for the benefit of the Bradley Lake Hydroelectric Project; and WHEREAS, AEA desires to use $28 million of the proceeds from its $166 million Bond Series 11 issued in December 2022 to perform Required Project Work for the Bradley Lake Hydroelectric Project; and WHEREAS, Bond Series 11 proceeds are required to be spent on Required Project Work, and investment in BESS or associated oscillation dampening services along the Railbelt was found by the Alaska Department of Law to be Required Project Work; and WHEREAS, GDS Engineering found the purchase of oscillation dampening services using BESSs to be consistent with sound economics and national standards; and WHEREAS, Matanuska Electric Association desires to provide BESS or associated oscillation dampening services using its BESS to AEA; and WHEREAS, the Board of Directors has reviewed the Term Sheet for a proposed service agreement with Matanuska Electric Association. AEA Resolution No. 2024-16 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Board of Directors hereby endorses the terms and conditions included in the Term Sheet for the proposed service agreement with Matanuska Electric Association. Section 2. The AEA Executive Director is authorized to enter into a contract with Matanuska Electric Association so long as the contract includes no additional material terms and is consistent with all material terms of the Term Sheet except that the contract may deviate only if necessary to meet the definition of Required Project Work with regard to acquiring an ownership interest in the BESS or services associated therewith. Section 3. The AEA Executive Director is authorized and directed to administer the contract referenced in Section 2 above. Section 2. The Executive Director is authorized to take all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Clay Koplin, Chair __________________________ Curtis W. Thayer, Secretary Corporate seal Draft term sheet, AEA 2024/09/30 CORE/2065927.0031/191264229.8 TERM SHEET FOR MEA TO PROVIDE TO ALASKA ENERGY AUTHORITY OSCILLATION DAMPENING SERVICE FOR BRADLEY LAKE This term sheet (the “Term Sheet”) is intended to set forth certain terms and conditions being discussed for the “Proposed Transaction” in which Matanuska Electric Association, Inc. (“MEA” and “Seller”) would provide Alaska Energy Authority (“AEA” and “Buyer”) oscillation dampening services from the 40 MW by 2-hour (40MW/80MWh) battery energy storage system (“BESS”) owned by MEA and Chugach Electric Association, Inc. ("Chugach"). MEA and AEA are referred to individually as a “Party” and collectively as the “Parties .” This Term Sheet and the Proposed Transaction do not cover any sale of oscillation dampening services from Chugach to AEA that has occurred or may occur. This Term Sheet is for discussion purposes only and does not contain all matters upon which agreement must be reached in order for the Proposed Transaction to be completed. This Term Sheet is not a binding agreement and does not represent an offer or commitment of any nature from either Party hereto or their respective affiliated entities to engage in negotiations regarding, or to enter into any contract or agreement effecting, the Proposed Transaction contemplated herein. This Term Sheet does not impose any obligation or liability on any Party hereto if the transactions contemplated herein are not consummated. The terms and conditions of this Term Sheet are subject in all respects to the Parties’ satisfactory completion of commercial and legal due diligence; receipt of any necessary board, regulatory, and/or other third-party approvals; confirmation that the Proposed Transaction is consistent with the funding source (Bond Series 11) T&C; and execution by the Parties of one or more binding definitive agreements and other documentation or agreements necessary to effect the transactions contemplated hereby (the “Definitive Agreements”). 1. Terms and Conditions of Proposed Transaction General Terms Buyer : Alaska Energy Authority ("AEA") Seller : Matanuska Electric Association, Inc. (“MEA”) Project providing the service: The BESS located at Chugach's headquarters. Governing Law; Jurisdiction and Venue: Alaska Terms for the purchase of oscillation dampening service from the BESS DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 2 CORE/2065927.0031/191264229.8 Oscillation Dampening Service: AEA shall purchase oscillation dampening service ("ODS") from Sellers using the BESS to address certain expected but unpredictable intermittent instability events causing oscillation problems with the turbines at the Bradley Lake Hydroelectric Project ("Bradley Lake") so that the BESS can be used (subject to the operational limitations of the BESS) to mitigate or eliminate such oscillation problems through contingency reserve response. Seller’s resource for providing ODS 25% of the 40 MW by 2-hour (40MW/80MWh) battery energy storage system co-owned by Chugach and MEA Required Project Work Seller shall provide, and the Definitive Agreements shall include language that ensures, services that are in alignment with the definition of Required Project Work provided in Bond Series 11, as interpreted by the SOA Dept of Law in its memo dated 4/27/22, and as applied by GDS Associates in its letter dated 9/27/22; including that: The service must achieve sound economics and meet nationals standards in the industry Payments to Sellers for the ODS: For the ODS, AEA will make equal monthly payments to Sellers of $21,505 per month during the Term, The monthly payment amount may be revised to reflect a different term depending upon the performance guarantee mechanism that is ultimately agreed upon by the parties in the Definitive Agreement. subject to mutually acceptable performance guarantees included in the Definitive Agreements. The AEA monthly payment amount will be modified as necessary to reflect changes associated with Seward Electric System’s wholesale power agreement. Term: The Term of the ODS agreement will be for 15 years from the date of execution of the Definitive Agreements, unless terminated DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 3 CORE/2065927.0031/191264229.8 earlier due to an AEA event of default or any other reason as may be specified in the Definitive Agreements. Operations to Provide for ODS to AEA: MEA will operate the BESS in a manner that will provide ODS to mitigate oscillations caused by the Bradley Lake Project. The services provided will comply with the Electric Power Systems study: Bradley Lake Oscillation Mitigation Study, dated June 14, 2024. Charging Energy: MEA shall be responsible, at their cost, for providing or procuring charging energy for any energy loss associated with converting charging energy to discharged energy associated with the ODS. Transmission Charges: MEA shall be responsible, at their cost, for arranging transmission and wheeling required to deliver Charging Energy and take discharged energy associated with the ODS as may be applicable under tariffs and agreements. O&M Charges: MEA shall be responsible, at their cost, for all O&M Charges associated with the ODS. Operation of the BESS: MEA will operate the BESS based on a protocol ("Protocol") to which the Parties mutually agree and that will be attached as an exhibit to the Definitive Agreements. The Protocol shall address operation of the BESS for the ODS. On a quarterly basis, Seller shall provide the BPMC a report on ODS performance and compliance with the protocol. Battery Energy Storage Tax Credit: Buyer shall have no ownership interest in any Federal or State tax credit(s) or related cash amounts for which the BESS qualifies and, to the extent applicable, any other renewable energy, environmental or green attributes associated with the BESS. The Parties intend that the ODS Definitive Agreements will qualify as a “service contract” DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 4 CORE/2065927.0031/191264229.8 as such term is used in Section 7701(e) of the United States Internal Revenue Code of 1986 (“IRC”) and that none of the conditions set forth in IRC Section 7701(e)(4) shall apply. Those conditions that would inhibit the Definitive Agreements from qualifying as a “service contract” under the IRC are as follows: (i) the service recipient (or a related entity) operates such facility. (ii) the service recipient (or a related entity) bears any significant financial burden if there is nonperformance under the contract or arrangement (other than for reasons beyond the control of the service provider), (iii) the service recipient (or a related entity) receives any significant financial benefit if the operating costs of such facility are less than the standards of performance or operation under the contract or arrangement, or (iv) the service recipient (or a related entity) has an option to purchase, or may be required to purchase, all or a part of such facility at a fixed and determinable price (other than for fair market value). For the avoidance of doubt, the Parties do not intend for AEA to (1) operate the BESS facility; (2) pay for BESS service when applicable performance guarantees are not met; (3) receive a significant financial benefit from reduced operating costs; or (3) have an option to purchase all or a part of the BESS facility. Parties intend to make best efforts to collaborate in drafting final agreement(s) that support maximizing eligibility for IRS refundable/direct pay energy property and bonus tax credits or other tax credits or applicable financial incentives. DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 5 CORE/2065927.0031/191264229.8 Additional Provisions The Definitive Agreements shall contain other customary provisions for agreements of this nature, including, but not limited to, provisions related to conditions precedent, billing and payment, measurement and metering, forecasting, curtailment/interruption, events of default, termination, force majeure/excused performance, performance guarantees, limitations on liability, indemnification and confidentiality. 2. Other Term s and Conditions a. Not Binding. This Term Sheet does not constitute, nor is it intended to be, a final agreement between the Parties or a commitment to enter into any binding agreement(s). This Term Sheet, this Term Sheet does not give rise to any binding obligations, express or implied, and neither Party will be liable to the other for the failure to agree upon Definitive Agreements. In addition, neither Party should act or fail to act in detrimental reliance on this Term Sheet. No Party will be legally bound until mutually acceptable final Definitive Agreements containing such terms and conditions as agreed to by the Parties are fully executed by duly authorized representatives. b. Confidentiality. This Term Sheet and any information exchanged between the Parties regarding the Proposed Transaction described in this Term Sheet will be kept confidential to the fullest extent allowed by the laws of the State of Alaska. No Party will make a public announcement regarding the contents of this Term Sheet without prior written consent of the other Parties. c. Costs and Fees. Each Party shall bear and be solely responsible for its own costs, expenses, and legal fees in connection with the preparation and negotiation of this Term Sheet and the preparation and negotiation of any Definitive Agreements. d. Relationship. This Term Sheet will not be construed to determine that a Party is a partner, joint venturer, or fiduciary of the other Party, to create any other form of legal association that would impose liability on one Party for the act or failure to act of the other Party, or to provide either Party with the right, power, or authority (express or implied) to create any duty or obligation of the other Party. e. Choice of Law. Interpretation of this Term Sheet will be governed by the laws of the State of Alaska, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction. All disputes arising out of this Term Sheet will be subject to the exclusive jurisdiction of the state and DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 6 CORE/2065927.0031/191264229.8 federal courts located in Anchorage, Alaska, as applicable, and each Party consents to the personal jurisdiction of these bodies. f. Term. The terms set forth in this Term Sheet are valid for 120 days from the date hereof and thereafter shall be null and void. [Signature blocks to be added once the Parties agree to this Term Sheet.] AEA Resolution No. 2024-16 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-16 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE PURCHASE FROM MATANUSKA ELECTRIC ASSOCIATION OF BESS OR RELATED SERVICES WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to accept grants and enter into contracts “for the construction, financing, operation, and maintenance of all or any part of a power project,” “for the sale or transmission of power from a project,” and “acquire battery and other energy storage systems”; and WHEREAS, AEA desires to purchase Battery Energy Storage Systems (BESS) or associated oscillation dampening services for the benefit of the Bradley Lake Hydroelectric Project; and WHEREAS, AEA desires to use $28 million of the proceeds from its $166 million Bond Series 11 issued in December 2022 to perform Required Project Work for the Bradley Lake Hydroelectric Project; and WHEREAS, Bond Series 11 proceeds are required to be spent on Required Project Work, and investment in BESS or associated oscillation dampening services along the Railbelt was found by the Alaska Department of Law to be Required Project Work; and WHEREAS, GDS Engineering found the purchase of oscillation dampening services using BESSs to be consistent with sound economics and national standards; and WHEREAS, Matanuska Electric Association desires to provide BESS or associated oscillation dampening services using its BESS to AEA; and WHEREAS, the Board of Directors has reviewed the Term Sheet for a proposed service agreement with Matanuska Electric Association. AEA Resolution No. 2024-16 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: Section 1. The Board of Directors hereby endorses the terms and conditions included in the Term Sheet for the proposed service agreement with Matanuska Electric Association. Section 2. The AEA Executive Director is authorized to enter into a contract with Matanuska Electric Association so long as the contract includes no additional material terms and is consistent with all material terms of the Term Sheet except that the contract may deviate only if necessary to meet the definition of Required Project Work with regard to acquiring an ownership interest in the BESS or services associated therewith. Section 3. The AEA Executive Director is authorized and directed to administer the contract referenced in Section 2 above. Section 2. The Executive Director is authorized to take all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Clay Koplin, Chair __________________________ Curtis W. Thayer, Secretary Corporate seal Draft term sheet, AEA 2024/09/30 CORE/2065927.0031/191264229.8 TERM SHEET FOR MEA TO PROVIDE TO ALASKA ENERGY AUTHORITY OSCILLATION DAMPENING SERVICE FOR BRADLEY LAKE This term sheet (the “Term Sheet”) is intended to set forth certain terms and conditions being discussed for the “Proposed Transaction” in which Matanuska Electric Association, Inc. (“MEA” and “Seller”) would provide Alaska Energy Authority (“AEA” and “Buyer”) oscillation dampening services from the 40 MW by 2-hour (40MW/80MWh) battery energy storage system (“BESS”) owned by MEA and Chugach Electric Association, Inc. ("Chugach"). MEA and AEA are referred to individually as a “Party” and collectively as the “Parties .” This Term Sheet and the Proposed Transaction do not cover any sale of oscillation dampening services from Chugach to AEA that has occurred or may occur. This Term Sheet is for discussion purposes only and does not contain all matters upon which agreement must be reached in order for the Proposed Transaction to be completed. This Term Sheet is not a binding agreement and does not represent an offer or commitment of any nature from either Party hereto or their respective affiliated entities to engage in negotiations regarding, or to enter into any contract or agreement effecting, the Proposed Transaction contemplated herein. This Term Sheet does not impose any obligation or liability on any Party hereto if the transactions contemplated herein are not consummated. The terms and conditions of this Term Sheet are subject in all respects to the Parties’ satisfactory completion of commercial and legal due diligence; receipt of any necessary board, regulatory, and/or other third-party approvals; confirmation that the Proposed Transaction is consistent with the funding source (Bond Series 11) T&C; and execution by the Parties of one or more binding definitive agreements and other documentation or agreements necessary to effect the transactions contemplated hereby (the “Definitive Agreements”). 1. Terms and Conditions of Proposed Transaction General Terms Buyer : Alaska Energy Authority ("AEA") Seller : Matanuska Electric Association, Inc. (“MEA”) Project providing the service: The BESS located at Chugach's headquarters. Governing Law; Jurisdiction and Venue: Alaska Terms for the purchase of oscillation dampening service from the BESS DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 2 CORE/2065927.0031/191264229.8 Oscillation Dampening Service: AEA shall purchase oscillation dampening service ("ODS") from Sellers using the BESS to address certain expected but unpredictable intermittent instability events causing oscillation problems with the turbines at the Bradley Lake Hydroelectric Project ("Bradley Lake") so that the BESS can be used (subject to the operational limitations of the BESS) to mitigate or eliminate such oscillation problems through contingency reserve response. Seller’s resource for providing ODS 25% of the 40 MW by 2-hour (40MW/80MWh) battery energy storage system co-owned by Chugach and MEA Required Project Work Seller shall provide, and the Definitive Agreements shall include language that ensures, services that are in alignment with the definition of Required Project Work provided in Bond Series 11, as interpreted by the SOA Dept of Law in its memo dated 4/27/22, and as applied by GDS Associates in its letter dated 9/27/22; including that: The service must achieve sound economics and meet nationals standards in the industry Payments to Sellers for the ODS: For the ODS, AEA will make equal monthly payments to Sellers of $21,505 per month during the Term, The monthly payment amount may be revised to reflect a different term depending upon the performance guarantee mechanism that is ultimately agreed upon by the parties in the Definitive Agreement. subject to mutually acceptable performance guarantees included in the Definitive Agreements. The AEA monthly payment amount will be modified as necessary to reflect changes associated with Seward Electric System’s wholesale power agreement. Term: The Term of the ODS agreement will be for 15 years from the date of execution of the Definitive Agreements, unless terminated DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 3 CORE/2065927.0031/191264229.8 earlier due to an AEA event of default or any other reason as may be specified in the Definitive Agreements. Operations to Provide for ODS to AEA: MEA will operate the BESS in a manner that will provide ODS to mitigate oscillations caused by the Bradley Lake Project. The services provided will comply with the Electric Power Systems study: Bradley Lake Oscillation Mitigation Study, dated June 14, 2024. Charging Energy: MEA shall be responsible, at their cost, for providing or procuring charging energy for any energy loss associated with converting charging energy to discharged energy associated with the ODS. Transmission Charges: MEA shall be responsible, at their cost, for arranging transmission and wheeling required to deliver Charging Energy and take discharged energy associated with the ODS as may be applicable under tariffs and agreements. O&M Charges: MEA shall be responsible, at their cost, for all O&M Charges associated with the ODS. Operation of the BESS: MEA will operate the BESS based on a protocol ("Protocol") to which the Parties mutually agree and that will be attached as an exhibit to the Definitive Agreements. The Protocol shall address operation of the BESS for the ODS. On a quarterly basis, Seller shall provide the BPMC a report on ODS performance and compliance with the protocol. Battery Energy Storage Tax Credit: Buyer shall have no ownership interest in any Federal or State tax credit(s) or related cash amounts for which the BESS qualifies and, to the extent applicable, any other renewable energy, environmental or green attributes associated with the BESS. The Parties intend that the ODS Definitive Agreements will qualify as a “service contract” DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 4 CORE/2065927.0031/191264229.8 as such term is used in Section 7701(e) of the United States Internal Revenue Code of 1986 (“IRC”) and that none of the conditions set forth in IRC Section 7701(e)(4) shall apply. Those conditions that would inhibit the Definitive Agreements from qualifying as a “service contract” under the IRC are as follows: (i) the service recipient (or a related entity) operates such facility. (ii) the service recipient (or a related entity) bears any significant financial burden if there is nonperformance under the contract or arrangement (other than for reasons beyond the control of the service provider), (iii) the service recipient (or a related entity) receives any significant financial benefit if the operating costs of such facility are less than the standards of performance or operation under the contract or arrangement, or (iv) the service recipient (or a related entity) has an option to purchase, or may be required to purchase, all or a part of such facility at a fixed and determinable price (other than for fair market value). For the avoidance of doubt, the Parties do not intend for AEA to (1) operate the BESS facility; (2) pay for BESS service when applicable performance guarantees are not met; (3) receive a significant financial benefit from reduced operating costs; or (3) have an option to purchase all or a part of the BESS facility. Parties intend to make best efforts to collaborate in drafting final agreement(s) that support maximizing eligibility for IRS refundable/direct pay energy property and bonus tax credits or other tax credits or applicable financial incentives. DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 5 CORE/2065927.0031/191264229.8 Additional Provisions The Definitive Agreements shall contain other customary provisions for agreements of this nature, including, but not limited to, provisions related to conditions precedent, billing and payment, measurement and metering, forecasting, curtailment/interruption, events of default, termination, force majeure/excused performance, performance guarantees, limitations on liability, indemnification and confidentiality. 2. Other Term s and Conditions a. Not Binding. This Term Sheet does not constitute, nor is it intended to be, a final agreement between the Parties or a commitment to enter into any binding agreement(s). This Term Sheet, this Term Sheet does not give rise to any binding obligations, express or implied, and neither Party will be liable to the other for the failure to agree upon Definitive Agreements. In addition, neither Party should act or fail to act in detrimental reliance on this Term Sheet. No Party will be legally bound until mutually acceptable final Definitive Agreements containing such terms and conditions as agreed to by the Parties are fully executed by duly authorized representatives. b. Confidentiality. This Term Sheet and any information exchanged between the Parties regarding the Proposed Transaction described in this Term Sheet will be kept confidential to the fullest extent allowed by the laws of the State of Alaska. No Party will make a public announcement regarding the contents of this Term Sheet without prior written consent of the other Parties. c. Costs and Fees. Each Party shall bear and be solely responsible for its own costs, expenses, and legal fees in connection with the preparation and negotiation of this Term Sheet and the preparation and negotiation of any Definitive Agreements. d. Relationship. This Term Sheet will not be construed to determine that a Party is a partner, joint venturer, or fiduciary of the other Party, to create any other form of legal association that would impose liability on one Party for the act or failure to act of the other Party, or to provide either Party with the right, power, or authority (express or implied) to create any duty or obligation of the other Party. e. Choice of Law. Interpretation of this Term Sheet will be governed by the laws of the State of Alaska, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction. All disputes arising out of this Term Sheet will be subject to the exclusive jurisdiction of the state and DRAFT: MEA-AEA BESS Service term sheet, mcb 24/9/30 6 CORE/2065927.0031/191264229.8 federal courts located in Anchorage, Alaska, as applicable, and each Party consents to the personal jurisdiction of these bodies. f. Term. The terms set forth in this Term Sheet are valid for 120 days from the date hereof and thereafter shall be null and void. [Signature blocks to be added once the Parties agree to this Term Sheet.] 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM TO: Board of Directors FROM: Curtis Thayer, Executive Director DATE: October 22, 2024 SUBJECT: AEA Board Meeting Schedule Per the proposed new AEA Bylaws, AEA Board is to hold its annual meeting the 3rd quarter if each calendar year and shall hold regular meetings quarterly. The annual meeting shall also constitute a regular meeting. The Board Chair may call special meetings as necessary. At the September Board meeting, members agreed Thursday would be the best day for Board meetings. Below is the proposed schedule for the next year: AEA Board Meeting 4th Thursday: January 23, 2025 April 24, 2025 July 24, 2025 October 23, 2025 DraftAlaska Energy Authority (A Component Unit of the State of Alaska) Basic Financial Statements and Schedules For the Year Ended June 30, 2024 (With Independent Auditor’s Report Thereon) Draft Alaska Energy Authority (A Component Unit of the State of Alaska) Basic Financial Statements and Schedules For the Year Ended June 30, 2024 (With Independent Auditor’s Report Thereon) DraftAlaska Energy Authority (A Component Unit of the State of Alaska) Contents Page Independent Auditor’s Report 1-3 Management’s Discussion and Analysis 4-17 Basic Financial Statements Government-Wide Financial Statements: Statements of Net Position 18-19 Statement of Activities 20 Fund Financial Statements: Governmental Fund: Balance Sheet 21 Statement of Revenues, Expenditures, and Changes in Fund Balances 22 Enterprise Fund: Statement of Net Position 23 Statement of Revenues, Expenses, and Changes in Net Position 24 Statement of Cash Flows - Enterprise Fund 25 Notes to Basic Financial Statements 26-60 DraftAlaska Energy Authority (A Component Unit of the State of Alaska) Contents Page Supplementary Information Schedules 1 Special Revenue Fund – Projects and Programs – Balance Sheet 61 2 Special Revenue Fund – Projects and Programs – Statement of Revenues, Expenses, and Changes in Fund Balance 62 3 Business-Type Activities – Enterprise Fund –Projects and Programs - Statement of Net Position 63-64 4 Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Revenues, Expenses, and Changes in Net Position 65 Supplementary Information (Unaudited) 5 Bradley Lake Hydroelectric Project Trust Account Activities 66 6 Capital Assets Presented under Federal Energy Commission Requirements 67 7 Bradley Lake Historical Annual Project Cost 68 8 PCE Endowment Fund Historical Analysis 69 9 Supplementary Organization and Project Information) 70-73 DraftTel: 907-278-8878 Fax: 907-278-5779 www.bdo.com 3601 C Street, Suite 600 Anchorage, AK 99503 BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. 1 Independent Auditor’s Report The Board of Directors Alaska Energy Authority Anchorage, AK Opinion We have audited the financial statements of the governmental activities, the business-type activities and each major fund of Alaska Energy Authority (a Component Unit of the State of Alaska) (the “Authority”), as of as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, and each major fund of the Authority as of June 30, 2024, and the respective changes in its financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued. DraftXX XX 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedule of Authority’s share of net pension liability and employer contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. DraftXX XX 3 Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority’s basic financial statements. The supplementary information in schedules 1 through 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information in schedules 1, 2, 3, 4 and 5 is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole. The supplementary information in schedules 6, 7, 8 and 9 has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated XXXX XX, 2024 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance. Anchorage, Alaska XXXX, 2024 Draft4 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Overview of the Financial Statements The Alaska Energy Authority (AEA or Authority) is a public corporation of the State of Alaska (State) within the Department of Commerce, Community and Economic Development (DCCED), but with a separate and independent legal existence and a separate and self-balancing set of independently audited Financial Statements. The Authority’s operations consist of governmental fund activities reported as a Special Revenue Fund and business-type activities reported as an Enterprise Fund. The financial information in this report is later reported as a component of the State and is discreetly presented in the State’s Annual Comprehensive Financial Report (ACFR). The Authority manages the following projects and programs: owned hydroelectric and intertie projects, rural energy programs, and energy development programs. The Authority’s projects and programs are funded primarily by State appropriations, federal grants, investment income, and Southcentral (Railbelt) Alaska utility companies. Further information on the Authority’s projects and programs can be found in Note 1 of the Notes to the Financial Statements (Notes). Management’s Discussion and Analysis This section presents management’s discussion and analysis of the financial position and results of operations for the year ended June 30, 2024. This information is presented to help the reader focus on significant financial matters and provide additional information regarding the activities of the Authority. This information should be read in conjunction with the Independent Auditor’s Report, the audited Financial Statements, and accompanying Notes and Schedules. Government-Wide Financial Statements The Government-wide Financial Statements report information about the overall finances of the Authority similar to a business-type enterprise. These statements combine and consolidate current near-term financial resources with capital assets and long-term obligations. The Government-wide Financial Statements are divided into the following categories:  Governmental Activities – These are functions of the Authority that are financed primarily by intergovernmental revenues. The Authority’s governmental activities include the Power Cost Equalization (PCE) Program, the Renewable Energy Grant Fund (REF), the Trans-Alaska Pipeline Liability (TAPL) Fund, Rural Power System Upgrade Projects, Rural Energy Projects, and the Volkswagen Diesel Settlement Fund.  Business-type Activities – These are functions of the Authority in which customer user fees and charges are used to help cover all or most of the cost of services they provide. The Authority’s business-type activities include the Bradley Lake Hydroelectric Project, the Alaska Intertie Project, the Susitna-Watana Hydroelectric Project, and the Power Project Fund. The Bradley Lake Hydroelectric Project includes the addition of Battle Creek diversion and the planning of Dixon Creek diversion which expands the hydroelectric project and the Sterling Substation to Quartz Creek Substation (SSQ Line) which transmits power to customers. The Statement of Net Position presents financial information for all of the Authority’s assets less liabilities, which results in the Authority’s net position. This statement is designed to display the overall financial position of the Authority. Draft5 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) The Statement of Activities provides information, which shows how the Authority’s net position changed as a result of the year’s activities. The statement is presented in the full accrual basis of accounting which utilizes the economic resources measurement focus. This is similar to the basis of accounting used by private-sector businesses. Revenues are recognized when they become available and measurable, and expenses are recognized in the period in which the fund liability is incurred, if measurable. Fund Financial Statements A fund is a standalone accounting entity with a set of self-balancing accounts for tracking cash and other financial resources earmarked for the purpose of carrying out specific functions or activities. The funds of the Authority are divided into two categories: governmental fund and proprietary fund, both of which are further described below, and which provide more detail than the government-wide statements. The Authority utilizes fund accounting to ensure and demonstrate compliance with finance related legislative requirements and to demonstrate fiscal responsibility to their resource providers. Governmental Funds – Special Revenue Funds The Authority reports one governmental fund this is reported as a Special Revenue Fund. The Special Revenue Fund is used to account for activities that are supported primarily by intergovernmental revenues whose use is restricted to specific activities. Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, governmental fund financial statements focus on the near-term view of the Authority’s operations. Because the financial statement reporting focus of governmental funds is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the Government-wide Financial Statements. Propriety Funds – Enterprise Funds The Authority reports one Enterprise Fund. The Enterprise Fund is a self-supporting governmental fund that is used to account for goods and services provided to the public for which a fee is charged to external users. The Statement of Net Position reports the Authority’s assets, liabilities, and resulting net position. The net position is reported as net investment in capital assets, restricted, and unrestricted (deficit). Restricted net position is subject to external limits such as bond resolutions, legal agreements, or statutes. The Statement of Revenues, Expenses, and Changes in Net Position reports the Authority’s revenues, expenses, and resulting change in net position during the periods reported. Both statements report on the full accrual basis of accounting and utilize the economic resources measurement focus. The Statement of Cash Flows reports the Authority’s sources and uses of cash and change in cash balance resulting from the Authority’s activities during the periods reported. Draft6 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Notes to the Financial Statements The Notes provide additional information that is essential to fully understand the amounts reported in the Government-wide and Fund Financial Statements. Other Information In addition to the Financial Statements and accompanying Notes, this report also presents certain supplementary information as Schedules, which provides additional information about the Authority’s projects and programs. Required Components of the Financial Statements *Optional Supplementary Information:  Schedule 1: Special Revenue Fund – Projects and Programs – Balance Sheet (audited);  Schedule 2: Special Revenue Fund – Projects and Programs – Statement of Revenues, Expenditures, and Changes in Fund Balance (audited);  Schedule 3: Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Net Position (audited);  Schedule 4: Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Revenues, Expenses, and Changes in Net Position (audited);  Schedule 5: Bradley Lake Hydroelectric Project Trust Account Activities (unaudited);  Schedule 6: Capital Assets Presented under Federal Energy Regulatory Commission (FERC) Requirements (unaudited);  Schedule 7: Bradley Lake Historical Annual Project Cost (unaudited);  Schedule 8: PCE Endowment Fund Historical Analysis (unaudited); and  Schedule 9: Supplementary Organization and Project Information (unaudited). Summary Detail Basic Financial Statements (audited) Required and Optional* Supplementary Information Government- wide Financial Statements (audited) Notes to the Financial Statements (audited) Fund Financial Statements (audited) Management's Discussion and Analysis (unaudited) Draft7 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Government-wide Statement of Net Position Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Authority as a whole, assets exceeded its liabilities by $1.37 billion at June 30, 2023 and $1.41 billion at June 30, 2024. Of the total net position at June 30, 2024, $325.6 million was invested in capital assets, net of related debt, and $1.3 billion was restricted. Of the total net position at June 30, 2023, $347.2 million was invested in capital assets, net of related debt, and $1.3 billion was restricted. In both years, invested in capital assets, net of related debt, is related to the Bradley Lake Hydroelectric Project, Alaska Intertie Project, and Susitna-Watana Hydroelectric Project. The remainder of net position is considered restricted for capital projects, debt service or restricted due to agreements with external parties, and legislation. The following tables are provided to show the Authority’s total restricted assets, restricted liabilities, and net position at June 30, 2024 and 2023: 2024 2023 Variance 2024 2023 Variance Assets: Current and other noncurrent assets 1,116,221$ 1,031,535$ 84,686$ 250,018$ 229,782$ 20,236$ Capital assets - - - 369,244 375,794 (6,550) Total assets 1,116,221 1,031,535 84,686 619,262 605,576 13,686 Total assets 1,116,221 1,031,535 84,686 619,262 605,576 13,686 Liabilities: Current liabilities 103,979 43,700 60,279 24,127 11,426 12,701 Noncurrent liabilities - - - 195,915 200,051 (4,136) Total liabilities 103,979 43,700 60,279 220,042 211,477 8,565 Net Position: Net investment in capital assets - - - 325,656 347,199 (21,543) Restricted 1,012,242 987,835 24,407 237,937 223,416 14,521 Unrestricted deficit - - - (164,373) (176,516) 12,143 Total net position 1,012,242 987,835 24,407 399,220 394,099 5,121 Total liabilities and net position 1,116,221$ 1,031,535$ 84,686$ 619,262$ 605,576$ 13,686$ Governmental Activities Business-Type Activities Draft8 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Governmental Activities Current and noncurrent assets The following table is provided to show the details of the Authority’s current and noncurrent assets at June 30, 2024 and 2023: Current and noncurrent assets in total are $84.7 million higher in the current fiscal year. Restricted cash and cash equivalents held by the Authority decreased by $892.2 million and is associated with PCE Endowment Fund cash and cash equivalents decreasing by $879.5 million. On July 3, 2023, the Alaska Permanent Fund Corporation (APFC) per Senate Bill (SB) 98 became the managers and investors of the PCE Endowment Fund. As a result, the prior managers of the fund the Revenue Department, Treasury Division disinvested all long-term investments and held all investments in cash and cash equivalent short-term investments by June 30, 2023. This was done so these funds could be easily transferred to APFC from the Treasury Division at July 3, 2023. Overall the net increase for both cash and cash equivalents and investments was $39.3 million, relating to investment earnings for the PCE Endowment Fund and Renewable Energy Fund (REF). Amounts due from the federal government decreased by $4.4 million related to timing of reimbursement requests submitted and funds received from federal agencies for various federal awards. Due from the State of Alaska decreased by $1.9 million. This balance will fluctuate annually. Due (to) from other funds, internal balances, will also fluctuate annually depending on timing of cash expended for the various program and project activities. The $135.0 thousand increase is due to timing of fiscal year 2024 related billing and reimbursement requests. Securities lending collateral of $44.0 million is related to the PCE Endowment Fund. State regulations at 15 AAC 137.510 and the APFC investment policy authorize the APFC to enter into securities lending transactions on behalf of the Fund. Through a contract with the Bank of New York Mellon (the Bank), the Fund lends marketable debt and equity securities to borrowers who are banks and broker-dealers. The loans are collateralized with cash or marketable securities guaranteed by the U.S. government or a U.S. government agency. At June 30, 2024 there were $43.0 million fair value of securities on loan with required cash collateral of $44.0 million. 2024 2023 Variance Restricted cash and cash equivalents 107,633$ 999,872$ (892,239)$ Investments, restricted 955,541 23,990 931,551 Receivables for investments 5,515 - 5,515 Operating receivables 2,006 45 1,961 Prepaid expenses 217 194 23 Due from federal government 509 4,887 (4,378) Due from State of Alaska 158 2,085 (1,927) Due from proprietary funds/internal balances 597 462 135 Securities lending collateral 44,045 - 44,045 Current and noncurrent assets 1,116,221$ 1,031,535$ 84,686$ Draft9 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Current and noncurrent liabilities The following table is provided to show the details of the Authority’s current and noncurrent liabilities at June 30, 2024 and 2023: Current and noncurrent liabilities increased in this fiscal year by $60.3 million. The increase in current liabilities is primarily due to the PCE Endowment Fund securities lending collateral liability of $44.0 million, the due to local governments increase of $7.9 million, and the accounts payable increase of $6.7 million. Net Position The following table is provided to show details of the Authority’s net position at June 30, 2023 and 2024: The Governmental Activities Net Position increased by $24.4 million during the current fiscal year. Net Position restricted by agreements with external parties decreased by $596.0 thousand compared to the June 30, 2023 balance due to the Trans-Alaska Pipeline Liability Fund being fully expended. The Trans-Alaska Pipeline Liability Fund was the only fund that had net position restricted by agreements with external parties. Net Position restricted by legislation increased by $25.0 million primarily due to investment earnings of the PCE Endowment Fund. Business-Type Activities Business-type activities are functions of the Authority in which customer user fees and charges are used to help cover all or most of the cost of services they provide. The Authority’s business-type activities include the Bradley Lake Hydroelectric Project, the Alaska Intertie Project, the Susitna-Watana Hydroelectric Project, the Power Project Fund, and the Power Development and Railbelt Energy Projects. 2024 2023 Variance Due to federal government 37$ 870$ (833)$ Due to State of Alaska 25,622 23,243 2,379 Due to State of Alaska's component units 3,035 4,111 (1,076) Due to local governments 8,498 615 7,883 Accounts payable 20,367 13,681 6,686 Unearned revenue - grant match from outside entities 877 1,180 (303) Other liabilities 1,498 - 1,498 Securities lending collateral 44,045 - 44,045 Current and noncurrent liabilities 103,979$ 43,700$ 60,279$ 2024 2023 Variance Restricted by agreements with external parties -$ 596$ (596)$ Restricted by legislation 1,012,242 987,239 25,003 Net Position 1,012,242$ 987,835$ 24,407$ Draft10 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Current and other noncurrent assets The following table is provided to show the details of the Authority’s current and noncurrent assets, excluding capital assets at June 30, 2023 and 2024: Overall current and noncurrent assets increased by $20.4 million in the current fiscal year. The increase in current and noncurrent restricted assets is primarily due to an increase in restricted cash and cash equivalents of $15.8 million. This increase was primarily due from investments made in fiscal year 2024 from the bond proceeds of the Bradley Lake bond issue (Eleventh Series). Operating receivables decreased by $567.0 thousand, associated with timing of monthly billing. Loans receivable (net of allowance) increased by $4.4 million due to a new loan being issued for $4.9 million. Due from federal government increased $513.0 thousand and due from State of Alaska increased $575.0 thousand these balances will fluctuate year to year depending on the required funding of projects. Accrued interest receivable increased by $41.0 thousand associated with interest rates on loans overall increase of $4.4 million. Current and noncurrent liabilities The following table is provided to show the details of the Authority’s total current and noncurrent liabilities at June 30, 2023 and 2024: 2024 2023 Variance Restricted cash and cash equivalents 218,317$ 202,928$ 15,389$ Operating receivables 216 783 (567) Loans receivable, net allowance 30,832 26,459 4,373 Due from federal government 513 - 513 Due from State of Alaska 575 - 575 Due from State of Alaska's component units 100 53 47 Accrued interest receivable 62 21 41 Current and noncurrent assets 250,615$ 230,244$ 20,371$ Draft11 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Overall total current and noncurrent restricted liabilities increased in the current fiscal year by $8.5 million. Due to the State of Alaska increased by $2.2 million and is related to state appropriations drawn based on project need; therefore, these balances will fluctuate annually. Due to State of Alaska’s component units increased by $21 thousand, these balances will fluctuate annually based on project need. Due to governmental funds/internal balances increased by $135 thousand, these balances will fluctuate annually depending on program activities and cash needs. Accounts payable, to include capital acquisition and construction accounts increased by $9.2 million due to invoicing accruals at year end. Accrued interest payable increased by $4.8 million related to timing of debt service payments of Bradley Lake accrued interest on existing debt compared to prior year. Net Position The following table is provided to show the details of the Authority’s Net Position at June 30, 2023 and 2024: Overall Net Position increased in the current fiscal year by $5.1 million primarily due to the investment earnings of Bradley Lake. Net investment in capital assets decreased $21.5 million due to the net effect of capital asset accumulated depreciation and reduction of debt related to those specific capital projects. Capital projects increased by $12.5 million due to investment earnings incurred in reserve accounts restricted for capital projects and debt service decreased $.3 million due to payments of debt service. Restricted by agreements with external parties decreased by $8.0 million due primarily to a new loan that was made in the current year from the Power Project Fund. Restricted by legislation increased by $10.2 million due to the increase of advanced funds for projects and programs. 2024 2023 Variance Net investment in capital assets 325,656$ 347,199$ (21,543)$ Restricted for capital projects 170,596 158,062 12,534 Restricted for debt service 18,353 18,697 (344) Restricted by agreements with external parties 37,025 44,936 (7,911) Restricted by legislation 11,963 1,721 10,242 Unrestricted deficit (164,373) (176,516) 12,143 Total Net Position 399,220$ 394,099$ 5,121$ Draft12 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) The following table is provided to show the Authority’s revenues, expenses, and changes in net position at June 30, 2023 and 2024: Governmental Activities These are functions of the Authority that are financed primarily by intergovernmental revenues. The Authority’s program revenues include the Power Cost Equalization (PCE) Program, the Renewable Energy Grant Fund (REF), the Trans-Alaska Pipeline Liability Fund (TAPL), the Rural Energy Projects, and the Volkswagen Diesel Settlement Fund. 2024 2023 Variance 2024 2023 Variance Revenues: Program revenues: Fees, fines and charges for services -$ -$ -$ 26,377$ 27,886$ (1,509)$ Operating grants and contributions 40,704 34,536 6,168 2,186 1,105 1,081 General revenues: Investment income 71,172 89,707 (18,535) 9,846 4,573 5,273 Total revenues 111,876 124,243 (12,367) 38,409 33,564 4,845 Expenses: Grants and projects 36,772 71,162 (34,390) - - - Power cost equalization grants 44,931 42,332 2,599 - - - General and administrative 5,192 5,070 122 1,695 1,637 58 Interest expense - - - 11,413 7,705 3,708 Plant operations - - - 8,678 10,146 (1,468) Depreciation - - - 12,076 11,698 378 Total expenses 86,895 118,564 (31,669) 33,862 31,186 2,676 Transfers: Transfers to other funds (574) (110) (464) 574 110 464 Change in net position 24,407 5,569 18,838 5,121 2,488 2,633 Net position, beginning of year 987,835 982,266 (186,996) 394,099 391,611 (8,807) Net position, end of year 1,012,242$ 987,835$ 24,407$ 399,220$ 394,099$ 5,121$ Governmental Activities Business-Type Activities Draft13 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Total Revenues for governmental activities decreased by $4.2 million, based on the following:  Operating grants and appropriated contributions are Federal grant awards and operating or capital appropriations from the primary government, the State of Alaska. The Authority recognizes revenue to the extent of expenditures or expenses. Overall operating grants and contributions increased by $6.2 million. Renewable Energy Grant funding of $2.8 million increased over the prior fiscal year. Rural Energy Grant funding of $4.2 million increased over the prior fiscal year. Of this the State of Alaska appropriations reflect a variance increase by $2.1 million and federal grants reflect a variance increase by $2.1 million.  Investment income was primarily from interest earned in the PCE Endowment Fund and the Renewable Energy Grant Fund (REF), which are managed by the APFC for the PCE Endowment and by the State Department of Revenue, Treasury Division for the REF. Market conditions varied for the current year with a decrease of $18.5 million over the prior year’s investment income. Investment income in the PCE Endowment Fund is $69.3 million and for REF $1.9 million. Total Expenses for Governmental Activities decreased by $31.7 million, based on the following:  Grants and projects expenses decreased by $34.4 million in the current fiscal year. The decrease was a combination of an overall decrease of PCE Endowment Fund appropriations to the General Fund of the State of Alaska by $45.0 million in addition to an overall increase of $10.3 million of expending supported by State of Alaska appropriations and federal grant funds for programs and projects.  PCE grants increased by $2.6 million due to increased appropriated funding for programs and projects from the PCE Endowment Fund.  General and administrative expenses increased by $122.0 thousand. The increase was directly related to an increase of general and administrative expenses associated with an increase in programs and projects. Business-Type Activities Revenues for business-type activities increased by $4.8 million, based on the following:  Fees, fines, and charges for services decreased by $1.5 million. Charges for services include the amounts received from the utilities for plant operations and debt service obligations. These services are provided under various agreements and are based on project expenditures, operating cash requirements, and will fluctuate annually. This decrease was primarily due to decreased project costs in the current year.  Operating grants and contributions are from State of Alaska operating and capital appropriations. Operating grants and contributions increased by $1.1 million due to project expenses related to the capital appropriations. Investment income increased by $5.3 million, due to increased investment earnings. Draft14 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Expenses for business-type activities increased by $2.7 million, primarily based on the following:  Interest expense represents the cost of interest on the Authority’s Power Revenue Bonds for the Bradley Lake Hydroelectric Project. Interest expense increased in the current fiscal year by $3.7 million. The increase in interest expense is primarily due to increase in debt for the Bradley Lake Project purchase of a transmission line from a participating utility in fiscal year 2022 and issuance of new debt in fiscal year 2023.  Plant operations for the Bradley Lake Hydroelectric Project and the Alaska Intertie Project decreased in the current fiscal year by $1.5 million. Plant operations consist of various activities required to maintain operations of each project. The decrease from the prior year is primarily due to expenses incurred for operations being less in the current fiscal year over the prior fiscal year. Fund Financial Analysis Governmental Fund The focus of the Authority’s governmental fund is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Authority’s financing requirements. The following table is provided to show the Authority’s total Restricted Fund Balance for sub-funds of the governmental fund at June 30, 2023 and 2024: At the end of the current fiscal year, the Authority’s governmental fund reported an ending fund balance of $1,012.2 million, which is an increase in comparison with the prior fiscal year. The Power Cost Equalization Program increases of $22.2 million is primarily due to decreased distributions from the PCE Endowment Fund during the year. The increase in the Renewable Energy Grant Fund by $3.0 million is a result of additional funding from appropriations for the Renewable Energy Fund. The Trans-Alaska Pipeline Liability Fund reduced by $597.0 thousand, as a result of increased project activity. Rural Energy Projects decrease of $208 thousand is a result of decrease projects and appropriations in fiscal year 2024. The ending fund balance is categorized as restricted to indicate that there are externally enforceable limitations imposed in regard to the expending of the fund balance. Specifically, the fund balance is entirely restricted by agreements with external parties or by legislation. 2024 2023 Variance Power Cost Equalization Program 979,066$ 956,887$ 22,179$ Renewable Energy Grant Fund 31,925 28,892 3,033 Emerging Energy Technology Fund 979 979 - Trans-Alaska Pipeline Liability Fund - 597 (597) Rural Energy Projects - 208 (208) Power Development Fund 272 272 - Total Fund Balances 1,012,242$ 987,835$ 24,407$ Draft15 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Proprietary Fund The Authority’s proprietary fund financial statements consist of an enterprise fund, which provides detailed information of the same type found in the business-type activities section of the government-wide financial statements. The following table is provided to show the Authority’s total Net Position by project for the proprietary fund at June 30, 2023 and 2024: At the end of the current fiscal year, the Authority’s proprietary fund reported an ending Net Position of $399.2 million, which is an increase of $5.1 million in comparison with the prior fiscal year. The increase of $5.0 million for the Bradley Lake Hydroelectric Project was due primarily to higher investment income. The decrease of $742.0 thousand for the Alaska Intertie Project was due to lower operating revenues net of higher operating expenses. The Power Project Fund increased $906 thousand due to increased legislative appropriations. The following table is provided to show the proprietary fund Net Position by category at June 30, 2023 and 2024: Total net position increased by $5.1 million. Restricted for capital projects increased $12.5 million primarily for increased investment income restricted for capital projects. Restricted for debt service decreased by $.3 million due to the increase of debt service payments and timing of when debt service payments are due with cash reserves on hand. Restricted by agreements with external parties decreased by $8.0 million due primarily to a new loan that was made in the current year from the Power Project Fund. Restricted by legislation increased by $10.2 million due to the increase of advanced funds for projects and programs. The Net investment in capital assets decreased by $21.5 million, which is the net effect of capital asset additions, retirements, accumulated depreciation net related debt. 2024 2023 Variance Bradley Lake Hydroelectric Project 160,821$ 155,866$ 4,955$ Alaska Intertie Project 11,811 12,553 (742) Susitna-Watana Hydroelectric Project 183,682 183,682 - Power Project Fund 41,184 40,278 906 Power Development and Railbelt Energy Projects 1,722 1,720 2 Total Net Position 399,220$ 394,099$ 5,121$ 2024 2023 Variance Net investment in capital assets 325,656$ 347,199$ (21,543)$ Restricted for capital projects 170,596 158,062 12,534 Restricted for debt service 18,353 18,697 (344) Restricted by agreements with external parties 37,025 44,936 (7,911) Restricted by legislation 11,963 1,721 10,242 Unrestricted deficit (164,373) (176,516) 12,143 Total Net Position 399,220$ 394,099$ 5,121$ Draft16 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Capital Assets and Long-Term Debt Capital Assets The Authority’s net investment in capital assets for its business-type activities as of June 30, 2024 amounts to $369.2 million (net of accumulated depreciation), which is a decrease of $6.5 million from the prior fiscal year. The investment in capital assets only occurs in the enterprise funds and includes land and rights of way, infrastructure, equipment, and construction in progress. Capital assets, net of accumulated depreciation decreased by $6.5 million as a net result of additions, retirements and depreciation of capital assets for both Bradley Lake and Alaska Intertie. Further information on the Authority’s capital assets can be found in Note 3. Long-Term Debt At the end of the current fiscal year, the Authority had total long-term debt outstanding of $201.3 million. The following table is provided to show the outstanding debt at June 30, 2023 and 2024: Further information on the Authority’s long-term debt can be found in Note 5. 2024 2023 Variance Land and Rights of Way 11,212$ 11,212$ -$ Equipment 1,817 1,704 113 Infrastructure 164,941 177,980 (13,039) Construction in Progress 191,274 184,898 6,376 Total 369,244$ 375,794$ (6,550)$ Business-Type Activities 2024 2023 Variance Power Revenue and Refunding Bonds Bradley Lake 158,547$ 159,713$ (1,166)$ Bradley Lake-Battle Creek private placement 37,114 38,489 (1,375) Sterling Substation to Quartz Creek (SSQ) private plac e 5,592 5,830 (238) Total 201,253$ 204,032$ (2,779)$ Business-Type Activities Draft17 Alaska Energy Authority (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2024 (Tables are stated in thousands) Outlook In fiscal year 2025 and beyond the Authority anticipates receiving a substantial increase in federal funding, from the Infrastructure Investment and Jobs Act and from other grant sources. This increase required substantial new receipt authority and matching funds from the Legislature and other sources. In addition, additional personnel will be required to fulfill the Authority’s mission with the new funding. Per the passage of House Bill 307 AEA has established a new board in fiscal year 2025, separate from AIDEA. More information about this new legislation and its impacts to AEA is in the subsequent event Note 11. Various Rural Power System Upgrades and Bulk Fuel Upgrades projects are anticipated to continue through fiscal year 2025 with ongoing federal and state funding. The Authority and the Denali Commission are leveraging the use of available funding by shifting project focus to maintenance and improvement projects. The Authority will continue Bulk Fuel and Power Plant Operator training, Circuit Rider, Technical Assistance, and Electrical Emergency efforts across Alaska. The Authority continues to manage the Renewable Energy Grant Fund (REF) active projects. The legislature approved funding for Round 16 to begin in fiscal year 2025. Operations and maintenance of the Authority’s Bradley Lake Hydroelectric Project, and the Alaska Intertie Project will continue as approved by the Bradley Lake Project Management Committee, the Authority, and the Alaska Intertie Committee, respectively. Projects utilizing the bond proceeds from the new Bradley Lake bond issuance are being planned and will progress in the next several years to further the Authority’s mission of reducing the cost of energy in the State. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) Statement of Net Position Governmental Business-Type Activities Activities Total Assets Current Assets Cash and cash equivalents, restricted 107,633$ 218,317$ 325,950$ Receivables for investments 5,515 - 5,515 Operating receivables 2,006 216 2,222 Prepaid expenses 217 - 217 Loans receivable - 2,698 2,698 Due from federal government 509 513 1,022 Due from State of Alaska 158 575 733 Due from State of Alaska's component units - 100 100 Due from (to) other funds/internal balances 597 (597) - Accrued interest receivable - 62 62 Securities lending collateral 44,045 - 44,045 Total current assets 160,680 221,884 382,564 Noncurrent Assets Investments, restricted 955,541 - 955,541 Loans receivable, net of allowance - 28,134 28,134 Capital assets, net of accumulated depreciation - 369,244 369,244 Total noncurrent assets 955,541 397,378 1,352,919 Total Assets 1,116,221$ 619,262$ 1,735,483$ See Notes to Financial Statements. (in thousands) June 30, 2024 18 DraftAlaska Energy Authority (A Component Unit of the State of Alaska) Statement of Net Position, continued Governmental Business-Type Activities Activities Total Liabilities Current Liabilities Due to federal government 37$ 175$ 212$ Due to State of Alaska 25,622 3,104 28,726 Due to State of Alaska's component units 3,035 21 3,056 Due to local governments 8,498 - 8,498 Accounts payable 20,367 8,478 28,845 Capital acquisition and construction accounts - 1,304 1,304 Capital acquisition and construction accounts (due to federal government)- 13 13 Capital acquisition and construction accounts (due to State of Alaska)- 6 6 Bonds payable - current portion - 5,338 5,338 Unearned revenue - grant match from outside entities 877 - 877 Accrued interest payable - 5,688 5,688 Other liabilities 1,498 - 1,498 Securities lending collateral 44,045 - 44,045 Total current liabilities 103,979 24,127 128,106 Noncurrent Liabilities Bonds payable - noncurrent portion - 195,915 195,915 Total liabilities 103,979 220,042 324,021 Net Position Net investment in capital assets - 325,656 325,656 Restricted for: Capital projects - 170,596 170,596 Debt service - 18,353 18,353 Agreements with external parties - 37,025 37,025 Legislation 1,012,242 11,963 1,024,205 Unrestricted (deficit)- (164,373) (164,373) Total net position 1,012,242 399,220 1,411,462 Total Liabilities and Net Position 1,116,221$ 619,262$ 1,735,483$ See Notes to Financial Statements. (in thousands) June 30, 2024 19 DraftFees and OperatingCharges for Grants and Governmental Business-TypeFunctions/ProgramsExpenses Services Contributions Activities Activities TotalGovernmental ActivitiesPower Cost Equalization Program47,613$ -$ 5,251$ (42,362)$ -$ (42,362)$ Renewable Energy Grant Fund5,701 - 8,242 2,541 - 2,541 Trans Alaska Pipeline Liability Fund618 - - (618) - (618) Rural Energy projects32,531 - 26,779 (5,752) - (5,752) Volkswagen Diesel Settlement Fund432 - 432 - - - Total governmental activities86,895 - 40,704 (46,191) - (46,191) Business-Type ActivitiesBradley Lake Hydroelectric Project 30,086 23,2922,005 - (4,789) (4,789) Alaska Intertie Project3,653 2,623 181 - (849) (849) Power Project Fund123 462 - - 339 339 Total business-type activities33,862 26,377 2,186 - (5,299) (5,299) Total Activities120,757$ 26,377$ 42,890$ (46,191) (5,299) (51,490) General RevenuesInterest and investment income 71,172 9,846 81,018 Transfers(574) 574 - Change in Net Position24,407 5,121 29,528 Net Position, Beginning of Year 987,835 394,099 1,381,934 Net Position, End of Year1,012,242$ 399,220$ 1,411,462$ See Notes to Financial Statements.Net (Expense) Revenue and Changes in Net PositionProgram RevenuesAlaska Energy Authority(A Component Unit of the State of Alaska)Statement of Activities(in thousands)Year Ended June 30, 202420 DraftMajor Special Statement of Revenue Fund Net Position Restricted Assets Current Restricted Assets Cash and cash equivalents 107,633$ 107,633$ Receivables for investments 5,515 5,515 Operating receivables 2,006 2,006 Prepaid expenses 217 217 Due from federal government 509 509 Due from State of Alaska 158 158 Due from proprietary funds/internal balances 597 597 Securities lending collateral 44,045 44,045 Total restricted current assets 160,680 160,680 Noncurrent Restricted Assets Investments 955,541 955,541 Total restricted assets 1,116,221$ 1,116,221$ Liabilities Current Liabilities Due to federal government 37$ 37$ Due to State of Alaska 25,622 25,622 Due to State of Alaska's component units 3,035 3,035 Due to local governments 8,498 8,498 Accounts payable 20,367 20,367 Unearned revenue - grant match from outside entities 877 877 Other liabilities 1,498 1,498 Securities lending collateral 44,045 44,045 Total liabilities 103,979 103,979 Fund Balance Restricted for Legislation 1,012,242 Total fund balance 1,012,242 Total liabilities and fund balance 1,116,221$ Net Position Restricted for Legislation 1,012,242 Total net position 1,012,242 Total liabilities and net position 1,116,221$ See Notes to Financial Statements. June 30, 2024 Alaska Energy Authority (A Component Unit of the State of Alaska) Balance Sheet – Governmental Funds (in thousands) 21 DraftMajor Special Statement of Revenue Fund Activities Operating Revenues Federal grants 12,298$ 12,298$ State of Alaska appropriations 22,709 22,709 Other revenues 5,697 5,697 Total operating revenues 40,704 40,704 Operating Expenses Grants and projects 36,772 36,772 Power cost equalization grants 44,931 44,931 General and administrative 5,192 5,192 Total operating expenses 86,895 86,895 Nonoperating Revenues (Expenses) Investment income, net expenses 71,172 71,172 Total nonoperating revenues (expenses) before transfers 71,172 71,172 Transfers to other funds (574) (574) Change in Fund Balance 24,407 Change in Net Position 24,407 Fund Balance/Net Position, Beginning of Year 987,835 987,835 Fund Balance/Net Position, End of Year 1,012,242$ 1,012,242$ See Notes to Financial Statements. Year Ended June 30, 2024 Alaska Energy Authority (A Component Unit of the State of Alaska) Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds (in thousands) 22 DraftRestricted Assets Current Restricted Assets Cash and cash equivalents 218,317$ Operating receivables 216 Loans receivable 2,698 Due from federal government 513 Due from State of Alaska 575 Due from State of Alaska's component units 100 Accrued interest receivable 62 Total current restricted assets 222,481 Noncurrent Restricted Assets Loans receivable, net of allowance 28,134 Capital assets, net of accumulated depreciation 369,244 Total noncurrent restricted assets 397,378 Total Restricted Assets 619,859$ Liabilities Current Liabilities Due to federal government 175$ Due to State of Alaska 3,104 Due to State of Alaska's component units 21 Due to governmental funds/internal balances 597 Accounts payable 8,478 Capital acquisition and construction accounts 1,304 Capital acquisition and construction accounts (due to federal government) 13 Capital acquisition and construction accounts (due to State of Alaska) 6 Bonds payable - current portion 5,338 Accrued interest payable 5,688 Total current liabilities 24,724 Noncurrent Liabilities Bonds payable - noncurrent portion 195,915 Total noncurrent restricted liabilities 195,915 Total liabilities 220,639 Net Position Net investment in capital assets 325,656 Restricted for: Capital projects 170,596 Debt service 18,353 Agreements with external parties 37,025 Legislation 11,963 Unrestricted (deficit)(164,373) Total net position 399,220 Total Liabilities and Net Position 619,859$ See Notes to Financial Statements. June 30, 2024 Alaska Energy Authority (A Component Unit of the State of Alaska) Statement of Net Position – Enterprise Funds (in thousands) 23 DraftOperating Revenues State of Alaska appropriations 1,172$ Revenue from operating plants 25,802 Interest on loans 391 Other revenues 184 Total operating revenues 27,549 Operating Expenses Depreciation 12,076 General and administrative 1,695 Plant operations 8,677 Total operating expenses 22,448 Operating Income 5,101 Nonoperating Revenues (Expenses) Investment income, net expenses 9,846 Federal direct bond interest expense subsidy 1,014 Interest expense and other charges (11,414) Total nonoperating revenues (expenses) before capital contributions (554) Income before Capital Contributions 4,547 Capital Contributions 574 Change in Net Position 5,121 Net Position, Beginning of Year 394,099 Net Position, End of Year 399,220$ See Notes to Financial Statements. Year Ended June 30, 2024 Alaska Energy Authority (A Component Unit of the State of Alaska) Statement of Revenues, Expenses, and Changes in Net Position – Enterprise Funds (in thousands) 24 DraftAlaska Energy Authority (A Component Unit of the State of Alaska) Statement of Cash Flows - Enterprise Fund (in thousands) Year Ended June 30, 2024 Operating Activities Receipts from customers and users 26,944$ Payments from State of Alaska 2,776 Payments to suppliers (6,761) Net Cash from Operating Activities 22,959 Noncapital and Related Financing Activities Receipts from short-term borrowings from AIDEA working capital 1,446 Payments to AIDEA for short-term borrowing working capital (1,493) Net Cash from noncapital and Related Financing Activities (47) Capital and Related Financing Activities Principal paid on bonds (2,780) Interest paid on bonds and other charges (6,642) Capital asset acquisitions (4,034) Federal direct bond interest expense subsidy 507 Net Cash used for Capital and Related Financing Activities (12,949) Investing Activities Interest received from investments 9,840 Net change in loans (4,414) Net Cash from Investing Activities 5,426 Net Change in Restricted Cash and Cash Equivalents 15,389 Restricted Cash and Cash Equivalents, Beginning of Year 202,928 Restricted Cash and Cash Equivalents, End of Year 218,317$ Reconciliation of operating income to net cash from operating activities Operating income 5,101$ Adjustments to reconcile operating income to net cash from (used for) operating activities Depreciation 12,076 Changes in assets and liabilities Operating receivables 567 Due to/from State of Alaska 1,604 Due to other funds 135 Due to federal government (123) Due to/from State of Alaska's component units 21 Operating accounts payable 3,578 Net Cash from Operating Activities 22,959$ See Notes to Financial Statements. 25 DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 26 Note 1 - Summary of Significant Accounting Policies Reporting Entity The Alaska Energy Authority (AEA or Authority) was created by the Alaska State Legislature in 1976. AEA is a public corporation of the State of Alaska (State) within the Department of Commerce, Community, and Economic Development (DCCED) with separate and independent legal existence. AEA has its own self-balancing set of Financial Statements separately and independently audited from the State. For financial reporting, AEA is a discretely presented component unit of the State. AEA finances various energy infrastructure projects and energy programs to reduce the cost of energy throughout the State. AEA receives funding from the State, federal grants, and from southcentral Alaska utility companies for the use of AEA owned assets. Pursuant to legislation enacted in 1993, the Members of the Board of the Alaska Industrial Development and Export Authority (AIDEA) also serve as the Board of Directors of AEA. AIDEA provides personnel services for AEA (per statute, AEA has no employees) and has a Board approved borrowing agreement to borrow short-term, interest free, working capital funds from AIDEA up to a maximum of $7,500. AIDEA and AEA have separate executive directors, both are employees of AIDEA. There is no commingling of funds, assets, or liabilities between AIDEA and AEA and there is no responsibility of one for the debts or the obligations of the other. Neither AIDEA’s accounts nor activities are included in the accompanying financial statements. The following is a description of AEA’s existing owned projects and programs: Bradley Lake Hydroelectric Project The Bradley Lake Hydroelectric Project (the Project or Bradley Lake Project or Bradley Lake) has 120 megawatts of installed capacity and transmits its power to the State’s main power grid via two parallel 20–mile transmission lines. The project, which cost in excess of $300,000, went into commercial operation in 1991. The Bradley Lake Project Management Committee (BPMC) oversees the activities of the Bradley Lake Hydroelectric Project. The BPMC consists of representatives from the following five utilities and AEA: Golden Valley Electric Association (GVEA), Chugach Electric Association (CEA), Matanuska Electric Association (MEA), Homer Electric Association (HEA), and the City of Seward (the Utilities). These five utilities are also known as the Railbelt utilities. The Bradley Lake Project is managed and operated by HEA under contract with AEA. Bradley Lake serves Alaska’s Railbelt (the power-sharing area between Interior Alaska and Southcentral Alaska, connected by roads, generating facilities, and transmission lines) from the Kenai Peninsula to Fairbanks, as well as the Delta Junction area. The Utilities of the BPMC pay AEA for the costs of operations and maintenance of the Bradley Lake Project. In September 2016, the Authority received an amendment to the Federal Energy Regulatory Commission (FERC) license for a diversion of West Fork Upper Battle Creek into Bradley Lake. The diversion increases the Bradley Lake projects annual energy by approximately 37,000 megawatt hours (MWh). Construction began in 2018 and was completed in October 2020. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 27 All the Purchasers of the Bradley Lake Project Management Committee (BPMC) have supported the development and completion of the Battle Creek Diversion (BCD) Project. In April 2022, Golden Valley Electric. Association (GVEA), an initial Non-Purchaser, issued their Callback Notice and payment to participate in the Battle Creek Diversion Project. The BPMC accepted a GVEA Buy-In, re-allocated the shares and GVEA became a full participant in the Battle Creek Diversion Project effective May 1, 2022. In December 2020, the Authority purchased the Sterling to Quartz section of the 115kV transmission line from Homer Electric Association. This transmission line connects the Bradley Lake Hydroelectric Project to the customers that are located north of the Kenai Peninsula. This section is approximately 39 miles long. In December 2020, the Authority closed on the purchase of the Sterling Substation to Quartz Creek Substation (SSQ Line), which issued bonds in the amount of $17,000. Purchase of the SSQ Line is in support of the Bradley Lake Project. In June 2022, the Railbelt utilities opted to make an early prepayment of $10,900 on the SSQ Line debt using capital reserve funds that were released upon final payment on the original Bradley Lake Project bonds. On November 30, 2022, the Authority in partnership with the Railbelt utilities, coordinated and acquired aggregate committed bond financing in the amount of $166,013 for required project work to improve the efficiency and deliverable capacity of power from the Bradley Lake Hydroelectric Project. The financing will pay for transmission line upgrades and battery energy storage systems that will reduce existing constraints on the Railbelt grid by increasing transmission capacity to export Bradley Lake hydropower, while also allowing for the integration of future renewable energy generation. Starting in fiscal year 2023, AEA started studies for the Dixon Diversion Project to optimize the energy potential of the Bradley Lake Hydroelectric Project. Like the West Fork Upper Battle Creek Diversion Project, the Dixon Diversion Project would divert water from Dixon Glacier in order to increase Bradley Lake's annual energy production by fifty percent. Dixon Diversion is located five miles from Bradley Lake and would utilize the existing powerhouse at Bradley Lake. Estimated annual energy if this project was completed, would be 100,000-200,000 MWh of additional energy. This would power between 24,000-30,000 homes each year. As well, it is estimated to offset 1.5-1.6 billion cubic feet of natural gas per year as part of the Railbelt power generation (equal to 7.5% of Alaska's unmet natural gas demand projected for 2030). Estimated completion for this project is 2030. Alaska Intertie Project The Alaska Intertie is a 170–mile transmission line designed for 345 kilovolts (kV) and operated at 138kV. It runs between Willow and Healy and interconnects the electric utilities in the Southcentral region with Fairbanks area electric utilities. The Intertie Management Committee (IMC) and AEA manage the Alaska Intertie according to the terms and conditions of the Alaska Intertie Agreement. AEA contracts with the following utilities for operations and maintenance: GVEA in Fairbanks, and Southcentral Alaska utilities, CEA, and MEA (participating utilities). The Intertie reduces the number of black or brownouts throughout the system by enabling power to move either north or south when major system disturbances occur. The Intertie enables GVEA to purchase low- cost power from Southcentral Alaska utilities. Southcentral Alaska utilities purchase power from Fairbanks during power shortages. It also enables GVEA to receive power generated by the Bradley Lake Project, which is some of the lowest priced power in the Railbelt region. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 28 Susitna-Watana Hydroelectric Project The Alaska Legislature appropriated $192,000 in funding to AEA towards the development of a large hydroelectric project to be built in the Railbelt Region. The proposed project would be located approximately half-way between Anchorage and Fairbanks on the upper Susitna River and would include a single dam that would produce 2,800,000 MWh annually, equivalent to approximately 50% of the Railbelt’s annual electrical use. AEA pursued a FERC license. Pursuant to Administrative Order No. 271, AEA advanced the licensing process through FERC’s issuance of an updated Study Plan Determination on the environmental studies completed between 2013 and 2015. The engineering feasibility study and economic analysis have been completed; FERC’s updated Study Plan Determination on the environmental work completed thus far was favorable to AEA. The licensing effort is currently in abeyance. On February 21, 2019, Governor Michael Dunleavy issued Administrative Order (AO) No. 309 which rescinded several AOs, including AO No. 271. However, AEA has not been directed to re- initiate the licensing process. The licensing project remains in abeyance, as State level discussions integrate this project into Alaska’s Statewide Energy Plan. Rural Energy Programs The rural energy programs include Bulk Fuel Storage Upgrades, Rural Power System Upgrades, the Power Cost Equalization (PCE) Grant Program, Utility Training, Technical Assistance, one active loan program (the Power Project Fund), and one inactive loan program (Rural Electrification Revolving Loan Fund). During fiscal year 2022, the Authority established the Electric Utility Relief Fund and disbursed funds to Grantee’s for verified eligible residential electric utility costs that arose due to COVID -19. The Program provided Grantees with funding to retire delinquent residential electric utility costs stemming from the pandemic. This Program was closed in 2022. Subject to appropriations, the PCE Endowment Fund provides the PCE Grant Program a long-term stable financing source. The driver of the PCE Grant Program is to reduce electricity costs for residential and community facility customers in otherwise high-cost rural service areas. Energy Development Programs The energy development programs include the Renewable Energy Grant Fund and Recommendation Program and the Alternative Energy and Energy Efficiency (AEEE) programs. The purpose of the Renewable Energy Grant Fund and Recommendation Program is to finance renewable energy projects in Alaska. The AEEE programs support the development of alternative energy resources specific to Alaska. Basis of Accounting As a discrete component unit of the State, and for the purpose of preparing financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Authority, as a public corporation of the State with separate and independent legal existence, is subject to the accounting requirements as set forth by the Governmental Accounting Standards Board (GASB). DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 29 The funds of the Authority are organized as Governmental Fund and Proprietary Fund. The financial activities of the Authority are recorded in various funds as necessitated by sound fiscal management. The funds are combined for financial statement reporting purposes. Government-Wide and Fund Financial Statements The Government-Wide Financial Statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the activities of the Authority. In general, the effect of inter-fund activity has been removed from these statements to minimize the double-counting of internal activities. Governmental activities, which normally are supported by intergovernmental revenues, are reported separately from business-type activities, which rely primarily on fees and charges to external parties. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) fees, fines and charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not properly included among program revenues are reported instead as general revenues. Investment earnings are general revenues. Separate Financial Statements are provided for the special revenue fund and the enterprise fund. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The Government-Wide and Proprietary Fund Financial Statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental Fund Financial Statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Authority considers all revenues, except reimbursement grants, to be available if they are collected within 60 days after year end. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures are recorded when a near-term liability is incurred. Debt service expenditures are recorded only to the extent they have matured. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 30 The Authority reports the following major governmental fund:  A single Special Revenue Fund is utilized to report AEA’s governmental activities. All of AEA’s incoming proceeds or revenues related to governmental fund types are restricted to expenditure for specified purposes other than debt service or capital projects. This fund does not have a legally adopted budget. Hence as part of AEA’s Financial Statements a Budgetary Comparison Schedule is not presented as required supplemental information. The Authority reports the following major proprietary fund:  Major proprietary fund – A single Enterprise Fund is utilized to report AEA’s business-type activities. This fund includes all of the following: Bradley Lake Hydroelectric Project, Alaska Intertie Project, Susitna- Watana Hydroelectric Project, Power Project Fund, Power Development and Railbelt Energy Projects. Revenue Recognition AEA does not have a General Fund since all funds are legally restricted with specific purposes by external agreements, legislation, or statute. As a general rule, the effect of inter-fund activity has been eliminated from the Government-Wide Financial Statements. Amounts reported as program revenues include 1) fees, fines, and charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. For purposes of proprietary fund presentation, the Authority considers its revenues and expenses, except investment income, the sale of program loans, certain appropriations with the State, and conveyance of capital assets, to be part of its principal ongoing operations and, therefore, classifies these revenues and expenses as operating in the Statement of Revenues, Expenses, and Changes in Net Position. All other revenues and expenses are considered nonoperating. Fair Value Measurement and Application Securities or other assets are reported and measured at fair value if (a) we hold it primarily for the purpose of income or profit and (b) it has a present service capacity based solely on its ability to generate cash or be sold to generate cash. Cash and Cash Equivalents All of AEA’s cash and cash equivalents are restricted for a specific purpose. AEA has trust accounts defined by bond resolutions, agreements with external parties, and State legislation restricting the use of cash and investments. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 31 For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash, short-term commercial paper, and money market funds. Investments Marketable securities are reported at fair value in the Financial Statements. Unrealized gains and losses are reported as components of the change in net position. Fair values are obtained from independent sources. Investments are segregated between current and noncurrent based on stated maturity and intended use. Investments maturing within a year are classified as current if they are considered to be potentially needed for current operations. This classification recognizes that a portion of our investment portfolio may be needed for current operations. A noncurrent investment may be sold for operational cash flow needs, if needed, and is beneficial under current market conditions. Loans and Related Interest Income Loans are generally carried at amounts advanced less principal payments collected. Interest income is accrued as earned. Accrual of interest is discontinued whenever the payment of interest or principal is more than ninety days past due or when the loan terms are restructured. The Authority considers lending activities to be part of its principal operations and classifies it as operating in the Statement of Revenues, Expenses, and Changes in Net Position. For purposes of the Statement of Cash Flows, the loan program activities are treated as investing activities. Allowance for Loan Losses The allowance for loan losses represents management’s judgment as to the amount required to absorb probable losses in the loan portfolio. The factors used by management to determine the allowance required include payment history, individual loan size, collateral values, and other factors. Management’s opinion is that the allowance is currently adequate to absorb known losses and inherent risks in the portfolio. Capital Assets Capital assets are stated at cost and depreciation is charged to operations by use of the straight-line method over their estimated useful lives. The Authority capitalizes all assets with a cost of at least $5 thousand and a useful life greater than one year. The estimated economic lives of the assets are as follows: DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 32 AEA recognizes intangible assets per the guidance of GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets. Intangible assets are assets which are nonfinancial in nature, lack physical substance, are identifiable and have a useful life extending beyond a single reporting period. Costs associated with the generation of internally generated intangible assets are capitalized when incurred after the following milestones have been met:  Determination of the specific objective of the project and the nature of the service capacity that is expected to be provided by the intangible asset upon the completion of the project.  Demonstration of the technical or technological feasibility for completing the project so that the intangible asset will provide its expected service capacity.  Demonstration of the current intention, ability, and presence of effort to complete or, in the case of a multiyear project, continue development of the intangible asset. The Authority recognizes impairment losses for long-lived assets whenever there is a significant unexpected decline in service utility. Interest on short-term and long-term borrowing for construction projects are capitalized during the construction phase of the projects. Fund Balance In the fund financial statements, the Special Revenue Fund reports aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form—prepaid items or inventories; or (b) legally or contractually required to be maintained intact. The spendable portion of the fund balance comprises the remaining four classifications: restricted, committed, assigned, and unassigned. Restricted fund balance – this classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributors, laws, or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. All of the Authority’s fund balance is restricted. Net Position Net position is displayed in three components, as follows: Net investment in capital assets – This consists of capital assets, net of accumulated depreciation, less the outstanding balances of any bonds, mortgages, notes, and accounts payable or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted – This consists of net assets that are legally restricted by outside parties. Those restrictions come in the form of legislation or State statute that cannot be modified by AEA’s board of directors. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 33 Unrestricted – This consists of the remaining net position where the definition of “restricted” or “net investment in capital assets” does not apply. The Authority’s spending policy is to evaluate, on a case-by-case basis, whether restricted or unrestricted net position should be spent. This evaluation is performed by management as part of the overall spending plan. Environmental Issues The Authority’s policy relating to environmental issues, including pollution and contamination remediation obligations which address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site assessments and cleanups, is to record a liability when the likelihood of Authority responsibility for clean-up is probable and the costs are reasonably estimable. Appropriations and Grants The Authority recognizes appropriations and grant revenue when all applicable eligibility requirements, including time requirements, are met. Estimates In preparing the financial statements, management of the Authority is required to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources and disclosures of contingencies as of the date of the Statements of Net Position. These estimates impact revenue and expenses for the period. Actual results could differ from those estimates. Rounding The preparation of the Financial Statements represents accurate numerical values by using rounding which may cause differences in the statements due to rounding. Rounding a numerical value means replacing it by another value that is approximately equal but shorter, simpler, or more explicit. Note 2 – Cash and Investments Pursuant to various agreements, appropriations, and statutory requirements relating to its operations, AEA has established accounts for assets restricted to construction, operation, and financing activities. As used throughout this note, “Fund” means a separate account established by the State Legislature and does not refer to a separate group of self-balancing accounts as contemplated by GAAP. At June 30, 2024, the AEA’s bank and carrying amount of cash and cash equivalents (all of which were restricted for specific purposes) was $325,950. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 34 The restricted cash and cash equivalents and investments were held in trust and restricted accounts for the following activities as of June 30, 2024: Investment Holdings Beginning July 1, 2023 the Power Cost Equalization Endowment Fund (PCE Fund), created under Alaska Statute (AS) 42.45.070 became under the fiduciary authority of the Alaska Permanent Fund Corporation (APFC). Previously the State Department of Revenue, Treasury Division (Treasury) had the fiduciary authority of the PCE Fund. The change became effective with the passage of Senate Bill 98 Fiscal Year 2023. AEA requests draws from this Fund as required to meet project and program cash flow needs. The Renewable Energy Grant Fund (RE Fund), created under AS 42.45.045 is under the fiduciary authority of the Treasury. AEA requests draws from this Fund as required to meet project and program cash flow needs. Other AEA cash and investments are held by U.S. Bank and KeyBank. The U.S. Bank cash and investments are invested in accordance with the requirements and conditions of a trust agreement with each bond issue. Under the Internal Revenue Code of 1986, as amended, certain earnings in excess of arbitrage yield of the Bradley Lake bonds must rebate to the U.S. Treasury. Bradley Lake investments, associated with the Power Revenue Bonds and Refunding Bonds, are subject to this rebate computation. Governmental Business-Type Activities Activities Totals Restricted Cash and Cash Equivalents Bradley Lake Hydroelectric Project -$ 199,133$ 199,133$ Alaska Intertie Project - 3,433 3,433 Power Project Fund - 10,241 10,241 Power Development and Railbelt Energy Projects 31,457 5,510 36,967 Power Cost Equalization Program 61,070 - 61,070 Renewable Energy Grant Fund 11,748 - 11,748 Emerging Energy Technology Fund 983 - 983 VW Settlement 877 - 877 Community Contributions Fund 1,498 - 1,498 107,633$ 218,317$ 325,950$ Governmental Business-Type Activities Activities Totals Restricted Investments Power Cost Equalization Program 933,601$ -$ 933,601$ Renewable Energy Grant Fund 21,940 - 21,940 955,541$ -$ 955,541$ DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 35 Beginning July 1, 2023 the Power Cost Equalization Endowment Fund (PCE Fund), created under Alaska Statute (AS) 42.45.070 became under the fiduciary authority of the Alaska Permanent Fund Corporation (APFC). Previously the State Department of Revenue, Treasury Division (Treasury) had the fiduciary authority of the PCE Fund. The change became effective with the passage of Senate Bill 98 Fiscal Year 2023. AEA requests draws from this Fund as required to meet project and program cash flow needs. The Renewable Energy Grant Fund (RE Fund), created under AS 42.45.045 is under the fiduciary authority of the Treasury. AEA requests draws from this Fund as required to meet project and program cash flow needs. Other AEA cash and investments are held by U.S. Bank and KeyBank. The U.S. Bank cash and investments are invested in accordance with the requirements and conditions of a trust agreement with each bond issue. Under the Internal Revenue Code of 1986, as amended, certain earnings in excess of arbitrage yield of the Bradley Lake bonds must rebate to the U.S. Treasury. Bradley Lake investments, associated with the Power Revenue Bonds and Refunding Bonds, are subject to this rebate computation. Internal staff manage AEA’s investment portfolio for liquidity and safety. There is no AEA Board approved investment policy; however, AEA staff follow the AIDEA’s Board approved investment policy (the Resolution) for internally managed investments. The AEA investment portfolio can consist of the following eligible securities:  Debt instruments issued or guaranteed by the U.S. government, its agencies and instrumentalities, and Government Sponsored Enterprises (GSEs);  Money market funds collateralized by U.S. Treasury, agency securities, and repurchase agreements;  Units in the investment pool or any series of investment pool of the Alaska Municipal League Investment Pool, Inc., or any successor to that entity, or any other investment pool for public entities of the State of Alaska that is established under the Alaska Investment Pool Act (AS 37.23.010-37.23.900); and  Other investments specifically approved by the board. Fair Value Measurement AEA categorizes fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of an asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. Following is a summary of the AEA’s cash and investments at the recurring fair value measurement at June 30, 2024: Governmental Business-Type Activities Activities Totals Money market funds 107,633$ 218,317$ 325,950$ Investments managed by APFC 933,601 - 933,601 Investments managed by Treasury 21,940 - 21,940 1,063,174$ 218,317$ 1,281,491$ DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 36 Money market funds which are not held primarily for the purpose of income or profit and have remaining maturities at time of purchase of one year or less. Therefore, the money market funds are recorded at amortized cost. Investments managed by Treasury are invested in a pooled environment and the remaining investments have a fair value Level of 2. Interest Rate Risk Interest rate risk is the risk that changes in interest rates will negatively affect the fair value of an investment. The resolution addresses interest rate risk. Duration is an indicator of a portfolio’s market sensitivity to changes in interest rates. In general, major factors affecting duration are (in order of importance): 1. Maturity 2. Prepayment frequency 3. Level of market interest rates 4. Size of coupon 5. Coupon payments Rising interest rates generally translate into the fair market value of fixed income investments declining, while falling interest rates are generally associated with increasing market values. Effective duration attempts to account for the price sensitivity of a bond to changes in prevailing interest rates, including the effect of embedded options. For example, for a bond portfolio with a duration of 5.0, a one percentage point parallel decline in interest rates would result in an approximate price increase on that bond portfolio of 5.0%. AEA Internally Managed Investments – AEA has no written policy for interest rate risk for internally managed investments; however, staff follow and believe to be in compliance with AIDEA’s written policy for interest rate risk. The duration for investments is 2 years or less. The maximum maturity of any issue is 3 years from the date of purchase. Credit Risk AEA has no written policy with regard to credit risk; however, staff follow and believe to be in compliance with AIDEA’s written policy for credit risk in regard to its internally managed portfolio. Since AEA only invests its internally managed portfolio in highly rated money markets, U.S. government and agency securities, and GSEs, the credit risk is minimal. The Bradley Lake Hydroelectric Project investments contain a portion of funds that are invested in guaranteed investment contracts collateralized by federal obligations, which minimize credit risk. Custodial Credit Risk Custodial credit risk is the risk that deposits may not be returned in the event of a bank failure. Treasury’s investment policy requires the State’s depository banks to collateralize State deposits to the extent insurance coverage provided by the Federal Deposit Insurance Corporation (the FDIC provides $250 thousand of coverage). In accordance with the Treasury policy they are required to retain collateral equal to 100 percent of uninsured deposits. At June 30, 2024, AEA’s deposits managed by Treasury were collateralized under this same policy. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 37 With respect to AEA managed investments, amounts totaling approximately $325,950 at June 30, 2024 are held in money market funds with the custodian, the trust department of a commercial bank; therefore, there is no custodial risk for these securities. Renewable Energy Grant Fund (Treasury as the Fiduciary) State Department of Revenue, Treasury Division (Treasury) has created a pooled environment by which it manages the investments for which its Commissioner has fiduciary responsibility. Actual investing is performed by investment officers within Treasury or by contracted external investment managers. Treasury manages and invests the Short-term Fixed Income Pool, Short-term Treasury Pool, Real Estate Investment Trust (REIT) Pool, and the Broad Market Fixed Income Pool. External investment managers manage and invest the Tactical Bond, Domestic Equity and the International Equity Pools. Treasury investment officers are also the oversight manager for all externally managed investments. The complete financial activity of the Fund is shown in the State’s ACFR available from the State - Department of Administration, Division of Finance or is available at the Treasury’s website: https://treasury dor.alaska.gov/home/investments. Assets in the pools are reported at fair value. Investment purchases and sales are recorded on a trade-date basis. Fixed income securities are valued each business day using prices obtained from a pricing service when such prices are available; otherwise, such securities are valued at the most current sale price or based on a valuation provided by investment managers. Domestic and international equity securities are valued each business day using prices obtained from a pricing service or prices quoted by one or more independent brokers. The full accrual basis of accounting is used for the investment income. General Fund and Other Nonsegregated Investments (GeFONSI) investment income is distributed to pool participants monthly if prescribed by statute or if appropriated by the State legislature. Income in the Short-term, Short-term Liquidity, and Intermediate-term Fixed Income Pools is allocated to the pool participants daily on a pro-rata basis. At June 30, 2024, the GeFONSI total for the Renewable Energy Grant Fund was $21,940. For additional information on interest rate risk, credit risk, foreign exchange, derivatives, fair value, and counterparty credit risk see the separately issued report on the Invested Assets of the Commissioner of Revenue at: http://treasury.dor.alaska.gov/Investments/Annual-Investment- Reports.aspx. Power Cost Equalization Endowment Fund Investment Holdings (APFC as the Fiduciary) Effective July 1, 2023 with the passage of Senate Bill No. 98 from the thirty-third State of Alaska Legislature an Act was created that required the APFC to manage the Power Cost Equalization Endowment Fund; requiring the APFC to publish certain reports relating to the Power Cost Equalization Endowment Fund; relating to the APFC's management and investment of the Power Cost Equalization Endowment Fund. Further per section Sec. 37.13.310 section (2) the APFC shall annually prepare financial statements in accordance with generally accepted accounting principles consistently applied, and an audit report prepared by a certified public accountant. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 38 A. ENTITY The Power Cost Equalization Endowment Fund (PCE, Fund) was created by the Alaska Legislature under AS 42.45.070. The PCE is established as a separate fund of the Alaska Energy Authority (AEA, Authority), a component unit of the State of Alaska. The purpose of the PCE is to provide for affordable electric utility costs in otherwise high-cost service areas of the state through subsidies and grants. By statute, effective July 1, 2023, the assets of the Fund are to be held and invested under the same investment authority as the Alaska Permanent Fund is managed. The APFC is a governmental instrumentality of the State and is administered by a board of trustees (“Trustees” or “Board”). By statute, net income from the Fund is distributed to the AEA and is not included in the computation of the Alaska Permanent Fund transfers to the General Fund. Annual draws are limited to five percent of the average ending market value of the Fund for the previous three closed fiscal years and include costs incurred by APFC to manage the Fund. B. SIGNIFICANT ACCOUNTING POLICIES The Fund owns unit shares of assets managed by the APFC. Values of assets and liabilities reported in the financial statements represent the Fund’s proportional share of the total assets managed by the APFC and are not a direct interest held by the Fund in the assets. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 39 Cash and temporary investments The amounts shown on the Statements of Net Position as cash and temporary investments include cash on deposit at the custodian bank, cash swept to overnight investment funds, cash collateral held at derivatives brokers, U.S. Treasury bills, commercial paper, and the net fair value of foreign exchange forward contracts. The APFC’s asset allocation includes approximately two percent in cash. The APFC investment policy specifies that funds dedicated to this portion of the asset allocation will be invested in money market funds or fixed income securities with weighted average maturities of no greater than 24 months. Deposits to investment fund Contributions from the Authority, State appropriations, and other sources are recorded when they are received. Forward exchange contracts The APFC’s investment managers enter into a variety of forward currency contracts in their trading activities and management of foreign currency exchange rate risk exposure. These contracts are typically intended to neutralize the effect of foreign currency fluctuations, and the contract amounts do not appear on the balance sheet. Realized gains and losses are included in the net increase/decrease in the fair value of investments at the time the contract is settled and determined based on the difference between the contract rate and the market rate at the time of maturity or closing. Unrealized gains and losses are also included in the net increase/decrease in the fair value of investments and are calculated based on the difference between the contract rate and a forward market rate determined as of the balance sheet date. A portion of the investment in forward exchange contracts is intended to manage, rather than neutralize, foreign currency fluctuations. Certain managers seek to control the effect of fluctuations in foreign exchange rates within their overall portfolio strategy rather than on a security-by-security basis. They attempt to optimize their foreign currency exposure in a market rather than accept the natural geographical exposure to the market’s currency. Futures Certain equity and fixed income managers for the Fund are permitted to buy and sell equity and interest rate index futures. The gross contract and fair value of futures do not appear in the balance sheets. The net unrealized gain or loss on open futures trades is included in investments on the balance sheets, based on the difference between the future’s purchase price and the current value of such futures. Realized gains and losses on futures are included in the net increase/decrease in the fair value of investments at the time the futures contract expires. The net change in unrealized gains and losses is also included in the net increase/decrease in the fair value of investments. Investment income Earnings are allocated from the commingled invested assets monthly as a credit to the Fund on the basis of total unit shares outstanding at the end of the month. All earnings are subject to allocation, which includes interest, dividends, and realized and unrealized gains and losses on total investments managed by the APFC. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 40 Investments and related policies The Fund’s investments managed by the APFC have been commingled with the assets of the Alaska Permanent Fund and certain assets of the Alaska Mental Health Trust Authority for investment purposes. The investments have been credited with unit shares and fractions of unit shares, which represent an undivided beneficial interest in the commingled assets managed by the APFC equal to the proportion those shares bear to the total unit shares outstanding. The Fund has received unit shares and fractions of unit shares based directly upon the dollar amount per share of funds contributed. The Fund will be charged with unit shares and fractions of unit shares based directly upon the dollar amount per share of funds withdrawn. Carrying value of investments The investments managed by the APFC are reported at fair value in the Statement of Net Position. Investments without a readily determinable fair value are generally reported at the net asset value per share (or its equivalent) of the investment. Securities transactions are recorded on the trade date that securities are purchased or sold. Unrealized gains and losses are reported as components of net change in net position. State investment regulations In accordance with Alaska Statute 37.13.120(a), the Trustees have adopted regulations designating the types of eligible investments. The regulations follow the prudent investor rule, requiring the exercise of judgment and care under the circumstances then prevailing that an institutional investor of ordinary prudence, discretion, and intelligence exercises in the designation and management of large investments entrusted to it, not in regard to speculation, but in regard to the permanent disposition of funds, considering preservation of the purchasing power of the assets over time while maximizing the expected total return from both income and the appreciation of capital. Investment policy – Asset allocation The Trustees have established a long-term goal of achieving a five percent real rate of return over time on the investment portfolio. To help achieve this goal, the Trustees allocate the investments among various asset classes. At June 30, 2024, the APFC’s strategic asset allocation targets were as follows: Asset class Asset class target Public equities 34% Fixed income 20% Private equity 16% Real estate 10% Private income 9% Absolute return 7% Tactical opportunities 2% Cash 2% DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 41 To allow for market fluctuations and to minimize transaction costs, the Trustees have adopted ranges that permit percentage deviations from the strategic asset allocation targets in accordance with specified reporting requirements and other procedures. Generally, for each asset class, the APFC’s Chief Investment Officer has discretionary authority to permit target deviations within one specified range (referred to as the “green zone” in the investment policy), the APFC’s Executive Director can approve target deviations for up to 90 days within a broader range (the “yellow zone”), and the Board can approve operating for longer than 30 days within a third range (the “red zone”). For example, the target dollar allocation for the public equities class is 34 percent, with the green zone range set at plus or minus five percent, the yellow zone range set at zero to five percent beyond the green zone, and red zone range set at greater than five percent beyond the green zone. In a similar manner, the APFC investment policy also requires the APFC to monitor relative risk (the expected investment portfolio’s risk and return relative to the risk benchmark using standard industry risk measures), active budget risk (risk due to active management decisions made by managers), and limits on private investments and future commitments. Concentration of credit risk Concentration of credit risk is the risk of loss attributable to holding investments from a single issuer. The APFC manages the Fund’s concentration of credit risk by following its strategic asset allocation policy, diversifying investments among managers with varying investment styles and mandates, and monitoring tracking error. Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked. The APFC’s policy for mitigating this risk of loss for fixed income and equity investments is to ensure compliance with the APFC investment policy and investment manager contracts. There is no single-issuer exposure within the APFC portfolio that comprises five percent or more of the overall portfolio. Therefore, no concentration of credit risk is reported in the notes to the financial statements. Credit risk Credit risk is the risk that an issuer or other counterparty to a marketable debt investment will not fulfill its obligations. The APFC requires that its investment grade fixed income managers invest in domestic and nondomestic bonds that have an explicit or implied investment grade rating. Should the required ratings on an existing fixed income security fall below the minimum standards, the security must be sold within seven months. Certain high yield investment managers are allowed to invest a specified amount of funds in bonds rated below investment grade. Custodial credit risk Custodial credit risk is the risk that in the event of a bank failure the Fund’s deposits may not be returned. The APFC generally requires that all investment securities at custodian banks be held in the name of the Alaska Permanent Fund or the APFC (on behalf of the Alaska Permanent Fund). For nondomestic securities held by most sub-custodians, the APFC’s primary custodian provides contractual indemnities against sub-custodial credit risk. Excess cash in custodial accounts is swept daily to a money market fund. Late deposits of cash which miss the money market sweep deadline are deposited to an interest-bearing account at the custodian. These deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times, balances in individual accounts exceed this limit. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 42 Foreign currency risk Foreign currency risk is the risk of loss from adverse changes in foreign currency exchange rates. Foreign currency risk is managed through foreign currency forward contracts and by diversifying assets into various countries and currencies. Interest rate risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The APFC manages the Fund’s exposure to interest rate risk in part through tracking error guidelines set forth in the APFC investment policy. Duration is an indicator of a portfolio’s market sensitivity to changes in interest rates. In general, the major factors affecting duration are, in order of importance, maturity, prepayment frequency, level of market interest rates, size of coupon, and frequency of coupon payments. Rising interest rates generally translate into the value of fixed income investments declining, while falling interest rates are generally associated with increasing value. Effective duration attempts to account for the price sensitivity of a bond to changes in prevailing interest rates, including the effect of embedded options. As an example, for a bond portfolio with a duration of five years, a one percentage point parallel decline in interest rates would result in an approximate price increase on that bond portfolio of five percent. The Fund held fixed income investments with floating, step, variable, and zero interest rates, valued at $11.9 million at June 30, 2024. The current annual interest rates range from 0 to 9.6 percent. Unit shares Unit shares represent an undivided beneficial interest in the commingled assets managed by the APFC and are computed on the next calendar day following the valuation date. Valuation date The last calendar day of each month is designated as the valuation date. Withdrawals from investment fund Distributions to the Authority, and to the State on behalf of the Authority, are made by liquidation of unit shares. Liquidation of the Fund’s unit shares are made at the net asset value of those shares. C. CASH AND TEMPORARY INVESTMENTS Cash and temporary investments, which includes the market values of foreign currency (FX) and FX forward exchange contracts, are summarized as follows at June 30: 2024 Cash $ 2,492,000 Pooled funds 17,240,000 U.S. Treasury bills 26,071,000 FX forward exchange contracts 30,000 Total cash and temporary investments $ 45,833,000 DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 43 Uninvested cash was held at the custodian, sub-custodian, or derivatives broker banks, primarily in interest-bearing accounts. All pooled funds were invested in a money market fund. U.S. Treasury bills are explicitly guaranteed by the U.S. government. Late deposits of cash which miss the money market sweep deadline and foreign currency are deposited in an interest-bearing account at the custodian. The Fund’s portion of deposit amounts that exceeded the FDIC insurance limit was $1.7 million on June 30, 2024. D. MARKETABLE DEBT SECURITIES Marketable debt securities categorized by debt instrument type at June 30 are summarized as follows: Unrealized 2024 Cost Fair value gains (losses) Mortgage-backed securities $ 35,559,000 35,012,000 (547,000)   U.S. Treasury and government notes/bonds 29,822,000 30,687,000 865,000    U.S. corporate bonds 87,453,000 86,011,000 (1,442,000)   U.S. commercial mortgage and asset-backed securities 10,771,000 10,856,000 85,000    U.S. exchange traded funds 1,449,000 1,562,000 113,000     Non-U.S. government bonds 30,867,000 30,724,000 (143,000)   Non-U.S. corporate bonds 15,005,000 15,365,000 360,000    Non-U.S. commercial mortgage and asset-backed securities 613,000 626,000 13,000    Non-U.S. exchange traded funds 352,000 371,000 19,000    Total marketable debt securities $ 211,891,000 211,214,000 (677,000)   E. MARKETABLE DEBT CREDIT RATINGS To manage credit risk for marketable debt securities, the APFC monitors fair values of all securities daily and routinely reviews its investment holdings’ credit ratings. For accounts with an investment grade mandate, issues falling below the minimum standards are required to be sold within seven months of the downgrade date. Minimum standards are a Standard & Poor's Corporation rating of BBB or better, or Moody's Investors Service, Inc. rating of Baa or better, or a comparable rating by another Nationally Recognized Statistical Rating Organization (NRSRO) or by a recognized rating service in the jurisdiction of the issuer. Accounts with high yield mandates are allowed to hold positions in assets with below investment grade ratings (high yield bonds). For purposes of this note, if credit ratings differ among the NRSROs used, the rating with the highest degree of risk (the lowest rating) is reported. At June 30, 2024, the Fund’s credit ratings for its marketable debt securities are as follows: DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 44 Percentage NRSRO quality ratings Domestic Non-domestic Total fair value of holdings AAA $7,840,000 3,534,000 11,374,000 5.39% AA 5,608,000 7,896,000 13,504,000 6.39% A 26,787,000 5,989,000 32,776,000 15.52% BBB 39,826,000 9,691,000 49,517,000 23.44% BB 12,972,000 3,130,000 16,102,000 7.62% B 3,803,000 1,230,000 5,033,000 2.38% CCC - - - 0.00% CC - - - 0.00% C- - - 0.00% D- 2,150,000 2,150,000 1.02% Total fair value rated debt securities $ 96,836,000 33,620,000 130,456,000 61.76% Exchange traded funds 1,562,000 371,000 1,933,000 0.92% Not rated 297,000 13,095,000 13,392,000 6.34% U.S. government explicitly backed by the U.S. government 38,763,000 - 38,763,000 18.35% U.S. government implicitly backed by the U.S. government 26,670,000 - 26,670,000 12.63% Total fair value debt securities $ 164,128,000 47,086,000 211,214,000 100.00% F. MARKETABLE DEBT DURATION To manage its interest rate risk on marketable debt securities, the APFC monitors fair values daily and routinely reviews portfolio duration in comparison to established benchmarks. At June 30, 2024, the effective duration by investment type, based on fair value, is as follows: Percentage of holdings Duration Domestic bonds Mortgage-backed securities 21.33% 6.15 Treasury and government notes/bonds 18.70% 6.16 Corporate bonds 52.41% 6.48 Commercial mortgage and asset-backed securities 6.61% 1.32 Exchange traded funds 0.95% — Total domestic bonds 100.00% 5.95 Non-domestic bonds Treasury and government notes/bonds 65.25% 7.62 Corporate bonds 32.63% 6.92 Commercial mortgage and asset-backed securities 1.33% 1.27 Exchange traded funds 0.79% — Total non-domestic bonds 100.00% 7.24 DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 45 G. PREFERRED AND COMMON STOCK Direct investments in preferred and common stock are held by the APFC’s custodian bank on behalf of the Fund. The Fund also invests in commingled stock funds, which are held by the custodian bank of the fund manager on behalf of fund investors, and equity index futures, which are held at the prime broker. Preferred and common stocks and commingled stock funds at June 30 are summarized as follows, which include the net fair value of equity index futures of $(1,000) at June 30, 2024: Unrealized 2024 Cost Fair value gains (losses) Direct investments Domestic stock $ 166,489,000   181,493,000   15,004,000    Non-domestic stock 152,943,000   143,314,000   (9,629,000)   Commingled funds 2,555,000    2,533,000   (22,000)   Total preferred and common stock $ 321,987,000   327,340,000   5,353,000    H. FOREIGN CURRENCY EXPOSURE Foreign currency risk arises when a loss could result from adverse changes in foreign currency exchange rates. Foreign currency risk is managed by the international investment managers in part through their decisions to enter into foreign currency forward contracts. Foreign currency risk is also managed through the diversification of assets into various countries and currencies. At June 30, 2024, the Fund’s cash holdings, foreign currency forward contracts, nondomestic public and private equity, and debt securities had exposure to foreign currency risk as follows (shown in U.S. dollar equivalent at fair value and based on the currency in which the securities are held and traded): DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 46 Equity, private Total foreign Cash and Foreign exchange debt, real estate, Marketable currency Foreign currency cash equivalents forward contracts infrastructure debt exposure Australian Dollar $27,000 (715,000) 3,942,000 457,000 3,711,000 Brazil Real 12,000 4,000 1,435,000 — 1,451,000 Canadian Dollar 17,000 (700,000) 6,875,000 607,000 6,799,000 Chilean Peso 3,000 — 78,000 — 81,000 Chinese Yuan Renminbi 23,000 (3,177,000) 3,704,000 3,091,000 3,641,000 Colombian Peso 1,000 — 25,000 — 26,000 Czech Koruna 1,000 (69,000) 12,000 66,000 10,000 Danish Krone 4,000 — 2,114,000 — 2,118,000 Egyptian Pound 1,000 — 16,000 — 17,000 Euro Currency 713,000 (9,765,000) 43,735,000 8,232,000 42,915,000 Hong Kong Dollar 49,000 (152,000) 8,768,000 — 8,665,000 Hungarian Forint 2,000 — 120,000 — 122,000 Indian Rupee 18,000 (3,000) 5,306,000 — 5,321,000 Indonesian Rupiah 6,000 (278,000) 772,000 271,000 771,000 Israeli Shekel 17,000 (192,000) 342,000 190,000 357,000 Japanese Yen 91,000 (5,803,000) 15,000,000 5,785,000 15,073,000 Kuwaiti Dinar — — 71,000 — 71,000 Malaysian Ringgit 6,000 (253,000) 443,000 250,000 446,000 Mexican Peso 15,000 (222,000) 772,000 217,000 782,000 New Taiwan Dollar 16,000 (8,000) 6,647,000 — 6,655,000 New Zealand Dollar 2,000 (88,000) 93,000 87,000 94,000 Norwegian Krone 3,000 (161,000) 944,000 161,000 947,000 Pakistan Rupee — — 31,000 — 31,000 Peruvian Sol — (152,000) — 147,000 (5,000) Philippines Peso 1,000 — 96,000 — 97,000 Polish Zloty (2,000) (77,000) 783,000 83,000 787,000 Pound Sterling 214,000 (2,867,000) 14,950,000 1,902,000 14,199,000 Qatari Riyal 4,000 — 178,000 — 182,000 Romanian Leu — (68,000) — 64,000 (4,000) Russian Ruble — — 2,000 — 2,000 Saudi Arabia Riyal 12,000 — 1,180,000 — 1,192,000 Singapore Dollar 8,000 (118,000) 1,297,000 115,000 1,302,000 South African Rand 2,000 — 856,000 — 858,000 South Korean Won 21,000 (672,000) 4,979,000 665,000 4,993,000 Swedish Krona 3,000 (2,000) 1,770,000 — 1,771,000 Swiss Franc 13,000 (266,000) 4,125,000 104,000 3,976,000 Thailand Baht — (189,000) 402,000 189,000 402,000 Turkish Lira 13,000 — 410,000 — 423,000 UAE Dirham 2,000 — 350,000 — 352,000 Total foreign currency exposure $ 1,318,000  (25,993,000) 132,623,000  22,683,000  130,631,000   Cash amounts in the table include receivables, payables, and cash balances in each related currency. If payables exceed receivables and cash balances in a currency, then the total cash balance for that currency will appear as a negative value. The remaining Fund assets are denominated in U.S. dollars and are not included in the table above. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 47 I. SECURITIES LENDING State regulations at 15 AAC 137.510 and the APFC investment policy authorize the APFC to enter into securities lending transactions on behalf of the Fund. Through a contract with the Bank of New York Mellon (the Bank), the Fund lends marketable debt and equity securities to borrowers who are banks and broker-dealers. The loans are collateralized with cash or marketable securities guaranteed by the U.S. government or a U.S. government agency. Under the APFC’s contract with the Bank, the Bank must mark the loaned securities and collateral to the market daily, and the loan agreements require the borrowers to maintain the collateral at not less than 102 percent of the fair value of domestic loaned securities (and nondomestic loaned securities denominated in U.S. dollars) and not less than 105 percent of the fair value for other nondomestic loaned securities. The APFC can sell securities that are on loan. If a borrower fails to return the loaned securities (borrower default), the Bank can use cash collateral (and the proceeds on the sale of any noncash collateral) to purchase replacement securities. Generally, the Fund is protected from credit risk associated with the lending transactions through indemnification by the Bank against losses resulting from counterparty failure, reinvestment of cash collateral, default on collateral investments, or a borrower’s failure to return loaned securities. Cash collateral received for loaned securities is reported on the Fund’s Statement of Net Position and invested by the Bank on behalf of the Fund. As of June 30, 2024, such investments were in overnight repurchase agreements that had a weighted average maturity of one day. The average term of the loans was also one day. At June 30, the value of securities on loan and collateral invested are as follows: 2024 Fair value of securities on loan, secured by cash collateral $ 43,015,000    Cash collateral 44,045,000    Fair value of securities on loan, secured by noncash collateral 70,702,000    Noncash collateral 77,975,000    The Fund receives 80 percent of earnings derived from securities lending transactions and the Bank retains 20 percent. During the year ended June 30, 2024, the Fund incurred no losses from securities lending transactions. The Fund received $271,000 in earnings from securities lending for the year ended June 30, 2024, which is included in the real estate and other income line item on the Statement of Changes in Net Position. J. FOREIGN EXCHANGE CONTRACTS, FUTURES, AND OFF-BALANCE SHEET RISK Certain external investment managers enter into foreign currency forward exchange contracts (FX forward contracts) to buy and sell specified amounts of foreign currencies at specified rates and future dates for the purpose of managing or optimizing foreign currency exposure. The maturity periods for outstanding contracts at June 30, 2024 ranged between two and 101 days. The counterparties to the FX forward contracts consisted of a diversified group of financial institutions. The Fund is exposed to credit risk to the extent of nonperformance by these counterparties. The Fund’s market risk as of June 30, 2024 is limited to the difference between contractual rates and forward market rates determined at the end of the fiscal year. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 48 FX forward contracts during the year ended June 30 are summarized as follows:   2024   Fair value of FX forward contracts, beginning of year $ - Net change in fair value of FX forward contracts 30,000 Fair value of FX forward contracts, end of year $ 30,000   Notional amount of FX forward contracts, end of year $ 6,557,000 Certain equity and fixed income investment managers are permitted to trade equity and U.S. Treasury index futures. Equity index futures are traded in both domestic and nondomestic markets based on an underlying stock exchange value. Index futures are settled with cash for the net difference between the trade price and the settle price. Futures in equity accounts during the years ended June 30 are summarized as follows:   2024   Fair value of equity index futures, beginning of year $ - Net change in fair value of equity index futures (1,000) Fair value of equity index futures, end of year $ (1,000)   Notional amount of equity index futures, end of year $ (25,000) Futures in fixed income accounts during the years ended June 30 are summarized as follows:   2024   Fair value of U.S. Treasury index futures, beginning of year $- Net change in fair value of U.S. Treasury index futures - Fair value of U.S. Treasury index futures, end of year $-   Notional amount of US Treasury index futures, end of year $ 126,000 K. REAL ESTATE The APFC invests Fund assets in a variety of real estate interests, including directly owned real estate, real estate investment trusts, private real estate funds, and other entities in which the assets consist primarily of real property. The APFC also holds a portfolio of real estate loans collateralized by income-producing, institutional real estate in the United States that are administered by an external institutional real estate management firm. In recent years, the APFC expanded its real estate portfolio strategy with a “Build-to-Core” investment program, creating high- quality properties. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 49 The APFC invests Fund assets in real estate directly through ownership of interests in corporations, limited liability companies, and partnerships that hold title to the real estate. External institutional real estate management firms administer the majority of the Fund’s directly owned real estate investments. The APFC initiated an internal real estate management program during FY2021, and two existing direct holdings were moved into this program. Real estate investments at June 30 are summarized as follows: Unrealized 2024 Cost Fair value gains (losses) Real estate investment trusts $ 9,801,000 9,072,000 (729,000) Real estate funds and notes 42,860,000 39,111,000 (3,749,000) American Homes 4 Rent II 1,147,000 1,421,000 274,000 Directly owned real estate Retail 13,027,000 18,723,000 5,696,000 Office 26,921,000 21,245,000 (5,676,000) Hotel 844,000 784,000 (60,000) Industrial 5,212,000 11,395,000 6,183,000 Multifamily 4,905,000 5,634,000 729,000 Development 8,161,000 7,130,000 (1,031,000) Total directly owned real estate 59,070,000 64,911,000 5,841,000 Total real estate $ 112,878,000 114,515,000 1,637,000 As of June 30, 2024, the APFC, on behalf of the Fund, had outstanding future funding commitments of $4.6 million for real estate fund investments. L. ALTERNATIVE INVESTMENTS Alternative investments include the Fund’s investments in absolute return strategies, private credit, private equity, and infrastructure. Absolute return strategies are investments in specialized funds that seek to deliver returns that are largely uncorrelated with traditional market driven asset classes. The Fund is invested in two existing limited partnerships, in which the Fund is the only limited partner (“fund of one”); both are currently in liquidation. The Fund also holds direct hedge fund investments, in which the Fund is one of many limited partners. External investment management services are provided by institutional investment managers who have acknowledged their status as fiduciaries to the Fund. Because of the off-exchange and private nature of many absolute return strategies, investments may have no readily determinable fair value, and the estimated fair values could differ significantly from values that would be obtained in a market transaction for the assets. Each manager provides the APFC with fair value estimates of partnership interests and undergoes an annual independent audit. The Fund invests in private credit through limited partnerships that invest either directly in distressed or mezzanine debt, or in commingled limited liability funds with a distressed debt or credit opportunity focus. These investments are funded over time as opportunities arise. The limited partnerships and funds undergo annual independent audits. Private credit investments by their nature generally have no readily determinable fair value, and the estimated fair values may differ significantly from values that would be obtained in a market transaction for the assets. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 50 Marketable debt securities and preferred and common stock classified as level 1 are valued using prices quoted in active markets for those securities. Marketable debt securities classified as level 2 are valued using matrix pricing and those at level 3 are term loans. Commingled funds reported at NAV use the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Publicly traded real estate investment trusts are valued using prices quoted in active markets and are reported as level 1. Directly held real estate, private real estate funds, and real estate debt investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Directly owned real estate investments are subject to annual appraisals and audits The Fund holds private equity through investments in limited liability companies and limited partnerships that typically invest in unlisted, illiquid common and preferred stock and, to a lesser degree, subordinated and senior debt of companies that are in most instances privately held. The APFC has hired external advisors to assist in the selection of private equity holdings diversified by geography and strategy. Private equity is funded slowly over time as opportunities are identified by the APFC staff, the external advisors, and the underlying fund managers. The underlying private equity funds provide the APFC with fair value estimates of the investments utilizing the most current information available. In addition, the external advisors review the fair value estimates, and the underlying private equity funds undergo annual independent audits. Private equity investments by their nature generally have no readily determinable fair value, and the estimated fair values may differ significantly from values that would be obtained in a market transaction for the assets. Infrastructure investments involve ownership or operating agreements in essential long-term service assets with high barriers to entry. Examples of infrastructure assets include toll roads, airports, deep water ports, communication towers, and energy generation, storage and transmission facilities. Investments in this asset class are expected to have inflation protection attributes and exhibit low correlations with other major asset classes in the APFC’s investment strategy. The Fund holds infrastructure investments through commingled funds organized as limited partnerships whose investment managers provide periodic fair value estimates and undergo annual independent audits. Infrastructure investments by their nature generally have no readily determinable fair value, and the estimated fair values may differ significantly from values that would be obtained in a market transaction for the assets. Alternative investments at June 30 are summarized as follows: Unrealized 2024 Cost Fair value gains Absolute return $ 55,814,000   57,675,000   1,861,000    Private credit 34,621,000   35,025,000   404,000    Private equity 141,523,000   146,874,000   5,351,000    Infrastructure 39,647,000   40,929,000   1,282,000    Total alternative investments $ 271,605,000   280,503,000   8,898,000    DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 51 As of June 30, 2024, the APFC, on behalf of the Fund, had outstanding future funding commitments of $455,000 for absolute return, $17.9 million for private credit, $41.4 million for private equity, and $13.4 million for infrastructure investments. Many alternative investments have liquidity constraints and may not be available for cash withdrawal until a specified period of time has elapsed. M. FAIR VALUE MEASUREMENT Investments measured using Net Asset Value (NAV) per share as a practical expedient to fair value are not categorized into input levels. The input levels used to measure Fund’s investments at June 30 are summarized as follows: Absolute return investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Absolute return investments undergo annual independent financial statement audits. The redemption notice period is from 1-91 days and the frequency of redemption is daily to quarterly. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 52 Absolute return investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Absolute return investments undergo annual independent financial statement audits. The redemption notice period is from 1-91 days and the frequency of redemption is daily to quarterly. Private credit investments are reported at NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Private credit investments undergo annual independent financial statement audits. Redemptions are not allowed, and the usual life of these investments is 5-7 years. Private equity investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Private equity investments undergo annual independent financial statement audits. Redemptions are not allowed, and the usual life of these investments is 10-12 years. Infrastructure investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Infrastructure investments undergo annual independent financial statement audits. Redemptions are not allowed, and the usual life of these investments is 10-12 years. Note 3 - Capital Assets Capital asset activity for the year ended June 30, 2024 was as follows: DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 53 Depreciation expense was charged to the functions as follows for the year ended June 30, 2024: Note 4 - Interfund Receivables, Payables, and Transfers Interfund balances typically result from short-term operating or capital advances. Transfers typically result from operating activities. A schedule of interfund balances as of and for the year ended June 30, 2024 follows: A schedule of interfund transfers as of and for the year ended June 30, 2023 follows: Note 5 - Long-Term Debt Long-term debt activity for the year ended June 30, 2024 was as follows: Due from other funds Due to Special Revenue Fund from Enterprise Fund 597$ From Governmental Funds to: Enterprise Funds for Capital 574$ Due Balance at Additional Balance at within Business-Type Activities July 1, 2023 Borrowings Repayments June 30, 2024 one year Power Revenue Bonds Bradley Lake Eleventh Series 159,713$ -$ (1,166)$ 158,547$ 3,717$ Transmission Line Tenth Series 5,830 - (238) 5,592 246 Bradley Lake - Battle Creek Diversion - Private Placement Seventh Series 37,334 - (1,333) 36,001 1,333 Eighth Series 1,155 - (42) 1,113 42 Total bonds payable 204,032 - (2,779) 201,253 5,338 Total other bond liabilities - - - - - 204,032$ -$ (2,779)$ 201,253$ 5,338$ DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 54 AEA has issued Power Revenue Bonds in support of the Bradley Lake Project. The Power Revenue Bonds are direct and general obligation bonds. The full faith and credit of AEA are pledged to pay principal and interest on the bonds. Payment of the bonds is secured by a pledge of revenues of the Bradley Lake Project, including all payments to be made by the Utilities. Each Utility has two established legal documents with AEA one called the Agreement for the Sale and Purchase of Electric Power and the other called the Power Sales Agreement. As a part of these legal documents the Utilities are obligated to make payments to AEA in an aggregate amount sufficient to pay annual project costs to include debt service on all outstanding bonds. The bond covenant terms provide additional security for repayment of the bonds. One of the terms of the bond covenants is that a capital reserve fund must be established for each bond issue in an amount equal to the capital reserve fund requirement. Further, the capital reserve fund is supported by the moral obligation of the State of Alaska. As well, in the event it becomes necessary to drawn from the capital reserve fund to pay debt service AEA is then required to certify (through the Chair of the AEA board) in writing to the Governor and the State Legislature the sum required to restore the capital reserve fund to the capital reserve requirement. The State Legislature may, but is not obligated to, appropriate to AEA that certified amount which is necessary to restore the capital reserve fund to the capital reserve fund requirement. As of June 30, 2024, AEA reported total outstanding Power Revenue Bonds of $201,253. Total incurred interest expense for fiscal year 2024 was $11,414. The details of each of these bond series are as follows: Eleventh Series Taxable Draw-Down Bonds (Eleventh Series) were issued on November 30, 2022 in the amount of $166,013 as a private placement to finance and develop a series of projects to increase available energy for the Bradley Lake Project. The Eleventh Series requires payment on December 30 and June 30 of each fiscal year starting in 2022 through the year 2050 with a fixed interest rate of 6.06%. Capital projects funded by the Eleventh Series are considered required project work as defined by the Power Sales Agreement with the Utilities. Tenth Series Taxable Draw-Down Bonds (Tenth Series) were issued on December 17, 2000 in the amount of $17,000 as a private placement for the purchase of the SSQ Line. The Tenth Series requires payment annually each July 1 starting in 2022 through the year 2040 with a fixed interest rate of 3.50%. An early pay down of principal in the amount of $10,940 occurred on June 29, 2022 using remaining excess payment amounts after payoff of original Bradley Lake Project construction bonds. Projects funded by the Tenth Series are considered required project work as defined by the Power Sales Agreement with the Utilities. Seventh and Eighth Series were issued as a private placement in support of the Battle Creek Diversion Project, an improvement to the Bradley Lake Project. The amounts issued by series is as follows:  $40,000 Seventh Series New Clean Renewable Energy Bonds (Seventh Series).  $1,239 Eighth Series Qualified Energy Conservation Bonds (Eighth Series). Only the Seventh and Eighth Series have amounts outstanding as of June 30, 2024. The bonds have a fixed interest rate of 4.24%. The outstanding bonds require payment annually each July 1 starting in 2021 through the year 2050. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 55 The Seventh and Eighth Series qualified for federal tax credits under the New Clean Renewable Energy Bond and Qualified Energy Conservation Bond Programs, respectively. These programs provide for a partial federal subsidy of interest due on such bonds, subject to federal funding availability. All of the Bradley Lake Project bonds described above were issued under an Alaska Energy Authority Power Revenue Bond Resolution (Bond Resolution). Events of default under the Bond Resolution include:  Late payment or nonpayment of principal or redemption price (as defined in the Bond Resolution). This is whether at maturity or upon call for redemption.  Late payment or nonpayment of interest or on the unsatisfied balance of any sinking fund installment.  Nonperformance or nonobservance of any of the other covenants, agreements, or conditions in the Bond Resolution or in the bonds, and such default continues for 60 days after written notice to AEA by the Trustee or to AEA and the Trustee by the Holders of not less than 25% in the principal amount of the outstanding bonds.  Dissolution or liquidation of AEA or filing by AEA of a voluntary petition in bankruptcy, or the commission by AEA of any act of bankruptcy, or adjudication of AEA as bankrupt, or assignment by AEA for the benefit of its creditors, or the entry by the creditors, or the approval by a court of competent jurisdiction of a petition applicable to AEA in any proceedings for its reorganization. As instituted under the provisions of the federal bankruptcy act, as amended, or under any similar act in any jurisdiction effective now or in the future.  If an order or decree is entered with the consent or acquiescence of AEA, appointing a receiver(s) of the Bradley Lake Project, in whole or part, or of the Bradley Lake Project rents, fees, charges or other revenues therefrom (as defined in the Bond Resolution). If the order or decree is entered without the consent or acquiescence of AEA and is not vacated or discharged or stayed within 90 days after the entry.  If a judgment for the payment of money shall be rendered against AEA resulting from the construction, improvement, ownership, control or operation of the Bradley Lake Project, and the judgment is not discharged within 90 days, or an appeal or decree to set aside or stay the execution or levy of the judgment is not filed in such manner as to set aside or stay the execution of or levy under such judgment, or order, decree or process or the enforcement thereof. In the event of default, AEA shall pay over or cause to be paid over to the Trustee (i) all moneys, securities and funds then held by AEA in any fund or account under the Bond Resolution, and (ii) all revenues (as defined in the Bond Resolution) as promptly as practicable after receipt. During the continuance of an event of default, per the Bond Resolution the Trustee shall apply funds in the following order:  Expenses of fiduciaries  Operating expenses  Principal, redemption, and interest payments DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 56 Arbitrage interest payable is due to the U.S. Treasury for the excess of investment income on the proceeds of each series of AEA’s tax exempt and tax advantaged Bradley Lake bonds over the related interest expense computed in accordance with Section 148 of the Internal Revenue Code of 1986, as amended. The accumulated arbitrage interest payable amount is computed each fiscal year. If a specific bond series is calculated to have arbitrage interest payable, the payable amount would be transferred to a separate investment account by the Trustee. The arbitrage interest payable amount for each series is first due after the end of the fifth bond year and every five years thereafter. As of June 30, 2024, the amount of arbitrage interest payable is $0. The minimum payments related to all bonds, for the years subsequent to June 30, 2024 are as follows: Note 6 - Loans Receivable The Authority administers the Power Project Fund loan program. At year-end, loans outstanding are classified as follows: Note 6 Number of Loans Amount Power Project Fund Loan Programs 15 31,287$ Less allowance for loan loss (455) 30,832$ Balance at beginning of year 469$ Provision for loan loss (recovery) (14) Balance at end of year 455$ DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 57 At year-end, there were no loans more than 90 days past due. On September 30, 2010, the Authority sold a portion of its Power Project Fund loan portfolio to AIDEA. Under the agreement, upon AIDEA’s request, AEA is required to repurchase any loan upon a payment default. At year- end, the outstanding principal balance of the loans sold was $2,142 for which AEA has allowed $42 for loan loss. Note 7 Fund Balance Fund balances reported in the aggregate on the governmental fund balance sheet are subject to the following constraints: Note 8 - Risk Management AEA is exposed to various risk of loss, including those pertaining to credit, tort, theft, damage, or destruction of assets, errors and omissions, and natural disasters. AEA manages risk through the purchase of commercial insurance and participation in the State’s self-insurance program, administered by the Division of Risk Management. Note 9 - Related Parties Alaska Industrial Development and Export Authority Pursuant to understandings and agreements between AIDEA and AEA, AIDEA provides administrative, personnel, data processing, communications, and other services to AEA. AEA has a Board approved borrowing agreement with AIDEA to provide short-term working capital funds up to a maximum of $7,500. As of June 30, 2024, AEA recognized expenses for services from AIDEA in the amount of $7,707. In addition, AEA had $2,790 payable to AIDEA for services and borrowings, which are included in accounts payable. Payments to AIDEA for personnel services supporting AEA activities comprise over half of AIDEA’s personnel costs. Restricted by Legislation Power Cost Equalization Program 979,066$ Renewable Energy Grant Fund 31,925 Emerging Energy Technology Fund 979 Power Development Fund 272 1,012,242$ DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 58 Alaska Intertie Management Committee AEA is party to agreement with GVEA, MEA, and CEA (the Utilities) using the Alaska Intertie for wheeling of electrical power. Pursuant to the Intertie Agreement, the IMC was established to manage the system. The IMC is comprised of a representative from AEA and each of the Utilities. AEA is reimbursed for operation and maintenance costs on a monthly basis with an annual settlement to adjust the payments to actual costs. AEA received $186 during fiscal year 2024 for administrative services. Bradley Lake Project Management Committee HEA, and City of Seward) purchasing electric power produced by the Bradley Lake Hydroelectric Project. In 1988, legislation was passed which made the PSA effective. Pursuant to the PSA, the Bradley Lake Hydroelectric Project Management Committee (BPMC) was formed to manage the project. The BPMC is comprised of a representative from AEA and each of the Utilities. The participating Utilities make monthly payments directly to the bond trustee based on their respective percentage share of the estimated annual project costs. AEA has an agreement with the BPMC to provide administrative services to the Bradley Lake Project, Battle Creek, and the SSQ Line and received $683 for these services during fiscal year 2024. Note 10 - Commitments and Contingencies In the normal course of business, AEA also has various commitments, such as commitments for the extension of credit and award of grants. At June 30, 2024, AEA had Power Project Fund loan commitments of $490. At June 30, 2024, AEA had cumulative prior year commitments from grant awards that are funded by State appropriations and federal awards; the amounts committed were $63,040. Note 11 – Subsequent Events On July 31, 2024, House Bill (HB) 307 was signed by Governor Mike Dunleavy. The Bill helps to prioritize the reliability, stability, and cost to consumers for power along the interconnected Railbelt Utilities and eliminates wheeling rates along the Railbelt. Governor Mike Dunleavy further bolstered the importance of the passage of this Bill by stating “energy is the lynchpin of modern society”. As well, AEA’s Executive Director (ED) Curtis Thayer said, “House Bill 307 is one of the most important pieces of legislation affecting energy policy for the Railbelt in over 30 years”. This enacted legislation was very significant to AEA. Some of the significant impactful elements of the Bill to AEA was it fundamentally changed how AEA operated and it directed the establishment of a Railbelt Transmission Organization (RTO) as a division of AEA. As of July 1, 2024 AEA will operate with a separately established board from AIDEA and have separate employees from AIDEA. Previously, AEA had shared board members with AIDEA and all employees were of AIDEA. The first board meeting for the newly formed AEA Board took place September 10, 2024 and Resolution 2024-05 was approved amending the AEA Bylaws. DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 59 On April 3, 2024, AEA for the first time established an indirect cost negotiation agreement with the AEA cognizant agent the United States Department of Interior. This indirect cost rate is for use with grants, contracts, and other agreements with the Federal Government to which 2 CFR Part 200 applies subject to the limitations in Section II.A. of the agreement. When allocating indirect costs to federal grants AEA continued to utilize the de minimis rate of 10% for fiscal year 2024. Starting in fiscal year 2025 for all new or renegotiated federal grant awards AEA will utilize the negotiated rate. Per approved AEA Board Resolution 2024-06 on September 10, 2024, a two year banking services contract with First National Bank Alaska (FNBA) was approved. The contract also has provisions that include three consecutive two year extension options at the sole discretion of AEA. This contract will remove banking services currently being provided under KeyBank for checking and custodial accounts to FNBA. All new bank accounts were established in fiscal year 2025. On September 10, 2024, the AEA board passed Resolution 2024-07 in regard to federal grant awards. This Resolution allows the ED of AEA to accept grants at or below $10 million. Over the past decade AEA has significantly grown its number of programs, projects, and budget. To maintain agility, responsiveness, operational efficiency and to address keeping pace with the nature of funding opportunities as a nimble approach this Resolution was put forward and approved. The AEA Board on September 10, 2024 accepted a round one Grid Resilience Innovation Program (GRIP) grant with U.S. Department of Energy for $206.5 million with a recipient cost share of $206.5 million. The grant will fund a subsea high-voltage direct current (HVDC) transmission line and two battery energy storage systems. Additional participants of this grant as partnering organizations is the Railbelt Utilities. The project dates are September 01, 2024 through August 31, 2032. The AEA Board on September 10, 2024 accepted a Solar for All grant with the U.S. Environmental Protection Agency as part of the Greenhouse Gas Reduction Fund for $64.4 million. The grant will fund residential-serving community solar and residential rooftop solar projects. Additional participants of this grant as partnering organizations is the Alaska Housing Finance Corporation. The project dates are May 01, 2024 through April 30, 2029. Note 12 – New Accounting Pronouncements The Governmental Accounting Standards Board (GASB) has issued several new accounting standards with upcoming implementation dates. The following new accounting standards were implemented by the Authority for 2024 reporting: DraftAlaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2024 60 GASB Statement No. 99 – Omnibus 2022 – Provisions of this Statement address requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, classification of certain provisions in Statement No. 34, as amended, and terminology updates related to Statement No. 53 and Statement No. 63, which are effective upon issuance. The effective date for the provisions of this Statement related to leases, PPPs, and SBITAs are to be implemented for year-end June 30, 2023. The effective date for the provisions of this Statement related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53, are to be implemented for year-end June 30, 2024. The Authority adopted the statement in 2024 and determined that the statement had no material impact on the Authority’s financial reporting. GASB Statement No. 100 – Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62 – Effective for year-end June 30, 2024. Earlier application is encouraged. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The Authority adopted the statement in 2024 and determined that the statement had no material impact on the Authority’s financial reporting. The GASB has issued new accounting standards with upcoming implementation dates. Management has not fully evaluated the potential effects of these statements, and actual impacts have not yet been determined. The statements are as follows: GASB Statement No. 101 – Compensated Absences – Effective for year-end June 30, 2025. Earlier application is encouraged. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. GASB Statement No. 102 – Certain Risk Disclosures – Effective for year-end June 30, 2025. Earlier application is encouraged. The objective of this Statement is to provide users of the government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. GASB Statement No. 103 – Financial Reporting Model Improvements – Effective for year-end June 30, 2026. Earlier application is encouraged. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. DraftRenewable EmergingVolkswagonPower Cost Energy Energy RuralDiesel Power Community Reclass for Equalization Grant TechnologyEnergy Settlement Development Contributions Finacial StatementProgram Fund Fund Projects Fund Fund Fund Presentation TotalsAssetsCurrent assetsCash and cash equivalents, restricted 61,071$ 11,747$ 983$ -$ 877$ 31,457$ 1,498$ -$ 107,633$ Investments receivable5,515 - - - - - - 5,515 Operating receivable - 3 - 1,783 51 - 169 - 2,006 Prepaid expenses193 - - 24 - - - - 217 Due from Federal Government- - - 509 - - - - 509 Due from State of Alaska- 296 - 6,530 - - - (6,668) 158 Due from State of Alaska's component units36 - - - - - - (36) - Due from other funds/internal balances- - - 2,186 - 775 - (2,364) 597 Securities lending collateral44,045 - - - - - - - 44,045 Total current restricted assets110,860 12,046 983 11,032 928 32,232 1,667 (9,068) 160,680 Noncurrent assetsInvestments, restricted933,601 21,940 - - - - - - 955,541 Total assets1,044,461$ 33,986$ 983$ 11,032$ 928$ 32,232$ 1,667$ (9,068)$ 1,116,221$ Liabilities and Fund BalanceCurrent liabilitiesDue to Federal Government-$ -$ -$ 36$ -$ 1$ -$ -$ 37$ Due to the State of Alaska 765 - 4 58 - 31,463 - (6,668) 25,622 Due to State of Alaska's component units- - - 3,071 - - - (36) 3,035 Due to local governments6,627 1,364 - 507 - - - - 8,498 Due to other funds/internal balances293 147 - 1,708 47 - 169 (2,364) - Accounts payable13,665 550 - 5,652 4 496 - - 20,367 Other liabilities- - - - - - 1,498 - 1,498 Unearned revenue - grant match from - outside entities- - - - 877 - - 877 Securities lending collateral44,045 - - - - - - - 44,045 Total liabilities65,395 2,061 4 11,032 928 31,960 1,667 (9,068) 103,979 Fund BalanceRestricted by legislation979,066 31,925 979 - - 272 - - 1,012,242 Total fund balance979,066 31,925 979 - - 272 - - 1,012,242 Total Liabilities and Fund Balance1,044,461$ 33,986$ 983$ 11,032$ 928$ 32,232$ 1,667$ (9,068)$ 1,116,221$ See Independent Auditor’s Report.Alaska Energy Authority(A Component Unit of the State of Alaska)Schedule 1 – Special Revenue Fund – Projects and Programs – Balance Sheet(in thousands)Year Ended June 30, 202461 DraftRenewable Emerging Trans AlaskaVolkswagenPower Cost Energy Energy Pipeline Rural Diesel Power CommunityEqualization Grant TechnologyLiabilityEnergy SettlementDevelopmentContributionsProgram Fund Fund Fund Projects FundFundFundTotalsOperating revenuesFederal grants-$ -$ -$ -$ 12,298$ -$ -$ -$ 12,298$ State of Alaska appropriations- 8,242 - - 14,467 - - - 22,709 Restricted contributions- - - - - - - - - Other revenues5,251 - - - 14 432 - - 5,697 Total operating revenues5,251 8,242 - - 26,779 432 - - 40,704 Operating expendituresGrants and projects- 4,918 - 530 30,911 413 - - 36,772 Power cost equalization grants44,931 - - - - - - - 44,931 General and administrative2,682 783 - 88 1,620 19 - - 5,192 Total operating expenditures47,613 5,701 - 618 32,531 432 - - 86,895 Nonoperating revenues (expenses) and otherInvestment income, net expenses69,285 1,857 - 21 9 - - - 71,172 Interfund capital grants and contributions(4,744) (791) - - 5,535 - - - - Total nonoperating revenues (expenses) before transfers64,541 1,066 - 21 5,544 - - - 71,172 Transfers to other funds- (574) - - - - - - (574) Change in Fund Balance22,179 3,033 - (597) (208) - - - 24,407 Fund Balance, Beginning of Year956,887 28,892 979 597 208 - 272 - 987,835 Fund Balance, End of Year979,066$ 31,925$ 979$ -$ -$ -$ 272$ -$ 1,012,242$ See Independent Auditor’s Report.Alaska Energy Authority(A Component Unit of the State of Alaska)Schedule 2 – Special Revenue Fund – Projects and Programs – Statement of Revenues, Expenses, and Changes in Fund Balance(in thousands)Year Ended June 30, 202462 DraftSusitna-PowerBradley Lake AlaskaWatanaPower Development and Reclass for Hydroelectric Intertie Hydroelectric Project Railbelt Energy Finacial StatementProjectProjectProjectFundProjects Presentation TotalsRestricted AssetsCurrent restricted assetsCash and cash equivalents199,133 3,433 - 10,241 5,510 - 218,317$ Operating receivable- 216 - - - - 216 Loans receivable- - - 2,698 - - 2,698 Due from federal government513 - - - - - 513 Due from State of Alaska 1,264 181 - - - (870) 575 Due from State of Alaska's component units- - - 100 - - 100 Accrued interest receivable- - - 62 - - 62 Due from other funds/internal balances- - - - 185 (782) (597) Total current assets200,910 3,830 - 13,101 5,695 (1,652) 221,884 Noncurrent restricted assetsLoans receivable, net of allowance- - - 28,134 - - 28,134 Capital assets, net of accumulated depreciation 173,774 11,788 183,682 - - - 369,244 Total noncurrent restricted assets 173,774 11,788 183,682 28,134 - - 397,378 Total Restricted Assets 374,684$ 15,618$ 183,682$ 41,235$ 5,695$ (1,652)$ 619,262 See Independent Auditor’s Report.Alaska Energy AuthoritySchedule 3 – Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Net Position(in thousands)Year Ended June 30, 2024(A Component Unit of the State of Alaska)63 DraftSusitna-PowerBradley Lake AlaskaWatanaPower Development and Reclass for Hydroelectric Intertie Hydroelectric Project Railbelt Energy Finacial StatementProjectProjectProjectFundProjects Presentation TotalsRestricted Liabilities and Net PositionRestricted LiabilitiesCurrent restricted liabilitiesDue to the federal government175$ -$ -$ -$ -$ -$ 175$ Due to the State of Alaska 1 - - - 3,973 (870) 3,104 Due to State of Alaska's component units21 - - - - 21 Due to other funds/internal balances716 57 - 9 - (782) - Accounts payable4,726 3,710 - 42 - - 8,478 Capital acquisition and construction accounts 1,264 40 - - - - 1,304 Capital acquisition and construction accounts - (due to federal government)13 - - - - - 13 Capital acquisition and construction accounts - (due to State of Alaska)6 - - - - - 6 Bonds payable – current portion5,338 - - - - - 5,338 Accrued interest payable5,688 - - - - - 5,688 Total restricted current liabilities17,948 3,807 - 51 3,973 (1,652) 24,127 Noncurrent restricted liabilitiesBonds payable – noncurrent portion, net195,915 - - - - - 195,915 Total noncurrent restricted liabilities 195,915 - - - - - 195,915 Total restricted liabilities 213,863 3,807 - 51 3,973 (1,652) 220,042 Net PositionNet investment in capital assets 130,226 11,748 183,682 - - - 325,656 Restricted for capital projects 170,596 - - - - - 170,596 Restricted for debt service 18,353 - - - - - 18,353 Restricted by agreements with external parties 6,019 63 - 30,943 - - 37,025 Restricted by legislation - - - 10,241 1,722 - 11,963 Deficit (164,373) - - - - - (164,373) Total net position 160,821 11,811 183,682 41,184 1,722 - 399,220 Total Restricted Liabilities and Net Position 374,684$ 15,618$ 183,682$ 41,235$ 5,695$ (1,652)$ 619,262 See Independent Auditor’s Report.Alaska Energy AuthoritySchedule 3 – Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Net Position, continued(in thousands)Year Ended June 30, 2024(A Component Unit of the State of Alaska)64 DraftPowerBradley Lake Alaska Susitna-Watana Power Development andHydroelectric Intertie Hydroelectric Project Railbelt EnergyProject ProjectProjectFundProjectsTotalsOperating revenuesState of Alaska appropriations991$ 181$ -$ -$ -$ 1,172$ Revenue from operating plants23,293 2,509 - - - 25,802 Interest on loans - - - 391 - 391 Other revenues - 114 - 70 - 184 Total operating revenues 24,284 2,804 - 461 - 27,549 Operating expensesDepreciation11,278 798 - - - 12,076 General and administrative1,192 380 - 123 - 1,695 Plant operating6,203 2,474 - - - 8,677 - Total operating expenses18,673 3,652 - 123 - 22,448 Operating Income (Loss) 5,611 (848) - 338 - 5,101 Nonoperating revenues (expenses) and otherInvestment income, net expenses9,170 106 - 568 2 9,846 Federal direct bond interest expense subsidy1,014 - - - - 1,014 Interest expense and other charges(11,414) - - - - (11,414) capital contributions (1,230) 106 - 568 2 (554) Income (Loss) before Capital Contributions 4,381 (742) - 906 2 4,547 Capital Contributions 574 - - - - 574 Change in Net Position 4,955 (742) - 906 2 5,121 Fund Balance, Beginning of Year155,866 12,553 183,682 40,278 1,720 394,099 Fund Balance, End of Year160,821 11,811 183,682 41,184 1,722 399,220 See Independent Auditor’s Report.Total nonoperating revenues (expenses) before Alaska Energy Authority(A Component Unit of the State of Alaska)Schedule 4 – Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Revenues, Expenses, and Changes in Net Position(in thousands)Year Ended June 30, 202465 DraftRenewal andCapitalOperatingRevenue andContingencyOperating ConstructionDebt ServiceReserveRevenueOperatingReserveOperatingReserveReserveFundFundFundFundFundAccountFundFundAccountTotalBalance at July 1, 2023158,063$ 2,529$ 16,166$ 615$ 339$ 160$ 2,842$ 3,359$ 1,471$ 185,544$ Bond Proceeds- - - - - - - - - - Cost of issuance- - - - - - - - - - Interest received7,687 53 770 63 26 8 235 246 77 9,165 Bond principal paid- (2,779) - - - - - - - (2,779) Bond interest paid- (6,642) - - - - - - - (6,642) Operating budget surplus paid- - - 233 - - (998) (989) - (1,754) Capital expenditures(2,005) - - - - - - - - (2,005) Operating revenue received- - - 4,451 - - 22,533 - - 26,984 Operating expenses paid- - - (733) (913) - (7,305) (999) - (9,950) Transfers between funds515 9,348 (779) 1,605 750 22 (14,550) 3,661 (2) 570 Balance at June 30, 2024 164,260$ 2,509$ 16,157$ 6,234$ 202$ 190$ 2,757$ 5,278$ 1,546$ 199,133$ See Independent Auditor’s Report.Alaska Energy Authority(A Component Unit of the State of Alaska)Schedule 5 – Bradley Lake Hydroelectric Project Trust Account Activities (Unaudited)(in thousands)Year Ended June 30, 202466 DraftBalance at Balance at July 1, 2023 Additions Deletions June 30, 2024 Capital assets Intangible 183,696$ -$ -$ 183,696$ Production 323,942 3,477 (1,206) 326,213 Transmission 206,250 2,320 - 208,570 General 6,240 946 (21) 7,165 Total capital assets 720,128 6,743 (1,227) 725,644 Less accumulated depreciation Intangible (8) (1) - (9) Production (173,312) (8,873) - (182,185) Transmission (165,417) (3,113) - (168,530) General (5,597) (89) 10 (5,676) Total accumulated depreciation (344,334) (12,076) 10 (356,400) Capital assets, net 375,794$ (5,333)$ (1,217)$ 369,244$ See Independent Auditor’s Report. Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 6 – Capital Assets Presented under Federal Energy Commission Requirements (Unaudited) (in thousands) Year Ended June 30, 2024 67 DraftAs of As of Operating Data June 30, 2023 June 30, 2024 Variance Project costs Operations and maintenance 4,339$ 4,356$ (17)$ Repairs 1,263 45 1,218 General and administrative 1,979 1,681 298 Insurance 986 1,270 (284) Capital purchases 525 333 192 Contributions to/(from) capital reserve fund 96 (58) 154 Contributions to renewal and contingency fund and operating reserve account 2,731 2,131 600 11,919 9,758 2,161 Debt service 15,436 15,386 50 Less Federal interest subsidy (1,052) (1,020) (32) Less investment income (577) (881) 304 Total cost of power 25,726$ 23,243$ 2,483$ See Independent Auditor’s Report. Alaska Energy Authority (A Component Unit of the State of Alaska) (in thousands) Schedule 7 – Bradley Lake Historical Annual Project Cost (Unaudited) Year Ended June 30, 2024 68 DraftFY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024Beginning cash and investment balance 977,867$ 969,389$ 946,939$ 1,023,566$ 1,073,378$ 1,072,825$ 1,078,157$ 1,154,364$ 972,615$ 975,717$ InflowsAnnual investment earnings33,192 8,912 112,331 76,602 74,142 48,303 150,299 (143,842) 88,405 69,285 Total inflows33,192 8,912 112,331 76,602 74,142 48,303 150,299 (143,842) 88,405 69,285 OutflowsTransfers to AEA for PCE payments (1) (41,002) (30,622) (34,956) (25,595) (29,719) (27,000) (28,237) (24,000) (38,993) (47,694) Transfers to Other Funds- - - - (44,000) (14,867) (43,965) (12,140) (45,000) - Program administration - AEA(248) (255) (243) (624) (444) (575) (737) (602) (214) (568) Administrative fee - Regulatory Commission(107) (100) (112) (113) (102) (108) (123) (135) (126) (167) Management fee - Department of Revenue(313) (385) (393) (458) (430) (421) (1,030) (1,030) (970) (1,901) Total outflows(41,670) (31,362) (35,704) (26,790) (74,695) (42,971) (74,092) (37,907) (85,303) (50,330) Ending cash and investment balance969,389$ 946,939$ 1,023,566$ 1,073,378$ 1,072,825$ 1,078,157$ 1,154,364$ 972,615$ 975,717$ 994,672$ (1) Final PCE program expenditures reported may vary depending on outstanding PCE payables at June 30, not included in this presentation. See Independent Auditor’s Report.Alaska Energy Authority(A Component Unit of the State of Alaska)Schedule 8 – PCE Endowment Fund Historical Analysis (Unaudited)(in thousands)Year Ended June 30, 202469 Draft70 Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 9 – Supplementary Organization and Project Information) June 30, 2024 Organization and Operations Throughout the 1980’s, Alaska Energy Authority (AEA or Authority) worked to develop the State’s energy resources as a key element in diversifying Alaska’s economy. A number of large-scale projects were constructed; four of those projects were sold in 2002 and one was transferred to the City of Larsen Bay in the fall of 2010. The Bradley Lake Hydroelectric project provides some of the least expensive electric energy to the Railbelt. The Alaska Intertie provides for connection and movement of power north or south to increase reliability and allow Interior Alaska to obtain less expensive electric energy available from the Southcentral portion of the state. Pursuant to statute, on August 12, 1993, the Board of the Alaska Industrial Development and Export Authority (AIDEA), a public corporation and a political subdivision of the State, became the Board of Directors of AEA. AEA continues to exist as a separate legal entity. The corporate structure and operating assets of AEA were retained, but the ability to have employees and construct or acquire energy projects was eliminated. Among other things, AIDEA provides personnel services to AEA. The AEA executive director is an employee of AIDEA, but is separate and independent and is not subject to supervision by AIDEA’s executive director. There is no commingling of funds, assets, or liabilities between AIDEA and AEA, and there is no responsibility of one for the debts or the obligations of the other. Consequently, the accounts of AIDEA are not included in the accompanying financial statements. The Legislature, in 1993, required AEA, to the maximum extent feasible, to enter into contracts with public utilities and other entities to carry out AEA duties with respect to the ongoing operation and maintenance of the AEA owned operating assets; this has occurred with oversight responsibility retained by AEA. Rural energy programs previously administered by the former Department of Community and Regional Affairs, Division of Energy, were transferred to AEA for administration, as part of a larger reorganization of State agencies. These rural energy programs were originally part of AEA prior to the 1993 reorganization. During fiscal year 2009, legislation added energy development programs to AEA. The Alaska Legislature empowered AEA to acquire a Susitna River power project under AS 44.83.080 (18), effective July 1, 1999. Effective July 14, 2011, the legislature empowered AEA to acquire, construct, own, and operate a hydroelectric project located on the Susitna River. Under this legislative authorization, AEA worked on planning, designing, and Federal Energy Regulatory Commission (FERC) licensing of the Susitna-Watana Hydroelectric Project. On February 21, 2019, pursuant to Administrative Order No. 271, AEA advanced the licensing process through FERC. FERC required an updated Study Plan Determination which included additional environmental impact studies. In 2019 FERC ruled that AEA would not need to repeat any of the Integrated Licensing Process. Bradley Lake Hydroelectric Project The project has 120 Megawatts (MW) of installed capacity and transmits its power to the State’s main power grid via two parallel 20–mile transmission lines. The project, which cost in excess of $300 million, went into commercial operation in 1991. Homer Electric Association now operates the project under contract with AEA. Bradley Lake serves Alaska’s Railbelt from the Kenai Peninsula to Fairbanks, as well as the Delta Junction area. Draft 71 Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 9 – Supplementary Organization and Project Information) June 30, 2024 In September 2016, the Authority received an amendment to the FERC license for a diversion of West Fork Upper Battle Creek into Bradley Lake. The diversion increases the Bradley Lake Hydroelectric Project annual energy output to approximately 37,000 Megawatt hours (MWh). The Battle Creek project addition included construction of three miles of road, a concrete diversion dam, and a pipe and canal to convey the water to Bradley Lake. Construction began in 2018 and was completed in October 2020. In December 2020, the Authority closed on the purchase of the Soldotna to Quartz Creek (SSQ) Transmission Line, which issued bonds in the amount of $17,000,000. Purchase of the SSQ Line is in support of the Bradley Lake Hydroelectric Project. In June 2022, the Authority applied $10.9 million as an early prepayment to pay down the debt service. On November 30, 2022, the Authority issued $166 million of bonds (the Eleventh Series). Proceeds from this bond issue will be utilized for capital projects of the Bradley Lake Hydroelectric Project. Starting in fiscal year 2023 AEA started studies for the Dixon Diversion Project to optimize the energy potential of the Bradley Lake Hydroelectric Project. Like the West Fork Upper Battle Creek Diversion Project, the Dixon Diversion Project would divert water from Dixon Glacier in order to increase Bradley Lake's annual energy production by fifty percent. Dixon Diversion is located five miles from Bradley Lake and would utilize the existing powerhouse at Bradley Lake. Estimated annual energy if this project was completed would be 100,000-200,000 MWh of additional energy. This would power between 24,000-30,000 homes each year. As well, it is estimated to offset 1.5-1.6 billion cubic feet of natural gas per year as part of the Railbelt power generation (equal to 7.5% of Alaska's unmet natural gas demand projected for 2030). Estimated completion for this project is 2030. Alaska Intertie Project The Alaska Intertie is a 170–mile transmission line designed for 345kV and operated at 138kV. It runs between Willow and Healy and interconnects the electric utilities in the Southcentral region with Fairbanks area electric utilities. The Intertie Management Committee (IMC) and AEA manage the Alaska Intertie according to the terms and conditions of the Alaska Intertie Agreement. AEA contracts with the following utilities for operations and maintenance: Golden Valley Electric Association (GVEA) in Fairbanks, and Southcentral Alaska utilities, Chugach Electric Association (CEA) and Matanuska Electric Association (MEA) (Participating Utilities). The Intertie reduces the number of black/brownouts throughout the system by enabling power to move either north or south when major system disturbances occur. The Intertie enables GVEA to purchase low cost power from Southcentral utilities and allows Southcentral Alaska utilities to purchase power from Fairbanks during power shortages. It also enables GVEA to receive power generated by the Bradley Lake Project, which is some of the lowest priced power in the Railbelt region. The Intertie Management Committee (IMC) and AEA manage the activities of the Alaska Intertie project under the terms and conditions of the Second Amended and Restated Intertie Agreement (Agreement) executed on March 11, 2014. AEA contracts with certain Participating Utilities for operations and maintenance. The Agreement improves the reliability of the interconnected electrical systems, outlines how the transfer over the Intertie of electrical capacity and energy among the participants will occur, and establishes the IMC. The IMC’s primary responsibility is to provide governance, control, operation, maintenance, repair, and improvement to the Intertie, subject to AEA’s oversight. The IMC is comprised of a representative from AEA and each of the Participating Utilities. Draft 72 Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 9 – Supplementary Organization and Project Information) June 30, 2024 Susitna-Watana Hydroelectric Project Starting in 2010, AEA conducted preliminary planning and conceptual design for a large hydroelectric project to be built in the Railbelt Region. A number of hydroelectric generation alternatives were studied and AEA issued a Preliminary Decision Document selecting what is now known as the Susitna-Watana Hydroelectric Project as the primary large hydroelectric project for the State to pursue. The proposed Susitna-Watana Hydroelectric Project would be located approximately half-way between Anchorage and Fairbanks on the upper Susitna River. The Susitna-Watana dam would be located within a steep- sided valley of the Susitna River below Watana Creek at River Mile 184, approximately 22 miles upstream of the Devil's Canyon rapids. The project would include a single roller compacted concrete dam with a height providing nominal crest elevation at 2,050 feet mean sea level with a 23,546 acre, 42.5-mile long reservoir with an average width of one to two miles. The height of the dam was determined to be 705 feet tall during the engineering feasibility studies. The powerhouse, dam, and related facilities would be linked by transmission lines connecting the project to the Alaska Intertie. The project would produce about 50% of the Railbelt's electrical demand or an annual average of 2,800,000 MWh. AEA filed a Notice of Intent and Pre-Application Document with the FERC to begin the licensing process for the project in December 2011. The FERC approved 58 environmental study plans in early 2013. In implementing the study plans, AEA worked closely with the Alaska Department of Fish and Game in conducting the fishery and wildlife studies. On June 3, 2014, AEA filed the Initial Study Report (ISR) for the project. The approximately 7,000 page ISR presents information collected from the first year of field studies. The Alaska Legislature has appropriated a total of $192 million for AEA to plan, design, and obtain a FERC permit for the project. On December 26, 2014, Governor Bill Walker of Alaska (Governor Walker) issued Administrative Order (AO) 271 suspending discretionary spending on the project. On January 8, 2015, the FERC granted AEA’s request to hold the licensing process in abeyance. On July 6, 2015, Governor Walker’s office authorized AEA to proceed with the Integrated Licensing Process (ILP) using previously appropriated funds. AEA, in August 2015, requested the FERC’s permission to resume the licensing efforts. On August 4, 2016, Governor Walker issued a letter to FERC requesting to proceed with the ILP to the point of issuing an updated Study Plan Determination (SPD) to preserve the State of Alaska’s investment in the project. On August 26, 2016, FERC responded to the Governor’s letter stating that FERC will proceed with the ILP to complete the SPD. After issuing the SPD, the project will be put into abeyance as requested by the Governor. Draft 73 Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 9 – Supplementary Organization and Project Information) June 30, 2024 On June 22, 2017, FERC issued its Determination on the ISR for Susitna. Overall, it was very favorable to the State. However, since it was issued more than 100 days beyond the ILP schedule of March 10, 2017, there was insufficient time within FY17 to complete previously authorized scopes of work to complete a comprehensive analysis of the Determination and revise study reports as needed. AEA requested that a portion of the Susitna appropriation be extended for 90 days to complete this work and preserve the value of the State’s investment to the maximum extent possible. On July 18, 2017, the OMB issued a memo to AEA authorizing the continued spending on the project 90 days from June 30, 2017. AEA was granted concurrence and authorization to spend necessary funds in order to proceed to the point where the State’s investment, to date, is preserved. The work was completed, and all remaining contracts were terminated September 30, 2017. The remaining funds, approximately $1,893,000, were returned to the State in FY19. The licensing project that was in abeyance (FY14) had been rescinded in FY19 (AO 271). Looking ahead and to the extent the project proposal does not change, and the data gathered remains representative of current conditions, FERC ruled that AEA would not need to repeat the already completed Integrated Licensing Process (ILP) steps. As of June 30, 2024 the project is still viable and AEA continues to engage discussions with the Congressional Delegation and current presidential administration in order to maintain federal support of the project. POWER COST EQUALIZATION ENDOWMENT FUND MANAGED AS PART OF THE ALASKA PERMANENT FUND Financial Statements June 30, 2024 (With Independent Auditors’ Report Thereon) KPMG LLP Suite 200 3800 Centerpoint Drive Anchorage, AK 99503 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Independent Auditors’ Report The Board of Trustees Alaska Permanent Fund Corporation and The Board of Directors Alaska Energy Authority (A Component Unit of the State of Alaska): Opinion We have audited the financial statements of the Power Cost Equalization Endowment Fund Managed as part of the Alaska Permanent Fund (the Fund) which comprise the statements of net position as of June 30, 2024, and the related statements of changes in net position for the year then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Fund, as of June 30, 2024, and the changes in its financial position for the year then ended in accordance with U.S. generally accepted accounting principles. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Fund and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the Alaska Energy Authority as of June 30, 2024, or the changes in its financial position for the year then ended in accordance with U.S. generally accepted accounting principles. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with U.S. generally accepted accounting principles, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in 2 the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Management has omitted the managements’ discussion and analysis that U.S. generally accepted accounting principles require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements are not affected by this missing information. Anchorage, Alaska September 5, 2024 POWER COST EQUALIZATION ENDOWMENT FUND MANAGED AS PART OF THE ALASKA PERMANENT FUND STATEMENT OF NET POSITION June 30, 2024 Assets Cash and temporary investments $ 45,833,000 Receivables and other assets 5,515,000 Investments: Marketable debt securities 211,214,000 Preferred and common stock 327,340,000 Real estate 114,515,000 Absolute return 57,675,000 Private credit 35,025,000 Private equity 146,874,000 Infrastructure 40,929,000 Total investments 933,572,000 Securities lending collateral 44,045,000 Total assets 1,028,965,000 Liabilities Accounts payable 13,665,000 Securities lending collateral 44,045,000 Total liabilities 57,710,000 Net position Restricted for Alaska Energy Authority $ 971,255,000 See accompanying notes to the financial statements. 3 POWER COST EQUALIZATION ENDOWMENT FUND MANAGED AS PART OF THE ALASKA PERMANENT FUND STATEMENT OF CHANGES IN NET POSITION Year Ended June 30, 2024 Investment earnings Interest $ 7,079,000 Dividends 7,399,000 Real estate and other income 5,584,000 Total interest, dividends, real estate and other income 20,062,000 Net increase (decrease) in the fair value of investments: Marketable debt securities 1,545,000 Preferred and common stock 46,171,000 Real estate (7,328,000) Absolute return 6,564,000 Private credit 752,000 Private equity 421,000 Infrastructure 2,340,000 Foreign currency forward exchange contracts and futures 2,208,000 Currency (4,612,000) Total net increase in the fair value of investments 48,061,000 Investment expenses (1,777,000) Net investment income 66,346,000 Capital transactions Deposits to investment fund 958,575,000 Withdrawals from investment fund (53,666,000) Net increase in net position 971,255,000 Net position at beginning of year — Net position at end of year $ 971,255,000 See accompanying notes to the financial statements. 4 5 (Continued) NOTES TO THE FINANCIAL STATEMENTS June 30, 2024 1. ENTITY The Power Cost Equalization Endowment Fund (PCE, Fund) was created by the Alaska Legislature under AS 42.45.070. The PCE is established as a separate fund of the Alaska Energy Authority (AEA, Authority), a component unit of the State of Alaska. The purpose of the PCE is to provide for affordable electric utility costs in otherwise high-cost service areas of the state through subsidies and grants. By statute, effective July 1, 2023, the assets of the Fund are to be held and invested by the Alaska Permanent Fund Corporation ("APFC") under the same investment authority as the Alaska Permanent Fund is managed. The APFC is a governmental instrumentality of the State and is administered by a board of trustees (“Trustees” or “Board”). By statute, net income from the Fund is distributed to the AEA and is not included in the computation of the Alaska Permanent Fund transfers to the General Fund. Annual draws are limited to five percent of the average ending market value of the Fund for the previous three closed fiscal years and include costs incurred by APFC to manage the Fund. 2. SIGNIFICANT ACCOUNTING POLICIES These financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. In preparing the financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the period. The fair value of real estate, private credit, private equity, and infrastructure investments, and the related unrealized gains and losses thereon, are particularly sensitive estimates. Actual results could differ from those estimates. The Fund owns unit shares of assets managed by the APFC. Values of assets and liabilities reported in the financial statements represent the Fund’s proportional share of the total assets managed by the APFC and are not a direct interest held by the Fund in the assets. Cash and temporary investments The amounts shown on the Statements of Net Position as cash and temporary investments include cash on deposit at the custodian bank, cash swept to overnight investment funds, cash collateral held at derivatives brokers, U.S. Treasury bills, commercial paper, and the net fair value of foreign exchange forward contracts. The APFC’s asset allocation includes approximately two percent in cash. The APFC investment policy specifies that funds dedicated to this portion of the asset allocation will be invested in money market funds or fixed income securities with weighted average maturities of no greater than 24 months. Deposits to investment fund Contributions from the Authority, State appropriations, and other sources are recorded when they are received. Forward exchange contracts The APFC’s investment managers enter into a variety of forward currency contracts in their trading activities and management of foreign currency exchange rate risk exposure. These contracts are typically intended to neutralize the effect of foreign currency fluctuations, and the contract amounts do not appear on the balance sheet. Realized gains and losses are included in the net increase/decrease in the fair value of investments at the time the contract is settled and determined based on the difference between the contract rate and the market rate at the time of maturity or closing. Unrealized gains and losses are also included in the net increase/decrease in the fair value of investments and are calculated based on the difference between the contract rate and a forward market rate determined as of the balance sheet date. 6 (Continued) A portion of the investment in forward exchange contracts is intended to manage, rather than neutralize, foreign currency fluctuations. Certain managers seek to control the effect of fluctuations in foreign exchange rates within their overall portfolio strategy rather than on a security-by-security basis. They attempt to optimize their foreign currency exposure in a market rather than accept the natural geographical exposure to the market’s currency. Futures Certain equity and fixed income managers for the Fund are permitted to buy and sell equity and interest rate index futures. The gross contract and fair value of futures do not appear in the balance sheets. The net unrealized gain or loss on open futures trades is included in investments on the balance sheets, based on the difference between the future’s purchase price and the current value of such futures. Realized gains and losses on futures are included in the net increase/decrease in the fair value of investments at the time the futures contract expires. The net change in unrealized gains and losses is also included in the net increase/decrease in the fair value of investments. Investment income Earnings are allocated from the commingled invested assets monthly as a credit to the Fund on the basis of total unit shares outstanding at the end of the month. All earnings are subject to allocation, which includes interest, dividends, and realized and unrealized gains and losses on total investments managed by the APFC. Investments and related policies The Fund’s investments managed by the APFC have been commingled with the assets of the Alaska Permanent Fund and certain assets of the Alaska Mental Health Trust Authority for investment purposes. The investments have been credited with unit shares and fractions of unit shares, which represent an undivided beneficial interest in the commingled assets managed by the APFC equal to the proportion those shares bear to the total unit shares outstanding. The Fund has received unit shares and fractions of unit shares based directly upon the dollar amount per share of funds contributed. The Fund will be charged with unit shares and fractions of unit shares based directly upon the dollar amount per share of funds withdrawn. Carrying value of investments The investments managed by the APFC are reported at fair value in the Statement of Net Position. Investments without a readily determinable fair value are generally reported at the net asset value per share (or its equivalent) of the investment. Securities transactions are recorded on the trade date that securities are purchased or sold. Unrealized gains and losses are reported as components of net change in net position. State investment regulations In accordance with Alaska Statute 37.13.120(a), the Trustees have adopted regulations designating the types of eligible investments. The regulations follow the prudent investor rule, requiring the exercise of judgment and care under the circumstances then prevailing that an institutional investor of ordinary prudence, discretion, and intelligence exercises in the designation and management of large investments entrusted to it, not in regard to speculation, but in regard to the permanent disposition of funds, considering preservation of the purchasing power of the assets over time while maximizing the expected total return from both income and the appreciation of capital. 7 (Continued) Investment policy – Asset allocation The Trustees have established a long-term goal of achieving a five percent real rate of return over time on the investment portfolio. To help achieve this goal, the Trustees allocate the investments among various asset classes. At June 30, 2024, the APFC’s strategic asset allocation targets were as follows: Asset class Asset class target Public equities 34% Fixed income 20% Private equity 16% Real estate 10% Private income 9% Absolute return 7% Tactical opportunities 2% Cash 2% To allow for market fluctuations and to minimize transaction costs, the Trustees have adopted ranges that permit percentage deviations from the strategic asset allocation targets in accordance with specified reporting requirements and other procedures. Generally, for each asset class, the APFC’s Chief Investment Officer has discretionary authority to permit target deviations within one specified range (referred to as the “green zone” in the investment policy), the APFC’s Executive Director can approve target deviations for up to 90 days within a broader range (the “yellow zone”), and the Board can approve operating for longer than 30 days within a third range (the “red zone”). For example, the target dollar allocation for the public equities class is 34 percent, with the green zone range set at plus or minus five percent, the yellow zone range set at zero to five percent beyond the green zone, and red zone range set at greater than five percent beyond the green zone. In a similar manner, the APFC investment policy also requires the APFC to monitor relative risk (the expected investment portfolio’s risk and return relative to the risk benchmark using standard industry risk measures), active budget risk (risk due to active management decisions made by managers), and limits on private investments and future commitments. Concentration of credit risk Concentration of credit risk is the risk of loss attributable to holding investments from a single issuer. The APFC manages the Fund’s concentration of credit risk by following its strategic asset allocation policy, diversifying investments among managers with varying investment styles and mandates, and monitoring tracking error. Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked. The APFC’s policy for mitigating this risk of loss for fixed income and equity investments is to ensure compliance with the APFC investment policy and investment manager contracts. There is no single-issuer exposure within the APFC portfolio that comprises five percent or more of the overall portfolio. Therefore, no concentration of credit risk is reported in the notes to the financial statements. Credit risk Credit risk is the risk that an issuer or other counterparty to a marketable debt investment will not fulfill its obligations. The APFC requires that its investment grade fixed income managers invest in domestic and non-domestic bonds that have an explicit or implied investment grade rating. Should the required ratings on an existing fixed income security fall below the minimum standards, the security must be sold within seven months. Certain high yield investment managers are allowed to invest a specified amount of funds in bonds rated below investment grade. 8 (Continued) Custodial credit risk Custodial credit risk is the risk that in the event of a bank failure the Fund’s deposits may not be returned. The APFC generally requires that all investment securities at custodian banks be held in the name of the Alaska Permanent Fund or the APFC (on behalf of the Alaska Permanent Fund). For non-domestic securities held by most sub-custodians, the APFC’s primary custodian provides contractual indemnities against sub-custodial credit risk. Excess cash in custodial accounts is swept daily to a money market fund. Late deposits of cash which miss the money market sweep deadline are deposited to an interest-bearing account at the custodian. These deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times, balances in individual accounts exceed this limit. Foreign currency risk Foreign currency risk is the risk of loss from adverse changes in foreign currency exchange rates. Foreign currency risk is managed through foreign currency forward contracts and by diversifying assets into various countries and currencies. Interest rate risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The APFC manages the Fund’s exposure to interest rate risk in part through tracking error guidelines set forth in the APFC investment policy. Duration is an indicator of a portfolio’s market sensitivity to changes in interest rates. In general, the major factors affecting duration are, in order of importance, maturity, prepayment frequency, level of market interest rates, size of coupon, and frequency of coupon payments. Rising interest rates generally translate into the value of fixed income investments declining, while falling interest rates are generally associated with increasing value. Effective duration attempts to account for the price sensitivity of a bond to changes in prevailing interest rates, including the effect of embedded options. As an example, for a bond portfolio with a duration of five years, a one percentage point parallel decline in interest rates would result in an approximate price increase on that bond portfolio of five percent. The Fund held fixed income investments with floating, step, variable, and zero interest rates, valued at $11.9 million at June 30, 2024. The current annual interest rates range from 0 to 9.6 percent. Unit shares Unit shares represent an undivided beneficial interest in the commingled assets managed by the APFC and are computed on the next calendar day following the valuation date. Valuation date The last calendar day of each month is designated as the valuation date. Withdrawals from investment fund Distributions to the Authority, and to the State on behalf of the Authority, are made by liquidation of unit shares. Liquidation of the Fund’s unit shares are made at the net asset value of those shares. 9 (Continued) 3. CASH AND TEMPORARY INVESTMENTS Cash and temporary investments, which includes the market values of foreign currency (FX) and FX forward exchange contracts, are summarized as follows at June 30: 2024 Cash $ 2,492,000 Pooled funds 17,240,000 U.S. Treasury bills 26,071,000 FX forward exchange contracts 30,000 Total cash and temporary investments $ 45,833,000 Uninvested cash was held at the custodian, sub-custodian, or derivatives broker banks, primarily in interest-bearing accounts. All pooled funds were invested in a money market fund. U.S. Treasury bills are explicitly guaranteed by the U.S. government. Late deposits of cash which miss the money market sweep deadline and foreign currency are deposited in an interest-bearing account at the custodian. The Fund’s portion of deposit amounts that exceeded the FDIC insurance limit was $1.7 million on June 30, 2024. 4. MARKETABLE DEBT SECURITIES Marketable debt securities categorized by debt instrument type at June 30 are summarized as follows: Unrealized 2024 Cost Fair value gains (losses) Mortgage-backed securities $ 35,559,000 35,012,000 U.S. Treasury and government notes/bonds 29,822,000 30,687,000 U.S. corporate bonds 87,453,000 86,011,000 U.S. commercial mortgage and asset-backed securities 10,771,000 10,856,000 U.S. exchange traded funds 1,449,000 1,562,000 Non-U.S. government bonds 30,867,000 30,724,000 Non-U.S. corporate bonds 15,005,000 15,365,000 Non-U.S. commercial mortgage and asset-backed securities 613,000 626,000 Non-U.S. exchange traded funds 352,000 371,000 Total marketable debt securities $ 211,891,000 211,214,000 10 (Continued) 5. MARKETABLE DEBT CREDIT RATINGS To manage credit risk for marketable debt securities, the APFC monitors fair values of all securities daily and routinely reviews its investment holdings’ credit ratings. For accounts with an investment grade mandate, issues falling below the minimum standards are required to be sold within seven months of the downgrade date. Minimum standards are a Standard & Poor's Corporation rating of BBB or better, or Moody's Investors Service, Inc. rating of Baa or better, or a comparable rating by another Nationally Recognized Statistical Rating Organization (NRSRO) or by a recognized rating service in the jurisdiction of the issuer. Accounts with high yield mandates are allowed to hold positions in assets with below investment grade ratings (high yield bonds). For purposes of this note, if credit ratings differ among the NRSROs used, the rating with the highest degree of risk (the lowest rating) is reported. At June 30, 2024, the Fund’s credit ratings for its marketable debt securities are as follows: Percentage NRSRO quality ratings Domestic Non-domestic Total fair value of holdings AAA $7,840,000 3,534,000 11,374,000 5.39% AA 5,608,000 7,896,000 13,504,000 6.39% A 26,787,000 5,989,000 32,776,000 15.52% BBB 39,826,000 9,691,000 49,517,000 23.44% BB 12,972,000 3,130,000 16,102,000 7.62% B 3,803,000 1,230,000 5,033,000 2.38% CCC - - - 0.00% CC - - - 0.00% C - - - 0.00% D - 2,150,000 2,150,000 1.02% Total fair value rated debt securities $ 96,836,000 33,620,000 130,456,000 61.76% Exchange traded funds 1,562,000 371,000 1,933,000 0.92% Not rated 297,000 13,095,000 13,392,000 6.34% U.S. government explicitly backed by the U.S. government 38,763,000 - 38,763,000 18.35% U.S. government implicitly backed by the U.S. government 26,670,000 - 26,670,000 12.63% Total fair value debt securities $ 164,128,000 47,086,000 211,214,000 100.00% 11 (Continued) 6. MARKETABLE DEBT DURATION To manage its interest rate risk on marketable debt securities, the APFC monitors fair values daily and routinely reviews portfolio duration in comparison to established benchmarks. At June 30, 2024, the effective duration by investment type, based on fair value, is as follows: Percentage of holdings Duration Domestic bonds Mortgage-backed securities 21.33% 6.15 Treasury and government notes/bonds 18.70% 6.16 Corporate bonds 52.41% 6.48 Commercial mortgage and asset-backed securities 6.61% 1.32 Exchange traded funds 0.95% — Total domestic bonds 100.00% 5.95 Non-domestic bonds Treasury and government notes/bonds 65.25% 7.62 Corporate bonds 32.63% 6.92 Commercial mortgage and asset-backed securities 1.33% 1.27 Exchange traded funds 0.79% — Total non-domestic bonds 100.00% 7.24 7. PREFERRED AND COMMON STOCK Direct investments in preferred and common stock are held by the APFC’s custodian bank on behalf of the Fund. The Fund also invests in commingled stock funds, which are held by the custodian bank of the fund manager on behalf of fund investors, and equity index futures, which are held at the prime broker. Preferred and common stocks and commingled stock funds at June 30 are summarized as follows, which include the net fair value of equity index futures of $(1,000) at June 30, 2024: Unrealized 2024 Cost Fair value gains (losses) Direct investments Domestic stock $ Non-domestic stock Commingled funds Total preferred and common stock $ 8. FOREIGN CURRENCY EXPOSURE Foreign currency risk arises when a loss could result from adverse changes in foreign currency exchange rates. Foreign currency risk is managed by the international investment managers in part through their decisions to enter into foreign currency forward contracts. Foreign currency risk is also managed through the diversification of assets into various countries and currencies. 12 (Continued) At June 30, 2024, the Fund’s cash holdings, foreign currency forward contracts, non-domestic public and private equity, and debt securities had exposure to foreign currency risk as follows (shown in U.S. dollar equivalent at fair value and based on the currency in which the securities are held and traded): Equity, private Total foreign Cash and Foreign exchange debt, real estate, Marketable currency Foreign currency cash equivalents forward contracts infrastructure debt exposure Australian Dollar $27,000 (715,000) 3,942,000 457,000 3,711,000 Brazil Real 12,000 4,000 1,435,000 — 1,451,000 Canadian Dollar 17,000 (700,000) 6,875,000 607,000 6,799,000 Chilean Peso 3,000 — 78,000 — 81,000 Chinese Yuan Renminbi 23,000 (3,177,000) 3,704,000 3,091,000 3,641,000 Colombian Peso 1,000 — 25,000 — 26,000 Czech Koruna 1,000 (69,000) 12,000 66,000 10,000 Danish Krone 4,000 — 2,114,000 — 2,118,000 Egyptian Pound 1,000 — 16,000 — 17,000 Euro Currency 713,000 (9,765,000) 43,735,000 8,232,000 42,915,000 Hong Kong Dollar 49,000 (152,000) 8,768,000 — 8,665,000 Hungarian Forint 2,000 — 120,000 — 122,000 Indian Rupee 18,000 (3,000) 5,306,000 — 5,321,000 Indonesian Rupiah 6,000 (278,000) 772,000 271,000 771,000 Israeli Shekel 17,000 (192,000) 342,000 190,000 357,000 Japanese Yen 91,000 (5,803,000) 15,000,000 5,785,000 15,073,000 Kuwaiti Dinar — — 71,000 — 71,000 Malaysian Ringgit 6,000 (253,000) 443,000 250,000 446,000 Mexican Peso 15,000 (222,000) 772,000 217,000 782,000 New Taiwan Dollar 16,000 (8,000) 6,647,000 — 6,655,000 New Zealand Dollar 2,000 (88,000) 93,000 87,000 94,000 Norwegian Krone 3,000 (161,000) 944,000 161,000 947,000 Pakistan Rupee — — 31,000 — 31,000 Peruvian Sol — (152,000) — 147,000 (5,000) Philippines Peso 1,000 — 96,000 — 97,000 Polish Zloty (2,000) (77,000) 783,000 83,000 787,000 Pound Sterling 214,000 (2,867,000) 14,950,000 1,902,000 14,199,000 Qatari Riyal 4,000 — 178,000 — 182,000 Romanian Leu — (68,000) — 64,000 (4,000) Russian Ruble — — 2,000 — 2,000 Saudi Arabia Riyal 12,000 — 1,180,000 — 1,192,000 Singapore Dollar 8,000 (118,000) 1,297,000 115,000 1,302,000 South African Rand 2,000 — 856,000 — 858,000 South Korean Won 21,000 (672,000) 4,979,000 665,000 4,993,000 Swedish Krona 3,000 (2,000) 1,770,000 — 1,771,000 Swiss Franc 13,000 (266,000) 4,125,000 104,000 3,976,000 Thailand Baht — (189,000) 402,000 189,000 402,000 Turkish Lira 13,000 — 410,000 — 423,000 UAE Dirham 2,000 — 350,000 — 352,000 Total foreign currency exposure $ Cash amounts in the table above include receivables, payables, and cash balances in each related currency. If payables exceed receivables and cash balances in a currency, then the total cash balance for that currency will appear as a negative value. The remaining Fund assets are denominated in U.S. dollars and are not included in the table above. 13 (Continued) 9. SECURITIES LENDING State regulations at 15 AAC 137.510 and the APFC investment policy authorize the APFC to enter into securities lending transactions on behalf of the Fund. Through a contract with the Bank of New York Mellon (the Bank), the Fund lends marketable debt and equity securities to borrowers who are banks and broker-dealers. The loans are collateralized with cash or marketable securities guaranteed by the U.S. government or a U.S. government agency. Under the APFC’s contract with the Bank, the Bank must mark the loaned securities and collateral to the market daily, and the loan agreements require the borrowers to maintain the collateral at not less than 102 percent of the fair value of domestic loaned securities (and non-domestic loaned securities denominated in U.S. dollars) and not less than 105 percent of the fair value for other non-domestic loaned securities. The APFC can sell securities that are on loan. If a borrower fails to return the loaned securities (borrower default), the Bank can use cash collateral (and the proceeds on the sale of any noncash collateral) to purchase replacement securities. Generally, the Fund is protected from credit risk associated with the lending transactions through indemnification by the Bank against losses resulting from counterparty failure, reinvestment of cash collateral, default on collateral investments, or a borrower’s failure to return loaned securities. Cash collateral received for loaned securities is reported on the Fund’s Statement of Net Position and invested by the Bank on behalf of the Fund. As of June 30, 2024, such investments were in overnight repurchase agreements that had a weighted average maturity of one day. The average term of the loans was also one day. At June 30, the value of securities on loan and collateral invested are as follows: 2024 Fair value of securities on loan, secured by cash collateral $ Cash collateral Fair value of securities on loan, secured by noncash collateral Noncash collateral The Fund receives 80 percent of earnings derived from securities lending transactions and the Bank retains 20 percent. During the year ended June 30, 2024, the Fund incurred no losses from securities lending transactions. The Fund received $271,000 in earnings from securities lending for the year ended June 30, 2024, which is included in the real estate and other income line item on the Statement of Changes in Net Position. 10. FOREIGN EXCHANGE CONTRACTS, FUTURES, AND OFF-BALANCE SHEET RISK Certain external investment managers enter into foreign currency forward exchange contracts (FX forward contracts) to buy and sell specified amounts of foreign currencies at specified rates and future dates for the purpose of managing or optimizing foreign currency exposure. The maturity periods for outstanding contracts at June 30, 2024 ranged between two and 101 days. The counterparties to the FX forward contracts consisted of a diversified group of financial institutions. The Fund is exposed to credit risk to the extent of nonperformance by these counterparties. The Fund’s market risk as of June 30, 2024 is limited to the difference between contractual rates and forward market rates determined at the end of the fiscal year. 14 (Continued) FX forward contracts during the year ended June 30 are summarized as follows: 2024 Fair value of FX forward contracts, beginning of year $ - Net change in fair value of FX forward contracts 30,000 Fair value of FX forward contracts, end of year $ 30,000 Notional amount of FX forward contracts, end of year $ 6,557,000 Certain equity and fixed income investment managers are permitted to trade equity and U.S. Treasury index futures. Equity index futures are traded in both domestic and non-domestic markets based on an underlying stock exchange value. Index futures are settled with cash for the net difference between the trade price and the settle price. Futures in equity accounts during the years ended June 30 are summarized as follows: 2024 Fair value of equity index futures, beginning of year $ - Net change in fair value of equity index futures (1,000) Fair value of equity index futures, end of year $ (1,000) Notional amount of equity index futures, end of year $ (25,000) Futures in fixed income accounts during the years ended June 30 are summarized as follows: 2024 Fair value of U.S. Treasury index futures, beginning of year $ - Net change in fair value of U.S. Treasury index futures - Fair value of U.S. Treasury index futures, end of year $ - Notional amount of US Treasury index futures, end of year $ 126,000 11. REAL ESTATE The APFC invests Fund assets in a variety of real estate interests, including directly owned real estate, real estate investment trusts, private real estate funds, and other entities in which the assets consist primarily of real property. The APFC also holds a portfolio of real estate loans collateralized by income-producing, institutional real estate in the United States that are administered by an external institutional real estate management firm. In recent years, the APFC expanded its real estate portfolio strategy with a “Build-to-Core” investment program, creating high- quality properties. The APFC invests Fund assets in real estate directly through ownership of interests in corporations, limited liability companies, and partnerships that hold title to the real estate. External institutional real estate management firms administer the majority of the Fund’s directly owned real estate investments. The APFC initiated an internal real estate management program during FY2021, and two existing direct holdings were moved into this program. 15 (Continued) Real estate investments at June 30 are summarized as follows: Unrealized 2024 Cost Fair value gains (losses) Real estate investment trusts $ 9,801,000 9,072,000 (729,000) Real estate funds and notes 42,860,000 39,111,000 (3,749,000) American Homes 4 Rent II 1,147,000 1,421,000 274,000 Directly owned real estate Retail 13,027,000 18,723,000 5,696,000 Office 26,921,000 21,245,000 (5,676,000) Hotel 844,000 784,000 (60,000) Industrial 5,212,000 11,395,000 6,183,000 Multifamily 4,905,000 5,634,000 729,000 Development 8,161,000 7,130,000 (1,031,000) Total directly owned real estate 59,070,000 64,911,000 5,841,000 Total real estate $ 112,878,000 114,515,000 1,637,000 As of June 30, 2024, the APFC, on behalf of the Fund, had outstanding future funding commitments of $4.6 million for real estate fund investments. 12. ALTERNATIVE INVESTMENTS Alternative investments include the Fund’s investments in absolute return strategies, private credit, private equity, and infrastructure. Absolute return strategies are investments in specialized funds that seek to deliver returns that are largely uncorrelated with traditional market driven asset classes. The Fund is invested in two existing limited partnerships, in which the Fund is the only limited partner (“fund of one”); both are currently in liquidation. The Fund also holds direct hedge fund investments, in which the Fund is one of many limited partners. External investment management services are provided by institutional investment managers who have acknowledged their status as fiduciaries to the Fund. Because of the off-exchange and private nature of many absolute return strategies, investments may have no readily determinable fair value, and the estimated fair values could differ significantly from values that would be obtained in a market transaction for the assets. Each manager provides the APFC with fair value estimates of partnership interests and undergoes an annual independent audit. The Fund invests in private credit through limited partnerships that invest either directly in distressed or mezzanine debt, or in commingled limited liability funds with a distressed debt or credit opportunity focus. These investments are funded over time as opportunities arise. The limited partnerships and funds undergo annual independent audits. Private credit investments by their nature generally have no readily determinable fair value, and the estimated fair values may differ significantly from values that would be obtained in a market transaction for the assets. The Fund holds private equity through investments in limited liability companies and limited partnerships that typically invest in unlisted, illiquid common and preferred stock and, to a lesser degree, subordinated and senior debt of companies that are in most instances privately held. The APFC has hired external advisors to assist in the selection of private equity holdings diversified by geography and strategy. Private equity is funded slowly over time as opportunities are identified by the APFC staff, the external advisors, and the underlying fund managers. The underlying private equity funds provide the APFC with fair value estimates of the investments utilizing the most current information available. In addition, the external advisors review the fair value estimates, and the underlying private equity funds undergo annual independent audits. Private equity investments by their nature generally have no readily determinable fair value, and the estimated fair values may differ significantly from values that would be obtained in a market transaction for the assets. 16 (Continued) Infrastructure investments involve ownership or operating agreements in essential long-term service assets with high barriers to entry. Examples of infrastructure assets include toll roads, airports, deep water ports, communication towers, and energy generation, storage and transmission facilities. Investments in this asset class are expected to have inflation protection attributes and exhibit low correlations with other major asset classes in the APFC’s investment strategy. The Fund holds infrastructure investments through commingled funds organized as limited partnerships whose investment managers provide periodic fair value estimates and undergo annual independent audits. Infrastructure investments by their nature generally have no readily determinable fair value, and the estimated fair values may differ significantly from values that would be obtained in a market transaction for the assets. Alternative investments at June 30 are summarized as follows: Unrealized 2024 Cost Fair value gains Absolute return $ Private credit Private equity Infrastructure Total alternative investments $ As of June 30, 2024, the APFC, on behalf of the Fund, had outstanding future funding commitments of $455,000 for absolute return, $17.9 million for private credit, $41.4 million for private equity, and $13.4 million for infrastructure investments. Many alternative investments have liquidity constraints and may not be available for cash withdrawal until a specified period of time has elapsed. 13. FAIR VALUE MEASUREMENT Various inputs are used in valuing the investments held by the Fund. U.S. Generally Accepted Accounting Principles (GAAP) establishes a hierarchy of inputs used to value investments emphasizing observable inputs and minimizing unobservable inputs. These input levels are summarized as follows: Level 1 – Quoted prices for identical assets in an active market. Level 2 – Inputs, other than quoted prices, which are observable for the asset, either directly or indirectly. Level 3 – Unobservable inputs. Unobservable inputs should only be used to the extent that observable inputs are not available for a particular asset. 17 (Continued) Investments measured using Net Asset Value (NAV) per share as a practical expedient to fair value are not categorized into input levels. The input levels used to measure Fund’s investments at June 30 are summarized as follows: Measured 2024 Level 1 Level 2 Level 3 using NAV Total Marketable debt securities Mortgage-backed securities $ - 35,012,000 - - 35,012,000 U.S. Treasury and government notes/bonds 30,553,000 134,000 - - 30,687,000 U.S. corporate bonds 44,000 85,967,000 - - 86,011,000 U.S. commercial mortgage and asset-backed securities - 10,856,000 - - 10,856,000 U.S. exchange traded funds 1,562,000 - - - 1,562,000 Non-U.S. government bonds - 30,724,000 - - 30,724,000 Non-U.S. corporate bonds - 15,358,000 7,000 - 15,365,000 Non-U.S. commercial mortgage and asset-backed securities - 626,000 - - 626,000 Non-U.S. exchange traded funds 371,000 - - - 371,000 Total marketable debt securities $ 32,530,000 178,677,000 7,000 - 211,214,000 Preferred and common stock Domestic stock 181,481,000 12,000 - - 181,493,000 Non-domestic stock 143,314,000 - - - 143,314,000 Commingled funds 979,000 - - 1,554,000 2,533,000 Total preferred and common stock $ 325,774,000 12,000 - 1,554,000 327,340,000 Real estate Real estate investment trusts 9,072,000 - - - 9,072,000 Real estate funds and notes - - - 39,111,000 39,111,000 American Homes 4 Rent II - - - 1,421,000 1,421,000 Directly owned real estate - - - 64,911,000 64,911,000 Total real estate $ 9,072,000 - - 105,443,000 114,515,000 Absolute return - - - 57,675,000 57,675,000 Private credit - - - 35,025,000 35,025,000 Private equity - - - 146,874,000 146,874,000 Infrastructure - - - 40,929,000 40,929,000 Total investments $ 367,376,000 178,689,000 7,000 387,500,000 933,572,000 Measured using input levels Marketable debt securities and preferred and common stock classified as level 1 are valued using prices quoted in active markets for those securities. Marketable debt securities classified as level 2 are valued using matrix pricing and those at level 3 are term loans. Commingled funds reported at NAV use the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Publicly traded real estate investment trusts are valued using prices quoted in active markets and are reported as level 1. Directly held real estate, private real estate funds, and real estate debt investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Directly owned real estate investments are subject to annual appraisals and audits. 18 Absolute return investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Absolute return investments undergo annual independent financial statement audits. The redemption notice period is from 1-91 days and the frequency of redemption is daily to quarterly. Private credit investments are reported at NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Private credit investments undergo annual independent financial statement audits. Redemptions are not allowed, and the usual life of these investments is 5-7 years. Private equity investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Private equity investments undergo annual independent financial statement audits. Redemptions are not allowed, and the usual life of these investments is 10-12 years. Infrastructure investments are reported at the NAV of the capital account balance nearest to the balance sheet date, adjusted for subsequent contributions and distributions made prior to the balance sheet date. Infrastructure investments undergo annual independent financial statement audits. Redemptions are not allowed, and the usual life of these investments is 10-12 years. 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM DATE: October 22, 2024 TO: AEA Board of Directors FROM: Curtis W. Thayer, Executive Director RE: Creation and Sale of Renewable Energy Certificates (RECs) for Bradley Lake Hydroelectric Project AEA has the opportunity to generate additional revenue through the creation and sale of Renewable Energy Certificates (RECs) based on the generation of power at the Bradley Lake Hydroelectric Project. To capitalize on this opportunity, the Board has before it a draft resolution, which is supported by this memorandum. RENEWABLE ENERGY CERTIFICATES Renewable Energy Certificates (RECs) represent the environmental and renewable attributes of energy generated from renewable sources, such as wind, solar, hydro, or biomass. One REC corresponds to the generation and delivery to the grid of one megawatt-hour (MWh) of renewable electricity. While the electricity itself cannot be physically differentiated once it enters the grid, RECs serve as a certification of the renewable origin of the energy produced. By purchasing RECs, companies and individuals can legally claim the use of renewable energy, regardless of their physical access to renewable energy sources. The market for Renewable Energy Certificates (RECs) began in the late 1990s as a tool to track and certify the generation of renewable energy, evolving over time into a widely-used mechanism for companies and utilities to meet regulatory renewable energy mandates and voluntary sustainability goals. The current Renewable Energy Certificate (REC) market is well-established and growing, driven by increasing corporate demand for sustainability, regulatory requirements, and expanding renewable energy projects. RECs a key tool for achieving carbon reduction and renewable energy goals. RECs can be sold directly or through a broker to either the end-user or a wholesaler. Using a broker reduces the administrative burden and eliminates the need to develop knowledge of the market; however, this option incurs brokerage fees and hands over control to the broker. Selling Alaska Energy Authority Page 2 of 2 to a wholesaler often requires less administrative effort and provides more consistent demand; however, this option often results in a slightly lower purchase price. RENEWABLE ENERGY CERTIFICATE OPPORTUNITY FOR AEA AEA has the opportunity to create and sell roughly 400,000 RECs per year based on the power generation at the Bradley Lake Hydroelectric Project. This would provide a new revenue stream while supporting AEA’s mission to reduce the cost of energy in Alaska. The sale would follow an RFP process, as required by Alaska statute. STATUTORY AUTHORITY Under AS 44.83.080, AEA has the power to create and sell RECs. The statute grants AEA broad authority to manage alternative energy projects, enter into contracts for the sale of power, and promote energy efficiency. These powers should be exercised consistent with AEA’s corporate purpose to promote, develop, and advance the general prosperity and economic welfare of Alaskans through financing and operation of power projects and facilities. Subsection (13) gives the Authority broad discretion to enter into contracts or agreements with respect to the exercise of any of its powers, which provides it with flexibility to create and sell RECs as part of its broader mission to promote renewable energy.1 RESOLUTION AUTHORIZING THE CREATION AND SALE OF RECs The draft resolution before the Board today would authorize the Executive Director to create and sell RECs from the Bradley Project. The draft resolution authorizes the Executive Director to enter into all contracts necessary to achieve the creation and sale of the RECs, including with a broker if that option is selected through the RFP process. 1 Subsection (7) gives the Authority the power to sell, exchange, donate, convey, or encumber in any manner real or personal property owned by it when, in the judgment of the authority, the action is in furtherance of its corporate purposes. Subsection (5) gives the Authority the power to improve, equip, operate, and maintain power projects and alternative energy facilities and equipment, which produce RECs as a byproduct. Subsection (11) gives the Authority the power to enter into contracts for the sale of power from a project. Subsection (17) grants the Authority the ability to promote energy conservation, energy efficiency, and alternative energy through public education and training. AEA Resolution No. 2024-17 Page 1 of 2 ALASKA ENERGY AUTHORITY RESOLUTION NO. 2024-17 RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE CREATION AND SALE OF RENEWABLE ENERGY CERTIFICATES FOR THE BRADLEY LAKE HYDROELECTRIC PROJECT WHEREAS, the Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, the State's energy office and lead agency for statewide energy policy and program development, and has the mission to “reduce the cost of energy in Alaska”; and WHEREAS, Alaska Statute 44.83.080 authorizes the Alaska Energy Authority to manage alternative energy projects, promote energy efficiency, sell its real and personal property, and enter into contracts with respect to the exercise of its powers; and WHEREAS, one renewable energy certificate (REC) represents the environmental and renewable attributes of one megawatt-hour generated from renewable sources and delivered to the grid, and RECs are an asset that is distinct and separate from the associated power that is generated; and WHEREAS, the market for RECs has developed into a well-established and growing exchange between power producers and entities that seek to meet regulatory renewable energy mandates and voluntary sustainability goals; and WHEREAS, AEA owns the Bradley Lake Hydroelectric Project on behalf of the State of Alaska, and the Bradley Project generates approximately 400,000 MWh per year; and WHEREAS, AEA has the opportunity to create and sell roughly 400,000 RECs per year including a more limited opportunity to sell RECs for power generated from 2019 through 2023; and WHEREAS, third-party wholesalers and brokers have expressed interest in purchasing Bradley Project RECs. NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows: AEA Resolution No. 2024-17 Page 2 of 2 Section 1. The Executive Director hereby is authorized to create and sell, or engage services to create and sell on behalf of the Authority, renewable energy certificates associated with the power generated by the Bradley Lake Hydroelectric Project on an annual basis; said authority includes all actions necessary to give effect to the intent stated herein. DATED at Anchorage, Alaska, this ___ day of October 2024. ALASKA ENERGY AUTHORITY __________________________ Chair __________________________ Curtis W. Thayer, Secretary Corporate seal 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM TO: Board of Directors THROUGH: Curtis Thayer, Executive Director FROM: Conner Erickson, Director of Planning DATE: October 11, 2024 SUBJECT: Renewable Energy Fund (REF) Report At the September 10, 2024 Board Meeting, a Board member asked which Alaska communities have seen a net gain in energy available to them from REF Projects. The following report is for all REF projects and current project status. The projects highlighted in blue denote projects, which are currently in development, and the nameplate capacity (megawatts), energy production (megawatt-hours), and energy displacement (diesel fuel, fuel oil, natural gas, etc…) for those projects are to be determined. The report also includes statistics on the following (by energy region) metrics, as provided in the summary tables on the final page of the report: • REF projects by status (operational, closed/complete, development) • REF additions to nameplate generation capacity, in megawatts (MW) • Annual estimated volume of energy displacement (diesel fuel, Fuel oil, and natural gas) from operational REF projects Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) Aleutians Aleutians Rd2 403038 2195450 Various TDX Adak Generating, LLC Adak Diesel Hybrid - Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Adak 37 S $ 76,369 Aleutians Rd2 407062 2195473 Hydroelectric City of Akutan Town Crk Hydro-Design for Repairs/Upgrades -Closed - - Final Design and Permitting Closed Akutan 37 S $ 162,000 Aleutians Rd2 407061 2195472 Hydroelectric City of Akutan Loud Creek Hydro-Closed - - Feasibility and Conceptual Design Closed Akutan 37 S $ 206,296 Aleutians Rd3 407072 7030003 Hydroelectric City of Akutan Akutan Hydroelectric System Repair/Upgrade-Closed 10,431 0.11 Construction Operational Akutan 37 S $ 1,391,000 Aleutians Rd2; Rd3; Rd4; 406010 2195475; 7030023; 7040050 Geothermal City of Akutan Akutan Geothermal Development Prj - Closed - - Final Design and Permitting Closed Akutan 37 S $ 5,463,792 Aleutians Rd3 403039 7030001 Hydroelectric City of Atka Atka Hydro Dispatched Excess Elect. Power-CLOSED 14,196 - Final Design and Permitting Operational Atka 37 S $ 56,702 Aleutians Rd1 407033 2195376 Hydroelectric City of Atka Chuniisax Cr Hydroelectric Construction - Closed 397,377 0.28 Construction Operational Atka 37 S $ 996,000 Aleutians Rd6 403069 7060967 Heat Recovery G&K Electric Utility Cold Bay Waste Heat Recovery Project - Closed - - Feasibility and Conceptual Design Closed Cold Bay 37 S $ 17,525 Aleutians Rd4 410061 7040004 Wind G & K Electric Utility Cold Bay Electric Utility Wind Energy R4-Closed - - Feasibility and Conceptual Design Closed Cold Bay 37 S $ 57,592 Aleutians Rd4 410079 7040051 Wind City of False Pass Electric Utility False Pass Wind Energy Project R4- CLOSED - - Feasibility and Conceptual Design Closed False Pass 37 S $ 68,654 Aleutians Rd5; Rd6 407090 7050887; 7060929 Hydroelectric City of King Cove Waterfall Creek Hydroelectric Project - Closed 59,981 0.38 Final Design and Permitting; Construction Operational King Cove 37 S $ 2,800,000 Aleutians Rd4 410070 7040006 Wind Nelson Lagoon Electric Cooperative Nelson Lagoon Wind Energy Project R4- Closed - - Feasibility and Conceptual Design Closed Nelson Lagoon 37 S $ 75,756 Aleutians Rd1 410028 2195375 Wind Nikolski IRA Council Nikolski Wind Integration Construction - Closed - 0.07 Construction Closed Nikolski 37 S $ 409,430 Aleutians Rd1 410029 2195398 Wind City of St. George St. George Wind Farm Construction- Closed 4,749 0.10 Construction Operational Saint George 37 S $ 1,485,167 Aleutians Rd3 403040 7030004 Heat Recovery City of Saint Paul Electric Utility Saint Paul Fuel Economy Upgrade R3- CLOSED 2,120 - Construction Operational Saint Paul 37 S $ 98,149 Aleutians Rd3 409023 7030002 Wind TDX Corporation St. Paul Wind Diesel Project R3 - Closed 22,493 0.45 Construction Operational Saint Paul 37 S $ 1,790,301 Aleutians Rd1 407051 2195408 Various Aleutians East Borough Aleutians East Borough Feasibility Study - Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Sand Point 37 S $ 25,000 Aleutians Rd8 410100 7081163 Wind TDX Power, Inc. Sand Point Excess Wind Utilization - Closed 21,500 - Final Design and Permitting; Construction Operational Sand Point 37 S $ 307,120 Aleutians Rd2 410050 2195446 Wind Aleutian Wind Energy Sand Point Wind-Closed 34,984 1.00 Construction Operational Sand Point 37 S $ 639,495 Aleutians Rd2 403032 2195449 Heat Recovery City of Unalaska Unalaska Heat Recovery Construction- CLOSED 19,096 - Construction Operational Unalaska 37 S $ 1,300,000 Aleutians Rd13 407116 7013007 Wind City of Unalaska City of Unalaska Wind Power Feasibility - - Feasibility and Conceptual Design Development Unalaska 37 S $ 139,000 Aleutians Rd14 407123 7014035 Hydroelectric City of False Pass UNGA Man Creek Hydro Project - - Final Design and Permitting Development False Pass 37 S $ 321,000 Aleutians Rd15 407127 7015007 Hydroelectric TDX Adak Generating, LLC Hydro - Feasibility and Conceptual Design - TDX Adak - - Feasibility and Conceptual Design Development Adak 37 S $ 497,650 Aleutians Total 586,926 2.31 $ 18,383,998 Bering Straits Bering Straits Rd7 403070 7071040 Heat Recovery City of Brevig Mission Brevig Mission Water System Heat Recovery-Closed 14,726 - Construction Closed Brevig Mission 39 T $ 113,076 Bering Straits Rd4 410077 7040053 Wind Alaska Village Electric Cooperative Elim Wind Feasibility R4-Closed - - Feasibility and Conceptual Design Closed Elim 39 T $ 73,234 Bering Straits Rd5 410080 7050876 Heat Recovery Alaska Village Electric Cooperative Gambell Wind Energy Recovery RD5- CLOSED 14,995 0.30 Construction Operational Gambell 39 T $ 239,950 Bering Straits Rd4 410075 7040052 Wind Alaska Village Electric Cooperative Koyuk Wind Feasibility R4-Closed - - Feasibility and Conceptual Design Closed Koyuk 39 T $ 16,142 Bering Straits Rd9 407107 7091238 Heat Recovery City of Koyuk Koyuk Water System Heat Recovery R9 11,971 - Final Design and Permitting Closed Koyuk 39 T $ 90,922 Bering Straits Rd1 409017 2195444 Transmission Nome Joint Utility Systems Nome Banner Peak Wind Farm Trans Const-Closed 58,377 3.70 Construction Operational Nome 39 T $ 801,000 Bering Straits Rd3; Rd4 406013 7030037; 7040007 Geothermal UAF-Alaska Center for Energy and Power Pilgrim Hot Springs Geothermal Assess R3,R4-Closed - - Feasibility and Conceptual Design Closed Nome 39 T $ 1,943,411 Bering Straits Rd1 410030 2195438 Wind Nome Joint Utilities Nome/Newton Peak Wind Farm Construction-Clsd 119,770 3.70 Construction Operational Nome 39 T $ 8,069,000 Bering Straits Rd6 403062 7060934 Heat Recovery City of Savoonga Savoonga Heat Recovery System R6 CLOSED 37,920 - Construction Operational Savoonga 39 T $ 425,234 Bering Straits Rd5 410081 7050871 Heat Recovery Alaska Village Electric Cooperative, Inc. Shaktoolik Surplus Wind Energy Recovery RD5-CLOSED 10,100 - Final Design and Permitting; Construction Operational Shaktoolik 39 T $ 239,230 *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Bering Straits Rd2 410053 2195463 Wind Alaska Village Electric Cooperative Shaktoolik Wind-Closed 24,000 0.20 Construction Operational Shaktoolik 39 T $ 2,465,633 Bering Straits Rd9 407108 7091223 Wind Alaska Village Electric Cooperative Shishmaref Wind Feasibility&Conceptual Design R9 - - Feasibility and Conceptual Design Closed Shishmaref 39 T $ 152,000 Bering Straits Rd5 403055 7050856 Heat Recovery City of Shishmaref Shishmaref Heat Recovery Project R5 7,900 - Construction Operational Shishmaref 39 T $ 310,841 Bering Straits Rd4; Rd7 410066 7040008; 7071068 Wind Alaska Village Electric Cooperative Stebbins/St Michael Wind Feas.FD&Permitting-CLOSED 104,700 0.90 Feasibility and Conceptual Design; Final Design and Permitting Operational Stebbins 39 T $ 479,750 Bering Straits Rd6 403065 7060939 Heat Recovery Alaska Village Electric Cooperative, Inc. Stebbins Heat Recovery Project R6- Closed 57,000 - Construction Operational Stebbins 39 T $ 1,319,088 Bering Straits Rd2 410054 2195464 Wind Alaska Village Electric Cooperative Teller Wind Analysis-Closed - - Feasibility and Conceptual Design Closed Teller 39 T $ 98,165 Bering Straits Rd1 410031 2195401 Wind Unalakleet Valley Electric Co Unalakleet Wind Farm Construction - Closed 25,716 0.60 Construction Operational Unalakleet 39 T $ 4,000,000 Bering Straits Rd9 407105 7091234 Heat Recovery City of Wales Wales Water System Heat Recovery R9 9,726 - Final Design and Permitting Closed Wales 39 T $ 650,047 Bering Straits Rd14 410113 7014026 Storage Nome Joint Utility System Nome Battery Energy Storage System - 2.00 Construction Development Nome 39 T $ 2,000,000 Bering Straits Total 460,478 9.4 $ 23,486,724 Bristol Bay Bristol Bay Rd1 407034 2195388 Hydroelectric City of Chignik Indian Creek Hydro Feasibility Study - - Final Design and Permitting Closed Chignik 37 S $ 198,513 Bristol Bay Rd1 407036 2195389 Hydroelectric Chignik Lagoon Power Utility Chignik Lagoon Hydroelectric Final Design - Closed Ref. Project #407091 - Final Design and Permitting Closed Chignik Lagoon 37 S $ 150,000 Bristol Bay Rd5; Rd7 407091 7050836; 7071036 Hydroelectric Chignik Lagoon Village Council Packer's Creek Hydroelectric Project - Closed 45,000 0.17 Construction Operational Chignik Lagoon 37 S $ 4,346,196 Bristol Bay Rd1 410033 2195409 Wind Lake and Peninsula Borough Chignik Lake Area Wind-Hydro Final Design-Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Chignik Lake 37 S $ 74,851 Bristol Bay Rd6 410088 7060912 Wind Lake and Peninsula Borough Egegik Wind Feasibility Study R6- Closed - - Feasibility and Conceptual Design Closed Egegik 37 S $ 60,000 Bristol Bay Rd7 410098 7071072 Wind Iguigig Village Council Igiugig Wind Resource Feasibility & CDR-CLOSED - - Feasibility and Conceptual Design Closed Igiugig 37 S $ 80,000 Bristol Bay Rd2 408002 2195466 Hydroelectric Igiugig Village Council Kvichak River - Ocean & River Energy- Closed 18,200 0.07 Construction Operational Igiugig 37 S $ 704,905 Bristol Bay Rd6 410089 7060966 Wind Kokhanok Electric Utilities Kokhanok - High-penetration Wind Energy R6 18,000 0.18 Construction Operational Kokhanok 37 S $ 185,000 Bristol Bay Rd4 410072 7040011 Heat Recovery New Koliganek Village Council New Koliganek Wind & Heat Recovery Feasb-Closed - - Feasibility and Conceptual Design Closed Koliganek 37 S $ 77,853 Bristol Bay Rd1 410032 2195374 Wind Lake and Peninsula Borough Lake Pen Borough Wind Feasibility Study-Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Lake & Peninsula Borough 37 S $ 184,000 Bristol Bay Rd1; Rd4 402026 2195406; 7040010 Biomass Lake and Peninsula Borough Lake & Peninsula Borough Wood Boilers R1,R4-CLOSED 10,045 - Final Design and Permitting; Construction Operational Kokhanok 37 S $ 280,421 Bristol Bay Rd1 407035 2195419 Hydroelectric Nushagak Electric and Telephone Cooperative Nushagak Area Hydropower Project R3- Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Lake & Peninsula Borough 37 S $ 1,873,223 Bristol Bay Rd6 410087 7060911 Wind Lake and Peninsula Borough Levelock Wind Reconnaissance Study R6-Closed - - Feasibility and Conceptual Design Closed Levelock 37 S $ 10,000 Bristol Bay Rd3 409025 7030006 Wind Alaska Village Electric Cooperative New Stuyahok Wind-Feasibility Analysis R3-Closed - - Feasibility and Conceptual Design Closed New Stuyahok 37 S $ 142,500 Bristol Bay Rd6 403068 7060944 Heat Recovery Southwest Region School District New Stuyahok Heat Recovery R6 - Closed 43,240 - Construction Operational New Stuyahok 37 S $ 484,897 Bristol Bay Rd6 407103 7060976 Hydroelectric Pedro Bay Village Council Pedro Bay/Knutson Creek Hydroelectric Project R6 - 0.15 Final Design and Permitting Closed Pedro Bay 37 S $ 290,000 Bristol Bay Rd3 409026 7030007 Wind City of Pilot Point Pilot Point Wind Power & Heat R3 - Closed 9,997 0.20 Construction Operational Pilot Point 37 S $ 1,421,240 Bristol Bay Rd6 407098 7060908 Hydroelectric Iliamna, Newhalen, Nondalton Electrical Coop. Tazimina Hydroelectric Project Capacity Inc-Closed 39,988 0.80 Final Design and Permitting Operational Port Alsworth 37 S $ 160,000 Bristol Bay Rd5 403056 7050858 Heat Recovery City of Togiak Togiak Waste Heat Recovery Project 39,507 - Construction Operational Togiak 37 S $ 443,030 Bristol Bay Rd13 407111 7013001 Hydroelectric Nushagak Electric & Telephone Cooperative Nuyakuk River Hydro Conceptual Design - - Feasibility and Conceptual Design Closed Dillingham 37 S $ 1,000,000 Bristol Bay Rd13 407114 7013005 Wind Naknek Electric Association, Inc. Naknek Service Area Wind & Solar Power Feasibility & Conceptual Design - - Feasibility and Conceptual Design Development Naknek 37 S $ 103,500 Bristol Bay Rd14 407122 7014001 Hydroelectric Nushagak Electric & Telephone Cooperative Nuyakuk River Hydroelectric Project - - Feasibility and Conceptual Design Closed Dillingham 37 S $ 1,000,000 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Bristol Bay Rd14 410114 7014025 Storage City of Pilot Point Pilot Point Comprehensive Community Wind/Solar/Storage & Heat Project - - Construction Development Pilot Point 37 S $ 423,500 Bristol Bay Rd15 405004 7015022 Storage Naknek Electric Association, Inc. Naknek Electric Battery Energy Storage System - - Final Design and Permitting; Construction Development Naknek 37 S $ 2,172,984 Bristol Bay Rd16 411018 7016013 Solar Igiugig Village Council Igiugig Tribal Utility Solar PV - - Final Design and Permitting; Construction Development Igiugig 37 S $ 1,723,709 Bristol Bay Total 223,977 1.42 $ 17,590,323 Copper River/Chugach Copper River/Chugach Rd3 407071 7030010 Hydroelectric Chenega IRA Council Chenega Bay Hydro Design and Permitting - Closed - - Feasibility and Conceptual Design; Final Design and Permitting Closed Chenega Bay 5 C $ 242,231 Copper River/Chugach Rd7 410096 7071027 Wind Alaska Power Company Chisana Mountain Wind Feasibility - Closed - - Feasibility and Conceptual Design Closed Chisana 36 R $ 67,364 Copper River/Chugach Rd1 402028 2195380 Biomass Cheesh'na Tribal Council Chistochina Central Wood Heating Construction-Clsd 13,600 - Construction Operational Chistochina 36 R $ 500,000 Copper River/Chugach Rd2; 4 407058 2195456; 7040012; 7091226 Hydroelectric Chitina Electric, Inc. Fivemile Creek Hydroelectric Project R2,R4 - - Feasibility and Conceptual Design; Final Design and Permitting; Construction Development Chitina 36 R $ 4,095,661 Copper River/Chugach Rd1 403028 7050848 Heat Recovery Cordova Electric Cooperative Cordova Heat Recovery Construction - CLOSED 58,666 - Construction Operational Cordova 5 C $ 1,780,000 Copper River/Chugach Rd1 407037 2195386 Hydroelectric Cordova Electric Cooperative Humpback Creek Hydroelectric Construction-Closed 233,333 1.25 Construction Operational Cordova 5 C $ 4,000,000 Copper River/Chugach Rd3 407066 7030009 Hydroelectric Cordova Electric Cooperative Humpback Creek Hydro Rehabilitation R3 - Closed Ref. Project #407037 - Construction Operational Cordova 5 C $ 4,000,000 Copper River/Chugach Rd4 402115 7040054 Biomass Native Village of Eyak Eyak Biomass Feasibility Study R4- Closed - - Feasibility and Conceptual Design Closed Eyak 5 C $ 63,999 Copper River/Chugach Rd1 402027 2195399 Biomass Native Village of Eyak Cordova Wood Processing Plant Construction-Closed 11,333 - Construction Operational Eyak 5 C $ 136,760 Copper River/Chugach Rd1 402030 2195381 Biomass Gulkana Village Council Gulkana Central Wood Heating Construction Closed 10,679 - Construction Operational Gulkana 36 R $ 500,000 Copper River/Chugach Rd1; Rd4 402019 2195302; 7040055 Biomass Copper River School District KennyLakeSchool Wood Fired BoilerR0,R1,R4-CLOSED 20,000 - Final Design and Permitting; Construction Operational Kenny Lake 36 R $ 648,381 Copper River/Chugach Rd6 402127 7060982 Biomass Mentasta Traditional Council Mentasta Comm. Fac Woody Biomass Space Heat-CLOSED 16,000 - Construction Operational Mentasta Lake 36 R $ 460,000 Copper River/Chugach Rd2 410052 2195461 Wind Tatitlek Village IRA Council Tatitlek High Penetration Wind Diesel- Closed - - Feasibility and Conceptual Design Closed Tatitlek 5 C $ 51,974 Copper River/Chugach Rd5 403057 7050823 Heat Recovery Tatitlek Village IRA Council Tatitlek Heat Recovery Project R5- CLOSED 23,493 - Construction Operational Tatitlek 5 C $ 263,445 Copper River/Chugach Rd8 402138 7081110 Biomass Native Village of Tazlina Wood Boiler for the Native Vllg of Tazlina-CLOSED 8,078 - Construction Operational Tazlina 36 R $ 270,807 Copper River/Chugach Rd1; Rd6; Rd7 407038 2195390; 7060930; 7071015 Hydroelectric Copper Valley Electric Association Allison Lake Hydro Prj Feas. & Construction-Closed 324,899 6.50 Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Valdez 29 O $ 10,288,009 Copper River/Chugach Rd13 407119 7013013 Hydroelectric Cordova Electric Cooperative, Inc. Cordova Hydro Storage Assessment Project - - Feasibility and Conceptual Design Closed Cordova 5 C $ 294,642 Copper River/Chugach Rd15 402147 7015001 Biomass Native Village of Kluti- Kaah Native Village of Kluti-Kaah Wood Chip Heating Project - - Construction Development Native Village of Kluti- Kaah 36 R $ 500,000 Copper River/Chugach Total 720,081 7.75 $ 28,163,273 Kodiak Kodiak Rd2; Rd4 407059 2195460; 7040013 Hydroelectric Kodiak Electric Association Terror Lake Hydroelectric Project- Closed 2,977,777 11.25 Construction Operational Kodiak Island Borough 5 C $ 3,976,259 Kodiak Rd3 407068 7030011 Hydroelectric Kodiak Electric Association Terror Lake Unit 3 Hydro Project R3 - Closed Ref. Project #407059 - Feasibility and Conceptual Design; Final Design and Permitting Closed Kodiak Island Borough 5 C $ 248,160 Kodiak Rd0 410020 2195365 Wind Kodiak Electric Association, Inc.Pillar Mt. Wind Ph II Assessment-Closed Ref. Project #410082 - Feasibility and Conceptual Design Closed Kodiak Island Borough 5 C $ - Kodiak Rd1 410025 2195371 Wind Kodiak Electric Association Pillar Mtn. Wind PH III Kodiak - Closed Ref. Project #410082 - Construction Closed Kodiak Island Borough 5 C $ 4,000,000 Kodiak Rd5 410082 7050803 Wind Kodiak Electric Association, Inc. Pillar Mountain High Penetration Wind RD5 - Closed 1,773,333 9.00 Final Design and Permitting; Construction Operational Kodiak Island Borough 5 C $ 7,800,000 Kodiak Rd0 407005 -Hydroelectric Alaska Village Electric Cooperative Old Harbor Hydro - Closed Ref. Project #407039 - Feasibility and Conceptual Design Closed Old Harbor 5 C $ - Kodiak Rd1; Rd4 407039 2195431; 7040014 Hydroelectric Alaska Village Electric Cooperative Old Harbor Hydroelectric R1,R4- CLOSED - - Feasibility and Conceptual Design; Final Design and Permitting Closed Old Harbor 5 C $ 462,500 Kodiak Rd14 410110 7014005 Wind City of Ouzinkie Ouzinkie Wind Energy Feasibility and Conceptual Design Project - - Feasibility and Conceptual Design Development Ouzinkie 5 C $ 172,600 Kodiak Total 4,751,110 20.25 $ 16,659,519 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Lower Yukon- Kuskokwim Lower Yukon-Kuskokwim Rd4 410078 7040057 Wind Akiachak Native Community/Akiachak ltd Akiachak Wind Feasibility&Conceptual Design-Closed - - Feasibility and Conceptual Design Closed Akiachak 38 S $ 110,000 Lower Yukon-Kuskokwim Rd4 410065 7040002 Wind Atmautluak Traditional Council Atmautluak Wind Renewable Energy R4- Closed 17,112 0.20 Feasibility and Conceptual Design Operational Atmautluak 38 S $ 100,000 Lower Yukon-Kuskokwim Rd6 403063 7060935 Heat Recovery Atmautluak Traditional Council Atmautluak Washeteria Heat Recovery - Closed 4,395 - Construction Operational Atmautluak 38 S $ 350,000 Lower Yukon-Kuskokwim Rd4 410086 7040015 Wind TDX Power, Inc. Bethel Renewable Energy Project - Closed 113,754 0.90 Feasibility and Conceptual Design Operational Bethel 38 S $ 197,170 Lower Yukon-Kuskokwim Rd8 402134 7081118 Heat Recovery Alaska Village Electric Cooperative Bethel Heat Recovery Assess&Concept Design-CLOSED - - Feasibility and Conceptual Design Closed Bethel 38 S $ 645,613 Lower Yukon-Kuskokwim Rd1 410034 2195432 Wind City of Bethel Bethel Renewable Energy Project R1- Closed Ref. Project #410086 - Feasibility and Conceptual Design; Final Design and Permitting Closed Bethel 38 S $ 2,598,320 Lower Yukon-Kuskokwim Rd4 410076 7040056 Wind City of Chefornak Chefornak Wind Feasibility R4-CLOSED 15,845 0.30 Feasibility and Conceptual Design; Final Design and Permitting Operational Chefornak 38 S $ 130,522 Lower Yukon-Kuskokwim Rd5 410084 7050875 Wind Alaska Village Electric Cooperative Chevak Wind Energy Recovery RD5- CLOSED - - Final Design and Permitting; Construction Closed Chevak 38 S $ 240,260 Lower Yukon-Kuskokwim Rd7 403071 7071041 Heat Recovery City of Chevak Chevak Water & Vacuum Plant Heat Recovery 12,500 - Final Design and Permitting; Construction Operational Chevak 38 S $ 558,800 Lower Yukon-Kuskokwim Rd4 410067 7040019 Wind Alaska Village Electric Cooperative Eek Wind Feasibility R4-Closed - - Feasibility and Conceptual Design Closed Eek 38 S $ 114,718 Lower Yukon-Kuskokwim Rd7 403072 7071061 Heat Recovery City of Emmonak Emmonak Heat Recovery System- Closed 18,879 - Final Design and Permitting; Construction Operational Emmonak 39 T $ 684,312 Lower Yukon-Kuskokwim Rd2 410055 2195468 Wind Alaska Village Electric Cooperative Emmonak/Alakanuk Wind & Transmission - Closed 35,000 0.40 Final Design and Permitting; Construction Operational Emmonak 39 T $ 8,000,000 Lower Yukon-Kuskokwim Rd1 410040 2195439 Wind City of Hooper Bay Hooper Bay Wind Farm Feasibility - Closed 22,301 0.30 Feasibility and Conceptual Design Operational Hooper Bay 39 T $ 60,179 Lower Yukon-Kuskokwim Rd7 410099 7071073 Wind Puvurnaq Power Company Kongiginak Wind Heat Elect. Thermal Storage-Closed 25,319 - Construction Operational Kongiganak 38 S $ 274,735 Lower Yukon-Kuskokwim Rd1 410035 2195411 Wind Puvurnaq Power Company Kongiganak Wind Farm Construction - Closed 45,149 0.475 Construction Operational Kongiganak 38 S $ 1,699,792 Lower Yukon-Kuskokwim Rd4 410068 7040020 Wind Organized Village of Kwethluk Kwethluk Wind Feasibility R4-Closed 48,000 0.40 Feasibility and Conceptual Design Operational Kwethluk 38 S $ 44,098 Lower Yukon-Kuskokwim Rd1 410036 2195410 Wind Kwigillingok Power Company Kwigillingok Wind Farm Construction- Closed 16,342 0.475 Construction Operational Kwigillingok 38 S $ 1,600,000 Lower Yukon-Kuskokwim Rd4 410069 7040021 Wind Alaska Village Electric Cooperative Marshall Wind Feasibility-Closed - - Feasibility and Conceptual Design Closed Marshall 39 T $ 111,150 Lower Yukon-Kuskokwim Rd6 403066 7060940 Heat Recovery City of Marshall Marshall Heat Recovery-Water Treatment Plant-Clsd 7,700 - Final Design and Permitting; Construction Operational Marshall 39 T $ 177,702 Lower Yukon-Kuskokwim Rd5 410083 7050870 Wind Alaska Village Electric Cooperative Mekoryuk Surplus Wind Energy Recovery RD5-CLOSED 8,000 - Final Design and Permitting; Construction Operational Mekoryuk 38 S $ 264,459 Lower Yukon-Kuskokwim Rd1 410038 2195384 Wind Alaska Village Electric Cooperative Mekoryuk Wind Farm Construction- Closed 12,000 0.20 Final Design and Permitting; Construction Operational Mekoryuk 38 S $ 3,155,765 Lower Yukon-Kuskokwim Rd7 410097 7071067 Wind Alaska Village Electric Cooperative, Inc. Mountain Village Wind Feasibility & CDR-Closed - - Feasibility and Conceptual Design Closed Mountain Village 39 T $ 95,893 Lower Yukon-Kuskokwim Rd4 410063 7040016 Wind City of Napaskiak Napaskiak Wind, Power and Heat Recovery R4-Closed - - Reconnaissance Closed Napaskiak 38 S $ 61,224 Lower Yukon-Kuskokwim Rd7 403074 7071052 Heat Recovery City of Nunam Iqua Nunam Iqua Heat Recovery CLOSED 18,000 - Final Design and Permitting; Construction Operational Nunam Iqua 39 T $ 450,000 Lower Yukon-Kuskokwim Rd6 403064 7060937 Heat Recovery Native Village of Kwinhagak Kwinhagak Heat Recovery - Water Treatment - Closed 14,200 Final Design and Permitting; Construction Operational Quinhagak 38 S $ 668,350 Lower Yukon-Kuskokwim Rd1 410037 2195383 Wind Alaska Village Electric Cooperative Quinhagak Wind Farm Construction- Closed 47,794 0.30 Construction Operational Quinhagak 38 S $ 3,437,322 Lower Yukon-Kuskokwim Rd5 403059 7050844 Heat Recovery City of Russian Mission Russian Mission Heat Recovery System R5 - Closed 12,000 - Final Design and Permitting; Construction Operational Russian Mission 39 T $ 552,157 Lower Yukon-Kuskokwim Rd7 403073 7071043 Heat Recovery City of St. Mary's St. Mary's Heat Recovery System- Closed 15,726 - Final Design and Permitting; Construction Operational Saint Mary's 39 T $ 735,200 Lower Yukon-Kuskokwim Rd9 407110 7091224 Wind Alaska Village Electric Cooperative Mountain Village-St. Mary's Wind IntertieR9-CLOSED - - Construction Operational Saint Mary's 39 T $ 2,042,431 Lower Yukon-Kuskokwim Rd4 410064 7040017 Wind Alaska Village Electric Cooperative St. Mary's/ Pitka's Point Wind - Closed 44,986 0.90 Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Saint Mary's 39 T $ 4,624,094 Lower Yukon-Kuskokwim Rd8 402137 7081143 Heat Recovery City of Scammon Bay Scammon Bay Community Facilities Heat Recovery-Cls 7,545 - Final Design and Permitting Closed Scammon Bay 39 T $ 34,660 Lower Yukon-Kuskokwim Rd5 407092 7050847 Hydroelectric City of Scammon Bay Scammon Bay Hydro Design & Engineering R5-Closed 82,549 0.33 Feasibility and Conceptual Design Closed Scammon Bay 39 T $ 79,637 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Lower Yukon-Kuskokwim Rd4 410071 7040022 Wind Alaska Village Electric Cooperative Scammon Bay Wind Feasibility R4- Closed - - Feasibility and Conceptual Design Closed Scammon Bay 39 T $ 142,500 Lower Yukon-Kuskokwim Rd5 403058 7050848 Heat Recovery Sleetmute Traditional Council Sleetmute Heat Rec PowerPlant to WaterPlant CLOSED 1,779 - Final Design and Permitting; Construction Operational Sleetmute 37 S $ 126,682 Lower Yukon-Kuskokwim Rd1 410039 2195385 Wind Alaska Village Electric Cooperative Toksook Bay Wind Farm Expansion Construct.-Closed 9,000 0.10 Final Design and Permitting; Construction Operational Toksook Bay 38 S $ 1,037,750 Lower Yukon-Kuskokwim Rd7 403075 7071085 Heat Recovery Native Village of Tuntutuliak Tuntutuliak Heat Recovery-Closed - - Final Design and Permitting; Construction Closed Tuntutuliak 38 S $ 71,639 Lower Yukon-Kuskokwim Rd2 410051 2195457 Wind Tuntutuliak Comm Svcs Assoc Tuntutuliak High Penetration Wind Diesel-Closed 10,440 0.475 Final Design and Permitting; Construction Operational Tuntutuliak 38 S $ 1,760,000 Lower Yukon-Kuskokwim Rd13 407112 7013002 Wind Alaska Village Electric Cooperative, Inc. Goodnews Bay Wind Energy Feasibility and CDR - - Feasibility and Conceptual Design Development Goodnews Bay 37 S $ 128,250 Lower Yukon-Kuskokwim Rd13 407113 7013003 Wind Alaska Village Electric Cooperative, Inc.Kotlik Wind Energy Feasibility and CDR - - Feasibility and Conceptual Design Development Kotlik 39 T $ 237,500 Lower Yukon-Kuskokwim Rd13 407120 7013014 Wind Puvurnaq Power Company Improved Airfoil for Wind Turbines in Kongiganak - - Construction Development Kongiganak 38 S $ 108,000 Lower Yukon-Kuskokwim Rd14 410101 7014021 Wind Akiachak Native Community Electric Company Akiachak Wind Feasibility - - Feasibility and Conceptual Design Development Akiachak 38 S $ 371,000 Lower Yukon-Kuskokwim Rd14 410103 7014020 Wind Puvurnaq Power Company Kongiganak Wind Upgrade with Airfoil Blades for Turbines - - Construction Development Kongiganak 38 S $ 278,716 Lower Yukon-Kuskokwim Rd14 410106 7014016 Wind Kwig Power Company Kwigillingok Wind Turbine Upgrade - - Construction Development Kwigillingok 38 S $ 278,716 Lower Yukon-Kuskokwim Rd14 410111 7014004 Wind Alaska Village Electric Cooperative, Inc. Pilot Station Wind Energy Feasibility Study & Conceptual Design Project - - Feasibility and Conceptual Design Development Pilot Station 39 T $ 229,500 Lower Yukon-Kuskokwim Rd14 410115 7014017 Wind Native Village of Kwinhagak Kwinhagak Reconnaissance Study - - Development Quinhagak 38 S $ 81,000 Lower Yukon-Kuskokwim Rd15 405002 7015011 Storage Naterkaq Light Plant Chefornak Battery Installation, Integration and Commissioning - - Construction Development Chefornak 38 S $ 437,000 Lower Yukon-Kuskokwim Rd15 405003 7015013 Storage Kipnuk Light Plant Kipnuk Battery Installation, Integration and Commissioning - - Construction Development Kipnuk 38 S $ 434,000 Lower Yukon-Kuskokwim Rd15 410118 7015016 Wind Alaska Village Electric Cooperative, Inc Kalskag Wind Feasibility and Conceptual Design - - Feasibility and Conceptual Design Development Kalskag 37 S $ 267,300 Lower Yukon- Kuskokwim Total 576,222 5.43 $ 39,888,116 Non Specified Non Specified Rd4 403054 7040046 Heat Recovery University of Fairbanks Organic Rankine Cycle Field Testing R4 - - Feasibility and Conceptual Design Closed Statewide Projects & Studies Various Various $ 472,787 Non Specified Rd1 407054 2195442 Hydroelectric University of Alaska- Anch Statewide Hydrokinetic Feasibility Study - Closed - - Feasibility and Conceptual Design Closed Statewide Projects & Studies Various Various $ 563,101 Non Specified Total - - $ 1,035,888 North Slope North Slope Rd2; Rd4 409021 2195448; 7040023 Transmission North Slope Borough Atqasuk Transmission Line-CLOSED - - Feasibility and Conceptual Design; Final Design and Permitting Closed Utqiagvik 40 T $ 367,305 North Slope Rd4 410073 7040025 Wind North Slope Borough Kaktovik Wind Diesel R4 - Closed - - Feasibility and Conceptual Design Closed Kaktovik T $ 131,859 North Slope Rd3; Rd4 409027 7030012; 7040026 Wind North Slope Borough Point Hope Wind Turbine Design - Closed - - Feasibility and Conceptual Design Closed Point Hope 40 T $ 124,048 North Slope Rd3 409029 7030014 Wind North Slope Borough Point Lay Wind Diesel Generation Project R3-Closed - - Feasibility and Conceptual Design Closed Point Lay 40 T $ 114,845 North Slope Rd2; Rd4 403036 2195467; 7040027 Wind North Slope Borough Point Lay Heat Recovery Construction 100,000 - Construction Operational Point Lay 40 T $ 390,547 North Slope Rd3 409028 7030013 Wind North Slope Borough Wainwright Wind Diesel Generation Prj. R3-Closed - - Feasibility and Conceptual Design Closed Wainwright 40 T $ 123,255 North Slope Total 100,000 - $ 1,251,859 Northwest Arctic Northwest Arctic Rd1 411002 2195412 Solar Alaska Village Electric Cooperative Ambler Solar PV Feasibility - Closed - - Feasibility and Conceptual Design Closed Ambler 40 T $ 20,122 Northwest Arctic Rd2 403033 2195453 Heat Recovery City of Ambler Ambler Heat Recovery Construction - CLOSED 8,864 - Final Design and Permitting; Construction Operational Ambler 40 T $ 434,928 Northwest Arctic Rd3 409024 7030016 Wind Alaska Village Electric Cooperative Kivalina Wind-Intertie Feas Analys&CDes R3-Closed - - Feasibility and Conceptual Design Closed Kivalina 40 T $ 177,005 Northwest Arctic Rd4 402117 7040029 Biomass City of Kotzebue Kotzebue Paper & Wood Waste to Energy R4-CLOSED - - Feasibility and Conceptual Design Closed Kotzebue 40 T $ 66,578 Northwest Arctic Rd2 403034 2195454 Heat Recovery Kotzebue Electric Association Kotzebue Electric Heat Recovery Construction 183,300 - Final Design and Permitting; Construction Operational Kotzebue 40 T $ 915,627 Northwest Arctic Rd1; Rd3 409022 2195427; 7030015 Wind Kotzebue Electric Association High Penetration Wind-Battery-Diesel R3-Closed 346,370 1.80 Final Design and Permitting; Construction Operational Kotzebue 40 T $ 8,000,000 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Northwest Arctic Rd6 403067 7060941 Heat Recovery City of Noorvik Noorvik Heat Recovery - Water Treatment Plant-Clsd 18,600 - Final Design and Permitting; Construction Operational Noorvik 40 T $ 985,805 Northwest Arctic Rd1; Rd4; Rd5 402031 2195397; 7040028; 7050840 Biomass Northwest Inupiat Housing Authority Upper Kobuk River Biomass R4 - Closed 18,438 - Reconnaissance; Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Northwest Arctic Borough 40 T $ 771,667 Northwest Arctic Rd1 407040 2195413 Hydroelectric Alaska Village Electric Cooperative Cosmos Hills Hydroelectric Feasibility- Closed - - Feasibility and Conceptual Design; Final Design and Permitting Closed Northwest Arctic Borough 40 T $ 1,025,000 Northwest Arctic Rd1 410042 2195377 Wind Northwest Arctic Borough Buckland/Deering/Noorvik Wind Farm Const-Clsd 25,987 0.30 Reconnaissance; Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Northwest Arctic Borough 40 T $ 10,738,439 Northwest Arctic Rd4 410074 7040030 Wind Alaska Village Electric Cooperative Selawik Hybrid Wind Diesel Syst Turbine R4-Clsd - - Feasibility and Conceptual Design Closed Selawik 40 T $ 75,420 Northwest Arctic Rd13 407118 7013011 Heat Recovery City of Shungnak Shungnak Heat Recovery - - Final Design and Permitting; Construction Development Shungnak 40 T $ 1,303,607 Northwest Arctic Rd13 407121 7013018 Storage Kotzebue Electric Association Kotzebue Community-Scale Energy Storage System - - Final Design and Permitting Development Kotzebue 40 T $ 325,000 Northwest Arctic Rd14 411009 7014007 Solar Northwest Arctic Borough Design and Permitting for Solar PV and Battery Storage for Ambler, Kiana, Noorvik, and Selawik - - Final Design and Permitting Development Northwest Arctic Borough 40 T $ 590,000 Northwest Arctic Rd14 410104 7014018 Solar Kotzebue Electric Association Kotzebue Wind to PV Transition Utilizing Existing Wind Infrastructure - - Construction Development Kotzebue 40 T $ 1,900,000 Northwest Arctic Rd14 410105 7014015 Wind City of Kotzebue Kotzebue Wind to Heat System - - Feasibility and Conceptual Design; Final Design and Permitting; Construction Development Kotzebue 40 T $ 702,435 Northwest Arctic Rd15 411014 7015003 Solar Northwest Arctic Borough Selawik Solar PV Array - - Construction Development Selawik 40 T $ 1,134,500 Northwest Arctic Rd16 407121 7016022 Storage Kotzebue Electric Association Kotzebue Community Scale Energy Storage and Inertia - - Construction Development Kotzebue 40 T $ 3,675,000 Northwest Arctic Total 601,559 2.10 $ 32,841,133 Railbelt Railbelt Rd1 402025 2195358 Biomass Chena Power, LLC Biomass-fired Organic Rankine Cycle System-Closed 7,500 - Construction Operational North Pole Various Various $ 1,895,725 Railbelt Rd4 407075 7040003 Hydroelectric Alaska Energy Authority Battle Creek Diversion R4 -Also SEE PJ 270011 0.3 Bcf - Final Design and Permitting Operational Railbelt Region 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 500,000 Railbelt Rd1 403029 2195391 Heat Recovery Golden Valley Electric Association North Pole Heat Recovery Construction - Closed 34,000 - Construction Operational North Pole 33 Q $ 817,292 Railbelt Rd1 402032 2195430 Biomass Municipality of Anchorage Anch. Landfill Gas Elect Const.-Biofuels- CLOSED 0.38 Bcf 7.00 Final Design and Permitting; Construction Operational Municipality of Anchorage 9;10;11;12;13;1 4;15;16;17;18;1 9;20;21;22;23;2 4 E;F;G;H;I;J;K;L $ 2,000,000 Railbelt Rd4 407084 7040064 Hydroelectric Native Village of Cantwell Jack River Hydro Project R4 - Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Cantwell 30 O $ 30,000 Railbelt Rd1 411003 2195394 Solar Golden Valley Electric Association McKinley Village Solar Thermal Const - Closed - - Final Design and Permitting; Construction Closed GVEA Serving Area 30 O $ 190,000 Railbelt Rd1 410022 2195465 Wind Alaska Wind Power, LLC Delta Junction Wind Assessment& Avian Study-Closed - - Feasibility and Conceptual Design; Final Design and Permitting Closed GVEA Serving Area 36 R $ 65,412 Railbelt Rd1 402033 2195395 Biomass Delta/Greely School District Delta Junction Wood Chip Heating Feasibilit-Closed 29,000 - Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Delta Junction 36 R $ 2,000,000 Railbelt Rd1 410027 2195370 Wind Alaska Environmental Power Delta Area Wind Turbines - Closed 0.03 Bcf 1.90 Feasibility and Conceptual Design; Final Design and Permitting Operational GVEA Serving Area 36 R $ 2,000,000 Railbelt Rd1 407052 2195422 Hydroelectric Alaska Green Energy California Creek Hydro Feasibility - Closed - - Feasibility and Conceptual Design Closed CEA Serving Area 9 E $ 27,300 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Railbelt Rd1 407024 2195331 Hydroelectric Homer Electric Association, Inc. Falls Cr Low Impact Hydro Assessment - Closed - - Feasibility and Conceptual Design Closed HEA Serving Area 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 50,000 Railbelt Rd4 407082 7040063 Hydroelectric Bering Pacific Engineering Eska Creek Hydroelectric Project R4 - Closed - - Feasibility and Conceptual Design Closed MEA Serving Area 25;26;27;28;29; 30 M;N;O $ 14,408 Railbelt Rd4 407080 7040060 Hydroelectric Eklutna, Inc. Hunter Creek Hydroelectric Project R4 - Closed - - Feasibility and Conceptual Design Closed MEA Serving Area 25;26;27;28;29; 30 M;N;O $ 84,000 Railbelt Rd1 407053 2195437 Hydroelectric University of Alaska Fairbanks Nenana Hydrokinetic Feasibility - CLOSED - - Reconnaissance; Feasibility and Conceptual Design Closed Nenana 36 R $ 450,000 Railbelt Rd1; Rd2 410046 2195433 Wind Kenai Winds, LLC Nikiski Wind Farm Construction - Closed - - Feasibility and Conceptual Design; Final Design and Permitting; Construction Closed Nikiski 8 D $ 2,103 Railbelt Rd4 402116 7040061 Biomass Port Graham Village Council Port Graham Biomass Waste Heat Demo PrjR4-CLOSED - - Final Design and Permitting Closed Port Graham 37 S $ 58,600 Railbelt Rd1 407026 2195335 Hydroelectric Homer Electric Association, Inc. Ptarmingan Lk/Ck Low Impact Hydro Assess - Closed - - Feasibility and Conceptual Design Closed HEA Serving Area 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 4,684 Railbelt Rd1 407023 2195334 Hydroelectric Homer Electric Association, Inc. Cresent Lk/Cr Low Impact Hydro Assess - Closed - - Feasibility and Conceptual Design Closed HEA Serving Area 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 23,273 Railbelt Rd1 407043 2195396 Hydroelectric City of Whittier Whittier Creek Hydroelectric Reconnaissance-Closed - - Reconnaissance; Feasibility and Conceputal Design Closed Whittier 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 39,471 Railbelt Rd1 407025 2195333 Hydroelectric Homer Electric Association, Inc. Grant Lk/Cr Low Impact Hydro Assessment - Closed - - Feasibility and Conceptual Design Closed HEA Serving Area 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 50,000 Railbelt Rd3 406012 7030018 Geothermal ORNI 46 LLC Mount Spurr Geothermal Project R3, R4- Closed - - Reconnaissance; Feasibility and Conceputal Design Closed Railbelt Region 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 1,993,158 Railbelt Rd1; Rd4 407042 2195428; 7040035 Hydroelectric Kenai Hydro, LLC Grant Lake Hydroelectric Facility-Closed - - Feasibility and Conceptual Design; Final Design and Permitting Closed HEA Serving Area 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 2,000,000 Railbelt Rd1; Rd4 410044 2195425; 7040031 WInd Golden Valley Electric Association EVA Creek Wind Turbine Purchase- CLOSED 0.39 Bcf 24.60 Final Design and Permitting; Construction Operational GVEA Serving Area 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 3,463,200 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Railbelt Rd4; Rd7 407077 7040005; 7071082 Hydroelectric Chugach Electric Association, Inc. StetsonCrkDiversion/CooperLakeDamFa cilities-Closed .05 Bcf - Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational CEA Serving Area 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 3,594,980 Railbelt Rd7 406023 7071031 Heat Recovery Cook Inlet Housing Authority Seldovia Ground Source Heat Pump- CLOSED 7,500 - Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Seldovia 6 C $ 311,753 Railbelt Rd1 407044 2195420 Hydroelectric Independence Power, LLC Fourth of July Creek Hydroelectric- Closed - - Reconnaissance Closed CEA Serving Area 5 C $ 20,000 Railbelt Rd3 406011 7030017 Heat Recovery City of Seward AK SeaLifeCenter PH II Seawater Heat PumpR3-Closed 48,104 - Final Design and Permitting; Construction Operational Seward 5 C $ 286,580 Railbelt Rd9 407109 7091242 Heat Recovery City of Seward Heat Pump System for City of Seward R9 - - Final Design and Permitting; Construction Development Seward 5 C $ 725,000 Railbelt Rd14 410102 7014029 Wind Golden Valley Electric Association Golden Valley Electric Association - Interior Alaska Wind Assessment - - Reconnaissance; Feasibility and Conceptual Design Development GVEA Serving Area 31;32;33;34;35 P;Q;R $ 855,000 Railbelt Rd14 407125 7014006 Hydroelectric City of Homer Homer Energy Recovery Project - - Final Design and Permitting; Construction Development Homer 6 C $ 79,500 Railbelt Rd14 410112 7014009 Wind Alaska Electric & Energy Cooperative, Inc. Alaska Electric & Energy Cooperative, Inc. - Bradley Lake Bench Wind Feasibility - - Feasibility and Conceptual Design Development HEA Serving Area 6 C $ 232,000 Railbelt Rd14 411012 7014019 Solar Native Village of Eklutna Native Village of Eklutna - Solar PV Feasibility - - Feasibility and Conceptual Design Closed MEA Serving Area 24 L $ 22,500 Railbelt Rd14 402145 7014028 Biomass City of Nenana City of Nenana - Biomass Construction 44,697 - Construction Closed Nenana 36 R $ 676,121 Railbelt Rd14 410107 7014010 Wind Alaska Electric & Energy Cooperative Inc. Alaska Electric & Energy Cooperative, Inc. - East Foreland / Nikiski Wind Feasibility - - Feasibility and Conceptual Design Development HEA Serving Area 6 C $ 200,000 Railbelt Rd14 410108 7014008 Wind Alaska Electric & Energy Cooperative, Inc. Alaska Electric & Energy Cooperative, Inc. - Ninilchik Wind Feasibility - - Feasibility and Conceptual Design Development HEA Serving Area 6 C $ 192,000 Railbelt Rd14 410109 7014011 Wind Alaska Electric & Energy Cooperative, Inc. Alaska Electric & Energy Cooperative, Inc. - Caribou Hills Wind Feasibility - - Feasibility and Conceptual Design Development HEA Serving Area 6 C $ 209,600 Railbelt Rd14 411013 7014003 Solar Point Mackenzie Solar, LLC.Point MacKenzie Solar Feasibility - - Reconnaissance; Feasibility and Conceptual Design Closed CEA Serving Area 25;26;27;28;29; 30 M;N;O $ 75,000 Railbelt Rd14 407129 7014022 Hydroelectric Chugach Electric Association, Inc. Chugach Electric Association, Inc. On behalf of the Bradley Lake Management Committee (BPMC) - Dixon Diversion Feasibility 1.5 Bcf - Feasibility and Conceptual Design Development Railbelt Region 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 1,000,000 Railbelt Rd14 402144 7014012 Biomass Alaska Electric & Energy Cooperative, Inc. Alaska Electric & Energy Cooperative, Inc. - KPB CPL Landfill Gas CHP Project - - Final Design and Permitting Development HEA Serving Area 6 C $ 884,986 Railbelt Rd15 404113 7015004 Wind Cook Inlet Region Inc (CIRI) Energy, LLC Healy Area Renewable Resource Assessment - - Feasibility and Conceptual Design Development Railbelt Region 30 O $ 298,000 Railbelt Rd15 404114 7015005 Wind Cook Inlet Region Inc (CIRI) Energy, LLC Beluga Area Renewable Resource Assessment - - Feasibility and Conceptual Design Development Railbelt Region 37 S $ 298,000 Railbelt Rd15 406025 7015024 Geothermal Alaska Electric & Energy Cooperative, Inc. Augustine Island Geothermal Feasibility and Conceptual Design - - Feasibility and Conceptual Design Development HEA Serving Area 37 S $ 68,000 Railbelt Rd15 406026 7015025 Geothermal Alaska Electric & Energy Cooperative, Inc. Mount Spurr Geothermal Feasibility and Conceptual Design - - Feasibility and Conceptual Design Development HEA Serving Area 37 S $ 45,500 Railbelt Rd15 410117 7015009 Wind Matanuska Electric Association, Inc. Railbelt Wind Feasbility Study and Conceptual Design - - Feasibility and Conceptual Design Development MEA Serving Area 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;31; 32;33;34;35;36 C;D;E;F;G;H;I;J; K;L;M;N;O;P;Q; R $ 1,833,333 Railbelt Rd15 410102 7015018 Wind Golden Valley Electric Association LIDAR Improvement to Interior Wind Energy Assessments - - Feasibility and Conceptual Design Development GVEA Serving Area 36 R $ 250,000 Railbelt Rd15 410120 7015021 Wind Alaska Renewables LLC Utility-Scale Railbelt Wind – Alaska Renewables - - Final Design and Permitting Development Railbelt Region 30;36 O;R $ 1,980,807 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Railbelt Rd15 410121 7015023 Wind Alaska Electric & Energy Cooperative, Inc.Cook Inlet Oil Platform Wind Project - - Reconnaissance; Feasibility and Conceputal Design Development HEA Serving Area 8 D $ 214,000 Railbelt Rd16 411017 7016005 Solar Solstice Energy LLC Kenai Peninsula Solar Farm - - Final Design and Permitting; Construction Development HEA Serving Area 6 C $ 2,000,000 Railbelt Rd16 402144 7016015 Biomass Alaska Electric & Energy Cooperative, Inc.KPB CPL Landfill Gas CHP Project - - Construction Development HEA Serving Area 6 C $ 1,115,014 Railbelt Total 126,104 33.5 $ 35,226,299 Southeast Southeast Rd8 402131 7081113 Heat Recovery Tlingit Haida Regional Housing Authority Angoon Low-Income Housing Pellet Heat - Closed 11,400 - Final Design and Permitting; Construction Operational Angoon 2 A $ 240,592 Southeast Rd4; Rd5 407074 7040038; 7050825 Hydroelectric Kootznoowoo, Inc.Thayer lake Hydroelectric Project R4 - - Feasibility and Conceptual Design; Final Design and Permitting; Construction Development Angoon 2 A $ 8,055,717 Southeast Rd4 402114 7040042 Biomass City of Craig Craig Biomass Fuel Dryer Project R4 - CLOSED 1,078,000 - Final Design and Permitting; Construction Operational Craig 2 A $ 350,000 Southeast Rd2 407060 2195462 Hydroelectric Alaska Power Company Carlson Creek Hydro-Closed - - Reconnaissance; Feasibility and Conceputal Design Closed Southcentral Alaska 5;6;7;8;9;10;11; 12;13;14;15;16; 17;18;19;20;21; 22;23;24;25;26; 27;28;29;30;36 C;D;E;F;G;H;I;J; K;L;M;N;O;R $ 8,811 Southeast Rd4 407015 7040043 Hydroelectric Community of Elfin Cove Non-Profit Elfin Cove Hydroelectric Project-Closed - - Feasibility and Conceptual Design; Final Design and Permitting Closed Elfin Cove 2 A $ 346,640 Southeast Rd1 407045 2195387 Hydroelectric Gustavus Electric Company Falls Creek Hydroelectric Construction- Closed 300,000 0.80 Construction Operational Gustavus 3 B $ 750,000 Southeast Rd4 407081 7040067 Hydroelectric Alaska Power Company Schubee Lake Hydroelectric Project R4 - Closed - - Reconnaissance; Feasibility and Conceputal Design Closed Haines Borough 3 B $ 74,191 Southeast Rd4 407083 7040069 Hydroelectric Haines Borough Haines Excursion Inlet Hydro Project R4 - Closed - - Reconnaissance; Feasibility and Conceputal Design Closed Haines Borough 3 B $ 78,384 Southeast Rd1 402034 2195373 Biomass Chilkoot Indian Association Haines Ctrl Wood Heating Sys Constr(LIHP)-Closed 11,520 - Final Design and Permitting; Construction Operational Haines Borough 3 B $ 188,620 Southeast Rd1; Rd7 402036 2195372; 7071021 Biomass Haines Borough Haines Borough Municipal Buildings Biomass CLOSED - - Reconnaissance; Feasibility and Conceputal Design; Construction Closed Haines Borough 3 B $ 409,331 Southeast Rd4 407079 7040066 Hydroelectric Alaska Power Company Connelly Lake Hydroelectric Project R4- Closed - - Reconnaissance; Feasibility and Conceputal Design Closed Haines Borough 3 B $ 468,000 Southeast Rd8 402133 7081161 Biomass Hoonah Indian Association Hoonah Biomass District Heating Loop- Closed 53,161 - Feasibility and Conceptual Design Closed Hoonah 2 A $ 40,000 Southeast Rd4 403053 7040036 Heat Recovery Inside Passage Electric Cooperative Hoonah Heat Recovery Project R4- Closed 55,000 - Final Design and Permitting; Construction Operational Hoonah 2 A $ 472,964 Southeast Rd1 407070 7030019 Hydroelectric Inside Passage Electric Cooperative Hoonah - IPEC Hydro Project R3-Closed Ref. Project # 407100 - Final Design and Permitting Closed Hoonah 2 A $ 850,000 Southeast Rd6 407100 7060922 Hydroelectric Inside Passage Electric Cooperative Gartina Falls Hydroelectric Project - Closed 121,477 0.455 Final Design and Permitting; Construction Operational Hoonah 2 A $ 6,694,000 Southeast Rd8 402135 7081131 Biomass Hydaburg City School District Hydaburg Schools Wood Fired Boiler- CLOSED 25,500 - Final Design and Permitting; Construction Operational Hydaburg 2 A $ 620,977 Southeast Rd1 406008 2195359 Heat Recovery City and Borough of Juneau Juneau Airport Ground Source Heat Pump - Closed 37,082 - Final Design and Permitting; Construction Operational Juneau 4 B $ 513,000 Southeast Rd1 406009 2195393 Heat Recovery City and Borough of Juneau Juneau Ground Source Heat Pump Constr(Aq Ctr)-Clsd 63,200 - Final Design and Permitting; Construction Operational Juneau 4 B $ 1,450,000 Southeast Rd4 409030 7040039 Transmission Alaska Electric Light & Power Company Snettisham Trans Ln Avalanche Mitigation R4-Closed - - Final Design and Permitting; Construction Operational Juneau 4 B $ 2,000,000 Southeast Rd7 402124 7071087 Biomass Organized Village of Kake Kake Community Energy 35,000 - Final Design and Permitting Closed Kake 2 A $ 175,000 Southeast Rd1 409019 2195414 Transmission Southeast Conference Kake-Petersburg Intertie-Closed - - Final Design and Permitting Closed Kake 2 A $ 1,538,847 Southeast Rd7; Rd9 407104 7071025; 7091244 Hydroelectric Inside Passage Electric Cooperative Gunnuk Creek Hydroelectric Project 53,604 0.50 Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Kake 2 A $ 4,000,000 Southeast Rd7 402129 7071037 Biomass Ketchikan Gateway Borough Ketchikan Gateway Borough Biomass Heating-CLOSED 111,033 - Final Design and Permitting; Construction Operational Ketchikan Gateway Borough 1 A $ 620,000 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Southeast Rd1; Rd4 407046 2195441; 7040044 Hydroelectric Ketchikan Public Utility Whitman Lake Hydroelectric Project- Closed ($1.3M + $700k REF) 1,100,000 4.60 Final Design and Permitting; Construction Operational Ketchikan Gateway Borough 1 A $ 2,000,000 Southeast Rd4 407085 7040074 Hydroelectric Metlakatla Indian Community Triangle Lake Hydroelectric Project R4- Clsd - - Feasibility and Conceptual Design Closed Metlakatla 1 A $ 500,000 Southeast Rd1; Rd4 409020 7040068; 2195429 Transmission Metlakatla Indian Community Metlakatla-Ketchikan Intertie R1, R4 - - Feasibility and Conceptual Design; Final Design and Permitting Closed Metlakatla 1 A $ 2,000,000 Southeast Rd8 402136 7081135 Heat Recovery Metlakatla Indian Community Lepquinum Center Ground Source Heat Pump-Closed 47,200 - Final Design and Permitting; Construction Operational Metlakatla 1 A $ 3,445,040 Southeast Rd4 407076 7040040 Hydroelectric City of Pelican Pelican Hydroelectric Upgrade Project R4 - Closed 74,000 0.65 Final Design and Permitting; Construction Operational Pelican 2 A $ 1,896,836 Southeast Rd1 409018 2195360 Transmission Alaska Power and Telephone North Prince of Wales Island Intertie Prj- Closed - - Reconnaissance; Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Prince of Wales Island 2 A $ 3,752,181 Southeast Rd1; Rd4 407032 2195440; 7040065 Hydroelectric Southeast Conference Hillangaay (Reynolds Creek) Hydro Project-CLOSED 267,467 5.00 Final Design and Permitting; Construction Operational Prince of Wales Island 2 A $ 4,000,000 Southeast Rd4 406017 7040072 Heat Recovery City and Borough of Sitka Sitka Wastewater Treatment Plant Feas R4 Closed - - Feasibility and Conceptual Design Closed Sitka 2 A $ 16,699 Southeast Rd4; Rd7 406016 7040071; 7071011 Heat Recovery City and Borough of Sitka Sitka Centennial Hall&Library Feas/HeatPump-Closed 12,200 - Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Sitka 2 A $ 262,600 Southeast Rd1 407049 2195418 Hydroelectric City and Borough of Sitka Takatz Lake Hydroelectric Feasibility- Closed - 28.00 Feasibility and Conceptual Design Closed Sitka 2 A $ 2,000,000 Southeast Rd6 407088 7060917 Hydroelectric City and Borough of Sitka Sitka Blue Lake Hydroelectric Project- Closed 1,255,867 9.40 Final Design and Permitting; Construction Operational Sitka 2 A $ 4,000,000 Southeast Rd1 407048 2195400 Hydroelectric Burro Creek Holdings, LLC Burro Creek Hydro Feasibility Study - Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Municipality of Skagway 3 B $ 48,000 Southeast Rd1 407047 2195415 Hydroelectric City of Petersburg d.b.a Ruth Lake Hydro Reconnaissance - Closed - - Feasibility and Conceptual Design Closed Petersburg 2 A $ 155,702 Southeast Rd8 402132 7081147 Biomass Southeast Island School District Southeast Island School District Wood Boilers-Clsd 63,973 - Final Design and Permitting; Construction Operational Southeast Island School District 1;2 A $ 832,635 Southeast Rd4 406018 7040073 Geothermal Inside Passage Electric Cooperative Tenakee Inlet Geothermal Resource Study R4-Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Tenakee Springs 2 A $ 568,730 Southeast Rd4; Rd6 407014 7040041; 7060978 Hydroelectric City of Tenakee Springs Indian River Hydroelectric Project - Closed - 0.18 Final Design and Permitting; Construction Closed Tenakee Springs 2 A $ 3,191,000 Southeast Rd2; Rd4 402044 2195469; 7040037 Biomass Southeast Island School District Thorne Bay School Wood Fired Boiler- Biomass-Close 15,000 - Final Design and Permitting; Construction Operational Thorne Bay 2 A $ 414,686 Southeast Rd2 407057 2195455 Hydroelectric Alaska Power and Telephone Neck Lake Hydro Feas&Const Design R2&R3-Closed - - Feasibility and Conceptual Design Closed Whale Pass 1 A $ 22,475 Southeast Rd4 407086 7040070 Hydroelectric City and Borough of Wrangell Wrangell Electric Vehicle Feasibility Study-Closed - - Reconnaissance Closed Wrangell 1 A $ 25,000 Southeast Rd1 407055 2195423 Hydroelectric City and Borough of Wrangell Wrangell Hydro Based Electric Boiler Const.-Closed 66,000 - Final Design and Permitting; Construction Operational Wrangell 1 A $ 1,862,387 Southeast Rd1 402035 2195424 Biomass Yakutat Power Yakutat Biomass Feas. & District HeatingLoop-Clsd 6,000 - Feasibility and Conceptual Design; Final Design and Permitting Closed Yakutat 2 A $ 249,600 Southeast Rd13 407117 7013010 Hydroelectric Inside Passage Electric Cooperative Water Supply Creek Hydro Final Design Ref. Project # 407117 - Final Design and Permitting Development Hoonah 2 A $ 461,474 Southeast Rd14 407124 7014027 Hydroelectric Inside Passage Electric Cooperative Jenny Creek Hydro Reconnaissance - Kake IPEC - - Reconnaissance Closed Kake 2 A $ 62,368 Southeast Rd15 403077 7015026 Heat Recovery Yakutat Community Health Center Yakutat Community Health Center Heat Recovery Project - - Final Design and Permitting; Construction Development Yakutat 2 A $ 1,000,000 Southeast Rd15 407117 7015028 Hydroelectric Inside Passage Electric Cooperative Water Supply Creek Hydro Construction - - Construction Development Hoonah 2 A $ 3,538,526 Southeast Total 4,769,522 21.41 $ 66,251,014 Yukon-Koyukuk/Upper Tanana Yukon-Koyukuk/Upper Tanana Rd2 402041 2195451 Biomass Chalkyitsik Village Council Chalkyitsik Biomass Central Heating CDR - Closed 40,750 - Feasibility and Conceptual Design Closed Chalkyitsik 36 R $ 32,500 Yukon-Koyukuk/Upper Tanana Rd6 411008 7060915 Solar Alaska Power Company Eagle Solar Array Project R6-Closed 2,632 0.024 Construction Operational Eagle 36 R $ 118,013 Yukon-Koyukuk/Upper Tanana Rd1 402040 2195405 Biomass Gwitchyaa Zhee Utility Company Fort Yukon Central Wood Heating Design-Closed Ref. Project # 402047 - Feasibility and Conceptual Design; Final Design and Permitting Closed Fort Yukon 36 R $ 210,000 Yukon-Koyukuk/Upper Tanana Rd3 402047 7030021 Biomass Gwitchyaa Zhee Utility Company District Wood Heating in Fort Yukon R3 - Closed 100,000 - Construction Operational Fort Yukon 36 R $ 2,318,255 Yukon-Koyukuk/Upper Tanana Rd4 402112 7040047 Biomass Louden Tribal Council Louden Tribal Council RE Feasibility Study -Closed - - Feasibility and Conceptual Design Closed Galena 36 R $ 89,628 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget Yukon-Koyukuk/Upper Tanana Rd6; Rd7 402125 7060927; 7071047 Biomass City of Galena Galena Community Wood Heat Project- CLOSED 203,850 - Final Design and Permitting; Construction Operational Galena 36 R $ 3,414,688 Yukon-Koyukuk/Upper Tanana Rd5 402119 7050821 Biomass Huslia Traditional Council Huslia Water System & Clinic Wood Boiler - Closed 23,000 - Reconnaissance; Feasibility and Conceptual Design Operational Huslia 36 R $ 49,843 Yukon-Koyukuk/Upper Tanana Rd2 402045 2195474 Biomass Yukon-Koyukuk School District Biomass Hydronic Heating-Yukon Koyukuk Schl Closed - - Feasibility and Conceptual Design Closed Kaltag 36 R $ 12,710 Yukon-Koyukuk/Upper Tanana Rd6 402126 7060933 Biomass Interior Regional Housing Authority Biomass Feas. Studies Public Fac. Interior-Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Interior Alaska Various Various $ 102,432 Yukon-Koyukuk/Upper Tanana Rd4; Rd6 402049 7040045; 7060925 Biomass Alaska Power and Telephone Upper Tanana Biomass CHP Project R4, R6-CLOSED - - Reconnaissance; Feasibility and Conceptual Design Closed Tok Various Various $ 362,883 Yukon-Koyukuk/Upper Tanana Rd4; Rd5 402113 7040048; 7050820 Biomass Interior Regional Housing Authority Feasibility Assess. Wood Heating Interior AK-Clsd 30,000 - Reconnaissance; Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Hughes; Anvik; Koyukuk Various Various $ 1,313,382 Yukon-Koyukuk/Upper Tanana Rd4 411006 7040049 Solar Alaska Village Electric Cooperative Kaltag Solar Construction - Closed 425 0.010 Final Design and Permitting; Construction Operational Kaltag 36 R $ 90,000 Yukon-Koyukuk/Upper Tanana Rd1 406006 2195421 Geothermal TDX Power, Inc. Manley Hot Springs Geothermal Plant - Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Manley Hot Springs 36 R $ 27,876 Yukon-Koyukuk/Upper Tanana Rd2 402043 2195459 Biomass McGrath Traditional Council McGrath Biomass Feasibility-Biomass- Closed - - Reconnaissance; Feasibility and Conceptual Design Closed McGrath 36 R $ 25,736 Yukon-Koyukuk/Upper Tanana Rd1 402039 2195403 Biomass McGrath Light & Power Company McGrath Central Wood Heating Dev Phase III-CLOSED - - Final Design and Permitting Closed McGrath 36 R $ 131,719 Yukon-Koyukuk/Upper Tanana Rd1 403030 2195416 Heat Recovery McGrath Light & Power Company McGrath Heat Recovery Construction- Closed 22,975 - Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational McGrath 36 R $ 712,415 Yukon-Koyukuk/Upper Tanana Rd7 402128 7071032 Biomass Village of Minto Minto Community Buildings Biomass Project-Closed 11,400 - Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Minto 36 R $ 274,800 Yukon-Koyukuk/Upper Tanana Rd1 407050 2195402 Hydroelectric Yukon River Inter-Tribal Ruby Hydrokinetic Construction - Closed - 0.025 Reconnaissance; Feasibility and Conceptual Design; Final Design and Permitting; Construction Closed Ruby 36 R $ 189,335 Yukon-Koyukuk/Upper Tanana Rd5 402118 7050881 Biomass Native Village of Tanacross dba Tanacross Village Tanacross Woody Biomass Comm. Space Heating-Clsd 18,000 - Final Design and Permitting; Construction Operational Tanacross 36 R $ 420,000 Yukon-Koyukuk/Upper Tanana Rd3 402048 7030022 Biomass City of Tanana City Tribe Biomass Energy Conservation R3-Closed 60,000 - Construction Operational Tanana 36 R $ 412,641 Yukon-Koyukuk/Upper Tanana Rd2 410057 2195476 Wind Alaska Power and Telephone Tok Wind Resource Assessment-Closed - - Reconnaissance Closed Tok 36 R $ 52,232 Yukon-Koyukuk/Upper Tanana Rd1 402038 2195417 Biomass Alaska Gateway School District Tok Wood Heating Construction - Biomass- Closed 65,000 - Feasibility and Conceptual Design; Final Design and Permitting; Construction Operational Tok 36 R $ 3,245,349 Yukon-Koyukuk/Upper Tanana Rd2 407056 2195447 Hydroelectric Association of Village Council Presidents Kiseralik/Chikuminuk Hydro-Closed - - Reconnaissance; Feasibility and Conceptual Design Closed Upper Kuskokwim 37 S $ 229,952 Yukon-Koyukuk/Upper Tanana Rd2 402042 2195452 Biomass Venetie Village Council Venetie District Heat Conceptual Design- Closed - - Feasibility and Conceptual Design Closed Venetie 36 R $ 32,500 Yukon-Koyukuk/Upper Tanana Rd7 403076 7071044 Heat Recovery Village of Venetie Venetie Clinic Heat Recovery-Closed 2,300 - Final Design and Permitting; Construction Operational Venetie 36 R $ 197,942 Yukon-Koyukuk/Upper Tanana Rd13 407115 7013006 Biomass Alaska Gateway School District Walter Northway School Wood Chip Heating System - - Construction Development Northway 36 R $ 650,000 Yukon-Koyukuk/Upper Tanana Rd14 411010 7014034 Solar City of Galena Galena Community Scale Solar PV and Battery Project - - Final Design and Permitting; Construction Development Galena 36 R $ 2,000,000 Yukon-Koyukuk/Upper Tanana Rd14 411011 7014002 Solar Alaska Village Electric Cooperative, Inc. Holy Cross Solar Energy & Battery Storage Feasibility Study Project - - Feasibility and Conceptual Design Development Holy Cross 36 R $ 135,000 Yukon-Koyukuk/Upper Tanana Rd15 411015 7015006 Solar Tanana Chiefs Conference Huslia Community-Scale Solar PV and Battery Project - - Final Design and Permitting; Construction Development Huslia 36 R $ 2,082,000 Yukon-Koyukuk/Upper Tanana Rd16 411019 7016028 Solar Tanana Chiefs Conference Ruby Community Solar PV and Battery Storage - - Final Design and Permitting; Construction Development Ruby 36 R $ 2,008,113 Yukon-Koyukuk/Upper Tanana Total 539,582 0.03 $ 20,941,945 $ 301,720,092 Energy Region REF Round Project No.Grant No.Technology Grantee AEA Project Name Avg. Annual Diesel / Diesel Equivalent Displacement Est. (gal) Nameplate Capacity (MW)REF Project Phase(s)Status Community Name House District (2022) Senate District (2022) *Projects highlighted in blue denote those projects currently in development. Nameplate capacity, energy production, energy displacement are to be determined. ALASA ENERGY AUTHORITY RENEWABLE ENERGY FUND PROJECTS REF Budget REF Projects - Projects by Energy Region & Status REF Projects - Nameplate Capacity (MW) & Displacement by Energy Region - Operational Projects Energy Region Operational Closed Development No. of Projects Energy Region Nameplate Capacity (Megawatts) Annual Estimated Diesel Fuel / Fuel Oil Displacement (Gallons) Annual Natural Gas Displacement (Bcf) Aleutians 10 10 3 23 Aleutians 2.31 586,926 - Bering Straits 10 8 1 19 Bering Straits 9.40 460,478 - Bristol Bay 8 13 4 25 Bristol Bay 1.42 223,977 - Copper River/Chugach 11 5 2 18 Copper River/Chugach 7.75 720,081 - Kodiak 2 5 1 8 Kodiak 20.25 4,751,110 - Lower Yukon-Kuskokwim 25 12 11 48 Lower Yukon-Kuskokwim 5.43 576,222 - Non Specified 0 2 0 2 Non Specified 0.00 - - North Slope 1 5 0 6 North Slope 0.00 100,000 - Northwest Arctic 6 5 6 17 Northwest Arctic 2.10 601,559 - Railbelt 10 20 17 47 Railbelt 33.50 126,104 1.15 Southeast 22 22 3 47 Southeast 21.41 4,769,522 - Yukon-Koyukuk/Upper Tanana 12 13 5 30 Yukon-Koyukuk/Upper Tanana 0.03 539,582 - TOTAL 117 120 53 290 TOTAL 103.59 13,455,561 1.15 Railbet, as % of total 16% 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG MEMORANDUM TO: Curtis W. Thayer, Executive Director FROM: Bryan Carey, P.E., Director of Owned Assets DATE: October 8, 2024 RE: Bradley Lake Hydroelectric Update Below is an update on the Alaska Energy Authority (AEA) owned Bradley Lake Hydroelectric Project. Bradley Lake Hydroelectric Project  Bradley Lake spills at 1180 feet. Reservoir level for the past several weeks has been 1174 ft to 1176 ft which is where utilities want going into winter. Pending Spill is declared at 1175 ft and utilities can use as much water as they can without decreasing their “pond”. Usage by each utility is limited by all other utilities wanting energy and the transmission line constraints.  Bradley Lake elevation figure attached. In addition to lake elevation daily power for the last week is shown.  Dixon Diversion contractor crews in the last month were performing geotechnical & fish habitat studies, counting fish, and collecting water discharge data. Geotechnical information will inform structure location and orientation to avoid expensive excavations during construction.  Board of Consultants (BoC) members, required by FERC, and visited Bradley to familiarize with dam and view rock cuts. BoC writing a trip report. A couple of take comments from visit:  Rock appears to be good quality for tunnel boring  Takes 16-18 months to purchase or refurbish an existing tunnel boring machine (TBM)  Power for TBM and conveyor belt on order of ~4-5 MW  May change tunnel outlet by curving tunnel. Save some distance & cost  Typically once tunnel completed cutting head removed & buried while rest of TBM broken down into small parts and removed  An Independent Cost Estimate will be prepared for the Dixon Diversion Project  Required Project Work. Chugach Electric Association (CEA) proceeding with design and permits for the Sterling – Quartz section. First line section for construction to go to bid this summer.  Required Project Work. Homer Electric Association proceeding with design and permitting of the Soldotna – Sterling section.  Required Project Work. AEA is in discussions with CEA, Matanuska Electric Association, and counsel on the Southcentral Battery Energy Storage System (BESS) in Anchorage. Alaska Energy Authority Page 2 of 2  Dixon Diversion Project having busy field season at Bradley Lake. Multiple weeks of fisheries studies, multiple weeks of drilling, hydrology work, and studies on raising the height of Bradley Lake dam.  Dixon Diversion November 2023 update has anticipated annual energy ~190,000 MWhrs with a Total Project Cost of $342 million.  Dixon Diversion received $5 million from State of Alaska (FY2024) for feasibility studies. 1070.0 1090.0 1110.0 1130.0 1150.0 1170.0 1190.0 1/1 1/16 1/31 2/15 3/1 3/16 3/31 4/15 4/30 5/15 5/30 6/14 6/29 7/14 7/29 8/13 8/28 9/12 9/27 10/12 10/27 11/11 11/26 12/11 12/26 Bradley Lake Level 10/3/2024 2018 AVG. 2019 2020 "2021" 2022 2023 2024 1174.4 1174.2 1174.3 1174.5 1174.4 1174.2 1173.9 9/27 9/28 9/29 9/30 10/1 10/2 10/3 0 50 100 9/27 9/28 9/29 9/30 10/1 10/2 10/3 Weekly Power BRD QTZ 78 80 81 87 81 80 83 65 61 61 69 65 65 79 9/27 9/28 9/29 9/30 10/1 10/2 10/3 MAX AVG QTZ 10,434 93% LOSSES 791 7%HEA 1 0% 9/27-10/3 Bradley MWH's 11,162 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM TO: AEA Board of Directors THROUGH: Curtis Thayer, Executive Director FROM: Jim Mendenhall, P.E., Program Manager DATE: October 8, 2024 SUBJECT: Railbelt Innovation and Resliency Project, Phase 1 GRIP Topic 3, Round 1 - Update AEA submitted all the documents requested by DOE in order for them to make an award and DOE issued a project award effective September 1, 2024. AEA held a Board meeting, with the new Board of Directors on September 10, 2024 and they passed resolution 2024-08 which approved the acceptance of the GRIP Award. On September 11, 2024 AEA formally accepted the award. While the DOE award is for the entire Grant ($206.5M), we are only authorized to spend $14.7M. Earlier this year we submitted a project budget of ~$14.7M for the initial budget period (10/18/2023-6/30/2025). This estimate included the pre-award expenses and will be the basis for the spending cap when the award is issued. Pre-award expenses (10/18/2023-08/31/2024) are estimated to be ~$1.5M. As more funds are dedicated to the project, the spending cap will increase. State funding based on the FY2025 budget is currently $32.7M total, of which $20M is from the Bradley Bonds and $12.7M is dedicated from State funds. The State also requested that the BPMC dedicate an additional $30M of Bradley Bond funds to the project in accordance with the Office of Management and Budget (OMB) funding plan. The AEA Board has allocated $28M to BESS, the three Railbelt energy regions (Southern, Central & Northern) are discussing how to distribute the funds. The initial focus is system studies, design, permitting and siting issues related to the HVDC line. We did include some design costs related to the BESS because we know those systems need to be evaluated for integration in the Railbelt system regardless of when they are integrated. AEA, in cooperation with the Railbelt Utilities, is in the process of a Strategic Analysis of the Railbelt transmission system. The Strategic Analysis should provide a value for the transfer requirements of the subsea cable. AEA, through an existing contract, asked Stantec to prepare a proposal for an initial project work plan and schedule for the HVDC project. It included: pre-construction planning for supply, delivery, construction, installation and commissioning of HVDC Link. Earlier this month AEA submitted a Notice to Proceed to Stantac. In q1 of 2025 Stantec plans to provide the following information: Alaska Energy Authority Page 2 of 2 1. Initial Project Plan and Schedule 2. HVDC Conceptual Design 3. HVDC Cable Preliminary Design 4. Critical Environmental Issues Analysis 5. Preliminary Cost Estimate We continue to have weekly check-in meetings with the DOE. 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM TO: Curtis W. Thayer, Executive Director FROM: Bryan Carey, P.E., Director of Owned Assets DATE: October 8, 2024 RE: Sterling to Quartz Transmission Line Update Below is an update on the Alaska Energy Authority (AEA) owned Sterling to Quartz transmission line upgrade project.  The Sterling Substation to Quartz Substation (SSQ) transmission line will be upgraded in the next five years from 115 kV to 230 kV construction. It will continue to operate at 115 kV until all transmission from Soldotna to Anchorage is upgraded.  SSQ for upgrade is divided into four “projects” west to east.  Chugach Electric Association (CEA) is doing design, procurement, and overseeing construction of Projects.  Construction projects are scheduled years out to minimize energy outages considering schedule & location.  Construction of most transmission projects performed during winter so that wetlands frozen and vegetation protected by snow pack.  Draft Schedule:  2025 Q1 SSQ P1  2026 Q1 Soldotna to Sterling and Dave’s Creek to Summit  2027 Q1 SSQ P2  2028 Q1 SSQ P3 & P4  Project 1 has been bid and the southern intertie will be out all most all the time between January 7, 2025 and March 21, 2025.  There is a concern that during the time that the outage will occur Bradley Lake Hydroelectric will be unavailable to central and northern utilities in case of a natural gas issue.  Bradley Lake being full and central and northern utilities being cut off from it for nearly three months means they must run it hard (non-optimize) when they have access to drawn level down.  Electric utilities will join Enstar in October to discuss responses to a potential gas shortage in January. 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM TO: Alaska Energy Authority Board THRU: Curtis. W. Thayer, Executive Director FROM: Karen Bell, Planning Manager DATE: October 7, 2024 RE: Railbelt Transmission Organization (RTO) Update House Bill 307 (the Bill) was passed by the 33rd Alaska State Legislature during its second regular session and signed by Governor Dunleavy on July 31, 2024. Among other energy related initiatives, the Bill established the RTO as a division of the Alaska Energy Authority (AEA) for administrative purposes. The Bill added new sections to Alaska Statutes, 44.83.700-720. Pursuant to AS 44.83.700, the RTO was created for the purpose of establishing an open access transmission tariff (OATT) that (1) provides for recovery of transmission costs and related ancillary services; and (2) replaces wholesale charges assessed by unit by each utility in the Railbelt with a new mechanism that fairly recovers and equitably allocates the costs of operating the backbone transmission system. To assist in administering the OATT, the governance structure of the RTO is comprised of a representative from AEA, a representative from each of the Railbelt utilities, and as an ex officio, nonvoting representative, the chief executive officer of the Railbelt Reliability Council (RRC) or his designee. The RTO is subject to the jurisdiction of the Regulatory Commission of Alaska (RCA) and is required to apply for a certificate under AS 42.05.221 on or before December 31, 2024 and to file an OATT to achieve the purposes of AS 44.83.700 - 44.83.720 on or before July 1, 2025. On August 5th, the RCA opened docket U-24-026 to investigate the process for certificating the RTO, which required entities designated to be on the RTO governance committee, including AEA, to file testimony and legal briefs with the RCA and invited the Office of the Attorney General, Regulatory Affairs and Public Advocacy Section (RAPA) to be a party in the docket. AEA joined the RTO Working Group, which was initially comprised of Chugach Electric Association Inc; Matanuska Electric Association, Inc.; the City of Seward d/b/a Seward Electric Systems; and Alaska Electric and Energy Cooperative, Inc., a subsidiary of Homer Electric Association, Inc, to file joint testimony in the docket. On August 20th the RTO Working Group filed a joint legal brief and supporting testimony in compliance with U-24-026(1). On August 28th, the RTO Working Group filed supplemental testimony regarding FERC Order 1920. A hearing was held on September 26th, where witnesses for the RTO Working Group responded to inquiries from the RCA and RAPA. On October 7th, the RCA issued a final order in U-24-026 requiring the RTO to file an application for a certificate using APUC Form PU101 by December 31, 2024 with any waiver requests deemed necessary and supplemented with current copies of the Bradley Lake Alaska Energy Authority Page 2 of 2 Hydroelectric Project governing documents and a listing of contributed funding and contributed resources expended on the creation of the RTO and the certificate application, including the source of those contributions and any agreements on the allocation of ultimate responsibility for the cost of those contributions. The first meeting of the RTO was held at AEA on September 27, 2024, at which draft bylaws were introduced and an update from the RTO Working Group was given. AEA is working with the Railbelt utilities and the RRC to gather and incorporate comments on the draft bylaws prior to the next RTO meeting scheduled for November 8th. The RTO Working Group held a two-day in person work session at AEA on September 24th and September 25th. The RTO Working Group continues to meet to review the FERC Pro Forma OATT for the purposes of providing recommendations to the RTO for developing and filing its OATT. PAYMENTS RECEIVED LATE FEES RECEIVED INTEREST + LATE FEES ($209,044) $1,301 $94,494 15 TOTAL # OF PPF LOANS $ 27,294.80 0.088% TOTAL # OF DELINQUENT LOANS LOANS DELINQUENT AMOUNT ($) % OF DELINQUENT LOANS ($) Loan Commitments $5,434,143.78 Total Loan Program $40,824,574.66 1 LOAN PROGRAM SUMMARY Outstanding Loans $31,078,261.57 Uncommitted Cash Balance $4,312,169.31 AEA Power Project Fund $31,287,306 - $31,078,262 $93,193 FISCAL YEAR-TO-DATE LOAN PORTFOLIO ACTIVITY (07/01/2024 - 9/30/2024) LOAN ACTIVITY EARNINGS LOAN CATEGORY STARTING BALANCE FUNDS DISBURSED ENDING BALANCE INTEREST RECEIVED LOAN DASHBOARD REPORT For Board Meeting on 10/23/2024 AEA POWER PROJECT LOAN FUND Page 1 TOTAL ($) $2,220,827 $377,472 $739,286 $8,237,050 $17,934,783 $2,058,989 $31,568,405 TRANSMISSION 1 BIOMASS $54,185.52 BIOMASS 1 DIESEL $1,154,893.71 WIND 2 WIND $1,166,237.60 SOLAR 3 TRANSMISSION $1,966,667.00 DIESEL 4 SOLAR $5,845,079.54 HYDRO 4 HYDRO $21,381,341.98 AEA PPF LOANS BY PROJECT TYPE AEA PPF LOANS BY PROJECT TYPE - BALANCE (NEW & OUTSTANDING) PROJECT TYPE # OF PROJECTS PROJECT TYPE BALANCE TOTAL $31,078,262 $490,144 - 15 YUKON-KOYUKUK/U TANA $1,568,845 $490,144 - 3 SOUTHEAST $17,934,783 - - 1 RAILBELT $8,237,050 - - 5 - - 1 LOWER YUKO- KUSKOKWIM $739,286 - - 2 AEA POWER PROJECT FUND LOANS BY ENERGY REGION & PROJECT TYPE OUTSTANDING BALANCES & NEW ACTIVITY ENERGY REGION AEA PPF LOAN BALANCE REMAINING LOAN COMMITMENTS NEW APPLICATIONS IN PROCESS # OF AEA PPF LOANS ALEUTIANS $2,220,827 - - 3 BRISTOL BAY $377,472 Page 2 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG $17,358 $9,724 $17,358 $27,082 $988,533 $989,566 1.84% 1.02% 1.84% 2.84% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 July August Power Cost Equalization (PCE) Endowment Fund (Managed by APFC) Reporting of Investment Gain (Loss) by Month and YTD and Fund Balance by Month as of 08/31/2024 Investment Gain (Loss) Monthly Investment Gain (Loss) YTD Fund Balance 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG MEMORANDUM TO: Board of Directors THROUGH: Curtis W. Thayer, Executive Director FROM: Tim Sandstrom, Chhief Operating Officer DATE: October 22, 2024 SUBJECT: Rural Programs Update AEA Active Rural Projects RPSU / BFU Projects There are 23 active Bulk Fuel Upgrades (BFU) projects. The average cost of a full BFU project is $11 million. There is over $1 billion dollars in unmet funding need for BFU projects. The BFU program upgrades non-compliant bulk fuel tank farms in rural communities. This project reduces the cost of energy by reducing or eliminating fuel loss from leaks, spills, or catastrophic failure. By providing enough capacity for current and planned needs, communities may purchase fuel in larger quantities at a lower cost per gallon. Projects ensure facilities meet code compliance standards improving life, health, and safety of the community. There are 40 active Rural Power System Upgrades (RPSU) projects. The average RPSU project costs $6 million. There is over $300 million in unmet funding need for RPSU projects. Electric utility systems are essential infrastructure in rural communities. New power systems are designed to meet accepted utility standards for safety, reliability, and environmental protections. As funding availability diminishes, emphasis on maintenance, improvement projects, training for operations, and planned maintenance have become critical. Circuit Rider Training Circuit Riders travelled to Napaskiak (2), Port Heiden, Teller, and Akhiok providing inspections, electrical utility training, bulk fuel operator training and technical assistance. Emergency Response There were no emergency reponses in September 2024 Alaska Energy Authority Page 2 of 2 $46,600,000$46,500,000 Active Projects Total Budgeted BFU RPSU 4 7 Number of PMs Rural Projects Other Projects 813 West Northern Lights Boulevard, Anchorage, Alaska 99503 T 907.771.3000 Toll Free 888.300.8534 F 907.771.3044 REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG DATE: October 8, 2024 TO: Curtis Thayer, Executive Director FROM: Audrey Alstrom, Director – Renewable Energy and Energy Efficiency SUBJECT: Renewable Energy and Energy Efficiency (REEE) Program Update REEE General Update The REEE team oversees most renewable energy projects for the Alaska Energy Authority (AEA). The REEE team manages 4 biomass, 4 energy storage, 2 geothermal, 7 hydroelectric, 7 solar, and 24 wind projects that receive funding under the Renewable Energy Fund (REF). Additionally, the REEE team manages 19 projects funded by state, federal, or other funds. The REEE team is also responsible for the program management of each of the technology programs including Biomass, Electric Vehicles, Energy Efficiency and State Energy Program (SEP), Energy Storage, Geothermal, Hydroelectric and Hydrokinetic, Hydrogen, Nuclear, Solar, and Wind. Programmatic activity summaries and project updates are following. Biomass The Biomass Program continues to help develop biomass energy projects in Alaska that focus on utilizing organic material as a feedstock that include landfill gas to energy projects, community scale district heating loops, and combined heat and power. The program receives funding through State appropriation, the United States Department of Agriculture – Forest Service Wood Innovations Grant (WIG), and the Denali Commission. AEA staff serves as the co- chair of the Alaska Biomass Energy Working Group, formerly the Alaska Wood Energy Development Task Group, and conducts prefeasibility studies, system design, technical assistance, operator training, and outreach. Through the 2022 USFS WIG, AEA staff provided operations and maintenance training to over 25 cordwood boiler operators across the state in the fall of 2024 and is planning to expand its training program to include woodchip and pellet systems. The program is currently exploring sustainable fuels production like sustainable aviation fuel and renewable diesel in partnership with the Alaska Department of Transportation and Public Facilities and the Alaska Department of Natural Resources. Biomass Federal Funding: 2019 United States Forest Service (USFS)- Wood Innovations Grant Alaska Energy Authority Page 2 of 12 Scope: Pre-feasibility studies, design grants, construction, and coordination with the Alaska Biomass Energy Working Group. Budget: Federal – $310,000; State – $155,000 2022 USFS – Wood Innovations Grant Scope: Provide operator training, technical assistance, and O&M training. Budget: Federal – $112,500; State – $112,500 Denali Commission: Craig High School Biomass Chip System Scope: Design and construct a woodchip heating system at the Craig City High School Budget: Federal - $640,417; State - $82,316; Community Match - $1,255,000 Electric Vehicles AEA continues to progress the National Electric Vehicle Infrastructure (NEVI) program in collaboration with the Alaska Department of Transportation and Public Facilities (DOT&PF). This initiative allocates $52 million for Alaska over the next five years to construct EV charging stations along highway corridors, bolstering the nationwide EV charging network. AEA and DOT&PF are in the final stages of solidifying project agreements with nine selected site hosts along the Alternative Fuel Corridor (AFC) linking Anchorage and Fairbanks. AEA submitted the FY25 NEVI plan to the Joint Office of Energy and Transportation, a prerequisite set by the Federal Highway Administration (FHWA) for formula funds. AEA is actively engaged in introducing EV infrastructure across rural Alaska, leveraging funding from the Department of Energy (DOE), Vehicle Technologies Office. This $1.67 million competitive award aims to deploy charging stations, conduct outreach activities, and provide operations and maintenance training to site hosts. AEA is actively seeking community partners to partake in this initiative. AEA leads the Alaska Electric Vehicle Working Group (AKEVWG), convening quarterly for working group meetings and monthly for technical sessions. Recent meetings have covered a range of topics, including: Adoption Trends and Winter Data, Utility Round Table discussions, Southeast NEVI Plan Outreach Update, Drive Ohio's Construction and Opening of the First NEVI- Funded Sites, and a Review of the FY2025 Alaska NEVI Plan. This group serves as a conduit for disseminating information on ongoing funding opportunities and project updates to the public and program stakeholders. In addition to regular working group activities, AEA will conduct in- person outreach sessions in Tok, Valdez, Cordova, Delta Junction and Sitka in 2025 to gather feedback for the deployment of NEVI program funds beyond the AFC. Alaska Energy Authority Page 3 of 12 Utilizing$1.2 million of Volkswagen Environmental Mitigation Trust (Trust) funds, the DOE State Energy Program funds, and private matching funds from site hosts, AEA installed 15 fast chargers and eight level two electric vehicle (EV) chargers at nine stations connecting Seward and Homer to Healy. All these Volkswagen sites are commissioned. Additionally, AEA is partnering with the Southeast Conference to provide funding for Level 2 chargers throughout southeast Alaska using Trust funds. Electric Vehicle Funding: Alaska Rural EVSE Deployment (Department of Energy, Vehicle Technologies Office) Scope: Conduct outreach for potential EV charging sites across rural Alaska, train site hosts on EVSE maintenance, implement EVSE sites across rural Alaska. Budget: $2,087,479 National Electric Vehicle Infrastructure – Phase 1 (US DOT Federal Highway Administration) Scope: Construct EV fast-charging stations along highway corridors, to bolster the nationwide EV charging network per 23 CFR 680 equipment requirements. Budget: $52,415,294 Volkswagen Environmental Mitigation Trust Scope: Install Level 3 fast chargers along the Railbelt and Level 2 chargers in Southeast Alaska. Budget: $1,200,000 Energy Efficiency and State Energy Program (SEP) AEA’s Energy Efficiency Program improves energy efficiency across the state through various means. It is funded annually through the federal SEP, sharing revenue 50/50 with the Alaska Housing Finance Corporation (AHFC). AEA works with partners to provide technical assistance, outreach and education, and funding throughout the state. The REEE team continues to be involved and host quarterly meetings for the Alaska Energy Efficiency (AEE) Partnership. At these meetings participants have a chance to share and receive project updates. The AEE Partnership is a stakeholder group that consists of over 50 public, private, and non-profit entities from around Alaska working together toward a shared vision of Alaska someday becoming the most energy-efficient state in the nation. Through the Infrastructure Investment and Jobs Act (IIJA), AEA received one-time additional SEP funds of $3.6 million. AEA is sharing a portion of the funds with AHFC to support their work. AEA’s share of funds supports program development, outreach and education, and projects. The Alaska Energy Authority Page 4 of 12 funds supported the SEP: State Energy Security Plan (SESP) and the Governor’s Alaska Energy Security Task Force Report. After reviewing Alaska’s SESP, the DOE determined that it met all six elements mandated by Congress and recently, AEA submitted Alaska’s SESP Governor’s Certification Letter signed by Governor Dunleavy for FY25 indicating the SESP has been reviewed and no changes are necessary, as required by Section 40108 of IIJA. This allows AEA to continue receiving SEP funds. The Task Force concluded in the fall of 2023. Since its release, the Alaska Energy Security Task Force Report (Report) has been shared with legislators, and AEA staff have worked on a series of activities related to recommended action items as set forth in the Report. Ultimately, Alaska will have an updated State Energy Plan that will create action items for the governor, legislators, other decision-makers, potential funders, economic development associations, etc., to follow through on for policy and project development. AEA also received Energy Efficiency and Conservation Block Grant (EECBG) funds through IIJA to help support RE-VEEP. RE-VEEP is an expansion of the Village Energy Efficiency Program (VEEP), established to reduce per capita consumption through energy efficiency. RE-VEEP will provide eligible local governments with funding to support building-scale renewable energy, energy efficiency, and conservation projects in public buildings and facilities in rural Alaska. After two rounds of solicitation, AEA intends to sub-award about 86% of our total EECBG grant to fund eight RE-VEEP projects. Lastly, the Energy Efficiency Program has applied for, or is in the middle of applying to, other efficiency and conservation funds through IIJA or the Inflation Reduction Act (IRA). These funds will support the program by providing grants, rebates, technical assistance, training and education to Alaskans. Some funds will be in partnership with AHFC. To date, AEA has received about $1.8 million in early administrative funding for Home Efficiency and Home Electrification and Appliances Rebates and passed through a portion of these funds to AHFC to prepare for the deployment of Alaska’s Home Energy Rebate program. Now, AEA and AHFC are working together to complete the full grant applications by the January 2025 deadline. AEA and AHFC also collaborated to submit an application for Alaska’s formula Training for Residential Energy Contractors grant. AEA anticipates being awarded these funds in 2025. EE Funding: FY25 SEP Annual Formula Scope: Program management and development, outreach and education, building monitoring, data management & analysis, rater and inspector training Budget: Federal - $480,580 (shared 50/50 with AHFC) Alaska Energy Authority Page 5 of 12 SEP-BIL Alaska Scope: Energy construction projects, energy program development, energy security plan development, training and workforce development, outreach and education, grid planning, state energy plan, AKWarm Budget: Federal - $3,661,930 (shared with AHFC) EECBG Scope: Sub-grants to eligible local governments within Alaska to finance building-scale renewable energy, energy efficiency, and conservation projects in public buildings and facilities located in rural Alaska. Budget: Federal - $1,627,450 Home Efficiency Rebates (early administrative): Scope: Rebates to finance single and multifamily energy-efficient home retrofits. Early administrative funds will be used to prepare for the deployment of Alaska’s Home Energy Rebates program. Budget: Federal - $934,127.96 Home Electrification and Appliances Rebates (early administrative): Scope: Rebates to finance high-efficiency electric projects and appliances in single-family and multifamily buildings. Early administrative funds will be used to prepare for the deployment of Alaska’s Home Energy Rebates program. Budget: Federal - $928,655.94 EE Potential Funding: Homes Efficiency Rebates Program Formula Scope: Strategic planning, workforce development, consumer outreach and education, administration, rebate program implementation. Budget: Federal - $934,169.10 (early admin funds - awarded); $37,293,071 (total), pass thru to AHFC Home Electrification and Appliance Rebate Formula Scope: Strategic planning, workforce development, coordinating program delivery, consumer outreach & education, administration, and rebate program implementation. Budget: Federal - $934,169.10 (early admin funds-awarded); $37,150,940 (total), pass thru to AHFC Alaska Energy Authority Page 6 of 12 Training Residential Energy Contractors - Formula Scope: Supplement existing workforce development programs and create new workforce programs to (1) reduce the cost of training contractor employees; (2) provide testing and certification to contractors who are training and educated under a state program; and (3) partner with nonprofit organizations to develop and implement a state program that will achieve these goals. Budget: Federal - $1,296,870, pass thru to AHFC Training Residential Energy Contractors – Competitive Scope: Extend the scope of Training Residential Energy Contractor – Formula. Budget: Federal - $2,000,000, pass thru to AHFC Hydroelectric The Hydroelectric Program manages small hydro projects on behalf of AEA and provides statewide resource for hydroelectric technical assistance by maintaining an existing potential hydroelectric site database for communities to use, collecting active hydroelectric project data, providing grant funding for feasibility and construction of projects as funding allows, technically review and providing feedback on engineering reports, assist in identifying project financing opportunities, and answer community questions on hydroelectric project development. The REEE group was selected to be a 2024 DOE-sponsored Clean Energy Innovator Fellowship (CEIF) Host Institution, and our Fellow started in September 2024. The Fellow is helping the REEE Hydro Program update the hydroelectric database. Currently, six hydroelectric and two energy recovery or hydrokinetic-type projects are active. AEA supported planning the 2024 National Hydropower Association (NHA) Alaska Regional Meeting. Solar AEA is presently managing six solar PV or Solar PV & BESS projects through the Renewable Energy Fund and has continued participating in the National Community Solar Partnership (NCSP), which has sponsored collaborative meetings and work sessions with partners across the nation. In spring 2024, the U.S. Environmental Protection Agency (EPA) notified AEA and AHFC that the coalition application for a Greenhouse Gas Reduction Fund Solar for All (SFA) grant was selected for a $62.45 million award. The grant will aim to provide sub-grants, loans, or other forms of financial assistance, as well as technical assistance, to deploy residential rooftop and residential- Alaska Energy Authority Page 7 of 12 serving community solar projects in and benefiting low-income and disadvantaged communities (LIDACs). The SFA award was accepted by the AEA Board of Directors on September 10, 2024 by the adoption of Resolution 2024-09. AEA, in partnership with AHFC, will implement community and residential solar programs to benefit low-income and disadvantaged households. AEA and AHFC will also support localized maintenance strategies and maintenance and installation workforce development programs for solar photovoltaic (PV) systems and Solar PV microgrid systems including energy storage. AEA and AHFC have been working with the EPA project officer to draft the final SFA workplan and budget, with an official draft to be tendered in October 2024, according to the schedule put forth by the EPA. Applications to AHFC’s residential solar program are scheduled to start as early as May of 2025, with AEA expecting to accept between five and eight community solar applications later in the summer of 2025. Solar Pending Funding: EPA Solar for All Scope: Residential rooftop solar and community solar for disadvantaged communities Budget: Federal - $62,450,000 Wind Currently, AEA's Wind Program is driving 25 active wind projects forward, most of which have received funding from REF. This diverse portfolio encompasses communities across the state, featuring initiatives such as Railbelt and rural wind feasibility studies, rural turbine blade retrofits, and LiDAR deployments. In addition to project work, AEA continues to facilitate public outreach and engagement through the Alaska Wind Working Group (AKWWG). Other REEE staff participate in the Alaska Hydrogen Working Group, which discusses the potential adoption of hydrogen power technologies, barriers to hydrogen adoption, and use cases around the state for both the production and consumption of hydrogen and hydrogen-based fuels. In all, the aim of the Hydrogen Working Group is to develop and facilitate the implementation of a hydrogen roadmap to prepare our state for participation in the hydrogen economy. This quarter’s meeting was jointly hosted alongside the Carbon Capture, Utilization and Sequestration (CCUS) working group – another that is attended by AEA staff. The intent of this joint meeting was to allow for consideration of overlaps between exploration and development of hydrogen or carbon geologic storage options. Additional exploration of reinjection Alaska Energy Authority Page 8 of 12 technologies and reservoir analysis specifically around this topic is likely in coming years, given that Alaska has recently received its Class VI primacy – reducing the burden for new work to be done in that field within the state. AEA is also an active participant in the nationwide NASEO/NARUC Advanced Nuclear State Collaborative and state Alaska Nuclear Energy Working Group. REEE staff have attended and contributed to these monthly meetings focused on developing a nuclear roadmap for the state and identifying opportunities for community engagement surrounding nuclear technology. Lastly, the REEE team manages other special projects on behalf of AEA. These projects, and all others, can be found in the following table. Alaska Energy Authority Page 9 of 12 Technology Project Title Grantee Budget BESS Kotzebue Energy Storage - Design Kotzebue Electric Association $ 325,000 BESS Kotzebue Community Scale Energy Storage & Inertia Kotzebue Electric Association $ 3,675,000 BESS Nome Battery Energy Storage System Nome Joint Utility System $ 2,000,000 BESS Pilot Point BESS City of Pilot Point $ 423,599 Biomass DC Craig High School Biomass Project Craig City School District $ 522,457 Biomass AEEC/KPB CPL Landfill Gas CHP Project Alaska Electric & Energy Cooperative, Inc. $ 884,986 Biomass AEEC/KPB CPL Landfill Gas CHP Project Alaska Electric & Energy Cooperative, Inc. $ 1,115,014 Biomass Woodchip Heating Project Native Village of Kluti-Kaah $ 500,000 Biomass Northway School Wood Chip Biomass - Construction Alaska Gateway School District $ 650,000 Biomass Southeast Island School District Biomass Project Updates Southeast Island School District $ 122,000 EV Southeast Conference EVSE Southeast Conference $ 125,188 Geothermal Augustine Geothermal Feasibility Alaska Electric & Energy Cooperative, Inc. $ 68,000 Geothermal Mt. Spurr Geothermal Feasibility Alaska Electric & Energy Cooperative, Inc. $ 45,500 Heat Recovery Shungnak Heat Recovery - Design/Construction City of Shungnak $ 1,303,607 Hydro Fivemile Creek Hydroelectric Project Chitina Electric Inc. $ 6,861,824 Hydro Thayer lake Hydroelectric Project Kootznoowoo Incorporated $ 8,055,717 Hydro Water Supply Creek Hydro - Final Design Inside Passage Electric Cooperative $ 4,000,000 Hydro Cordova Hydro Storage Assessment - Feasibility Cordova Electric Cooperative, Inc. $ 294,642 Hydro UNGA Man Creek Hydroelectric Project City of False Pass $ 321,000 Hydro Homer Energy Recovery Project City of Homer $ 79,500 Hydro ADAK Hydro - Feasibility & Conceptual Design TDC Adak Generating LLC $ 497,650 Hydro Littoral Power Systems Hydrokinetic Project Littoral Power Systems, Inc. $ 79,133 RE-VEEP Chignik RE-VEEP Project City of Chignik $ 122,033 RE-VEEP Unalaska RE-VEEP Project City of Unalaska $ 169,308 RE-VEEP Whittier RE-VEEP Project City of Whittier $ 53,500 Alaska Energy Authority Page 10 of 12 RE-VEEP Lake and Peninsula Borough RE- VEEP Project – Round 2 Lake and Peninsula Borough $ 275,000.01 RE-VEEP Nenana Community Civic Center Energy Efficiency Upgrades City of Nenana $ 292,459 RE-VEEP Nenana Community Recreation Hall Energy Efficiency Project City of Nenana $ 114,625 RE-VEEP Seldovia RE-VEEP Project – Round 2 City of Seldovia $ 104,600 RE-VEEP Kachemak RE-VEEP Project – Round 2 City of Kachemak $ 263,796 RE-VEEP Unalaska RE-VEEP Project – Round 2 City of Unalaska $ 200,000 SEP State Energy Security Plan-IIJA SEP Multiple $ 359,655 Solar Design and Permitting for Solar PV and Battery Storage Northwest Arctic Borough $ 590,000 Solar Galena Community Scale Solar PV and Battery Project City of Galena $ 2,000,000 Solar Selawik Solar PV Array Northwest Arctic Borough $ 1,134,500 Solar Huslia Community Scale PV & Battery Tanana Chiefs Conference $ 2,082,000 Solar Ruby Community PV & Battery Tanana Chiefs Conference $2,008,113 Solar Iguigig Tribal Solar Igiugig Village Council $1,723,709 Solar Kenai Peninsula Solar Farm Solstice Energy LLC $2,000,000 Special AK Air Cargo - DOT Build Grant - Energy Efficiency #N/A $ 189,834 Special Port Electrification - Whittier - State funds Multiple $ 5,000,000 Special GVEA Black Rapids Line Extension Golden Valley Electric Association $ 12,787,565 Special GVEA Three-Phase Ext.-Grant to Named Recip Golden Valley Electric Association $ 3,025,000 Special EETF-Grid Bridging Sys. Research, Devel, & Demo Alaska Village Electric Cooperative, Inc. $ 250,000 Special START Communities Technical Assistance Village of Kake $ 355,530 VEEP Angoon City of Angoon $ 36,000 VEEP Beaver Beaver Village Council $ 18,000 VEEP Buckland City of Buckland $ 21,214 VEEP Chalkyitsik Chalkyitsik Village $ 30,000 VEEP Gakona Native Village of Gakona $ 152,412 VEEP Galena City of Galena $ 270,000 Alaska Energy Authority Page 11 of 12 VEEP Nenana Nenana City School District $ 255,467 VEEP Shishmaref City of Shishmaref $ 44,320 VEEP St George City of St. George $ 130,000 VEEP St Michael City of St. Michael $ 31,310 Wind Renewable Resource Assessment North Cook Inlet Region, Inc. $ 298,000 Wind Renewable Resource Assessment South Cook Inlet Region, Inc. $ 298,000 Wind Goodnews Bay Wind - Feasibility Alaska Village Electric Cooperative, Inc. $ 128,250 Wind Kotlik Wind - Feasibility Alaska Village Electric Cooperative, Inc. $ 237,500 Wind Naknek Wind and Solar - Feasibility Naknek Electric Association, Inc. $ 103,500 Wind Unalaska Wind - Feasibility City of Unalaska $ 139,000 Wind Airfoil for Wind Turbines - Construction Puvurnaq Power Company $ 108,000 Wind Akiachak Wind Feasibility Akiachak Native Community Electric Company $ 371,446 Wind Interior Alaska Wind Energy Resource Assessment Golden Valley Electric Association $ 1,105,248 Wind Kongiganak Wind Upg w Airfoil Blades for Turbines Puvurnaq Power Company $ 279,063 Wind Kotzebue Wind to PV Transition Utilizing Exist Str Kotzebue Electric Association $ 1,900,000 Wind Kotzebue Wind to Heat System City of Kotzebue $ 702,782 Wind Kwigillingok Wind Turbine Upgrade Kwig Power Company $ 279,112 Wind AEEC East Foreland/Nikiski Wind Alaska Electric & Energy Cooperative Inc. $ 200,000 Wind AEEC Ninilchik Wind Alaska Electric & Energy Cooperative, Inc. $ 192,000 Wind AEEC Caribou Hills Wind Alaska Electric & Energy Cooperative, Inc. $ 209,600 Wind Ouzinkie Wind Energy Feasibility and Concept Des City of Ouzinkie $ 172,897 Wind Pilot Station Wind Energy Feasibility & Conc Des Alaska Village Electric Cooperative, Inc. $ 229,624 Wind AEEC Summit Lake Wind Alaska Electric & Energy Cooperative, Inc. $ 232,000 Wind Kwinhagak Reconnaissance Study Native Village of Kwinhagak $ 81,000 Wind Railbelt Wind Feasibility Study & Concept Design Matanuska Electric Association $ 1,833,333 Wind Kalskag Wind Feasibility & Concept Design Alaska Village Electric Cooperative, Inc. $ 267,300 Wind Utility-Scale Railbelt Wind Alaska Renewables, LLC $ 1,980,807 Alaska Energy Authority Page 12 of 12 Wind Cook Inlet Oil Platform Wind Project Alaska Electric & Energy Cooperative, Inc. $ 214,400 Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 This page intentionally left blank. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 i Table of Contents 1.0 Introduction ................................................................................................................................... 1 2.0 Protection, Mitigation, and Enhancement Measures ........................................................... 4 2.1 Year-Round Instream Flows ............................................................................................................ 4 2.1.1 Eklutna River Release Facility..................................................................................................... 4 2.1.2 Default Year-Round Instream Flow Regime .......................................................................... 6 2.2 Channel Maintenance Flows ........................................................................................................... 7 2.2.1 Existing Outlet Gate ....................................................................................................................... 7 2.2.2 Channel Maintenance Flow Regime ......................................................................................... 8 2.3 Flow Monitoring ................................................................................................................................ 10 2.4 AWWU Bridges ................................................................................................................................ 10 2.5 Recreation ........................................................................................................................................... 11 2.5.1 Lakeside Trail Repairs ................................................................................................................ 11 2.5.2 Annual Powerhouse Maintenance ......................................................................................... 11 2.5.3 Public Access to the Eklutna River ......................................................................................... 11 3.0 Monitoring and Adaptive Management Plan ...................................................................... 12 3.1 Committee .......................................................................................................................................... 12 3.2 Monitoring ........................................................................................................................................... 12 3.3 Adaptive Management ................................................................................................................... 13 3.3.1 Water Budget ............................................................................................................................... 13 3.3.2 Water Banking.............................................................................................................................. 13 3.3.3 Allocation of Additional Inflow ............................................................................................... 13 3.3.4 Water Accounting Report ......................................................................................................... 14 3.3.5 Requests to Modify the Flow Regime ................................................................................... 14 3.3.6 Physical Habitat Enhancement ............................................................................................... 14 3.4 Annual Meeting ................................................................................................................................. 15 4.0 Limited Reopeners .................................................................................................................... 16 4.1 Fixed Wheel Gate............................................................................................................................. 16 4.2 Fish Passage ...................................................................................................................................... 17 5.0 Funding Commitments and Inflation Adjustment ............................................................. 20 Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 ii List of Tables Table 2-1. Default Year-Round Instream Flow Regime. ........................................................................... 6 Table 2-2. Default Channel Maintenance Flow Releases. ........................................................................ 8 List of Figures Figure 1-1. Existing and Proposed Infrastructure. ....................................................................................... 3 Figure 2-1. Default Year-Round Instream Flow Regime. .......................................................................... 7 Figure 2-2. Default Channel Maintenance Flow Releases. ...................................................................... 9 Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 iii Terms, Acronyms, and Abbreviations 1991 Agreement 1991 Fish and Wildlife Agreement ADEC Alaska Department of Environmental Conservation ADFG Alaska Department of Fish and Game ADNR Alaska Department of Natural Resources AEA Alaska Energy Authority AWWU Anchorage Water and Wastewater Utility cfs cubic feet per second Draft Program Draft Fish and Wildlife Program fish and wildlife measures PME measures for fish and wildlife Final Program Final Fish and Wildlife Program Governor Governor of Alaska mgd million gallons per day MW megawatt NMFS National Marine Fisheries Service NVE Native Village of Eklutna Parties Chugach, MEA, MOA, NMFS, USFWS, and the State of Alaska PME measures protection, mitigation, and enhancement measures Project Eklutna Hydroelectric Project Project Owners Chugach, MEA, and MOA Proposed Final Program Proposed Final Fish and Wildlife Program USFWS U.S. Fish and Wildlife Service Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 1 1.0 Introduction The Eklutna Hydroelectric Project (Project) is located in Southcentral Alaska, approximately 30 miles northeast of downtown Anchorage near the Native Village of Eklutna (NVE). The federal government completed construction of the Project in 1955. Decades later, Chugach Electric Association, Matanuska Electric Association, and the Municipality of Anchorage (collectively the “Project Owners”) agreed to purchase the Project and entered into a Purchase Agreement with the federal government in 1989. Shortly thereafter, concerns were raised about the Project’s potential impacts on fish and wildlife. This led to the execution of a binding agreement in 1991 (referred to as the “1991 Agreement”) amongst the Project Owners, National Marine Fisheries Service (NMFS), U.S. Fish and Wildlife Service (USFWS), and the State of Alaska (collectively the “Parties”) that requires the Project Owners to (1) study the Project’s impacts to fish and wildlife, (2) develop proposals for the protection, mitigation, and enhancement of fish and wildlife affected by the development of the Project, (3) consider the impact of fish and wildlife measures on electric rate payers, municipal water utilities, recreational users and adjacent land use, and (4) identify available means to mitigate these impacts. The Project Owners must repeat this process every 35 years and it replaces regulation by the Federal Energy Regulatory Commission. The sale of the Project was authorized by U.S. Congress in 1995, and the Project was sold to the Project Owners in October 1997. Per the 1991 Agreement, the Project Owners were required to initiate this process no later than 25 years after the sale of the Project. Since the Project was sold in October 1997, the Project Owners were not required to initiate this process until October 2022. However, in order to allow adequate time for a comprehensive analysis, the Project Owners initiated the process in March 2019, more than three years early. After several years of study and consultation with all interested stakeholders detailed in the Supporting Information Document, the Project Owners issued a Draft Fish and Wildlife Program (Draft Program) as required in the 1991 Agreement in October 2023. The Project Owners met with the Parties and the Native Village of Eklutna several times from December 2023 through March 2024 to attempt to resolve differences. They also held six public meetings in January 2024 to solicit public comments. After considering all comments received, and giving due weight to the recommendations and expertise of the Parties and the Native Village of Eklutna, the Project Owners have developed this Proposed Final Fish and Wildlife Program (Proposed Final Program) for submittal to the Governor. Accordingly, the Project Owners are excited for the next phase of the Project. Details of the Proposed Final Program are described in subsequent sections and include the following: Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 2 • Construction of the Eklutna River Release Facility and establishment of year-round instream flows in the Eklutna River; • Automation of the existing outlet gate at the dam to provide periodic channel maintenance flows in the Eklutna River; • Construction of eight new bridges along the Anchorage Water and Wastewater Utility (AWWU) access road to enable AWWU’s access to critical infrastructure year-round following the establishment of instream flows; • Payment to Chugach State Park for lakeside trail repairs; • Establishment of a Committee to oversee implementation of the Monitoring and Adaptive Management Plan; • Funding to conduct monitoring studies in the Eklutna River throughout the 35-year program; • Funding for physical habitat enhancement in the Eklutna River based on the monitoring results; • Procedures for the Committee to adaptively manage the flow regime in the Eklutna River based on the monitoring results; • Provisions for banking water in Eklutna Lake and potentially increasing the water budget for instream flows in the future; • Potential installation of a fixed wheel gate to accommodate higher inflows in the future and/or allow higher channel maintenance flows if needed; and • Potential installation of upstream and downstream fish passage facilities that meet specific criteria. Approval of the Proposed Final Program will enable the Project Owners to implement these significant fish and wildlife measures at the Project, while simultaneously protecting the municipal water supply and continuing to provide low cost, renewable energy to Southcentral Alaska. The Project Owners anticipate the Governor’s issuance of a Final Fish and Wildlife Program by October 2024. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 3 Figure 1-1. Existing and Proposed Infrastructure. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 4 2.0 Protection, Mitigation, and Enhancement Measures The Project Owners will continue to operate the Project in a manner consistent with the current operating procedures. In addition, The Project Owners will implement the following protection, mitigation, and enhancement (PME) measures for fish and wildlife habitat, the municipal water supply, and recreational facilities. 2.1 Year-Round Instream Flows 2.1.1 Eklutna River Release Facility In order to provide year-round instream flows to the Eklutna River for fish and wildlife habitat, the Project Owners will construct a new valve and release structure located adjacent to the existing Anchorage Water and Wastewater Utility (AWWU) portal valve approximately one mile downstream of Eklutna Dam. The proposed infrastructure, referred to as the Eklutna River Release Facility, will consist of a tee off the existing 54-inch pipeline that conveys water from Eklutna Lake as part of AWWU’s Eklutna Water Project and new control valves to bypass water into the Eklutna River. The 30% design drawings for the Eklutna River Release Facility are provided in the Supporting Information Document. The infrastructure included as part of the 30% level of design for the Eklutna River Release Facility is as follows: • Construction of a new isolation gate structure immediately upstream of the AWWU portal valve shaft; • Replacement of approximately 25-ft of existing pipeline with a newly fabricated steel 54-inch x 42-inch tee; • Installation of a 54-inch gate valve on the main segment of pipe intended to provide dual means of isolation for AWWU’s pipeline segment P-4; • Installation of a 42-inch gate valve on the branch segment intended to provide isolation to the river release structure; • Installation of a draining and filling system around each isolation valve; • Installation of a pressure monitoring system and flow meter to provide dual redundancy to AWWU’s portal release valve facility; • Construction of a new river release structure approximately 30-ft downstream of the isolation gate structure; Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 5 • Installation of a 30-inch sleeve valve or alternative energy dissipation valve to control flow into the Eklutna River; • Installation of a flow monitoring system to monitor flow releases into the Eklutna River; • Construction of a bypass channel from the river release structure to the Eklutna River; and • Upgrades to communication infrastructure to provide direct communication between the Eklutna River Release Facility, AWWU portal valve shaft, AWWU intake valve shaft, Eklutna Water Treatment Facility, and the Eklutna Power Plant. The addition of this release facility on the existing Eklutna Water Project will not reduce or impact flow available for water supply purposes, as required by state law. Flow releases through the facility will be limited to a maximum of 80 cfs to protect the AWWU valves and pipeline. The closure rate of the proposed river release valve will be set to keep transient pressures within the rating of the lake diversion tunnel and AWWU pipeline. Additional instrumentation including new flow meters and pressure transducers will be installed to monitor the new facility and protect AWWU infrastructure in the event of an emergency. The current design allows the AWWU pipeline to be dewatered for maintenance, and in the event of a pipeline rupture, it allows for emergency closure at the AWWU portal valve, in both cases allowing continued operation of the Eklutna River Release Facility. Any maintenance activities that may be required to replace the intake valve shaft will be planned for the fall when the lake level is high and instream flows can be released through the existing outlet gate at the dam. The Project Owners have closely coordinated with AWWU throughout the preliminary design of the Eklutna River Release Facility and will obtain AWWU approval on all final designs related to AWWU infrastructure. The Project Owners and AWWU have also discussed the water transportation services, compensation, and water rights issues that need to be resolved in order to utilize AWWU infrastructure for providing instream flows to the Eklutna River. A summary of proposed arrangements with AWWU is set forth in the Supporting Information Document. Upon the Governor’s approval, the Project Owners will enter into long-term agreements with AWWU following, and subject to, all necessary approvals. If such approvals are delayed or are not able to be obtained, the Project Owners will continue with the other PME measures outlined in this program to the degree possible. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 6 2.1.2 Default Year-Round Instream Flow Regime Once construction is complete, the Project Owners will utilize the existing Project intake, excess capacity in the AWWU tunnel, and new Eklutna River Release Facility to provide year- round instream flows to approximately 11 out of 12 miles of the Eklutna River. The default year-round instream flow regime, shown in Table 2-1 and Figure 2-1, varies seasonally and was developed based on field studies and modeling. Table 2-1. Default Year-Round Instream Flow Regime. Month Flow (cfs) Volume (acre-feet) January 27 1,660 February 27 1,500 March 27 1,660 April 27 1,607 May 34 2,060 June 40 2,380 July 40 2,460 August 40 2,460 September 40 2,380 October 40 2,460 November 34 1,993 December 27 1,660 Total - 24,280 Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 7 Figure 2-1. Default Year-Round Instream Flow Regime. The default winter flow releases (27 cfs) when combined with natural accretion in the Eklutna River should promote favorable ice conditions to protect redds during incubation and provide overwintering habitat for juvenile salmon in the Eklutna River. The default summer flow releases (40 cfs) when combined with natural accretion in the Eklutna River should (1) significantly increase the available spawning habitat for Chinook, coho, pink, and chum salmon, (2) provide sufficient flows for migrating adult salmon to navigate the potential upstream passage barriers identified in the confined canyon reach, and 3) provide additional rearing habitat for salmon. The default November flow releases (34 cfs) reflect a downramping rate of less than 1 to 2 inches per hour to reduce the risk of any fish stranding downstream when transitioning from summer flows to winter flows. The total volume of water to be released annually from Eklutna Lake into the Eklutna River for year-round base flows is 24,280 acre-ft/yr, equivalent to approximately 10% of the average annual inflow to the lake. 2.2 Channel Maintenance Flows 2.2.1 Existing Outlet Gate In order to provide periodic channel maintenance flows to the Eklutna River, the Project Owners will automate the existing outlet gate within the base of the spillway at Eklutna Dam so that it can be controlled remotely. The 30% design drawings for automating the gate are Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 8 provided in the Supporting Documentation Document. The infrastructure included as part of the 30% level of design for automating the existing outlet gate is as follows: • Replacement of existing manual actuator for the dam outlet gate with electric motor actuator with position sensing; • Construction of new access platform and stilling well with level transducer to measure water surface elevation in Eklutna Lake; and • Installation of 0.5 miles of new buried power line from Eklutna Lake Road to the dam. The 30-inch by 30-inch outlet gate has a maximum capacity of approximately 190 cfs at the normal maximum water surface elevation of El 871.0 ft. 2.2.2 Channel Maintenance Flow Regime Once year-round instream flows have been established in the Eklutna River and the existing outlet gate has been automated, the Project Owners will use both the Eklutna River Release Facility and the automated outlet gate to provide periodic channel maintenance flows to the Eklutna River. The default channel maintenance flow, shown in Table 2-2 and Figure 2-2, was developed based on field studies, modeling, and peak flow statistics in similar unmanaged Alaskan rivers and is shaped to resemble a natural peak flow hydrograph. Table 2-2. Default Channel Maintenance Flow Releases. Steps Duration (hours) Total Flow (cfs) Base Flow (cfs) Additional Flow (cfs) Additional Volume (acre-feet) 1 3 150 40 110 27 2 3 200 40 160 40 3 36 220 40 180 535 4 12 200 40 160 159 5 6 160 40 120 59 6 6 140 40 100 50 7 6 110 40 70 35 8 6 90 40 50 25 9 6 80 40 40 20 10 6 70 40 30 15 11 4 60 40 20 7 Total for 1 flow 94 - - - 971 Total for 3 flows 282 - - - 2,913 Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 9 Figure 2-2. Default Channel Maintenance Flow Releases. The default channel maintenance flow (peaking at 220 cfs for 36 hours) should complement the base flow regime and help create and maintain channel dimensions and substrate characteristics to support physical fish habitat over the long term. The default downramping schedule (steps 4-11 in Table 2-2) reflects a downramping rate of less than 1 to 2 inches per hour to reduce the risk of any fish stranding downstream when transitioning back to base flows. Channel maintenance flows will be conducted in the fall when the lake level is highest. The default schedule calls for the Project Owners to conduct a channel maintenance flow in years 2, 5, and 8 of each 10-year period. The first 10-year period will start with the first full calendar year after year-round instream flows are established. The total volume of water to be released in a 10-year period from Eklutna Lake into the Eklutna River for channel maintenance flows is 2,913 acre-ft. Any spill event that exceeds 220 cfs for 36 hours will count as one of the required channel maintenance flows for the current 10-year period. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 10 The intent of providing flexibility in scheduling channel maintenance flows is to allow the Project Owners to take advantage of wet water years. If a planned channel maintenance flow coincides with a dry water year, the Project Owners may choose to postpone the channel maintenance flow to a subsequent year in the current 10-year period. However, if it is already the final year in the current 10-year period, then to the extent possible the Project Owners will curtail generation in order to raise the lake level high enough to achieve the desired flow rate. If due to unforeseen circumstances the Project Owners are unable to provide all three channel maintenance flows in any given 10-year period, then the Project Owners will provide the missed channel maintenance flows in the subsequent 10-year period. 2.3 Flow Monitoring In order to monitor the year-round flow releases into the Eklutna River, the Project Owners will install a flow meter on the river release pipeline within the Eklutna River Release Facility. The accuracy of this meter is anticipated to utilize the ultrasonic transit time method and have an accuracy of ±1%. In order to monitor channel maintenance flow releases into the Eklutna River, the Project Owners will utilize the rating curve for the existing outlet gate to calculate flow as a function of gate position and water surface elevation in the reservoir. The gate position will be monitored remotely via a new position feedback sensor within the electric motor operator of the gate. To monitor the water surface elevation of the reservoir, a new stilling well and pressure transducer will be located upstream of the gate within the entrance to the Eklutna Dam spillway channel. The addition of this transducer will avoid any potential inaccuracies with the existing USGS gauge measuring water surface elevation near the Project intake. The flow measurement at the gate is anticipated to have an accuracy of ±2%. 2.4 AWWU Bridges Providing year-round instream flows to the Eklutna River will likely make all of the existing ford crossings along the AWWU access road impassable for most of the year. To mitigate these potential impacts, the Project Owners will construct eight new bridges, one at each of the existing ford crossings to allow AWWU year-round access to the AWWU pipeline for maintenance. The new bridges will be designed to pass the same flows as the two existing AWWU bridges. The existing ford crossings will be removed to prevent anyone from attempting to drive through the riverbed in the future. The 15% design drawings for the new AWWU bridges are provided in the Supporting Information Document. The Project Owners will obtain AWWU approval on all final designs related to AWWU infrastructure and will work with AWWU to obtain all necessary permits and easements as may be necessary. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 11 2.5 Recreation 2.5.1 Lakeside Trail Repairs The Project Owners operate the Project to not spill any water. However, due to various circumstances, spill events have occurred in the past. During past spill events, high lake levels have caused erosion along discrete segments of the lakeside trail. Chugach State Park has received $234,000 in funding for general lakeside trail repairs. Within 120 days of the Governor’s approval or by January 31, 2025, whichever comes later, the Project Owners will provide a one-time payment of $234,000 to Chugach State Park (or another entity as directed by Chugach State Park) for lakeside trail repairs that address erosion impacts. This funding match brings the total budget for lakeside trail repairs to $468,000. State Parks will be responsible for seeking and obtaining approval from Eklutna, Inc. if needed. The Project Owners will not be responsible for funding the repair of any future erosion impacts to the lakeside trail that may result from continued Project operations. 2.5.2 Annual Powerhouse Maintenance The Project Owners conduct annual maintenance activities that require Project shutdown for approximately two weeks every year. In order to avoid having multiple generation assets offline at the same time, the Project Owners coordinate with the other Railbelt utilities when scheduling the annual maintenance shutdown for the Project. In some previous years, this annual maintenance shutdown has coincided with peak fishing times and has had a negative impact on the tailrace fishery. The Project Owners will endeavor to avoid peak fishing times when scheduling the annual maintenance shutdown and any other maintenance activities that would require Project shutdown, taking into consideration the overall system maintenance needs. 2.5.3 Public Access to the Eklutna River There is currently no free, un-permitted public access to most of the Eklutna River. The land under and surrounding the Eklutna River is largely owned by Eklutna, Inc., which requires permits for access to the Eklutna River. The Project Owners are therefore requesting that Eklutna, Inc. provide free, non-permitted public access to the Eklutna River once the ADFG Board of Fisheries has determined that the Eklutna River fishery for Chinook, coho, or sockeye salmon is sustainable and can be opened for recreational fishing. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 12 3.0 Monitoring and Adaptive Management Plan The PME measures described in the previous sections are based on the results of field studies, modeling, and extensive consultation. However, the Project Owners recognize there is some inherent uncertainty in modeling and physical habitat conditions in the Eklutna River will evolve over time. Therefore, the following Monitoring and Adaptive Management Plan will be implemented. This approach allows for flexibility and adjustments to PME measures, if needed. 3.1 Committee Upon the Governor’s issuance of the Final Fish and Wildlife Program, a Monitoring and Adaptive Management Committee (Committee) will be established to execute the Monitoring and Adaptive Management Plan. The Committee will consist of one voting representative from each of the following entities: ADFG, ADNR, NMFS, USFWS, and NVE. The Committee will make decisions through consensus, and the Committee chair will be selected by the members of the Committee. One or more representatives from the Project Owners will serve as non- voting participants on the Committee to provide technical expertise about Project operations. All voting and non-voting representatives named to serve on the Committee should possess the technical expertise necessary to carry out the responsibilities of the Committee and should ideally be local to the Project area. Each entity shall bear all costs for its representative to participate on the Committee. Once the Committee is established, it will develop appropriate evaluation criteria for the Fish and Wildlife Program. These evaluation criteria will help inform monitoring efforts and adaptive management decisions. Decisions made by the Committee shall not be imputed to the Project Owners; implementation of actions pursuant to guidance provided by the Committee shall not create liability to the Project Owners. 3.2 Monitoring The Project Owners will provide a total of $450,000 in April 2024 U.S. dollars (see Section 5.0) to ADFG over the length of the Program to fund additional monitoring efforts in the Eklutna River. The Committee will develop a plan to monitor aquatic habitat conditions and fish utilization in the Eklutna River and the straying rate of hatchery fish from the Eklutna Tailrace to the Eklutna River. The Committee may pursue other funding sources to supplement the monitoring budget if desired. ADFG will implement the monitoring plan based on direction from the Committee and must request funds from the Project Owners by July 1 each year based on the planned monitoring efforts for the subsequent year. The Project Owners will then budget accordingly and submit payment to ADFG by January 31 of the subsequent year. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 13 Reports that summarize the various monitoring results will be prepared by ADFG and provided to the Committee by February 1 each year. The Committee will review and provide a composite report to the Project Owners by March 1 each year. The Committee shall maintain a database/archive for all monitoring results and reports. 3.3 Adaptive Management 3.3.1 Water Budget The total volume of water available for release into the Eklutna River in the first water year (June 1 to May 31) following completion of the Eklutna River Release Facility is 24,280 acre- feet. This is based on the default year-round instream flow regime. An additional 24,280 acre- feet will become available at the beginning of each subsequent water year. An additional 2,913 acre-feet of water will become available at the beginning of each 10-year period, starting the first water year after instream flows are initiated. This is based on the default channel maintenance flow being released three times in each 10-year period. 3.3.2 Water Banking If the entire annual water budget (24,280 acre-feet) is not released into the Eklutna River in a given water year, either intentionally or unintentionally, then that “banked water” can be released in subsequent water years with the following limitations: (1) water can only be banked for up to 5 years, (2) no more than 50% of the total annual water budget can be banked at any given time; and (3) in the event of any unplanned spill event at the Project, banked water is spilled first. The additional water budget for each 10-year period (2,913 acre-feet) must be used within that period and cannot be carried over to the following 10-year period. However, as described in Section 2.2.2, if due to unforeseen circumstances the Project Owners are unable to provide all of the planned channel maintenance flows in any given 10-year period, then the Project Owners will provide the missed channel maintenance flows in the subsequent 10-year period. 3.3.3 Allocation of Additional Inflow Climate change is anticipated to cause increased glacial melt in the coming decades. Increased glacial melt would likely result in more inflow to Eklutna Lake, and therefore more water available for both hydropower generation and instream flows. Because of this, the Project Owners will calculate the inflows to Eklutna Lake each year using the available lake level and flow monitoring data. Then 10 years after instream flows are established, the Project Owners will compare the average annual inflows to Eklutna Lake for the last 10 years to the previous 10-year period. Any increase in average annual inflows will be split 50/50 between Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 14 hydropower and the annual water budget for instream flows. If there is a decrease in average annual inflows, the annual water budget for instream flows will not be decreased. The Project Owners will repeat this process every 10 years. 3.3.4 Water Accounting Report The Project Owners will prepare an annual report that summarizes (1) the inflows to Eklutna Lake, (2) instream flow releases, and (3) channel maintenance flow releases for all prior water years as well as the available water budget for the upcoming water year and provide it to the Committee by March 1 each year. 3.3.5 Requests to Modify the Flow Regime Based on the results of the monitoring program, the Committee may request modifications to the default year-round instream flow regime and/or the magnitude, duration, frequency, or shape of the scheduled channel maintenance flow releases, as long as (1) the requested flows do not exceed the operational limitations of the Project infrastructure, and (2) the ramping rates conform to fisheries ramping rate requirements. If the total volume of water to be released exceeds the available water budget (which includes any banked water that may be available), then that deficit will be carried over into the next water year. The Committee must provide a 60-day notice to the Project Owners for any requests to modify the default year-round instream flow regime or the default channel maintenance flow schedule. If the requested flows exceed the operational limitations of the Project infrastructure, the available water budget, or the approved ramping rates, then the Project Owners may reject the requested flow modifications. If the Project Owners reject the requested flow modifications, then they must notify the Committee so that the Committee may request alternative flows if desired. The Committee may request modifications to flows within 60 days; however, the Project Owners are not required to meet the request if it is not operationally feasible. 3.3.6 Physical Habitat Enhancement The Project Owners will provide a total of $350,000 in April 2024 U.S. dollars (see Section 5.0) to ADFG during the Program to fund physical habitat enhancement and vegetation management efforts in the Eklutna River. The Committee will develop a plan to implement physical habitat enhancement and vegetation management efforts in the Eklutna River. These efforts will focus on enhancing rearing habitat in the Eklutna River. All physical habitat enhancement and vegetation management efforts must occur downstream of the Eklutna River Release Facility. The Committee may pursue other funding sources to supplement the physical habitat enhancement and vegetation management budget if desired. ADFG will implement the Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 15 plan based on direction from the Committee and must request funds from the Project Owners by July 1 each year based on the planned physical habitat enhancement and vegetation management efforts for the subsequent year. The Project Owners will then budget accordingly and submit payment to ADFG by January 31 of the subsequent year. Reports that summarize the various physical habitat enhancement and vegetation management efforts will be prepared by ADFG and provided to the Committee by February 1 each year. The Committee will review and provide a composite report to the Project Owners by March 1 each year. The Committee shall maintain a database/archive for all physical habitat enhancement and vegetation management reports. The Project Owners are not responsible for responding to natural processes that result in undesirable conditions in the river such as debris flow associated with precipitation or earthquakes, beaver activity, large wood build-up, etc. 3.4 Annual Meeting The Committee will meet annually in April of each year to (1) review the results of the monitoring efforts conducted in the previous calendar year, (2) review the available water budget for the upcoming water year, (3) discuss any potential adaptive management actions for the upcoming water year, and (4) determine what monitoring efforts and/or physical habitat enhancement should be conducted in the subsequent calendar year. The Committee must notify the Project Owners of any planned monitoring efforts and/or physical habitat enhancement activities for the subsequent calendar year by July 1 so that the Project Owners can budget accordingly. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 16 4.0 Limited Reopeners Per the 1991 Agreement, the Project Owners are required to repeat this process every 35 years and must initiate the next process by October 2057. In addition, the Project Owners are required to repeat this process before making any major structural or operational modification to the Project that would substantially affect water usage or fish and wildlife. The following two limited reopeners are intended to enable consideration and potential execution of the specified structural and operational modifications during the period between processes without triggering the need to repeat this entire process outlined in the 1991 Agreement. As set forth below, the two limited reopeners may occur no sooner than 10 years following completion of the Eklutna River Release Facility (Section 2.1.1) and establishment of year- round instream flows (Section 2.1.2). If the Eklutna River Release Facility and instream flows are delayed due to any reason such as litigation or appeals of the Final Fish and Wildlife Program or a failure to complete permitting or gain necessary approvals, the 10-year timeframe leading to the reopeners will be delayed until such time as the Eklutna River Release Facility is completed and the instream flows established. 4.1 Fixed Wheel Gate During the consultation process, several stakeholders requested that the existing overflow spillway be replaced with a fixed wheel gate because either (1) climate change may cause inflows to the reservoir to increase significantly, which may increase the likelihood of future spill events, and a fixed wheel gate will allow the Project Owners to better manage those future spill events, or (2) while modeling results show that the default channel maintenance flow regime will maintain spawning gravels in the wetted reach of the Eklutna River, future monitoring may show that a higher magnitude channel maintenance flow that exceeds the combined hydraulic capacity of the existing outlet gate and the Eklutna River Release Facility may be warranted. Replacement of the existing overflow spillway with a new fixed wheel gate was evaluated during the study program and alternatives analysis and the Project Owners determined that it was not warranted at this time due to significant dam safety concerns, and the need for future monitoring. Recognizing that the fixed wheel gate might be warranted in the future, however, the Project Owners will continue to investigate the fixed wheel gate as described below and will construct it if certain criteria are met. Within three years of the Governor’s issuance of the Final Fish and Wildlife Program, the Project Owners will conduct a more detailed feasibility study of the fixed wheel gate (including a stability analysis and Class 3 cost estimate). The Project Owners will report the results of that analysis to the Committee. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 17 If the fixed wheel gate is considered feasible and cost effective, then on the 10th anniversary after initiating instream flows, the Project Owners will confer with the Committee to reevaluate the need for the fixed wheel gate. If the monitoring efforts during that 10-year period indicate that (1) average annual inflows to the lake have increased by 20,000 acre-feet, or (2) the Committee determines that higher channel maintenance flows are warranted to maintain spawning gravels, then the Project Owners will commit up to $10M in April 2024 U.S. dollars (see Section 5.0) to demolish the existing overflow spillway and construct a new fixed wheel gate. If the demolition/construction costs are estimated to be less than $10M in April 2024 U.S. dollars, then the Project Owners will obtain necessary permits, demolish the existing overflow spillway, and construct a new fixed wheel gate. If the demolition/construction costs are estimated to be greater than $10M in April 2024 U.S. dollars, then the Committee may seek supplemental funding payable to the Project Owners from other sources. If the supplemental funding is federal funding and triggers additional NEPA requirements, then the Committee will be responsible for ensuring that outside funding is available and payable to the Project Owners in order to meet those requirements. Upon receipt of such supplemental funding, the Project Owners will obtain necessary permits, demolish the existing overflow spillway, and construct a new fixed wheel gate. This is a limited reopener and will not reopen any other components of the Fish and Wildlife Program or trigger the process requirements outlined in the 1991 Agreement. Governor approval of the decision to replace the fixed wheel gate will not be required. 4.2 Fish Passage During the consultation process, several stakeholders requested that upstream fish passage of adult salmon into Eklutna Lake and downstream fish passage of juvenile salmon out of Eklutna Lake be evaluated. All fish passage measures proposed by the Project Owners and other stakeholders were evaluated during the study program and alternatives analysis. See alternatives analysis in Supplemental Information Document. All of the volitional upstream fish passage measures that were evaluated either (1) would have significant impacts to the hydropower project (i.e., would reduce the storage capacity of the reservoir by approximately 40% or would require the Project to be shutdown throughout the winter when energy is needed most), or (2) are cost prohibitive (the estimated present worth for the stakeholders’ preferred alternatives that included volitional fish passage ranged from $221M to $385M including capex, operations and maintenance, and replacement energy). In addition, there are still significant concerns regarding the effectiveness of all the downstream fish passage facilities studied (i.e., low attraction flow velocities and/or the inability to operate the Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 18 downstream fish passage facilities while the lake is frozen over). Therefore, fish passage measures are not proposed at this time. Nonetheless, the Project Owners recognize that fish passage may become feasible in the future and fish passage is important to NVE, the federal and state agencies, and others who have commented on the Draft Program. If a new, proven methodology or technology becomes available, then the Committee may reevaluate the potential for the construction and operation of fish passage facilities both into and out of Eklutna Lake on its own initiative or at the request of any of the resource agencies or NVE. Any fish passage measures must meet the following criteria: 1. Fish passage facilities must be safe and effective for human health, the environment, and operations of the Project, the Eklutna River Release Facility, and AWWU’s Eklutna Water Project and its water supply; 2. Fish passage facilities must address both upstream and downstream fish passage for anadromous fish (i.e., no effective upstream passage without effective downstream passage); 3. Fish passage facilities cannot affect reservoir operations in a manner that would cause AWWU operation shutdown for any amount of time or Project shutdown for more than two weeks annually (except during construction); 4. Fish passage facilities cannot result in more than 10% loss of storage capacity in the reservoir (i.e., the active storage capacity in the reservoir cannot be reduced by more than 17,480 acre-feet); 5. Fish passage facilities must operate within the available water budget administered by the Committee. Because fish passage into the lake has the potential to impact recreational use or facilities within Chugach State Park and/or the water quality of the municipal water supply, both of these potential impacts must be evaluated by the Committee. The Committee must also consult with the State Park and AWWU regarding any such impacts and the appropriate mitigation for those impacts. The Committee must ultimately obtain written consent or approval from both the State Park and AWWU for any proposed fish passage measures, including the construction schedule. The cost of any fish passage measures (including scientific studies, engineering, construction, operation, maintenance, and mitigation for any impacts to recreational use or facilities and/or Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 19 the municipal water supply, etc.) must be completely funded by parties other than the Project Owners. At any time more than 10 years after initiating instream flows, if (1) the Committee has identified fish passage measures that meet all of the listed criteria, (2) the Committee has obtained written consent or approval from both the State Park and AWWU, (3) the Committee has obtained the necessary funding for all fish passage measures, and (4) the Anadromous Waters Catalog maintained by ADFG has been updated to reflect that migrating or spawning adult sockeye salmon have been documented within 1 mile of the Eklutna River Release Facility, then the Committee may propose those fish passage measures to the Project Owners with supporting information. As long as all of the above criteria and prerequisites are met, then the Project Owners will support the development and operation of the proposed fish passage facilities. The Project Owners may choose to waive criteria numbers 3, 4, and/or 5 upon unanimous decision, provided that AWWU must independently consent or approve fish passage measures affecting its facilities or its water supply. Upon receiving a statement of support from the Project Owners, the Committee and the Project Owners will coordinate and cooperate to obtain the Governor’s approval of the proposed fish passage measures. Governor approval of the decision to add the fish passage facilities will be required. If the Governor approves the proposed fish passage measures, then the 35-year timeframe requirement to repeat the consultation process required by the 1991 Agreement will restart from the date the Governor’s approval. The construction schedule must minimize impacts to Project operations. The Project Owners will oversee all construction activities and will support the development and operation of the fish passage facilities. However, the Project Owners will not operate the fish passage facilities and will be held harmless from the development and operation of such facilities. This is a limited reopener and will not reopen any other components of the Fish and Wildlife Program. Eklutna Hydroelectric Project Proposed Final Fish and Wildlife Program April 2024 20 5.0 Funding Commitments and Inflation Adjustment All monetary amounts in this Proposed Final Program are in 2024 U.S. dollars, unless otherwise stated. All monetary amounts will be adjusted annually for inflation using a 15-year rolling average reflected in the Bureau of Labor Statistics’ Urban Alaska Consumer Price Index (CPI-U) (as currently reported by State of Alaska Department of Labor and Workforce Development at https://live.laborstats.alaska.gov/cpi/table). CO Office GLO DUE Report Due Audience Frequency Statute Responsible- - 1/2/25 Capital Reserve Fund shortfall January 2Governor, Legislature annually AS 44.83.110(f)Finance1/7/25 1/14/25 1/21/25Susitna River Power Project Annual Report 1st day of session Legislature annually AS 44.83.085Bryan1/16/25 1/23/25 1/30/25Renewable Energy Fund recommendations10th day of session Legislature annually AS 42.45.045 (d)(3) Conner/Karen B.1/16/25 1/23/25 1/30/25Revised estimate of need to withdraw from Capital Reserve FundJanuary 30State Bond Committee, Legislative Budget & Audit Committeeannually AS 44.83.110(h)Finance1/16/25 1/23/25 1/30/25 Project status report 15th day of session Legislature annually AS 44.83.950(b)Finance /Owned Assets2/15/25 2/22/25 3/1/25 Annual report March 1Governor, Legislatureannually AS 44.83.940Brandy (lead)3/1/25PCE ReportMarch 1Legislature annuallyNONETim / KatherineALAKSA ENERGY AUTHORITYFY25 Deadlines for Legislative Submittals DATE ROLE DESCRIPTION LOCATION TEAM MEMBER October 7, 2024 Speaker/Attendees Chugach Electric and Matanuska Electric Association: Battery Energy Storage System Commissioning Ceremony Chugach Electric Headquarters, Anchorage, AK Cutis W. Thayer, Bryan Carey, Brandy M. Dixon October 4, 2024 Presenter Alaska Rural Energy Conference: Solar for All: Working Toward a Brighter Future Presentation Westmark Fairbanks Hotel & Conference Center, Fairbanks AK Audrey Alstrom October 4, 2024 Attendee Chugach Electric Ribbon Cutting Ceremony: Chugach's Direct Current Fast Charger Chugach Electric Headquarters, Anchorage, AK Quinlan Harris October 4, 2024 Presenter Alaska Rural Energy Conference: Utilizing Circuit Riders and Emergency Response Presentation Westmark Fairbanks Hotel & Conference Center, Fairbanks AK Justin Tuomi October 4, 2024 Presenter Alaska Rural Energy Conference: Energy Dashboard and Statewide Survey Presentation Westmark Fairbanks Hotel & Conference Center, Fairbanks AK Justin Tuomi, Dean Maschner October 3, 2024 Attendees Public Relation Society of America Alaska Chapter: Aurora Awards Willowaw Social, Anchorage, AK Brandy M. Dixon, Josi Hartley October 3, 2024 Media Inquiry Governor's Press Release on Eklutna Lake, Arielle Ingram-David, Fox News/Your Alaska Link Phone Brandy M. Dixon September 29-October 2, 2024 Attendee/Panelist National Association of State Energy Officials Annual Meeting: Investment, Innovation, Jobs, and Affordability New York Hilton Midtown, New York, NY Curtis W. Thayer September 18, 2024 Media Inquiry Follow-Up on High-Voltage Direct Current Transmission Line Project Locations Email Brandy M. Dixon September 18, 2024 Media Interview Southcentral Natural Gas Crunch and Coal-Fired Power, James Brooks, Alaska Beacon Email Brandy M. Dixon September 17, 2024 Press Release AEA Board Approves Acceptance of $475.5 Million in Federal Awards Email/Social Media Brandy M. Dixon September 13, 2024 Presenter Alaska Power Association Annual Meeting: Modernizing the Railbelt Grid Presentation Wedgewood Resort, Fairbanks AK Curtis W. Thayer September 12, 2024 Newsletter Alaska Electric Vehicle Working Group (AKEVWG) September Newsletter Sent to 276 Recipients Email Brandy M. Dixon September 12, 2024 Presenter Southcentral Mayor’s Energy Coalition Technical Committee: Modernizing the Railbelt Grid Presentation Virtual, Anchorage, AK Curtis W. Thayer August 29, 2024 Presenter National Hydropower Association Alaska Regional Meeting: Dixon Diversion Overview Presentation Baranof Downtown, Juneau, AK Bryan Carey August 28-29, 2024 Attendee/Moderator National Hydropower Association: Alaska Regional Meeting Baranof Downtown, Juneau, AK Curtis W. Thayer August 28, 2024 Panelist Alaska Defense Forum: Alaska Energy Security Virtual Tim Sandstrom August 26, 2024 Attendee Renewables/Utility Roundtable Hosted by Chugach Electric Association In Person, Anchorage, AK Curtis W. Thayer, Audrey Alstrom August 20, 2024 Featured Speaker Greater Fairbanks Chamber of Commerce Raven Landing Center, Fairbanks, AK Curtis W. Thayer August 19, 2024 Media Inquiry Solar Farms, Jamie Deip, KBBI (Homer)Email Brandy M. Dixon August 16, 2024 Exhibitor Booth Alaska State Fair: Energy Day Palmer Fair Grounds, Palmer, AK Quinlan Harris, Yosty Storms, Curtis W. Thayer, Karen Turner August 15, 2024 Attendee Solar Energy Roundtable Hosted by the Alaska Industrial Development and Export Authority In Person, Anchorage, AK Curtis W. Thayer, Audrey Alstrom August 14, 2024 Media Interview AEA Update, Tim Bradner, Alaska Economic Report/Alaska Legislative Digest Phone Curtis W. Thayer August 13, 2024 Host AKEVWG Technical Session: Utility Roundtable In Person/Virtual, Anchorage, AK Josi Hartley August 8, 2024 Newsletter AKEVWG August Newsletter Sent to 278 Recipients Email Brandy M. Dixon August 6, 2024 Featured Speaker Greater Wasilla Chamber of Commerce Evangelo's Restaurant, Wasilla, AK Curtis W. Thayer August 1-2, 2024 Attendee Toured several facilities including the Eyak Substation, distribution facilities, battery energy storage system, Power Creek Hydroelectric Project, and the Orca Diesel Plan In Person, Cordova, AK Curtis W. Thayer July 31, 2024 Host Governor's Energy Bills Signing: House Bills 50, 247, and 307 In Person, Anchorage, AK AEA Team July 29, 2024 Media Interview Alaska Railbelt, Hal Bernton, Inside Climate News and Anchorage Daily News Phone, Anchorage, AK Curtis W. Thayer AEA COMMUNITY OUTREACH Last Updated on October 8, 2024 (6-Month Look Back) 813 W Northern Lights Blvd, Anchorage, AK 99503 • Phone: (907) 771-3000 Fax: (907) 771-3044 • Email: info@akenergyauthority.org • Website: akenergyauthority.org DATE ROLE DESCRIPTION LOCATION TEAM MEMBER July 25, 2024 Presenter Alaska's EV Program Presentation to Fairbanks Chamber Transportation Committee Virtual Josi Hartley July 22, 2024 Featured Speaker Anchorage Chamber of Commerce Dena’ina Civic and Convention Center, Anchorage, AK Curtis W. Thayer July 17, 2024 Newsletter AKEVWG July Newsletter Sent to 272 Recipients Email Brandy M. Dixon July 8, 2024 Media Interview Grid Resilience Formula Grant Program Budget Update, Alan Bailey, Petroleum News Phone Curtis W. Thayer July 1, 2024 Press Release AEA and DOT&PF Invite Public Input to Update Alaska’s FY25 NEVI Plan Email/Social Media Brandy M. Dixon June 28, 2024 Media Interview AEA's role in the Akiak Power Outage, Evan Erickson, KYUK Phone Tim Sandstrom June 27, 2024 Media Inquiry AEA's role in the Akiak Power Outage, Evan Erickson, KYUK Phone Brandy M. Dixon June 18, 2024 Host AKEVWG Technical Session: Utility Roundtable In Person/Virtual, Anchorage, AK Josi Hartley June 13, 2024 Newsletter AKEVWG June Newsletter Sent to 271 Recipients Email Yosty Storms June 13, 2024 Host Bradley Lake Hydroelectric Project Site Visit with Legislators In Person, Homer, AK Curtis W. Thayer June 11, 2024 Host Bradley Lake Hydroelectric Project Site Visit with Legislators In Person, Homer, AK Curtis W. Thayer June 4-6, 2024 Attendee Alaska Power Association: Federal Legislative Conference In Person, Washington, DC Curtis W. Thayer May 21-23, 2024 Attendees/Exhibitor Booth Alaska Sustainable Energy Conference In Person, Dena'ina Center, Anchorage, AK Curtis W. Thayer, Audrey Alstrom, Karen Bell, Bryan Carey, Brandy Dixon, Conner Erickson, Rebecca Garrett, Justin Glover, Quinlan Harris, Josi Hartley, Dawn Molina, Ashley Streveler, Wendy L. Sturdivant, Justin Tuomi, Karen Turner May 17, 2024 Exhibitor Booth Chugach Electric Association’s 11th Annual Member Appreciation Day In Person, Anchorage, AK Brandy M. Dixon, Quinlan Harris, Yosty Storms May 14, 2024 Host Open House: Rampart Powerhouse Module In Person, Anchorage, AK AEA Team May 7, 2024 Panelist United States Energy Association: Regional Decarbonization Alaska Workshop In Person, Anchorage, AK Curtis W. Thayer May 6, 2024 Newsletter AKEVWG May Newsletter Sent to 274 Recipients Email Brandy M. Dixon April 30, 2024 Vendor Booth Matanuska Electric Association Annual Meeting Glenn Massay Theatre, Palmer, AK Quinlan Harris April 25, 2024 Media Response AEA Response to Tim Bradner with Alaska Legislative Digest on April 17 AEA Board Meeting Topics Email Brandy M. Dixon April 24, 2024 Media Interview Solar for All, Jenny Willoughby, KTNA (Talkeetna)Phone Curtis W. Thayer April 23, 2024 Media Interview Solar for All, Sean Maguire, Anchorage Daily News Phone Curtis W. Thayer April 23, 2024 Panelist National Association of State Energy Officials and National Governors Association Webinar Series: Comprehensive Energy Planning 101 – Tips and Best Practices from the States: Webinar 1: Initiating Statewide Planning Processes Virtual Curtis W. Thayer April 22, 2024 Press Release AEA and AHFC selected for $62.5 Million EPA Solar for All Grant Email/Social Media Brandy M. Dixon April 12, 2024 Media Inquiry Grid Resilience and Innovation Partnerships Funding, Tim Bradner, Alaska Legislative Digest Email Brandy M. Dixon April 11, 2024 Newsletter AKEVWG April Newsletter Sent to 270 Recipients Email Brandy M. Dixon April 11, 2024 Attendee Utility Working Group Comms Monthly Check-In Virtual Brandy M. Dixon April 10, 2024 Meeting AEA Meeting with Mayor Micciche, Mayor Whitney, and Vice Mayor Knackstedt Soldotna, AK Curtis W. Thayer, Jim Mendenhall April 10, 2024 Presenter Joint Kenai and Soldotna Chamber of Commerce Luncheon Soldotna Regional Sports Complex, Soldotna, AK Curtis W. Thayer, Jim Mendenhall AEA Community Outreach Page 2 of 2   e-Edition •Today's Paper •Games - New!•Obituaries •ADN Store • Promotions •Sponsored Content •Manage account ADVERTISEMENT Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation Solar, wind and small hydropower projects are gaining footholds, but some clean energy pioneers are frustrated with the pace of change. By Hal Bernton Updated: 3 hours ago Published: 3 hours ago    Alaska News   •  Politics   •  Opinions   •  Talk to us Get our free newslettersSections 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…1/14 The Houston solar farm was developed by Renewable IPP, which has proposed a much larger solar farm for the Kenai Peninsula. (Loren Holmes / ADN) This story is being co-published with Inside Climate News, a nonprofit, non- partisan news organization that covers climate, energy and the environment. Second of two parts. Read the first here. In 2017, Jenn Miller and her husband, Chris Colbert, decided to put solar panels on the roof of their house. They were both engineers, employed by Alaska’s oil and gas industry, and figured they could cut costs by working on their own design and installation. With the knowledge that they gained from that Anchorage home improvement project, they tackled a pilot solar farm project to produce electricity for a utility. Once that project was up and running, Miller quit her day job at BP to focus full-time on solar power as chief executive officer of Renewable IPP. Last year, the company began operating the state’s largest solar project, which is built on 45 acres of a fire-scarred patch of land near 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…2/14 the Matanuska-Susitna Valley community of Houston. When running at peak capacity, the panels can generate enough electricity for 1,400 homes. The arc of the project’s power production is shaped by the sun’s huge seasonal swings in Southcentral Alaska, which is bathed in more than 19 hours of daylight in June, but cloaked in darkness through much of December. More than 90 percent of the solar farm’s power is produced from February through October “When we told colleagues, I think there was this shock value of solar and Alaska in the same sentence,” Miller said. “But we had run the numbers, and we’re like ‘This totally works.’” Jenn Miller, CEO of Renewable IPP, speaks at a ribbon cutting event for the Houston Solar Farm in August 2023. (Loren Holmes / ADN) For clean power advocates, putting more renewables onto the grid is a first step in a broader transformation of Alaska’s energy industry. The state could eventually harness electricity produced by Alaska’s vast wind, geothermal and tidal resources to make hydrogen for green fuels. 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…3/14 But greening this grid is complicated by the state’s geographic isolation. In most of the Lower 48 states, as wind and solar power generation rises and falls, utility managers can purchase power from other states so that electricity consumption matches production, which is essential to avoiding brownouts or blackouts. ADVERTISEMENT In Alaska, there is no way to access power from outside the state. Electrical transmission lines connect the Beluga Power Plant in Tyonek with Anchorage, seen in Point MacKenzie in 2023. (Loren Holmes / ADN) Most of the population lives in the Railbelt, which stretches for some 700 miles from the Kenai Peninsula to communities north of Fairbanks. Five utilities serve this region, but connections between them are frail, so it is difficult, at times impossible, to efficiently move power from one area with a surplus to others in need. Work is underway to strengthen the grid by doubling the capacity of the lines that run between the Kenai Peninsula and Anchorage. Within the next 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…4/14 decade, there also will be a second, undersea line, coupled with battery storage, that will give utilities more flexibility to quickly move power about the grid. Still, additional improvements are needed, including a second line connecting Anchorage to Fairbanks estimated to cost more than $700 million. “We have a very old and outdated grid,” said Curtis Thayer, executive director of the Alaska Energy Authority, a state agency charged with reducing the cost of energy. “This is our biggest challenge.” [Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state] Railbelt utilities, which are organized as cooperatives, also are grappling with declining production from Cook Inlet natural gas fields that for decades have been a key energy source for power generation. As early as 2027, the utilities expect to import liquified natural gas, a more expensive proposition than turning to renewables, according to a study released earlier this year by the National Renewable Energy Laboratory. Currently, Alaska’s biggest source of clean power is hydroelectricity. It generates more than 20 percent of the state’s electricity—and in some communities outside the Railbelt represents the main source of power. The largest facility, the 120-megawatt Bradley Lake Project, a dam on a glacier- fed Kenai Peninsula lake, came on line in September 1991. It produces enough electricity for 54,000 Railbelt homes. An expansion proposal, involving an additional diversion dam and tunnel, is estimated to cost $350 million, and could boost peak output by nearly 50 percent. The federal study found solar and wind could play a much bigger role in generating Alaska’s electricity. But there would need to be more battery storage, as well as grid upgrades that would enable quicker, more efficient transmission of power from one area to another. 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…5/14 “”There’s going to be a lot of stuff utilities will need to do. Even so, compared to imports of liquified natural gas, there should still be substantial cost saving opportunities,” said Paul Denholm, a co-author of the National Renewable Energy Laboratory study. Renewables running against the wind The 8.5-megawatt solar farm in Houston, Alaska, is comprised of 14,000 solar panels and sits on land that was burned during the devastating 1996 Miller's Reach Fire. (Loren Holmes / ADN) But in a state long reliant on fossil fuels to generate most power, some of Alaska’s renewable power pioneers found their projects to be a tough sell. “I have got years of scars from battling with the utilities,” said Mike Craft, who in September 2010, began operating a Delta Junction wind power project of less than 2 megawatts, and has struggled for years to expand generation. Craft is a land developer who experimented with smaller wind turbines before building the nearly $4 million Delta project with the help of investors 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…6/14 and a state grant. The project’s power production peaks in the winter when demand for the electricity also is high. ADVERTISEMENT Through years of hands-on operations, Craft has learned how to keep turbines operating even during periods of extreme cold. Bolts, for example, have to be designed with special alloys so they don’t become brittle and snap. Motors within the turbines require insulating fiberglass blankets and heaters to keep lubrication oil from thickening. During the last week in January, interior Alaska was hit with some of the coldest temperatures of the past decades. Though winds dropped off sharply and slashed power production, the Delta project was online 24 hours a day. “When you operate a turbine at minus 40, that’s an accomplishment. And I do it on a regular basis,” Craft said. “We’re very proud of that. It took a lot of effort. " The electricity from the site’s turbines is purchased by the Golden Valley Electric Association, a co-op utility serving the Fairbanks area that has some of the highest utility rates in the nation and generates most of the members’ power from coal-fired, diesel and naphtha power plants. During the past decade, Craft made multiple proposals to scale up his wind project. Golden Valley rejected those, even as the utility opted to build its own wind turbine project at another site, Eva Creek, which began producing power in 2012. Those denials prompted Craft to make an unsuccessful appeal to Alaska regulators, and to file a lawsuit in state court, which he also lost. ADVERTISEMENT 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…7/14 Craft did not give up. He has a new partner,Ameresco, a renewable energy developer, which is negotiating with Golden Valley to operate a 34.5 megawatt project on the site. Still, there are delays. “I would have hoped we would have done the dirt work this summer, and ordered the turbines,” Craft said. “Now, that’s been put off for another year. A lot of people think I’m crazy that I’ve stayed on this.” Travis Million, Golden Valley’s chief executive officer, said the utility is currently trying to determine the least-expensive power options for the future. The utility has to find new ways to generate baseload power that can be dispatched on demand, Million said. One of the Golden Valley coal-fired power plants was designed with technology to burn the fuel more cleanly, but it has failed to operate reliably and is targeted to be shut down. Geothermal and biomass electricity generation are possible options. There will also be a need for more wind power, and Golden Valley is currently evaluating the Delta expansion and another project. “That’s all I can say at this point. We’re working with them to try to advance some of these projects based on what would be the best benefit for (utility) members,” Million said. ADVERTISEMENT Trickle-down energy transition In southcentral Alaska, some independent power producers have focused on small-scale “micro” hydro projects that capture the power of mountain streams. 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…8/14 Hydrologist David Brailey developed a small hydro project that generates power from water flowing down a Chugach Mountain creek. Here, he sits above a spillway that collects the water for the 300-kilowatt project. (Loren Holmes / ADN) David Brailey, a petroleum geologist turned hydrologist, operates the Juniper Creek project, which diverts some of the water from a creek that drops down a steep brush-covered gorge frequented by brown bears. From June through October, the project can produce nearly one-third of a megawatt of power—enough electricity for several hundred homes. Flows then decline through the late fall, winter and spring months. “It’s predictable, and that’s perfect,” Brailey said. “That’s what you need. I can guarantee it.” For Brailey, Juniper Creek, which is co-owned by his wife, Melanie Janigo, and two close friends, has been an obsession that involved more than a decade of stream monitoring, permitting and sleepless nights pondering the risks of a $1.7 million investment. 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_s…9/14 The project lies within a 160-acre tract that Brailey owns in the Eagle River area northeast of Anchorage. Brailey did some of his own construction, renting an excavator to carve out an access road to the generator shed and laying the concrete foundation for the small building that houses the turbine, which sits more than 300 feet below a spillway intake pipe. Brailey sells his power to the Matanuska Electric Association, a Railbelt utility that is expected to have to turn to imported LNG to generate electricity before the end of this decade. Though utility officials want to bring on more renewables, Brailey found negotiations with them were a long, frustrating process. He hoped to be paid a premium for reliable, predictable power generated without greenhouse gas pollution. Instead, the utility offered a price tied to the current costs of generating power from natural gas that will only rise as the gas price rises. “The benefit that we give to the environment by producing carbon-free energy is worth nothing,” Brailey said. ADVERTISEMENT 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_…10/14 An 18" pipe carries water downhill from a spillway to a turbine and generator shack at the Juniper Creek hydro project in Eagle River. (Loren Holmes / ADN) Utility officials say that they will take as much power as Brailey can produce, But they note that the hydro project’s generation slumps in the winter, when demand peaks. “There’s no extra value to our members to justify a higher price,” said Julie Estey, the utility’s chief strategy officer. Still, even without a premium on carbon-free electricity, the pace of renewable energy development in Alaska is quickening. Miller’s Renewable IPP has a leadership team that includes her husband Colbert and two other petroleum engineers—Sam Dennis and Grant Smith, both of whom are partners. And the company has gained the backing of CleanCapital, a New York-based investment firm, which financed the solar farm near Houston, Alaska and also took an ownership stake. The Houston solar farm’s design reflects the lessons learned through operation of their pilot project. 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_…11/14 The solar panels are bifacial, which means they can absorb not only direct sunlight but reflection from the winter and spring snowpack. The Houston solar farm was developed by Renewable IPP, which has proposed a much larger solar farm for the Kenai Peninsula. (Loren Holmes / ADN) They are sloped at angles steep enough to shed snow after storms, and are elevated three feet off the ground, so that sloughing snow has somewhere to fall before being removed by an industrial strength blower that periodically makes winter passes through the project. The rows of panels have to be spaced farther apart than in the Lower 48 because the northern sun angles are lower—and cast longer shadows. So, if the rows were closer together, the panels would shade each other out. This means Alaska solar farms require more land to generate power. But the bigger spaces between the rows—wide enough to drive tractors through— offer a greater opportunity for cultivating food crops such as potatoes. With the aid of a federal grant, a test of this farming potential will happen next 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_…12/14 year at the Houston project in a collaborative effort with the University of Alaska Fairbanks. Renewable IPP, so far, has not faced the kind of strong, organized opposition that has slowed, and at times stymied, some solar development in the Lower 48. But in the Matanuska Susitna Valley, some people were initially wary about putting solar farms on rural lands, and Miller acknowledges the potential for more of a backlash as the solar footprint expands. She hopes that finding a way to use the acreage for food production as well as energy will help ease those concerns and also boost the profitability of these ventures. “While we have a lot of land (in Alaska), we don’t have a lot by the road system. And, so, if we’re tying that up, people will want to see that we are using it well,” Miller said. The power is purchased by Matanuska Electric Association under a fixed rate contract signed two years ago that was set below the cost of natural gas. Since then, gas prices have climbed and the Houston project’s solar power in recent months has sold for 10 to 20 percent less than what ratepayers pay for gas-generated electricity, according to Miller. Miller said that inflation raised construction costs more than forecast, and at one point prompted her and her partners to reconsider the project. But she is not discouraged, and has been scouting for new Alaska sites for the photovoltaic panels. The next project, which was announced in August, is planned for the Kenai Peninsula, and will be more than five times the size of the Houston solar farm. “We need to save the planet. But most people can’t afford an increase in their power bill,” Miller said. “When we talk about an equitable transition, it has to be a cost-competitive transition so it makes sense for everybody.” 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_…13/14 • • • Independent journalist Hal Bernton was a longtime reporter for The Seattle Times, and previously reported for the Anchorage Daily News and The Oregonian. Reach him at hbernton@gmail.com. ADVERTISEMENT Download Our App Newsletters Get The Newspaper Contact Us Terms of Use Privacy Policy Archives Reprints Customer Service Contact Us Advertise Troubleshooting © 2024 Anchorage Daily News. All rights reserved. Around the Web 10/8/24, 12:24 PM Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation - Anchorage Daily News https://www.adn.com/business-economy/2024/10/08/alaska-utilities-turn-to-renewables-as-costs-escalate-for-fossil-fuel-electricity-generation/?utm_…14/14   e-Edition •Today's Paper •Games - New!•Obituaries •ADN Store • Promotions •Sponsored Content •Manage account ADVERTISEMENT Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state Cook Inlet is a hotbed of green energy ambitions, with proposals for wind, geothermal, tidal and hydrogen production, but their success could be stymied by the fossil fuel foundation of the state’s economy and politics. By Hal Bernton Updated: 15 hours ago Published: 1 day ago    Alaska News   •  Politics   •  Opinions   •  Talk to us Get our free newslettersSections 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/1/24 Wind turbines spin on Fire Island off in 2022, with Anchorage in the background. Cook Inlet Region Inc., which owns most of the island, built the 17.6MW project a decade ago and is looking at options to triple the power output (Loren Holmes / ADN) This story is being co-published with Inside Climate News, a nonprofit, non- partisan news organization that covers climate, energy and the environment. First of two stories. NIKISKI — Engineer David Clarke spent more than three decades at BP, starting on a production platform in the North Sea and ending his career with the company in Alaska, where he helped wring more oil out of the aging Prudhoe Bay oil fields. In 2020, BP pulled out of the state, selling off its Alaska assets and vacating a 14-story headquarters office building in midtown Anchorage. But Clarke has made his home here, shifting his focus from oil and gas to another world-class energy prospect — the strong offshore gusts that blow across Southcentral Alaska’s Cook Inlet, where he proposes to erect offshore wind turbines. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/2/24 Clarke is part of a cadre of Alaska oil industry veterans who have joined an ambitious effort by clean energy advocates to try to rewire the state’s fossil fuel mindset by tapping Alaska’s massive potential for renewable power. They are developing solar projects, prospecting for geothermal energy on the flanks of a volcano and designing a test of tidal power technology in Cook Inlet. The electricity produced from such projects could play an increasingly important role in the state’s economy as climate change spurs a global shift away from fossil fuels. Offshore petroleum platforms stand in Cook Inlet beyond the shuttered Agrium fertilizer plant, foreground, and the Kenai liquified natural gas plant (three white tanks), on Monday, July 1, 2024 in Nikiski. The fertilizer plant closed in 2007 as gas production dwindled in Cook Inlet, and the LNG plant ceased operations in 2015. (Loren Holmes / ADN) Clarke proposes — by the mid 2030s — a new energy complex emerging in the town of Nikiski, a base for the oil and gas industry on the Kenai Peninsula. There, he envisions harnessing electricity from the offshore wind project to make hydrogen that could be converted into ammonia, a potential maritime fuel, or combined with carbon dioxide to produce a sustainable 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/3/24 aviation fuel for the cargo aircraft that stop to gas up in Anchorage on trips between Asia and the Lower 48 states. ADVERTISEMENT - $10 off AT&T AARP Member Benefits Sponsored Learn More “We saw this as a step forward for the climate, and really, really good for Alaska,” said Clarke, who has partnered with another retired BP petroleum engineer, Simon Harrison, to promote the project. “Alaska has got phenomenal — absolutely phenomenal — renewable resources.” 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/4/24 David Clarke stands outside the shuttered Agrium fertilizer plant on July 1 in Nikiski. The Agrium plant once produced hydrogen from natural gas as part of the process to make fertilizer. (Loren Holmes / ADN) Many Alaskans embrace energy development and that could make it easier to gain public support for large-scale renewable projects, which in other parts of the country, such as the Pacific Northwest, often have been embroiled in siting conflicts. ADVERTISEMENT Still, for some, this still seems like the stuff of pipe dreams, if not heresy. Since 1977, when crude began flowing from the state-owned Prudhoe Bay fields on Alaska’s North Slope, oil has spun off royalties and taxes that today finance more than 80% of the state general fund budget. This money also flows into a state savings account, the Permanent Fund, which is valued at more than $80 billion and this year will spin off a $1,702 dividend and energy relief payment to every Alaska resident, who pay no state sales or income taxes. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/5/24 The Trans-Alaska Pipeline winds its way through the forest south of Donnelly Dome. (Loren Holmes / ADN) These huge financial benefits secure fierce political support for more oil production to boost flows through the Trans-Alaska Pipeline, even as the state has been buffeted by the impacts of climate change driven by the combustion of fossil fuels and other human activities. Alaska is warming at more than twice the rate of the Lower 48 states, with reductions in sea ice putting walrus and polar bears at risk. Some western Alaska villages are threatened by thawing permafrost as well as intensified erosion amid rising sea levels. In drainages that flow south from Brooks Range, more than 70 once-pristine waterways have turned orange from iron and toxic metals likely flushed out in the runoff from thawing permafrost, according to a study by U.S. Geological Survey and National Park researchers that found “dramatic declines” in fish abundance. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/6/24 [Related: Could naturally occurring hydrogen underground be a gusher of clean energy in Alaska?] ADVERTISEMENT - Portuguese Golden Visa Program Henley & Partners Sponsored Contact Us In the Bering Sea, a marine heat wave set the stage for the collapse of snow crab populations that once sustained a major harvest. Yet, in Alaska, climate change skeptics abound. And there is scant political gain to be had by citing the need to cut greenhouse gas emissions as a reason for reducing Alaska’s dependence on the fossil fuels that currently generate more than 70% of the state’s electricity. “It’s frustrating. This is an existential threat. But if you say the word ‘climate’ in a conversation over what is the best choice for (power) generating portfolios going forward, it’s a non-starter. You get shut down,” said Sam Cason, an Anchorage attorney who served on the board of the Chugach Electric Association, the state’s largest utility, until he lost his seat in a May election. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/7/24 In rural Alaska, where more than 200 communities are not connected to Alaska’s transmission grid, there has long been a potent economic argument for using renewables. Increasingly, wind and solar projects in innovative microgrids are helping to ease the need for high-priced power generation from diesel fuels that are shipped in at considerable expense. In Kotzebue, for example, experiments with wind power date back to 1997, and turbines currently generate enough electricity to satisfy about 20% of annual power needs. Most Alaskans live in the Railbelt, a swath of Southcentral Alaska and the Interior that includes the state’s two largest cities, Anchorage and Fairbanks. And in recent years, renewable energy advocates also have been able to make a financial case for the Railbelt utilities to diversify their power supplies. The setting sun lights up downtown Anchorage. (Bob Hallinen/ADN) 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/8/24 That’s because the production from the Southcentral Alaska gas wells that provide most of the fuel for Railbelt power generation has fallen sharply. The North Slope still has huge proven reserves of gas — but no pipeline to get it to the utilities that serve Railbelt communities, an area of the state that includes Anchorage, Fairbanks and the Mat-Su region. ADVERTISEMENT So, as early as 2027, utilities expect to begin importing liquified natural gas from Canada. This is a startling development in a state that for decades has been a powerhouse energy exporter. It also would be an expensive proposition, pushing up electricity rates that already rank among the highest in the nation and making renewables an increasingly affordable option. “Renewables are cheaper now than natural gas, and they’re certainly going to be cheaper than the natural gas prices that we are going to see in the future,” said Chris Rose, executive director of the Renewable Energy Alaska Project, in 2023 testimony to the state Senate’s Labor and Commerce Committee. The looming gas shortage has forced utilities to rethink future power supplies. Chugach Electric Association, which serves the Anchorage area, relies on natural gas to generate more than 80% of its power. Currently, Chugach is negotiating with an independent wind power producer — Alaska Renewables — that proposes to build a wind farm, Little Mount Susitna, 35 miles northwest of Anchorage. And a “preferred plan” released earlier this year by Chugach called for acquiring more wind power, as well as solar, to help cut carbon emissions by at least 50% by 2040. “Our doors are always open to alternative energy technology, and we are pursuing renewable energy projects that don’t have a negative material 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/9/24 impact on rates or reliability, " said Arthur Miller, Chugach’s chief executive officer. A study by the National Renewable Energy Laboratory suggests that Chugach and other Railbelt utilities should set more challenging targets, and during the next 16 years, bring on enough renewables to meet 76% of their power demands. The researchers forecast that would result in $1.3 billion in ratepayer savings compared to a continued reliance on natural gas, coal and petroleum for most of the power generation. ADVERTISEMENT But so far, the state Legislature has repeatedly balked at passing a renewable portfolio standard similar to those in 29 other states, which would require utilities to reduce their dependence on fossil fuel generation . Such legislation would restrict the ability of Railbelt utilities to contract for long-term imports of natural gas. In 2022, Gov. Mike Dunleavy introduced one of those bills. And, even as he pushes for more Alaska oil, gas and coal development, the governor has continued to advocate building out the state’s renewable energy resources. “We have tremendous opportunities … in wind, onshore and offshore,” Dunleavy said in opening remarks at a sustainable energy conference his administration organized in May. “We’re talking gigawatts of power here in Alaska. So we’re just scratching the surface, and with the technology, the innovation and where the world is going, we see Alaska as being an energy giant across the board.” Republican Dunleavy is a close political ally of Donald Trump. In a July interview with Bloomberg News during the Republican convention, he blasted the Biden Administration for restricting North Slope oil development and called Trump “the best president in the history of Alaska.” 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/10/24 But Dunleavy’s embrace of renewables appears to put him at odds with some of Trump’s agenda. The former president and current Republican presidential candidate once attacked green energy as a scam, and at a New Jersey campaign rally in May, called for an executive order to halt offshore wind development. “You’ll see these things all over the place. They destroy everything. They’re horrible … They ruin the environment,” Trump declared. “We are going to make sure that ends on day one.” ADVERTISEMENT Turning wind into hydrogen Lower Cook Inlet is bordered by a rugged coastline that helps to funnel some of the planet’s most persistent winds, which could keep turbines operating at peak capacity for 64% of the year, according to a federal Bureau of Ocean Energy Management study released in December of last year. “Cook Inlet is in the global top tier for offshore wind sites — remarkable, for sure,” said Levi Kilcher, a federal Department of Energy researcher who contributed to the study. This formidable wind potential drew the interest of Harrison, the former BP engineer who, during a career helping to develop oil and gas projects became increasingly concerned about the climate impacts of fossil fuel combustion. For several years in the late 1980s, Harrison joined Greenpeace, stirring up “a great deal of fuss,” he said, by wearing the organization’s logo on his suit at work. Harrison spent the final 16 years of his BP career in Alaska. After his retirement, he decided it was time to pivot from oil to renewable energy. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/11/24 “I am very concerned,” Harrison said. “Politically, socially — is the climate emergency going to get more extreme? Are people going to buckle down and get rid of hydrocarbons, or are they going to stick their heads in the sand and pretend it’s not happening? God only knows.” Harrison went to work hanging photovoltaic panels for another BP engineer who, in his off hours, was building a pilot solar farm. In 2021, he teamed up with Clarke to try to find a way to produce power from Cook Inlet wind, a long term, high-risk venture that they hope can eventually attract investors to their firm — Alaska Marine Power. They propose a large project that would be expanded in phases to produce 10,000 megawatts of electricity. An undersea line would bring the power onshore, where the electricity would be used to separate hydrogen from water molecules. So far, in the United States and elsewhere, efforts to develop this green hydrogen have struggled, dogged by the expenses that still far exceed those of making the element from fossil fuels. But proponents of green hydrogen say that in a warming world, it will be an essential feedstock for fuels and industrial uses, and anticipate that production costs will decline substantially. ADVERTISEMENT 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/12/24 The shuttered Kenai LNG plant, photographed on Monday, July 1, 2024 in Nikiski. The plant stopped producing LNG in 2015 amid a decline in Cook Inlet natural gas supply. (Loren Holmes / ADN) Nikiski, where Clarke and Harrison would produce green hydrogen, was once a community of homesteaders. In the mid-20th century, it was transformed, by discoveries of crude and natural gas onshore and in Cook Inlet, into a hub of the Southcentral Alaska oil industry. The gas was found in such abundance that a Nikiski plant opened in 1968 to process it into ammonia and urea fertilizer. One year later, an export terminal began liquefying gas for shipment to Asian energy markets. Today, with Southcentral Alaska gas supplies greatly diminished, these two Nikiski plants have been mothballed, their facilities staffed by skeletal security crews. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/13/24 Two new wells are prepared for drilling at the Cook Inlet Natural Gas Storage Alaska facility on July 1 in Kenai. The facility takes natural gas from producers and stores the gas underground in a depleted gas field. Proponents of a green hydrogen project hope that depleted gas reservoirs could also be used to store this fuel. (Loren Holmes / ADN) But the fading gas industry could offer important assets to help launch hydrogen production. The ammonia plant could be repurposed to use hydrogen rather than natural gas. Geologic formations emptied of their hydrocarbons could also be part of the project. Some parts of these structures are currently used by utilities to store Cook Inlet natural gas — mostly made up of methane — for peak periods of demand. Some of these underground cavities, capped by impermeable layers of shale, might be able to hold the much smaller molecules of hydrogen. This would be a big deal because storage has emerged as a major challenge for any large-scale U.S. hydrogen project. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/14/24 Above-ground tanks are too expensive. Some states have underground salt domes that have been mined and could hold hydrogen. But depleted oil and gas fields scattered across a broad area of the country could be the most cost effective option. So far, they have not been used to hold any hydrogen, but initial research indicates some could be an affordable storage option while others hold microbes and minerals that would degrade the hydrogen. “If you inject it, you want to get 99 percent back, and do it efficiently so you don’t have huge costs,” said Joshua White, a Lawrence Livermore National Laboratory scientist who was a co-author of a Cook Inlet hydrogen storage assessment released earlier this year. That study analyzed 92 hydrocarbon formations, and ranked the top prospects that would appear to have a low risk of losing the hydrogen. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/15/24 Harrison and Clarke want a pilot effort that would inject hydrogen in a reservoir near Nikiski and prove — by 2030 — that the storage method will work. Only then could a large wind project move forward. By 2040, it could encompass more than 600 turbines spread across a 37-mile-long stretch of the lower inlet. “We’re working on developing the concept, and then bigger players can come in and take over,” Clarke said. Headwinds for offshore turbines A wind turbine spins on Fire Island off Anchorage. Cook Inlet, which is shown here in the background, has some of the best wind potential in the country, and Alaska Marine Power proposes a large offshore project that would generate electricity for hydrogen. (Loren Holmes/ADN) Elsewhere in the United States, even without Trump in the White House, offshore wind development has been buffeted by a series of setbacks. Orsted, a Denmark-based company, abandoned plans to build two wind farms off New Jersey as surging equipment costs eroded the projects’ profit potential. Earlier this year, a New York state authority, citing “technical and 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/16/24 commercial complexities,” opted not to finalize agreements for three offshore projects. On July 13, a turbine in the Vineyard Wind project off Massachusetts suffered a major failure, with a blade dropping into the ocean and some debris washing ashore on area beaches. Offshore wind development also has often faced powerful pushback. Opposition has included East, West and Gulf coast fishermen who are concerned about being displaced from some of their traditional fishing grounds. In Oregon, two federal offshore auctions drew strong opposition and concerns from Gov. Tina Kotek. Initially scheduled for Oct. 15, they were canceled in late September as most eligible bidders opted not to participate. In Lower Cook Inlet, the zone proposed for wind turbines does not appear to be in a major harvest area. But Alaska’s fishing industry is a powerful political force that would scrutinize any such development. Birds are another concern. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/17/24 The Tordrillo mountains rise behind wind turbines on Fire Island. Currently, this small wind farm is the only one generating electricity for Chugach Electric Association, which provides power to the Anchorage area. (Loren Holmes / ADN) Studies of European offshore wind farm projects have found they can displace some bird populations, and that turbines, as they do on land, can kill birds that collide with their blades. The southeast edge of lower Cook Inlet, the prime area for wind, reaches almost to the Barren Islands, which is a major summer breeding colony for hundreds of thousands of seabirds, including fork-tailed storm-petrels, common murres, tufted puffins and black-legged kittiwakes. These birds feed on plankton and fish in waters surrounding the islands, and some seabirds also find nourishment in Cook Inlet during the winter months. “There are hot spots where birds tend to forage a lot, but we really don’t know where they are,” said Arthur Kettle, a U.S. Fish and Wildlife biologist who does research on the Barren Islands. Clarke says that the Lower Cook Inlet wind project could be developed in phases, starting with a small number of turbines more than 30 miles west of the Barren Islands, and gradually expanding into areas where they would pose the fewest risks to birds. Despite the setbacks in the Lower 48, he remains bullish about the future of U.S. offshore wind. He is convinced that technology will keep improving, costs will decline and researchers will find new ways to reduce impacts to marine life. “There is no shortage of seabed for turbines,” Clarke said. Underground heat for power on the surface The island volcano of Augustine rises more than 4,000 feet above lower Cook Inlet. It is active, erupting most recently in 2006, 1986 and 1976. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/18/24 For the past two summers, GeoAlaska has financed crews who have gathered data about the geothermal potential of Augustine Volcano on an island in the Cook Inlet. (Anne Raup / ADN) This summer, geothermal survey crews spent several weeks camped on a barren, rocky site on the uninhabited island. They were hired by GeoAlaska, an Anchorage-based firm that holds more than 10,000 acres in exploration leases, and is trying to determine if the island’s volcanic heat sources can sustain a power plant. The results from an initial survey last year were promising, prompting GeoAlaska to triple the size of its exploration leases and undertake a larger, more detailed survey effort this year. Paul Craig, the company’s chief executive officer, expects the next step will be drilling a test well. “I think we have found indicators of a commercially viable geothermal reservoir on the south side of Augustine,” he said. “The truth serum, in this business, is the drill bit.” Craig is an Anchorage neuropsychologist who in the early 1990s invested in the Cook Inlet oil and gas industry, then decided to try to develop cleaner 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/19/24 sources of energy. In 2020, he founded GeoAlaska, and acquired leases at both Augustine and Mount Spurr, another volcano on the west side of Cook Inlet. Paul Craig is chief executive officer of GeoAlaska, which has been prospecting for geothermal energy on the flanks of Mount Augustine, an island volcano Cook Inlet. (Erik Hill / ADN archive) So far, Craig says his company’s best prospect is Augustine. He hopes that the island’s geothermal energy will be large enough to generate steam for a 50- to 150-megawatt plant, which would produce enough electricity for as many as 50,000 homes. This plant could offer stable, steady output that could provide baseline power to accompany the rollercoaster outputs of solar and wind farms. He estimates the total development costs, including construction of an undersea line to the mainland, at some $500 million. He is convinced this power would be a cheaper option than importing liquefied natural gas to 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/20/24 run Railbelt power plants. And his company has a minority stakeholder, Ignis Energy — a renewable power developer based in Houston — that could help to raise capital for the project. Building and operating a power plant on the side of an active volcano would pose challenges. Recent eruptions have been largely ash. But in centuries past, Augustine’s summit dome has periodically collapsed, sending debris crashing down to the sea. The volcano is well-monitored, so there would likely be plenty of warnings of any impending eruption to give plant operators time to evacuate. The company’s leases cover the southern half of the island, which offers the island’s most sheltered construction sites, and plants could be designed to withstand getting rained on by pumice. “We would shut everything down before an eruption,” Craig said. “But there is a risk.” Turning the tide on renewable electricity The Cook Inlet tides may be able to provide another, potentially huge, renewable energy resource. They are some of the strongest on the planet, and ranked as the nation’s top tidal energy prospect in a 2021 study by the National Renewable Energy Laboratory. Just as gusts can turn the propellers of a wind turbine, powerful tidal currents can drive an underwater turbine. The technology has been under development for decades with many setbacks, including repeated unsuccessful efforts to tap the tidal powers of Canada’s Bay of Fundy. Currently, the largest tidal project is MeyGen, off the coast of Scotland, which since 2018 has operated four turbines. In the U.S., no commercial tidal power plants operate, and federal investments have been key funding for research. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/21/24 Ocean Renewable Power Company, a Maine-based company with a branch office in Anchorage, used federal funds to install a small Kvichak River turbine that can provide, at peak production, half the power consumed by the southwest Alaska village of Igiugig. The company earlier this year received funding from the Energy Department to design a pilot test of tidal turbines in Cook Inlet that would include monitoring for the impacts on endangered Beluga whales and other marine life. Company officials are competing for an additional $29 million grant, scheduled to be awarded next year. This money would enable the first turbines, up to five megawatts in size, to be put in the water and tested by 2028. Cook Inlet would be a tough place for turbines to operate. Winter ice, silty waters and waves of sand that move along the bottom all could complicate the task of producing dependable power. The pilot project is planned to test three different turbines, one close to the bottom, another at midwater and the third at the surface. “It’s a very harsh environment. There’s no doubt about it,” said Doug Johnson, the company’s Alaska director of project development. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/22/24 Many rural communities in Alaska have long relied on diesel fuel for power generation. That’s an expensive option that has helped to spur the development of renewable power alternatives such as these wind turbines near Kotzebue. (Loren Holmes / ADN) Johnson is a geophysical scientist who spent much of his career contracting with major oil companies hunting for new prospects. As evidence of climate change intensified, he decided to shift to an energy source that would be sustainable in the 21st century. He worked on biomass gasification, then in 2006, shifted into tidal energy. In the decades ahead, Johnson thinks Cook Inlet tidal energy, like offshore wind power, has the potential to generate thousands of megawatts. He hopes that tidal power can be part of a renewable trifecta, with offshore wind and geothermal power all put to the task of making hydrogen for green fuels or other products such as low-carbon cement. But with his company’s current funding source tied to President Joe Biden’s push to develop renewable power, Johnson is keenly aware that fate can be fickle. 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/23/24 “If we see the administration change, this could go away in a heartbeat,” Johnson said. Next: Alaska utilities turn to renewables as costs escalate for fossil fuel electricity generation • • • Independent journalist Hal Bernton was a longtime reporter for The Seattle Times, and previously reported for the Anchorage Daily News and The Oregonian. Reach him at hbernton@gmail.com. ADVERTISEMENT Download Our App Newsletters Get The Newspaper Contact Us Terms of Use Privacy Policy Archives Reprints Customer Service Contact Us Advertise Troubleshooting © 2024 Anchorage Daily News. All rights reserved. Around the Web 10/8/24, 9:42 AM Veterans of Alaska’s oil industry look to blaze a renewable energy pathway in the state - Anchorage Daily News https://www.adn.com/business-economy/energy/2024/10/07/veterans-of-alaskas-oil-industry-look-to-blaze-a-renewable-energy-pathway-in-the-state/24/24 Six Alaska Communities Selected for Renewable Energy Projects https://knom.org/2024/09/20/six-alaska-communities-selected-for-renewable-energy-projects/ 1/4 Six Alaska Communities Selected for Renewable Energy Projects Wind turbines in St. Paul, Alaska. U.S. Department of Energy photo from Tanadgusix Corporation. Six communities across Alaska have been selected to join the latest cohort of a renewable energy program. ETIPP, the Energy Transitions Initiative Partnership Project, is funded by the U.S. Department of Energy. The project focuses on rural and island communities interested in developing renewable energy sources. Since its inception in 2020, the DOE’s ETIPP program has supported 32 communities across the U.S. They recently welcomed 25 new communities to the program, more than double the size of last year’s cohort. According to Senior Advisor on Communities and Energy Transitions, Caroline McGregor, the push is one piece of a nationwide effort to support clean energy. Six Alaska Communities Selected for Renewable Energy Projects https://knom.org/2024/09/20/six-alaska-communities-selected-for-renewable-energy-projects/ 2/4 “We are trying to move towards a more decarbonized economy and decarbonized energy system, but we have to bring everyone along on that. We want to ensure that the benefits of clean energy are equitably distributed, and want to make sure no communities are left behind." - Caroline McGregor, Senior Advisor U.S. DOE Six communities in Alaska were selected for this year’s cohort; Galena, Juneau, Kotlik, Kotzebue, Scammon Bay, and Saxman. The communities applied earlier this year and were selected by ETIPP in the late summer. For this round, McGregor said they prioritized projects on both technical merit and need. “There are these common threads of communities without a ton of resources trying to address these really big, complex challenges in their energy system,” McGregor said. “We prioritize communities that are historically disenfranchised or underserved by clean energy investments. Tribal communities are a great example of that.” With their selection, each community will begin an 18-month program with ETIPP’s regional partner, Renewable Energy Alaska Project (REAP), to develop solutions fit for their unique energy needs. The program also includes virtual and on-the-ground energy education, consultation, and technical planning. Six Alaska Communities Selected for Renewable Energy Projects https://knom.org/2024/09/20/six-alaska-communities-selected-for-renewable-energy-projects/ 3/4 A map of ETIPP's 2024 cohort. Graphic courtesy of U.S. DOE. Towards the end of the program, REAP focuses on helping communities find funding sources like grants from the USDA or Denali Commission. According to REAP’s Microgrid Project Manager, Haleigh Reed, this approach ensures that communit ies have the resources they need to see projects through to completion. “We're not leaving them with this plan and these models and then telling them ‘good luck’. We are also handing them the tools to take those next steps,” Reed said. Each community has unique aspirations for the project. The Native Village of Kotzebue has set a goal of transitioning to 100% renewable energy. The Organized Village of Saxman plans to implement a tidal energy project, potentially making it one of the first in Alaska to harness energy from the ocean’s tides. In Juneau, the project will focus on the deployment of heat pumps and enhancing electric vehicle infrastructure. The potential benefits of renewable energy sources are particularly profound in parts of the state disconnected from the Railbelt power grid. There, solutions like solar or wind power afford communities the ability to generate their own electricity year round, free from the seasonal-availability of diesel by barge. Beyond the environmental benefits of transitioning away from diesel purchased and produced from elsewhere in the world, Reed said renewables also give tribal Six Alaska Communities Selected for Renewable Energy Projects https://knom.org/2024/09/20/six-alaska-communities-selected-for-renewable-energy-projects/ 4/4 communities an opportunity to earn energy independence. That in turn, can benefit their economy. “When you have tribal ownership of a project of energy generation, it could be a number of local organizations that own the project, but that money is going to stay in the community. I think that's really resonating with communities, and it's something that is building momentum in Alaska.” - Haleigh Reed, Microgrid Project Manager, REAP New this year is a $50,000 award to each community for time spent working on the project. McGregor hopes the funds will help participating communities stay engaged. “The idea is to really acknowledge and recognize that there are a lot of demands on people's time, especially in small villages, people have to wear a lot of hats. $50,000 isn't all the money in the world, but it's a meaningful amount in many places, and we hope that's felt and appreciated,” McGregor said. With this year’s cohort, 15 Alaskan communities have been selected for ETIPP since 2020. The six new additions join Igiugig, Nikolski, St. George, McGrath and Sitka in REAP’s portfolio of active projects. New Alaska utility energy storage system to support Railbelt transmission https://www.alaskasnewssource.com/2024/10/08/new-alaska-utility-energy-storage-system-support-railbelt-transmission/ 1/2 New Alaska utility energy storage system to support Railbelt transmission Chugach Electric Association and Matanuska Electric Association officials celebrated the unveiling of a new Battery Energy Storage System (BESS) Monday in an effort to improve energy storage for Southcentral Alaska and beyond.(Rachel McPherron/Alaska's News Source) By Casandra Mancl Published: Oct. 7, 2024 at 5:45 PM AKDT | Updated: 17 hours ago ANCHORAGE, Alaska (KTUU) - Chugach Electric Association and Matanuska Electric Association officials celebrated the unveiling of a new Battery Energy Storage System (BESS) Monday in an effort to improve energy storage for Southcentral Alaska and help prevent mass electrical outages in the future. New Alaska utility energy storage system to support Railbelt transmission https://www.alaskasnewssource.com/2024/10/08/new-alaska-utility-energy-storage-system-support-railbelt-transmission/ 2/2 The battery is a Tesla megapack 2XL lithium iron-phosphate (LPF) battery, with a 40- megawatt, two-hour storage system, to help keep the Railbelt utilities running. Chugach Electric said Monday that the system will be used as a backup during power issues, such as transmission line interruptions, generation issues, or other load shed events. It can also respond to power disruptions, injecting or absorbing power as needed to stabilize the grid. Chugach Electric Chief Operating Officer Andrew Laughlin said the addition takes the companies’ efficiencies to “a whole other level.” “[I]n these situations where we have generators trip, and for example, if we have a load shed event,” he explained, “this will help us avoid that in the future, because these batteries will both be able to deliver power, and something that a traditional turbine generator can’t do is it’ll also be able to absorb power.” The battery was installed just south of the Chugach headquarters building in Anchorage and is expected to lower Chugach and MEA’s natural gas consumption by about 5% annually, according to officials. Copyright 2024 KTUU. All rights reserved. Science Politics Justice & Health Fossil Fuels Clean Eney Donate ELECTION 2024: What's at Stake fo the Climate Clean Eney Could Naturally O ccurr ing Hydrogen Underground B e a Gusher of Cle an Energy in Alaska? Afte wokin in the state’s oil industy and ovenment aencies oveseein fossil fuels , this deame is seachin fo deposits of the clean-bunin as that don’t need to be ceated fom natual as o wate. By Hal Benton Octobe 7, 2024 Shae this aticle Republish 10/8/24, 10:13 AM Could Naturally Occurring Hydrogen Underground Be a Gusher of Clean Energy in Alaska? - Inside Climate News https://insideclimatenews.org/news/07102024/alaska-naturally-occurring-hydrogen-underground/1/16 Mak Myes , a commissione with the United States Actic Reseach Commission, sees eoloic hydoen as a pomisin path towad educin lobal cabon emissions. Cedit : Loen Holmes/ADN This stor y was produced in a collaboration between Inside Climate News and the Anchorage Daily News. Alaska geologist Mark Myers hopes that underground reserves of hydrogen could fuel a new state energy industry. His dreams were launched by a well drilled in the African country of Mali that yields enough hydrogen to fuel a village electric power plant. Myers is hopeful that hydrogen deposits also exist in Alaska in a metamorphic rock called serpentinite, which is often found in subduction zones where one plate of the Earth’s crust is pushed underneath another. 10/8/24, 10:13 AM Could Naturally Occurring Hydrogen Underground Be a Gusher of Clean Energy in Alaska? - Inside Climate News https://insideclimatenews.org/news/07102024/alaska-naturally-occurring-hydrogen-underground/2/16 “Do we have those source rocks?” Myers asked. “The answer is all over the place. But the big question is how much of this hydrogen gets created—and preser ved. We don’t know.” Read Moe Veterans of Alaska’s Oil Industry Look to Blaze a Renewable Energy Pathway in the tate By Hal Benton Myers’ push to find hydrogen reservoirs is driven by his concerns about climate change spurred by fossil fuel combustion. He is convinced that scientific models of a warming Earth are accurate, and justify a concerted effort to move off of coal, oil and gas. “How is Alaska going to make the energy transition?” he asked. “What is it going to look like in the post-fossil fuel world?” This is blunt talk from a man who spent more than four decades in Alaska’s oil industry and state government, where his resume included ser vice as the chief of the Oil and Gas Division and a stint as the Department of Natural Resources commissioner. He also, under the administration of President George W. Bush, headed up the U.S. Geological Survey, and is active in academia as a vice chancellor of research at the University of Alaska Fairbanks. Myers, who currently serves as a presidential appointee to the U.S. Arctic Research Commission, said he gravitated to hydrogen as an energy source that could generate electricity, help the power industry and make transportation fuels. 10/8/24, 10:13 AM Could Naturally Occurring Hydrogen Underground Be a Gusher of Clean Energy in Alaska? - Inside Climate News https://insideclimatenews.org/news/07102024/alaska-naturally-occurring-hydrogen-underground/3/16 Exploe the latest news about what’s at stake fo the climate duin this election season. Read So far, much of the federal research has focused on ways to make green hydrogen, which can be extracted from water in a process that requires lots of electricity from clean power sources that do not release greenhouse gases. But a potentially cheaper alternative would be reservoirs of naturally forming hydrogen that could be big storehouses of energy. In the U.S. and elsewhere, exploration is now underway to try to find some of those potentially large sources of energy. The subsurface hydrogen in Mali was discovered in 1987 by well drillers looking for water. Later, more than two dozen boreholes helped to define the boundaries of these reservoirs, which keep recharging with hydrogen. Since 2012, wells producing 98 percent hydrogen gas have provided fuel for the power plant serving the village of B ourakebougou, according to a study of the reservoirs published in 2023 in Nature. A model developed by the U.S. Geological Survey suggests that underground reservoirs of hydrogen exist in other places, and a company drilling in south Australia has reported significant hydrogen concentrations of more than 90 percent as well as helium in the gases brought to the surface. Technologies also may evolve to harvest hydrogen as 10/8/24, 10:13 AM Could Naturally Occurring Hydrogen Underground Be a Gusher of Clean Energy in Alaska? - Inside Climate News https://insideclimatenews.org/news/07102024/alaska-naturally-occurring-hydrogen-underground/4/16 it migrates through rock. Another possibility would be injections of water that could stimulate hydrogen production from some formations. Most of these hydrogen resources are likely to be in areas too deep, too inaccessible or in quantities too small to profitably extract, according to Geoffrey Ellis, a U.S. Geological Survey research geologist, who helped to develop the model. And in some prospective hydrogen reservoirs, the gas may have leaked out or been consumed by microbes. Still, if a small fraction of these reserves could be tapped, a major new source of carbon-free energy could be developed. Ellis is now leading an effort to develop maps of the areas in the continental U.S. most likely to contain hydrogen. So far, the top prospects appear to be in the Great Plains and the Atlantic coastal plain. Myers is eager for the U.S. Geological Survey to develop a similar model that could guide hydrogen exploration in Alaska. In October, he will be joined by Ellis at a three-day hydrogen workshop in Fairbanks jointly sponsored by the Arctic commission and the university’s Geophysical Institute. “The effort now is to pinpoint where it could be,” Myers said. “Then, we need to do basic geologic field work. So, start looking at the rocks.” 10/8/24, 10:13 AM Could Naturally Occurring Hydrogen Underground Be a Gusher of Clean Energy in Alaska? - Inside Climate News https://insideclimatenews.org/news/07102024/alaska-naturally-occurring-hydrogen-underground/5/16 ARGUMENT An expert's point of view on a current event. Alaska Geothermal Power Can Fuel U.S. Indo -Pacif ic Strategy Opportunities on the Pacific Rim can kick-star t a critical sector. By Gabriel B. Collins, a fellow at the Center for Energy Studies at Rice University’s Baker Institute for Public Policy and a senior visiting research fellow at the Oxford Institute for Energy Studies. My FP: Follow topics and authors to get straight to what you like. Exclusively for FP subscribers. Subscribe Now | Log In OCTOBER 7, 2024, 7:00 AM A frozen landscape surrounds the waters of Prince William Sound in Valdez, Alaska, on April 1, 2004. DAVID MCNEW/GETTY IMAGES View Comments (0) 10/8/24, 10:07 AM Alaskan Geothermal Energy Can Kick-Start a Critical Strategic Sector https://foreignpolicy.com/2024/10/07/alaska-geothermal-military-china/?tpcc=recirc_latest062921#cookie_message_anchor 1/8 Strategic energy technologies often start small but can scale quickly with judicious front-end policy support if they possess competitive thermodynamic and technological advantages. Since World War II, the U.S. Defense Department and other agencies have played key roles in helping nuclear power, grid-size batteries, and other new energy concepts achieve commercial scale. Geothermal energy development now presents the next such development opportunity. As the U.S. Energy Information Administration explains, “[t]he slow decay of radioactive particles in the Earth’s core” creates hot rock and subsurface water that can be tapped for direct heat and to create steam energy that spins turbines and generates electricity. The Pacific Rim is one of the world’s most promising prospective places for expanding geothermal power development, with advantages for both local energy security, emissions reduction, and U.S. geoeconomic position. Alaska can anchor this new geoeconomic energy vector. America’s largest and westernmost state features strategically located ports, cities, and current (and likely future) military facilities that often sit atop or near areas of high geothermal potential. To realize this potential requires financing “first of a kind” demonstration projects that, if successful, can de-risk the resource and catalyze broader regional scale-up. Achieving eventual multi-gigawatt scale would both enhance U.S. strategic resilience and, critically, the strategic resilience of allies such as Taiwan who face coercion, especially over energy, by China. Key government agencies’ substantial facility footprints, need for resilience, and ability to underwrite power purchase agreements can make them transformative early adopters. There appears to be the political will to get this done, with Ravi Chaudhary, the U.S. Air Force assistant secretary for energy, installations, and the environment, saying in September 2023, “Geothermal sources strengthen our energy grids and give us the ability to isolate threats before they impact our operations. This type of capability will translate into victory in a high-end fight.” 10/8/24, 10:07 AM Alaskan Geothermal Energy Can Kick-Start a Critical Strategic Sector https://foreignpolicy.com/2024/10/07/alaska-geothermal-military-china/?tpcc=recirc_latest062921#cookie_message_anchor 2/8 Alaska’s geographic importance coincides with emerging U.S. technical excellence. Geothermal power, like high tech and aerospace, is a sector of American competitive advantage that can be leveraged as part of a broader energy abundance agenda in a region that is leading global energy transitions. In the geothermal space, firms such as Eavor, Fervo Energy, GreenFire Energy, Sage Geosystems, Teverra, and Zanskar Geothermal and Minerals are developing cutting edge approaches that leverage the massive subsurface expertise and experience U.S. companies have built through drilling and fracking tens of thousands of shale oil and gas wells over the past 20 years. The new generation of enhanced geothermal wells use cutting-edge oil and gas techniques including horizontal drilling, hydraulic fracturing, and distributed fiber optic sensing to monitor reservoir conditions. They also dramatically expand the number of locations suitable for geothermal power development and, because well pairs can be added modularly, help manage project developers’ financial risk. U.S. firms enjoy unique competitive advantages here, ones that if harnessed through smart policy can help advance energy security interests on our own soil in Alaska and the Aleutians, as well as in Japan, Indonesia, the Philippines, and Taiwan. Geothermal energy offers the 24/7/365 baseload electricity supplies that countries need for building out and operating competitive industrial bases. Because it can continually run regardless of weather or sunlight, every megawatt of geothermal power that comes online can displace coal, gas, or oil-based dispatchable generation. Climate benefits follow. Furthermore, unlike hydropower and many other thermal power plant types, geothermal is substantially decoupled from drought risk. It is also potentially capable of load-following to fill gaps in wind and solar generation, a capability that Sage Geosystems has recently demonstrated at megawatt-scale. Geothermal generation’s engagement of physical heat also opens possibilities for supporting food cultivation in greenhouses and distillation of seawater. Where warranted by remoteness (Aleutian Islands) or by strategic circumstances (Taiwan), 10/8/24, 10:07 AM Alaskan Geothermal Energy Can Kick-Start a Critical Strategic Sector https://foreignpolicy.com/2024/10/07/alaska-geothermal-military-china/?tpcc=recirc_latest062921#cookie_message_anchor 3/8 geothermal power can also potentially support green hydrogen production and liquid fuel synthesis. Geothermal power also brings security benefits. Policymakers are recognizing in the wake of Russia’s invasion of Ukraine that during industrial warfare, energy assets can and will be targeted. Fossil fuel generation facilities on islands are the most vulnerable because an adversary can trigger blackouts through interdicting seaborne fuel imports and does not even need to strike on land to create potentially strategic effects. This is true for vital U.S. territories, including the Aleutian islands of Unalaska and Adak; Shemya Island; Guam; and Hawaii. For Taiwan, which faces the real risk of a blockade by China, each gigawatt of geothermal power brought online could, potentially displace about 1.25 million tons per year of liquified natural gas imports, or roughly 6 percent of the island’s total import volume in 2023. That estimate assumes that the geothermal facilities run at a 90 percent utilization rate and that the LNG would have been used to generate electricity in modern combined cycle power plants with a 50 percent thermal efficiency. Geothermal projects could be sized to power all, or at least a major part, of some of these key islands’ electricity needs in way that helps resist potential blockades. Geothermal also has the advantage of being less politically controversial than nuclear power and, unlike contemporary nuclear generators, can be deployed in increments more modularly sized to the local market. Accelerated geothermal energy developments in the Indo -Pacific, perhaps backed by the U.S. International Development Finance Corp. or Office of Strategic Capital as part of a low-carbon energy abundance package, would also offer a template for U.S. firms to play leading roles in Latin America and East Africa, two other priority regions that are— pun fully intended—geothermal power hotspots. The potential global addressable market in key regions of interest encompasses tens of gigawatts of generation capacity at the outset—a major commercial and strategic opportunity. If the first advanced 10/8/24, 10:07 AM Alaskan Geothermal Energy Can Kick-Start a Critical Strategic Sector https://foreignpolicy.com/2024/10/07/alaska-geothermal-military-china/?tpcc=recirc_latest062921#cookie_message_anchor 4/8 geothermal projects pan out commercially, the market space would likely expand substantially. Present energy security concerns, geopolitical conditions, and the apparent readiness of new geothermal approaches suggest the timing is propitious for a test case that puts U.S. policy muscle behind emerging domestic geothermal technological excellence. Alaska and the Aleutian Islands, in particular, offer an excellent starting point. All modern energy systems need baseload power—resources that deliver when it is dark, subzero, stormy, etc. In the highly volcanic Aleutians’ case, this would ideally be geothermal power. The idea of geothermal in the Aleutians is not new; in the 1970s, the Navy studied using geothermal power to replace about half of Adak’s requirements which, at the time, totaled nearly 9 million gallons of imported JP-5 jet fuel per year The geological potential is real, with temperature gradients of 80 degrees Celsius per kilometer of depth on the north end of Adak Island that exceed those found in Utah where Fervo is now developing a utility-scale enhanced geothermal project with a 400 MW capacity. The backdrop features both strategic and commercial drivers. Enter Dutch Harbor, the main settlement on Unalaska and the United States’ largest fisheries port by volume. Unalaska offers a combination of major volcanism and corresponding geothermal power potential, strategic position, and local desire to find energy sources better than expensive and polluting diesel power generation. Unalaska’s annual diesel fuel needs for power generation can run as high as 3.6 million gallons per year, which at a diesel cost of $4 a gallon means more than $14 million annually. In addition to high costs, diesel generators release substantial air emissions and bring with them the risk of fuel spills, which threaten sensitive local ecosystems and are challenging to remediate in the harsh Aleutian environment. The area has long been recognized as a potential geothermal hotspot, with the Ounalashka Corp. saying that 11 previous development attempts having failed for various reasons to bring a project to fruition. In the latest incarnation, Ounalashka Corp. 10/8/24, 10:07 AM Alaskan Geothermal Energy Can Kick-Start a Critical Strategic Sector https://foreignpolicy.com/2024/10/07/alaska-geothermal-military-china/?tpcc=recirc_latest062921#cookie_message_anchor 5/8 has partnered with Chena Power to try to commercially develop a 30 MW geothermal power project utilizing subsurface hydrothermal resources associated with the Makushin Volcano on Unalaska Island. Adding next-generation projects on Unalaska and its neighbor Akutan could allow the area to potentially become a major geothermal hub, creating sufficient energy abundance to go beyond just displacing local diesel generation. The commercial case includes avoidance of steep fuel costs, cost-effective and ecologically-friendlier support for additional seafood processing plant expansions, desalination of seawater, local cultivation of fresh vegetables in greenhouses, and potentially, even producing liquid fuels based on green hydrogen. Current geothermal power development attempts on Unalaska now have a higher probability for success because the stakes in local energy security in the Aleutians, and more broadly for the United States and its allies and partners around the Pacific Rim, are higher than they have been for decades. The Aleutian Arc offers incredibly strategic real estate—with at least three militarily relevant operational airfields on Unalaska, Adak, and Shemya that are within seven flight hours of all key flashpoints in East Asia. Nome, which sits north of the islands, is now in the early stages of a $600 million upgrade to create a deepwater port capable of handling any U.S. Navy vessel other than aircraft carriers. And to the south, the U.S. Coast Guard recently announced that it will homeport its new Arctic icebreaker in Juneau, a vessel that will steam near or between various Aleutian Islands each time it heads into the high north. Russia and China have in their own way highlighted the Aleutians’ importance with periodic joint warship cruises and recently, a flight into the region by Chinese and Russian bomber aircraft. There is also potential for re-opening the Navy base on Adak that was closed in 1997 and for expanding facilities in Shemya, which already hosts key early warning radars. Other islands in the chain—including Attu and Kiska (which Japan seized in 1942), Amchitka, Atka, and Tanaga—hosted facilities in World War II; in Attu’s case, as recently as 2010, when Casco Cove Coast Guard Station closed. These footprints could be re-provisioned. 10/8/24, 10:07 AM Alaskan Geothermal Energy Can Kick-Start a Critical Strategic Sector https://foreignpolicy.com/2024/10/07/alaska-geothermal-military-china/?tpcc=recirc_latest062921#cookie_message_anchor 6/8 The islands also offer a barrier to keep Chinese submarines from accessing the Bering Sea (just like the NATO focus on the Greenland-Iceland-U.K. Gap in the Cold War), and in the future, could offer bases for long range land-based strike systems. All these concepts require abundant energy to achieve the resilience needed to weather the unfolding United States-China cold war and, if necessary, actual kinetic conflict. Aleutian geothermal resources, through both the legacy project at Makushin Volcano and future projects using next generation approaches, would turn the Dutch Harbor area into an Aleutian energy hub. If it succeeds, similar approaches can likely be used further west at Adak and Shemya. Successful Aleutian geothermal projects can also provide templates usable around the Indo-Pacific (especially in Taiwan, Japan, and Indonesia) and potentially in other regions of interest with rich geothermal resources, such as Central America and East Africa. The intense competition unfolding in the region means time is of the essence. A U.S. Energy Department analysis notes that to achieve commercial scale in the next generation geothermal space, early-stage developments will likely require “unique developer classes with strategic motivations” who “will likely fund projects entirely with equity.” The Energy Department estimates that at present, a 30 MW next-generation geothermal project of the type needed in an Aleutian context likely costs about $450 million to complete all surface and subsurface work. Such a project could be built with a combination of a grant and a low-interest federal loan, on the condition that development emphasizes next generation geothermal technologies of U.S. origin. Abundant geothermal energy could revolutionize Aleutian energy supplies and set the stage for a broader geoeconomic push to scale new geothermal opportunities in Taiwan, Indonesia, the Philippines, and elsewhere across the Indo-Pacific to the benefit of partner and U.S. interests alike. This article exclusively consists of the author’s personal views and does not reflect the assessments or positions of any entity he is associated with. 10/8/24, 10:07 AM Alaskan Geothermal Energy Can Kick-Start a Critical Strategic Sector https://foreignpolicy.com/2024/10/07/alaska-geothermal-military-china/?tpcc=recirc_latest062921#cookie_message_anchor 7/8 My FP: Follow topics and authors to get straight to what you like. Exclusively for FP subscribers. Subscribe Now | Log In Gabriel B. Collins is a fellow at the Center for Energy Studies at Rice University’s Baker Institute for Public Policy and a senior visiting research fellow at the Oxford Institute for Energy Studies. 10/8/24, 10:07 AM Alaskan Geothermal Energy Can Kick-Start a Critical Strategic Sector https://foreignpolicy.com/2024/10/07/alaska-geothermal-military-china/?tpcc=recirc_latest062921#cookie_message_anchor 8/8 https://www.newsminer.com/news/local_news/rural-energy-conference-highlights-innovation- partnerships/article_4254db68-80fe-11ef-9d43-fffa04c1024b.html Rural Energy Conference highlights innovation, partnerships Jack Barnwell Oct 3, 2024 A group of visitors stands next to three new solar arrays in the Northwest Alaska village of Buckland, 2018. The Westmark Hotel’s Gold Room hummed with an ecstatic charge as attendees at the Alaska Rural Energy Conference chatted and spoke with one another Wednesday morning. The annual conference reported more than 400 registered people from across the state. The morning welcome, emceed by Southeast Conference’s Robert Venables, highlighted both opportunities and challenges rural Alaska communities face, whether in Interior Alaska, on the North Slope or along the Aleutian Islands. 10/8/24, 10:05 AM Rural Energy Conference highlights innovation, partnerships | Local News | newsminer.com https://www.newsminer.com/news/local_news/rural-energy-conference-highlights-innovation-partnerships/article_4254db68-80fe-11ef-9d43-fffa04c102…1/4 Betty Ross, the tribal client services deputy director for the Tanana Chiefs Conference, noted Interior Alaska could be a land of drastic weather changes. “We know with all the volatility, there are times that it can be a little challenging,” Ross said. “One of the things we’ve realized in Fairbanks is that we spend a lot more than 10% of our income on energy costs.” Ross referenced a recent University of Alaska Fairbanks Alaska Center for Energy and Power report, which demonstrated the Fairbanks North Star Borough had the highest energy costs on the Railbelt and the highest energy burden. On a national stage, Lower 48 households spend 3% of their income on energy. “When doing the comparison, it is rather difficult for some of our families,” Ross said. “These conferences are very important for our people in Alaska no matter where you are.” She noted that TCC’s member communities have benefited from federal grants and funding to bolster their energy independence. Galena is in the middle of building a solar array and battery energy storage system (BESS). It had previously completed a pilot project last year to see if it had a full-scale application. Ross said the village of Hughes was successful in implementing a hybrid solar-diesel system. Hughes installed a 120-kilowatt solar array and 356-kilowatt-hour BESS that powers the village for at least five hours a day without using its diesel generator system. TCC received a $62.5 million federal grant this year, part of which will pay for a solar project on Bader Road in partnership with the Alaska Native Tribal Health Consortium and Alaska Housing Finance Corporation. The solar array could produce as much as 1.183 megawatts of power through power purchase agreement. “TCC has received nearly $100 million in state and federal grants for energy,” Ross said. Tanya Kaquatosh, Doyon Limited’s senior vice president of administration, expounded on the challenges and solutions rural and Indigenous communities face. 10/8/24, 10:05 AM Rural Energy Conference highlights innovation, partnerships | Local News | newsminer.com https://www.newsminer.com/news/local_news/rural-energy-conference-highlights-innovation-partnerships/article_4254db68-80fe-11ef-9d43-fffa04c102…2/4 “It’s important that we provide heat and electricity for our families,” Kaquatosh said. “We need to diversify our portfolio of energy in our communities and this conference is the place to do it.” She noted no one solution fits every community’s needs. “It takes creativity and innovation at a community level,” Kaquatosh said. Kaquatosh is originally from Hughes and said she’s proud of the village’s hybrid solar-diesel system. “The project started in 2015 and took multiple partnerships and entities to figure out that system,” Kaquatosh said. “The interesting thing is when the solar panels are providing energy, the lights are silent but the lights are on. Maybe we’ve all gotten used to the hum of the [diesel] generators.” Fairbanks Mayor David Pruhs said “no community’s energy needs are the same.” He noted that the University of Alaska Fairbanks’ new coal-fired combined power and heat plant is one example. A planned commercially operated nuclear microreactor pilot project at Eielson Air Force Base is another example. “With that technology and knowledge, they’re looking at putting that baby in rural Alaska,” Pruhs said. However, Pruhs noted that Fairbanks suffers from supply chain issues — an issue that is even more severe for rural communities. “You’re here (at the conference) for a reason, for knowledge, meeting people,” Pruhs. “That’s the Alaksa way, we help people.” Fairbanks North Star Borough Mayor Bryce Ward called rural communities the “tip of the spear when developing innovative ideas to reduce the cost of energy.” “People look to Alaska to see how we do things because we are setting the stage for many of these ideas on a wider scale,” Ward said. 10/8/24, 10:05 AM Rural Energy Conference highlights innovation, partnerships | Local News | newsminer.com https://www.newsminer.com/news/local_news/rural-energy-conference-highlights-innovation-partnerships/article_4254db68-80fe-11ef-9d43-fffa04c102…3/4 jbarnwell The opening session included video remarks from Alaska Sens. Lisa Murkowski and Dan Sullivan and Rep. Mary Peltola, all of whom highlighted Alaska’s unique energy needs and opportunities. Murkowski encouraged rural communities to partner with state and federal entities and secure federal funding under the Bipartisan Infrastructure Act and Inflation Reduction Act. She also issued a reminder that the funding is starting to dwindle as the federal laws are on a downward slope. Sullivan noted Alaska remains an “all the above energy state,” whether it includes solar, wind, hydroelectric, geothermal, oil and natural gas. “We need to be able to utilize all these power sources for all our communities in the best way,” Sullivan said. At the same time, he stated federal policies, such as permitting, must be addressed. He and Peltola are working on legislation to relax some of the stringent permitting policies. Peltola recognized Alaska’s need for energy in urban and rural Alaska. “Without affordable energy, we don’t have an economy,” Peltola said. She said Alaska’s Power Cost Equalization program — which offsets rural energy prices based on the cost of Railbelt communities like Fairbanks and Anchorage — needs an overhaul. Peltola and Murkowski noted the hundreds of millions of dollars in federal grants, zero-interest loans and tax credits will go a long way to improving both rural and urban Alaska energy needs in the long term. The Rural Alaska Energy Conference runs through Friday, with several panels and networking on a variety of topics, from workforce development and housing energy solutions to the integration of renewable and traditional energy grids. Contact reporter Jack Barnwell at 907-459-7587 or jbarnwell@newsminer.com. 10/8/24, 10:05 AM Rural Energy Conference highlights innovation, partnerships | Local News | newsminer.com https://www.newsminer.com/news/local_news/rural-energy-conference-highlights-innovation-partnerships/article_4254db68-80fe-11ef-9d43-fffa04c102…4/4 ECONOMY & ENVIRONMENT Alaska natural gas crunch is increasing demand for a traditional fuel — coal With cheap gas-red power now unavailable, the biggest utility in Fairbanks has shelved plans to shut down one of its coal-red plants BY: JAMES BROOKS - SEPTEMBER 24, 2024 5:58 AM    ✉  ⎙  A coal-red power plant is seen in Healy, Alaska, not far from Denali National Park and Preserve. (Cropped photo by Craig Talbert republished under Creative Commons license) Southcentral Alaska’s natural gas crunch is boosting demand for coal-red power hundreds of miles inland, a sign that a looming supply crisis will have far-reaching consequences across Alaska. In a late-August ling with the state’s utility regulator, the electrical cooperative for Fairbanks said it had signed a six-year contract with Usibelli Coal Mine to supply Healy 2, a troubled coal-red power plant.  P A R T O F S T AT E S N E W S R O O M  10/8/24, 2:40 PM Alaska natural gas crunch is increasing demand for a traditional fuel — coal • Alaska Beacon https://alaskabeacon.com/2024/09/24/alaska-natural-gas-crunch-is-increasing-demand-for-a-traditional-fuel-coal/1/6 Until February, Fairbanks’ cooperative, Golden Valley Electric Association, had planned to shut down Healy 2 because of its high maintenance and operating costs. “The greater concern now is that the natural gas shortage in the Cook Inlet will worsen, resulting in a potentially critical situation for the Alaska Railbelt utilities starting in 2027,” GVEA said in the ling. Since 2022, the largest natural gas supplier in Southcentral Alaska has warned about an impending supply crunch for the region.  Natural gas is the principal source of home heating and electricity in Anchorage and the surrounding area, and Cook Inlet has ample supplies of underground gas, but gas-sellers have failed to drill enough new wells to keep up with demand.  Experts expect that by the end of the decade, there won’t be enough natural gas to meet demand.  The eects of that crisis stretch from Homer to Fairbanks and Delta Junction, encompassing more than two-thirds of Alaska’s residents. “It’s not just a Southcentral issue. It certainly impacts us here up in Fairbanks as well,” said Ashley Bradish, GVEA’s director of external aairs. Fairbanks generates most of its power via diesel and coal-red generators and has some of the highest prices for home electricity on the Railbelt.  Starting in 2023, it began buying limited amounts of cheaper gas- red power from Southcentral via the 170-mile Alaska Intertie, which threads through the Alaska Range. It also bought what the utility refers to as “economy energy” from Southcentral utilities. “In 2023, generation from those two sources made up 10 percent of GVEA’s supply mix. The loss of economy energy purchases in 2024 dropped this number to 6 percent. Starting January 2025, purchases up the Intertie from natural will be at 0 percent,” the utility said in its regulatory ling. During a cold snap this past winter when natural gas supplies ran low, the intertie actually ran in reverse, with GVEA sending a small amount of power south, Bradish said.  10/8/24, 2:40 PM Alaska natural gas crunch is increasing demand for a traditional fuel — coal • Alaska Beacon https://alaskabeacon.com/2024/09/24/alaska-natural-gas-crunch-is-increasing-demand-for-a-traditional-fuel-coal/2/6 published by the federal Energy Information Administration. Healy 2’s closure, sought by environmental groups, would have meant a signicant decline. The new contract likely means stable consumption levels through the end of the decade. GVEA, like Alaska’s other utilities, is encouraging the development of renewable power — things like wind and solar. But also like Alaska’s other utilities, it still needs what’s known as “base load” power, something that can be turned on when the wind stops blowing or a cloud blocks the sun.  “It is essential that GVEA have in place a fuel source that is aordable, readily available, and can be relied on for the years ahead. With GVEA’s loads being fairly stable for the foreseeable future, the importance of meeting the existing load requirements and having a reliable source of energy are paramount, thus justifying the need for the 2024 Agreement,” the cooperative said in its August ling. In parts of the Lower 48, the electrical grid is dense enough that it can easily share variable power sources like wind and solar. If the wind stops blowing in one area, a windy spot nearby can simply take up the slack.  Alaska’s Railbelt electrical grid currently struggles under those scenarios, but that’s beginning to change. AEA, under Thayer, recently received a $200 million grant to upgrade parts of the grid in Southcentral Alaska.  A second phase of the project will upgrade the intertie to Fairbanks.  AEA’s Bradley Lake hydropower plant currently oers some of the cheapest electrical power in the Railbelt, and AEA is planning an expansion.  Thayer said the Bradley Lake power wouldn’t completely solve the natural gas problem, but it would help by allowing utilities to use gas for home heating instead of electricity. “At the end of the day we use the natural gas for not only electrifying our homes, but also home heating. I don’t care where my electric power comes from, wind, solar, hydro, natural gas — whatever — but I denitely want that thermostat to work,” he said. 10/8/24, 2:40 PM Alaska natural gas crunch is increasing demand for a traditional fuel — coal • Alaska Beacon https://alaskabeacon.com/2024/09/24/alaska-natural-gas-crunch-is-increasing-demand-for-a-traditional-fuel-coal/4/6 Bradley Lake could be a x for Southcentral, but it isn’t clear whether it will help Fairbanks. According to GVEA’s latest power cost reports, the cost to generate and ship dam power to GVEA is greater than the cost to generate and ship coal power, even from Healy 2.  If that holds true in the coming years, coal may be a key part of Alaska’s energy picture for many more years to come.  YOU MAKE OUR WORK POSSIBLE. S U P P O R T FAIRBANKS HEALY R E P U B L I S H Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. We ask that you edit only for style or to shorten, provide proper attribution and link to our website. AP and Getty images may not be republished. Please see our republishing guidelines for use of any other photos and graphics. JAM ES B RO O KS ✉ James Brooks is a longtime Alaska reporter, having previously worked at the Anchorage Daily News, Juneau Empire, Kodiak Mirror and Fairbanks Daily News-Miner. A graduate of Virginia Tech, he is married to Caitlyn Ellis, owns a house in Juneau and has a small sled dog named Barley. He can be contacted at jbrooks@alaskabeacon.com. Alaska Beacon is part of States Newsroom, the nation’s largest state- focused nonprot news organization. M O R E F R O M A U T H O R REL AT E D N E WS 10/8/24, 2:40 PM Alaska natural gas crunch is increasing demand for a traditional fuel — coal • Alaska Beacon https://alaskabeacon.com/2024/09/24/alaska-natural-gas-crunch-is-increasing-demand-for-a-traditional-fuel-coal/5/6 Governor Dunleavy Establishes Final Eklutna Fish and Wildlife Program https://gov.alaska.gov/governor-dunleavy-establishes-final-eklutna-fish-and-wildlife-program/ 1/2 Governor Dunleavy Establishes Final Eklutna Fish and Wildlife Program Oct 2, 2024 Today Governor Mike Dunleavy established the Final Eklutna Fish and Wildlife Program which will restore year-round water flows to 11 of the 12 miles of the Eklutna River and creates a framework for adaptive management. The Governor is required by a 1991 agreement to establish a final Fish and Wildlife Program for the protection, mitigation of damages to, and enhancement of fish and wildlife affected by the Eklutna Hydroelectric Project. The Agreement mandates that the Governor give equal consideration to eight factors and seek to reconcile differences between the various parties subject to the Agreement. The Final Program includes, among other things:  Construction of a new valve and release structure located adjacent to the Anchorage Water and Wastewater Utility portal valve to restore year-round flow to the Eklutna River one mile downstream from the Eklutna Dam  Automation of the existing outlet gate at the base of the spillway at Eklutna Dam for remote operation  Development of a channel maintenance flow regime to support fish habitat over the long term Governor Dunleavy Establishes Final Eklutna Fish and Wildlife Program https://gov.alaska.gov/governor-dunleavy-establishes-final-eklutna-fish-and-wildlife-program/ 2/2  Construction of eight new bridges for AWWU to access water pipeline infrastructure currently accessible by fording the River  One-time payment of $234,000 for lakeside trail repairs  Creation of a Monitoring and Adaptive Management Plan that includes the establishment of an Monitoring and Adaptive Management Committee  Three limited reopeners for the study and potential construction of a fixed wheel gate to replace the existing overflow spillway, provisions to review fish passage alternatives, and the study of Pumped Storage Hydro that may restore fish passage  Immediate implementation of the Final Program  Reserving any remaining funds from the study of the fixed wheel gate for other protection, mitigation, and enhancement measures for fish and wildlife  Addition of one more member, appointed by the Governor, to the Monitoring and Adaptive Management Committee The Final Approved Program accepted a request by the Municipality of Anchorage and Native Village of Eklutna to include the study of the Pumped Storage Hydro alternative. The Final Program also accepted a request by the U.S. Fish and Wildlife Service and National Marine Fisheries Service to specify that any remaining funds from the $10 million designated for a Fixed Wheel Gate at the Eklutna Dam be made available for additional studies or measures that protect, mitigate damage to, or enhance fish and wildlife habitat if the Fixed Wheel Gate is determined to not be structurally or economically feasible. “The Final Fish and Wildlife Program established today under the Agreement balances the eight factors I am required to consider, and the Program is designed to be an iterative one that will be able to adapt to changing conditions and technologies well before the process is required to repeat itself,” said Governor Mike Dunleavy. “I want to thank the Parties, the Native Village of Eklutna, and the members of the public who helped shape this Final Program with their time, resources, input, and participation over the past five years. This is not the end of the process, and I am committed to seeing this Final Program successfully enacted.” The U.S. Department of Energy approved $206.5 million from the Bipartisan Infrastructure Law to help the Alaska Energy Authority build a 38- mile submarine cable across Cook Inlet from roughly Nikiski to Beluga. September 23, 2024 • Alex DeMarban, Anchorage Daily News, Alaska Shutterstock (TNS) — An Alaska energy agency has accepted a massive federal grant to build a power line across Cook Inlet that, once built, will allow more renewable energy to be distributed from the Kenai Peninsula into the Railbelt grid. INFRASTRUCTURE Alaska to Receive $207M DOE Grant for Undersea Power Line Newsletters Webinars Events Magazine Papers 10/8/24, 11:36 AM Alaska to Receive $207M DOE Grant for Undersea Power Line https://www.govtech.com/infrastructure/alaska-to-receive-207m-doe-grant-for-undersea-power-line 1/7 The board of the Alaska Energy Authority this week voted to accept a $206.5 million grant from the Department of Energy to pay for the project. The authority must find matching funding to support the grant. The $413 million in total funds will pay for construction of a 38-mile submarine cable across Cook Inlet from roughly Nikiski to Beluga, said Curtis Thayer, executive director of the Alaska Energy Authority. The transmission line will provide redundancy to the existing power lines that run along overhead towers, he said. It will increase the transmission capacity by four times, he said. That will allow more power to be transmitted into the grid from the Bradley Lake Hydroelectric Project near Homer, as well as future renewable projects on the Kenai ADVERTISEMENT 10/8/24, 11:36 AM Alaska to Receive $207M DOE Grant for Undersea Power Line https://www.govtech.com/infrastructure/alaska-to-receive-207m-doe-grant-for-undersea-power-line 2/7 Peninsula. The transmission line must be completed within eight years, he said. It is likely the largest construction project proposed in Alaska outside the multibillion- dollar oil fields under construction on the North Slope, he said. The federal grant is part of the bipartisan infrastructure bill passed by Congress in 2021 and signed into law by President Joe Biden. The energy authority has eight years to secure funding, he said. In an initial step, close to $33 million in matching funding has been identified, Thayer said. The agency and electric utilities have pledged $20 million of bonding authority, and ADVERTISEMENT 10/8/24, 11:36 AM Alaska to Receive $207M DOE Grant for Undersea Power Line https://www.govtech.com/infrastructure/alaska-to-receive-207m-doe-grant-for-undersea-power-line 3/7 the state has provided $12.7 million, he said. Additional funding is being pursued and conversations on the topic have been underway with the Legislature and utilities, he said. The grant to Alaska was the fifth-largest of its kind, out of 700 applications nationally, he said. "We all realize that we need these upgrades," he said. "With the feds paying half of the amount, it makes a huge difference." The line will have many benefits once it's built, said Chris Rose, executive director of Renewable Energy Alaska Project. As part of the effort, the Legislature should ensure that electric utilities from Homer to Fairbanks employ a unified operating system to dispatch energy as efficiently as possible along the entire Railbelt, he said. The high-voltage direct current transmission line will allow more renewable energy from the Bradley Lake project to be distributed into the Railbelt system, Thayer said. The Bradley Lake project already provides 10 percent of the power on the Railbelt from the Kenai Peninsula to Fairbanks, he said. It is the cheapest electricity on the grid. But the existing lines have relatively limited transmission capacity, constraining the power that can be shipped from Bradley Lake, he said. The planned transmission line will also support future renewable energy projects on the Kenai Peninsula, such as a large solar project proposed for construction. "If you look at Bradley, and you look at solar and even wind, it allows us more opportunities," Thayer said of the project. "Because right now we cannot we cannot move any more power on those transmission lines, north to Southcentral Alaska or Fairbanks, because we're limited by the size, even though right now the hydro facility can produce more power." ©2024 the Alaska Dispatch News (Anchorage, Alaska). Distributed by Tribune Content Agency, LLC. 10/8/24, 11:36 AM Alaska to Receive $207M DOE Grant for Undersea Power Line https://www.govtech.com/infrastructure/alaska-to-receive-207m-doe-grant-for-undersea-power-line 4/7 813 W Northern Lights Blvd, Anchorage, AK 99503  Phone: (907) 771-3000  Fax: (907) 771-3044  Email: info@akenergyauthority.org REDUCING THE COST OF ENERGY IN ALASKA AKENERGYAUTHORITY.ORG RGYAUTHORITY.ORG PRESS RELEASE Brandy M. Dixon Communications Director (907) 771-3078 FOR IMMEDIATE RELEASE September 17, 2024 AEA Board Approves Acceptance of $475.5 Million in Federal Awards ANCHORAGE, September 17, 2024 — At their Tuesday, September 10 board meeting, the Alaska Energy Authority (AEA) Board of Directors passed two resolutions approving AEA’s entry into grant negotiations, authorizing AEA to receive $475.5 million in federal funding to advance projects. Grid Resilience and Innovation Partnerships (GRIP) 3, Round 1 Grant Award Resolution 2024-08 authorizes AEA to accept a $413 million United States Department of Energy (DOE) GRIP 3 Round 1 grant award to construct a 38-mile high-voltage direct current (HVDC) submarine cable across Cook Inlet from the Kenai Peninsula to Beluga, which would serve as a parallel transmission route from the Kenai Peninsula to Anchorage, increasing transfer capability and improving resilience. DOE is prepared to provide $206.5 million to AEA, requiring a mandatory 1:1 cost match, of which $32.7 million has been identified. “This “once-in-a-generation investment” offers a unique opportunity for the Railbelt and all of Alaska to reap the benefits,” said AEA Board Chair Clay Koplin. “Once completed, the HVDC line will add much-needed redundancy to Alaska’s Railbelt electrical grid system, modernize and upgrade our energy infrastructure, and create a more flexible energy grid able to accept and distribute energy from renewable sources.” Solar For All Grant Award Resolution 2024-09 authorizes AEA to accept a $62.5 million U.S. Environmental Protection Agency Greenhouse Gas Reduction Fund Solar for All Grant. AEA, in partnership with the Alaska Housing and Finance Corporation, will implement community and residential solar programs to benefit low-income and disadvantaged households. “AEA's mission of reducing energy costs for Alaskans is directly aligned with this funding,” said AEA Executive Director Curtis W. Thayer. “Furthermore, this initiative contributes to the sustainability of our most vulnerable communities by enhancing energy resilience. You can view the resolutions at https://www.akenergyauthority.org/board-meeting-resolutions. ### Alaska Energy Authority Page 2 of 2 About the Alaska Energy Authority The Alaska Energy Authority is a public corporation of the state. Its mission is to reduce the cost of energy in Alaska. To achieve this mission, AEA strives to diversify Alaska's energy portfolio increasing resiliency, reliability, and redundancy. To learn more, visit akenergyauthority.org. View this email in your browser Alaska Electric Vehicle Working Group Newsletter, September 12, 2024 Alaska’s NEVI Plan We did it, another year down! The Alaska Energy Authority (AEA) and Alaska Department of Transportation & Public Facilities (DOT&PF) have submitted Alaska’s updated Electric Vehicle Infrastructure Implementation Plan (The Plan) for fiscal year 2025. Now that the Plan has been submitted to the federal government, it is being reviewed. We expect to hear back about approval, or any necessary edits, by the end of September. 10/8/24, 12:36 PM In this issue: Alaska’s NEVI Plan, Remote and Rural Alaskan EVs, and the Next Quarterly Meeting https://us10.campaign-archive.com/?u=7bde743be4d525a5f52d948ed&id=5e95356571 1/7 As required by the National Electric Vehicle Infrastructure (NEVI) program, Alaska must provide an updated plan each fiscal year to fully capitalize on Alaska’s $52 million in NEVI funding that the state is slated to receive. Alaska’s original plan for fiscal year 2023 was submitted back in August 2022. We updated the plan for fiscal year 2024 last year, and now for fiscal year 2025 this summer! Alaska will have two more updates to submit in the coming years (fiscal years 2026 and 2027). Remote and Rural Alaskan EVs Many of us have heard that some parts of Alaska are ideal for electric vehicles (EVs). In an earlier newsletter issue, Southeast Alaska was described as the “goldilocks zone” for EVs due to moderate temperatures and a limited number of road miles to drive. So yes, Southeast Alaska is a great place for EVs, but what about other remote parts of Alaska? Mikel Saunders, one of the owners of Advance Blasting Services (ABS) in Wasilla, was an early EV adopter. He is now a fierce advocate and promoter of EV adoption, so much so that his company has incorporated EVs into their daily work and provides free charging access for their Wasilla employees to charge their personal EVs. ABS/Tapraq Rock have four EVs working at job sites in Stebbins, a community of 634 people in Western Alaska. Not accessible by the road system, Stebbins is located along the coast of Norton Sound roughly 120 miles southeast of Nome. To most, Stebbins might not seem like the first choice for locations to own and operate an EV, but Saunders gave a list of reasons he believes make remote and rural Alaska a great fit for EVs: 1.Range anxiety is not a concern because there aren’t many long roads to drive on. The lack of public chargers does not currently pose an issue to Saunders since he charges at his facilities in Stebbins. Past Issues 10/8/24, 12:36 PM In this issue: Alaska’s NEVI Plan, Remote and Rural Alaskan EVs, and the Next Quarterly Meeting https://us10.campaign-archive.com/?u=7bde743be4d525a5f52d948ed&id=5e95356571 2/7 2. He finds that EVs are easy to maintain and service which is key in rural Alaska. He points out that internal combustion vehicles don’t have any service support in remote areas, so that is not something drivers would be giving up by switching to an EV. 3.Energy costs for gas- and diesel-powered vehicles are extremely high (~$7-8/gallon currently in Stebbins). 4.Some areas in rural Alaska have alternative energy. The Alaska Village Electric Cooperative and the Stebbins Native Corporation recently installed a 900-kilowatt wind turbine to help power Stebbins and Saint Michael. 5.EVs have great traction and a low center of gravity which are good safety features to have in rural places with no ambulances and limited access to advanced emergency medical care. Here’s what one of the workers who drove the EVs in Stebbins had to say, “I was very surprised to see the EV in Stebbins last summer and thought it was a crazy idea. But, in hindsight, I have changed my opinion. I used it for ten days and truly enjoyed it. I did not have to charge up during that time.” Saunders believes that business owners can play an important part in EV adoption by allowing their employees to experience what it’s like to drive an EV. He says that EVs, “simply sell themselves once someone has enough time behind the wheel.” Past Issues 10/8/24, 12:36 PM In this issue: Alaska’s NEVI Plan, Remote and Rural Alaskan EVs, and the Next Quarterly Meeting https://us10.campaign-archive.com/?u=7bde743be4d525a5f52d948ed&id=5e95356571 3/7 Lenny stands with a Ford F-150 Lightening as he gets ready to drive it off the C-130 airplane that transported it to Stebbins. (Photo Courtesy: Mikel Saunders, ABS) 10/8/24, 12:36 PM In this issue: Alaska’s NEVI Plan, Remote and Rural Alaskan EVs, and the Next Quarterly Meeting https://us10.campaign-archive.com/?u=7bde743be4d525a5f52d948ed&id=5e95356571 4/7 A Chevy Bolt drives around Stebbins. (Photo Courtesy: RaeAnne Hebnes, Michael Baker International) We’ve established that EVs are present and working well in Western Alaska, but what about Northwestern Alaska? Kotzebue, located in the Northwest Arctic Borough in the Kotzebue Sound is 26 miles above the Arctic Circle and home to at least two EVs. Tom Atkinson, General Manager and CEO of the Kotzebue Electric Association (KEA) shared that they purchased a Nissan Leaf a few years ago. 10/8/24, 12:36 PM In this issue: Alaska’s NEVI Plan, Remote and Rural Alaskan EVs, and the Next Quarterly Meeting https://us10.campaign-archive.com/?u=7bde743be4d525a5f52d948ed&id=5e95356571 5/7 Atkinson said that it works great in the late spring, summer, and fall, although it has a harder time in Kotzebue’s harsh winters. The Leaf has low ground clearance so it occasionally gets high centered in the snow, and the battery can drain quickly in the cold. Undeterred and looking for something with better ground clearance, KEA purchased a new Ford F-150 Lightning this summer. They are looking forward to seeing how it performs now that EV technology has improved since the Leaf was built. KEA also purchased a commercial charger to install at their Kotzebue location. Their plan is to offer free charging to members who purchase EVs until they reach a saturation point for EVs, whenever that may be. Atkinson believes KEA’s EVs are currently the only two EVs in Kotzebue. KEA’s new Ford-F150 Lightning. (Photo Courtesy: Tom Atkinson, KEA) Next Quarterly Meeting Past Issues Tr 10/8/24, 12:36 PM In this issue: Alaska’s NEVI Plan, Remote and Rural Alaskan EVs, and the Next Quarterly Meeting https://us10.campaign-archive.com/?u=7bde743be4d525a5f52d948ed&id=5e95356571 6/7 What: Alaska Electric Vehicle Working Group Quarterly Meeting When: Late September (Exact date to be determined — stay tuned for more information! Topic: Fairbanks and North Pole Electric Vehicle Implementation Plan Facebook LinkedIn Website The Alaska Energy Authority’s Alaska Electric Vehicle Working Group involves collaborative stakeholders focused on promoting the use of electric vehicles (EVs) in Alaska by removing barriers to EV adoption and increasing access to charging infrastructure. Stay up to date on AEA's EV efforts at our website here. Copyright © 2024 Alaska Energy Authority, All rights reserved. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. Past Issues 10/8/24, 12:36 PM In this issue: Alaska’s NEVI Plan, Remote and Rural Alaskan EVs, and the Next Quarterly Meeting https://us10.campaign-archive.com/?u=7bde743be4d525a5f52d948ed&id=5e95356571 7/7 https://www.newsminer.com/news/local_news/alaska-renewables-seeks-to-install-additional-meteorological-towers- on-shovel-creek-site/article_02cb6216-6400-11ef-b44c-4bf86b2eb0ea.html Alaska Renewables seeks to install additional meteorological towers on Shovel Creek site Jack Barnwell Aug 26, 2024 Alaska Renewables co-founders Andrew McDonnell, front, and Matt Perkins provide an update on a proposed wind farm project at Shovel Creek near Murphy Dome’s summit during a community meeting at Ken Kunkel Community Center on Friday, Nov. 11, 2023. Jack Barnwell/News-Miner 10/8/24, 11:33 AM Alaska Renewables seeks to install additional meteorological towers on Shovel Creek site | Local News | newsminer.com https://www.newsminer.com/news/local_news/alaska-renewables-seeks-to-install-additional-meteorological-towers-on-shovel-creek-site/article_02cb62…1/3 Public comment on a land use permit connected to a future wind turbine farm closes on Wednesday, according to an Alaska Department of Natural Resources notice. Alaska Renewables, the company spearheading the proposed Shovel Creek wind farm near Murphy Dome, is seeking to lease additional land from the Alaska Department of Natural Resources. The proposed land permit, if approved by DNR, would also authorize Alaska Renewables to install two additional meteorological evaluation towers to measure wind resources in the area. “The proposed land use permit amendment is related to the research and development area, not the wind turbine area,” said Alaska Renewables CEO Matthew Perkins by email. “The permit amendment will enable us to bolster our ongoing meteorological, geotechnical, and environmental studies within the proposed Shovel Creek Wind project lease area.” Alaska Renewables is one of a few companies interested in developing a large-scale renewable energy project as Golden Valley Electric Association seeks to diversify its portfolio of power generation sources. The Shovel Creek project would include up to 60 wind turbines running along the ridgeline. Alaska Renewables estimates the turbines could generate up to 210 megawatts of power. The project would require the construction of maintenance buildings, access roads between the turbines, transmission lines and substations. Alaska Renewables held a series of community meetings at the Ken Kunkel Community Center in Goldstream Valley last year to garner feedback. At the time, Perkins estimated the project could cost as much as $800 million. The wind farm would be privately developed and sell electricity to GVEA through a long-term power purchase agreement. Alaska Renewable preliminary timeline projects construction to start in 2026 and operational by 2027. Golden Valley hasn’t yet announced its plans to execute a power purchase agreement on wind energy projects, citing the need to first invest in more battery energy storage systems (BESS). Its existing BESS is over 20 years old and cannot properly regulate a major renewable energy project’s variable production. 10/8/24, 11:33 AM Alaska Renewables seeks to install additional meteorological towers on Shovel Creek site | Local News | newsminer.com https://www.newsminer.com/news/local_news/alaska-renewables-seeks-to-install-additional-meteorological-towers-on-shovel-creek-site/article_02cb62…2/3 jbarnwell DNR approved a land use permit in August 2023 to brush an off-road vehicle trail and conduct environmental, geotechnical, meteorological and cultural studies. Four meteorological towers have already been constructed in the area, including one owned by Alaska Renewables and three owned by GVEA. The additional towers to be installed are between 50 and 60 meters in height and may be accompanied by a radar unit and a 16-foot-long trailer to serve as a power supply. “Data collection and field studies like these provide the necessary foundation for project design, engineering, permitting, community engagement, financing, construction, and operations,” Perkins said. To review the land use request, see it online at tinyurl.com/2aam8vhc. To submit a public comment, visit DNR’s Division of Mining, Land and Water at 3700 Airport Way in Fairbanks, by email at nro.lands@alaska.gov. Contact reporter Jack Barnwell at 907-459-7587 or jbarnwell@newsminer.com. 10/8/24, 11:33 AM Alaska Renewables seeks to install additional meteorological towers on Shovel Creek site | Local News | newsminer.com https://www.newsminer.com/news/local_news/alaska-renewables-seeks-to-install-additional-meteorological-towers-on-shovel-creek-site/article_02cb62…3/3 2024 PRSA Alaska Awards Submission: Award of Excellence – External Publication Alaska Energy Authority and Michael Baker International Electric Vehicle Working Group Newsletter Electric vehicles (EVs) in Alaska evoke strong feelings from a lot of people. Some hate the idea, some love it - misconceptions abound. The Alaska Energy Authority (AEA) and Michael Baker International publish a monthly EV newsletter that aims to be accessible to all readers regardless of their background knowledge of EVs, while building a working knowledge about EVs in Alaska, and facilitating communication and community within Alaska’s Electric Vehicle Working Group (AKEVWG). The State of Alaska will receive approximately $52 million through the National Electric Vehicle Infrastructure (NEVI) Program to deploy EV chargers throughout the state. AEA and Michael Baker International developed Alaska’s Electric Vehicle Infrastructure Implementation Plan, which details how the NEVI funds will be spent. The combined team also spearheads outreach surrounding the plan and facilitates the working group, which involves outreach like the newsletter. Michael Baker’s contract to facilitate the working group is funded by the NEVI formula program and the State Energy Program. This contract is fixed price, meaning there are a set amount of funds available to complete all project work, which extends beyond the newsletter and includes numerous outreach activities. The internal Michael Baker project manager tracks the budget and allots staff hours to various project tasks. While working on this newsletter staff are always cognizant not to overrun budgeted hours. From start to finish, newsletter creation takes fewer than eight hours of total staff time each month. Newsletter topics are selected with intention to help meet the newsletter’s goals of EV education, dispelling misconceptions, reducing barriers to EV adoption, and maintaining contact with the AKEVWG and public. These topics often include updates about Alaska’s NEVI plan, highlights of local EV events, announcements of EV funding opportunities, advertisements for upcoming working group meetings and events, and educational articles about various EV topics. Staff stay flexible with topic choices to ensure the topic each month is relevant and timely. For example, earlier this year AEA staff members heard from local politicians that signs near charging stations were causing confusion about station ownership. As part of a multi-faceted approach to mitigate that confusion, we included a segment in the newsletter explaining who owned the chargers. The newsletter included a photo of the sign in question and gave a concise explanation clarifying ownership. This section of the newsletter ran in multiple consecutive editions to ensure understanding of the topic was clear. We realize that not every person who was confused about the ownership situation reads the newsletter, but by educating the newsletter readers, we are helping create community advocates who can help clarify any misinformation they hear, one conversation at a time. Since that segment was included in the newsletter, we haven’t heard any more confusion about charger ownership. After a topic has been decided on, Michael Baker staff conduct in-depth research prior to writing the newsletter. This can include reading news articles, attending webinars, interviewing subject matter experts, or examining laws and regulations. During the research process, our staff keep a document with notes summarizing the information and save important links to share in the newsletter. After researching and gaining a thorough understanding of the topic, our staff will write the newsletter using plain language guidelines and avoid using jargon or excessive abbreviations that could make the newsletter inaccessible to audiences who might not be well versed in the subject at hand. We format the content using easy to follow headers, sub headers, bullets, and include eye catching graphics or the occasional video. After the newsletter is written, it goes through two stages of review at Michael Baker. One reviewer provides a technical edit for spelling and grammar, while the other reviewer is a subject matter expert who confirms factual accuracy. Once approved internally, we send the newsletter to AEA for review. After final review, the newsletter is ready for distribution! The main method of distribution is using AEA’s AKEVWG listserv on Mailchimp. This distribution includes representatives from the Alaska Department of Transportation & Public Facilities, the Alaska Electric Vehicle Association, the University of Alaska, EV owners, EV vendors, electric utilities, EV enthusiasts, and more. As of June 2024, there were about 270 members on the distribution list, up from about 170 when Michael Baker first started writing newsletter content in June 2022. AEA also posts on Facebook and LinkedIn announcing that the newsletter is available. Between Facebook and LinkedIn, AEA reaches over 1,500 followers. All back issues of the newsletter are uploaded the AKEVWG page on AEA’s website. We track analytics using Mailchimp and social media. This includes statistics like total number of recipients, open rates, click rates, and more. From July 2023 to June 2024 the email newsletters via Mailchimp had an average open rate of 56% and an average click rate of 9%. We have received feedback from readers via email and LinkedIn offering suggestions on different types of graphics to use, or asking questions, and we’ve kept that feedback in mind while developing future newsletters. Support Materials 2024 PRSA Alaska Awards Submission: Award of Excellence – External Publication Michael Baker International and the Alaska Energy Authority Electric Vehicle Working Group Newsletter Support Materials Three consecutive issues of the newsletter*: September 2023: In this issue: EV batteries — composition, recycling incentives, and future solutions (mailchi.mp) October 2023: In this issue: First Round Alaska NEVI Funding, Timeline, and Next Steps (mailchi.mp) November 2023: In this issue: FHWA Approves FY24 Alaska NEVI Plan, NACS Update, and Local EV News (campaign- archive.com) *NOTE: These three issues are also included in this application as printed PDFs of the delivered emails, however, the print to PDF process caused some formatting changes. We suggest reading the newsletters at the links above. Figure 1. AKEVWG email newsletter statistics from August 2022 to June 2024. Support Materials Figure 2. Total opens of newsletters from August 2022 to June 2024 (includes from email and social media). Figure 3. An example of the announcement that AEA posts to social media each month to advertise the newsletter. Support Materials Figure 4. This sign was causing some confusion about who owned charging stations. We included this photo of the sign, along with an explanation of the ownership situation, in multiple newsletters to help clear up confusion. Figure 5. AEA advertises the newsletter on Facebook and LinkedIn. They have a reach of over 1,500 followers. Support Materials Figure 6. LinkedIn statistics for posts promoting the newsletter. Figure 7. All back issues of the newsletter are uploaded to AEA’s website.