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HomeMy WebLinkAbout2025-10-30_AEA Agenda and docs813 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 30, 2025, 8:30 am AGENDA Dial 1 (888) 585-9008 and enter code 212-753-619# Public comment guidelines are below. 1.CALL TO ORDER2.ROLL CALL BOARD MEMBERS3.AGENDA APPROVAL4.PRIOR MINUTES – July 10, 20255.PUBLIC COMMENTS (2 minutes per person) see call in number above6.PRESENTATION –A.Alaska Energy Authority 2025 DRAFT Financial Statements7.COMMITTEE REPORTSA.Special Committee on Project Finance •Orrick Summary on AEA Finance Options •Resolution 2025-05 Authorizing Executive Director to submit LPOapplication.8.OLD BUSINESS - NONE9.NEW BUSINESSA.2026 Board Meeting Schedule10.DIRECTOR COMMENTSA.FY2025 Budget to ActualsB.Regulatory Requirement Reduction Project (AO360)C.Snettisham AEA-AIDEA MOUD.Federal Awards TrackerE.Owned Assets Update: •Bradley Lake Expansion Project •Cook Inlet Power Link (CIPLink) •SQ and SS Line •Battle Creek Bond Subsidies from IRS •Letter from FERCF.Rural Programs Update •Denali Commission Awards Update •Power Cost Equalization (PCE) Endowment Fund Update •Typhoon Hylong UpdateG.Renewable Energy & Energy Efficiency Update: •Electric Vehicles / NEVIH.Planning update: •Net Metering Pilot Program Update •Power Project Fund Update •Renewable Energy Grant Fund UpdateI.Railbelt Transmission Organization (RTO) -Update Alaska Energy Authority Page 2 of 2 J.IT UpdateK.Community OutreachL.Articles of InterestM.Next Regularly Scheduled AEA Board Meeting – January 29, 2026, 9:00 am.11.EXECUTIVE SESSION – Discuss confidential:A.Financial Matters (FY27 budget)B.Attorney -Client CommunicationsC.AEA Strategic PlanningD.Personnel matter12.BOARD COMMENTS13.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 Thursday, July 10, 2025 Anchorage, Alaska 1.CALL TO ORDER Chair Koplin called the meeting of the Alaska Energy Authority to order on July 10, 2025, at 9:00 am. 2.ROLL CALL BOARD MEMBERS Members present: Clay Koplin (Public Member); Tony Izzo (Public Member); Robert Siedman (Public Member); Jenn Miller (Public Member); Ingemar Mathiasson (Public Member); Adam Crum (Commissioner DOR); and Julie Sande (Commissioner DCCED). Members absent: Duff Mitchell (Public Member). A quorum was established. 3.AGENDA APPROVAL Curtis Thayer, Executive Director, indicated that Item 6A. actually belongs under Item 9. Executive Session. MOTION: A motion was made by Mr. Siedman to approve the agenda with the exception of moving Item 6A. Renewable Energy Credits into executive session. Motion seconded by Mr. Izzo. A roll call was taken, and the amended agenda was approved unanimously. 4.PRIOR MINUTES – April 17, 2025 MOTION: A motion was made by Ms. Miller to approve the Minutes of April 17, 2025. Motion seconded by Mr. Siedman. A roll call was taken, and the Minutes of April 17, 2025 were approved unanimously. 5.PUBLIC COMMENTS (2 minutes per person) There were no members of the public online or in-person who requested to comment at this time. 6.OLD BUSINESS - None 7.NEW BUSINESSA.Budget Update Alaska Energy Authority Page 2 of 20 i. FY25 Budget to Actuals Mr. Thayer discussed the document included in the Board packet entitled FY25 Operating Budget to Actuals through April 30, 2025. Projection totals to the year ending June 30, 2025 are also listed. The budget format is now separated into four components: AEA Facilities, Rural Energy Assistance, Power Cost Equalization, and Statewide Projects. Mr. Thayer explained that the majority of the Statewide Projects are the Infrastructure Investment and Jobs Act (IIJA) projects. Since these budget components are new this year, there is no comparison to last year’s budget. Mr. Thayer reviewed the components. The AEA Facilities are projected to be at 80% of budget; Rural Energy Assistance at 67% of budget; Power Cost Equalization at 93% of budget; and Statewide Projects at 13% of budget. Mr. Thayer explained that the 13% projection is primarily due to the Grid Resilience and Innovation Partnership (GRIP) Cook Inlet Power Link (CIPLink) that was projected to spend $15 million, and only spent approximately $1 million. The spending is expected to ramp up now that the grant agreement is approved. There were no comments or questions. ii. FY26 Budget Mr. Thayer reviewed AEA’s FY26 Operating Budget included in the Board packet. This format is also different. It shows the comparison on the FY25 Adjusted Base, the FY26 Governor’s budget, and the FY26 Authorized budget. Of the total $67 million budget, $47 million is for the Power Cost Equalization (PCE) program. Mr. Thayer noted that the funding sources are also listed on the one-page summary, as well as the employee position counts. There are 58 full-time positions, and the 12 non-permanent positions are connected to the federal projects. Mr. Thayer gave the example that the CIPLink project is an eight-year project, which will be reflected as eight years of non-permanent employees. This number will fluctuate depending on the projects. Mr. Thayer discussed the FY26 Operating Budget, which is separated by component. He noted that a comparison of the FY26 components to the FY25 components can be completed next year. Mr. Thayer reported that the Construction in Progress (CIP) receipts aligned with projected expenses. The request for an increment for the data library was granted for $250,000. The library has over 11,000 data points and continues to expand. Mr. Thayer reviewed that the Legislature rejected the request for $304,000 to pay rent for the facility to Alaska Industrial Development and Export Authority (AIDEA). AEA is not paying rent for the building. Mr. Thayer showed the pie graph on page three that represents the FY26 Operating Budget, excluding the PCE grants. The graphic shows the restrictions of each bucket of funding that is clearly defined for spending. The status update on page four delineates the GRIP, IIJA, and Solar for All federal receipt authority and general fund match requests that were granted by the Legislature. Mr. Thayer discussed the Bulk Fuel and Power House federal receipt authority and general fund match requests that were received. The Governor’s budget included $6.5 million for the hydroelectric development at Bradley Lake. However, considering the tight budget constraints, the Legislature and the Governor reduced the amount to $4 million. Mr. Thayer explained that the Alaska Energy Authority Page 3 of 20 bonding interest that the Board previously approved was added to the budget for a total of $10 million this year. The budget will be used for the Federal Energy Regulatory Commission (FERC) filing in January. Mr. Thayer indicated that AEA would request the $2.5 million shortfall in this year’s budget. Mr. Thayer discussed that the Governor asked for $6.3 million in the budget for the Renewable Energy Grant Fund (REF) Round 17. The Legislature granted the total amount. However, the requests for the REF grant funding totaled over $20 million. Mr. Thayer noted that the $4.4 million for the Whittier Cruise Ship Terminal Port Electrification that the Governor requested was granted by the Legislature and uses the Ocean Ranger and Passenger taxes for funding. Mr. Thayer explained that AEA was very fortunate in its capital budget results. AEA’s total ask in the Governor’s capital budget was approximately $86.8 million, and the Legislature granted approximately $84.4 million. Mr. Thayer reviewed the FY25 Supplemental Budget requests listed on page five. The Legislature was able to reappropriate $234,000 worth of funds from an old grant for the Electrical Emergency Response line item. The Administrative Services Updates line item is primarily for new phones and upgrades to the Navision system. The funding is reappropriated from an old Emergency Technology Fund grant. Additionally, there are continuing issues with vandalism and theft to the warehouse on Commercial Drive that is next to a homeless encampment. The $100,000 budget item will be used for roof repairs and possibly to start the process of finding a different facility. Mr. Thayer noted that the pie chart graphic showing the FY26 Capital and the FY25 Supplemental Budget is on page six. Mr. Thayer indicated that discussion would occur during executive session regarding the process for developing the FY27 budget. There were no comments or questions. iii. FY27 Budget Process Mr. Thayer directed members’ attention to the document within the Board packet entitled Budget Deliverables and Timeline draft. It outlines the budget development process that AEA must follow in collaboration with Office of Management & Budget (OMB) and the Governor’s Office for final release of the Governor’s proposed budget on December 15, 2025. The deadlines are typically short, with a week or two-week turnaround. Today’s meeting of July 10, 2025 is highlighted on the budget process timeline. Mr. Thayer discussed that work on the Management Plan is occurring now. He commented that AEA’s Finance Committee is welcome to interject themselves in the process and to receive additional updates. Commissioner Crum complimented Mr. Thayer on his diligent work on the budget and for representing AEA during the difficult process. He expressed appreciation to Mr. Thayer for his time and efforts in positioning AEA for strength. Commissioner Sande commented that she has the opportunity of being a member of both the Alaska Energy Authority Page 4 of 20 AEA Board and the AIDEA Board. She is confident that the questions will be raised regarding the rent and the long-term plan for the rent. Commissioner Sande expressed her understanding that the State is currently in a difficult revenue year. However, it is common practice for one State agency to pay another State agency for rent. She asked for the long-term plan for paying rent. Mr. Thayer requested to defer the discussion regarding the long-term plan for paying rent to executive session. There was no objection. Mr. Siedman noted that he does not see on the agenda an item for discussion regarding the IIJA and the grid efficiency upgrades. He commented on the recent Reconciliation Bill, including the topic of Investment Tax Credits (ITC) and the tightening of timelines. Additionally, a recent executive order from the Trump Administration directs the Treasury to tighten terminology within 45 days regarding beginning of construction (BOC). Mr. Siedman asked Mr. Thayer if there is anticipated pushback or potential loss of funds pertaining to the Grid Resiliency Program and/or the Solar for All Program. Mr. Thayer responded that there is no anticipated pushback or potential loss of funds. Staff has followed the bill very closely and has worked very closely with National Association of State Energy Officials (NASEO). Staff provided the information that was required for the GRIP projects. Mr. Thayer explained that if the funds were obligated by Congress and if the funds were not rescinded in the Big Beautiful Bill, then the funds stand. Mr. Thayer commented that none of AEA’s programs were rescinded. He noted that there are rumors regarding the Solar for All Program. However, until the Program Officer informs AEA of a different course of action, the program will move forward. Mr. Thayer informed that additional GRIP discussion will occur later in the meeting. He summarized that all applicants that received GRIP funding received a data request from the Department of Energy (DOE). Staff completed the extensive data request which contained hundreds of pages. Mr. Thayer commented that AEA’s responses were within the top 10 responses to DOE. He explained his understanding that if a program is transmission or generation related, it is not a cause for concern. Staff is closely watching $74 million, of which $37 million is in the home rebates program and $37 million is in the energy efficiency program. Currently, staff has been told that both programs are moving forward. However, the project officers for those programs are being changed and clarification has not been received. Mr. Thayer explained that the National Electric Vehicle Infrastructure (NEVI) program was rescinded. However, AEA received notification recently that the rescission was being rescinded, and to look for new guidance. The NEVI funding runs through the Department of Transportation (DOT) budget. AEA has a Memorandum of Understanding (MOU) with DOT to carry out the front office work. DOT has directed AEA to proceed. The bills that have been presented have been paid. Additional guidance on the $52 million NEVI program is expected. Mr. Thayer discussed that in addition to AEA’s own research of the bill, AEA has been in contact with NASEO and with the delegation, and there are no known issues with AEA’s $454 million Alaska Energy Authority Page 5 of 20 funding. Mr. Thayer indicated that President Trump’s budget makes changes, but not to AEA’s major projects. Adjustments to AEA’s budget may need to occur, because the changes may relate to other projects that may not receive the federal match, but have Unrestricted General Funds (UGF) attached that could possibly be used elsewhere. Mr. Thayer reiterated that AEA has not paused any projects and has not been told that there is a red flag on any of AEA’s projects. There were no other comments or questions. B. Audit Update Mr. Thayer noted that Pam Ellis, AEA Controller, is available to answer any questions regarding the FY25 Annual Audit. Mr. Thayer discussed the audit schedule included in the Board packet. BDO is the auditor for AEA, and has worked with AEA on previous audits. There were no questions or comments regarding the audit schedule. C. AEA Travel Plan Mr. Thayer discussed the included memorandum regarding travel planning, travel requests and travel authorizations. Each year, the Governor’s Office distributes travel authorization guidance and suggests that the public corporations follow similar guidance. The memorandum updates AEA’s travel authorization per the Governor’s Office guidance. The AEA Board does not typically approve the updates. However, the Governor’s Office asks staff if the Board is aware of the updates. Mr. Thayer is including this information to ensure the Board is aware of the updates. Also attached are the 22 pages of the FY26 Travel Plan documents and estimates of travel costs. Mr. Thayer commented that AEA typically is under budget for travel expenses. Mr. Thayer requested that the Board entertain a motion to approve the presented travel memorandum and travel plan that has been submitted to OMB. There were no questions. MOTION: A motion was made by Ms. Miller to approve the May 22, 2025 Travel Plan Memorandum and the corresponding Travel Plan for FY26 travel as presented and included in the Board packet. Motion seconded by Mr. Izzo. Mr. Izzo recognized Mr. Thayer for providing a tremendous amount of clarity and transparency. Mr. Izzo is impressed with the cost of the travel compared to the significant amount of travel that is needed to support the various programs in this very large state. He complemented Mr. Izzo for the good job. Chair Koplin expressed appreciation for the structure of the agenda that shows the audit schedule, the work plan schedule, and the deliverables for budget, which is clearly shown for the Board and for the public. The transparent information and structure help the Board understand the staff’s significant day-to-day workflows. There were no other comments or questions. Alaska Energy Authority Page 6 of 20 A roll call was taken, and the motion to approve the May 22, 2025 Travel Plan Memorandum and the corresponding Travel Plan for FY26 travel as presented and included in the Board packet passed unanimously. D. Willow Expansion PPF Loan Mr. Thayer reviewed the AK Renewable Energy Partners LLC (AK REP) Board of Directors Summary included in the packet. He explained that Aleut Energy LLC (AEG) has stated its desire to purchase the ownership of AK REP. Mr. Thayer noted that AK REP has an existing Power Project Fund (PPF) loan liability. Mr. Thayer recommended entering into executive session to discuss and review the confidential information related to this item. He noted that the eight-page document prepared by Conner Erickson, AEA Director of Planning, is attached to the agenda and is available for public review. As required by statute, Ms. Miller disclosed a conflict with regard to this matter. Ms. Miller has equity shares in the holding company that owns the borrower for this loan. Additionally, Ms. Miller is a guarantor for this loan. Ms. Miller recused herself from this matter. Chair Koplin noted that as Chair and the designated supervisor for purposes of this ethics issue, Chair Koplin accepted Ms. Miller’s recusal. He noted that Ms. Miller will not be able to participate in the discussions, deliberations or informal advocacy regarding this matter. With the conditions satisfied and consistent with advice from the Alaska Attorney General’s Office, the AEA Board may continue with considering and resolving this matter. Mr. Mathiason commented that he is having issues with the remote connection, and if he is disconnected from the meeting, he will rejoin promptly. Mr. Izzo commented that in line with the acknowledgement of a potential conflict, he deferred to Counsel, and disclosed that Matanuska Electric Association (MEA) is the buyer of the power from the project. MEA is aware of the transition and has no concern. Additionally, MEA does not have a financial interest, other than the power that is produced. Mr. Izzo provided the disclosure and should there be a perceived conflict or material conflict, it could be addressed now. Chair Koplin expressed appreciation to Mr. Izzo for the transparency. Chair Koplin indicated that he does not see a conflict. Chair Koplin asked Mr. Thayer if he has any comments. Mr. Thayer indicated that he is looking at Counsel for a response. Mr. Billingsley commented that he is just finding out this information and has not had an opportunity to fully review the information. However, at this point, he could not identify any issues. Chair Koplin reiterated that he does not see a conflict related to Mr. Izzo’s comments of transparency. There was no objection. There were no other comments or questions. MOTION: A motion was made by Mr. Siedman to enter into executive session to discuss confidential financial matters related to the Willow Expansion PPF loan. This is supported Alaska Energy Authority Page 7 of 20 by the Open Meetings Act, AS44.62.310, which allows a Board to consider confidential matters in executive session. In this case, the matters entail confidential commercial and financial information, the disclosure of which would cause competitive harm. Motion seconded by Mr. Izzo. A roll call was taken, and the motion to enter into executive session passed with Mr. Mathiasson offline and Ms. Miller recused. i. EXECUTIVE SESSION: 9:39 am. The Board reconvened its regular meeting at 10:01 am. Chair Koplin advised that there are two recusals for conflicts of interest, and one Board member is absent. The quorum of five was established. Chair Koplin advised that the Board did not take any formal action on the matters discussed while in Executive Session. MOTION: A motion was made by Mr. Siedman to approve the conveyance of all ownership interests in AK Renewable Energy Partners LLC to Aleut Energy LLC, subject to the conditions listed in Exhibit A., which was presented as part of the Board packet, and B) authorize AEA’s Executive Director to take all necessary actions to effectuate the conveyance and approved changes to PPF Loan Agreement #40901143, and related documents, provided such changes do not materially detriment the Authority or substantiate deviate from the current Loan Agreement. Motion seconded by Commissioner Crum. Chair Koplin asked if Mr. Mathiasson has any comments or questions regarding the motion. Mr. Mathiasson indicated that he does not have any comments or questions at this time. Commissioner Crum publicly thanked the staff for their due diligence on this matter. He appreciated staff’s recommendation. Mr. Siedman echoed Commissioner Crum’s comments and recognized staff for providing the substantive information. There were no other comments or questions. A roll call was taken, and the motion passed, with Ms. Miller recused and Mr. Izzo abstained. Chair Koplin thanked AEG for making themselves available and attending today’s meeting. Ms. Miller returned to the meeting. 8. DIRECTOR COMMENTS Mr. Thayer acknowledged that the Governor held the Sustainable Energy Conference in June. AEA was very involved in the conference participating in boards and panels, and Mr. Thayer gave an AEA presentation immediately prior to the luncheon keynote speaker. Mr. Thayer commended the Alaska Energy Authority Page 8 of 20 Governor for encouraging the attendance of the Secretary of Interior, the Secretary of Energy, and the EPA administrators to the conference. The conversations and sessions with these important representatives were very good. Furthermore, Mr. Thayer reminded members that he attended the UAE’s Sustainability Conference in Abu Dhabi with the Governor in January. He discussed that the United Arab Emirates (UAE) sent a delegation to the Governor’s Sustainable Conference, and staff participated in those meetings. Staff has scheduled a call for this Monday morning with another group that wants to discuss investment opportunities in transmission or generation in Alaska. Mr. Thayer commented that the preliminary asset level of interest for infrastructure investment projects in Alaska is not in the millions of dollars, but rather up to $5 billion in investments. Mr. Thayer believes that the Governor’s Sustainability Conference in 2026 will continue to grow in its success. He discussed that Andrew Jensen, Governor’s Office, spearheaded and coordinated the conference, and continues to receive status updates, particularly from the American Ambassador to the UAE. Mr. Thayer continued his comments noting that he advocated that NASEO hold their Western states meeting in Alaska. This occurred the week after the Sustainability Conference. The Governor participated in that meeting, and the attendance included 50 colleagues from the Western states. Mr. Thayer expressed appreciation to Brady Dixon, AEA Communications Director, for coordinating those efforts. Mr. Thayer discussed that AEA submitted an application for UAE’s Zayed Sustainability award. The prize is $1 million. Finalists will be announced this fall. AEA’s team included Ms. Dixon, Tim Sandstrom, Jim Mendenhall, Chris McConnel, Josie Hartley and others. Mr. Thayer requested the Board’s indulgence to play the two-minute summary video that was submitted as part of the application. There was no objection. Chair Koplin commented that he participated in the Alaska Sustainable Energy Conference. He emphasized that AEA staff, particularly Mr. Thayer, and the Governor’s Office, particularly Mr. Jensen, and others who organized the effort did a great job. Chair Koplin highlighted that this is the first time that three cabinet members visited Alaska at the same time. The cabinet members were able to tour the Arctic. Chair Koplin was able to spend much time with the Department of Energy’s senior staff. They had a very successful visit, and left with a new first-hand appreciation for how solar, wind, logistics, fossil fuels, and development revolve around energy, and Alaska’s unique challenges and opportunities. Chair Koplin mentioned that he attended the recent meeting with Abu Dhabi representatives, AEA staff, and Mr. Thayer regarding the billion-dollar projects that AEA submitted after the Governor’s January meeting. Chair Koplin noted that the Abu Dhabi representatives complemented AEA staff for their effective preparation of the prospective billion-dollar projects, with one representative indicating it was the best work product seen from a state office. They were very impressed that AEA staff produced this high-level work product in three months. Chair Koplin is hopeful for the opportunity of the Zayed Prize. That would be a noteworthy achievement for AEA. Mr. Thayer provided additional context regarding the January UAE trip he attended with the Alaska Energy Authority Page 9 of 20 Governor’s Office, during which they met with Dr. Sultan Al Jaber, a high-ranking gentleman and President of the Abu Dhabi National Oil Company (ADNOC). Mr. Thayer indicated that the news outlets have reported that ADNOC is purchasing Santos. Mr. Thayer commented that they are making investments. They have billions of dollars that they want to invest, and they want to make part of those investments in North Slope operations. AEA strives to capture those cascading investments. There were no other comments or questions. A. Owned Assets Update: i. Cook Inlet Power Link (CIPLink) Josi Hartley, Project Manager, noted that this project is also known as the GRIP project. The conclusion of the first budget period was June 30, 2025. The project “Go / No Go” decision point between AEA and DOE was also at this time. On May 9, 2025, AEA submitted a formal recommendation to DOE in support of a “Go” decision for the CIPLink project. The recommendation was based on the preliminary design documents which confirm that the project can be completed on time and within the allotted budget. The DOE technical staff concurred with the recommendation and supported moving the project forward into the next budget period and work phase. Ms. Hartley discussed that following that decision point, AEA received a data request from DOE. She explained background information leading up to the data request. The DOE Inspector General released a report highlighting that the Grid Deployment Office (GDO) lacked sufficient internal controls and oversight to oversee the GRIP program activities and recommended that DOE take action to make improvements to the program. That finding resulted in DOE issuing a formal request to 179 individual projects, including CIPLink. AEA staff prepared a comprehensive response package that included information about the proposed technology, the design documents, detailed schedule, three-statement financial model, economic, national security consideration narratives, Tribal impact statements, attestations from leadership, questionnaires from the Board, and a number other required detail. She thanked the Board for providing the questionnaires in a timely manner. Ms. Hartley indicated that the response package was due on June 16, 2025, and was delivered to DOE a couple of days early on June 13, 2025. Ms. Hartley extended appreciation to everyone who participated in the effort to prioritize and ensure that the submission was timely. One follow-up question was received from the DOE Process Review Team on June 26, 2025 at 5:00 a.m. The requested turnaround time for the response was by close of business that same day. Despite the time challenge, staff was able to meet the same day deadline and provided the requested information. There have been no further questions or comments from the Process Review Team since, and staff is in a holding pattern awaiting further response regarding the submitted materials. Ms. Hartley discussed that in addition to submitting the data request package, staff submitted the National Environmental Policy Act (NEPA) questionnaire to support the second budget period and the scope of work. DOE provided a categorical exclusion determination 10 days following the submission. Staff was happy with the determination, and hopes this is a signal for future NEPA Alaska Energy Authority Page 10 of 20 assessments. Ms. Hartley explained that the first budget period for the grant ended June 30, 2025. The next budget period is expected to be two years; July 1, 2025 through June 30, 2027. During this period, the procurement process will begin, including supplier arrangements, productions slots for the cables and converters, engineering design studies, and environmental field work to support the NEPA application to be submitted. Ms. Hartley reviewed that the expected cost over the next two years is approximately $62 million, which is reflective of the budget that was provided to DOE. A large portion of the budget is focused on securing the production slots for the cables and converters. Ms. Hartley indicated that the DOE Project Officer informed AEA this week that the continuation agreement for the next period will not be processed until the DOE Process Review Team has completed their review of the project. The timeline for that is still unknown, possibly a couple of weeks or more. Staff continues to work on the project in the meantime to remain on schedule. Ms. Hartley gave an overview of the current financials. Approximately $1.1 million has been expended on the project to date. Staff is actively working to secure additional match funding to support the project. The main focus is with the Loan Programs Office (LPO). Conversations are ongoing regarding the collaborative, multi-step process to apply for an LPO project loan. Staff has secured $64.2 million to support the CIPLink project. This combined State funds and Bradley bonds. An additional $142.3 million is being sought to meet the match requirements. A detailed update and discussion regarding the financing plan are scheduled for August. Ms. Miller commended Ms. Hartley and the team for completing and submitting the information requested, which is contained within a four-inch-thick binder. Ms. Miller believes the team provided a strong showing for Alaska to keep the project on good footing. Mr. Siedman echoed Ms. Miller’s comments, and extended his appreciation to staff for their efforts. He noted the similar agency staffing constraints around the whole country. Many employees in the program took the early buyout. Mr. Siedman commented that the GDO was not established under congressional authority, rather it is part of the Inflation Reduction Act (IRA). Whereas the Office of Energy Efficiency and Renewable Energy (EERE) was established under congressional authority. Mr. Siedman suggested the possibility of asking DOE to transfer some of these programs to a different department if issues persist. Commissioner Crum expressed appreciation for the update. He likes the new name CIPLink. He directed his question to Mr. Thayer if it is anticipated there would be a budgetary request for this project next year. Mr. Thayer responded that discussion would occur in executive session. There was no objection. Mr. Izzo extended thanks to Ms. Hartley and the team. He discussed his perspective as a Railbelt utility and the criticality of this project. The Railbelt is referenced as a grid in Alaska, but it does not qualify as a grid in the Lower 48. There are capacity constraints and challenges with fuel supply. This project facilitates increased efficiency with Bradley Lake and the expansion of Dixon Diversion. It is a clear effort in line with AEA’s mission to lower the cost of energy for Alaskans. Mr. Izzo Alaska Energy Authority Page 11 of 20 expressed that his appreciation is such that it is difficult for him to acknowledge in words. Chair Koplin commented that the Board understands the accomplishment of staff through this project. He noted that meeting the federal timelines or exceeding the federal timelines provides an advantage for the project and shorter turnaround times for the project. The credibility of the agency and the responsiveness bodes well for this critical project, as well as building trust for future projects and funding. He thanked staff for their efforts. There were no other comments or questions. ii. Dixon Diversion Mr. Thayer announced that he and Mr. McLaughlin will travel to Bradley Lake tomorrow with about 15 guests, including Chugach Electric Association (CEA) Board members, Regulatory Commission of Alaska (RCA) commissioners, and legislators. There will be two planes. Ryan McLaughlin, AEA Infrastructure Engineer, gave the update on the Dixon Diversion project. Mr. McLaughlin discussed that the design of the Dixon Diversion is advancing with the target of 30% design by January 2026. This is also the target date for submitting the Draft License Amendment Application (DLAA) to FERC. Most of the effort has been focused on the diversion dam and intake area to optimize the engineering constraints, including the National Wildlife Refuge boundary proximity, the amount of sediment to come through, and the elevation change between the inlet and outlet. Progress continues. Mr. McLaughlin noted the first meeting of the Board of Consultants was held in February 2025. They are currently reviewing the scope of work for the Probable Maximum Flood (PMF) study. The next meeting of the Board of Consultants is scheduled in late October to review the design, the results of the PMF study, and the ongoing seismic study. Mr. McLaughlin discussed that the Drilling Plan Program (DPP) was submitted to FERC. Comments have been returned. The work will occur in September. The holes will be through Bradley Lake dam and at the toe of Bradley Lake dam to evaluate the seismic stability of the dam. Monitors will be installed to monitor the phreatic surface within the dam as the water level changes. Additionally, core samples will be taken to verify the recorded rock type and gradation in the dam. These steps will inform the design for the dam raise. Mr. McLaughlin reviewed that the hydrology work continues on the Martin River for both acquiring and monitoring discharge measurements. This data will inform and refine the energy estimates this winter. The project is in its second year of environmental studies that reflect the approved and posted Dixon Study Plan. The studies include aquatic, terrestrial, and cultural resources. The fish run studies in the Lower Martin River will help determine the minimum instream flow when the project is built. Mr. McLaughlin discussed that the DLAA will include a 14-foot pool raise. He noted that this design gives the flexibility to decrease the raise to seven-foot, if needed. Alaska Energy Authority Page 12 of 20 Mr. McLaughlin reiterated Mr. Thayer’s previous comments that $4 million was received in FY26 funds from the State to continue the licensing work for Dixon Diversion. He is confident that this level of funding will extend through the draft and final license amendment application, and fund the engineering and environmental work for both this summer and next summer. In addition to the field trip that will occur tomorrow, a tour of Bradley Lake occurred with the FERC Commissioner Judy Chang. She was able to visit the Dixon Diversion project site and discussed the importance of the project within Alaska. Mr. Siedman understands that the project is going to potentially add the significant amount of 190 gigawatt-hour (GWh) of energy to the Railbelt. He commented on the recent Reconciliation Bill, and his understanding that the Dixon Diversion does not necessarily qualify for the Investment Tax Credit (ITC). Given all of the background information and efforts by Alaska Senators, he asked if there is a way to potentially utilize the ITCs. Mr. Siedman gave an example of the potential financial impact discussing that one of the projects he worked on qualified for 30% ITC, 10% ITC for domestic content, and10% ITC for being an energy community. All of Alaska is considered an energy community. Mr. Siedman indicated that the total of 50% of the project cost was significant. Mr. Thayer reviewed that the Bradley Lake Management Committee (BPMC) has discussed the projects at Bradley Lake. The dam raise and diversion is an amendment to the FERC license. There have been discussions regarding the possibility of increasing the generation during the license renewal process. Mr. Thayer believes that the initial cost to add additional generation was very expensive in excess of $300 million to $400 million, which is too big of a cost to take on, considering the current Dixon Diversion project, the CIPLink project, and others. Mr. Thayer discussed that the way the bill is drafted, it is correct that the Dixon Diversion project does not qualify because the project does not increase generation, it increases storage. The nameplate capacity remains the same. However, there is language that the Secretary of Energy can help with the definition. Staff has spoken to the delegation regarding the possibility that the Secretary of Energy could include storage and the work that is occurring at Bradley Lake as part of the definition. Additional conversations would occur after the bill is passed. Mr. Thayer reiterated that there is space and design for a third generator, however there would need to be significant work at the site at a significant expense for the process to occur now. Additionally, any generation work at this point would delay the diversion work that is ongoing. There were no other comments or questions. iii. SQ and SS Line Bill Price, AEA Senior Infrastructure Engineer, gave the update on the Sterling to Quartz Creek Substation (SQ) Line and Soldotna Substation to Sterling Substation (SS) Line upgrades. Mr. Price indicated that not much has changed since the memorandum included in the Board packet was delivered. In general, the SQ is on schedule. The Environmental Assessment (EA) will be discussed next week in a public meeting. If the schedule does not change, the SQ upgrade will go out to bid this fall and winter for materials, and construction will begin next winter. Alaska Energy Authority Page 13 of 20 Mr. Price indicated that the SS Line upgrades were supposed to occur this winter. However, the steel price came back very high, and no resolution has been reached. The Bradley Lake O&D Committee meeting will occur next Friday, and discussions will occur regarding value engineering cost savings, new bidders, and what can be done about the high prices from an engineering project management perspective. Additionally, there will be discussions if it is even possible to complete both the SQ Line upgrades and the SS Line upgrades next season. It would be a significant amount of work at the same time. Mr. Price commented that it is possible that the SQ schedule could change, but those discussions have not been finalized. There were no comments or questions. iv. Battle Creek Bond Subsidies from IRS Mr. Thayer discussed that the memorandum in the packet regarding the Battle Creek Bond Series 7 debt service payments and IRS subsidies is for informational purposes. He explained that the New Clean Renewable Energy Bonds (NCREBS) rebate from the IRS is approximately $500,000 and is normally received in January and July. However, within the prior 18 months, the IRS process changed from issuing by ACH to issuing by paper check. During this change, a paper check was lost and returned, and a subsequent payment was delayed. These issues have continued. Mr. Thayer emphasized that Ms. Ellis and Mark Ziesmer have been pursuing the timely receipts and have engaged Senator Dan Sullivan. The NCREBS for January 2025 have not yet been received. Mr. Thayer discussed that the BPMC is aware of the situation and has agreed to use their R&C account funds for the bond payments. Those funds will be replaced when the NCREBS funding is received. Mr. Thayer reiterated this item is included to inform Board members of the status. There were no comments or questions. B. Rural Programs i. Power Cost Equalization (PCE) Endowment fund Update Mr. Thayer explained that the information included in the PCE report is received from the Alaska Permanent Fund Corporation (APFC), who by statute, oversees the endowment. AEA has no involvement in the investments, but the funds are carried on the books. The average ending market value of the fund as of June 30, 2025 was $961 million. The earnings for the fund in the previous closed fiscal year was $68 million, which exceeds the PCE costs of $47 million. The next batch goes to community assistance in rural Alaska through Department of Commerce. If additional funding remains, it can be used for powerhouse and the Renewable Energy Fund. Mr. Thayer reiterated that this item is for informational purposes. There were no comments or questions. C. Renewable Energy & Energy Efficiency Update: Audrey Alstrom, AEA Director Alternative Energy, reviewed the Renewable Energy and Energy Efficiency (REEE) project list and update. Alaska Energy Authority Page 14 of 20 i. Electric Vehicles / NEVI Mr. Thayer noted that at the time the report was drafted, the NEVI program was suspended. However, since June 27, 2025, parts of the NEVI program have been reinstated. Ms. Alstrom invited Ms. Hartley to provide the electric vehicle (EV) update. Ms. Hartley discussed there have been a number of developments to the NEVI program within the last week. A lawsuit was filed by 14 states to restore their NEVI funding, which claimed that the Trump Administration had violated provisions within the Impoundment Control Act. A federal judge issued a preliminary injunction that restored access and obligation to NEVI funds through the Federal Highway Administration (FHWA) to those 14 states that were party to the lawsuit. The Trump Administration has not appealed the decision. It is expected to move forward. Ms. Hartley explained that the last update was that FHWA was planning to issue new program guidance in the spring, following the rescission of prior plan approvals. The new guidance is expected to form the State plans, which would then restore access to the funding. However, no guidance has been provided. The new update is that the proposed guidance has moved from FHWA US Department of Transportation (DOT) to OMB. Ms. Hartley indicated that she is unsure of how long OMB’s review process will take. Once the review passes through OMB, it will be released to the public for a 30-day comment period, and then passed to states. The states will be required to issue a new NEVI plan. Ms. Hartley discussed that the Government Accountability Office (GAO) issued a decision finding that the Trump Administration violated the provisions within the Impoundment Control Act, and constituted an unauthorized withholding of budget authority. This decision further pushes the Trump Administration to release access to the NEVI funds. Additionally, other relevant context includes the US DOT FY26 budget and the President’s FY26 budget highlights show that the Trump Administration intends to cancel the FY26 NEVI funding, along with any unobligated balances from prior years, which would basically cancel all of Alaska’s NEVI funding. However, staff received feedback from NASEO and American Association of State Highway and Transportation Officials (AASHTO) that those budget proposals reflect more of a wish list, since the funds were appropriated by Congress, and it would take an act of Congress to repeal the appropriation of those funds. Furthermore, being that the cancellation was not within the Reconciliation Bill, it likely would come through the Surface Transportation Bill. Again, sources within NASEO and AASHTO believe that scenario is unlikely due to the political friction it would cause. Ms. Hartley summarized the comments that staff is more optimistic that the NEVI funding will be restored, and that staff will have an opportunity to propose a new plan to the Trump Administration to potentially move forward with some of the sites that have been planned over the last couple of years. There were no comments or questions for Ms. Hartley. Alaska Energy Authority Page 15 of 20 ii. Solar for All Ms. Alstrom reported that AEA received $62 million for the Solar for All effort. The funding is split 50/50 with AEA and Alaska Housing Finance Corporation (AHFC). AEA’s portion focuses on rural community solar and AHFC focuses on residential solar. AEA is also partnering with the Alaska Municipal League on outreach, and with Alaska Center for Energy and Power (ACEP) and National Renewable Energy Laboratory (NREL) for technical assistance. Since receiving the grant last year, approximately $500,000 has been expended. Ms. Alstrom commented that there have been some questions and rumors regarding the possibility of the elimination of the Greenhouse Gas Reduction Fund and the Solar for All program by the passage of the Reconciliation Bill. However, speaking with the project officer at the Environmental Protection Agency (EPA) and with partners at NASEO, the current understanding is that the Solar for All funds were obligated, and like other obligated funds, they are safe to be expended toward the grant. Ms. Alstrom explained that since last fall, staff has drafted and received approval of the revised workplan that basically removed all prior conditions on the grants. AEA has access to all the funds now. The stipulation is that the current phase is the planning phase, and then another revised workplan must be submitted to the EPA to inform them that all of the planning is complete and the plan is ready for the execution phase. AEA has until December to submit that revised workplan and await approval to move into the execution phase. Staff anticipates the revised workplan will be submitted significantly before the December deadline. Ms. Alstrom reviewed that AEA has hosted numerous outreach activities, including a Railbelt utility meeting in support of AHFC’s efforts on the residential solar aspects of the program. Additionally, AEA held a couple of Solar Advisory Panel meetings. The panel consists of members representing different organizations in rural Alaska to help develop the rural community solar efforts. Important feedback was provided on the selection process and how to best roll out the community solar portion of the program. Furthermore, AEA held a Solar Working Group meeting to provide updates to the public. There were no comments or questions. iii. State Energy Program (SEP) Ms. Alstrom discussed that the SEP funds are split 50/50 with AHFC. A no cost extension until this fall was received for funds that were not expended for a grant that expired in June. An application was submitted for the upcoming fiscal year’s SEP annual formula funds. Ms. Alstrom noted that the SEP-BIL is moving forward, and the Energy Efficiency and Conservation Block Grant (EECBG) projects have been selected and are moving forward. AEA is awaiting DOE finalization of the Home Rebate applications submitted in January. Ms. Alstrom reiterated earlier comments that there has been changeover at DOE. Ms. Alstrom highlighted that the Training Residential Energy Contractors (TREC) program in partnership with AHFC continues to move forward. There were no comments or questions. Alaska Energy Authority Page 16 of 20 iv. Biomass Ms. Alstrom discussed that one of the Wood Innovations Grants has been completed and is being closed out. Its scope included feasibility studies in many communities, such as Dillingham, Cordova, Glennallen, Galena, and Elim. An additional Wood Innovations Grant is ongoing, providing a biomass training last fall, and a scheduled train-the-trainer session in August 2025. Ms. Alstrom indicated there are a few other biomass grant applications that were submitted to the United States Department of Agriculture (USDA) that are awaiting responses. There were no comments or questions. D. Planning update: i. Net Metering Pilot Program Update Mr. Thayer announced that Han Zhang has joined the AEA Planning team as a project manager, and an additional project manager is expected to begin on December 21, 2025. Conner Erickson, Planning Director, gave the update on the Net Metering Pilot Program. Mr. Erickson explained that the Net Metering Pilot Program is a government sponsored initiative with funds being received through the Governor’s Office to stand up a pilot program with the intent to provide additional incentive payments to equalize net metering payments to current net metering members among the Railbelt utilities. This would provide a supplemental reimbursement rate that is equivalent to the full retail rate, versus the rate afforded under the current regulation. AEA is currently in the process of establishing the program. The utilities are apprised of the structure of the program and are providing comments. After the program design is confirmed, the program will launch in approximately three weeks. The program will be used to identify how AEA may promote net metering changes and net metering legislation in the future. There were no comments or questions. ii. Renewable Energy Grant Fund Update Mr. Thayer discussed that the information provided gives an overview of the closure of the REF Round 17, as discussed earlier, and the proposed timeline for REF Round 18. Mr. Erickson expressed appreciation for the support of the Legislature and the Governor for the $6.3 million allocated in the proposed budget to fund the top five recommended projects for the REF Round 17. He noted that the money was funded through a direct transfer from the PCE Endowment Fund and not via the waterfall effect. Mr. Erickson reiterated his thanks for the continuance and evidence of support of the program and its efficacy in developing and catalyzing renewable energy development across the state. Mr. Erickson explained that preparations are underway and on schedule for the REF Round 18 Request for Applications (RFA) target date of this Monday. The application submission period will close on September 12, 2025. After which, the annual evaluation of the applications will begin. The recommendations will then be presented to the REF Advisory Committee (REFAC) for review. Alaska Energy Authority Page 17 of 20 The necessary deliverables will be provided to the Legislature as required under statue in January. There were no comments or questions. E. Railbelt Transmission Organization (RTO) Update Mr. Thayer commented that Karen Bell, RTO Program Manager, has spent a considerable amount of time and focus on the RTO for the last six months. He noted that Kelly Rajab is in attendance and is in her third week as a financial analyst. Karen Bell, RTO Program Manager, discussed that the RTO met its statutory deadline and submitted its proposed Open Access Transmission Tariff (OATT) to the RCA on July 1, 2025. The tremendous effort included collaboration between AEA, all of the Railbelt utilities, and the Railbelt Reliability Council (RRC). Ms. Bell indicated there is still work to complete in the timeframe after the July 1, 2025 submittal. The RTO requested the RCA approve the terms and provisions in its tariff, as well as a formulaic approach and methodology to its annual transmission revenue requirement. The RTO is not asking for the rate to be effective at this time. Several activities need to occur at both the RTO level and the individual utility level, including the completion of studies, updating recent financial information, and coordinating the change in timing with the current tariffs. The proposed OATT that was submitted is open for public comments at the RCA until July 16, 2025. Mr. Thayer recognized Mr. Izzo for being the Chair of the RTO since January. Mr. Thayer commented that he and Mr. Izzo have spent close to 100 hours in governance meetings since January, and that Ms. Bell has spent thousands of hours on this issue. Ms. Miller expressed appreciation to Ms. Bell for the update. She commended and congratulated Ms. Bell and the team for establishing the RTO and submitting the OATT within the tight statutory timeline. Ms. Miller believes the RTO has launched with good credibility and feels that the Legislature will view this in a bright light. She reiterated her appreciation for the diligent effort in managing the numerous stakeholders. Mr. Izzo echoed Ms. Miller’s comments regarding AEA’s fantastic efforts. He commented that had the Legislature not set the aggressive deadline, he does not believe the timeframe would have been the same. Mr. Izzo reiterated that thousands of collective hours were spent on meeting that deadline. He stated that this process was a proven reminder to him regarding the effectiveness of legislative and regulatory deadlines. There were no other comments or questions. F. Canceled Funding Opportunity (OCED – ERA Concept Papers) Mr. Thayer stated that the memorandum regarding the canceled DOE Office of Clean Energy Demonstration (OCED) submittals is for informational purposes. At the previous Board meeting, staff discussed that AEA expended effort and submitted the four listed applications, even though DOE was at the same time freezing funding for other programs. Since the previous meeting, AEA was notified that the four grant programs that AEA applied for were cancelled. Mr. Thayer Alaska Energy Authority Page 18 of 20 reiterated that it was odd that DOE froze programs at the same time DOE was taking applications for other programs. There were no comments or questions. G. Community Outreach Mr. Thayer discussed that AEA continues to be engaged in the community through news, media, and meetings. Later today, AEA will host a tour of the Nelson Lagoon powerhouse that was built in Palmer. AEA contracts to have the powerhouses built. Before they are shipped to Nelson Lagoon, AEA invites the local media, Board members, legislators, Governor’s Office, and the public to tour the powerhouse and to showcase the efforts locally. Today’s tour will include approximately 12 people. Mr. Thayer gave an anecdotal example of the importance of these local powerhouse tours. He noted that during a legislative session several years ago, all of the funding for the powerhouses got zeroed out. Mr. Thayer contacted the legislative Chair who requested an explanation of the funding request, whereby Mr. Thayer reminded her that she toured the open house for the powerhouse. She remembered the tour and restored the funding. The goal of the tours is to maintain the level of exposure for these projects. There were no comments or questions. H. Articles of Interest Mr. Thayer highlighted that the articles of interest are included in the Board packet. I. Next Regularly Scheduled AEA Board Meeting – Thursday, October 30, 2025, 9:00 a.m. Mr. Thayer reviewed that the next regular meeting is scheduled for October 30, 2025, during which time the audit will be discussed. Board members will receive the audit before the meeting. No findings are expected. There were no comments or questions. J. Special Committee on Project Finance Options Meeting – August (exact date TBD) Mr. Thayer noted that the Special Committee on Project Finance Options Meeting is scheduled for August 27, 2025 via Teams. Board members will be invited. The goal of the Special Committee is to examine the different financing options for both the Dixon Diversion project and the CIPLink project to narrow the choices to the best two or three alternatives. The Special Committee will also work with the BPMC and with the RTO to review the financing options. Mr. Thayer noted that the AEA Board is the ultimate decision-maker on these options. Staff will keep the Board apprised of the process and will provide modeling in order for the Board to deliver feedback to move the projects forward without delay. There were no comments or questions. MOTION: A motion was made by Ms. Miller to enter into executive session to discuss confidential personnel matters and confidential information related to AEA strategic Alaska Energy Authority Page 19 of 20 planning. This is supported by the Open Meetings Act, AS44.62.310, 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, or are protected by law due to rules governing personal privacy, certain business information, and deliberative process. Motion seconded by Mr. Izzo. Mr. Siedman requested a friendly amendment to add the discussion on the Renewable Energy Certificates as it impacts the finances of AEA. There was no objection to the friendly amendment. A roll call was taken, and the motion to enter into executive session as stated including the friendly amendment passed unanimously. 9. EXECUTIVE SESSION – 11:04 am. Discuss confidential: A. Personnel matters B. Information related to AEA Strategic Planning C. Renewable Energy Certificates (RECs) The Board reconvened its regular meeting at 11:58 am. Ms. Miller advised that she would close out the meeting, as Chair Koplin had to catch a plane. Ms. Miller advised that the Board did not take any action while in Executive Session. 10. BOARD COMMENTS Mr. Izzo commented on the great meeting. He commended Mr. Thayer and staff, particularly Ms. Hartley, Ms. Bell, Mr. Price, Mr. Erickson and others who provided excellent updates. He noted that staff seems to be effective and focused on addressing the significant challenges. Staff’s efforts are noticed and appreciated. Mr. Siedman echoed Mr. Izzo’s comments. He reiterated appreciation to staff for their dedicated efforts on all of the projects, as well as additional efforts such as the Sustainability Conference. Mr. Mathiasson echoed the comments of appreciation for the good meeting and good updates. He understands the amount of time staff has dedicated to successfully reaching the imposed time deadlines. Ms. Miller noted that she was appointed for a one-year term, and her term expires on August 1, 2025. Ms. Miller announced her decision not to renew her term is due to personal reasons. She expressed that it has been an honor serving with the Board. Ms. Miller commented that AEA is a major bright spot for the State, providing hope to relieve the state’s high energy costs. She believes Mr. Thayer has done a tremendous job leading the organization. Ms. Miller appreciates the format that staff report on their individual work items and receive recognition for their efforts. She enjoyed serving on the Personnel Committee and receiving feedback from the staff, who express their motivation for the mission of AEA. Ms. Miller commented it has been a pleasure serving on the Board. She commended the Board and AEA for their efforts. Alaska Energy Authority Page 20 of 20 11. ADJOURNMENT There being no further business of the Board, the AEA meeting adjourned at 12:04 pm. ______________________________________ Clay Koplin ______________________________________ Curtis W. Thayer, Secretary Alaska Energy Authority (A Component Unit of the State of Alaska) Basic Financial Statements, Required Supplementary Information, Supplementary Information, and Other Information For the Year Ended June 30, 2025 (With Independent Auditor’s Report Thereon) DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Basic Financial Statements, Required Supplementary Information, Supplementary Information, and Other Information Year Ended June 30, 2025 DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Contents Page Independent Auditor’s Report 1-4 Management’s Discussion and Analysis 5-21 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position 22-23 Statement of Activities 24 Fund Financial Statements: Governmental Fund: Balance Sheet 25 Reconciliation of Governmental Fund Balance Sheet to Statement of Net Position 26 Statement of Revenues, Expenditures, and Changes in Fund Balances 27 Reconciliation of Change in Fund Balance of Governmental Fund to Statement of Activities 28 Enterprise Fund: Statement of Net Position 29 Statement of Revenues, Expenses, and Changes in Net Position 30 Statement of Cash Flows 31 Notes to Basic Financial Statements 32-83 DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Contents Page Required Supplementary Information Public Employees’ Retirement System (PERS) Pension Plan: Schedule of the Authority's Proportionate Share of the Net Pension Liability and Schedule of the Authority’s Contributions 84 Public Employees’ Retirement System (PERS) OPEB Plans: Schedule of the Authority’s Proportionate Share of the Net OPEB Liability (Asset) and Schedule of the Authority’s Contributions - ARHCT 85 Schedule of the Authority’s Proportionate Share of the Net OPEB Liability (Asset) and Schedule of the Authority’s Contributions - RMP 86 Schedule of the Authority’s Proportionate Share of the Net OPEB Liability (Asset) and Schedule of the Authority’s Contributions - ODD 87 Notes to Required Supplementary Information 88-89 Supplementary Information Schedules 1 Special Revenue Fund – Projects and Programs – Balance Sheet 90 2 Special Revenue Fund – Projects and Programs – Statement of Revenues, Expenditures, and Changes in Fund Balance 91 3 Business-Type Activities – Enterprise Fund –Projects and Programs - Statement of Net Position 92-93 4 Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Revenues, Expenses, and Changes in Net Position 94 Other Information (Unaudited) 5 Bradley Lake Hydroelectric Project Trust Account Activities 95 6 Capital Assets Presented under Federal Energy Regulatory Commission 96 7 Bradley Lake Historical Annual Project Cost 97 8 PCE Endowment Fund Historical Analysis 98 9 Supplementary Organization and Project Information 99-102DTAFT 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 3601 C Street, Suite 600 Anchorage, AK 99503 Tel: 907-278-8878 Fax: 907-278-5779 www.bdo.com Independent Auditor’s Report The Board of Directors Alaska Energy Authority Anchorage, AK Report on the Audit of the Financial Statements Opinions 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 and for the year ended June 30, 2025, 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, based on our audit and the report of the other auditors, the accompanying financial statements referred to above 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, 2025, 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. We did not audit the financial statements of the Power Cost Equalization Endowment Fund (PCE Fund), which represents 92% and 59% respectively, of the assets and revenues of the Governmental Activities and Major Special Revenue Fund opinion units as of June 30, 2025, and the respective changes in financial position for the year then ended. Those statements were audited by other auditors whose report has been furnished to us, and our opinions insofar as it relates to the amounts included for the PCE Fund are based solely on the report of the other auditors. Basis for Opinions 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. The financial statements of the PCE fund were not audited in accordance with Government Auditing Standards. 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 Authority 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 opinions. DTAFT 2 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 for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 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 opinions. 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. DTAFT 3 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedules of the Authority’s proportionate share of net pension and OPEB liabilities and assets, and related contributions, are 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 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. 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s basic financial statements. The accompanying special revenue fund - project and programs - balance sheet and statement of revenues, expenditures, and changes in fund balance, and business-type activities - enterprise fund - program and programs - statement of net position and statement of revenues, expenses, and changes in net position are presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information 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. The 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 accompanying special revenue fund - project and programs - balance sheet and statement of revenues, expenditures, and changes in fund balance, and business-type activities - enterprise fund - program and programs - statement of net position and statement of revenues, expenses, and changes in net position are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Bradley Lake Hydroelectric Project Trust Account Activities, Capital Assets Presented under Federal Energy Commission Requirements, Bradley Lake Historical Annual Project Cost, PCE Endowment Fund Historical Analysis, and Supplementary Organization and Project Information, as listed in the table of contents, but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. DTAFT 4 In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement or the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated XXXX, 2025 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, 2025 DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 5 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, 2025. 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), Emerging Energy Technology, 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, the planning of Dixon Creek diversion and pool raise, and the Sterling Substation to Quartz Creek Substation (SSQ Line) transmission line upgrades. The Statement of Net Position presents financial information for all the Authority’s assets and deferred outflow of resources less liabilities and deferred inflows of resources, which results in the Authority’s net position. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 6 This statement is designed to display the overall financial position of the Authority. 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 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 Fund The Authority reports one governmental fund which 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. Proprietary Funds – Enterprise Fund The Authority has one proprietary fund which is reported as an enterprise fund. The Enterprise Fund is a self- supporting fund that is used to account for goods and services provided to the public for which a fee is charged to external users. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 7 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; • Schedule 2: Special Revenue Fund – Projects and Programs – Statement of Revenues, Expenditures, and Changes in Fund Balance; • Schedule 3: Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Net Position; • Schedule 4: Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Revenues, Expenses, and Changes in Net Position; • 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) DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 8 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 and deferred outflows of resources exceeded their liabilities and deferred inflows of resources by $1.41 billion at June 30, 2024 and $1.43 billion at June 30, 2025. Of the total net position at June 30, 2025, $332.1 million was invested in capital assets net of related debt, $1.25 billion was restricted, and ($155.9) million was unrestricted (deficit). Of the total net position at June 30, 2024, $325.6 million was invested in capital assets, net of related debt, $1.25 billion was restricted, and ($164.4) million was unrestricted (deficit). In both years, invested in capital assets, net of related debt, is related to the Bradley Lake Hydroelectric Project, Alaska Intertie Project, and Susitna-Watana Hydroelectric Project. The remainder of net position is considered restricted for capital projects, debt service or restricted due to agreements with external parties, and legislation. The following tables are provided to show the Authority’s total assets and deferred outflows of resources, liabilities and deferred inflows of resources, and net position at June 30, 2025 and 2024: 2025 2024 Variance 2025 2024 Variance Assets: Current and other noncurrent assets 1,138,984$ 1,116,221$ 22,763$ 239,297$ 250,018$ (10,721)$ Capital assets - - - 375,026 369,244 5,782 Total assets 1,138,984 1,116,221 22,763 614,323 619,262 (4,939) Total assets 1,138,984 1,116,221 22,763 614,323 619,262 (4,939) Deferred Outflows of Resources: Deferred outflows PERS and OPEB 511 - 511 - - - Liabilities: Current liabilities 109,145 103,979 5,166 20,495 24,127 (3,632) Noncurrent liabilities 7,016 - 7,016 191,616 195,915 (4,299) Total liabilities 116,161 103,979 12,182 212,111 220,042 (7,931) Deferred Inflows of Resources: Deferred inflows OPEB 34 - 34 - - - Net Position: Net investment in capital assets - - - 332,127 325,656 6,471 Restricted 1,023,300 1,012,242 11,058 225,965 237,937 (11,972) Unrestricted deficit - - - (155,880) (164,373) 8,493 Total net position 1,023,300 1,012,242 11,058 402,212 399,220 2,992 Total liabilities and net position 1,139,495$ 1,116,221$ 23,274$ 614,323$ 619,262$ (4,939)$ Governmental Activities Business-Type Activities Governmental Activities DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 9 Current and noncurrent assets The following table is provided to show the details of the Authority’s current and noncurrent assets at June 30, 2025 and 2024: 2025 2024 Variance Restricted cash and cash equivalents 115,888$ 107,662$ 8,226$ Investments, restricted 960,048 955,512 4,536 Receivables for investments 8,555 5,515 3,040 Operating receivables 790 223 567 Prepaid items 48 217 (169) Due from federal government 4,873 2,292 2,581 Due from State of Alaska 17 158 (141) Due from State of Alaska's component units 14 - 14 Due from proprietary funds/internal balances 537 597 (60) Securities lending collateral 46,735 44,045 2,690 Net OPEB asset 1,479 - 1,479 Current and noncurrent assets 1,138,984$ 1,116,221$ 22,763$ Current and noncurrent assets in total are $22.8 million higher in the current fiscal year. Restricted cash and cash equivalents held by the Authority increased by $8.2 million. Power Cost Equalization (PCE) Fund increased by $0.8 million due to increased investment earnings. Renewable Energy Grant Fund increased by $1.6 million due to increased investment earnings, Rural Energy Projects Fund Amounts increased by $5.6 million due to an increase in State of Alaska cash draws required for match of federal grants, and the Community Contributions Fund increased by $0.2 million due to an increase of match requirements by communities of federal grants awarded. Investments increased by $4.5 million. The Power Cost Equalization Fund investments increased by $7.8 million due to increased investment earnings. The Renewable Energy Grant Fund decreased by $3.3 million due to cash draws taken from the fund that were greater than investment earnings and contributions from the State of Alaska. Receivables for investments increased by $3.0 million. The increase was attributed only to the Power Cost Equalization Fund which had higher investment assets and earnings and thus higher receivables over the prior year. Operating receivables increased by $0.6 million. Rural Energy Grant Fund increased by $0.5 million due to a shared payable agreement with the Railbelt Transition Authority (RTO). RTO is a newly created entity as part of HB 307. The Volkswagen Diesel Settlement Fund had increased receivables of $0.3 million. Timing of reimbursement request submitted, and funds received from this Fund can fluctuate annually. Receivables for the Community Contributions Fund decreased by $0.2 million. Community contributions from communities can fluctuate annually due to timing of matching requirements of various grant subawards. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 10 Due from federal government increased by $2.6 million this is 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 $0.1 million. This balance will fluctuate annually and is comprised primarily of reimbursable service agreements with other State of Alaska departments. 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 $60.0 thousand decrease is due to timing of fiscal year 2025 related billing and reimbursement requests. Securities lending collateral increase of $2.7 million is related to the PCE Fund. State regulations at 15 AAC 137.510 and the Alaska Permanent Fund Corporation (APFC) investment policy authorizes 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 PCE 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 United States (U.S.) government or a U.S. government agency. At June 30, 2025, there were $2.7 million more of securities on loan as required cash collateral over what was required at June 30, 2024. Net Other Post Employment Benefits (OPEB) asset is based on the most recent plan valuation. The net OPEB asset is impacted by changes in actuarial assumptions and experience. The Authority’s allocation portion of these amounts for fiscal year 2025 was $1.5 million. Deferred Outflows of Resources The following table is provided to show the details of the Authority’s deferred outflows of resources at June 30, 2025 and 2024: 2025 2024 Variance Related to employee pensions 422$ -$ 422$ Related to OPEB 89 - 89 Deferred Outlfows of Resources 511$ -$ 511$ Enacted legislation House Bill (HB) 307 on July 31, 2024, changed how AEA operates and is structured. As of July 1, 2024, AEA operated with separate employees from Alaska Industrial Development and Export Authority (AIDEA). Therefore, for fiscal year 2025 AEA assumed a proportionate share of the deferred outflows of resources related to employees’ pension and OPEB as part of the Public Employee’s Retirement System (PERS) of the State of Alaska. These deferred outflows of resources that relate to PERS is based on the most recent plan valuation. Deferred outflows of resources include the impact of changes in certain actuarial assumptions and experience. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 11 Current and noncurrent liabilities The following table is provided to show the details of the Authority’s current and noncurrent liabilities at June 30, 2025 and 2024: 2025 2024 Variance Due to federal government 1$ 37$ (36)$ Due to State of Alaska 33,549 25,622 7,927 Due to State of Alaska's component units 941 3,035 (2,094) Due to local governments 7,266 8,498 (1,232) Accounts payable 18,036 20,367 (2,331) Unearned revenue - grant match from outside entities 984 877 107 Other liabilities 1,633 1,498 135 Securities lending collateral 46,735 44,045 2,690 Advances from State of Alaska component unit 3,500 - 3,500 Net pension liability 3,516 - 3,516 Current and noncurrent liabilities 116,161$ 103,979$ 12,182$ Current and noncurrent liabilities increased in this fiscal year by $12.2 million. The increase in current liabilities is primarily from the due to State of Alaska of $7.9 million, the PCE Endowment Fund securities lending collateral liability increase of $2.7 million, advances from the State of Alaska component units initial year liability for $3.5 million, and net pension liability initial year liability of $3.5 million. Decreases to the current and noncurrent liabilities were primarily due to the State of Alaska’s component units of $2.0 million, the due to local governments decrease of $1.2 million, and the accounts payable decrease of $2.3 million. The decrease in amounts due to State of Alaska’s component units, due to local governments, and accounts payable is a result of the Authority’s normal day-to-day operations. Deferred Inflows of Resources The following table is provided to show the details of the Authority’s deferred inflows of resources at June 30, 2025 and 2024: Deferred inflows of resources related to OPEB is based on the most recent plan valuation. The deferred inflows of resources related to OPEB is impacted by changes in actuarial assumptions and experience. 2025 2024 Variance Related to OPEB 34$ -$ 34$ DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 12 Net Position The following table is provided to show details of the Authority’s net position at June 30, 2025 and 2024: The Governmental Activities Net Position increased by $11.1 million during the current fiscal year. Net Position restricted by legislation increased by $9.6 million. This overall increase was the result of an increase for $12.6 million due to investment earnings of the PCE Endowment Fund and a net decrease of $3 million from the adjusted net pension and OPEB asset, deferred outflow of resources, liability, and deferred inflow of resources. Net Position restricted for OPEB was an increase of $1.5 million in fiscal year 2025 due to recognizing the initial year of the OPEB asset. Business-Type Activities Business-type activities are functions of the Authority in which customer user fees and charges are used to help cover all or most of the cost of services they provide. The Authority’s business-type activities include the Bradley Lake Hydroelectric Project, the Alaska Intertie Project, the Susitna-Watana Hydroelectric Project, the Power Project Fund, and the Power Development and Railbelt Energy Projects. Current and other noncurrent assets The following table is provided to show the details of the Authority’s current and noncurrent assets, excluding capital assets at June 30, 2025 and 2024: 2025 2024 Variance Restricted cash and cash equivalents 209,203$ 218,317$ (9,114)$ Operating receivables 539 216 323 Prepaid items 1 - 1 Loans receivable, net allowance 29,508 30,832 (1,324) Due from federal government 489 513 (24) Due from State of Alaska - 575 (575) Due from State of Alaska's component units - 100 (100) Accrued interest receivable 94 62 32 Due (to) from other funds/internal balances (537) - (537) Current and noncurrent assets 239,297$ 250,615$ (11,318)$ 2025 2024 Variance Restricted by legislation 1,021,855$ 1,012,242$ 9,613$ OPEB 1,445 - 1,445 Net Position 1,023,300$ 1,012,242$ 11,058$ DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 13 Overall current and noncurrent assets decreased by $10.8 million in the current fiscal year. The decrease in current and noncurrent restricted assets is primarily due to a decrease in restricted cash and cash equivalents of $9.1 million. This decrease was primarily due to expending $12.1 million of bond proceeds from the Bradley Lake Hydraulic Project Fund bond issue (Eleventh Series) in fiscal year 2025. Operating receivables increased by $323.0 thousand, associated with timing of monthly billing. Loans receivable (net of allowance) decreased by $1.3 million because no new loans were issued in the Power Project Loan Fund for fiscal year 2025 and principal payments during the year reduced the overall loan receivable of that fund. Due from federal government decreased $24.0 thousand and due from State of Alaska decreased $575.0 thousand. These balances will fluctuate year to year depending on the required funding of projects. Due from State of Alaska’s component units decreased by $100.0 thousand, this balance will fluctuate annually based on program or project needs. Accrued interest receivable increased by $32.0 thousand primarily as a result of a new loan in 2024 of the Power Project Loan Fund. Current and noncurrent liabilities The following table is provided to show the details of the Authority’s total current and noncurrent liabilities at June 30, 2025 and 2024: 2025 2024 Variance Due to federal government 292$ 175$ 117$ Due to State of Alaska 6,819 3,104 3,715 Due to State of Alaska's component units 11 21 (10) Accounts payable 5,968 8,478 (2,510) Capital acquisition and construction accounts 2,188 1,304 884 Capital acquisition and construction accounts (due to federal government)68 13 55 Capital acquisition and construction accounts (due to State of Alaska)- 6 (6) Bonds payable 195,915 201,253 (5,338) Accrued interest payable 850 5,688 (4,838) Current and noncurrent liabilities 212,111$ 220,042$ (7,931)$ DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 14 Overall total current and noncurrent restricted liabilities decreased in the current fiscal year by $7.9 million. Due to federal government increased by $117.0 thousand, this balance will fluctuate year to year depending on program or project needs. Due to the State of Alaska increased by $3.7 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 decreased by $10 thousand, these balances will fluctuate annually based on project need. Accounts payable, to include capital acquisition and construction accounts increased by $933.0 thousand due to invoicing accruals at year end. Bond payable decreased by $5.4 million due to principal payments made for current outstanding debt issues with no new debt issues realized in the current fiscal year. Accrued interest payable decreased by $4.8 million related to timing of debt service payments of the Bradley Lake Hydroelectric Project Fund and accrued interest on existing debt compared to prior year. Net Position The following table is provided to show the details of the Authority’s Net Position at June 30, 2025 and 2024: 2025 2024 Variance Net investment in capital assets 332,127$ 325,656$ 6,471$ Restricted for capital projects 162,420 170,596 (8,176) Restricted for debt service 18,267 18,353 (86) Restricted by agreements with external parties 30,839 37,025 (6,186) Restricted by legislation 14,439 11,963 2,476 Unrestricted deficit (155,880) (164,373) 8,493 Total Net Position 402,212$ 399,220$ 2,992$ Overall Net Position increased in the current fiscal year by $3.0 million primarily due to the investment earnings of Bradley Lake Hydroelectric Project Fund. Net investment in capital assets increased $6.5 million due to the net effect of capital asset accumulated depreciation and reduction of debt related to those specific capital projects. Capital projects decreased by $8.2 million due to utilizing bond proceeds in reserve accounts restricted for capital projects and debt service decreased $8.6 thousand due to payments of debt service. Restricted by agreements with external parties decreased by $6.2 million due primarily to reduced balances owed to the Utilities from the previous fiscal year. Restricted by legislation increased by $2.5 million due to the increase of advanced funds for projects and programs. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 15 The following table is provided to show the Authority’s revenues, expenses, and changes in net position at June 30, 2025 and 2024: 2025 2024 Variance 2025 2024 Variance Revenues: Program revenues: Fees and charges for services 1,663$ -$ 1,663$ 27,013$ 26,377$ 636$ Operating grants and contributions 37,662 40,704 (3,042) 6,074 2,186 3,888 General revenues: Interest and investment income 98,276 71,172 27,104 8,678 9,846 (1,168) Total revenues 137,601 111,876 25,725 41,765 38,409 3,356 Expenses: Grants and projects 68,001 36,772 31,229 - - - Power cost equalization grants 46,762 44,931 1,831 - - - General and administrative 9,154 5,192 3,962 2,505 1,695 810 Interest expense - - - 11,200 11,413 (213) Plant operations - - - 13,010 8,678 4,332 Depreciation - - - 12,237 12,076 161 Total expenses 123,917 86,895 37,022 38,952 33,862 5,090 Transfers: Transfers from (to) other funds (179) (574) 395 179 574 (395) Extraordinary Item:(2,447) - (2,447) - - - Change in net position 11,058 24,407 (10,902) 2,992 5,121 (2,129) Net position, beginning of year 1,012,242 987,835 (186,996) 399,220 394,099 (8,807) Net position, end of year 1,023,300$ 1,012,242$ 11,058$ 402,212$ 399,220$ 2,992$ Governmental Activities Business-Type Activities 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 Emerging Energy Fund, the Rural Energy Projects, and the Volkswagen Diesel Settlement Fund. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 16 Total Revenues for governmental activities increased by $25.7 million, based on the following: • Fees and charges for services new for fiscal year 2025 for $1.7 million. The charges for services reported include the amounts received from the utilities as part of a 2025 RTO interim cost share agreement. Further information on this agreement can be found in the Related Parties Note. • Operating grants and 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 decreased by $3.0 million. Renewable Energy Grant funding of $2.8 million decreased over the prior fiscal year. Rural Energy Grant funding of $6.6 million increased over the prior fiscal year. Volkswagen Diesel Settlement Fund increased by $0.2 million over the prior fiscal year. • Interest and 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 increase of $27.1 million over the prior year’s investment income. Investment income in the PCE Endowment Fund is $96.7 million and for REF $1.6 million. Total Expenses for Governmental Activities increased by $37.0 million, based on the following: • Grants and projects expenses increased by $31.2 million in the current fiscal year. The increase was a combination of an overall increase of PCE Endowment Fund appropriations to the General Fund of the State of Alaska by $30.0 million, in addition to an overall increase of $2.1 million of expending supported by State of Alaska appropriations and federal grant funds for programs and projects. Also, starting in fiscal year 2025 there was $0.9 million of PERS and OPEB expenses recognized that decreased expenses. • PCE grants increased by $1.8 million due to increased appropriated funding for programs and projects from the PCE Endowment Fund. • General and administrative expenses increased by $4.0 million. 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 $3.4 million, based on the following: • Fees and charges for services increased by $0.6 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 $3.9 million due to project expenses related to the capital appropriations. Interest and investment income decreased by $1.2 million, due to fluctuations in the market. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 17 Expenses for business-type activities increased by $5.1 million, primarily based on the following: • General and administrative for the Bradley Lake Hydroelectric Project and the Alaska Intertie Project increased in the current fiscal year by $.8 million. The increase from the prior fiscal year is due to general and administrative personnel expenses being greater in the current fiscal year over the prior fiscal year. • Interest expense represents the cost of interest on the Authority’s Power Revenue Bonds for the Bradley Lake Hydroelectric Project. Interest expense decreased in the current fiscal year by $0.2 million. The decrease in interest expense is primarily due to a decrease in the amount of interest payments required to be paid on existing debt issuances. • Plant operations for the Bradley Lake Hydroelectric Project and the Alaska Intertie Project increased in the current fiscal year by $4.3 million. Plant operations consist of various activities required to maintain operations of each project. The increase from the prior year is primarily due to expenses incurred for operations being more in the current fiscal year over the prior fiscal year. Fund Financial Analysis Governmental Fund The focus of the Authority’s governmental fund is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Authority’s financing requirements. The following table is provided to show the Authority’s total Fund Balance for sub-funds of the governmental fund at June 30, 2025 and 2024: 2025 2024 Variance Power Cost Equalization Program 992,919$ 979,066$ 13,853$ Renewable Energy Grant Fund 31,021 31,925 (904) Emerging Energy Technology Fund 920 979 (59) Power Development Fund - 272 (272) Total Fund Balances 1,024,860$ 1,012,242$ 12,618$ At the end of the current fiscal year, the Authority’s governmental fund reported an ending fund balance of $1,024.9 million, which is an increase in comparison with the prior fiscal year. The Power Cost Equalization Program increases of $13.9 million is primarily due to increased investment earnings of the PCE Endowment Fund during the year. The decrease in the Renewable Energy Grant Fund by $0.9 million is a result of additional expending of grants and projects of the Renewable Energy Fund. The decrease in the Emerging Energy Technology Fund is a result of a decrease in expending of programs and projects for this year over the prior year. The Power Development Fund decrease of $0.3 million is a result of a transfer of cash to the Power Development Fund enterprise fund. This transfer was part of the close-out and transition to a new bank with new bank accounts. The ending fund balance is categorized primarily as restricted to indicate that there are externally enforceable limitations imposed regarding the expending of the fund balance. The fund balance is most entirely restricted by agreements with external parties or by legislation. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 18 There is a small nonspendable fund balance of $48.0 thousand related to prepaid expenses of the Rural Energy Projects. Nonspendable fund balance is fund balance of a governmental fund which cannot be spent because the underlying resources are not in spendable form or because the government is legally or contractually required to maintain the resources intact. Proprietary Fund The Authority’s proprietary fund financial statements consist of an enterprise fund, which provides detailed information of the same type found in the business-type activities section of the government-wide financial statements. The following table is provided to show the Authority’s total Net Position by project for the proprietary fund at June 30, 2025 and 2024: 2025 2024 Variance Bradley Lake Hydroelectric Project 163,202$ 160,821$ 2,381$ Alaska Intertie Project 11,326 11,811 (485) Susitna-Watana Hydroelectric Project 183,682 183,682 - Power Project Fund 42,008 41,184 824 Power Development and Railbelt Energy Projects 1,994 1,722 272 Total Net Position 402,212$ 399,220$ 2,992$ At the end of the current fiscal year, the Authority’s proprietary fund reported an ending Net Position of $402.2 million, which is an increase of $3.0 million in comparison with the prior fiscal year. The increase of $2.4 million for the Bradley Lake Hydroelectric Project was due primarily to an increase in capital asset acquisitions. The decrease of $0.5 million for the Alaska Intertie Project was due to lower operating revenues net of higher operating expenses. The Power Project Fund increased $0.8 million this is due to increased legislative appropriations. The Power Development and Railbelt Energy Projects increased $0.3 million this is due to the transfer of cash from the governmental fund Power Development Fund. This was part of the close-out and transition to a new bank with new bank accounts. The following table is provided to show the proprietary fund Net Position by category at June 30, 2025 and 2024: 2025 2024 Variance Net investment in capital assets 332,127$ 325,656$ 6,471$ Restricted for capital projects 162,420 170,596 (8,176) Restricted for debt service 18,267 18,353 (86) Restricted by agreements with external parties 30,839 37,025 (6,186) Restricted by legislation 14,439 11,963 2,476 Unrestricted deficit (155,880) (164,373) 8,493 Total Net Position 402,212$ 399,220$ 2,992$ DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 19 Total net position increased by $3.0 million. Restricted for capital projects decreased $8.2 million primarily for increased expending of bond proceeds on capital projects. Restricted for debt service decreased by $.1 million due to the decrease 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 $6.2 million due primarily to lower operating surplus reimbursement balances due from the Bradley Lake Hydroelectric Project. Restricted by legislation increased by $2.5 million due to the increase of advanced funds for projects and programs. The Net investment in capital assets increased by $6.5 million, which is the net effect of capital asset additions, retirements, accumulated depreciation net related debt. 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, 2025 amounts to $375.0 million (net of accumulated depreciation), which is an increase of $6.8 million from the prior fiscal year. The investment in capital assets only occurs in the enterprise funds and includes land and rights of way, infrastructure, equipment, and construction in progress. 2025 2024 Variance Land and Rights of Way 11,212$ 11,212$ -$ Equipment 1,567 1,817 (250) Infrastructure 162,285 164,941 (2,656) Construction in Progress 199,962 191,274 8,688 Total 375,026$ 369,244$ 5,782$ Business-Type Activities Capital assets, net of accumulated depreciation increased by $5.8 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 $196.0 million. The following table is provided to show the outstanding debt at June 30, 2024 and 2025: 2025 2024 Variance Power Revenue and Refunding Bonds Bradley Lake 154,830$ 158,547$ (3,717)$ Bradley Lake-Battle Creek private placement 35,739 37,114 (1,375) Sterling Substation to Quartz Creek (SSQ) private placement 5,346 5,592 (246) Total 195,915$ 201,253$ (5,338)$ Business-Type Activities Further information on the Authority’s long-term debt can be found in Note 5. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 20 Outlook In fiscal year 2025, the Alaska Energy Authority (AEA) reached a major governance milestone with the passage of House Bill 307, which Governor Mike Dunleavy signed into law July 31, 2024. The legislation established a distinct board of directors for AEA, composed of energy experts who provide focused oversight and strategic direction. With its own board, AEA is better positioned in fiscal year 2026 and beyond to address Alaska’s complex energy challenges in government policy, environmental stewardship and economic development. The Railbelt Transmission Organization (RTO) adopted bylaws and a charter agreement and filed the Open Access Transmission Tariff (OATT) by the statutory deadline—significant accomplishments for the year. The Regulatory Commission of Alaska’s (RCA) review process remains active and could introduce delays or modifications. Operational integration across participating entities will require continued negotiation and alignment. The RTO includes AEA, Alaska Electric & Energy Cooperative, Chugach Electric Association, Golden Valley Electric Association, Matanuska Electric Association, the City of Seward, and the Railbelt Reliability Council (ex-officio). RCA’s review of the proposed OATT will continue into fiscal year 2026. Looking ahead, additional federal funding from the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and other sources may continue to materialize. However, shifts in federal priorities could limit the actual funding received, so expectations should remain measured. While these opportunities are significant, they also carry risks: receipt authority and matching funds are contingent on legislative approval, and any delays or shortfalls could impact project timelines. To fulfill AEA’s mission, more personnel will be needed—yet recruiting for specialized roles remains a challenge in Alaska’s competitive labor market. AEA is advancing a broad portfolio of high-impact infrastructure initiatives designed to deliver lasting benefits for Alaska’s communities and economy. These include major capital projects such as the Cook Inlet PowerLink (CIPLink), Bradley Lake Expansion Project and Railbelt Transmission Upgrades—including the Sterling–Quartz Creek Transmission Line Upgrade. These projects strengthen grid reliability, support renewable energy integration, reduce long-term energy costs and enhance resilience for communities statewide. However, each faces unique engineering, environmental and financial hurdles, and while AEA is using bond proceeds, cost escalations and supply chain disruptions could affect delivery timelines. • The $413 million CIPLink project is a transformative high-voltage direct current transmission initiative aimed at eliminating single points of failure, enabling economic dispatch, supporting renewable integration, and enhancing grid resilience across the southern and central Railbelt. By unlocking constrained generation capacity and providing critical redundancy for military and industrial users, CIPLink is poised to play a vital role in Alaska’s energy future. AEA has secured $64.2 million in additional funding and is actively pursuing the remaining $142.3 million in matching funds, which will be requested in phases as the project advances. • The $342 million Bradley Lake Expansion Project (Dixon Diversion) will divert water from Dixon Glacier through a five-mile tunnel into Bradley Lake, increasing annual energy output by 50 percent—enough to power about 30,000 homes and offset 1.5 billion cubic feet of natural gas each year. The project is in its final year of environmental studies, with $19.7 million already secured for development and environmental review. Revenue bonds will primarily fund the initiative. A draft license amendment application to the Federal Energy Regulatory Commission, detailing design, operational plans and environmental mitigations, is scheduled for January 2026. Construction is expected to begin in 2028, with operations starting in 2031. DTAFT (A Component Unit of the State of Alaska) Management’s Discussion and Analysis June 30, 2025 (Tables are stated in thousands) 21 • AEA is deploying $166 million in bond proceeds across a collection of Railbelt Transmission Upgrade projects to enhance the reliability and operational flexibility of Alaska’s transmission system. Of this total, $50 million is dedicated to advancing the CIPLink project, supporting key activities such as design, environmental review and procurement strategies. Additional investments include $90 million for the Sterling–Quartz Creek Transmission Line Upgrade, which will increase transmission capacity from 115 kilovolt (kV) to 230 kV standards, reduce line loss and improve overall Railbelt resilience; and $28 million for battery energy storage systems to reduce oscillations at Bradley Lake and improve grid stability. The Power Cost Equalization program distributed $46.8 million in fiscal year 2025, benefiting 82,000 Alaskans across 193 communities and helping to make electricity more affordable in rural areas where energy costs are highest. For fiscal year 2026, AEA is focused on refining community facility classifications and expanding training, but the program’s long-term funding stability remains uncertain. Bulk Fuel Upgrades and Rural Power System Upgrades projects are ongoing, supported by federal and state funding. AEA is conducting a statewide assessment of rural bulk fuel and power generation infrastructure using advanced tools such as 3D photogrammetry, drone video capture and ArcGIS mapping to inform a three-year work plan. In fiscal year 2025, AEA assessed 44 bulk fuel facilities and 16 power distribution systems, with 18 more scheduled by year-end 2026, and is also evaluating barge headers and fill lines in 15 communities. AEA and the Denali Commission continue to leverage available funding as project focus shifts to maintenance and improvement. The authority will continue Bulk Fuel and Power Plant Operator training, Circuit Rider, technical assistance and electrical emergency support across Alaska. Logistical constraints and weather-related delays have affected fieldwork, and long-term sustainability will depend on consistent funding and local capacity building. The Renewable Energy Fund (REF) continues to deliver value, with 56 active projects under development as a direct result of funding appropriated since fiscal year 2021. In fiscal year 2025, the legislature approved funding for Round 17 of REF projects, which will support five new projects across four energy regions in fiscal year 2026. The REF has proven instrumental in realizing energy cost savings, promoting energy independence, facilitating technological knowledge transfers statewide, and leveraging substantial federal and local community funds, with consistent bipartisan support from the legislature. Project execution varies across regions, and some communities face barriers in permitting and procurement. AEA is working to streamline processes and improve technical support. In closing, AEA’s team remains deeply committed to reducing the cost of energy in Alaska and working to ensure that all Alaskans have access to safe, reliable and affordable energy. Achieving these goals will require ongoing collaboration with the Legislature, federal partners, utilities and local communities. DTAFT Alaska Energy Authority(A Component Unit of the State of Alaska) Statement of Net Position Governmental Business-TypeActivitiesActivities TotalAssets Current AssetsCash and cash equivalents, restricted 115,888$ 209,203$ 325,091$ Receivables for investments 8,555 - 8,555 Operating receivables 790 539 1,329 Prepaid expenses 48 1 49 Loans receivable - 1,169 1,169 Due from federal government 4,873 489 5,362 Due from State of Alaska 17 - 17 Due from State of Alaska's component units 14 - 14 Due from (to) other funds/internal balances 537 (537) - Accrued interest receivable - 94 94 Securities lending collateral 46,735 - 46,735 Total current assets 177,457 210,958 388,415 Noncurrent AssetsInvestments, restricted 960,048 - 960,048 Loans receivable, net of allowance - 28,339 28,339 Net other post-employment benefits (OPEB) asset (restricted)1,479 - 1,479 Capital assets, net of accumulated depreciation - 375,026 375,026 Total noncurrent assets 961,527 403,365 1,364,892 Total Assets 1,138,984 614,323 1,753,307 Deferred Outflows of Resources Related to employee pensions 422 - 422 Related to OPEB 89 - 89 Total deferred outflows of resources 511 - 511 Total Assets and Deferred Outflows of Resources 1,139,495$ 614,323$ 1,753,818$ See Notes to Financial Statements. (in thousands)June 30, 2025 22DTAFT Alaska Energy Authority(A Component Unit of the State of Alaska) Statement of Net Position, continued Governmental Business-TypeActivitiesActivities TotalLiabilities Current LiabilitiesDue to federal government 1$ 292$ 293$ Due to State of Alaska 33,549 6,819 40,368 Due to State of Alaska's component units 941 11 952 Due to local governments 7,266 - 7,266 Accounts payable 18,036 5,968 24,004 Capital acquisition and construction accounts - 2,188 2,188 Capital acquisition and construction accounts (due to federal government)- 68 68 Bonds payable - current portion - 4,299 4,299 Unearned revenue - grant match from outside entities 984 - 984 Accrued interest payable - 850 850 Other liabilities 1,633 - 1,633 Securities lending collateral 46,735 - 46,735 Total current liabilities 109,145 20,495 129,640 Noncurrent LiabilitiesAdvance from State of Alaska component unit 3,500 - 3,500 Net pension liability 3,516 - 3,516 Bonds payable - noncurrent portion - 191,616 191,616 Total noncurrent liabilities 7,016 191,616 198,632 Total liabilities 116,161 212,111 328,272 Deferred Inflows of ResourcesRelated to OPEB 34 - 34 Net PositionNet investment in capital assets - 332,127 332,127 Restricted for:Capital projects - 162,420 162,420 Debt service - 18,267 18,267 Agreements with external parties - 30,839 30,839 Legislation 1,021,855 14,439 1,036,294 OPEB 1,445 - 1,445 Unrestricted (deficit)- (155,880) (155,880) Total net position 1,023,300 402,212 1,425,512 Total Liabilities, Deferred Inflows of Resources, and Net Position 1,139,495$ 614,323$ 1,753,818$ See Notes to Financial Statements. (in thousands)June 30, 2025 23DTAFT Fees and OperatingCharges for Grants and Governmental Business-TypeFunctions/Programs Expenses Services Contributions Activities Activities Total Governmental ActivitiesPower Cost Equalization Program 82,868$ -$ -$ (82,868)$ -$ (82,868)$ Renewable Energy Grant Fund 8,026 - 5,473 (2,553) - (2,553) Emerging Energy Technology Fund 59 - - (59) - (59) Rural Energy Projects 32,517 1,663 31,742 888 - 888 Volkswagen Diesel Settlement Fund 447 - 447 - - - Total governmental activities 123,917 1,663 37,662 (84,592) - (84,592) Business-Type ActivitiesBradley Lake Hydroelectric Project 34,916 23,086 6,074 - (5,756) (5,756) Alaska Intertie Project 4,036 3,435 - - (601) (601) Power Project Fund - 492 - - 492 492 Total business-type activities 38,952 27,013 6,074 - (5,865) (5,865) Total Activities 162,869$ 28,676$ 43,736$ (84,592) (5,865) (90,457) General RevenuesInterest and investment income 98,276 8,678 106,954 Transfers (179) 179 - Extraordinary item (Note 14)(2,447) - (2,447) Change in Net Position 11,058 2,992 14,050 Net Position, Beginning of Year 1,012,242 399,220 1,411,462 Net Position, End of Year 1,023,300$ 402,212$ 1,425,512$ See Notes to Financial Statements. Net (Expense) Revenue and Changes in Net PositionProgram Revenues Alaska Energy Authority(A Component Unit of the State of Alaska) Statement of Activities (in thousands)Year Ended June 30, 2025 24DTAFT Major SpecialRevenue FundAssets Cash and cash equivalents, restricted 115,888$ Receivables for investments 8,555 Operating receivables 790 Prepaid expenses 48 Due from federal government 4,873 Due from State of Alaska 17 Due from State of Alaska's component units 14 Due from proprietary funds/internal balances 537 Securities lending collateral 46,735 Investments, restricted 960,048 Total assets 1,137,505$ Liabilities Due to federal government 1$ Due to State of Alaska 33,549 Due to State of Alaska's component units 941 Due to local governments 7,266 Accounts payable 18,036 Unearned revenue - grant match from outside entities 984 Other liabilities 1,633 Securities lending collateral 46,735 Advance from State of Alaska component unit 3,500 Total liabilities 112,645 Fund Balance Nonspendable 48 Restricted for Legislation 1,024,812 Total fund balance 1,024,860 Total liabilities and fund balance 1,137,505$ See Notes to Financial Statements. Alaska Energy Authority (A Component Unit of the State of Alaska) Balance Sheet – Governmental Fund (in thousands) June 30, 2025 25DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Reconciliation of Governmental Fund Balance Sheet to Statement of Net Position Total fund balance for governmental fund 1,024,860$ Total net position reported for governmental activities in the Statement of Net Position is different because: Certain OPEB plans have been funded in excess of the required contributions. These assets are not financial resources and therefore are not reported in the funds. Net OPEB assets 1,479 Long-term liabilities are not due and payable in the current period and therefore are not reported as fund liabilities. This liability consists of: Net pension liability (3,516) Certain changes in net pension and OPEB liabilities are deferred rather than recognized immediately. These items are amortized over time. Deferred outflows of resources related to pensions 422 Deferred outflows of resources related to OPEB 89 Deferred inflows of resources related to OPEB (34) Total Deferred Pension and OPEB Items 477 Total Net Position of Governmental Activities 1,023,300$ (in thousands) June 30, 2025 26DTAFT Major SpecialRevenue FundRevenuesFederal grants 12,791$ State of Alaska appropriations 24,410 Revenue from operating plants 1,662 Other revenues 460 Investment income, net expenditures 98,276 Total revenues 137,599 ExpendituresGrants and projects 38,886 Power cost equalization grants 46,762 General and administrative 9,154 State of Alaska contribution 30,000 Total expenditures 124,802 Excess of revenues over expenditures 12,797 Other Financing UsesTransfers to other funds (179) Change in Fund Balance 12,618 Fund Balance, Beginning of Year 1,012,242 Fund Balance, End of Year 1,024,860$ See Notes to Financial Statements. Alaska Energy Authority (A Component Unit of the State of Alaska) Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Fund (in thousands) Year Ended June 30, 2025 27DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Net change in fund balance - total governmental fund 12,618$ The change in the net position reported for governmental activities in the Statement of Activities is different because: Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Increase in net pension liability and related deferred accounts (1,743) Decrease in net OPEB asset and related deferred accounts 2,630 887 Extraordinary item (Note 14)(2,447) Change in Net Position of Governmental Activities 11,058$ See Notes to Financial Statements. (in thousands) June 30, 2025 Reconciliation of Change in Fund Balance of Governmental Fund to Statement of Activities 28DTAFT Assets Current AssetsCash and cash equivalents, restricted 209,203$ Operating receivables 539 Prepaid expenses 1 Loans receivable 1,169 Due from federal government 489 Accrued interest receivable 94 Total current assets 211,495 Noncurrent AssetsLoans receivable, net of allowance 28,339 Capital assets, net of accumulated depreciation 375,026 Total noncurrent assets 403,365 Total Assets 614,860$ Liabilities Current LiabilitiesDue to federal government 292$ Due to State of Alaska 6,819 Due to State of Alaska's component units 11 Due to governmental funds/internal balances 537 Accounts payable 5,968 Capital acquisition and construction accounts 2,188 Capital acquisition and construction accounts (due to federal government)68 Bonds payable - current portion 4,299 Accrued interest payable 850 Total current liabilities 21,032 Noncurrent LiabilitiesBonds payable - noncurrent portion 191,616 Total liabilities 212,648 Net PositionNet investment in capital assets 332,127 Restricted for:Capital projects 162,420 Debt service 18,267 Agreements with external parties 30,839 Legislation 14,439 Unrestricted (deficit)(155,880) Total net position 402,212 Total Liabilities and Net Position 614,860$ See Notes to Financial Statements. June 30, 2025 Alaska Energy Authority(A Component Unit of the State of Alaska) Statement of Net Position – Enterprise Fund (in thousands) 29DTAFT Operating RevenuesState of Alaska appropriations 5,031$ Federal grants 616 Revenue from operating plants 25,913 Interest on loans 470 Other revenues 26 Total operating revenues 32,056 Operating ExpensesDepreciation 12,237 Grants and projects 1,063 Plant operations 9,922 General and administrative 2,505 Total operating expenses 25,727 Operating Income 6,329 Nonoperating Revenues (Expenses)Investment income, net expenses 8,678 Federal direct bond interest expense subsidy 1,031 Loss on disposal of assets (2,025) Interest expense and other charges (11,200) Total nonoperating revenues (expenses) before transfers (3,516) Income before transfers 2,813 Transfers from other funds 179 Change in Net Position 2,992 Net Position, Beginning of Year 399,220 Net Position, End of Year 402,212$ See Notes to Financial Statements. Year Ended June 30, 2025 Alaska Energy Authority (A Component Unit of the State of Alaska) Statement of Revenues, Expenses, and Changes in Net Position – Enterprise Fund (in thousands) 30DTAFT Alaska Energy Authority(A Component Unit of the State of Alaska) Statement of Cash Flows - Enterprise Fund (in thousands)Year Ended June 30, 2025 Operating ActivitiesReceipts from customers and users 26,086$ Payments from federal grants 616 Payments from State of Alaska 9,321 Payments from federal government 117 Payments to suppliers (16,001) Payments to State of Alaska's component units (10) Payments to other funds (60) Net Cash from Operating Activities 20,069 Noncapital Financing ActivitiesPayments to AIDEA for short-term borrowing working capital 100 Transfer from governmental fund 179 Net Cash from Noncapital Financing Activities 279 Capital and Related Financing ActivitiesPrincipal paid on bonds (5,338) Interest paid on bonds and other charges (16,038) Capital asset acquisitions (19,111) Federal direct bond interest expense subsidy 1,061 Net Cash used for Capital and Related Financing Activities (39,426) Investing ActivitiesInterest received from investments 8,672 Net change in loans and accrued interest 1,292 Net Cash from Investing Activities 9,964 Net Change in Restricted Cash and Cash Equivalents (9,114) Restricted Cash and Cash Equivalents, Beginning of Year 218,317 Restricted Cash and Cash Equivalents, End of Year 209,203$ Reconciliation of operating income to net cash from operating activitiesOperating income 6,329$ Adjustments to reconcile operating income to net cashfrom (used for) operating activitiesDepreciation 12,237 Changes in assets and liabilitiesOperating receivables (323) Prepaid assets (1) Due to/from State of Alaska 4,290 Due to other funds (60) Due to federal government 117 Due to/from State of Alaska's component units (10) Operating accounts payable (2,510) Net Cash from Operating Activities 20,069$ See Notes to Financial Statements.31DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 32 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. On July 31, 2024, House Bill (HB) 307, enacted legislation changed how AEA operates and is structured. This enacted legislation went into effect, retroactively to July 1, 2024. The main impact to AEA of HB307 was how AEA operates. It established a requirement for AEA to have a separate 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. On April 3, 2024, AEA established a negotiated indirect cost rate agreement (NICRA) with a cognizant agent, the United States Department of Interior. This was the first time AEA had established a NICRA. The NICRA provides an indirect cost rate and fringe benefit rate for use with grants, contracts, and other agreements entered into with the Federal Government. Also, 2 CFR Part 200 applies to the NICRA and is subject to the limitations in Section II.A. of the agreements. 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 more than $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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 33 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. 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 GVEA’s 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, or the Bradley Lake Expansion Project, to optimize the energy potential of the Bradley Lake Hydroelectric Project. Like the West Fork Upper Battle Creek Diversion Project, the Bradely Lake Expansion 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. Also, 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 DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 34 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. 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 halfway 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 and a loan program (the Power Project Fund). Subject to appropriations, the PCE Endowment Fund provides the PCE Grant Program with 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 the Alternative Energy and Energy Efficiency (AEEE) programs. The purpose of the Renewable Energy Grant Fund is to finance renewable energy projects in Alaska. The AEEE programs support the development of alternative energy resources specific to Alaska. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 35 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 set forth by the Governmental Accounting Standards Board (GASB). 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 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 36 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. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash, short-term DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 37 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: DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 38 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. 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. Unrestricted – This consists of the remaining net position where the definition of “restricted” or “net investment in capital assets” does not apply. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 39 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. 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, 2025, the AEA’s bank and carrying amount of cash and cash equivalents (all of which were restricted for specific purposes) was $325,091. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 40 The restricted cash and cash equivalents and investments were held in trust and restricted accounts for the following activities as of June 30, 2025: Governmental Business-TypeActivities Activities TotalsRestricted Cash and Cash Equivalents Bradley Lake Hydroelectric Project -$ 184,625$ 184,625$ Alaska Intertie Project - 2,705 2,705 Power Project Fund - 12,213 12,213 Power Development and Railbelt Energy Projects 37,050 9,660 46,710 Power Cost Equalization Program 61,847 - 61,847 Renewable Energy Grant Fund 13,390 - 13,390 Emerging Energy Technology Fund 984 - 984 VW Settlement 984 - 984 Community Contributions Fund 1,633 - 1,633 115,888$ 209,203$ 325,091$ Governmental Business-TypeActivities Activities TotalsRestricted Investments Power Cost Equalization Program 941,456$ -$ 941,456$ Renewable Energy Grant Fund 18,592 - 18,592 960,048$ -$ 960,048$ 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 First National Bank Alaska. 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 41 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 AEA 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. Following is a summary of the AEA’s cash and investments at the recurring fair value measurement at June 30, 2025: Governmental Business-TypeActivities Activities TotalsCash and cash equivalents 115,888$ 209,203$ 325,091$ Investments managed by APFC 941,456 - 941,456 Investments managed by Department of Revenue 18,592 - 18,592 1,075,936$ 209,203$ 1,285,139$ 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%. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 42 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, 2025, AEA’s deposits managed by Department of Revenue were collateralized under this same policy. With respect to AEA managed investments, amounts totaling approximately $272,418 at June 30, 2025 are held in money market funds with the custodian or 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 43 The 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, 2025, the GeFONSI total for the Renewable Energy Grant Fund was $18,592. 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. 30-Jun-25 AEA (non APFC or Gefonsi) GeFONSI Alaska Permanent Fund Corporation Total Investment Type Cash and cash equivalents $272,418 - 52,673$ $325,091 Corporate bonds - - 91,838 91,838 Mortgage-backed securities - - 36,183 36,183 Commingled and exchange traded funds - - 1,849 1,849 Commercial mortgage / Asset-backed securities - - 8,797 8,797 Non-domestic government bonds - - 31,552 31,552 Non-domestic corporate bonds - - 16,102 16,102 Preferred and common stock - - 327,346 327,346 Real estate - - 106,752 106,752 Alternative Investments Absolute Return - - 57,323 57,323 Private Equity - - 149,193 149,193 Infrastructure - - 44,492 44,492 Distressed and mezzanine debt (Public-private credit)- - 33,941 33,941 U.S. Treasury Bills, Notes, Bonds, and TIPS - - 36,088 36,088 Pooled investment managed by Department of Revenue - 18,592 - 18,592 Net Cash and Investments $272,418 18,592 994,129 $1,285,139 DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 44 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. 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 45 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 46 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, 2025, the APFC’s strategic asset allocation targets were as follows: Asset class Asset class target Public equities 32% Fixed income 20% Private equity 18% Real estate 11% Private income 10% Absolute return 7% Tactical opportunities 1% Cash 1% 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 47 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. 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 $19.5 million at June 30, 2025. The current annual interest rates range from 0 to 9.0 percent. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 48 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 managed by APFC, which includes the market values of foreign currency (FX) and FX forward exchange contracts, are summarized as follows at June 30: 2025 Cash $3,278 Pooled funds 22,075 U.S. Treasury bills 27,411 FX forward exchange contracts (91) Total cash and temporary investments $52,673 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 $2.1 million on June 30, 2025. D. MARKETABLE DEBT SECURITIES Marketable debt securities categorized by debt instrument type at June 30 are summarized as follows: Unrealized 2025 Cost Fair value gains (losses) Mortgage-backed securities $36,879 36,183 (696) U.S. Treasury and government notes/bonds 35,730 36,088 358 U.S. corporate bonds 93,146 91,838 (1,308) U.S. commercial mortgage and asset-backed securities 8,608 8,529 (79) U.S. exchange traded funds 1,435 1,497 62 Non-U.S. government bonds 30,342 31,552 1,210 Non-U.S. corporate bonds 16,092 16,102 10 Non-U.S. commercial mortgage and asset-backed securities 268 268 - Non-U.S. exchange traded funds 337 352 15 Total marketable debt securities $222,837 222,409 (428) DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 49 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, 2025, 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 $7,250 3,625 10,875 4.89% AA 5,562 7,367 12,929 5.81% A 27,161 5,976 33,137 14.90% BBB 38,951 11,968 50,919 22.90% BB 15,524 3,723 19,247 8.65% B 5,053 1,241 6,294 2.83% CCC - 10 10 0.01% D - 965 965 0.43% $99,501 34,875 134,376 60.42% Exchange traded funds 1,497 352 1,849 0.83% Not rated 1,073 13,047 14,120 6.35% U.S. government explicitly backedby the U.S. government 44,683 - 44,683 20.09% U.S. government implicitly backed by the U.S. government 27,381 - 27,381 12.31% $174,135 48,274 222,409 100.00% Total fair value rated debt securities Total fair value debt securities DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 50 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 20.78% 5.55 Treasury and government notes/bonds 20.72% 5.62 Corporate bonds 52.74% 6.57 Commercial mortgage and asset-backed securities 4.90%1.79 Exchange traded funds 0.86%- Total domestic bonds 100.00% 5.87 Non-domestic bonds Treasury and government bonds 65.36% 7.43 Corporate bonds 33.36% 6.42 Commercial mortgage and asset-backed securities 0.55%0.99 Exchange traded funds 0.73%- Total non-domestic bonds 100.00% 7.00 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 $(6,000) at June 30, 2025: Unrealized Cost Fair value gains (losses) Direct investments Domestic stock $174,516 186,304 11,788 Non-domestic stock 136,938 138,295 1,357 Commingled funds 2,480 2,747 267 Total preferred and common stock $313,934 327,346 13,412 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 51 At June 30, 2025, 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): Equity, private Total foreign Cash and Foreign exchange debt, real estate,Marketable currencyForeign currency cash equivalents forward contracts infrastructure debt exposure Australian Dollar $53 (595) 4,046 332 3,836 Brazil Real 11 - 1,235 - 1,246 Canadian Dollar 27 (725) 8,344 614 8,260 Chilean Peso 2 - 80 - 82 Chinese Yuan Renminbi 79 (3,775) 3,230 3,697 3,231 Colombian Peso 2 - 24 - 26 Czech Koruna 4 (131) 21 124 18 Danish Krone 4 (129) 1,796 125 1,796 Egyptian Pound 1 - 13 - 14 Euro Currency 790 (10,951) 51,042 8,835 49,716 Hong Kong Dollar 62 (275) 10,789 - 10,576 Hungarian Forint 4 (38) 130 34 130 Indian Rupee 19 (3) 4,706 - 4,722 Indonesian Rupiah 5 (309) 701 300 697 Israeli Shekel 13 (163) 739 160 749 Japanese Yen 306 (6,095) 15,684 5,857 15,752 Kuwaiti Dinar 4 (3) 120 - 121 Malaysian Ringgit 7 (298) 332 294 335 Mexican Peso 2 (192) 778 191 779 New Taiwan Dollar 15 - 6,517 - 6,532 New Zealand Dollar (4) (255) 191 209 141 Norwegian Krone 6 (41) 607 39 611 Pakistan Rupee - - 57 - 57 Peruvian Sol 6 (206) - 195 (5) Philippines Peso 2 - 168 - 170 Polish Zloty 6 (1) 652 - 657 Pound Sterling 234 (3,485) 15,484 2,349 14,582 Qatari Riyal (4) 6 193 - 195 Romanian Leu 9 (132) - 114 (9) Russian Ruble - - 1 - 1 Saudi Arabia Riyal (1) - 907 - 906 Singapore Dollar (3) (93) 1,180 102 1,186 South African Rand (4) 7 938 - 941 South Korean Won 37 (727) 4,784 719 4,813 Swedish Krona 13 (14) 2,013 - 2,012 Swiss Franc 16 (130) 4,885 - 4,771 Thailand Baht 6 (240) 235 234 235 Turkish Lira 2 - 166 - 168 UAE Dirham 5 - 689 - 694 Total foreign currency exposure $1,736 (28,993) 143,477 24,524 140,744 DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 52 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. 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, 2025, 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: 2025 Fair value of securities on loan, secured by cash collateral $45,733 Cash collateral 46,735 Fair value of securities on loan, secured by noncash collateral 82,564 Noncash collateral 89,692 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 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, 2025 ranged between two and 101 days. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 53 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, 2025 is limited to the difference between contractual rates and forward market rates determined at the end of the fiscal year. FX forward contracts during the year ended June 30 are summarized as follows:   2025 Fair value of FX forward contracts, beginning of year $30 Net change in fair value of FX forward contracts (120) Fair value of FX forward contracts, end of year $(90) Notional amount of FX forward contracts, end of year $16,293 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:   2025 Fair value of equity index futures, beginning of year $(1) Net change in fair value of equity index futures (5) Fair value of equity index futures, end of year $(6) Notional amount of equity index futures, end of year $14 Futures in fixed income accounts during the years ended June 30 are summarized as follows:   2025 Fair value of U.S. Treasury index futures, beginning of year $ - Net change in fair value of U.S. Treasury index futures (8) Fair value of U.S. Treasury index futures, end of year $(8) Notional amount of US Treasury index futures, end of year $1,074 DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 54 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. 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 2025 Cost Fair value gains (losses) Real estate investment trusts $9,794 9,269 (525) Real estate funds and notes 37,883 35,037 (2,846) American Homes 4 Rent II 1,138 1,216 78 Directly owned real estate Retail $10,873 15,965 5,092 Office 23,218 20,026 (3,192) Hotel 808 750 (58) Industrial 4,983 10,744 5,761 Multifamily 4,756 5,303 547 Development 8,812 8,442 (370) Total directly owned real estate $53,450 61,230 7,780 Total real estate $102,265 106,752 4,487 As of June 30, 2025, the APFC, on behalf of the Fund, had outstanding future funding commitments of $3.5 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 55 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. 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 2025 Cost Fair value gains Absolute return $52,457 57,323 4,866 Private credit 33,076 33,941 865 Private equity 137,443 149,193 11,750 Infrastructure 41,011 44,492 3,481 Total alternative investments $263,987 284,949 20,962 As of June 30, 2025, the APFC, on behalf of the Fund, had outstanding future funding commitments of $206,000 for absolute return, $18.7 million for private credit, $42.4 million for private equity, and $12.8 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 56 M. 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. The remainder of this page intentionally left blank. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 57 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 2025 Level 1 Level 2 Level 3 using NAV Total Marketable debt securities Mortgage-backed securities $ - 36,183 - - 36,183 U.S. Treasury and government notes/bonds 35,995 93 - - 36,088 U.S. corporate bonds 98 91,740 - - 91,838 U.S. commercial mortgage and asset-backed securities - 8,529 - - 8,529 U.S. exchange traded funds 1,497 - - - 1,497 Non-U.S. government bonds - 31,552 - - 31,552 Non-U.S. corporate bonds - 16,096 6 - 16,102 Non-U.S. commercial mortgage and asset- backed securities - 268 - - 268 Non-U.S. exchange traded funds 352 - - - 352 Total marketable debt securities $ 37,942 184,461 6 - 222,409 Preferred and common stock Domestic stock 186,105 199 - - 186,304 Non-domestic stock 138,295 - - - 138,295 Commingled funds 1,127 - - 1,620 2,747 Total preferred and common stock $ 325,527 199 - 1,620 327,346 Real estate Real estate investment trusts 9,269 - - - 9,269 Real estate funds and notes - - - 35,037 35,037 American Homes 4 Rent II - - - 1,216 1,216 Directly owned real estate - - - 61,230 61,230 Total real estate $ 9,269 - - 97,483 106,752 Absolute return - - - 57,323 57,323 Private credit - - - 33,941 33,941 Private equity - - - 149,193 149,193 Infrastructure - - - 44,492 44,492 Total investments $372,738 184,660 6 384,052 941,456 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 58 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. 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. The remainder of this page intentionally left blank. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 59 Note 3 - Capital Assets Capital asset activity for the year ended June 30, 2025 was as follows: Balance at Balance atBusiness-Type Activities July 1, 2024 Additions Deletions June 30, 2025Capital assets not being depreciated Land and rights of way 11,212$ -$ -$ 11,212$ Construction in progress Intangibles 183,682 - - 183,682 Other 7,592 19,667 (10,979) 16,280 Total capital assets not being depreciated 202,486 19,667 (10,979) 211,174 Capital assets being depreciatedEquipment 8,022 235 (6) 8,251 Infrastructure 515,136 11,126 (2,637) 523,625 Total capital assets being depreciated 523,158 11,361 (2,643) 531,876 Less accumulated depreciationEquipment (6,205) (481) 2 (6,684) Infrastructure (350,195) (11,756) 611 (361,340) Total accumulated depreciation (356,400) (12,237) 613 (368,024) Total capital assets, being depreciated, net 166,758 (876) (2,030) 163,852 Capital assets, net 369,244$ 18,791$ (13,009)$ 375,026$ Business-Type ActivitiesBradley Lake Hydroelectric Project 11,440$ Alaska Intertie Project 797 12,237$ DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 60 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, 2025 follows: A schedule of interfund transfers as of and for the year ended June 30, 2025 follows: Note 5 - Long-Term Debt Long-term debt activity for the year ended June 30, 2025 was as follows: 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 bonds are payable solely from Bradley Due from other funds Due to Special Revenue Fund from Enterprise Fund 537$ From Governmental Funds to:Enterprise Funds for Capital 179$ DueBalance at Additional Balance at within Business-Type Activities July 1, 2024 Borrowings Repayments June 30, 2025 one yearPower Revenue BondsBradley LakeEleventh Series 158,547$ -$ (3,717)$ 154,830$ 2,670$ Transmission Line Tenth Series 5,592 - (246) 5,346 254 Bradley Lake - Battle Creek Diversion -Private PlacementSeventh Series 36,001 - (1,333) 34,668 1,333 Eighth Series 1,113 - (42) 1,071 42 Total bonds payable 201,253 - (5,338) 195,915 4,299 201,253$ -$ (5,338)$ 195,915$ 4,299$ DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 61 project net revenues and are payable through 2051. Total principal and interest remaining to be paid on the bonds is $366,713. Principal and interest paid for the current year and total customer revenues from the Bradley Project were $21,376 and $23,087 respectively. 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 draw 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, 2025, AEA reported total outstanding Power Revenue Bonds of $195,915. Total incurred interest expense for fiscal year 2025 was $11,200. 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). 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. 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. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 62 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 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 DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 63 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, 2025, the amount of arbitrage interest payable is $0. The minimum payments related to all bonds, for the years after June 30, 2025, are as follows: Note 6 - Loans Receivable The Authority administers the Power Project Fund loan program. At year-end, outstanding loans are classified as follows: Number ofLoans Amount Power Project Fund Loan Programs 15 29,951$ Less allowance for loan loss (443) 29,508$ Allowance for loan loss:Balance at beginning of year 455$ Provision for loan loss (recovery)(12) Balance at end of year 443$ Years Ending June 30,Principal Interest Total 2026 4,299$ 11,012$ 15,311$ 2027 4,472 10,781 15,253 2028 4,655 10,538 15,193 2029 4,850 10,286 15,136 2030 5,057 10,020 15,077 2031-2035 28,840 45,667 74,507 2036-2040 36,221 36,824 73,045 2041-2045 46,235 25,387 71,622 2046-2050 59,911 10,254 70,165 2051 1,375 29 1,404 195,915$ 170,798$ 366,713$ DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 64 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 $1,888 for which AEA has allowed $38 for loan loss. Note 7 Pension and Other Postemployment Benefits Plans (a) Defined Benefit (DB) Pension Plan General Information About the Plan The Authority participates in the State of Alaska Public Employees’ Retirement System (PERS). PERS is a cost- sharing multiple-employer plan which covers eligible State and local government employees, other than teachers. The Plan was established and is administered by the State of Alaska Department of Administration. Benefit and contribution provisions are established by State law and may be amended only by the State Legislature. The Plan is included in an annual comprehensive financial report that includes financial statements and other required supplemental information. That report is available via the internet at https://drb.alaska.gov/docs/reports/#pers. Actuarial valuation reports, audited financial statements, and other detailed plan information are also available on this website. The Plan provides for retirement, death and disability, and postemployment healthcare benefits. There are three tiers of employees, based on entry date. For all tiers within the Defined Benefit (DB) plan, full retirement benefits are generally calculated using a formula comprised of a multiplier times the average monthly salary (AMS) times the number of years of service. The multiplier is increased at longevity milestone markers for most employees. Peace officers and firefighters accrue benefits at an accelerated rate. The tiers within the Plan establish differing criteria regarding normal retirement age, early retirement age, and the criteria for calculation of AMS, COLA adjustments, and other postemployment benefits (OPEB). A complete benefit comparison chart is available at the website noted above. The PERS DB Plan was closed to new entrants effective July 1, 2006. New employees hired after that date participate in the PERS Defined Contribution (DC) Plan described later in these notes. Historical Context and Special Funding Situation In April 2008, the Alaska Legislature passed legislation converting the previously existing PERS plan from a DB agent-multiple-employer plan to a DB cost-sharing plan with an effective date of July 1, 2008. In connection with this conversion, the State of Alaska passed additional legislation which statutorily capped the employer contribution rate, established a state funded “on-behalf” contribution (subject to funding availability), and required that employer contributions be calculated against all PERS eligible wages, including wages paid to DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 65 participants of the PERS Tier IV defined contribution plan described later in these notes. The Alaska Legislature has the power and authority to change the aforementioned statute through the legislative process. Alaska Statute 39.35.280 requires the State of Alaska to contribute to the Plan an amount such that, when combined with the employer contribution, is sufficient to pay the Plan’s past service liability contribution rate as adopted by the Alaska Retirement Management Board (ARM Board). As such, the Plan is considered to be in a special funding situation as defined by GASB, and management has recorded all pension related liabilities, deferred inflows/outflows of resources, and disclosures on this basis. The Authority recorded the related on-behalf contributions as revenue and expense or expenditures as prescribed by GAAP, pursuant to the relevant basis of accounting based on fund type. Employee Contribution Rates Regular employees are required to contribute 6.75% of their annual covered salary. Employer and Other Contribution Rates There are several contribution rates associated with the pension contributions and related liabilities. These amounts are calculated on an annual basis. Employer Effective Rate: This is the contractual employer pay-in rate. Under current legislation, the amount calculated for the statutory employer effective contribution rate is 22% on eligible wages. This 22% rate is calculated on all PERS participating wages, including those wages attributable to employees in the DC plan. Contributions derived from the DC employee payroll is referred to as the Defined Benefit Unfunded Liability or DBUL contribution. ARM Board Adopted Rate: This is the rate formally adopted by the ARM Board. This rate is actuarially determined and used to calculate annual Plan funding requirements, without regard to the statutory rate cap or the GASB accounting rate. Effective July 1, 2015, the Legislature requires the ARM Board to adopt employer contribution rates for past service liabilities using a level percent of pay method over a closed 25-year term which ends in 2039. This change results in a lower ARM Board Rates than previously adopted. State Contribution Rate: This is the rate paid in by the State as an on-behalf payment under the current statute. The statute requires the State to contribute, based on funding availability, an on-behalf amount equal to the difference between the ARM Board Rate and the Employer Effective Rate. In the governmental fund financial statements, on-behalf contribution amounts have been recognized as additional revenues and expenditures. In the proprietary funds and government-wide financial statements, the on-behalf amounts reflect revenue and expense only during the measurement period in which the Plan recognizes the payments, resulting in a significant timing difference between the cash transfers and revenue and expense recognition. Contribution rates for the year ended June 30, 2025 were determined in the June 30, 2023 actuarial valuations. The Authority’s contribution rates for the 2025 fiscal year were as follows: DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 66 ARM Board Adopted Rate State Contribution Rate Defined benefit plans: Pension 20.03 % 4.76 % Postemployment healthcare (ARHCT) - % - % Defined contribution - Pension 6.73 % - % Total Contribution Rates 26.76 % 4.76 % Alaska Statue 39.35.255(a) capped the employer rate at 22% with the State of Alaska making a nonemployer contribution for the difference between actuarially required contribution and the cap. For the fiscal year the employer rate is 22.00% for pension and 0.00% for ARHCT. The contribution requirements for the Authority are established and may be amended by the ARM Board. Additionally, there is a Defined Benefit Unfunded Liability (DBUL) amount levied against the DC Plan payroll. The DBUL amount is computed as the difference between (a) amount calculated for the statutory employer contribution rate of 22.00% on eligible salary less (b) total of the employer contribution for (1) defined contribution employer matching amount, (2) major medical, (3) occupational death and disability, and (4) health reimbursement arrangement. The difference is deposited based on an actuarial allocation into the defined benefit plan’s pension and healthcare funds. In 2025, the Authority was credited with the following contributions to the pension plan: Measurement Period July 1, 2023 to June 30, 2024 Authority Fiscal Year July 1, 2024 to June 30, 2025 Employer contributions (including DBUL) $ - $ 388 Nonemployer contributions (on-behalf) - 128 Total Contributions $ - $ 516 In addition, employee contributions to the Plan totaled $37 during the Authority’s fiscal year. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 67 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2025, the Authority reported a liability for its proportionate share of the net pension liability (NPL) that reflected a reduction for State pension support provided to the Authority. The amount recognized by the Authority for its proportional share, the related State proportion, and the total portion of the net pension liability that was associated with the Authority were as follows: Authority proportionate share of NPL $ 3,516 State’s proportionate share of NPL associated with the Authority - Total Net Pension Liability $ 3,516 The total pension liability for the June 30, 2024 measurement date was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 and adjusted to reflect updated assumptions to calculate the net pension liability as of that date. The Authority’s proportion of the net pension liability was based on a projection of the Authority’s long-term share of contributions to the pension plan relative to the projected contributions of all participating entities, including the State, actuarially determined. At the June 30, 2024 measurement date, the Authority’s proportion was 0.06410 percent, which was an increase of 0.06410 from its proportion measured as of June 30, 2023. For the year ended June 30, 2025, the Authority recognized pension expense of $59 and on-behalf revenue of $0 for support provided by the State. At June 30, 2025, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Net difference between projected and actual earnings on pension plan investments $ 34 $ - Authority contributions subsequent to the measurement date 388 - Total Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions $ 422 $ - DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 68 The $388 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction in the net pension liability in the year ending June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending June 30, 2026 $ (94 ) 2027 175 2028 (26 ) 2029 (21 ) Total Amortization $ 34 Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of June 30, 2023, using the actuarial assumptions listed below, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2024: Actuarial cost method Entry Age Normal Amortization method Unfunded Accrued Actuarial Liability, level percent of pay basis Inflation 2.50% per year Salary increases For peace officer/firefighter, increases range from 8.50% to 3.85% based on service. For all others, increases range from 6.75% to 2.85% based on service. Allocation methodology Amounts for the June 30, 2024 measurement date were allocated to employers based on the ratio of the present value of projected future contributions for each employer to the total present value of projected future contributions for the Plan for the fiscal years 2025 to 2039. The liability is expected to go to zero at 2039. Investment rate of return 7.25%, net of pension plan investment expenses. This is based on an average inflation rate of 2.50% and a real rate of return of 4.75%. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 69 Mortality Peace officer/firefighter All others Pre-commencement mortality rates were based on the Pub-2010 Safety Employee table, amount-weighted, and projected with MP-2021 generational improvement. Deaths are assumed to result from occupational causes 70% of the time. Post-commencement mortality rates for healthy retirees were based on the Pub-2010 Safety Retiree table, amount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for disabled retirees were based on the Pub-2010 Safety Disabled Retiree table, amount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for beneficiaries were based on the Pub- 2010 Contingent Survivor table, amount-weighted, and projected with MP- 2021 generational improvement. These rates are applied only after the death of the original member. Pre-commencement mortality rates were based on the Pub-2010 General Employee table, amount-weighted, and projected with MP-2021 generational improvement. Deaths are assumed to result from occupational causes 35% of the time. Post-commencement mortality rates for healthy retirees were based on 98% of male and 106% of female rates of the Pub-2010 General Retiree table, amount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for disabled retirees were based on the Pub-2010 Non-Safety Disabled Retiree table, amount-weighted, and projected with MP-2021 generational improvement. Post- commencement mortality rates for beneficiaries were based on 102% of male and 108% of female rates of the Pub-2010 Contingent Survivor table, amount- weighted, and projected with MP-2021 generational improvement. These rates are applied only after the death of the original member. The total pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to the measurement date of June 30, 2024. The actuarial assumptions used in the June 30, 2023 actuarial valuation were based on the results of an actuarial experience study for the period from July 1, 2017 to June 30, 2021, resulting in changes in actuarial assumptions effective for the June 30, 2022 actuarial valuation, which were adopted by the Board to better reflect expected future experience. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 70 Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return, excluding the inflation component of 2.39%, for each major asset class included in the pension plan’s target asset allocation as of June 30, 2024 are summarized in the following table: Asset Class Target Allocation Range Long-Term Expected Real Rate of Return Domestic equity 26 % +/- 6 % 5.48 % Global equity (non-U.S.) 17 % +/- 4 % 7.14 % Global equity - % - % 5.79 % Aggregate bonds 21 % +/- 10 % 2.10 % Multi-asset 8 % +/- 4 % - % Real assets 14 % +/- 7 % 4.63 % Private equity 14 % +/- 7 % 8.84 % Cash equivalents - % - % 0.77 % Discount Rate The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that employer and State contributions will continue to follow the current funding policy, which meets State statutes. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 71 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the Authority’s proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the Authority’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage-point lower or one percentage-point higher than the current rate: Proportional Share 1% Decrease (6.25% ) Current Discount Rate (7.25% ) 1% Increase (8.25% ) Authority’s proportionate share of the net pension liability 0.06410 % $ 4,683 $ 3,516 $ 2,528 Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued PERS financial report. (b) Defined Contribution (DC) Pension Plan Employees hired after July 1, 2006 participate in PERS Tier IV, a DC plan. This Plan is administered by the State of Alaska, Department of Administration in conjunction with the DB plan noted above. Benefit and contribution provisions are established by State law and may be amended only by the State Legislature. The ARM Board may also amend contribution requirements. Included in the Plan are individual pension accounts, a retiree medical insurance plan and a separate Health Reimbursement Arrangement account that will help retired members pay medical premiums and other eligible medical expenses not covered by the medical plan. This Plan is included in the annual comprehensive financial report for PERS, and at the following website, as noted above. https://drb.alaska.gov/docs/reports/#pers. Contributions to the DC plan consist solely of employer and employee contributions with no special funding or other nonemployer contributions. In addition, actual remittances to the PERS system require that the Authority contribute at 22%. After deducting the DC plan contributions (and related OPEB contributions), the remaining remittance (the DBUL) is deposited into the DB plan as noted earlier. Benefit Terms Employees are immediately vested in their own contributions and vest 25% with two years of service, plus an additional 25% per year thereafter for full vesting at five years of service. Nonvested employer contributions are forfeited upon termination of employment from the Plan. Such forfeitures were applied in the year ended June 30, 2025 to cover a portion of the Authority’s employer match contributions. For the year ended June 30, 2025, forfeitures reduced pension expense by $0. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 72 Employee Contribution Rate Employees are required to contribute 8% of their annual covered salary. This amount goes directly to the individual’s account. Employer Contribution Rate For the year ended June 30, 2025, the Authority was required to contribute 5% of covered salary into the Plan. The Authority and employee contributions to PERS for pensions for the year ended June 30, 2025 were $108 and $172, respectively. The Authority contribution amount was recognized as pension expense/expenditures. (c) Defined Benefit OPEB Plans As part of its participation in PERS, the Authority participates in the following cost-sharing multiple-employer defined benefit OPEB plans: Alaska Retiree Healthcare Trust (ARHCT), Retiree Medical Plan (RMP) and Occupational Death and Disability Plan (ODD). The ARHCT, a healthcare trust fund, provides major medical coverage to retirees of the DB plan. The ARHCT is self- funded and self-insured. The ARHCT was closed to all new members effective July 1, 2006. Benefits vary by Tier level. The RMP provides major medical coverage to retirees of the PERS DC Plan (Tier IV). The RMP is self-insured. Members are not eligible to use the Plan until they have at least 10 years of service and are Medicare age eligible. The ODD provides death benefits for beneficiaries of plan participants and long-term disability benefits to all active members within PERS. The Plans are administered by the State of Alaska, Department of Administration. The OPEB plans are included in the annual comprehensive financial report for PERS, at the following website, https://drb.alaska.gov/docs/reports/#pers. Employer Contribution Rates Employer contribution rates are actuarily determined and adopted by and may be amended by the Board. Employees do not contribute. Employer contribution rates for the year ended June 30, 2025 were as follows: Alaska Retiree Healthcare Trust - % Retiree Medical Plan 0.83 % Occupational Death and Disability 0.24 % Total Contribution Rates 1.07 % DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 73 In 2025, the Authority was credited with the following contributions to the OPEB plans: Measurement Period July 1, 2023 to June 30, 2024 Authority Fiscal Year July 1, 2024 to June 30, 2025 Employer contributions – ARHCT $ - $ 17 Employer contributions - RMP - 5 Employer contributions - ODD - 3 Total Contributions $ - $ 25 OPEB Assets, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Plans At June 30, 2025, the Authority reported an asset for its proportionate share of the net OPEB asset (NOA) that reflected a reduction for State OPEB support provided to the Authority. The amount recognized by the Authority for its proportional share, the related State proportion, and the total were as follows: Authority’s proportionate share of NOA – ARHCT $ 1,412 Authority’s proportionate share of NOA - RMP 29 Authority’s proportionate share of NOA – ODD 38 Total Authority’s Proportionate Share of Net OPEB Asset $ 1,479 State’s proportionate share of the ARHCT NOA associated with the Authority - Total Net OPEB Asset $ 1,479 The total OPEB liability for the June 30, 2024 measurement date was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 and adjusted to reflect updated assumptions to calculate the net OPEB assets as of that date. The Authority’s proportion of the net OPEB assets was based on a projection of the Authority’s long-term share of contributions to the OPEB plans relative to the projected contributions of all participating entities, actuarially determined. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 74 June 30, 2023 Measurement Date Employer Proportion June 30, 2024 Measurement Date Employer Proportion Change Authority’s proportionate share of the net OPEB assets: ARHCT 0.00000 % 0.06411 % 0.06411 % RMP 0.00000 % 0.06228 % 0.06228 % ODD 0.00000 % 0.06371 % 0.06371 % For the year ended June 30, 2025, the Authority recognized OPEB expense (benefit) of $48. Of this amount, $0 was recorded for on-behalf revenue and expense for support provided by the ARHCT plan. OPEB expense (benefit) and on-behalf revenue is listed by plan in the table below: Plan OPEB Expense (Benefit) On-behalf Revenue ARHCT $ 46 $ - RMP 4 - ODD (1 ) - Total $ 49 $ - The remainder of this page intentionally left blank. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 75 At June 30, 2025, the Authority reported deferred outflows of resources and deferred inflows of resources related to OPEB plans from the following sources: Deferred Outflows of Resources ARHCT RMP ODD Total Difference between expected and actual experience $ 1 $ 1 $ - $ 2 Changes in assumptions 38 10 - 48 Net difference between projected and actual investment earnings 14 - - 14 Changes in proportion and differences between Authority contributions and proportionate share of contributions - - - - Authority contributions subsequent to the measurement date 17 5 3 25 Total Deferred Outflows of Resources Related to OPEB Plans $ 70 $ 15 $ 3 $ 89 Deferred Inflows of Resources ARHCT RMP ODD Total Difference between expected and actual experience $ - $ (3 ) $ (9 ) $ (12 ) Changes in assumptions - (20 ) - (20 ) Changes in proportion and differences between Authority contributions and proportionate share of contributions (2 ) - - (2 ) Total Deferred Inflows of Resources Related to OPEB Plans $ (2 ) $ (23 ) $ (9 ) $ (34 ) The remainder of this page intentionally left blank. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 76 Amounts reported as deferred outflows of resources related to OPEB plans resulting from Authority contributions subsequent to the measurement date will be recognized as an increase in the net OPEB assets in the year ending June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending June 30, ARHCT RMP ODD Total 2026 $ (43 ) $ (4 ) $ (3 ) $ (50 ) 2027 143 - (1 ) 142 2028 (23 ) (4 ) (2 ) (29 ) 2029 (26 ) (3 ) (1 ) (30 ) 2030 - (2 ) (1 ) (3 ) Thereafter - 1 (1 ) - Total Amortization $ 51 $ (12 ) $ (9 ) $ 30 Actuarial Assumptions The total OPEB liability for each plan was determined by actuarial valuations as of June 30, 2023, using the following actuarial assumptions, applied to all periods included in the measurement, and rolled forward to the measurement date of June 30, 2024: Actuarial cost method Entry Age Normal Amortization method Unfunded Accrued Actuarial Liability, level percent of pay basis Inflation 2.50% per year Salary increases For peace officer/firefighter, increases range from 8.50% to 3.85% based on service. For all others, increases range from 6.75% to 2.85% based on service. Allocation methodology Amounts for the June 30, 2024 measurement date were allocated to employers based on the ratio of the present value of projected future contributions for each employer to the total present value of projected future contributions to the Plan for fiscal years 2025 to 2039. Investment rate of return 7.25%, net of postemployment healthcare plan investment expenses. This is based on an average inflation rate of 2.50% and a real rate of return of 4.75%. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 77 Healthcare cost trend rates (ARHCT and RMP Plans) Pre-65 medical: 6.4% grading down to 4.5% Post-65 medical: 5.4% grading down to 4.5% Rx/EGWP: 6.9% grading down to 4.5% Initial trend rates are from FY 2025 Ultimate trend rates reached in FY 2050 Mortality Peace officer/firefighter (ARHCT and RMP Plans) (ODD Plan) All others (ARHCT and RMP Plans) Pre-commencement mortality rates were based on the Pub-2010 Safety Employee table, headcount-weighted, and projected with MP-2021 generational improvement. Deaths are assumed to result from occupation causes 70% of the time. Post-commencement mortality rates for healthy retirees were based on the Pub-2010 Safety Retiree table, headcount- weighted, and projected with MP-2021 generational improvement. Post- commencement mortality rates for disabled retirees were based on the Pub- 2010 Safety Disabled Retiree table, headcount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for beneficiaries were based on the Pub-2010 Contingent Survivor table, headcount-weighted, and projected with MP-2021 generational improvement. These rates are applied only after the death of the original member. Pre-commencement mortality rates were based on the Pub-2010 Safety Employee table, amount-weighted, and projected with MP-2021 generational improvement. Deaths are assumed to result from occupational causes 70% of the time. Post-commencement mortality rates for healthy retirees were based on the Pub-2010 Safety Retiree table, amount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for disabled retirees were based on the Pub-2010 Safety Disabled Retiree table, amount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for beneficiaries were based on the Pub- 2010 Contingent Survivor table, amount-weighted, and projected with MP- 2021 generational improvement. These rates are applied only after the death of the original member. Pre-commencement mortality rates were based on the Pub-2010 General Employee table, headcount-weighted, and projected with MP-2021 generational improvement. Deaths are assumed to result from occupational causes 35% of the time. Post-commencement mortality rates for healthy retirees were based on 101% of male and 110% of female rates of the Pub-2010 General Retiree table, headcount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for disabled retirees were based on the Pub-2010 Non-Safety Disabled Retiree table, headcount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for beneficiaries were based on 101% of DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 78 (ODD Plan) male and 108% of female rates of the Pub-2010 Contingent Survivor table, headcount-weighted, and projected with MP-2021 generational improvement. These rates are applied only after the death of the original member. Pre-commencement mortality rates were based on the Pub-2010 General Employee table, amount-weighted, and projected with MP-2021 generational improvement. Deaths are assumed to result from occupational causes 35% of the time. Post-commencement mortality rates for healthy retirees were based on 98% of male and 106% of female rates of the Pub-2010 General Retiree table, amount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for disabled retirees were based on the Pub-2010 Non-Safety Disabled Retiree table, amount-weighted, and projected with MP-2021 generational improvement. Post-commencement mortality rates for beneficiaries were based on 102% of male and 108% of female rates of the Pub-2010 Contingent Survivor table, amount-weighted, and projected with MP-2021 generational improvement. These rates are applied only after the death of the original member. Participation (ARHCT) Peace officer/firefighter All others 100% system paid members and their spouses are assumed to elect the healthcare benefits as soon as they are eligible. 20% of nonsystem paid members and their spouses are assumed to elect the healthcare benefits as soon as they are eligible. 25% of nonsystem paid members and their spouses are assumed to elect the healthcare benefits as soon as they are eligible. The total OPEB liability for each plan was determined by actuarial valuations as of June 30, 2023, rolled forward to the measurement date of June 30, 2024. The actuarial assumptions used in the June 30, 2023 actuarial valuation were based on the results of an actuarial experience study for the period from July 1, 2017 to June 30, 2021, resulting in changes in actuarial assumptions effective for the June 30, 2022 actuarial valuation, which were adopted by the Board to better reflect the expected future experience. For the ARHCT and RMP plans, the per capita claims costs were updated to reflect recent experience for the June 30, 2023 actuarial valuation. Long-Term Expected Rate of Return The long-term expected rate of return on OPEB plan investments for each plan was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The best estimates of arithmetic rates of return, DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 79 excluding the inflation component of 2.39%, for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2024 are summarized in the following table: Asset Class Target Allocation Range Long-Term Expected Real Rate of Return Domestic equity 26 % +/- 6 % 5.48 % Global equity (non-U.S.) 17 % +/- 4 % 7.14 % Global equity - % - % 5.79 % Aggregate bonds 21 % +/- 10 % 2.10 % Multi-asset 8 % +/- 4 % - % Real assets 14 % +/- 7 % 4.63 % Private equity 14 % +/- 7 % 8.84 % Cash equivalents - % - % 0.77 % Discount Rate The discount rate used to measure the total OPEB liability for each plan as of June 30, 2024 was 7.25%. The projection of cash flows used to determine the discount rate assumed that employer and State contributions will continue to follow the current funding policy which meets State statutes. Based on those assumptions, the fiduciary net position or each plan was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability for each plan. Sensitivity of the Net OPEB Asset to Changes in the Discount Rate The following presents the Authority’s proportionate share of the net OPEB asset calculated using the discount rate of 7.25%, as well as what the Authority’s proportionate share of the respective plan’s net OPEB asset (liability) would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Proportional Share 1% Decrease (6.25% ) Current Discount Rate (7.25% ) 1% Increase (8.25% ) Authority’s proportionate share of the net OPEB asset (liability): ARHCT 0.06411 % $ 894 $ 1,412 $ 1,848 RMP 0.06228 % $ (5 ) $ 29 $ 55 ODD 0.06371 % $ 36 $ 38 $ 40 DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 80 Sensitivity of the Net OPEB Asset to Changes in the Healthcare Cost Trend Rates The following presents the Authority’s proportionate share of the net OPEB asset calculated using the healthcare cost trend rates as summarized in the 2023 actuarial valuation reports as well as what the Authority’s proportionate share of the respective plan’s net OPEB asset (liability) would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates: Proportional Share 1% Decrease Current Healthcare Cost Trend Rate 1% Increase Authority’s proportionate share of the net OPEB asset (liability): ARHCT 0.06411 % $ 1,897 $ 1,412 $ 835 RMP 0.06228 % $ 59 $ 29 $ (11 ) ODD 0.06371 % $ n/a $ n/a $ n/a OPEB Plan Fiduciary Net Position Detailed information about each OPEB plan’s fiduciary net position is available in the separately issued PERS financial report. (d) Defined Contribution OPEB Plans PERS DC Pension Plan participants (PERS Tier IV) also participate in the Health Reimbursement Arrangement Plan (HRA Plan). The HRA Plan allows for medical care expense to be reimbursed from individual savings accounts established for eligible persons. The HRA Plan became effective July 1, 2006 at which time contributions by employers began. Contribution Rate AS 39.30.370 establishes this contribution amount as “three percent of the average annual employee compensation of all employees of all employers in the plan”. As of July 1, 2024, for actual remittance, this amount is calculated as a flat rate for each full-time or part-time employee per pay period and approximates $2 per year for each full-time employee, and $1.53 per hour for part-time employees. Annual Postemployment Healthcare Cost In fiscal year 2025, the Authority contributed $42 in DC OPEB costs. This amount has been recognized as expense/expenditures. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 81 Note 8 Fund Balance Fund balances reported in the aggregate on the governmental fund balance sheet are subject to the following constraints: Note 9 - Risk Management AEA is exposed to various risks 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 10 - 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 long-term working capital funds up to a maximum of $3,500. Under the agreement interest earnings accumulated during the fiscal year are transferred to AIDEA. For fiscal year 2025 this amount was $46. For the year ended June 30, 2025, AEA had $463 payable to AIDEA for services. Payments to AIDEA for personnel services support AEA’s internal service activities. At the year ended June 30, 2025, AEA had $14 payable from AIDEA for services. The services provided are primarily for geographical information system (GIS) mapping and engineering. 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 $288 during fiscal year 2025 for administrative services. Restricted by Legislation Power Cost Equalization Program 992,919$ Renewable Energy Grant Fund 31,021 Emerging Energy Technology Fund 920 1,024,860$ DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 82 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, Bradley Lake Expansion Project, Battle Creek, and the SSQ Line and received $1,206 for these services during fiscal year 2025. Railbelt Transmission Organization The passage of HB307, CH24 SLA 2024, created The Railbelt Transmission Organization (RTO) for the purpose of establishing an open access transmission tariff that provides for recovery of transmission costs and related ancillary services; and 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 (AS 44.83.700 (a)). For administrative purposes, the transmission organization is a division of the Alaska Energy Authority (AS 44.83.700(b)). The effective date of the bill was July 1, 2024. Fiscal impact is that the administrative function of AEA related to the RTO increases AEA’s operating costs in the short term until a revenue mechanism for the RTO is developed, approved by the RCA, and implemented. AEA received an undesignated general fund (UGF) increment for fiscal years 2025 and 2026 to pay for AEA personnel costs, indirect costs, and other administrative costs associated with implementation of the RTO. In accordance with the letter of agreement an interim cost share allocation for Railbelt Transmission Organization costs, AEA and the Railbelt Utilities agreed to share legal services, consulting services, insurance costs, and dispute resolution costs; and other costs to operate the RTO as agreed upon by the parties in equal shares (16.666%) for costs incurred on or after July 1, 2024. This agreement is in place until the execution of new service agreements. For fiscal year 2025 total reimbursed costs from the Railbelt Utilities under this cost share agreement was $1,663. Note 11 - 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, 2025, AEA had Power Project Fund loan commitments of $490. At June 30, 2025, AEA had cumulative prior year commitments from grant awards that are funded by State appropriations and federal awards; the amounts committed were $56,269. Note 12 – Subsequent Events On August 7, 2025, the U.S. Department of Environmental Protection Agency (EPA) notified the Authority that the Solar for All grant was terminated. This grant was awarded in September of 2024 for $64.4 million. There was minimal expending on the grant, and the Authority will be held harmless once the grant is fully closed out. The EPA has provided 120 days after the date of notice to complete the close out process. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Financial Statements June 30, 2025 83 Note 13 – 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 2025 reporting: 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. The implementation of this standard did not result in a material change in the Authority’s accounting. 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. The implementation of this standard did not result in a material change in the Authority’s accounting. 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. 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. GASB Statement No. 104 – Disclosure of Certain Capital Assets – Effective for year-end June 30, 2026. Earlier application is encouraged. The objective of this Statement is to provide users of governmental financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability. The disclosure requirements will improve consistency and comparability between governments. Note 14 – Extraordinary Item In fiscal year 2025, in conjunction with AEA, AIDEA discontinued employing personnel that conduct business for AEA, who in turn began to employ these personnel. AIDEA allocated $5,311 of the Authority’s pension liability and related inflows and outflows at the start of 2025 to AEA. AIDEA further allocated the net OPEB asset and associated inflows and outflows in the amount of $2,864 to AEA.DTAFT Years Ended June 30,2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Authority's Proportion of the Net Pension Liability 0.06410%0.00000%0.00000%0.00000%0.00000%0.00000%0.00000%0.00000%0.00000%0.00000% Authority's Proportionate Share of the Net Pension Liability 3,516$ -$ -$ -$ -$ -$ -$ -$ -$ -$ State of Alaska Proportionate Share of the Net Pension Liability - - - - - - - - - - Total Net Pension Liability 3,516$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Authority's Covered Payroll 4,371 - - - - - - - - - Authority's Proportionate Share of theNet Pension Liability as a Percentage of Payroll 80.44%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 67.81%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Years Ended June 30,2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Contractually Required Contributions 388$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Contributions Relative to the ContractuallyRequired Contribution 388 - - - - - - - - - Contribution Deficiency (Excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Authority's Covered Payroll 4,366 - - - - - - - - - Contributions as a Percentage of CoveredPayroll 8.89%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% See accompanying notes to Required Supplementary Information. Schedule of the Authority's Contributions Alaska Energy Authority Public Employees' Retirement System (PERS) Pension Plan Schedule of the Authority's Proportionate Share of the Net Pension Liability (in thousands) 84DTAFT Years Ended June 30,2025 2024 2023 2022 2021 2020 2019 2018 Authority's Proportion of the Net OPEB Asset 0.06411%0.00000%0.00000%0.00000%0.00000%0.00000%0.00000%0.00000% Authority's Proportionate Share of the Net OPEB Asset (1,412)$ -$ -$ -$ -$ -$ -$ -$ State of Alaska Proportionate Share of the Net OPEB Asset - - - - - - - - Total Net OPEB Asset (1,412)$ -$ -$ -$ -$ -$ -$ -$ Authority's Covered Payroll 979 - - - - - - - Authority's Proportionate Share of the Net OPEB Asset as a Percentage of Payroll -144.23%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Plan Fiduciary Net Position as a Percentage of the Total OPEB Asset 130.59%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Years Ended June 30,2025 2024 2023 2022 2021 2020 2019 2018 Contractually Required Contributions 17$ -$ -$ -$ -$ -$ -$ -$ Contributions Relative to the ContractuallyRequired Contribution 17 - - - - - - - Contribution Deficiency (Excess)-$ -$ -$ -$ -$ -$ -$ -$ Authority's Covered Payroll 988 - - - - - - - Contributions as a Percentage of CoveredPayroll 1.712%0.00%0.00%0.00%0.00%0.00%0.00%0.00% See accompanying notes to Required Supplementary Information. Schedule of the Authority's Contributions Alaska Energy Authority Public Employees' Retirement System - OPEB ARHCT Plan Schedule of the Authority's Proportionate Share of the Net OPEB Liability (Asset) (in thousands) 85DTAFT Years Ended June 30,2025 2024 2023 2022 2021 2020 2019 2018 Authority's Proportion of the Net OPEB Asset 0.06228%0.00000%0.00000%0.00000%0.00000%0.00000%0.00000%0.00000% Authority's Proportionate Share of the Net OPEB Asset (29)$ - - - - - - - State of Alaska Proportionate Share of the Net OPEB Asset - - - - - - - - Total Net OPEB Asset (29)$ -$ -$ -$ -$ -$ -$ -$ Authority's Covered Payroll 3,392 - - - - - - - Authority's Proportionate Share of the Net OPEB Asset as a Percentage of Payroll -0.86%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Plan Fiduciary Net Position as a Percentage of the Total OPEB Asset 119.87%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Years Ended June 30,2025 2024 2023 2022 2021 2020 2019 2018 Contractually Required Contributions 5$ -$ -$ -$ -$ -$ -$ -$ Contributions Relative to the ContractuallyRequired Contribution 5 - - - - - - - Contribution Deficiency (Excess)-$ -$ -$ -$ -$ -$ -$ -$ Authority's Covered Payroll 3,388 - - - - - - - Contributions as a Percentage of CoveredPayroll 0.141%0.00%0.00%0.00%0.00%0.00%0.00%0.00% See accompanying notes to Required Supplementary Information. Schedule of the Authority's Contributions Alaska Energy Authority Public Employees' Retirement System - OPEB RMP Plan Schedule of the Authority's Proportionate Share of the Net OPEB Liability (Asset) (in thousands) 86DTAFT Years Ended June 30,2025 2024 2023 2022 2021 2020 2019 2018 Authority's Proportion of the Net OPEB Asset 0.06371% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% Authority's Proportionate Share of the Net OPEB Asset (38)$ -$ -$ -$ -$ -$ -$ -$ State of Alaska Proportionate Share of the Net OPEB Asset - - - - - - - - Total Net OPEB Asset (38)$ -$ -$ -$ -$ -$ -$ -$ Authority's Covered Payroll 4,371 - - - - - - - Authority's Proportionate Share of the Net OPEB Asset as a Percentage of Payroll -0.87%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Plan Fiduciary Net Position as a Percentage of the Total OPEB Asset 346.81%0.00%0.00%0.00%0.00%0.00%0.00%0.00% Years Ended June 30,2025 2024 2023 2022 2021 2020 2019 2018 Contractually Required Contributions 3$ -$ -$ -$ -$ -$ -$ -$ Contributions Relative to the ContractuallyRequired Contribution 3 - - - - - - - Contribution Deficiency (Excess)-$ -$ -$ -$ -$ -$ -$ -$ Authority's Covered Payroll 4,366 - - - - - - - Contributions as a Percentage of Covered Payroll 0.068% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% See accompanying notes to Required Supplementary Information. Schedule of the Authority's Contributions Alaska Energy Authority Public Employees' Retirement System - OPEB ODD Plan Schedule of the Authority's Proportionate Share of the Net OPEB Liability (Asset) (in thousands) 87DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Required Supplementary Information June 30, 2025 88 1. Public Employees’ Retirement System Pension Plan Schedule of the Authority’s Proportionate Share of the Net Pension Liability This table is presented based on the Plan measurement date. For June 30, 2025, the Plan measurement date is June 30, 2024. Changes in Assumptions: GASB requires ten years of information be presented. As a result of HB 307, AIDEA discontinued employing personnel that conduct business for AEA, who in turn began to employ these personnel. The pension and OPEB related to those employees were transferred to AEA in 2025. Therefore, until a full 10 years of information is available, the Authority will present only those years for which information is available. Schedule of the Authority’s Contributions This table is based on the Authority’s contributions for each fiscal year presented. These contributions have been reported as a deferred outflow of resources on the Statement of Net Position. GASB requires ten years of information be presented. As a result of HB 307, AIDEA discontinued employing personnel that conduct business for AEA, who in turn began to employ these personnel. The pension and OPEB related to those employees were transferred to AEA in 2025. Therefore, until a full 10 years of information is available, the Authority will present only those years for which information is available. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) (Dollars Presented in Thousands) Notes to Required Supplementary Information June 30, 2025 89 2. Public Employees’ Retirement System OPEB Plans Schedule of the Authority’s Proportionate Share of the Net OPEB Liability (Asset) This table is presented based on the Plan measurement date. For June 30, 2025, the Plan measurement date is June 30, 2024. Changes in Assumptions: GASB requires ten years of information be presented. As a result of HB 307, AIDEA discontinued employing personnel that conduct business for AEA, who in turn began to employ these personnel. The pension and OPEB related to those employees were transferred to AEA in 2025. Therefore, until a full 10 years of information is available, the Authority will present only those years for which information is available. Schedule of the Authority’s Contributions This table is based on the Authority’s contributions for each fiscal year presented. These contributions have been reported as a deferred outflow of resources on the Statement of Net Position. GASB requires ten years of information be presented. As a result of HB 307, AIDEA discontinued employing personnel that conduct business for AEA, who in turn began to employ these personnel. The pension and OPEB related to those employees were transferred to AEA in 2025. Therefore, until a full 10 years of information is available, the Authority will present only those years for which information is available. DTAFT Renewable Emerging VolkswagenPower Cost Energy Energy Rural Diesel Community Reclass for Equalization Grant Technology Energy Settlement Contributions Financial StatementProgramFundFundProjectsFundFundPresentation TotalsAssetsCash and cash equivalents, restricted 61,847$ 13,390$ 984$ 37,050$ 984$ 1,633$ -$ 115,888$ Receivables for investments 8,555 - - - - - - 8,555 Operating receivable - 1 - 478 311 - - 790 Prepaid expenses - - - 48 - - - 48 Due from Federal Government - - - 4,873 - - - 4,873 Due from State of Alaska - 610 - 17 - - (610) 17 Due from State of Alaska's component units - - - 14 - - - 14 Due from other funds/internal balances 196 270 - 433 - - (362) 537 Securities lending collateral 46,735 - - - - - - 46,735 Investments, restricted 941,456 18,592 - - - - - 960,048 Total assets 1,058,789$ 32,863$ 984$ 42,913$ 1,295$ 1,633$ (972)$ 1,137,505$ Liabilities and Fund BalanceDue to Federal Government -$ -$ -$ 1$ -$ -$ -$ 1$ Due to the State of Alaska - - 5 34,154 - - (610) 33,549 Due to State of Alaska's component units - - - 941 - - - 941 Due to local governments 6,597 484 - 185 - - - 7,266 Due to other funds/internal balances - - 59 - 303 - (362) - Accounts payable 12,538 1,358 - 4,132 8 - - 18,036 Other liabilities - - - - - 1,633 - 1,633 Unearned revenue - grant match from outside entities - - - - 984 - 984 Securities lending collateral 46,735 - - - - - - 46,735 Advance from State of Alaska component unit - - - 3,500 - - - 3,500 Total liabilities 65,870 1,842 64 42,913 1,295 1,633 (972) 112,645 Fund BalanceNonspendable - - - 48 - - - 48 Restricted by legislation 992,919 31,021 920 (48) - - - 1,024,812 Total fund balance 992,919 31,021 920 - - - - 1,024,860 Total Liabilities and Fund Balance 1,058,789$ 32,863$ 984$ 42,913$ 1,295$ 1,633$ (972)$ 1,137,505$ 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)June 30, 2025 90DTAFT Renewable Emerging VolkswagenPower Cost Energy Energy Rural Diesel CommunityEqualizationGrantTechnologyEnergySettlementContributionsProgramFundFundProjectsFundFund TotalsRevenuesFederal grants -$ -$ -$ 12,791$ -$ -$ 12,791$ State of Alaska appropriations - 5,473 - 18,937 - - 24,410 Revenue from operating plants - - - 1,662 - - 1,662 Other revenues - - - 13 447 - 460 Investment income, net expenditures 96,720 1,556 - - - - 98,276 Total Revenues 96,720 7,029 - 33,403 447 - 137,599 ExpendituresGrants and projects - 7,647 - 30,856 383 - 38,886 Power cost equalization grants 46,762 - - - - - 46,762 General and administrative 2,435 - - 6,655 64 - 9,154 State of Alaska contribution 30,000 - - - - - 30,000 Total Expenditures 79,197 7,647 - 37,511 447 - 124,802 Other financing sources (uses)Interfund capital grants and contributions (3,670) (379) (59) 4,108 - - - Transfers to other funds - 93 - (272) - - (179) Total other financing sources (uses)(3,670) (286) (59) 3,836 - - (179) Change in Fund Balance 13,853 (904) (59) (272) - - 12,618 Fund Balance, Beginning of Year 979,066 31,925 979 272 - - 1,012,242 Fund Balance, End of Year 992,919$ 31,021$ 920$ -$ -$ -$ 1,024,860$ 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, Expenditures, and Changes in Fund Balance (in thousands)Year Ended June 30, 2025 91DTAFT Susitna-PowerBradley Lake Alaska Watana Power Development and Reclass for Hydroelectric Intertie Hydroelectric Project Railbelt Energy Financial StatementProjectProjectProjectFundProjectsPresentation TotalsAssetsCurrent assetsCash and cash equivalents, restricted 184,625$ 2,705$ -$ 12,213$ 9,660$ -$ 209,203$ Operating receivable 379 160 - - - - 539 Prepaid expense 1 - - - - - 1 Loans receivable - - - 1,169 - - 1,169 Due from federal government 489 - - - - - 489 Due from State of Alaska 527 320 - - - (847) - Accrued interest receivable - - - 94 - - 94 Due from other funds/internal balances - - - 230 - (230) - Total current assets 186,021 3,185 - 13,706 9,660 (1,077) 211,495 Noncurrent assetsLoans receivable, net of allowance - - - 28,339 - - 28,339 Capital assets, net of accumulated depreciation 180,015 11,329 183,682 - - - 375,026 Total noncurrent assets 180,015 11,329 183,682 28,339 - - 403,365 Total Assets 366,036$ 14,514$ 183,682$ 42,045$ 9,660$ (1,077)$ 614,860$ See Independent Auditor’s Report. (A Component Unit of the State of Alaska) Alaska Energy Authority Schedule 3 – Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Net Position (in thousands)June 30, 2025 92DTAFT Susitna-PowerBradley Lake Alaska Watana Power Development and Reclass for Hydroelectric Intertie Hydroelectric Project Railbelt Energy Financial StatementProjectProjectProjectFundProjectsPresentation TotalsLiabilities and Net Position LiabilitiesCurrent liabilitiesDue to the federal government 292$ -$ -$ -$ -$ -$ 292$ Due to the State of Alaska - - - - 7,666 (847) 6,819 Due to State of Alaska's component units 11 - - - - 11 Due to other funds/internal balances 720 47 - - - (230) 537 Accounts payable 2,857 3,074 - 37 - - 5,968 Capital acquisition and construction accounts 2,121 67 - - - - 2,188 Capital acquisition and construction accounts (due to federal government)68 - - - - - 68 Bonds payable – current portion 4,299 - - - - - 4,299 Accrued interest payable 850 - - - - - 850 Total current liabilities 11,218 3,188 - 37 7,666 (1,077) 21,032 Noncurrent liabilitiesBonds payable – noncurrent portion, net 191,616 - - - - - 191,616 Total liabilities 202,834 3,188 - 37 7,666 (1,077) 212,648 Net PositionNet investment in capital assets 137,182 11,263 183,682 - - - 332,127 Restricted for capital projects 162,420 - - - - - 162,420 Restricted for debt service 18,267 - - - - - 18,267 Restricted by agreements with external parties 1,213 63 - 29,563 - - 30,839 Restricted by legislation - - - 12,445 1,994 - 14,439 Unrestricted (deficit)(155,880) - - - - - (155,880) Total net position 163,202 11,326 183,682 42,008 1,994 - 402,212 Total Liabilities and Net Position 366,036$ 14,514$ 183,682$ 42,045$ 9,660$ (1,077)$ 614,860$ See Independent Auditor’s Report. Schedule 3 – Business-Type Activities – Enterprise Fund – Projects and Programs – Statement of Net Position, continued (in thousands)June 30, 2025 (A Component Unit of the State of Alaska) Alaska Energy Authority 93DTAFT PowerBradley Lake Alaska Susitna-Watana Power Development andHydroelectricIntertieHydroelectricProjectRailbelt EnergyProjectProjectProjectFundProjects TotalsOperating revenuesState of Alaska appropriations 4,428$ 603$ -$ -$ -$ 5,031$ Federal grants 616 - - - - 616 Revenue from operating plants 23,082 2,831 - - - 25,913 Interest on loans - - - 470 - 470 Other revenues 5 - - 21 - 26 Total operating revenues 28,131 3,434 - 491 - 32,056 Operating expensesDepreciation 11,440 797 - - - 12,237 General and administrative 1,874 631 - - - 2,505 Grants and projects 1,063 - - - - 1,063 Plant operating 7,313 2,609 - - - 9,922 Total operating expenses 21,690 4,037 - - - 25,727 Operating Income (Loss)6,441 (603) - 491 - 6,329 Nonoperating revenues (expenses) Investment income, net expenses 8,134 118 - 426 - 8,678 Federal direct bond interest expense subsidy 1,031 - - - - 1,031 Loss on disposal of assets (2,025) - - - - (2,025) Interest expense and other charges (11,200) - - - - (11,200) transfers (4,060) 118 - 426 - (3,516) Income (Loss) before Capital Contributions 2,381 (485) - 917 - 2,813 Transfers from other funds - - - (93) 272 179 Change in Net Position 2,381 (485) - 824 272 2,992 Net Position, Beginning of Year 160,821 11,811 183,682 41,184 1,722 399,220 Net Position, End of Year 163,202.00$ 11,326.00$ 183,682.00$ 42,008.00$ 1,994.00$ 402,212.00$ 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, 2025 94DTAFT Renewal and ExcessCapitalOperatingRevenue and Contingency Investment Operating Construction Debt Service Reserve Revenue Operating Reserve Operating Reserve Earnings ReserveFundFundFundFundFundAccountFundFundFundAccount Total Balance at July 1, 2024 164,260$ 2,509$ 16,157$ 6,234$ 202$ 190$ 2,757$ 5,278$ -$ 1,546$ 199,133$ Interest received 6,962 11 675 62 14 8 181 158 1 60 8,132 Bond principal paid - (5,338) - - - - - - - - (5,338) Bond interest paid - (16,038) - - - - - - - - (16,038) IRS Interest subsidy received - - - 1,563 - - - - - - 1,563 Operating budget surplus paid - - - - (720) - (1,431) (1,515) - - (3,666) Capital expenditures (12,139) - - - - - - - - - (12,139) Operating revenue received - - - 2,992 - - 21,983 - - - 24,975 Operating expenses paid (947) - - - (301) - (7,508) (2,676) - - (11,432) Proceeds from sale of capital asset - - - - - - 5 - - 5 Transfers between funds 594 21,335 (797) (10,094) 961 5 (14,445) 1,869 60 (58) (570) Balance at June 30, 2025 158,730$ 2,479$ 16,035$ 757$ 156$ 203$ 1,542$ 3,114$ 61$ 1,548$ 184,625$ 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, 2025 95DTAFT Balance at Balance atJuly 1, 2024 Additions Deletions June 30, 2025Capital assetsIntangible 183,682$ -$ -$ 183,682$ Production 326,213 6,095 (58) 332,250 Transmission 208,570 23,296 (12,489) 219,377 General 7,179 1,637 (1,075) 7,741 Total capital assets 725,644 31,028 (13,622) 743,050 Less accumulated depreciationProduction (182,185) (8,717) 16 (190,886) Transmission (168,530) (3,371) 597 (171,304) General (5,685) (149) - (5,834) Total accumulateddepreciation (356,400) (12,237) 613 (368,024) Capital assets, net 369,244$ 18,791$ (13,009)$ 375,026$ See Independent Auditor’s Report. Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 6 – Capital Assets Presented under Federal Energy Regulatory Commission (Unaudited) (in thousands)June 30, 2025 96DTAFT As of As ofOperating Data June 30, 2024 June 30, 2025 Variance Project costsOperations and maintenance 4,356$ 4,635$ (279)$ Repairs 45 61 (16) General and administrative 1,681 1,872 (191) Insurance 1,270 1,213 57 Capital purchases 333 323 10 Contributions to/(from) capital reserve fund (58) (80) 22 Contributions to renewal and contingency fundand operating reserve account 2,131 1,246 885 9,758 9,270 488 Debt service 15,386 15,299 87 Less federal direct bond interest expense subsidy (1,020) (1,031) 11 Less investment income (881) (527) (354) Total cost of power 23,243$ 23,011$ 232$ 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) June 30, 2025 97DTAFT FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Beginning cash and investment balance 969,389$ 946,939$ 1,023,566$ 1,073,378$ 1,072,825$ 1,078,157$ 1,149,165$ 967,416$ 946,597$ 979,405$ Inflows Annual investment earnings (losses)8,912 112,331 76,602 74,142 48,303 150,299 (143,842) 88,405 69,285 96,720 Transfer from AEA interest earnings and prior years appropriations - - - - - - - - 11,712 8,279 Total inflows 8,912 112,331 76,602 74,142 48,303 150,299 (143,842) 88,405 80,997 104,999 Outflows Transfers to AEA for PCE payments (1)(30,622) (34,956) (25,595) (29,719) (27,000) (28,237) (24,000) (54,139) (45,505) (48,666) Transfers to other funds - - - (44,000) (14,867) (49,164) (12,140) (53,775) - - State of Alaska contribution - - - - - - - - - (30,000) Program administration - AEA (255) (243) (624) (444) (575) (737) (602) (214) (616) (301) Administrative fee - Regulatory Commission (100) (112) (113) (102) (108) (123) (135) (126) (167) (105) Management fee - Department of Revenue (385) (393) (458) (430) (421) (1,030) (1,030) (970) (1,901) (2,029) Total outflows (31,362) (35,704) (26,790) (74,695) (42,971) (79,291) (37,907) (109,224) (48,189) (81,101) Ending cash and investment balance 946,939$ 1,023,566$ 1,073,378$ 1,072,825$ 1,078,157$ 1,149,165$ 967,416$ 946,597$ 979,405$ 1,003,303$ (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)June 30, 2025 Externally Managed Fund (Alaska Division of Finance through Fiscal Year 2023 and APFC Fiscal Year 2024 forward) 98DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 9 – Supplementary Organization and Project Information June 30, 2025 99 Organization and Operations The Alaska Energy Authority (AEA) is the State’s lead agency for energy infrastructure development, management, and planning. AEA’s mission is to reduce the cost of energy in Alaska, improve reliability, and support the transition to sustainable energy systems statewide. In July 2024, House Bill 307 reformed AEA’s governance, establishing a dedicated board of directors and creating the Railbelt Transmission Organization (RTO) as a division of AEA. This framework strengthens oversight and equips AEA to meet Alaska’s evolving energy needs. • Owned Assets: AEA owns and operates critical Railbelt infrastructure, including the Bradley Lake Hydroelectric Project, the Alaska Intertie, and the Sterling–Quartz Creek transmission line. AEA is developing the Cook Inlet PowerLink (CIPLink), a high-voltage direct current transmission project designed to eliminate single points of failure, enable economic dispatch, support renewable integration, and strengthen grid resilience. • Power Cost Equalization (PCE): AEA administers the PCE program, which helps reduce electricity costs for residential customers and community facilities in rural Alaska. The program supports more than 82,000 Alaskans in 193 communities, many of which rely on diesel generation. • Rural Energy Programs: AEA manages the Bulk Fuel Upgrade and Rural Power System Upgrade programs, which improve safety, reliability, and efficiency in over 400 bulk fuel facilities and 170 rural power systems. These programs address aging infrastructure, deferred maintenance, and code compliance, protecting assets and supporting community resilience. AEA provides technical assistance and operator training through the Alaska Vocational Technical Center and itinerant sessions to help rural utilities extend system life and prevent failures. • Renewable Energy and Energy Efficiency: AEA partners with utilities, governments, tribal organizations, nonprofits, and independent power producers to implement renewable energy solutions—biomass, hydroelectric, solar, wind, and electric vehicles. The program offers technical assistance, funding, and training to expand awareness and adoption of cost-saving energy technologies. • Planning: AEA’s Planning Team manages grant and loan programs, coordinates energy project planning, and provides technical assistance and training. The team works with state, federal, and private partners to expand services and funding, collaborating with the Department of Energy, Tribal and Indian Energy programs, and National Laboratories to ensure communities benefit from the latest funding and innovation. • Railbelt Transmission Organization (RTO): As part of its expanded role under House Bill 307, AEA provides administrative support to the RTO to develop a unified Open Access Transmission Tariff. This effort aims to remove barriers to competition and improve coordination across the Railbelt. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 9 – Supplementary Organization and Project Information June 30, 2025 100 High-Impact Infrastructure Initiatives Cook Inlet PowerLink (CIPLink) CIPLink is a transformative high-voltage direct current transmission system designed to connect the Southern and Central Railbelt regions. Spanning 38 miles beneath Cook Inlet and an additional eight miles over land, the system will include converter stations at each end to support a bidirectional power flow of up to 200 megawatts. This infrastructure will significantly enhance grid reliability, unlock previously constrained generation capacity, and provide critical redundancy for military and industrial customers. The total estimated cost for the project is $413 million. AEA has already secured $206.5 million through a U.S. Department of Energy grant and an additional $64.2 million in matching funds. However, the project still requires $142.3 million in additional matching contributions. To address this, AEA is actively exploring financing options, including revenue bonds and federal matching opportunities. The project is in early stages of design, environmental review, and procurement planning. Given the environmentally sensitive nature of the region and the technical complexity of subsea construction, AEA anticipates significant challenges related to labor and logistics as the project moves forward. Bradley Lake Expansion Project The Bradley Lake Hydroelectric Project is a cornerstone of Alaska’s energy infrastructure, owned by AEA. With 120 megawatts of installed capacity, Bradley Lake delivers reliable, low-cost hydroelectric power to Alaska’s Railbelt, serving communities from the Kenai Peninsula to Fairbanks and the Delta Junction area. Power generated at Bradley Lake is transmitted to the state’s main grid via two parallel 20-mile transmission lines. Since beginning commercial operations in 1991—after an investment of more than $400 million—the project has been operated under contract by Homer Electric Association, ensuring consistent service and operational expertise. Bradley Lake’s strategic location and robust output make it a vital resource for meeting Alaska’s energy needs, supporting grid stability, and reducing reliance on fossil fuels. To further enhance the benefits of Bradley Lake, AEA is advancing the Bradley Lake Expansion Project, known as the Dixon Diversion. Like the $47 million West Fork Upper Battle Creek Diversion Project, this transformative initiative will divert water from Dixon Glacier through a five-mile tunnel into Bradley Lake, increasing the annual energy output by 50 percent—up to 180,000 megawatt-hours (MWh). This additional capacity is enough to power approximately 30,000 homes and offset 1.5 billion cubic feet of natural gas each year (equal to 7.5 percent of Alaska's projected unmet natural gas demand in 2030), directly supporting Alaska’s transition to cleaner energy and helping address projected natural gas shortfalls. The project carries an estimated cost of $342 million, with $19.7 million already secured to support development and environmental studies. AEA anticipates funding the remainder through revenue bonds and other mechanisms. The final year of environmental studies is scheduled for Fall 2025, followed by submission of a Draft License Amendment Application to FERC in January 2026. Construction is expected to begin in 2028, with operations commencing in 2031. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 9 – Supplementary Organization and Project Information June 30, 2025 101 Railbelt Transmission Upgrades To address critical infrastructure needs and enhance the reliability of Alaska’s Railbelt transmission system, AEA and Railbelt Utilities issued $166 million in bonds (the Eleventh Series) on November 30, 2022. These revenue bonds were approved by the AEA board and supported by participating Utilities, who agreed to continue paying a per- kilowatt-hour fee after previous bonds were paid off. The ongoing payments are dedicated to required project work—both maintenance and system enhancements—ensuring funds remain available for strategic upgrades without requiring broad public approval. The bond proceeds were allocated to projects that directly support Bradley Lake and the Railbelt, with the Utilities contracting for allocations of services and capacity. This approach allows AEA to invest in upgrades that benefit the entire system, while utilities receive value through improved reliability and operational flexibility. The $166 million in AEA bonds are strategically invested in transmission upgrades, energy storage, and new infrastructure to ensure the Railbelt’s reliability and long-term sustainability. These projects reflect a collaborative approach between AEA and utilities, leveraging ongoing payments and capacity agreements to deliver tangible benefits across Alaska’s energy network. Alaska Intertie Project The Alaska Intertie spans 170 miles and was designed for 345 kilovolts (kV), though it operates at 138 kV. It connects electric utilities between Willow and Healy, linking Southcentral Alaska utilities with those in the Fairbanks area. AEA and the Intertie Management Committee (IMC) jointly manage the Alaska Intertie under the terms of the Alaska Intertie Agreement. AEA contracts with Golden Valley Electric Association (GVEA) in Fairbanks, along with Chugach Electric Association (CEA) and Matanuska Electric Association (MEA) in Southcentral Alaska, to handle operations and maintenance. These three organizations are referred to as participating utilities. The Alaska Intertie improves system reliability by reducing blackouts and brownouts. It allows power to flow north or south during major system disturbances. GVEA uses the Intertie to purchase low-cost power from Southcentral utilities, while Southcentral utilities can source power from Fairbanks during shortages. The Intertie also enables GVEA to receive power from the Bradley Lake Hydroelectric Project—among the most affordable electricity in the Railbelt. Under the Second Amended and Restated Intertie Agreement, executed on March 11, 2014, the AEA and IMC oversee all project activities. AEA contracts with participating utilities for operations and maintenance. The Agreement enhances the reliability of interconnected electrical systems, defines how participants transfer electrical capacity and energy over the Intertie, and formally establishes the IMC. The IMC governs, controls, operates, maintains, repairs, and improves the Intertie, all under AEA’s oversight. The committee includes representatives from AEA and each participating utility. DTAFT Alaska Energy Authority (A Component Unit of the State of Alaska) Schedule 9 – Supplementary Organization and Project Information June 30, 2025 102 Susitna-Watana Hydroelectric Project In 2010, AEA began preliminary planning and conceptual design for a large hydroelectric project in the Railbelt Region. After studying several hydroelectric generation alternatives, AEA issued a Preliminary Decision Document selecting what is now known as the Susitna-Watana Hydroelectric Project as the State’s primary large hydroelectric initiative. The proposed project would sit roughly halfway between Anchorage and Fairbanks on the upper Susitna River. AEA identified the dam site within a steep-sided valley below Watana Creek at River Mile 184, about 22 miles upstream of the Devil's Canyon rapids. The project design includes a single roller-compacted concrete dam with a nominal crest elevation of 2,050 feet above mean sea level. It would create a 42.5-mile-long reservoir covering 23,546 acres, with an average width of one to two miles. Engineering feasibility studies determined the dam’s height to be 705 feet. Transmission lines would connect the powerhouse, dam, and related facilities to the Alaska Intertie. The project is expected to generate approximately 50 percent of the Railbelt’s electrical demand—an annual average of 2,800,000 MWh. In December 2011, AEA filed a Notice of Intent and Pre-Application Document with FERC to begin the licensing process. FERC approved 58 environmental study plans in early 2013. AEA collaborated with the Alaska Department of Fish and Game to conduct fishery and wildlife studies. On June 3, 2014, AEA submitted the Initial Study Report (ISR), a nearly 7,000-page document presenting data from the first year of field studies. The Alaska Legislature appropriated $192 million for AEA to plan, design, and secure a FERC permit. On December 26, 2014, Governor Bill Walker issued Administrative Order (AO) 271, suspending discretionary spending on the project. FERC granted AEA’s request to hold the licensing process in abeyance on January 8, 2015. On July 6, 2015, Governor Walker authorized AEA to resume the Integrated Licensing Process (ILP) using previously appropriated funds. AEA requested FERC’s permission to restart licensing efforts in August 2015. On August 4, 2016, Governor Walker asked FERC to proceed with the ILP to the point of issuing an updated Study Plan Determination (SPD) to preserve the State’s investment. FERC agreed on August 26, 2016, and committed to completing the SPD before placing the project back into abeyance. On June 22, 2017, FERC issued its Determination on the ISR for Susitna. The findings were favorable to the State. However, because FERC issued the Determination more than 100 days past the ILP schedule (March 10, 2017), AEA lacked sufficient time in FY17 to complete authorized scopes of work. AEA requested a 90-day extension to preserve the State’s investment and complete the necessary analysis and revisions. On July 18, 2017, the Office of Management and Budget authorized AEA to continue spending on the project for 90 days from June 30, 2017. AEA received approval and completed the work. The team completed all tasks and terminated remaining contracts by September 30, 2017. AEA returned approximately $1,893,000 in remaining funds to the State in FY19. The licensing project, previously in abeyance since FY14, was officially rescinded in FY19 under Administrative Order 271. If the project proposal remains unchanged and the data continues to reflect current conditions, FERC has ruled that AEA will not need to repeat completed ILP steps. As of June 30, 2024, the project remains viable. AEA continues to engage with the Governor, Alaska State Legislature, Congressional Delegation, Trump Administration, and Railbelt Utilities to foster ongoing dialogue around the initiative. DTAFT Orrick, Herrington & Sutcliffe LLP 401 Union Street Suite 3300 Seattle, WA 98101-2668 +1 206 839 4300 orrick.com 4153-6453-6415.2 Summary of Alaska Energy Authority Large Project Development Options and Limitations (summary only and qualified by reference to the relevant Alaska statutes) Bonding Authority AS 44.83.080 (purpose); AS 44.83.070 AEA has authority to issue bonds to carry out its corporate purposes and powers; AEA’s statutory purposes are broad: to promote, develop, and advance the general prosperity and economic welfare of the people of the state by providing a means of financing and operating power projects and to carry out the powers assigned to it under AS 42.4.5 AS 44.83.120 (state pledge and nonliability) The state pledges not to impair AEA’s agreements with bondholders AS 44.83.130 (state nonliability) Bonds of AEA are not debt or liability of the state or any other political subdivision No dollar amount limitation No cap on AEA’s bonding authority Public Private Partnerships (P3) AS 44.83.080 et al (equity) Does not prohibit shared investment and ownership (equity), e.g., among state and municipal governments as well as private partners AS 44.83.080 et al (Build-Operate) Does not prohibit private partner building and operating a facility for a specified period Issuing Loans to Developers AS 42.45.010 (PPF; legislative approval) AEA may issue loans to developers through its Power Project Fund (“PPF”), which is capitalized by the legislature; PPF loans in excess of $5 million must be approved by the legislature AS 44.83.080 (broad lending authority, no legislative approval) AEA has authority to issue loans outside its PPF program; loans issued under AEA’s general lending authority are not subject to legislative approval SEFI (DOE LPO program) AEA can serve as a State Energy Finance Institution (SEFI) under the U.S. Department of Energy’s Loan Program Office program, which can increase access to financing for Alaska energy project developers Gifts, Grants, and Loans AS 44.83.080 AEA has authority to accept gifts, grants, and loans, as well as to enter into contracts regarding them Asset Ownership and Operation September 4, 2025 Page 2 4153-6453-6415.2 AS 44.83.080 Allows AEA to own, improve and operate energy projects outright or jointly with public or private entities Legislative Approval AS 44.83.910 (bonds) AEA may not issue bonds except after 60 days notification of its intent to issue bonds is given to the governor and to the legislature, if the legislature is in session, or to the Legislative Budget and Audit Committee, if the legislature is not in session AS 42.45.010 (PPF loans) PFF loans in excess of $5 million must be approved by the legislature (loans issued under AEA’s general lending authority are not subject to legislative approval) AS 44.83.080 (partnering with foreign governments and their agencies) AEA is authorized to partner (enter into contracts as well as operate, improve and maintain projects) with foreign governmental entities (and their agencies) subject to the laws of the United States and subject to concurrence of the legislature Foreign Partnership AS 44.83.080 (foreign, non-governmental) AEA is authorized to partner (enter into contracts as well as own, improve, operate and maintain projects) with foreign entities that are not governmental; no legislative concurrence required Dollar Amount Limits No cap on AEA’s bonding authority or other means of financing 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 W. Thayer, Executive Director From: Mark Billingsley, General Counsel Date: October 30, 2025 Subject: Resolution Authorizing Executive Director to submit LPO Application This memo accompanies a proposed resolution that would authorize the AEA Executive Director to submit applications and addenda to the U.S. Department of Energy (DOE) Loan Programs Office (LPO) under the Title 17 Clean Energy Financing Program. This action is necessary to meet DOE requirements for evidence of signatory authority and to ensure timely, compliant submission of AEA’s LPO application. Background: The DOE LPO requires that the signatory of any Title 17 application be formally authorized by the applicant’s governing body to bind the organization to the commitments and representations made in the application. Acceptable evidence includes a board resolution, bylaws, or similar documents. AEA is preparing to submit an application that will include the Dixon Diversion and CIPLink projects. Resolution Summary: The accompanying resolution will: • Authorize the Executive Director, Curtis Thayer, to execute and submit all application, addenda, certifications, and supporting documents required by the DOE LPO for the Title 17 program, including for Dixon Diversion and CIPLink. • Empower the Executive Director to make all necessary attestations and representations, and to take any actions required to effectuate the submission and processing of these applications. Legal Basis: This action is consistent with the AEA Bylaws, which vest the Board with all powers of the Authority and allow the Board to delegate authority to the Executive Director to administer the business affairs of the Authority and perform such other duties as the Board may prescribe (see Article II, Section 1 and Article III, Section 1). ALASKA ENERGY AUTHORITY RESOLUTION 2025-__ RESOLUTION OF THE ALASKA ENERGY AUTHORITY AUTHORIZING THE EXECUTIVE DIRECTOR TO SUBMIT APPLICATIONS AND ADDENDA TO THE U.S. DEPARTMENT OF ENERGY LOAN PROGRAMS OFFICE WHEREAS, the Alaska Energy Authority (“AEA”) is a public corporation of the State of Alaska, governed by its Board of Directors and operating pursuant to its Bylaws and applicable Alaska statutes; WHEREAS, the Board of Directors is vested with the powers of the Authority and may delegate authority to the Executive Director as provided in the Bylaws; WHEREAS, the U.S. Department of Energy Loan Programs Office (“LPO”) requires that the signatory of any application for a loan guarantee under the Title 17 Clean Energy Financing Program be duly authorized to bind the applicant to the commitments and representations made in the application and to attest to the accuracy of the information provided; and WHEREAS, the Board of Directors desires to authorize the Executive Director to submit such applications and any necessary addenda for the Bradley Lake Expansion (Dixon Diversion), CIPLink, and other eligible projects; NOW, THEREFORE, BE IT RESOLVED, by the ALASKA ENERGY AUTHORITY as follows:: Section 1. The Board of Directors hereby authorizes the Executive Director to execute and submit, on behalf of the Alaska Energy Authority, all applications, addenda, certifications, representations, and supporting documents required by the U.S. Department of Energy Loan Programs Office for the Title 17 Clean Energy Financing Program, including but not limited to applications for the Dixon Diversion, CIPLink, and other projects. Section 2. The Board further authorizes the Executive Director to make such attestations, representations, and commitments as may be required by the LPO, and to take all actions necessary or appropriate to effectuate the submission and processing of such applications, including the execution of any related agreements, certifications, or amendments. Section 3. The Board affirms that this resolution constitutes evidence of the Executive Director’s authority to bind the Alaska Energy Authority to the commitments and representations made in the application(s) and to attest to the accuracy of the information provided therein. Section 4. This resolution shall remain in effect unless and until amended or rescinded by further action of the Board. Dated at Anchorage, Alaska, this ____ day of October 2025. ALASKA ENERGY AUTHORITY ____________________________ Clay Koplin, Chair ____________________________ Curtis W. Thayer, Secretary/Treasurer 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 FROM: Curtis Thayer, Executive Director DATE: October 20, 2025 SUBJECT: AEA 2026 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. The proposed AEA Board Meeting schedule for 2026 is as follows: • January 29, 2026, including a Strategic Planning Session • April 16, 2026 • July 30, 2026 • October 29, 2026 Department of Commerce, Community, Economic Development Department Totals AEA - All Components FY2025 Final Authorized 0 FY2025 Actuals 0 FY2025 Spec Appn Auth.0 FY2025 Spec Appn Actuals*0 FY2025 Final Authorized Adj.0 FY2025 Actuals Adj. Actual Data for Entry ***Component Total*** Expenditures 1000 $12,960.0 $6,580.5 $12,960.0 $6,580.5 2000 $388.3 $91.3 $388.3 $91.3 3000 $3,791.0 $3,170.6 $3,791.0 $3,170.6 4000 $336.0 $25.7 $336.0 $25.7 5000 $15.0 $0.0 $15.0 $0.0 7000 $47,794.8 $46,808.5 $47,794.8 $46,808.5 8000 $0.0 $0.0 $0.0 $0.0 $65,285.1 $56,676.7 $0.0 $0.0 $65,285.1 $56,676.7 Funding 1002 Fed Rcpts $1,208.6 $550.4 $1,208.6 $550.4 1003 G/F Match $0.0 $0.0 $0.0 $0.0 1004 Unrestricted General Fund Receipts $3,017.6 $3,017.6 $3,017.6 $3,017.6 1005 GF/PR $50.0 $0.0 $50.0 $0.0 1007 I/A Rcpts $286.8 $1,343.3 $286.8 $1,343.3 1036 Cm Fish Ln $0.0 $0.0 $0.0 $0.0 1037 General Fund / Mental Health $0.0 $0.0 1040 Surety Fund $0.0 $0.0 $0.0 $0.0 1061 CIP Rcpts $8,310.0 $2,999.3 $8,310.0 $2,999.3 1062 Power Proj $996.4 $79.7 $996.4 $79.7 1070 Fish En Ln $0.0 $0.0 $0.0 $0.0 1074 Bulk Fuel $0.0 $0.0 $0.0 $0.0 1102 AIDEA Rcpts $0.0 $0.0 $0.0 $0.0 1107 AEA Rcpts $1,199.0 $1,036.4 $1,199.0 $1,036.4 1108 Stat Desig $150.0 $13.7 $150.0 $13.7 1141 RCA Rcpts $0.0 $0.0 $0.0 $0.0 1156 Rcpt Svcs $0.0 $0.0 $0.0 $0.0 1162 AOGCC Rcpt $0.0 $0.0 $0.0 $0.0 1164 RDIF $0.0 $0.0 $0.0 $0.0 1169 PCE Endowment $48,665.5 $47,351.4 $48,665.5 $47,351.4 1170 SmBusEDRLF $0.0 $0.0 $0.0 $0.0 1202 Anatomical $0.0 $0.0 $0.0 $0.0 1205 Ocn Rngr $0.0 $0.0 $0.0 $0.0 1206 CPV Tax $0.0 $0.0 $0.0 $0.0 1209 Capstone $0.0 $0.0 $0.0 $0.0 1210 Renewable Energy $1,401.2 $284.9 $1,401.2 $284.9 1216 Boat Rcpts $0.0 $0.0 $0.0 $0.0 1221 Civil Legl $0.0 $0.0 $0.0 $0.0 1223 CharterRLF $0.0 $0.0 $0.0 $0.0 1224 MariculRLF $0.0 $0.0 $0.0 $0.0 1225 Cquota RLF $0.0 $0.0 $0.0 $0.0 1227 MicroRLF $0.0 $0.0 $0.0 $0.0 1234 Lic Plates $0.0 $0.0 $0.0 $0.0 1235 AGDC-LNG $0.0 $0.0 $0.0 $0.0 1248 ACHIF $0.0 $0.0 $0.0 $0.0 1265 COVID Fed $0.0 $0.0 $0.0 $0.0 1269 CSLFRF $0.0 $0.0 $0.0 $0.0 9999 $0.0 $0.0 $0.0 $0.0 $65,285.1 $56,676.7 $0.0 $0.0 $65,285.1 $56,676.7 0.0 0.0 0.0 0.0 0.0 0.0 Staffing Full-Time 00 Part-Time 00 Temporary 00 Add footnotes for Spec Appns detail AEA FY25 Budget to Actuals - October Board Meeting / AEA Summary 1 10/9/2025 Department of Commerce, Community, Economic Development Department Totals AEA Owned Facilities FY2025 Final Authorized 0 FY2025 Actuals 0 FY2025 Spec Appn Auth.0 FY2025 Spec Appn Actuals*0 FY2025 Final Authorized Adj.0 FY2025 Actuals Adj. Actual Data for Entry ***Component Total*** Expenditures 1000 $0.0 $0.0 2000 $52.1 $52.1 $0.0 3000 $1,123.9 $1,036.4 $1,123.9 $1,036.4 4000 $18.0 $18.0 $0.0 5000 $5.0 $5.0 $0.0 7000 $0.0 $0.0 8000 $0.0 $0.0 $1,199.0 $1,036.4 $0.0 $0.0 $1,199.0 $1,036.4 Funding 1002 Fed Rcpts $0.0 $0.0 1003 G/F Match $0.0 $0.0 1004 Unrestricted General Fund Receipts $0.0 $0.0 1005 GF/PR $0.0 $0.0 1007 I/A Rcpts $0.0 $0.0 1036 Cm Fish Ln $0.0 $0.0 1037 General Fund / Mental Health 1040 Surety Fund $0.0 $0.0 1061 CIP Rcpts $0.0 $0.0 1062 Power Proj $0.0 $0.0 1070 Fish En Ln $0.0 $0.0 1074 Bulk Fuel $0.0 $0.0 1102 AIDEA Rcpts $0.0 $0.0 1107 AEA Rcpts $1,199.0 $1,036.4 $1,199.0 $1,036.4 1108 Stat Desig $0.0 $0.0 1141 RCA Rcpts $0.0 $0.0 1156 Rcpt Svcs $0.0 $0.0 1162 AOGCC Rcpt $0.0 $0.0 1164 RDIF $0.0 $0.0 1169 PCE Endowment $0.0 $0.0 1170 SmBusEDRLF $0.0 $0.0 1202 Anatomical $0.0 $0.0 1205 Ocn Rngr $0.0 $0.0 1206 CPV Tax $0.0 $0.0 1209 Capstone $0.0 $0.0 1210 Renewable Energy $0.0 $0.0 1216 Boat Rcpts $0.0 $0.0 1221 Civil Legl $0.0 $0.0 1223 CharterRLF $0.0 $0.0 1224 MariculRLF $0.0 $0.0 1225 Cquota RLF $0.0 $0.0 1227 MicroRLF $0.0 $0.0 1234 Lic Plates $0.0 $0.0 1235 AGDC-LNG $0.0 $0.0 1248 ACHIF $0.0 $0.0 1265 COVID Fed $0.0 $0.0 1269 CSLFRF $0.0 $0.0 9999 $0.0 $0.0 $1,199.0 $1,036.4 $0.0 $0.0 $1,199.0 $1,036.4 0.0 0.0 0.0 0.0 0.0 0.0 Staffing Full-Time 00 Part-Time 00 Temporary 00 Add footnotes for Spec Appns detail AEA FY25 Budget to Actuals - October Board Meeting / AEA Owned Fac 2 10/9/2025 Department of Commerce, Community, Economic Development Department Totals AEA Rural Energy Assistance FY2025 Final Authorized 0 FY2025 Actuals 0 FY2025 Spec Appn Auth.0 FY2025 Spec Appn Actuals*0 FY2025 Final Authorized Adj.0 FY2025 Actuals Adj. Actual Data for Entry ***Component Total*** Expenditures 1000 $8,500.0 5,596.85 $8,500.0 $5,596.9 2000 $252.3 $91.3 $252.3 $91.3 3000 $409.0 $1,728.0 $409.0 $1,728.0 4000 $198.0 $25.7 $198.0 $25.7 5000 $10.0 $10.0 $0.0 7000 $100.0 $100.0 $0.0 8000 (prepaid items)$0.0 $0.0 $0.0 * includes encumbrances $9,469.3 $7,441.9 $0.0 $0.0 $9,469.3 $7,441.9 Funding 1002 Fed Rcpts $1,208.6 $550.4 $1,208.6 $550.4 1003 G/F Match $0.0 $0.0 1004 Unrestricted General Fund Receipts $3,017.6 $3,017.6 $3,017.6 $3,017.6 1005 GF/PR $50.0 $50.0 $0.0 1007 I/A Rcpts $286.8 $1,343.3 (2)$286.8 $1,343.3 1036 Cm Fish Ln $0.0 $0.0 1037 General Fund / Mental Health 1040 Surety Fund $0.0 $0.0 1061 CIP Rcpts $1,976.9 $2,015.6 (3)$1,976.9 $2,015.6 1062 Power Proj $996.4 $79.7 $996.4 $79.7 1070 Fish En Ln $0.0 $0.0 1074 Bulk Fuel $0.0 $0.0 1102 AIDEA Rcpts $0.0 $0.0 1107 AEA Rcpts $0.0 $0.0 1108 Stat Desig $150.0 $13.7 $150.0 $13.7 1141 RCA Rcpts $0.0 $0.0 1156 Rcpt Svcs $0.0 $0.0 1162 AOGCC Rcpt $0.0 $0.0 1164 RDIF $0.0 $0.0 1169 PCE Endowment $381.8 $136.7 $381.8 $136.7 1170 SmBusEDRLF $0.0 $0.0 1202 Anatomical $0.0 $0.0 1205 Ocn Rngr $0.0 $0.0 1206 CPV Tax $0.0 $0.0 1209 Capstone $0.0 $0.0 1210 Renewable Energy $1,401.2 $284.9 $1,401.2 $284.9 1216 Boat Rcpts $0.0 $0.0 1221 Civil Legl $0.0 $0.0 1223 CharterRLF $0.0 $0.0 1224 MariculRLF $0.0 $0.0 1225 Cquota RLF $0.0 $0.0 1227 MicroRLF $0.0 $0.0 1234 Lic Plates $0.0 $0.0 1235 AGDC-LNG $0.0 $0.0 1248 ACHIF $0.0 $0.0 1265 COVID Fed $0.0 $0.0 1269 CSLFRF $0.0 $0.0 9999 $0.0 $0.0 $9,469.3 $7,441.9 $0.0 $0.0 $9,469.3 $7,441.9 0.0 0.0 0.0 0.0 0.0 0.0 Staffing Full-Time 00 Part-Time 00 Temporary 00 Add footnotes for Spec Appns detail AEA FY25 Budget to Actuals - October Board Meeting / AEA Rural 3 10/9/2025 Department of Commerce, Community, Economic Development Department Totals AEA Power Cost Equalization FY2025 Final Authorized 0 FY2025 Actuals 0 FY2025 Spec Appn Auth.0 FY2025 Spec Appn Actuals*0 FY2025 Final Authorized Adj.0 FY2025 Actuals Adj. Actual Data for Entry ***Component Total*** Expenditures 1000 $0.0 $0.0 2000 $5.4 $5.4 $0.0 3000 $583.5 $406.3 $583.5 $406.3 4000 $0.0 $0.0 5000 $0.0 $0.0 7000 $47,694.8 $46,808.5 $47,694.8 $46,808.5 8000 $0.0 $0.0 * includes encumbrances $48,283.7 $47,214.7 $0.0 $0.0 $48,283.7 $47,214.7 Funding 1002 Fed Rcpts $0.0 $0.0 1003 G/F Match $0.0 $0.0 1004 Unrestricted General Fund Receipts $0.0 $0.0 1005 GF/PR $0.0 $0.0 1007 I/A Rcpts $0.0 $0.0 1036 Cm Fish Ln $0.0 $0.0 1037 General Fund / Mental Health 1040 Surety Fund $0.0 $0.0 1061 CIP Rcpts $0.0 $0.0 1062 Power Proj $0.0 $0.0 1070 Fish En Ln $0.0 $0.0 1074 Bulk Fuel $0.0 $0.0 1102 AIDEA Rcpts $0.0 $0.0 1107 AEA Rcpts $0.0 $0.0 1108 Stat Desig $0.0 $0.0 1141 RCA Rcpts $0.0 $0.0 1156 Rcpt Svcs $0.0 $0.0 1162 AOGCC Rcpt $0.0 $0.0 1164 RDIF $0.0 $0.0 1169 PCE Endowment $48,283.7 $47,214.7 $48,283.7 $47,214.7 1170 SmBusEDRLF $0.0 $0.0 1202 Anatomical $0.0 $0.0 1205 Ocn Rngr $0.0 $0.0 1206 CPV Tax $0.0 $0.0 1209 Capstone $0.0 $0.0 1210 Renewable Energy $0.0 $0.0 1216 Boat Rcpts $0.0 $0.0 1221 Civil Legl $0.0 $0.0 1223 CharterRLF $0.0 $0.0 1224 MariculRLF $0.0 $0.0 1225 Cquota RLF $0.0 $0.0 1227 MicroRLF $0.0 $0.0 1234 Lic Plates $0.0 $0.0 1235 AGDC-LNG $0.0 $0.0 1248 ACHIF $0.0 $0.0 1265 COVID Fed $0.0 $0.0 1269 CSLFRF $0.0 $0.0 9999 $0.0 $0.0 $48,283.7 $47,214.7 $0.0 $0.0 $48,283.7 $47,214.7 0.0 0.0 0.0 0.0 0.0 0.0 Staffing Full-Time 00 Part-Time 00 Temporary 00 Add footnotes for Spec Appns detail AEA FY25 Budget to Actuals - October Board Meeting / AEA PCE 4 10/9/2025 Department of Commerce, Community, Economic Development Department Totals Alternative Energy & Efficiency FY2025 Final Authorized 0 FY2025 Actuals 0 FY2025 Spec Appn Auth.0 FY2025 Spec Appn Actuals*0 FY2025 Final Authorized Adj.0 FY2025 Actuals Adj. Actual Data for Entry ***Component Total*** Expenditures 1000 $4,460.0 $983.7 $4,460.0 $983.7 2000 $78.5 $78.5 $0.0 3000 $1,674.6 $1,674.6 $0.0 4000 $120.0 $120.0 $0.0 5000 $0.0 $0.0 7000 $0.0 $0.0 8000 $0.0 $0.0 * includes encumbrances $6,333.1 $983.7 $0.0 $0.0 $6,333.1 $983.7 Funding 1002 Fed Rcpts $0.0 $0.0 1003 G/F Match $0.0 $0.0 1004 Unrestricted General Fund Receipts $0.0 $0.0 1005 GF/PR $0.0 $0.0 1007 I/A Rcpts $0.0 $0.0 1036 Cm Fish Ln $0.0 $0.0 1037 General Fund / Mental Health 1040 Surety Fund $0.0 $0.0 1061 CIP Rcpts $6,333.1 $983.7 $6,333.1 $983.7 1062 Power Proj $0.0 $0.0 1070 Fish En Ln $0.0 $0.0 1074 Bulk Fuel $0.0 $0.0 1102 AIDEA Rcpts $0.0 $0.0 1107 AEA Rcpts $0.0 $0.0 1108 Stat Desig $0.0 $0.0 1141 RCA Rcpts $0.0 $0.0 1156 Rcpt Svcs $0.0 $0.0 1162 AOGCC Rcpt $0.0 $0.0 1164 RDIF $0.0 $0.0 1169 PCE Endowment $0.0 $0.0 1170 SmBusEDRLF $0.0 $0.0 1202 Anatomical $0.0 $0.0 1205 Ocn Rngr $0.0 $0.0 1206 CPV Tax $0.0 $0.0 1209 Capstone $0.0 $0.0 1210 Renewable Energy $0.0 $0.0 1216 Boat Rcpts $0.0 $0.0 1221 Civil Legl $0.0 $0.0 1223 CharterRLF $0.0 $0.0 1224 MariculRLF $0.0 $0.0 1225 Cquota RLF $0.0 $0.0 1227 MicroRLF $0.0 $0.0 1234 Lic Plates $0.0 $0.0 1235 AGDC-LNG $0.0 $0.0 1248 ACHIF $0.0 $0.0 1265 COVID Fed $0.0 $0.0 1269 CSLFRF $0.0 $0.0 9999 $0.0 $0.0 $6,333.1 $983.7 $0.0 $0.0 $6,333.1 $983.7 0.0 0.0 0.0 0.0 0.0 0.0 Staffing Full-Time 00 Part-Time 00 Temporary 00 Add footnotes for Spec Appns detail AEA FY25 Budget to Actuals - October Board Meeting / AEA Statewide 5 10/9/2025 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: Board Of Directors Through: Curtis W. Thayer, Executive Director From: Mark Billingsley, General Counsel Date: October 30, 2025 Subject: Regulatory Requirement Reduction Project – Status Update and Next Steps I. Overview of the Regulatory Requirement Reduction Initiative In August 2025, Governor Dunleavy issued Administrative Order 360, launching a statewide initiative to reduce discretionary regulatory requirements across all executive branch agencies and state corporations, including AEA. The goal is to streamline Alaska’s regulatory environment, enhance operational efficiency, and reduce unnecessary burdens on agencies, businesses, and the public. Under this initiative, each agency is required to reduce discretionary regulatory requirements by 15% by December 31, 2026, and 25% by December 31, 2027 (cumulative). The Department of Law and the Office of the Governor are overseeing implementation. II. Project Status Update A. Baseline Establishment and Counting AEA has completed the process of identifying and counting all discretionary regulatory requirements. This included reviewing all current regulations and guidance documents. AEA submitted its baseline count and guidance document inventory by the October 7, 2025 deadline. AEA has 223 regulations, 250 regulatory requirements total, 247 discretionary regulatory requirements, and 219 pages of guidance documents. B. Stakeholder Engagement This project also includes stakeholder and public engagement. AEA organized listening sessions to solicit feedback on which regulations are most burdensome and should be prioritized for reform. They were held on October 1 and October 7 at 9am. Additionally, the period for written public comments was held open until October 15, 2025. All recommendations will be documented, and a decisional document will be prepared to explain which suggestions are accepted or rejected and why. III. What to Expect Going Forward A. Regulatory Reform Plan Submission By January 5, 2026, AEA will submit a proposed plan for regulatory reform, identifying specific regulations for revision based on stakeholder input. The plan will outline how AEA will achieve the 15% and 25% reduction targets and will be posted publicly once approved. B. Reduction of Regulatory Requirements AEA will review its regulations and guidance documents to identify opportunities for reduction and streamlining. This process will involve an analysis of whether regulatory requirements are outdated, duplicative, or unnecessarily burdensome. Once potential reductions are identified, Alaska Energy Authority Page 2 of 2 AEA will prioritize reforms that maximize efficiency while maintaining essential protections. Proposed regulation changes will be achieved through coordination with the Department of Law’s Legislation, Regulations, and Legislative Research (LRLR) Section, which will provide legal review, drafting support, and ensure that all amendments are consistent with statutory requirements and best practices. C. Quarterly Reporting Progress will be tracked and reported quarterly to the Office of the Governor and Department of Law. Reports will include the number of requirements reduced, new requirements added, and overall progress toward mandated reduction targets. Curtis Thayer Executive Director 9-3-2025 Alaska Energy Authority Federal Funding Tracker 10/20/2025 477,926,010$ 258,516,602$ 149,712,613$ Status Source Program Name Award / Request ($)Required Match (%)Required Match ($)Remaining Match Needed ($)Comments 1-Awarded IIJA Grid Resilience and Innovation Partnerships Program Topic 3 - Subsea HVDC Line $206,500,000 100% $206,500,000 143,800,000$ Email on 9/12/2025 - AEA received confirmation that the CIPLink project has been approved to proceed having submitted it for review per a DOE policy memo requesting review of nearly 200 selected GRIP projects. DOE/NETL stated they will be providing additional guidance on next steps for project including standardization of award terms and conditions and other matters negotiation related to the award. DOE/NETL has requested that no public annoucements be made regarding this notice of approval to proceed. DOE Sources for match of $62.7M have been identified and $143.8M is still needed. Initial award effective 9/1/24. Initial Kickoff meeting took place 3/19. 1-Awarded IIJA National Electric Vehicle Infrastructure Program (NEVI) - Formula Funding FFY22-FFY26 $52,415,294 20% $10,483,059 -$ 9/10: AEA submitted the updated NEVI plan, awaiting FHWA approval. 1-Awarded IIJA Preventing Outages and Enhancing the Resilience of the Electric Grid to States and Indian Tribes - Formula Funding FFY22-FFY26 $39,801,510 15% $9,082,895 -$ 10/15: AEA has secured $39.8 million in federal formula funds to date under this program to fund competitively-selected electric grid resilience projects. AEA has also secured $9 million in cost match under the program, which requires a 15% cost match in order to access federal formula funds. AEA is currently finalizing its sub-award agreements with those grantees selected from AEA's first request for applications, funding $20.9 million in grid resilience projects along the Railbelt. In early Sept. 2025 AEA completed its review of its second round of request for applications under the program, and has made preliminary selections funding three projects for a total award of $17.7 million, which will fund resilience grid resilience projects within the Railbelt and Southeast regions. These projects were forwarded onto DOE for official review and approval on 10/14. Final DOE approval is anticipated mid Q1 CY2026. The timing of the final federal formula allocation to AEA under the program, the amount of which is estimated to be upwards of $20 million, is not known at this time, but is expected to occur sometime in 2026. AEA has $3.1 million in secured cost match to put towards the 15% requirement for the final allocation, additional state cost match may be required dependent on actual allocation. 1-Awarded Other Defense Community Infrastructure Pilot - National Defense Authorization Act Black Rapids Training Site $15,602,648 0% $- -$ Per email from OLDCC on 1/30, this program is not impacted by the EOs. Award effective 9/1/22. AEA partnered with GVEA. $12.6M federal receipt authority approved in FY24 and GVEA received additional $3M to bury line per DOD. Subaward issued. 1-Awarded Other Volkswagen Environmental Mitigation Trust 8,125,000$ 0%-$ -$ 9/10: Additional funds include approximately ~$425k in interest earnings. All funds have been requested and assigned to projects. Projects on-going and $ being spent down.1-Awarded DC 1592 / Bulk Fuel Storage Upgrade - Scammon Bay, Alaska 5,971,892$ 20% $2,900,000 Project scheduled to be complete in October 2025 1-Awarded IIJA Energy Efficiency Revolving Loan Capitalization Program - IIJA 40502 $4,782,480 0% $- -$ 10/2: DOE project officer approved those program changes as proposed by ASEC and AEA. MOA and RSA are in the process of being amended to reflect these changes in use of DOE program funds. AHFC initially sought to leverage the EE RLF monies to enable lower blended interest rates under its existing Energy Efficiency Interest Rate Reduction (EEIRR) program. With the subsequent loss of IIJA/IRA funds for which AHFC had intended to use as capitalization for its new green bank entity, the "Alaska Sustainable Energy Corporation" (ASEC), AHFC will now apply these EE RLF program funds to establish a new RLF within ASEC that will provide loans for residential properties to increase energy efficiency and reduce energy costs, while partnering with private capital lenders to de-risk loans. Owing to significantly increased cost for ASEC in establishing this new loan program, AEA and ASEC have re-negotiated the allocation of admin funds (10% of total award). 1-Awarded DC 1557 / Barge Headers and Fill Lines 4,201,820$ 20% $1,050,455 Identifying barge headers and lines in need of MI projects. 1-Awarded IIJA State Energy Program Funding $3,661,930 0% $- -$ Received verbal communication that grant was not paused on 3/4. On 3/10, Project Officer stated she would send an email confirming the status of the program. Award effective 7/1/22. Funding split 70% AEA and 30% AHFC. 9/10: Grant ongoing. 1-Awarded Other Fivemile Creek Hydroelectric Project: REF ($3.4M) + USDA High Energy Cost Grant ($2.8M) + DC Supplemental ($675k)3,537,626$ 0%-$ -$ Project has $3,400,000 Ref Funds IX and $5,000,000 in other grant funds direct to Chitina 1-Awarded DC 1731 / Shungnak Bulk Fuel Upgrade 3,296,032$ 50% $1,800,000 10/02: Project complete. AVEC waiting for no-build easement letter from city. 1-Awarded DC 1937 / Shageluk Bulk Fuel Upgrade 3,200,000$ $302,500 On track, award received, ANTHC/EPA funding pending. Sub-award Grant agreement pending 1-Awarded Other High Energy Cost Grant - USDA RUS - Kipnuk $3,000,000 Project plan has been submitted to the Environmental and Historic Preservation Division Intake 1-Awarded Other High Energy Cost Grants - USDA RUS - Napaskiak $2,974,420 0% $1,601,610 -$ This program is not IIJA or IRA funded. RUS funds have been expended. Construction has been completed. A final report including savings cost from the new HR system will be written in the spring after data from the winter is processed. 1-Awarded DC 1500 / Bulk Fuel Operator Training 2,255,000$ Award expires 9-30-27 and provides for Bulk Fuel Operator and Person In Charge training at AVTEC as well as itinerant BFO training by circuit riders 1-Awarded DC 1575 / Nelson Lagoon RPSU 2,085,455$ $1,950,000 10/02: Construction completed, starting closeout. 1-Awarded Other High Energy Cost Grants - USDA RUS - Manokotak $2,000,000 15% $300,000 -$ AEA received award letter on March 26, 2025. 10/02: Implementation plan approved. 1-Awarded DC 1946 / Tuluksak Rural Power System (RPSU)2,000,000$ 10% $524,000 10/02: Long lead items being procured. Construction ITB will go out to bid before end of 2025. 1-Awarded DC 1942 / Manokotak RPSU & HR 1,800,000$ 10% $2,083,377 10/02: USDA implementation plan approved. Construction out to bid before end of 2025. TOTALS REPORT LAST UPDATED: 1 of 3 Alaska Energy Authority Federal Funding Tracker Status Source Program Name Award / Request ($)Required Match (%)Required Match ($)Remaining Match Needed ($)Comments 1-Awarded DC 1515 / Circuit Rider Program 1,747,306$ $ 314,461 Ongoing Award. Federal funding has been on the decrease from the last couple of amendments but has been supplemented by State funding. Circuit Riders continue to make O&M and tech assist trips as well as provide remote assistance. 1-Awarded DC 1576 / Remote Power System Upgrade - Rampart, Alaska 1,733,740$ 20% $ 357,310 Project near completion and in warranty phase. 1-Awarded Other Vehicle Technology Office FFY 2022 (ARED) $ 1,670,000 20% $ 417,500 204,737$ 9/29/25: ARED has not been affected by any internal review processes or otherwise. This project has been progressing on schedule and on budget. Received verbal confirmation from PO and supervisor that ARED is not funded through IIJA or IRA, and not subject to the federal funding pause. Award effective 10/1/23. Partial match to be provided by site partners. 1-Awarded IIJA Energy Efficiency and Conservation Block Grant - IIJA 40552b $ 1,627,450 0% $ - -$ Received verbal communication that grant was not paused on 3/4. On 3/10, Project Officer stated she would send an email confirming the status of the program. Award effective 10/1/23. Subawards have been issued for REVEEP. 9/10: Grant ongoing.1-Awarded IRA Training for Residential Energy Contractors (TREC) - Formula Funding $ 1,293,870 0% $ - -$ 9/10: Grant ongoing. AEA received notice of award on 1/6/25. AHFC to administer the program. 1-Awarded Annual Diesel Emissions Reduction Act 2023 -2024 $ 1,230,478 50% $ 1,230,478 -$ VW and Denali Commission funds received. Pending Docusign action to add to project. EPA contact confirmed next round of DERA funding 2025 should be announced January (hopefully) 1-Awarded Annual Diesel Emissions Reduction Act 2019 -2020 $ 1,025,748 50% $ 1,025,748 -$ Award closed with EPA. All projects complete. 1-Awarded DC 1949 / Maintenance and Improvement of Rural Power Systems 1,000,000$ 25% $ 125,000 In process of determining scope for 3-4 communities. 1-Awarded DC 1890 / Napaskiak Distribution Upgrades 985,015$ 20% $ 246,288 In a holding pattern until Denali Commission grants or doesn't grant BABA waiver 1-Awarded Annual Diesel Emissions Reduction Act 2022 -2021 $ 964,479 50% $ 964,479 -$ Received email confirmation grant not paused on 3/4.1-Awarded DC 1600 / Village Energy Efficiency Program 875,000$ $ 386,767 Award expires end of the year. 1-Awarded Other USFS Community Wood Energy Grant FY 2025 $ 836,723 100% $ 915,265 $ 707,876 9/23: Award received. Funds re-design and construction of the Tok School CHP system. DC to provide match; and community applying for REF as backup. 1-Awarded DC 1830 / Kipnuk Distributions Upgrades 800,000$ 20% $ 750,000 Construction will be paid for mostly by the RUS grant. The DC award will be used as match along with state funds 1-Awarded DC 1964 / Diesel Emissions Reduction Act (DERA) Match 790,122$ $ 1,580,245 Award received and on track. 1-Awarded DC 1784 / Power Plant Operator Training 750,000$ $ 44,415 Award has been extended to 9-30-27 to continue to provide power plant operator training to rural power plant operators 1-Awarded DC 1938 / Manokotak Electric Distribution Upgrade 667,885$ 10% $ 3,404,793 10/02: USDA implementation plan approved. Construction out to bid before end of 2025. 1-Awarded DC 1950 / Bulk Fuel Maintenance & Improvement 550,000$ MI projects being addressed and future projects identified for 2026 Construction season 1-Awarded Annual State Energy Program Funding 2025 $ 515,430 0%-$ -$ 9/29: awarded1-Awarded DC 1983 / Bulk Fuel Project Development 500,000$ 0% $ - -$ 1-Awarded DC 1544 / Itinerant Utility Training 500,000$ Award expires at end of calendar year. Contractor has one more session of training scheduled in November at AVTEC. CRs will continue onsite Itinerant training until award expires. 1-Awarded Annual State Energy Program Funding 2024 $ 480,580 0%-$ -$ 9/10: grant extended to 9/30/2025. Received verbal communication that SEP Annual was not ever paused on 3/4. On 3/10, Project Officer stated she would send an email confirming the status of the program. 1-Awarded IIJA DC 1825 / Kwethluk Emergency Generators Repairs and Replacement 350,000$ 20% $ 87,500 -$ Per Denali Commission email of 2/3/25 - DC fulfilling IIJA obligations. 10/02: Construction to happen before end of 2025. 1-Awarded DC 1868 / Bulk Fuel Aggregate Study 315,000$ Project is on track for phase one, feasibility and outreach. No funding defined yet for next phases. 1-Awarded DC 1928 / Birch Creek RPSU 250,000$ $ 80,000 On track. Sub-award Grant Agreement pending. 1-Awarded Other EETF Microgrid Technology 250,000$ 50%250,000$ -$ Suspended in ASAP due to grant period ending 12/31/24. AEA will request grant modification. 9/29/2025: This project is awaiting an amendment from DOE to extend the period of performance. This amendment has been in the DOE queue since Q3 2024. AEA continues to work with DOE to progress the amendment. DOE says that the paperwork is being processed through DOE's internal channels. 1-Awarded IIJA DC 1735 / Ruby Power Plant Leveling 200,000$ 20% $ 40,000 -$ Per Denali Commission email of 2/3/25 - DC fulfilling IIJA obligations. 10/02: Working on closing out project. 1-Awarded IJA DC 1761 / Tuluksak BFU M&I 200,000$ 0% $ - -$ Per Denali Commission email of 2/3/25 - DC fulfilling IIJA obligations. 10/02: 65% design complete. 1-Awarded DC 1704 / Chalkyitsik RPSU 200,000$ 10/02: Construction documents expected by Mid-October 2025. 1-Awarded Other USFS Wood Innovation Grant FY 2025 $ 184,651 100% $ 184,651 -$ 9/29: Grant awarded. Funding to complete the engineering design for biomass systems in Elim, Galena, Glennallen, and Dillingham. 1-Awarded Other USFS Sustainable Wood Energy Systems 2022 $ 112,500 100% $ 112,500 -$ 9/10: Award extended to 9/2027 1-Awarded Other Southeast Island School District Biomass Projects 64,915$ 0%-$ -$ 9/10: Grant ongoing. 2-Conditional Award IRA Home Efficiency Rebate (formula funding) $ 37,293,071 0% $ - -$ 9/10: Still awaiting DOE applicaton review to remove conditions. On 3/10 received verbal communication that AEA should be able to draw down funds and states should reference the special terms and conditions in the agreement. Allocations published in ALRD 7/1/23. AEA received notice of conditional award for the remaining $36,358,943 on 1/15/25. Awarded early administrative funds of $934,128 on 6/1/24. AHFC will administer program. 2 of 3 Alaska Energy Authority Federal Funding Tracker Status Source Program Name Award / Request ($)Required Match (%)Required Match ($)Remaining Match Needed ($)Comments 2-Conditional Award IRA Home Electrification and Appliance Rebates (formula funding) $ 37,150,940 0% $ - -$ 9/10: Still awating DOE application review to remove conditions. On 3/10 received verbal communication that AEA should be able to draw down funds and states should reference the special terms and conditions in the agreement. Allocations published in ALRD 7/1/23. AEA received notice of conditional award for the remaining $36,222,284 on 1/16/25. Awarded early administrative funds of $928,655 on 6/1/24. AHFC will administer program. 2-Conditional Award Other High Energy Cost Grants - USDA RUS - Kipnuk $ 3,000,000 0% $ 2,421,306 -$ Application submitted 2/28 for Kipnuk upgrades. Notified of award, pending negotiations, on May 5, 2025. 3-Pending Review Other CWX-018-GDO: Collaborations Advancing Rapid Load Additions (CARLA)5,600,000$ 0%-$ -$ 9/24: In June 2025, AEA requested a concept paper to the CARLA opportunity, as funded under DOE's GDO. AEA, as suggested by the Oak Ridge National Laboratory (ORNL), intends to work in coordination with ORNL under this opportunity, leveraging ORNL's technical expertise. In July 2025, AEA submitted, at ORNL's request, a notice for TA under this opportunity in July 2025. No responses other than confirmations of submission have yet been received by AEA; the deadline for a full application for this opportunity has not yet been published. No cost match is required under this opportunity. The concept paper requested $5.6 million to fund the following activities: -Forecasting and analyzing new load to optimize existing capacity -Scenario modeling for infrastructure needs and interconnection pathways for new large load applications -Developing a roadmap for siting processes tailored to regional contexts -Designing equitable cost allocation for off takers, including rate payers, and cost recovery mechanisms for utilities 5-Program Paused Other WaterSMART Grants: Water and Energy Efficiency Grants for FY2024 & 2025 Bureau of Reclamation No. R24AS00052 $ 5,000,000 100% $ 5,000,000 $ 5,000,000 10/2: AEA applied for part of the Dixon Diversion Project in Nov 2024. Match not appropriated at this time but source of match is identified. Notified in April 2025 that the funding opportunity is paused and the timeline for notification of awards is delayed. As of 10/2, opportunity is still paused, with application status listed as "Agency Tracking Number Assigned", updated as of Nov 21 2024. 4-Application in Progress Other DOE Request for Information: Speed to Power -$ 0 -$ -$ AEA internally coordinating a response to RFI issued by DOE GDO on large scale generation, transmission, and grid infrastructure projects that can accelerate Alaska's adoption and intergration of high-energy load centers (i.e., AI infrastructure, data centers, cloud computing, etc...). Deadline for responses: November 21, 2025. 3-Pending Review Other Technical Assistance Request: Cost allocation / recovery methodolgy design for AEA owned assets under RTO's OATT.-$ 0 -$ -$ 10/15: On 10/14, AEA submitted an application to a Technical Assistance (TA) offering made availalble to State Energy Offices by a collaborative effort of the National Energy Laboratories. AEA applied for TA relating for assistance in devising a methodology in order to appropriately allocate and recover those costs of operating AEA's exsiting and future owned assets under the Railbelt Transmission Organization's (RTO) Open Access Transmission Tariff (OATT), such as the CIPLink, Beluga- Healy transmission, and the Alaska Intertie. No cost match is required for this TA offering. TA applications are accepted on a rolling basis and the TA "expert match" category under which AEA applied offers up to 100 hours of technical expertise from assigned laboratory staff. 8-Terminated IRA Greenhouse Gas Reduction Fund - Solar For All Competition - IRA 134a $ 62,450,000 0% $ - -$ Termination notice received 8/7/25, proceeding with closeout; Received email 2/21 informing grantees that they may resume drawing down resources in ASAP and project officers will reengage with grantees; 2/24 ASAP account now “open”, and we were able to submit a reimbursement request; 2/28 Met with SFA project officer, and he reiterated we have access to the funds via ASAP and strongly suggested we continue work; Award effective 12/10/24. 8-Program Cancelled IJA Energy Improvements in Remote and Rural Areas 11,800,000$ 5-20%623,000$ -$ 10/2: DOE OCED office issued email in June 2025 stating that the program is cancelled owing to change in Agency priorities. 4 concept papers submitted by AEA in Feb 2025 for Tok school biomass; Nome joint utility systems solar; rural power systems; and Bethel-Oscarville line upgrade. 6-Application Not Selected IIJA Transmission Acceleration Grants (TAG) Program $ 2,731,311 0% $ - -$ On 9/3/25 AEA was notified that its application was not selected for award under TAG program. AEA submitted a grant request under the TAG program for transmission planning and siting studies related to Beluga & Healy redundant transmission line projects. 7-Program Suspended Other Energy Future Grant $ 496,725 0%-$ -$ 10/2: Message from DOE on 4/23/2025 stated majority of federal program staff had opted for deferred resignation program. Message from NASEO on 8/27/2025 stated that this is not a priority program from DOE and federal House appropriations committee did not include funding, so unlikely to make it out of Senate with funding for FY2026. Additionally, DOE leadership may rescind the funding included in the FY2025 continuning resolution for the program. Program very unlikely to proceed, but no official notice cancellation yet received.9-Complete-close out Other USFS Sustainable Wood Energy Systems 2019 $ 310,000 100% $ 155,000 -$ 9/10: In the process of being closed. 3 of 3 MEMORANDUM TO: AEA Board of Directors Through: Curtis Thayer, Executive Director FROM: Ryan McLaughlin, PE, Senior Infrastructure Engineer DATE: October 16, 2025 RE: Bradley Lake Expansion Project Update Engineering Design and licensing efforts are ongoing, with a target submittal of the Draft License Amendment Application by January 2026. To ensure consistency and clarity throughout the FERC licensing documents, design deliverables, and environmental reports, the overall project will be called the “Bradley Lake Expansion Project” and sub-projects defined as follows: Bradley Lake Expansion Project o Dixon Diversion  Diversion dam and tunnel inlet portal features  Diversion tunnel  Diversion tunnel exit portal features  Exit portal access road o Bradley Pool Raise  Spillway crest raise  Dam crest raise Crews and equipment mobilized to Bradley by barge last month to begin drilling and geophysics at Bradley Dam. Drilling was conducted as per the Drilling Plan Program approved by FERC and the Board of Consultants. 9 boreholes were planned to be drilled through and around Bradley Dam to set up monitoring, test stability, and collect samples of embankment material. Due to a variety of operational issues and time constraints, not all the planned holes were drilled; however at least one hole was drilled in each of the critical areas. Demobilization is expected sometime during the week of October 20th, pending length of time to complete BH-02. 100% of the geophysics scope was completed with surveys taken at the Bradley Dam and Dixon Diverison. Drilling on Bradley Dam Crest AEA and DOWL were onsite 9/17-18 to complete annual operator training and safety inspection of the Bradley Dam. This site visit also included a trip to the Dixon Diversion Dam site for the project engineers to evaluate current design against site conditions. The next Board of Consultants meeting has been scheduled for October 29th and 31st. This meeting will review results from the PMP/PMF study, initial subsurface investigation results, seismic stability analysis, and a design package review. The PMP/PMF work is ongoing, but initial results suggest PMP is slightly lower and PMF is slightly higher (larger drainage area) compared to the original studies done in the 80’s. AEA submitted an Inflow Design Flood recommendation (IDF) to FERC for the future Dixon Diversion Dam. This was done using a conservatively estimated 100-year flood of 7,900 cfs. 100-year flood is a common IDF for low-hazard dams, AEA is waiting on FERC acceptance of the low-hazard classification for the Dixon Diversion Dam. Battle Creek Diversion and Bradley Dam are both low-hazard, no structures or populations below the Dixon Diversion Dam, so it is expected that the Dixon Diversion Dam will be low-hazard. The design for 3-phase power from Bradley powerhouse to the dam is at 65%. EPS is on track to complete the design and bid package by next summer in order purchase cable and transformers in time for shipment and delivery for a summer 2027 install. Transformers will have to be ordered as soon as possible as that is the longest lead item. A decision has been made to fully line the Dixon Tunnel. This will have minimal cost impact to the project compared to previous cost estimates, improve worker safety (24/7/365 operations inside tunnel), improve hydraulics (no chokepoints), and reduce construction risk (many sections may need lining anyway). A design criteria has been established for a 14’ minimum finished inside diameter tunnel (16’ tunnel w/ 1’ concrete liner) which will provide up to 1650 cfs of flow. This balances cost of a larger tunnel vs additional capacity of higher future flows. Environmental Aquatic, terrestrial, and cultural resources studies and summer 2025 field season is complete as per approved Study Plan. This is the final summer of environmental studies. An August 29th stream gaging trip had the highest spot measurement of discharge recorded on Martin River – 2490 cfs at the constriction. This will be very useful in continuing to build out the stage-discharge relationship on the Martin River as many measurements have been collected at mid flows, few at high flows. ADFG counted 1479 sockeye through Red Lake, the highest count in three years of monitoring. On October 3rd, AEA conducted a site visit with agency folks from ADF&G to view the Bradley Project, Dixon Diversion area, and Martin River. Landing Zone: low vs high flow 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 Thayer, Executive Director FROM: Jim Mendenhall, P.E., Interim Director of Owned Assets DATE: October 16, 2025 SUBJECT: Owned Assets Update Cook Inlet Power Link On August 15, 2025, AEA received an email stating that “The DOE is working to complete the data review process as expeditiously as possible and will be in contact as soon as possible.”. It is our understanding that no public announcements will be made until all project reviews are complete and grantees have been formally notified of DOE’s decision. On October 9, 2025, DOE announced the termination of 223 projects, rescinding more than $7.5 billion in previously allocated funding. AEA’s GRIP project was not included in this announcement. As a result of the ongoing DOE review process, project negotiations have been temporarily paused. Following submission of AEA’s “Go” recommendation for the Go/No-Go decision point milestone at the conclusion of Budget Period 1a, AEA was unable to execute an amendment to initiate Budget Period 1b activities. DOE project staff have indicated their concurrence with AEA’s “Go” determination and anticipate executing the project amendment in Q4 2025, pending an official determination by DOE. AEA determinied that it was necessary to continue advancing project activities absent the project amendment and therefore authorized two task orders: 1. Environmental Review: Following submission of the Data Request package, a NEPA Environmental Questionnaire package was provided to DOE in support of the Budget Period 2 scope of work. A Categorical Exclusio determination was issued within ten days, enabling environmental and fieldwork activities to proceed in Summer 2026. AEA subsequently issued a Notice to Proceed to HDR to complete the environmental work scheduled for next summer. 2. Development of Major Equipment Procurement Documents: AEA issued a Notice to Proceed to Stantec to assist with planning, solicitation, and procurement contracts for major project components, specifically the HVDC converters and HVDC cables. These components are expected to have extended lead times, potentially spanning several years. This task will build upon prior efforts, including Alaska Energy Authority Page 2 of 3 preliminary design, cost estimates, and project schedule development (Task 1). Key activities under this NTP will include: • Determining the contracting strategy for HVDC cables and converters; • Preparing and issuing a solicitation of interest or Request for Information to prospsective suppliers; and • Obtaining budgetary pricing, preliminary delivery schedules, and technical specifications. AEA has secured $64.2 million in combined state appropriations and Bradley bond proceeds and is seeking an additional $142.3 million to fully meet federal cost-share obligations. To date, $1,441,881 has been expended on the project. Transmission Upgrades - Sterling to Quartz Creek (SQ) Background • Overall length of the SQ Line is 39 miles. • Prior to AEA’s acquisition of the SQ Line it was owned by Homer Electric Association. • This section was damaged in 2019 during the Swan Lake Fire, and was unusable. • The Alaska Energy Authority's acquired the line in late 2020 to repair it, and enable future upgrades. Specific benefits include: better cost alignment for customers, increased reliability, and future prospects for upgrades to decrease line losses and allow more power transmission from Bradley Lake. The SQ Line was identified as Required Project Work under the Bradley Power Sales Agreement. As such, it is deemed a critical component of the interconnected Railbelt transmission system, needed to ensure the consistent delivery of low-cost, renewable hydroelectric power from the Bradley Lake Hydroelectric Project to population centers. • The SQ Line is currently being upgraded from 115kV to 230kV standards to increase its capacity and resilience. • Bradley Lake hydro has a nameplate generating capacity of 120MW. However, the maximum transfer capacity on the SQ line is significantly less. The reason for the limitation is that the current transmission system is limited to an absolute maximum of 75MW for thermal over load and stability limitations. Note: At 75MW of power transfer, losses are ~10%. SQ Project updates • The project is broken into three phases o Each of the projects needs to have approximately a 40-day outage of the transmission line. o Phase 1 -The section is the 8 miles between Sterling and Johns Road and was completed during the winter of 2024/2025. Field conditions for Phase 1 were difficult due to the warm weather and required ground matting to support the equipment. The section was as completed and energized to 115kV on February 28, 2025 Alaska Energy Authority Page 3 of 3 o Phase 2 – Will upgrade 17 miles through the Kenai National Wildlife Refuge. This section will be constructed in the winter 2026/2027. When complete it will be energized to 115kV. o Phase 3 (previously 3 & 4) – Will upgrade 14 miles from The Russian River to the Quartz Creek Substation (CEA). This section will be constructed during the winter 2028/2029 • Once all 3 projects are completed and CEA completes the upgrades between Quartz Creek to Anchorage, HEA completes the SS (Soldotna-Sterling) and all upgrades at substations are complete the entire circuit will be energized to 230kV. Railbelt Strategic Transmission Plans AEA, in cooperation with the Railbelt utilities, has completed the Railbelt Strategic Transmission Plan, which includes the HVDC line (CIPLink). This study is based on the load forecasts recently built by ACEP and NREL. AEA is currently preparing a public facing report on the study as well as developing a communications plan to get the study out to the public and policy makers in time for the January legislative session. Battle Creek Subsidies from IRS (Verbal Update) Active Denali Commission Awards 10/15/2025Award No / Project NameDC FundingPerf Period Beginnng Perf Period End Recent Actions Estimated Jobs CreatedPermanent Jobs CreatedDC 01474 Chlkytsk BF (Des/F)(Con 87F/13S)-6/30/25517,500.00 6/16/2015 6/30/2025 None152DC 01485 START Communities Tech Assist 6/30/25375,000.00 11/1/2015 6/30/2025Canceled by DOGE 20DC 01500 BF Operator Training - 09/30/20252,255,000.009/1/2016 9/30/2027Increased 270,00030DC 01515 Circuit Rider Program (83F/17S)-12/31/251,747,306.261/1/2017 12/31/2026Increased 175,000200DC 01516 RPS Maint & Improvements-12/31/24748,776.00 10/1/2016 3/31/2026Extended to 3/31/2026200DC 01523 Misc Small Maint & Improv Prjs - 12/31/252,945,000.22 6/1/2017 12/31/2025None30DC 01544 Itinerant Utility Training-12/31/25500,000.00 3/1/2018 12/31/2025None200DC 01548 RPSUMaint&Improvent Prg 76F/24S 12/31/25 3,540,000.00 5/1/2018 12/31/2025None52DC 01551 Venetie RPSU (76F/24S) 12/31/252,250,000.00 5/1/2018 12/31/2025Closed 6/26/2025600DC 01557 BargeHeaders&Fill Lines(80F/20S)-12/31/253,976,820.00 10/1/2018 12/31/2025Increase funding to 4,201,820.0052DC 01575 RPSU Nelson Lgn 12/31/26 45F/55S1,585,455.00 8/1/2019 12/31/2026Increased funding to 2,085,455262DC 01576 RPSU Upgrade Rampart Design 12/31/251,733,740.00 8/1/2019 12/31/2025None355DC 01577 RPSU Napaskiak - 12/31/25335,455.00 8/1/2019 12/31/2025None 30DC 01592 Scammon Bay BF-12/31/26 56F/44S1,200,000.00 2/17/2020 12/31/2026Increased funding to 5,971,891.53652DC 01600 VEEP-Statewide 85F/15S - 12/31/25875,000.00 6/15/2020 12/31/2025None02DC 01618 Fivemile Creek Hydro - 45F/55S 9/30/272,880,000.00 9/1/2020 9/30/2027None40DC 01628 Craig High Sch Biomass(89F/11S)-6/30/2026440,417.00 11/1/2020 6/30/2026Canceled by DOGE 200DC 01645 O&M Manual Conversion&Training-12/31/2575,000.00 4/1/2021 12/31/2025None52DC 01646 Bulk Fuel Inv&Assess-12/31/25 (70F/30S)1,230,000.00 4/1/2021 12/31/2025None603DC 01704 Chalkyitsik RPSU CDR - 12/31/25200,000.00 10/1/2022 12/31/2026None50DC 01731 Shungnak BFU 1/1/23 - 12/31/24 (65F/35S)3,296,032.04 1/1/2023 12/31/2025None30DC1771 Dist Sys Inv & Asses Stw (52F/48S) 12/31/25267,051.64 4/1/2023 6/30/2026None51DC 01735 Ruby Powerhouse Lvlg 80F/20S 12/31/25200,000.00 1/15/2023 12/31/2025Extended to 12/31/2581DC 01761 Tuluksak BFU M&I 20F/80S 12/31/24200,000.00 1/15/20231/3/2025Extended 12/31/202630DC 01767 AVTEC Powerplant Lab Upgr 77F/23S 9/25250,000.00 5/1/2023 9/30/2025Closing in progress 200DC 01784 Power Plant Operator Training 9/30/26750,000.007/1/2023 9/30/2026Increased 300,000.00 302DC 01825 Kwethluk Emer Gen Repair&Replace 80F/20S350,000.00 12/15/2023 6/30/2025Extended to 6/30/202620DC 01830 Kipnuk Distribution Upgrades 62F/38S800,000.00 12/1/2023 3/31/2026None50DC 01832 Rampart Elec Dist and Heat Rec 82F/18S784,982.00 12/1/2023 12/31/2027None100DC 01868 Bulk Fuel Aggregation Study250,000.00 6/1/2024 12/31/2027None200DC 1946 Tuluksak RPSU2,000,000.00 12/1/2024 12/31/2027New 600DC 1949 M&I RPSU 1,000,000.00 12/1/2024 6/30/2027New 200DC 1950 M&I BFU 550,000.00 12/1/2024 12/31/2026New 200DC 1964 MKEC DERA 790,122.00 6/1/2025 12/31/2027New 20DC 1983 Bulk Fuel Project Development500,000.00 8/1/2025 12/31/2025New 100DC 1890 Napaskiak Distribution Upgrade 985,015.00 12/1/2024 9/30/2027None 100DC 1937 Shageluk Bulk Fuel upgrade 3,200,000.00 3/1/2025 3/30/2027New 300DC 1938 Manokotak Dist. Upgrade 667,885.00 3/1/2025 12/31/2027New 60DC 1942 Manolotak RPSU1,800,000.00 3/1/2025 12/31/2027New 140DC 1911 Dual Use and Analysis10,000.00 1/20/2025 6/30/2025Closed 6/26/202500DC 1928 Birch Creek 250,000.00 12/1/2024 3/31/2026Extended20Prior Report Updated 10/15/25Total Funding for Active DC Awards: $43,575,016.90 48,311,557.16Less Total Spending on Active DC Awards:31,210,470.32 $28,426,298.10Total Funding on Active DC Awards:$12,364,546.60 $19,885,259.01 Independent Auditors Report The Board of Trustees Alaska Permanent Fund Corporation and The Board of Directors Alaska Energy Authority: 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, 2025 and 2024, and the related statements of changes in net position for the years 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, 2025 and 2024, and the changes in its financial position for the years then ended in accordance with U.S. generally accepted accounting principles. Basis for Opinion We conducted our audits 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 to the financial statements, 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, 2025 and 2024, or the changes in its financial position for the years 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 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 the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 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. 2 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 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 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 is not affected by this missing information. Anchorage, Alaska September 3, 2025 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 W. Thayer, Executive Director FROM: Chris McConnell, Rural Programs Manager DATE: October 22, 2025 SUBJECT: Typhoon Hylong and other Emergencies Update It has been a busy month for AEA's Circuit Riders. Within a single week we declared emergencies in the communities of Akiak and Metarvik. AEA's immediate response to the Metarvik emergency required approximately $65k in resources, technical assistance and coordination amongst community leadership, the utility and contractors. Power was fully restored in Metarvik within a week of the Emergency declaration. In Akiak, AEA contributed approximately $20k in Circuit Rider time and freight assistance. The community of Akiak is currently relying on backup generation outside the powerhouse, with power estimated to be restored this week. AEA continues to coordinate with Akiak City and Tribal leadership to establish a pathway to prevent future maintenance failures and operator issues. Critical help was also provided to the communities of Adak and Tuluksak this month. Adak lost all power for several days. AEA barged a generator to the Aleutians to ensure reliable backup generation while major repairs are completed. Tuluksak recently lost thier stand-by generator, and the load demand of a new community waterplant necessitated the barging out of an additional backup AEA generator to help avoid catastrophic failures during the coming winter months. In the aftermath of Typhoon Halong, AEA's Circuit Riders and Rural Energy Group have been uniquely positioned to provide federal and state partners with updates and detailed report outs on the condition of generation, distribution and bulk fuel infrastructure throughout rural Alaska. Many of the operators, managers and community leaders struggling to keep save thier communities have working relationships with AEA staff and a high degree of confidence that they are talking to the right people when they are talking to AEA. 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 10, 2025 TO: Alaska Energy Authority – Board of Directors THROUGH: Curtis Thayer, Executive Director FROM: Audrey Alstrom, Director – Renewable Energy and Energy Efficiency SUBJECT: Renewable Energy and Energy Efficiency (REEE) Program Update Electric Vehicles National Electric Vehicle Infrastructure (NEVI) Program Funding Agency: Federal Highway Administration (FHWA) Total Budget: $52,415,294 Status: Active Scope: Construct EV fast-charging stations along federally designated highway corridors in compliance with 23 CFR 680 standards. Update: In August, the Federal Highway Administration (FHWA) issued new guidance for the NEVI program, triggering a 30-day deadline for AEA and the Department of Transportation and Public Facilities (DOT&PF) to submit an updated NEVI plan to the FHWA division office. AEA and DOT&PF were able to complete and submit an updated plan by September 9. The updated plan outlines how Alaska’s NEVI funds from FY22 – FY26 will be allocated, incorporates a community engagement outcomes report, and discusses site physical security and cybersecurity. FHWA approved the plan for implementation on October 10, 2025. With this approval, FY26 funds are now available for obligation, and AEA and DOT&PF are moving forward with project activities. Alaska Rural EVSE Deployment (ARED) Project Funding Agency: U.S. Department of Energy (DOE), Vehicle Technologies Office Total Budget: $2,087,479 Status: Active Scope: This project supports the expansion of electric vehicle charging infrastructure across rural Alaska through community outreach, technical assistance, site host training, and installation of EVSE. Update: AEA is engaging with rural communities and organizations to identify viable sites for EVSE deployment. Outreach and planning are underway with the following communities: Unalaska, Dillingham, Valdez, Homer, Tok, Cordova, Hope, Moose Pass, Kotzebue, Sitka, Skagway, Bethel, Utqiagvik, and Kodiak. Construction is planned for Delta Junction and Glennallen with ReCharge Alaska. AEA is planning to host operations and maintenance training for site hosts in January 2027. Alaska Energy Authority Page 2 of 5 Alaska Electric Vehicle Working Group AEA continues to lead the Alaska Electric Vehicle Working Group (AKEVWG), a forum for convening stakeholders to advance EV infrastructure planning and share information across the state. The group met this past quarter to give an update on NEVI, the NEVI plan, and upcoming outreach activities. Solar State of Alaska Solar for All (AKSFA) Funding Agency: Environmental Protection Agency (EPA) Budget: $62,450,000 Status: Closing Scope: Community solar and residential, rooftop solar projects throughout Alaska. Funds are split with AHFC. Update: In August, AEA was informed by the EPA that the Solar for All program was being terminated nationwide, including our SFA grant award. Staff are working through the closeout process and have until December 5 to complete and submit the closeout documents. Energy Efficiency and State Energy Program (SEP) AEA’s Energy Efficiency Program delivers statewide technical assistance, outreach, education, and grants focused on energy efficiency and awareness. AEA receives annual formula funding through the federal State Energy Program (SEP), which is split 50/50 with the Alaska Housing Finance Corporation (AHFC) for their residential applications. Under the Infrastructure Investment and Jobs Act (IIJA), AEA received and distributed one-time SEP-BIL funds to support program development and execute strategies outlined in the Alaska State Energy Security Plan and the Energy Security Task Force Report. Through the IIJA-funded Energy Efficiency and Conservation Block Grant (EECBG), AEA expanded RE-VEEP by sub-awarding 86 percent of the overall award to eight rural projects that are currently implementing efficiency upgrades in their communities. We are currently planning the allocation of the remaining funds for REVEEP. Last year, AEA secured roughly $1.8 million in early administrative funding for the Home Efficiency Rebates (HER) and Home Electrification and Appliance Rebates (HEAR) grants; the full awards (~$74.5 million) have now been conditionally approved, and AEA, alongside AHFC, submitted final applications in early 2025 to lift those conditions and currently awaits DOE’s determination. AEA was also awarded a Training for Residential Energy Contractors (TREC) formula grant and has executed agreements with AHFC to subcontract those programmatic activities. AHFC is working with AVTEC and CCHRC to develop and deliver training materials to support the energy audit and installation work required under the HER and HEAR programs. Alaska Energy Authority Page 3 of 5 PY25 SEP Formula (Annual) Funding Agency: DOE Budget: $515,430 Status: Active Scope: Program management and development, outreach and education, building monitoring, data management & analysis, rater and inspector training. Funds are split with AHFC. Update: The PY25 SEP award was received in September and AEA’s portion of funds will support management and improvement of the AEA data library, as well as continuation of energy efficiency outreach and education through programs such as REAP’s power pledge challenge and AEA’s Energy Efficiency Partnership. The PY24 award is complete and in the process of being closed. SEP-BIL Alaska Funding Agency: DOE Budget: $3,661,930 Status: Active Scope: Energy construction projects, energy program development, energy security plan development, training and workforce development, outreach and education, grid planning, state energy plan, AKWarm. Funds are split with AHFC. EECBG Funding Agency: DOE Budget: $1,627,450 Status: Active 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. Home Efficiency Rebates Funding Agency: DOE Early Admin Budget (fully awarded): $934,127.96 Full Budget (awarded but conditioned): $37,293,071, including early admin Status: Active 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. AHFC to implement. Home Electrification and Appliances Rebates Funding Agency: DOE Early Admin Budget (fully awarded): $928,655.94 Full Budget (awarded but conditioned): $37,150,940 including early admin Status: Active Alaska Energy Authority Page 4 of 5 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. AHFC to implement. Training Residential Energy Contractors – Formula Funding Agency: DOE Budget: $1,296,870 Status: Active 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. AHFC to implement. Biomass The Biomass Program continues to help develop biomass energy projects in Alaska that focus on utilizing organic material as a feedstock, including landfill gas to energy projects, community-scale district heating loops, and combined heat and power. AEA staff continue to co-lead the Alaska Biofuels Advisory Group with DOT&PF, and the Alaska Wood Energy Development Task Group to conduct prefeasibility studies, system design, technical assistance, operator training, and outreach. In September 2025, AEA was awarded two biomass grants from the United States Forest Service (USFS). 2022 – Wood Innovations Grant Funding Agency: United States Forest Service (USFS) Budget: Federal – $112,500; State – $112,500 Status: Active Project Scope: Provide operator training, technical assistance, and O&M training. Update: In August, the biomass program supported the 2025 Cordwood Boiler Train-the-Trainer program in Thorne Bay, hosted by the Southeast Island School District. 9 participants received the training. 2025 – Wood Innovations Grant Funding Agency: United States Forest Service (USFS) Budget: Federal – $184,650.50; State – $ 184,650.50 Status: Active Scope: Conduct engineering design for cordwood biomass systems in Dillingham, Galena, Glennallen, and Elim. These four communities were selected as the best candidates for biomass systems following prefeasibility studies funded by the FY 2019 Wood Innovations Grant. In collaboration with the Alaska Wood Energy Development Task Group, AEA will establish a strategic alignment team to support and engage communities in overcoming market barriers and stimulating the expansion of wood energy. Alaska Energy Authority Page 5 of 5 Update: AEA received the award in September and is in the process of developing the internal project management plan. 2025 – Community Wood Grant Funding Agency: United States Forest Service (USFS) Budget: Federal – $836,723; State – $836,723; Community Match – $78,540 Status: Active Scope: AEA, in partnership with the Alaska Gateway School District (AGSD) and General Electric (GE) Vernova, will modernize and expand the woodchip-fired combined heat and power (CHP) system. The redesigned system will integrate with GE Vernova’s solar photovoltaic array, battery energy storage system (BESS), and multi-port converter to create a secure, reliable, and independent energy system. Update: AEA received the award in September and is developing the internal project management plan. Alaska Division P.O. Box 21648 Juneau, AK 99802-1648 October 10, 2025 (907) 586-7418 (907) 586-7420 www.fhwa.dot.gov/akdiv Ryan Anderson, P.E. Commissioner Alaska Department of Transportation and Public Facilities 3132 Channel Drive Juneau, AK 99811 Subject: Approval of Alaska Electric Vehicle Infrastructure Deployment Plan Dear Commissioner Anderson: The Federal Highway Administration (FHWA) has completed the review of the Alaska Electric Vehicle Infrastructure Deployment Plan required under the National Electric Vehicle Infrastructure (NEVI) Formula Program. Based on the review, FHWA has determined that the Alaska Electric Vehicle Infrastructure Deployment Plan is approved for implementation. With this approval, Fiscal Year 2026 funds are now available to Alaska for obligation. This year, States were required to submit a State EV Infrastructure Deployment Plan that included three key components: (1) a description of how NEVI Program funds will be used for each fiscal year, covering all unobligated funding from FY 2022–2026; (2) a Community Engagement Outcomes Report in accordance with 23 CFR 680.112(d); and (3) a description of physical and cybersecurity strategies as outlined in 23 CFR 680.106(h). Our review was limited to evaluating the Plan against these specific criteria. The State's Plan met all required components. A publicly accessible version of the Alaska Electric Vehicle Infrastructure Deployment Plan should be posted to the Alaska Department of Transportation’s website. Sincerely, Randy Warden Division Administrator FHWA Alaska Division Enclosures: 2 Cc: Emily Haynes, Engineering and Operations Team Leader, FHWA Pauline Chandler, Acting Financial Manager & Admin Team Leader, FHWA Christina Mounce, Environmental Program Manager, FHWA Adam Moser, Program Manager Chief, DOT&PF Lauren Little, P.E., Chief Engineer, DOT&PF Katherine Keith, Deputy Commissioner, DOT&PF “Keep Alaska Moving.” Department of Transportation and Public Facilities OFFICE OF THE COMMISSIONER P.O. Box 112500 Juneau, Alaska 99811-2500 Main: (907) 465-3900 dot.alaska.gov September 9, 2025 Mr. Randy Warden Alaska Division Administrator Federal Highway Administration P.O. Box 21648 Juneau, AK 99802-1648 Dear Mr. Warden: On behalf of the Alaska Department of Transportation and Public Facilities and the Alaska Energy Authority, we are pleased to submit Alaska’s revised National Electric Vehicle Infrastructure (NEVI) Plan for Fiscal Year 2026. This update incorporates the latest program guidance issued by the Federal Highway Administration and sets forth Alaska’s priorities for advancing a reliable and accessible EV charging network across the state. We respectfully request your review and approval of the FY26 NEVI Plan. Sincerely, Katherine Keith Deputy Commissioner Alaska Department of Transportation and Public Facilities State of AlaskaElectric Vehicle InfrastructureImplementation Plan FY26 ii Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Plan Development This plan was developed by the Alaska Energy Authority, Alaska Department of Transportation and Public Facilities, electric vehicle stakeholders, utilities, communities, and residents, with the assistance of Michael Baker International. Executive Oversight Curtis Thayer, Executive Director, AEA Ryan Anderson, PE, Commissioner, DOT&PF Katherine Keith, Deputy Commissioner, DOT&PF Staff Audrey Alstrom, PE, Director of Alternative Energy and Energy Efficiency Programs, AEA Josi Hartley, Renewable Energy and Energy Efficiency Manager, AEA Adam Moser, Program Development Chief, DOT&PF Support Jeff Kupko, PE, PTOE, Consultant Project Manager, Michael Baker International Karin McGillivray, Public Engagement Manager, Michael Baker International Jennifer Gross, GIT Supervisor, Michael Baker International Caitlin Frye, Communications Specialist, Michael Baker International Malia Walters, Communications Specialist, Michael Baker International Cover Photo: Ford F-150 Lightning in Kotzebue. Courtesy Tim Leach / Launch Alaska iii Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Acronyms AEA Alaska Energy AuthorityAFC Alternative fuel corridor AKEVWG Alaska EV Working GroupAMHS Alaska Marine Highway SystemAPI Application programming interfaceARED Alaska Rural EVSE DeploymentBIL Bipartisan Infrastructure LawCCS Combined Charging SystemCFR Code of Federal RegulationsCHAdeMO CHArge de MOve ProtocolCISA Cybersecurity and Infrastructure Security AgencyCVEA Copper Valley Electric AssociationDCFC Direct current fast chargingDOT&PF Department of Transportation & Public Facilities EV Electric vehicleEVSE Electric vehicle supply equipment FHWA Federal Highway AdministrationICE Internal combustion enginekW KilowattkWh Kilowatt-hourMW MegawattNACS North American Charging StandardNEVI National Electric Vehicle InfrastructureNHS National Highway SystemPCI-DSS Payment Card Industry Data Security StandardPKI Public Key Infrastructure PII Personally identifiable information RFA Request for ApplicationsSTIP Statewide Transportation Improvement Program SUV Sport utility vehicleUSC United States Code USDOT United States Department of Transportation iv Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Table of Contents Introduction ������������������������������������������������������������������������������������������������������������������������������������������������1 NEVI Program Obligated Funds To Date & Distribution ����������������������������������������������������������������������3 AFC Corridor Designation .......................................................................................................................................................4 AFC Corridor Procurement .....................................................................................................................................................4 Independent Site Deployment ...............................................................................................................................................6 Charging Station Spacing ........................................................................................................................................................7 Plan to Deploy Unobligated Funds ......................................................................................................................................8 AFC Sites ..................................................................................................................................................................................8 Developing Alaska’s Phase 2 Approach .........................................................................................................................8 Phase 2 Funding ...................................................................................................................................................................9 Summary ....................................................................................................................................................................................10 Appendices ................................................................................................................................................................................10 Community Engagement Outcomes Report �����������������������������������������������������������������������������������������11 Plan Outreach ............................................................................................................................................................................11 Targeted Workshops .................................................................................................................................................................11 Alaska EV Working Group ......................................................................................................................................................12 Alaska EV Working Group Technical Sessions ...................................................................................................................14 Monthly Newsletter .................................................................................................................................................................15 Community Surveys ................................................................................................................................................................17 Outreach Outcomes ................................................................................................................................................................18 Physical Security & Cybersecurity ����������������������������������������������������������������������������������������������������������19 Physical Security .......................................................................................................................................................................19 Cybersecurity ............................................................................................................................................................................19 Appendix A: Existing Conditions ������������������������������������������������������������������������������������������������������������A1 Appendix B: Trends Evaluation ���������������������������������������������������������������������������������������������������������������B1 v Alaska Electric Vehicle Infrastructure Implementation Plan FY26 List of Figures Figure 1. Alaska’s AFC. ..................................................................................................................................................................4 Figure 2. Charging sites selected during Phase 1 of NEVI rollout in Alaska. ..................................................................6 Figure 3. Newsletter stats. ..........................................................................................................................................................16 Figure 4. Outreach participant locations. ..............................................................................................................................17 Figure 4. Alaska’s transportation network. ............................................................................................................................A3 Figure 5. Alaska’s AADT. .............................................................................................................................................................A4 Figure 6. EV growth scenarios. ................................................................................................................................................B2 Figure 7. EV registration by manufacturer. ...........................................................................................................................B4 Figure 8. EV registration by region. ........................................................................................................................................B4 Figure 10. Statewide BEV and PHEV registration numbers. .............................................................................................B5 Figure 9. Year-over-year growth of EVs by region. .............................................................................................................B5 List of Tables Table 1. FY 2022-2026 NEVI formula program annual allotments. ...................................................................................3 Table 2. Public survey results about preferred site spacing.................................................................................................7 Table 3. Expenditure of FY22 funding. .....................................................................................................................................8 Table 4. Balance of FY22 funding that will apply to Phase 2 and FY23-26 funds. .......................................................9 Table 5. Targeted Workshops ....................................................................................................................................................12 Table 6. Working Group Meetings ...........................................................................................................................................13 Table 7. AKEVWG Technical Sessions ......................................................................................................................................14 Table 8. AEA Newsletters ...........................................................................................................................................................15 Table 9. Community Surveys .....................................................................................................................................................17 Table 10. Grid capacity. ...............................................................................................................................................................A6 1 Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Introduction The Infrastructure Investment and Jobs Act (IIJA) of 2021 offers a unique funding opportunity to advance a statewide electric vehicle (EV) fast charging network and community-based charging installations in urban and rural areas throughout the state. The National Electric Vehicle Infrastructure (NEVI) formula program will provide $5 billion over five years for states to build electric vehicle service equipment (EVSE) charging stations along highway corridors. NEVI goals for the EVSE network include being reliable, affordable, and seamless between states and networks ensuring consistent service for drivers to support Alaska’s mobility and economic needs. Through the IIJA NEVI Formula Program, Alaska will receive more than $50 million over five years. The Federal Highway Administration (FHWA) requires states to submit an implementation plan to be eligible for these funds. The Alaska Energy Authority (AEA or The Authority) and the Alaska Department of Transportation and Public Facilities (DOT&PF) have worked with partners and stakeholders to develop the state’s Electric Vehicle Infrastructure Implementation Plan (The Plan) and will continue to gather feedback and update The Plan over the coming years. NEVI program funds will be received by DOT&PF and administered by AEA for the duration of the program. The Plan outlines a strategy for using the NEVI formula funds to deliver EV charging infrastructure that will enable light-duty EV travel and provide confidence when commuting throughout the state for work, recreation, and tourism. The Plan was developed in coordination with State agencies, local governments, utilities, and other stakeholder groups in Alaska. This Plan supports the goals and objectives of the State’s This Plan outlines a strategy for using NEVI formula funds to deliver EV charging infrastructure that will enable light-duty EV travel and provide confidence when commuting throughout the state for work, recreation, and tourism� 2 Introduction Alaska Electric Vehicle Infrastructure Implementation Plan FY26 long-range transportation plan. Programs and projects funded through the NEVI program will follow United States Department of Transportation (USDOT) and FHWA regulatory requirements and will be included in DOT&PF’s Statewide Transportation Improvement Plan. AEA and DOT&PF will strategically manage the NEVI funds to deploy publicly accessible EVSE. The guidance requires designated alternative fuel corridors of the National Highway System to be fully “built out” and approved by FHWA with guidance coming from the USDOT/Department of Energy Joint Office of Energy and Transportation (Joint Office). Alaska currently has one pending Alternative Fuel Corridor (AFC), located between Anchorage and Fairbanks. After AEA and DOT&PF determine that the AFC is fully built out and certified by FHWA, AEA and DOT&PF plan to install Direct Current Fast Charging (DCFC) and Level 2 charging stations throughout the rest of the state as funding allows. • Phase 1: Build Out Alaska’s Alternative Fuel Corridor • Phase 2: Build Out Alaska’s Highway and Marine Highway Systems, Install Charging Stations in Rural Hub Communities, and Develop Charging Sites in Urban and “Destination” Locations The expected dates of the phases identified above are as follows: • Phase 1: 2025-2026 • Phase 2: 2026-2028 This plan is intended to be a living document as AEA and DOT&PF collaborate with communities, laws or policies change, adoption projections alter, and additional guidance from the federal government is published. This plan is not intended to impede other DOT&PF infrastructure improvements. Kotzebue Electric Association’s Ford F-150 Lightning. Photo Courtesy Tim Leach / Launch Alaska 3 Alaska Electric Vehicle Infrastructure Implementation Plan FY26 NEVI Program Obligated Funds To Date & Distribution Based on the formula allocations contained within the IIJA, Alaska is set to receive $52,415,294 broken out into annual allotments as indicated in Table 1. Table 1. FY 2022-2026 NEVI formula program annual allotments. FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total $7,758,240 $11,164,195 $11,164,272 $11,164,282 $11,164,305 $52,415,294 The State of Alaska has obligated funds for planning/program management of the NEVI program as well as to the design project that covers technical support to implement projects selected under this funding source. Work to-date under the planning/program ,management includes securement of consultant technical services, public and stakeholder engagement, and development of plans for implementation of the funding. Work to-date for the design project has included the environmental clearance efforts for the sites selected to complete the AFC. In total, $1,122,663 has been obligated to these two efforts out of the $52M total, and all obligations have occurred under FY22 funds. The expectation is that planning/program management and design support will utilize $3M of the total allocation for the program, but not all of the funding is obligated yet. That results in $49,415,294 available for project installations. 4 Obligated Funds to Date & Distribution Alaska Electric Vehicle Infrastructure Implementation Plan FY26 AFC Corridor Designation Alaska does not have any designated interstates due to its isolation from the contiguous United States. However, Alaska submitted, and was approved, “Corridor Pending” status for a single AFC in Round 4 of nominations. The nominated section of the highway is between Anchorage and Fairbanks, with a distance of 358 miles. The corridor was submitted to FHWA as the entirety of the Parks and Glenn Highways from Anchorage to Fairbanks. As stated in the 2020, Round 4 application submitted by Alaska DOT&PF: “We propose the EV vehicle corridor to correspond to the National Freight Route along the [National Highway System] NHS from Anchorage to Fairbanks initially as a target for investment, with an eventual build out along the entire NHS.” AFC Corridor Procurement AEA solicited competitive grant applications for the purpose of installing EVSE at up to 14 sites along Alaska’s AFC. The scope of the projects include design, construction, installation of software and hardware, operations, maintenance, and data reporting. The request for applications (RFA) set out the purpose, instructions, requirements, evaluative criteria, and other information for submitting an application to AEA for grant funding. AEA and DOT&PF will jointly enter into a separate project grant agreement for each site chosen to satisfy a priority area. AEA’s goal for this RFA was to build out Phase One, which includes the AFC from Anchorage to Fairbanks. This section of roadway includes the state roads with the highest traffic volumes, connects Alaska’s two largest cities, and provides access to many communities, parks, and other attractions. After the AFC is completely built out, AEA will move on to Phase Two and conduct solicitations that include the remaining highway systems and Alaska Marine Highway System (AMHS). All funds associated with the NEVI formula program and the Alaska NEVI request for applications are to be administered under Chapter 1 of Title 23, United States Code (USC), which encompasses requirements for states to receive federal-aid funding. The procurement and contractual requirements comply with federal and Alaska state laws and additional program requirements. Applicants are required to construct and maintain EVSE at the site, pursuant to federal program requirements defined in the NEVI Standards and Requirements. The equipment must also meet Buy America requirements. Figure 1. Alaska’s AFC. 5 Obligated Funds to Date & Distribution Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Thirty-four grant applications for the first round of applications for 14 locations along Alaska’s AFC were received and were reviewed for recommendations of award. The following solicitation steps encompass Phase 1 of Alaska’s NEVI program: 1. Advertised RFA: AEA advertised the grant opportunity throughout the state. EV charging companies or site host property owners who self-manage or partner with other entities prepared the grant applications to apply for NEVI funding to install, own, and operate compliant EV chargers. The contracts awarded are designed to be design-build-operate-maintain as the state will not own or operate any of the charging equipment. 2. Prepared Applications: Applicants identified sites for EVSE installation within priority areas identified by AEA. Applicants prepared their application and coordinated with local utilities to understand site readiness for EVSE installation. Utilities provided infrastructure upgrade plans to the applicant, including cost estimates to be included in the final pricing application. 3. Accepted Applications: AEA and DOT&PF evaluated the administrative, technical, and pricing applications based on the evaluation criteria and process as defined in the RFA package. The ranking and prioritization of projects were determined for each priority site. The selection committee members awarded competitive points to each application against the application criteria and weight outlined in the RFA and the applicant with the highest overall score within each priority site group was selected for award. AEA developed a final prioritized list of projects, taking into consideration the amount of funding that is available and the distribution of projects along the AFC. 4. Incorporate Projects into the Statewide Transportation Improvement Program (STIP): After the selection committee confirmed recommended projects, DOT&PF incorporated the project by line item addition based on budget, scope, and schedule values for all incorporated projects. 5. Federal Project Agreements and Authorization to Proceed: AEA and DOT&PF provided project information to the FHWA for Authorization to Proceed. 6. State Project Agreements: AEA and DOT&PF will enter into project agreements with each site host. These project agreements will include information related to reimbursement and billing methods between parties, and program regulations and requirements related to the NEVI program. These include but are not limited to NEPA, Title 23, Chapter 1 part 680 of the Code of Federal Regulations (CFR), Build America and Buy America Requirements, property interest agreements, Uniform Act, and the Clean Air Act. The project agreement will be executed upon agreement of the signing parties. 7. Design and Construction of EVSE: DOT&PF will conduct NEPA compliance work during the preliminary design phase. The grantee will perform the final design and permitting, site work, equipment installation, and connection to power service, and commission the EVSE. AEA and DOT&PF will oversee the project activities and review for compliance with Title 23 and other program requirements. Payments will be made to the grantee on a monthly or quarterly reimbursement schedule as associated with specific project milestones and deliverables. 8. Operation and Maintenance of EVSE: The project agreement will include operations and maintenance service for up to five years. The grantee will provide specific data from the RFA attachments for program monitoring and compliance. We are here! 6 Obligated Funds to Date & Distribution Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Independent Site Deployment Following the implementation of the January 29, 2025, memorandum from the US DOT Secretary of Transportation that suspended the NEVI program until further review and guidance could be issued, Tesla informed AEA and DOT&PF that it would proceed with developing its four awarded sites (Fairbanks West, Nenana, Cantwell, and Trapper Creek) without the support of the NEVI funding. This action reflects the positive impact that Alaska’s NEVI program had on charging infrastructure deployment in the state by highlighting a demand for charging and the gaps that need to be addressed. Given that Tesla is deploying outside the program and is not obligated to meet NEVI standards, such as the CCS connector type or credit card reader functionality, it remains outstanding if Alaska can count these four sites toward fully built out status. It is our request and opinion that these sites count as NEVI-creditable since they were inspired by the NEVI program and its procurement. We also believe it wouldn’t be a prudent use of the federal program funds to issue another procurement in these four areas to solicit and install charging infrastructure essentially across the street from the newly installed Tesla sites. Further, it will prove challenging to identify a site host and network provider willing to contribute the match funding when there will likely not be enough demand to support two sites in the same priority area. Tesla is installing eight ports at its sites, so an additionally procured site would result in 12 fast charging ports in these four priority areas. Figure 2. Charging sites selected during Phase 1 of NEVI rollout in Alaska. 7 Obligated Funds to Date & Distribution Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Charging Station Spacing In previous efforts supporting the NEVI funding disbursement, AEA aligned with the national target to deploy EV charging infrastructure along the AFC every 50 miles. However, that proved challenging based on existing electrical grid availability and site host interest and locations. The AFC is remote for most of its distance, limiting the number of areas that could support the infrastructure. Long distances with no development, including a 100-mile stretch along the AFC between Trapper Creek and Cantwell, pose logistical challenges for installing EV charging infrastructure and seeking hosts for sites. In these remote transportation corridors, there may be only electric transmission lines with no existing tie-in capability (along the Parks and Richardson Highways, for example) or, in some areas, no electricity infrastructure at all (along the Dalton Highway, for example). Until these logistical challenges are resolved, it will be difficult to combat range anxiety among potential EV adopters. The lack of reliable internet or cell service in undeveloped areas poses a challenge to keep remote stations connected to a network to provide accurate real- time reporting on energy pricing and downtime. The EV charging infrastructure may need to rely on hard-wired communication if the site has access. In previous EV infrastructure efforts, AEA was responsible for deploying the Volkswagen Diesel Settlement Trust Fund, and set an internal goal of charging infrastructure every 100 miles along the corridor from Homer and Seward on the Kenai Peninsula to Healy, south of Fairbanks. To get a sense of the public’s opinion on spacing of charging stations, a survey was also conducted prior to the submission of this plan to FHWA, and asked respondents to rank their preferred distance between charging sites along the corridor. As of September 5, 2025, the weighted rank of spacing from respondents is as follows: Table 2. Public survey results about preferred site spacing. Spacing Distance (mi)50 75 100 125 150 175 200 Total Weighted Score 110 115 99 76 59 42 31 Rank 2 1 3 4 5 6 7 Based on the available sites along the corridor, the response received in the initial procurement round for the AFC, prior goals, and public input, AEA is recommended that charging infrastructure be deployed at least every 100 miles. This recommended spacing will ensure that charging infrastructure is deployed at key locations and not oversaturate the corridor. If there are opportunities to secure site hosts more frequently along the AFC, this could provide some redundancy. Additional sites could also be developed during Phase 2 of the program. A driver looks at a new Telsa Supercharger in Trapper Creek. 8 Obligated Funds to Date & Distribution Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Plan to Deploy Unobligated Funds AFC Sites Based on the bids received in the first RFA, it is anticipated that the State of Alaska will allocate $5,544,660 of NEVI formula funding to AFC project sites after the 20% match, resulting in $6,930,826 in total project costs. These sites will be constructed with FY22 funds. Following the construction of these sites and previous FY22 obligations, $1,090,917 will remain in FY22 funds to be obligated. Table 3 has a summary of expenditures of FY22 funding. Table 3. Expenditure of FY22 funding. $7,758,240 FY22 Funding $5,544,660 Selected Projects Costs $1,122,663 Existing Obligated Funds $1,090,917 Remaining FY22 Funds It should be noted that Tesla removed $1,807,955 in requested NEVI formula funds, or $2,259,944 total project costs, from AFC buildout cost due to constructing the four sites on its own. Developing Alaska’s Phase 2 Approach With the expected full build-out of the AFC, AEA and DOT&PF are preparing to move into Phase 2 of the overall plan which includes EV charging infrastructure deployment along additional Alaska Highways and the AMHS, install charging stations in rural hub communities, and develop charging sites in urban and “destination” locations. This Plan begins this process with a detailed approach and process to identify priority sites for procurement once Alaska receives the approval to do so. To begin the process, AEA developed an outreach plan to inform the public about the Phase 2 plan and solicit input into its development. Kicking off this outreach began the process of working to identify sites outside of the AFC. The Phase 2 approach was initially informed by workshops held virtually and in-person in: • Ketchikan (Marine Highway) – May 10, 2024 • Glennallen (Highway) – May 14, 2024 • Homer (Highway and Marine Highway) – May 15, 2024 • Seward (Highway) – May 16, 2024 • Anchorage (statewide) (Highway) – May 20, 2024 While Phase 1 (AFC) prioritized locations based on a gap analysis along the AFC and solicited public input for ideal locations, Phase 2 needs to leverage public input to prioritize community locations for EV charging. These community inputs will not only assist in identifying the needs of the community and potential limitations (like grid infrastructure), but it will also help prioritize selections during future Requests for Applications. These inputs are expected to include distance between sites, number of EVs in the community, adjacent roadway volumes, presence of existing stations, existing EVSE utilization, known planned EVSE, expected cost of the site, and power availability or capacity of utility infrastructure. It will be important to ensure that the distribution of funds addresses the needs of the Alaska Highway System, AMHS and rural communities so that charging access can be granted where people live, work, and travel. The impetus behind this is to ensure that there is adequate distribution of funding and sites across the state. The identified needs will continue to be refined through further outreach and engagement across the state. This outreach is expected to continue beginning in October 2025 and lead into at least one procurement round for infrastructure deployment. 9 Obligated Funds to Date & Distribution Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Phase 2 Funding Moving off of the AFC affords additional flexibility in the type of charging (DCFC vs. Level 2) and speed of charging. The NEVI Standards and Requirements (23 CFR 680) sets the standard for each site to be four ports, but if the site is not along an AFC, the makeup of those ports could be DCFC, Level 2, or a combination of DCFC and Level 2. Further, the 150-kW minimum requirement per DCFC port applies only to the AFC, so consideration could be given to a different power requirement for the sites based on more localized characteristics, such as the capacity of the grid. A minimum of 6 kW is applied in the NEVI Standards and Requirements for Level 2 charging, but AEA and DOT&PF will seek to secure equipment that is rated at higher speeds. Allocating the fiscal funds to Phase 2 is a result of identifying the existing obligated funding, the AFC build-out construction, and the expected administrative costs. Table 4 identifies the balance of FY22 funding that will apply to Phase 2 as well as the FY23, FY24, FY25, and FY26 funds. Alaska currently has $45,747,971 in funds remaining that aren’t obligated or won’t go to AFC buildout. With $1,877,377 estimated in administrative funding to complete the program, $43,870,634 is available for Phase 2 construction. The impact of the federal funding is $54,838,292 in infrastructure when factoring in the local project match funding required. Table 4. Balance of FY22 funding that will apply to Phase 2 and FY23-26 funds. $1,090,917 FY22 Remaining Funding $11,164,195 FY23 Funds $11,164,272 FY24 Funds $11,164,282 FY25 Funds $11,164,305 FY26 Funds $45,747,971 Total Funds Remaining $1,877,337 Estimated Remaining Funds for Administration $43,870,634 Estimated Remaining Funds for Projects Based on average site costs of Phase 1 awards, Alaska could install approximately 49 additional NEVI creditable stations throughout the state if the requirements for the sites were 4 DCFC ports at 150 kW each. However, it is not expected that each site in the Phase 2 communities will want or need 4 DCFC ports at 150 kW. The upcoming outreach and engagement will refine the make-up of these sites based on localized EV adoption, utility coordination, and community conversations. EVSE along the AFC. 10 Obligated Funds to Date & Distribution Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Summary • The State of Alaska has obligated $1,122,663 in FY22 funds to-date and expects to obligate $5,544,660 in FY22 funds to complete the AFC. That will leave $1,090,917 in remaining FY22 funding in addition to all of the FY23, FY24, FY25, and FY26 funds in the amount of $45,747,971 to complete the corridor and remaining program administration costs. • The State of Alaska would like to request that the under-construction Tesla sites along the AFC be counted to Fully Built Out status since the sites were initiated under the program but moved forward without program funding during the federal pause to review the NEVI program. • The recommended approach to deploy no more than 100 miles between NEVI creditable stations to meet corridor traveler needs, build where utility infrastructure and interested site hosts exist, and avoid seeking exemptions for corridor spacing is a deviation from previous planning efforts under the NEVI program. We request that FHWA provide concurrence with our approach. Appendices To support the development of this program, AEA and DOT&PF have developed supplemental appendices that contain additional information for readers of the plan that exceeds the FHWA plan requirements. These will also be dynamic plans that are updated as required and will be posted on the AEA website. The Appendices included are as follows: • Appendix A: Existing Conditions • Appendix B: Registrations/Trends 11 Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Community Engagement Outcomes Report Plan Outreach A NEVI Plan specific page was created on the Authority’s website to host the Plan, Alaska Electric Vehicle Working Group (AKEVWG) meeting information, information on the NEVI formula program, AFC map gallery, and FAQs as relating to the Plan. AEA continues to hold quarterly working group meetings and a technical session every six weeks. Additionally, AEA hosts booths at community events as they arise. These include, but not limited to, the Alaska State Fair, the Infrastructure Development Symposium, and Anchorage and Mat-Su Transportation Fairs. Targeted Workshops NEVI Plan workshops were held throughout the state by request or on an as-needed basis. AEA hosted in-person meetings with local stakeholders to discuss The Plan and continuously solicit feedback. NEVI Plan workshops were useful tools to implement in areas where the Plan had been met with doubt, hesitation, or concern, as AEA was able to meet directly with the affected parties and work to understand the local concerns as well as educate on the Plan. NEVI Plan workshops were also beneficial to hold in areas with strong EV support given that local stakeholders were already engaged and looking for more resources and guidance moving forward. AKEVWG hybrid meeting in Anchorage. 12 Public Engagement Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Table 5. Targeted Workshops Location Date Topic Entities Represented Fairbanks, Alaska September 20, 2022 NEVI Overview Alaska EV Infrastructure Implementation Plan Overview FAST Planning, DOT&PF Juneau, Alaska November 03, 2022 NEVI Overview Alaska EV Infrastructure Implementation Plan Overview City of Sitka, City of Ketchikan, City of Petersburg, City of Kodiak, UAF Kenai, Alaska February 09, 2023 NEVI Overview Alaska EV Infrastructure Implementation Plan Overview HEA, MTA, GVEA, City of Soldotna, City of Kenai Matanuska Susitna Valley, Alaska April 17, 2023 NEVI Overview Alaska EV Infrastructure Implementation Plan Overview City of Palmer, MEA Ketchikan, Alaska May 10, 2024 FY25 Alaska EV Infrastructure Implementation Plan Update and Phase 2 Approach Metlakatla Indian Community, Southeast Conference, Ketchikan Public Utilities/Electric, Grow Ket-chikan/Ketchikan Community Land Trust, Southeast Alaska Power Agen-cy; Ketchikan, Ketchikan Gateway Borough, EVGateway Glennallen, Alaska May 14, 2024 FY25 Alaska EV Infrastructure Implementation Plan Update and Phase 2 Approach Ahtna, Inc., Alaska DOT&PF, Copper River Native Association Homer, Alaska May 15, 2024 FY25 Alaska EV Infrastructure Implementation Plan Update and Phase 2 Approach Whistle Hill, Homer Electric Associ-ation Seward, Alaska May 16, 2024 FY25 Alaska EV Infrastructure Implementation Plan Update and Phase 2 Approach City of Seward, Alaska Sealife Center, Major Marine Tours, EVGateway Anchorage, Alaska May 20, 2024 FY25 Alaska EV Infrastructure Implementation Plan Update and Phase 2 Approach ReCharge Alaska, Alaska DOT&PF, Chugach Electric Association Whittier, Alaska TBD*Phase 2 Outreach Valdez, Alaska TBD*Phase 2 Outreach Delta Junction, Alaska TBD*Phase 2 Outreach * Phase 2 outreach delayed due to delays in AFC buildout and federal suspension of NEVI program. Alaska EV Working Group The AKEVWG met quarterly to discuss EVs and charging infrastructure in Alaska. The goal of the Working Group is to minimize barriers to the adoption of electric transportation in Alaska and to create a vibrant and enduring ecosystem for EVs and other modes of electric transport through strong local and regional partnerships. The Working Group has members from across the state. 13 Public Engagement Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Members of the AKEVWG include the Alaska Electric Vehicle Association (AKEVA), Alaska DOT&PF, electric utilities, EV owners, EVSE vendors, municipalities, prospective charging sites, site hosts, universities, other stakeholders, and interested members of the public. Working Group meetings provided an opportunity for the group to gather and hear any high-level updates from AEA as well as serving as a venue for group members to share updates about ongoing work. All Working Group meetings were hybrid-style meetings to help facilitate attendance from people across the state, even if they were located outside of one of the urban hubs in which the in-person meetings were held. Meeting agendas, presentations, recordings, and transcribed Q&A were posted to the AEA website after the meetings. Table 6: Working Group Meetings Location Date Topic Entities Represented Virtual & in person: Anchorage, Alaska July 13, 2022 Morning Session NEVI Overview Alaska EV Infra-structure Implementation Plan Overview MEA, City of Soldotna, Chugach Electric, City of Petersburg, MOA, UAA Virtual & in person: Anchorage, Alaska July 13, 2022 Afternoon Session NEVI Overview Alaska EV Infrastructure Implementation Plan Overview MOA, CIRI, Alaska Power Assoc., AGC Virtual & in person: Anchorage, Alaska October 13, 2022 Alaska Electric Vehicle Infrastructure Implementation Plan Update Electrification Coalition Group Updates MEA, CEA, FAST Planning, GVEA, UAF, HEA, FNSB, DOT&PF Virtual & in person: Anchorage, Alaska January 19, 2023 NEVI Program Site Host Request for Applications (RFA) Update on Existing EV Charging Stations in AK* Chugach Electric, MEA, ReCharge AK, MOA, AHFC, MTA, City of Ju-neau, FAST Planning, UAA, GVEA, City of Valdez, UAF Virtual & in person: Anchorage, Alaska May 22, 2023 Post-selection process for NEVI funding recipients USDOT, GVEA, Chugach Electric Virtual & in person: Anchorage, Alaska August 15, 2023 Rural Reimagined Project MEA, UAF, Tennessee Tech Univer-sity Virtual & in person: Anchorage, Alaska October 26, 2023 Site Host Selection, Schedule, and Path Forward*Chugach Electric, MEA, Tesla, DOT&PF, Kia, Jule, HAP, Donlin Gold, AKEVA, GVEA, Flo, Launch Alaska Virtual & in person: Anchorage, Alaska March 22, 2024 EV Microtrends and Winter vs. Summer Performance*MEA, Chugach Electric, UAF, Launch Alaska, ReCharge AK, Southeast Conference Virtual & in person: Anchorage, Alaska October 10, 2024 FAST EV Plan Update Homer Electric, FAST Planning, ReCharge AK, Chugach Electric, Launch Alaska Virtual via Zoom December 5, 2024 Lori Sowa (AELP) Accelerator Grant, Kris Hall (ReCharge Alas-ka) Three Bears Update Southeast Conference, Homer Electric, ReCharge AK, City of Sitka, Chugach Electric, MEA, MTA, AELP Virtual via Zoom April 9, 2025 ARED Program and Volcano Preparedness Chugach Electric, MEA, GVEA Virtual via Zoom July 9, 2025 Are Electric Vehicles a Solution for Arctic Isolated Microgrid Communities? Presentation by Michelle Wilber ReCharge AK, Launch Alaska, Southeast Conference *Indicates a combined Tech Session/Working Group Meeting 14 Public Engagement Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Alaska EV Working Group Technical Sessions Technical sessions were held as a subset of the AKEVWG and the topics were more targeted and focused as compared to the quarterly Working Group meetings. AEA invited experts to join panel discussions on various topics related to EVs and the deployment of EV chargers throughout the state. A meeting facilitator researched the session topic before each meeting and drafted questions to help guide the discussion. Invites were sent out to targeted groups that AEA believed would have special interest in the topic; however, the sessions were always open to anyone who wished to join. Meeting participants were encouraged to ask the panel members questions as well as interact with each other. Panel members and participants discussed challenges and brainstormed ideas on best practices to consider while moving forward. Technical sessions were held as hybrid-style meetings to ensure that participants and panel members could join from wherever they were located, even if they were close to the in-person meeting location. Meeting recordings and notes were posted to the AEA website after the Technical Session. Table 7. AKEVWG Technical Sessions Location Date Topic Entities Represented Virtual via ZOOM September 27, 2022 Workforce panel discussion on con-struction and maintenance workforce, EVITP certification process and training UAA, AKEVA, Kotzebue Electric Association Virtual via ZOOM November 03, 2022 Electric utility panel discussion on chal-lenges faced during EVSE deployment AVEC, REAP, MTA, City of Ket-chikan, GVEA, MEA, City of Petersburg, HEA, Chugach Electric Association, City of Sitka, MOA Virtual & in person: Anchorage, Alaska January 19, 2023 NEVI Program Site Host Request for Applications (RFA) Update on Existing EV Charging Stations in AK* Chugach Electric, MEA, ReCharge Ak, MOA, AHFC, MTA, City of Juneau, FAST Planning, UAA, GVEA, City of Valdez, UAF, Launch Alaska Virtual & in person: Anchorage, Alaska March 10, 2023 NEVI Uptime Requirements City of Juneau, UAA, City of Wasilla, MEA, Chugach Electric Association, USDOT Virtual & in person: Anchorage, Alaska April 03, 2023 The Charging and Fueling Infrastructure Discretionary Grant Pro-gram MEA, Chugach Electric Assoc., USDOT, UAF, GVEA Virtual & in person: Anchorage, Alaska July 12, 2023 Measuring Program Benefits GVEA, DOT&PF, MEA, AKEVA, UAF Virtual & in person: Anchorage, Alaska October 26, 2023 Site Host Selection, Schedule, and Path Forward*Chugach Electric, MEA, Tesla, DOT&PF, Kia, Jule, HAP, Donlin Gold, AKEVA, GVEA, MEA, Flo, Launch Alaska Virtual via Zoom December 14, 2023 Car Dealership Panel Discussion Chugach Electric, MEA, Flo, Launch Alaska, UAF Virtual via Zoom January 18, 2024 DriveOhio Infrastructure Deployment Update UAF, Launch Alaska, GVEA, Chugach Electric, AKEVA Virtual & in person: Anchorage, Alaska March 22, 2024 EV Microtrends and Winter vs. Summer Performance*MEA, Chugach Electric, UAF, Launch Alaska, ReCharge AK, Southeast Conference Virtual & In person: Anchorage, Alaska June 18, 2024 Alaska FY25 NEVI Plan Update Chugach Electric, GVEA, ReCharge, AK, Southeast Conference, UAF, City of Sitka, Electrification Coali-tion, AKEVA 15 Public Engagement Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Location Date Topic Entities Represented Virtual & In person: Anchorage, Alaska August 13, 2024 Round table presentations from utilities City of Sitka, Southeast Confer-ence, Juneau Hydro, GVEA, MTA, Flo, Comcast Virtual via Zoom October 30, 2024 SEC – Robert Venables short presenta-tions + SEC 2024 Annual meeting recap Southeast Conference, MEA, City of Sitka, Homer Electric, Chugach Electric, Southeast Conference, AELP Virtual via Zoom February 27, 2025 DMV Data Wishlist Chugach Electric, Southeast Conference, Launch Alaska, MEA, Alaska DOT&PF, ACEP, TDX Power Monthly Newsletter AEA wrote a monthly newsletter that was distributed to the listserv and posted to the website. Newsletters typically contained an educational section, for example an explanation of EV tax credits, as well as updates on EV current events, like news on road rallies, either in Alaska or throughout the rest of the United States. The newsletters also served as an opportunity to advertise upcoming events, such as Technical Sessions, Working Group Meetings, or Workshops, and were a method to share links that readers could use to do further research on the topic at hand. Table 8. AEA Newsletters Date Topic August 04, 2022 AEA Submits The Plan to Joint Office August 11, 2022 Plan Spotlight: What is an AFC and why is the first round of funding going there? September 08, 2022 Arctic Road Rally Recap October 13, 2022 The Plan is approved! DE-FOA-0002611 Grant Concept Paper Accepted. Building Alaska’s EV Workforce November 09, 2022 Charging EVs with electricity harnessed from fossil fuels: Worth It? December 09, 2022 Updates on the electrification of fleets, buses, and airplanes in Alaska NEVI Site Host Applica-tion Update January 12, 2023 NEVI RFA Update and Timeline February 9, 2023 Clean Vehicle Tax Credit. Electric Buses in Metlakatla and Ketchikan March 9, 2023 NEVI Minimum Standards and Requirements. Build America, Buy America Act Waiver April 13, 2023 The Charging and Fueling Infrastructure Discretionary Grant Program May 12, 2023 Updated EPA Vehicle Pollutant Standards. Updates on the Clean Vehicle Tax Credit. VW 1D.4 Alaska Tour. GVEA kWh Rate Change for DC Fast Chargers June 8, 2023 AEA Intent to Negotiate for DE-FOA-0002611. Ford Adopts NACS July 13, 2023 EV Charging Ports, NEVI Plan Comments Due Monday, and What We’re Reading August 10, 2023 Measuring Benefits Survey, August 15 Technical Session, and EV Resources September 14, 2023 EV batteries — composition, recycling incentives, and future solutions October 12, 2023 First Round Alaska NEVI Funding, Timeline, and Next Steps November 9, 2023 FHWA Approves FY24 Alaska NEVI Plan, NACS Update, and Local EV News December 14, 2023 Clean Vehicle Tax Credit Updates, Alaska’s Latest EV Count, and What We’re Reading January 11, 2024 NEVI Plan Spotlight, Funding Opportunity, Technical Session Recap, and January Events February 8, 2024 NEVI Plan Spotlight, EV Sales, and Upcoming Events March 7, 2024 NEVI Plan Spotlight, EV Signs, Funding Opportunities, and Upcoming Events April 11, 2024 Plan Spotlight, Share Your EV Data, and Fairbanks and North Pole EV Survey 16 Public Engagement Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Date Topic May 6, 2024 NEVI Workship Series, Plan Spotlight: Existing & Future Conditions Analysis, and What’s in a Sign? June 14, 2024 EVSE Funding Opportunity, Plan Spotlight: EV Charging Infrastructure Deployment, and an Update on the FY25 Draft NEVI Plan July 16, 2024 Your Input Needed on FY25 Alaska NEVI Plan, Call for Photos, and New Clean Vehicle Tax Credit Checklist August 8, 2024 Plan Update, Spotlight with AEL&P, and Upcoming Roundtable with Electric Utilities September 12, 2024 Alaska’s NEVI Plan, Remote and Rural Alaskan EVs, and the Next Quarterly Meeting October 18, 2024 Alaska’s NEVI Plan Update, FAST Planning Invites Input on EV Plan, and (this) Newsletter Earns an Award! November 14, 2024 EV Sales Reach Another Milestone, FreeWire Update, and What We’re Reading December 9, 2024 Alaska’s NEVI Plan Approved, What’s Next?, and Three Bears Alaska Charging Stations Update January 6, 2025 Upcoming Outreach Events, AK Newest EV Plan Approved, and EVs in Norway! February 13, 2025 Event Updates, Data Insights, and a Must See Documentary March 14, 2025 NEVI Program Update, EV Related Legislation, and a DMV Data Wishlist Recap March 27, 2025 Your EV Update: Volcanic Ash Preparedness, Other Emergency Preparedness, and Upcoming Events May 15, 2025 Research Recognition, Film Premiere, and Upcoming Events June 12, 2025 Alaska Graphite, EV Film, and Reading Recommendations July 7, 2025 Wildfires, Electric Vehicles, and Fast Chargers August 19, 2025 New NEVI Guidance Figure 3. Newsletter stats. 17 Public Engagement Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Community Surveys Community surveys were used to extend stakeholder outreach into rural areas of Alaska to ensure that all communities were given opportunities to comment on the NEVI Plan. Paper and electronic surveys were distributed at the following events where AEA either held an informational booth or presented on the NEVI Plan. Table 9. Community Surveys Date Event Website December 2022 Alaska Municipal League Annual Local Government Conference https://amlannual.org/ January 2023 Anchorage Transportation Fair www.anchorage-transportation-fair.com February 2023 Alaska Forum on the Environment https://akforum.org/ Figure 4. Outreach participant locations. 18 Public Engagement Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Outreach Outcomes Through all of the outreach that has been performed, it has become extremely evident that there is an appetite to install EV charging infrastructure in locations outside of the AFC. Nearly all stakeholders are excited for the new sites on the AFC, and can’t wait for their completion so that Alaska can move into Phase 2. There is a strong need for charging infrastructure in many communities across Alaska, from rural to marine to the larger urban areas. Timely completion of the AFC is critical to maintain this excitement. Copper Valley Electric Association (CVEA) raised concerns about the lack of electrical infrastructure to support chargers during the May 2024 outreach sessions. As a result, coordination and outreach with CVEA has a been a more focused effort. The project team plans to travel to Valdez, part of CVEA’s service area, during the next round of workshops to continue this dialogue and solicit feedback on what the next phase of buildout might look like in their area. Beyond Valdez, the team intends to travel to two other communities off the AFC in the near future: Delta Junction and Whittier. Delta Junction is located at the intersection of the Richardson and Alaska Highways and serves as a vital stop for long distance travelers. Whittier is connected both to the main highway system and is a port for the Alaska Marine Highway System, offering a chance to build a charging site that serves a variety of users. Other communities have attended past outreach events and made sure the project team was aware of the reasons that EV charging is needed in their community. These include providing access to existing EV owners, fostering additional adoption, supporting regional travel and tourism, and leveraging renewable energy sources where available. Information gathered during previous outreach efforts, as well as insight gained from upcoming Phase 2 outreach will help guide decision making as Alaska moves into the next phase of planning for EVSE off the AFC. This photo of the remote Glenn Highway was taken during travel to the 2024 Glennallen NEVI Workshop. CVEA, the electric utility in this area, raised concerns about lack of electric infrastructure to support EV charging. 19 Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Physical Security & Cybersecurity Physical Security Providing a welcoming and secure environment for motorists looking to charge their vehicles will help ensure the success of the deployments. This is a challenge, due to the remoteness of some of the locations along the AFC and the lack of sunlight in the winter months. Adequate lighting is paramount and was included as a scoring criterion in the selection process for this reason. Other site amenities that could aid in security include cameras, security detail, a staffed facility that is open 24/7, and locating the stations on-site in areas with high visibility. AEA will work with the vendors through the selection and design process to ensure that physical safety is kept in mind. Cybersecurity AEA’s approach to deploying infrastructure through the NEVI program is to use third-party vendors to own, operate, and maintain the EV charging stations and the data that is stored and transmitted. The data that will be publicly available will be transmitted through an application programming interface (API), and the data will be limited to non-sensitive material. AEA does not intend to collect, nor does it want personally identifiable information (PII). A NACS adapter installed at a charging station in Glennallen is attached by a metal cable. Photo courtesy AEA. 20 Physical & Cybersecurity Alaska Electric Vehicle Infrastructure Implementation Plan FY26 A threat on energy infrastructure can directly affect the security and resilience within and across other critical infrastructure sectors—threatening public safety, the economy, and national security. In FY24, AEA developed the State Energy Security Profile (SESP) as an essential part of energy security planning. These plans described the state’s energy landscape, people, processes, and risks, and included considerations and planning as they relate to EVSE. AEA worked with partners to develop and finalize a plan to ensure the infrastructure is safe against all physical and cybersecurity threats. As part of the contract with the site partner and/or charging providers, language surrounding cybersecurity requirements will be included. The vendor will be responsible for meeting the latest cybersecurity requirements around PII and Payment Card Industry Data Security Standard (PCI-DSS) security standards to protect customer payment information. The vendor will be responsible for alerting AEA and the Cybersecurity and Infrastructure Security Agency of any known or suspected network or system compromises. AEA is also leveraging the Joint Office’s sample cybersecurity procurement language in contracting as a way to leverage the collective community deploying NEVI funds. The program covers Identify, Credential, and Access Management (ICAM), Configuration, Vulnerability, and Update Management (CVUM), Secure payment (SP), Secure Communications (SC), and Physical Security (PS). In addition to ensuring payment information is secured in compliance with PCI-DSS, AEA will work with partners to ensure all potential threat vectors are reviewed with respect to current standards and best practices for each. This will require design reviews and collaboration with charging providers to ensure EVSE cybersecurity is fully addressed. In the absence of any one specific EV charging cybersecurity standard, the following standards and guidelines will be used as part of these discussions. This is not an exhaustive list and is updated regularly as the industry evolves: NIST Interagency Report 8294; NREL Project 1.3.4.402, Consequence-Driven Cybersecurity for High Power Charging Infrastructure; SAE J1772 for EV plugs and adapters; IEC 68151-1 EV Charging Modes; IEC 62196 EV plugs and adapters and ISO 15118 where applicable. Design reviews will include discussions of Open Charge Point Protocol (OCPP) implementations; Public Key Infrastructure Architecture and Certificate Management methodologies; and other protocol reviews from a cybersecurity perspective to ensure that secure development lifecycle and operations best practices are used by all vendors. AEA will ensure best practices by vendors are followed to include but not be limited to: • A method to authenticate all software as part of the initialization phase • Secure configurations in all meter equipment, disabling any unused ports and protocols such as Bluetooth or Telnet • Encryption of all over-the-air transmissions where applicable • Transport Layer Security for all web-enabled devices • FedRAMP and/or SOC 2 certification for all cloud services • Continuous monitoring by the EV Charging Management System AEA will consider requesting cybersecurity scan results from the charging provider, ensuring all configurations and vulnerabilities have been addressed prior to operational service date. AEA has considerable cybersecurity resources available to assist in ensuring the entire EV ecosystem is securely implemented and maintained. A1 Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Appendix A: Existing Conditions A2 Appendix A: Existing Conditions Alaska Electric Vehicle Infrastructure Implementation Plan FY26 To evaluate the statewide network and set a baseline for future evaluation, an inventory of traffic, EV registrations and adoption, existing infrastructure, and planned near-term installations must be inventoried. State Geography, Terrain, Climate and Land Use Patterns Spanning over 665,400 square miles, Alaska is the largest state in the country and represents about one-fifth the total size of the contiguous United States. In terms of size, Alaska stretches 2,000 miles from east to west and 1,100 miles north to south. This includes hundreds of islands that make up the Aleutian Island chain and over 1,000 islands that make up the Archipelago of Southeast Alaska. The size of the state results in a wide range of temperatures and terrains. While Alaska is geographically large, the relatively small population of the state results in a low population density with clusters around the major urban areas of Anchorage, Fairbanks, and Juneau. Alaska is bordered by 6,640 miles of coastline, including coasts of the Pacific and Arctic Oceans, and 1,538 miles of international border with Canada. With the least-dense population in the country, many Alaskans reside along the state’s road system and the remaining population resides in small, rural villages and towns accessible by water or air. The largest city, Anchorage, contains two- thirds of the state’s population at just under 300,000 residents, followed by Juneau and Fairbanks, each with a population of about 30,000 residents. Alaska’s transportation network is relatively undeveloped compared to its national peers. Of the state’s 17,690 centerline miles of road, 82% are considered rural and 65% are unpaved. The vast majority of the state’s land is publicly held. Of the public lands, 65% is owned by the federal government and 25% by the state. Despite its size, Alaska does not have any signed interstates. Alaska shares a border to the east with Canada and some travel routes across Alaska traverse Canada, adding complexity to supporting statewide EV movements that will require international coordination. Alaska’s terrain and ecosystem vary tremendously and includes the flat and treeless tundra of the North Slope, subarctic boreal forests, permafrost and marshlands, numerous mountain ranges including the highest peak in North America, and temperate coastal rainforest. Its climate is as diverse as its terrain with long, cold winters and cool summers in the far north and northwestern coast, extreme cold in winter and extreme heat in summer across the Interior, a warmer and snowier climate in Southcentral, and an even warmer and rainier climate in Southeast Alaska. The state is renowned for its cold winters where temperatures can drop to -50°F without a wind chill and will climb into the 80s during the summer. Based on the temperature and precipitation averages, Alaska is divided into five climate regions. Alaska Climate Regions The Arctic region consists of the area north of the Brooks Range to the Arctic Ocean and is entirely north of the Arctic Circle. Average temperatures here are well below freezing with long, cold, and dark winters. Precipitation in this area is light, falling mostly in the summertime. This region is situated above the tree line and consists of predominantly tundra, and high winds are typical in this area for most of the year. The Interior region consists of the area between the Brooks Range to the north and the Alaska Range to the south. It comprises the largest area of the state and has high temperature variability. Summers are typically warm and sunny with an average temperature in the 60s, and winters are cold with average temperatures below zero. The north end of the AFC, Fairbanks, is located in the Interior region. Of the state’s 17,690 centerline miles of road, 82% are considered rural and 65% are unpaved� The vast majority of the state’s land is publicly held� A3 Appendix A: Existing Conditions Alaska Electric Vehicle Infrastructure Implementation Plan FY26 The Western region spans a wide area including the Aleutian Islands. The climate in this area is heavily impacted by the Pacific Ocean and experiences frequent storms during the winter and fall. This area extends hundreds of miles into the Bering Sea and has a maritime climate that is typically above freezing with less variability. Southcentral Alaska ishome to most of the state’s population. This area is home to multiple mountain ranges, and the climate is not as extreme as the Aleutian chain. Southcentral, as well as the Bristol Bay area, have a more temperate climate with mild summers and winters relative to the climate zones to the north and west. Anchorage, the south end of the AFC, is located in southcentral Alaska. The Southeast Alaska area borders the Gulf of Alaska and has a strong maritime influence. While the temperatures can be moderate, there is high annual precipitation in the form of snow and rain. The impact of the mountain terrain in the area contributes to weather conditions that can vary substantially. The AMHS is located in Southeast Alaska. State Travel Patterns, Public Transportation Needs, Freight and Other Supply Chain Needs The natural geography of Alaska makes it a challenging setting for transportation—natural barriers throughout the region create a unique environment for aviation and marine transportation. While most interstate travel can be achieved on the road network, Alaska has a unique set of challenges as many communities cannot be accessed by the road network. These communities are located off the road system and are only accessible by plane or through the AMHS. The AMHS extends across 3,500 miles of coastline and provides service to 35 communities. The DOT&PF maintains and operates 235 airports throughout Alaska to support 82% of communities that depend on aviation for year-round access. Figure 4. Alaska’s transportation network. A4 Appendix A: Existing Conditions Alaska Electric Vehicle Infrastructure Implementation Plan FY26 According to the Transportation Assessment for the Alaska Moves 2050 LRTP, 251 communities in Alaska are served exclusively by air, with distances between some airports comparable to the distance between Minneapolis and Orlando. Ferries also support an important section of transportation in the state, with the AMHS serving over 3,500 miles of coastline and 35 communities, many of which rely on ferry for travel and goods. Remoteness is the theme when discussing the travel patterns in Alaska. Not only is that reflected in the importance of the marine and aviation system, but on the connected road network as well. The two major cities on the road system are separated by over 300 miles of road. Smaller towns are dispersed along the road system, but many have reduced services. With few full-service locations spread out over a wide geographic area, the structure of Alaskan highways presents a challenge to widespread EV usage as it relates to the ability to charge vehicles. This would increase the need for fast-charging stations throughout the state to enable users the ability to reach their destination. The State of Alaska has 17,690 total centerline miles. A vast section of the Alaska road network is unpaved; the breakdown of total miles by road surface type is 11,520 unpaved and 6,169 paved. All 1,080 miles of the functionally classified Interstate roads and 920 of the 939 miles of the Principal Arterial-Other roads are paved. Most vehicular travel occurs in the southcentral population centers along Alaska Routes A-1 from Anchorage to the Canadian border, A-2 from Tok to Fairbanks, A-3 from Soldotna to Anchorage, and A-4 from Gateway to Fairbanks. The Alaska National Highway System is unlike most in the continental United States. It includes six-lane urban freeway segments with volumes of up to 68,000 a day (2019), and the Dalton Highway, which is 400 miles of mostly unpaved road with segments seeing as little traffic as 105 vehicles a day (2019). Figure 5. Alaska’s AADT. A5 Appendix A: Existing Conditions Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Based on travel pattern data, key locations for automotive transportation occur in more populated areas including Anchorage, Fairbanks, the Matanuska Valley, and Juneau, Ketchikan, and Sitka in southeast Alaska. Vehicular transportation is also limited in the State of Alaska by seasonal weather, with certain roads closed for a portion of the year due to snow cover and ice. In addition to more concentrated traffic and car ownership in these population corridors, transit plays a big role in connecting Alaskan businesses with their workforce across a range of industries. According to the American Community Survey Public Use Microdata Sample, approximately 5,600 workers in Alaska use transit to get to work, collectively earning $203 million in wages annually.1 Key cities with federally funded public transportation programs include: • Anchorage – People Mover and AnchorRIDES • Bethel Transit Bus System • Central Kenai Peninsula – Central Area Rural Transit (CARTS) • Fairbanks – Metropolitan Area Commuter System (MACS) and Van Tran • Girdwood – Glacier Valley Transit (GVT) • Gulkana – Soaring Eagle Transit (SET) • Hollis – The Inter-Island Ferry Authority (IFA) • Juneau – Capital Transit • Ketchikan – Ketchikan Gateway Borough Transit (The Bus) • Kodiak – Kodiak Area Transit System (KATS) • Wasilla – Valley Transit • Sitka – The Ride • Talkeetna – Sunshine Transit • Tok – Interior Alaska Bus Line (IABL) Access to more remote areas of the state occurs most frequently by aviation and ferries (along the southern coast). Approximately $1 billion of funding from the Infrastructure Investment and Jobs Act is dedicated to the AMHS to establish an essential ferry service supporting rural communities. Aviation is also a vital component of the regional transportation system, connecting all communities to the rest of the state and beyond. The aviation system in Alaska not only serves the transportation needs of residents, but also supports the movement of material goods and critical medical services as well as the regional economy. According to the Alaska DOT&PF, nearly 82% of Alaska communities are inaccessible by road, making airstrips and airports essential to Alaskan communities. A6 Appendix A: Existing Conditions Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Grid Capacity A review of the peak loads combined with historical growth of the electrical loads on the Railbelt Utilities was performed to determine the impact of DCFC stations on the grid in the region. The future capacity projections did not account for any additional added capacity from renewable sources as a conservative estimate. Based on the projected loads, there is more than adequate capacity for the proposed NEVI-compliant DCFC stations along the AFC detailed in this study. Table 10. Grid capacity. 2022 2023 2024 2025 2026 Firm Peak Load (MW)809.2 849.6 892.0 936.6 983.4 Total Capacity (MW)1569.8 1569.8 1569.8 1569.8 1569.8 Reserve Margin (MW)760.6 720.2 627.8 583.2 536.4 Reserve Margin (%)94 85 70 62 55 Additional reviews of the grid will be completed as locations outside of the AFC are identified for installations. Existing Locations of Charging Infrastructure Along AFCs There are six existing DCFC locations with 17 ports located within a mile of Alaska’s proposed AFC along the Parks and Glenn Highways. Of the existing DCFC locations, most do not have connectors and speed output (minimum 150 kW) that meet the NEVI standards. The average output is 50 kW for the six existing DCFC stations that are not Tesla Superchargers. The Supercharger in Chugiak is rated at 250 kW and includes the “Magic Dock” from Tesla, a permanently affixed CCS adapter that can be unlocked through the Tesla app for drivers of CCS vehicles. However, it does not have a credit card reader on the pedestals to make it Creditable. The longest gap spans 170 miles from Wasilla to Cantwell. Within that span there are three Level 2 stations, but only one is open year-round. Two locations are RV campgrounds and provide access to charging only during summer months. The second longest gap in charging access is from Healy to Fairbanks, a span of over 110 miles. This span also lacks Level 2 charging locations. Once into Fairbanks, the nearest DCFC location is approximately 4.5 miles from the AFC. In all, Alaska has 63 public EV charging station locations with 149 EV charging ports according to the Alternative Fuels Data Center records. B1 Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Appendix B: Trends Evaluation B2 Appendix B: Trends Evaluation Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Trends Evaluation Future State of EV Adoption in Alaska As of May 2025, there were 3,916 EVs registered in Alaska. The EV adoption in Alaska is trending upward as indicated by a 27% increase in registrations year over year compared to May 2024. The EV penetration rate is 0.69%, which still lags behind the national average, but is also increasing. AEA has also started tracking the trends with Plug-in Hybrid Vehicles (PHEVs) which saw a 34% increase year over year with 1,345 total registered PHEVs in the state. Sport Utility Vehicles (SUVs) and pickup trucks account for 80% of new vehicles purchased in Alaska. Due to this vehicle preference trend, it is expected that EV market share in Alaska will increase once battery electric pickups trucks are readily available to Alaska consumers. As of May 2025, electric SUVs make up approximately 45% of the EVs in the state and the pickup trucks are 12%, both increasing rapidly. For comparison, SUVs comprised of 17% of all EVs in May 2024 and pickup trucks comprised of 5.8% of all EVs. Tesla continues to hold the majority of the market; however, its share has decreased from 53% to 36% since 2022. The next highest penetration manufacturers were Chevrolet, Nissan, and Ford with 15%, 13%, and 12%, respectively. The future state of EVs in Alaska was evaluated to determine if the deployed capacity along the AFC related to the NEVI requirements would be satisfactory to the expected number of EVs on the road at the end of the program. To assist in the development of future EV registrations, two growth scenarios were developed. It is important to recognize that a variety of factors can affect EV adoption, including access to charging infrastructure, availability of models, price points and comparability to ICE models, and willingness to make the transition. Figure 6. EV growth scenarios. B3 Appendix B: Trends Evaluation Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Continued Growth Scenario The continued growth scenario projects that EV adoptions continue the 2020 to 2021 growth of 42.05% throughout the five-year period. The results are that the state would realize about 1,200 EV sales per year on average, adding about 6,000 new EV registrations in the five-year period. The penetration rate of EVs in Alaska in 2026 would be 1.01% of all registered vehicles in the state, up from the existing 0.20% in 2021 for light-duty vehicles. Aggressive Growth Scenario The aggressive growth scenario increases the 2020 to 2021 growth by a factor of 1.5, resulting in a 63% growth rate. This scenario addresses the expected increase in registration due to the new battery electric pickup truck models coming to market and expanded offerings for SUVs. The results are that the state would realize about 2,600 EV sales per year on average, adding 13,160 new EV registrations over the five-year period. The penetration rate for EVs in Alaska A graph showing continued and aggressive EV growth scenarios in Alaska. The aggressive growth scenario shows about 14,000 EVs by 2026 while the continued growth shows about 7,500 by 2026. Under this scenario, the penetration rate of EVs in Alaska would be 2.02%, up from the previous 0.20% in 2021 for light-duty vehicles. Growth Monitoring Monitoring the growth of EVs in the state is essential to assess how closely actual trends align with projections. The continued growth scenario projected 4,212 registered EVs through May 2025, and the actual number is 271 registrations short of that. However, when factoring in PHEVs, there are over 1,000 more vehicles than projected registrations. EV registrations have seen a steady growth since AEA began reporting the numbers in August 2022 that cited 1,250 EV registrations in December 2021. In June 2023, the number of EV registrations in Anchorage surpassed the Southeast for the first time as more drivers in the state’s largest population center adopt EVs and currently contains 37% of the state’s EVs. However, Juneau, Sitka, and the Hoonah-Angoon Census Area lead EV penetration rates with 3.72%, 2.66%, and 1.98%, respectively. Skagway is the only other borough or census area that tops 1% EV penetration. In all, a total of 931 EV registrations have been added year over year, bringing the total number very close to 4,000 registrations. The 27% growth of EV registrations is outpacing the overall vehicle registrations increase of 1.9% year over year. B4 Appendix B: Trends Evaluation Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Figure 7. EV registration by manufacturer. Figure 8. EV registration by region. B5 Appendix B: Trends Evaluation Alaska Electric Vehicle Infrastructure Implementation Plan FY26 Figure 9. Year-over-year growth of EVs by region. Figure 10. Statewide BEV and PHEV registration numbers. State of AlaskaElectric Vehicle Infrastructure Implementation PlanSeptember 2025Find EV information at akenergyauthority.orgContact us at electricvehicles@akenergyauthority.org 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 of Directors THRU: Curtis. W. Thayer, Executive Director FROM: Dan Smith, AEA Planning Manager DATE: October 10, 2025 RE: Net Metering Incentive Payment Pilot Program Background The Net Metering Incentive Payment Pilot Program was developed during the summer of 2025 by the Alaska Energy Authority (“AEA”). Prior to the launch of the program, AEA solicited feedback on the proposed design of the program with prospective eligible utilities, but little feedback was received. The design of the program is intended to incentivize eligible utilities to pay their residential customers utilizing net metering programs the full retail rate for power that is fed back into the local grid. The Incentive would take the form of a reimbursement from AEA to the respective utility for the difference between said utilities net-metering rate and their residential retail rate. Program Funding, Eligibility, and Participation The Program is funded under a Reimbursable Services Agreement (“RSA”) between AEA and the Governor’s office. All electric utilities operating under a Certificate of Public Convenience and Necessity (“CPCN”) as issued by the RCA, and which operate a net metering program as required under 3 AAC 50.900 – 3 AAC 50.949 are eligible to participate in the Program. Current Status Since launch, AEA has received minimal inquiries about the program (some from non-railbelt, ineligible utilities). AEA has contacted various Railbelt utilities seeking additional feedback regarding interest in the program. In summary, the feedback received indicates that no eligible utilities are interested in participating in the program. The primary reasons for such lack of interest are reported as follows: 1. Administrative burden – monthly reporting on these reimbursements is not conducive to the operations of railbelt utilities. A quarterly, semi-annual, or annual reporting/reimbursement structure would be more beneficial to the intended utilities. With revised reporting structures monthly data could still be generated at a more administratively efficient rate. Concerns have been expressed on the recovery of costs related to program administration and reporting. 2. Demand rates – By offering rate payers a net metered rate equal to the retail rate, some rate payers may be incentivized to over build their net metered energy generation project and thus create a mismatch between supply and demand, and further exacerbate the issue of cost-shifting between net metering participants and non-participants. Alaska Energy Authority Page 2 of 2 a. E.G. – a homeowner over-sizes their roof mounted Solar PV system to sell power back to the grid. On a day where there is lots of energy production from this solar system, the utility is forced to purchase the net-metered energy which could be 3 times as expensive as other energy producers (community scale solar farm, Bradley Lake, etc…) 3. Longevity of program - If rate payers become accustomed to, or reliant on this incentive, and the available funding becomes exhausted, those utilities may be placed in the undesirable position of having to develop a solution to mitigate the impacts to financial returns for their ratepayers. a. The temporary nature of the program and the risks relating to the duration of the incentive payments may provide financial disincentive to prospectiveparticipants, owing to the large up-front capital costs for net-metering systems and related uncertainty concerning the return on investment. Potential Programmatic Reforms Some potential options for program restructuring which continue to support the overall program goal of promoting net metering program participation are noted as follows and will be explored with eligible utilities: 1. Shift the incentive from a rolling full retail pay out with a limited funding duration to an initial capital expenditure offset. a. This would improve the long-term project economics and shorten the payback period for system procurement and installation via a lump-sum payment to the buyer, to offset a portion ofthe initial capital expense. 2. Prioritize net-metering investments that include an energy storage component to capture the following benefits: a. Enhance the stability of grid operations by storing energy for use during times of peak load, reducing the need to bring on-line less efficient peaking generation assets. Minimize power being fed onto grid during times of low-demand where this excess net metered power not needed; thus maintaining higher utility operational efficiencies. 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 of Directors THRU: Curtis W. Thayer, Executive Director FROM: Conner Erickson, Director of Planning DATE: October 20, 2025 RE: Power Project Fund (PPF) Revolving Loan Fund Update Pending Loan Applications As of the date of this memo, there are currently three prospective borrowers for the PPF revolving loan program: • Puvurnaq Power Company (PPC) -$80,000 - Review in Progress o PPC, the certificated electric utility for the Native Village of Kongiganak, has submitted a PPF loan application for $80,000 for payment of certain installation, repair and maintenance services rendered relating to existing diesel generation assets within the utility powerhouse. AEA staff have completed their due diligence review of this loan application and a PPF Loan Committee meeting for official review and approval by is pending for October 23, 2025. • Native Village of Atka (NVA) - $4.9 million - Application Pending o NVA has stated in written correspondence with AEA that they are currently drafting a PPF loan application for a planned hydrogen battery project which would utilize excess energy from its hydro facility, with a late October timeframe for application submission. In early October 2025, AEA provided NVA with a suggested template resolution concerning a waiver of sovereign immunity, which NVA being the named borrower would be required to be provide as per PPF regulations. AEA anticipates a loan request in the amount of approximately $4.9 million. • Old Harbor Native Corporation (OHNC) - $4.9 million - Application Pending o OHNC met with AEA on September 8, 2025, to discuss a PPF loan application in support of their planned ~300 kW run-of-river hydroelectric project. OHNC stated that they were still in the process of putting together their capital stack requirements, with the project estimated cost of construction at $36 million, with approximately $20 million in investment tax credits (ITC) available. The project is Alaska Energy Authority Page 2 of 2 approaching a complete final design with an 85% design completed. The current funding gap is estimated at $25 million dependent on the final cost estimate, with a prospective capital stack comprised of many sources including federal, state, and local funding. OHNC has been successful in securing a $10 million federal grant, a $1 million Denali Commission grant, Bureau of Indian Affairs community grant, and local funds contributed via OHNC. Of the $25 million required, OHNC is exploring funding options with AIDEA for $20 million to be secured with the project’s ITC, with the remainder being sought from AEA, via a $4.9 million loan from the PPF. Timing as to the submission of the PPF loan application is not yet known at this time, as it is dependent on OHNC’s securing of the remaining funds needed to construct the project. It is estimated that OHNC’s PPF loan application would be submitted in the first quarter of calendar year 2026. City of Atka – Late Loan Payment Atka is currently late on their semi-annual loan payment, we have assessed the necessary late charges and loan servicing has been routinely trying to get in contact with the City regarding their outstanding payment, we have the new address on file for Atka as was sent to us last time they were late in their payment. Atka is generally good at resolving outstanding payment issues and prompt payment of associated late fees. At this time, this matter of delinquent payment is not considered to be a risk of default. At times, it can prove challenging to receive responses from these rural and geographically remote communities. A billing notice with the associated late fee was sent to City of Atka on October 16, 2025. Loan Servicing is also coordinating with the Department of Commerce, Community, and Economic Development (DCCED) Division of Community and Regional Affairs’ (DCRA) Local Government Assistance (LGA) section for assistance in contacting the City of Atka concerning their overdue loan payment. PAYMENTS RECEIVED LATE FEES RECEIVED INTEREST + LATE FEES ($316,702)$88 $121,266 15 TOTAL # OF PPF LOANS LOAN DASHBOARD REPORT For Board Meeting on 10/30/2025 AEA POWER PROJECT LOAN FUND FISCAL YEAR-TO-DATE LOAN PORTFOLIO ACTIVITY (07/01/2025 - 9/30/2025) LOAN ACTIVITY EARNINGS LOAN CATEGORY STARTING BALANCE FUNDS DISBURSED ENDING BALANCE INTEREST RECEIVED AEA Power Project Fund $30,009,752 -$29,693,050 $121,178 LOAN PROGRAM SUMMARY Outstanding Loans $29,693,049.84 Uncommitted Cash Balance $10,348,217.14 Loan Commitments $490,143.78 Total Loan Program $40,531,410.76 1 $27,294.80 1.28% TOTAL # OF DELINQUENT LOANS LOANS DELINQUENT AMOUNT ($) % OF DELINQUENT LOANS ($) Page 1 TOTAL ($) $2,121,766 $362,822 $667,752 $7,489,668 $17,500,000 $2,041,186 $30,183,194 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 $2,121,766 --3 BRISTOL BAY $362,822 --1 LOWER YUKO- KUSKOKWIM $667,752 --2 RAILBELT $7,489,668 --5 SOUTHEAST $17,500,000 --1 YUKON-KOYUKUK/U TANA $1,551,042 $490,144 -3 TOTAL $29,693,050 $490,144 -15 AEA PPF LOANS BY PROJECT TYPE AEA PPF LOANS BY PROJECT TYPE - BALANCE (NEW & OUTSTANDING) PROJECT TYPE # OF PROJECTS PROJECT TYPE BALANCE HYDRO 4 HYDRO $20,831,012.23 DIESEL 4 SOLAR $5,540,044.91 SOLAR 3 TRANSMISSION $1,966,667.00 WIND 2 DIESEL $1,063,196.22 BIOMASS 1 WIND $740,376.82 TRANSMISSION 1 BIOMASS $41,896.44 Page 2 LOAN NUMBER ENERGY REGION PROJECT TYPE BALANCE PRINCIPAL INTEREST CHARGES DELINQUENCY STATUS ORIGINAL LOANAMOUNT REMAINING COMMITMENTS PAYMENTPERIOD 40901099 ALEUTIANS WIND $405,318.89 $815,575.00 ($618,623.75)$0.00 Current $815,575.00 $0.00 SemiAnnually 40901101 ALEUTIANS HYDRO $380,800.44 $705,818.00 ($314,284.53)$1,091.79 Late 90 Days $705,818.00 $0.00 SemiAnnually 40901112 RAILBELT HYDRO $1,614,564.82 $2,082,978.54 ($1,103,499.68)$0.00 Current $2,082,978.54 $0.00 SemiAnnually 40901115 TERM SOUTHEAST HYDRO $17,500,000.05 $20,000,000.00 $0.00 $0.00 Current $20,000,000.00 $0.00 Quarterly 40901118 RAILBELT WIND $335,057.93 $1,906,285.00 ($771,248.99)$0.00 Current $1,906,285.00 $0.00 SemiAnnually 40901132 ALEUTIANS HYDRO $1,335,646.92 $1,422,803.00 ($438,111.69)$0.00 Current $1,422,803.00 $0.00 Quarterly 40901133 LOWER YUKO-KUSKOKWIM DIESEL $119,541.28 $235,138.96 ($69,059.62)$0.00 Current $235,138.96 $0.00 Monthly 40901137 YUKON-KOYUKUK/U TANA BIOMASS $41,896.44 $117,000.00 ($21,639.65)$0.00 Current $117,000.00 $0.00 Monthly 40901139 BRISTOL BAY DIESEL $362,821.76 $498,185.78 ($117,037.22)$360.57 Current $498,185.78 $0.00 Quarterly 40901140 TERM YUKON-KOYUKUK/U TANA DIESEL $32,622.38 $57,196.79 ($6,353.27)$0.00 Current $57,196.79 $0.00 Monthly 40901143 RAILBELT SOLAR $483,105.19 $814,233.52 ($112,149.39)$0.00 Current $814,233.52 $0.00 SemiAnnually 40901148 LOWER YUKO-KUSKOKWIM DIESEL $548,210.80 $703,275.70 ($63,762.64)$0.00 Current $703,275.70 $0.00 Monthly 40901149 YUKON-KOYUKUK/U TANA TRANSMISSION $1,476,523.22 $1,476,523.22 ($152,736.20)$0.00 Current $1,966,667.00 $490,143.78 Monthly 40901151 RAILBELT SOLAR $4,594,940.00 $4,994,500.00 ($248,685.53)$0.00 Current $4,994,500.00 $0.00 Quarterly 40901153 RAILBELT SOLAR $461,999.72 $504,000.00 ($45,200.21)$0.00 Current $504,000.00 $0.00 Monthly Total: $29,693,049.84 $36,333,513.51 ($4,082,392.37)$1,452.36 $36,823,657.29 $490,143.78 LOANS BY ENERGY REGION 71 POWERPR 71 POWERPR 71 POWERPR 711 PPF AP 711 PPF AP 711 PPF AP ENERGY REGION # OF AEA PPFLOAN (ACTIVE)AEA PPF LOANBALANCE REMAINING LOANCOMMITMENTS NEW APPLICATIONS INPROCESS # OF NEW APPS INPROCESS TOTAL # OF LOANS TOTAL ALEUTIANS 3 $2,121,766.25 $0.00 0 3 $2,121,766.25 BRISTOL BAY 1 $362,821.76 $0.00 0 1 $362,821.76 LOWER YUKO-KUSKOKWIM 2 $667,752.08 $0.00 0 2 $667,752.08 RAILBELT 5 $7,489,667.66 $0.00 0 5 $7,489,667.66 SOUTHEAST 1 $17,500,000.05 $0.00 0 1 $17,500,000.05 YUKON-KOYUKUK/U TANA 3 $1,551,042.04 $490,143.78 0 3 $2,041,185.82 TOTALS 15 $29,693,049.84 $490,143.78 0 15 $30,183,193.62 LOANS BY PROJECT TYPE 71 POWERPR 71 POWERPR 71 POWERPR 711 PPF AP 711 PPF AP 711 PPF AP PROJECT TYPE # OF AEA PPFLOAN (ACTIVE)AEA PPF LOANBALANCE REMAINING LOANCOMMITMENTS NEW APPLICATIONS INPROCESS # OF NEW APPS INPROCESS TOTAL # OF LOANS TOTAL BIOMASS 1 $41,896.44 $0.00 0 1 $41,896.44 DIESEL 4 $1,063,196.22 $0.00 0 4 $1,063,196.22 HYDRO 4 $20,831,012.23 $0.00 0 4 $20,831,012.23 SOLAR 3 $5,540,044.91 $0.00 0 3 $5,540,044.91 TRANSMISSION 1 $1,476,523.22 $490,143.78 0 1 $1,966,667.00 WIND 2 $740,376.82 $0.00 0 2 $740,376.82 TOTALS 15 $29,693,049.84 $490,143.78 0 15 $30,183,193.62 AEA POWER PROJECT FUND LOANS BY ENERGY REGION DESCRIPTION ALEUTIAN WIND ENERGY, LLC CITY OF ATKA SOUTHFORK HYDRO, LLC HAIDA ENERGY, INC AK ENVIRONMENTAL POWER, LLC CITY OF KING COVE NEWTOK VILLAGE COUNCIL DBA UNGUSRAQ POWER COMPANY CITY OF GALENA ENERGY 49, LLC PENINSULA SOLAR, LLC NATIVE VILLAGE OF TANACROSS TANALIAN ELECTRIC COOPERATIVE, INC TAKOTNA COMMUNITY ASSOCIATION ALASKA RENEWABLE ENERGY PARTNERS, LLC CITY OF CHEFORNAK Page 3 LOAN NUMBER FUND NUMBER ENERGY REGION PROJECT TYPE TOTALLOAN AMOUNT BALANCE PRINCIPAL DELINQUENCY STATUS PAYMENT AMOUNT CHARGES NEXT PAYMENT DATE PAYMENT PERIOD 40901099 E2801 ALEUTIANS WIND $815,575.00 $405,318.89 $815,575.00 Current $32,516.80 - 1/1/2026 SemiAnnually 40901101 E2801 ALEUTIANS HYDRO $705,818.00 $380,800.44 $705,818.00 Late 90 Days $27,294.80 $1,091.79 7/1/2025 SemiAnnually 40901112 E2801 RAILBELT HYDRO $2,082,978.54 $1,614,564.82 $2,082,978.54 Current $55,518.09 - 1/1/2026 SemiAnnually 40901115 TERM E2801 SOUTHEAST HYDRO $20,000,000.00 $17,500,000.05 $20,000,000.00 Current $108,695.65 - 1/1/2026 Quarterly 40901118 E2801 RAILBELT WIND $1,906,285.00 $335,057.93 $1,906,285.00 Current $85,864.28 - 1/1/2027 SemiAnnually 40901132 E2801 ALEUTIANS HYDRO $1,422,803.00 $1,335,646.92 $1,422,803.00 Current $19,354.24 - 1/1/2026 Quarterly 40901133 E2801 LOWER YUKO-KUSKOKWIM DIESEL $235,138.96 $119,541.28 $235,138.96 Current $1,851.60 - 11/1/2025 Monthly 40901137 E2801 YUKON-KOYUKUK/U TANA BIOMASS $117,000.00 $41,896.44 $117,000.00 Current $1,179.22 - 11/1/2025 Monthly 40901139 E2801 BRISTOL BAY DIESEL $498,185.78 $362,821.76 $498,185.78 Current $9,014.33 $360.57 10/1/2025 Quarterly 40901140 TERM E2801 YUKON-KOYUKUK/U TANA DIESEL $57,196.79 $32,622.38 $57,196.79 Current $552.28 - 11/1/2025 Monthly 40901143 E2801 RAILBELT SOLAR $814,233.52 $483,105.19 $814,233.52 Current $14,091.30 - 1/1/2026 SemiAnnually 40901148 E2801 LOWER YUKO-KUSKOKWIM DIESEL $703,275.70 $548,210.80 $703,275.70 Current $5,746.02 - 10/1/2025 Monthly 40901149 E2801 YUKON-KOYUKUK/U TANA TRANSMISSION $1,966,667.00 $1,476,523.22 $1,476,523.22 Current $3,458.00 - 10/1/2025 Monthly 40901151 E2801 RAILBELT SOLAR $4,994,500.00 $4,594,940.00 $4,994,500.00 Current $85,653.35 - 1/1/2026 Quarterly 40901153 E2801 RAILBELT SOLAR $504,000.00 $461,999.72 $504,000.00 Current $5,942.94 - 10/1/2025 Monthly $36,823,657.29 $29,693,049.84 $36,333,513.51 $456,732.90 $1,452.36 PPF LOAN BALANCE # OF DELINQUENT LOANS $ % OF DELINQUENT LOAN TO PPF BALANCE No Payment Due 0 $29,693,049.84 1 1.28%Loan Current 14 Loan Past Due 1 Total Loans 15 AEA POWER PROJECT FUND LOAN - DELINQUENCIES DESCRIPTION ALEUTIAN WIND ENERGY, LLC CITY OF ATKA SOUTHFORK HYDRO, LLC HAIDA ENERGY, INC AK ENVIRONMENTAL POWER, LLC CITY OF KING COVE NEWTOK VILLAGE COUNCIL DBA UNGUSRAQ POWER COMPANY NATIVE VILLAGE OF TANACROSS TANALIAN ELECTRIC COOPERATIVE, INC TAKOTNA COMMUNITY ASSOCIATION ALASKA RENEWABLE ENERGY PARTNERS, LLC CITY OF CHEFORNAK 15 CITY OF GALENA ENERGY 49, LLC PENINSULA SOLAR, LLC # OF LOANS Page 4 Loan Number Commited Amount Amount Dispersed Remaining Amount Date Commited LOC Maturity Date 40901149 $1,966,667.00 $1,476,523.22 $490,143.78 4/14/2020 12/31/2026 $1,966,667.00 $1,476,523.22 $490,143.78 CITY OF GALENA Total: UNDISBURSED FUNDS OR PROJECTS NOT COMPLETED USING POWER PROJECT LOAN FUND Borrower Name DOCUMENTS COMPLETED Page 5 Loan Number Date Received Project Location Region Project Description Amount Requested Total: UNCOMMITTED POWER PROJECT LOAN APPLICATIONS Borrower Name Page 6 $12,883,497.87 + Unposted PPF AIM $32,863.05 + Unposted Ops AIM $0.00 -Remaining FY26 Budget Commitment'($1,039,000.00) -Remaining FY27 Budget Commitment ($1,039,000.00) $10,838,360.92 -Undisbursed Loan Commitments per attached ($490,143.78) $10,348,217.14 Uncommitted Cash Balance $10,348,217.14 - Pending applications per attached $10,348,217.14 Outstanding Loans $29,693,049.84 Uncommitted Cash Balance $10,348,217.14 Loan Commitments $490,143.78 Total Loan Program $40,531,410.76 UNCOMMITED CASH BALANCE POWER PROJECT LOAN FUND Cash balance per G/L 10236 Adjusted Cash Balance Uncommited Cash Balance Page 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 MEMORANDUM TO: Alaska Energy Authority Board THRU: Curtis. W. Thayer, Executive Director FROM: Conner Erickson, Director of Planning DATE: October 9, 2025 RE: Renewable Energy Fund (REF) Update REF Round 17 – Fiscal Year (FY) 2026 Update The $6.3 million in funding as appropriated by the Legislature in support of those top six recommended projects as selected for award for Round 17 became effective as of September 11, 2025. In seeking clarification from DCCED, it was found that the retroactivity clause found in the capital budget bill, Senate Bill 57, does in fact apply to the REF appropriation language and as such, these funds may be applied to grant reimbursements for in-scope project activities occurring on or after July 1, 2025. AEA project managers continue to actively prepare these Round 17 grant agreements for execution, working in coordination with those selected grantees. Owing to the time sensitive nature of the project as to FERC deadlines, the grant agreement for the City of Pelican was prioritized with the signed grant agreement effective as of September 29, 2025. REF Round 18 – Fiscal Year (FY) 2027 Update AEA issued its Request for Applications on July 14, 2025 with a corresponding submission deadline of September 12, 2025. As of the deadline, AEA received 35 applications comprising eight energy regions, seven renewable technologies and total grant request of $56 million. In AEA’s stage 1 review for project/applicant eligibility and application completeness, two applications were rejected. The first was rejected for late submittal, and the second was determined to be a duplicate submission. Upon AEA’s completion of its stage one review, 33 applications have progressed onto stage two, representing a total grant request of $53.9 million. Stage two is now underway and involves the review and evaluation of applications economic and technical feasibility, which is comprised of both review and evaluation by AEA staff, contracted third-party economist, and the State of Alaska Dept. of Natural Resources. Those applications which are successful in progressing onto stage three are then reviewed and evaluated against criteria including but not limited to, the regional cost of energy, project readiness, project sustainability, and local project support including REF matching funds. The stage three review also includes the assignment of a project ranking, based on the aggregate Alaska Energy Authority Page 2 of 2 score calculated from stages two and three. All projects which are successful in progressing onto stage three are included as part of AEA’s recommended project list for the respective fiscal year, although final recommended funding amounts may be reduced at AEA’s discretion. Stage 4, the final stage, involves meeting with and soliciting input from the Renewable Energy Fund Advisory Committee (REFAC), a nine-member committee comprised of four members of the legislature appointed by the Senate President and House Speaker, respectively, and six non-public members appointed by the Governor. For Round 18, the REFAC meeting is anticipated to take place in early January 2026. In consulting with the REFAC, the committee may provide input, including possible re-ranking of projects. Once those changes from the REFAC have been incorporated, AEA will then forward its list of recommended projects onto the legislature. Barring any unforeseen delays, AEA’s transmittal letter to the legislature for Round 18 is scheduled for the week of January 12th, in advance of the REF statutory deadline of January 30, 2025, 10 days after the start of the regular session. 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, RTO Program Manager DATE: October 16, 2025 RE: Railbelt Transmission Organization (RTO) Update The RTO filed a proposed open access transmission tariff (OATT) with the Regulatory Commission of Alaska (RCA) on July 1st, meeting its statutory deadline. The current filing seeks approval of the OATT’s terms and conditions and a formulaic revenue mechanism that is nondiscriminatory and consistent with Federal Energy Regulatory Commission standards. The RTO did not propose an inception cost of service in this filing and requested the OATT become effective at the time the RCA approves or accepts the RTO’s future initial cost of service filing. The RCA issued order U-25-028(1) suspending the RTO's tariff filing into a docket for investigation. The RCA opened two public comment periods on the RTO’s filing, and the RTO filed responses to comments received during both public comment periods. On September 12th, the RTO filed pre-filed direct testimony from five witnesses. The RCA approved the proposed procedural schedule and granted intervention to the twelve parties that petitioned for it. The RTO, the Office of the Attorney General, Regulatory Affairs and Public Advocacy Section (RAPA), and intervenors are required to file responses to issuing questions in U-25-028(1) by November 14th. Responsive testimony by RAPA and intervenors is due on October 22nd. The RTO’s reply testimony is due December 19th. A hearing is scheduled from February 17th through March 6th of 2026, as necessary. A final order in the docket is due June 4th. The RTO Governance Committee held public meetings on July 18, August 29, September 10, September 19, October 8, and October 17. During the September 19th meeting the Governance Committee passed Resolution No. 25-01 creating three RTO subcommittees - a finance subcommittee, a technical subcommittee, and a tariff subcommittee. 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: Leonard Robertson, IT Director Date: October 30, 2025 Subject: IT Update Updates: • AEA has completed conversion from on-premise SharePoint and Exchange infrastructure to Microsoft 365. Full transformation of our operational capabilities and security posture expected in the coming year. Currently, IT is focused on moving files to new file storage platform. • Phone system and network replacement in the building is underway and will continue over the next few months. • All major data systems have migrated to the cloud, and we are actively optimizing them from traditional on-premise setups to distributed Software-as-a-Service (SaaS) platforms. Cyber Security: • The IT strategy aligns with four core cybersecurity goals that help agencies mitigate up to 80% of cyber risk: o Multi-Factor Authentication (MFA) o Cybersecurity training o Network and risk segmentation. o Endpoint hardening through patching and security templates. • Working to schedule Mark Breunig from CISA to provide a cybersecurity brief for the AEA Board at the January Board Meeting. DATEROLEDESCRIPTIONLOCATIONTEAM MEMBERThursday, October 16, 2025 NewsletterAKEVWG Ocotber Newsletter Sent to 268 RecipientsEmailSara MartinchickTuesday, October 14, 2025 PresenterAEA Presentation to Alaska Power Association Accouting and Finance WorkshopIn Person - Anchorage, AKJim Mendenhall, Ryan McLaughlin, Josi HartleySeptember 29-October 1, 2025 AttendeeData Center World POWER 2025In Person - San Antonio, TX Curtis ThayerThursday, September 25, 2025 PresenterAEA Update Presentation to Alaska Power Association Annual Meeting In Person - Cordova, AKCurtis ThayerThursday, September 25, 2025 AttendeePower Power Challenge hosted by the Renewable Energy Alaska ProjectIn Person - Anchorage, AK Quinlan HarrisThursday, September 25, 2025 Media InquiryMertarvik and Akiak, Evan Erickson, KYUK Public Radio Phone CallCurtis ThayerFriday, September 12, 2025 Media InquiryElectric Vehicle (EV) Adoption Data, Alix Soliman, KTOOEmailBrandy DixonThursday, September 11, 2025 NewsletterAKEVWG September Newsletter Sent to 269 RecipientsEmailSara MartinchickWednesday, September 10, 2025 Media InquiryNational Electric Vehicle Infrastructure (NEVI) Plan Submission, James Bikales, PoliticoPhone CallCurtis ThayerMonday, September 8, 2025 Media InquirySolar for All, Jean Chemnick, E&E News (by Politico)Phone CallCurtis ThayerTuesday, September 2, 2025 Media InquiryFederal funding for EV chargers unfrozen, Shelby Herbert, Alaska Public MediaPhone CallCurtis ThayerTuesday, August 26, 2025 PresenterAEA Dixon Diversion Project Update Presentation to Chugach Electric Association BoardIn Person - Anchorage, AK Ryan McLaughlinTuesday, August 26, 2025 Media InquiryEV Funding Restored, Alan Bailey, Petroleum NewsPhone CallCurtis ThayerMonday, August 25, 2025 Media InquiryNEVI Program and Volkswagen Corridor Feedback, Alex DeMarban, ADNPhone CallCurtis ThayerWednesday, August 20, 2025 Media InquiryClean Energy Tax Credit Impacts in Cook Inlet, Zach Theiler, Cotext NewsEmailBrandy DixonTuesday, August 19, 2025 NewsletterAKEVWG August Newsletter Sent to 270 RecipientsEmailSara MartinchickFriday, August 15, 2025Exhibitor BoothAlaska State Fair: Energy DayIn Person - Palmer, AKSara Martinchick, Daniel Smith, Ashley Streveler, Dawn Molina Thursday, August 7, 2025 PresenterAEA Presentation to Alaska Native Science and Engineering ProgramIn Person - Anchorage, AK Quinlan HarrisWednesday, August 6, 2025 PresenterAEA Dixon Update Presentation to NHA Alaska Regional MeetingIn Person - Anchorage, AK Ryan McLaughlinWednesday, August 6, 2025 PanelistAnchorage Economic Development Corporation Energy Breakout SessionIn Person - Anchorage, AK Jim MendenhallTuesday, August 5, 2025Media InquirySolar for All Program, Tim Bradner, Alaska Economic Report/Alaska Legislative DigestEmailBrandy DixonWednesday, July 30, 2025 Media InquiryDenali Commission, Alena Naiden, Alaska Public MediaEmailBrandy DixonThursday, July 10, 2025HostNelson Lagoon Powerhouse Open HouseIn Person - Palmer, AK AEA TeamWednesday, July 2, 2025Media InquiryFederal Energy Tax Credits, Tim Bradner, Alaska Economic Report/Alaska Legislative Digest EmailBrandy DixonMonday, June 30, 2025HostBradley Lake Hydroelectric Project Site VisitIn Person - Homer, AK AEA TeamWednesday, June 25, 2025 Attendee/Presenter Alaska Sustainable Energy CorporationIn Person - Anchorage, AKConner Erickson, Tim Sandstrom,Friday, June 20, 2025MeetingRailbelt Transmission OrganizationIn Person - Anchorage, AKKaren Bell, Mark Billingsley, Bill Price, Curtis ThayerFriday, June 20, 2025MeetingIntertie Management CommitteeIn Person - Anchorage, AK Curtis ThayerFriday, June 20, 2025MeetingBradley Lake Project Management CommitteeIn Person - Anchorage, AK Curtis ThayerFriday, June 13, 2025MeetingRailbelt Transmission OrganizationIn Person - Anchorage, AKKaren Bell, Mark Billingsley, Bill Price, Curtis ThayerFriday, June 13, 2025Media InquiryGRIP Funding, Alan Bailey, Petroleum News Thursday, June 12, 2025NewsletterAlaska Electric Vehicle Working Group (AKEVWG) June Newsletter Sent to 274 RecipientsEmailSara MartinchickAEA COMMUNITY OUTREACHLast Updated on October 16, 2025 (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 DATEROLEDESCRIPTIONLOCATIONTEAM MEMBERThursday, June 12, 2025PresenterAEA Alaska's Largest Hydropower Facility Presentation to National Association of State Energy Officials (NASEO)In Person - Anchorage, AKRyan McLaughlin, Curtis ThayerJune 10-12, 2025Host/AttendeeNASEO Western Regional MeetingIn Person - Anchorage, AKBrandy Dixon, Ryan McLaughlin, Curtis ThayerThursday, June 5, 2025MeetingAEA and McKinley Management Meeting with Al Maskari Holding Chief Executive Officer Nabyl Al MaskariIn Person - Anchorage, AKMark Billingsley, Josi Hartley, Jim Mendenhall, Curtis ThayerTuesday-Thursday, June 3-5, 2025Attendee/Exhibitor Booth/Moderator/SpeakerFourth Annual Alaska Sustainable Energy Conference (ASEC)In Person - Anchorage, AKHannah Amick, Thomas Albert, Audrey Alstrom, Katherine Aubry, Saghar Ataian, Karen Bell, Brandy Dixon, Conner Erickson,Quinlan Harris, Josi Hartley, Sara Martinchick, Ryan McLaughlin, Dawn Molina, Bill Price Tran Smyth, Yosty Storms, Ashley Streveler, Curtis W. Thayer, Tasse Toli-Moana, Justin Tuomi, Karen Turner-ThernFriday, May 30, 2025Event/Exhibitor Booth Chugach Electric Association’s 12th Annual Member AppreciationIn Person - Anchorage, AKJosi Hartley, Quinlan Harris, Sara MartinchickThursday, May 29, 2025SurveyAlaska Solar for All Rural Utility Survey Sent to 176 RecipientsEmailBrandy DixonWednesday, May 28, 2025 MeetingRailbelt Transmission OrganizationIn Person - Anchorage, AKKaren Bell, Mark Billingsley, Bill Price, Curtis ThayerThursday, May 22, 2025MeetingAlaska Biofuels Advisory GroupVirtualSean ArcillaThursday, May 29, 2025EmailAlaska Solar for All May Newsletter Sent to 178 RecipientsEmailBrandy DixonTuesday, May 20, 2025AttendeeAlaska Geothermal Working GroupVirtualJosi HartleyFriday, May 16, 2025MeetingRailbelt Transmission OrganizationIn Person - Anchorage, AKKaren Bell, Mark Billingsley, Bill Price, Curtis ThayerFriday, May 16, 2025Media InquiryQuestions on Federal Funding and Impact to AEA Projects, Tim BradnerPhone CallBrandy DixonThursday, May 15, 2025NewsletterAKEVWG May Newsletter Sent to 278 RecipientsEmailSara MartinchickTuesday, May 6, 2025PresenterAEA Black Rapids Training Site Presentation to ASEC Virtual Workshop VirtualJim MendenhallFriday, May 2, 2025MeetingRailbelt Transmission OrganizationIn Person - Anchorage, AKKaren Bell, Mark Billingsley, Bill Price, Curtis ThayerFriday, May 2, 2025MeetingBradley Lake Project Management CommitteeIn Person - Anchorage, AK Curtis ThayerFriday, May 2, 2025MeetingIntertie Management CommitteeIn Person - Anchorage, AK Curtis ThayerFriday, May 2, 2025Media InquiryRenewable Energy Fund-Funded Solar Projects, Alyssa Goodman, Associated PressEmailBrandy DixonFriday, April 25, 2025PresenterAEA Power Cost Equalization and Rural Presentation to Legislative Assembly of Northwest Territories in CanadaVirtualTim Sandstrom, Curtis ThayerAEA Community OutreachPage 2 of 3 DATEROLEDESCRIPTIONLOCATIONTEAM MEMBERThursday, April 24, 2025PresenterAEA Power Cost Equalization and Rural Presentation to House Community and Regional Affairs CommitteeIn Person - Anchorage, AKTim Sandstrom, Curtis ThayerThursday, April 24, 2025MeetingAlaska Biofuels Advisory GroupVirtualSean ArcillaWednesday, April 23, 2025 PresenterAEA Solar for All Presentation to Alaska Infrastructure Development SymposiumIn Person - Anchorage, AK Audrey AlstromTuesday, April 22, 2025MeetingAlaska Energy Efficiency PartnershipIn Person - Anchorage, AK Josi Hartley, Shaylyn Storms,Friday, April 18, 2025MeetingRailbelt Transmission OrganizationIn Person - Anchorage, AKKaren Bell, Mark Billingsley, Bill Price, Curtis ThayerThursday, April 17, 2025Attendee/Speaker Resource Development Council Breakfast ForumIn Person - Anchorage, AK Curtis ThayerTuesday, April 15, 2025Event/Exhibitor Booth Anchorage Transportation FairIn Person - Anchorage, AK Josi HartleyAEA Community OutreachPage 3 of 3 https://www.kyuk.org/public-safety/2025-10-07/akiak-sets-timeline-for-restoring-power- but-clock-is-ticking-on-additional-repairs Public Safety Akiak sets timeline for restoring power, but clock is ticking on additional repairs KYUK | By Evan Erickson Published October 7, 2025 at 2:23 PM AKDT ADOT&PF The lower Kuskokwim River community of Akiak is seen in 2023. For weeks, Akiak has managed to get by without the use of its municipal power plant; the school and water treatment plant are running on backup generators. But for those relying on personal generators to keep the lights on and power freezers full of subsistence foods, the costs are high. "We're paying like, maybe $65 or more per day for gas so we don't lose our food, you know, food that we just stored for the winter," said Akiak Mayor Olinka Jones. Jones shared details about the situation on the ground as part of an emergency phone-in meeting held on Oct. 6. https://www.kyuk.org/public-safety/2025-10-07/akiak-sets-timeline-for-restoring-power- but-clock-is-ticking-on-additional-repairs Representatives from the Alaska Energy Authority (AEA) also joined the call. The state-run corporation has been providing assistance to Akiak during the power crisis. AEA said that a new generator engine is set to be shipped from Wasilla and could be powered up as early as next weekend. But getting Akiak’s main generator back up and running is only one part of the solution. AEA rural programs manager Chris McConnell explained that two additional generator engines housed at the power plant are also in need of repairs. At least one of them will be needed during the colder months. "In order to carry the load of the community's demand through the winter, you're going to need another engine to be operational," McConnell said. McConnell said that parts and labor for replacing a single diesel generator engine like those in Akiak can run around $120,000. He said that coming up with a strategy to avoid a similar situation in the future is critical. "Our concern as Alaska Energy Authority and concern for all of the community’s wellbeing and health is that: you have a new engine that you're going to be getting this weekend, is there a plan to ensure that it's being properly maintained? And what is the plan to get a second engine back online and properly maintained?" McConnell said. Power issues are not new for Akiak. In 2024, the community lost power twice due to mechanical issues: a five-day outage in the spring followed by a summer outage that lasted nearly two months. For now, the community is finding ways to get by. Donlin Gold and the Association of Village Council Presidents are both providing financial relief for fuel costs. The regional and local Alaska Native corporations and State Emergency Operations Center (SEOC) are also providing support. But as pointed out in the call, overall fuel levels in the community need to be monitored closely as dozens of smaller, less efficient generators burn through it. Additional obstacles remain. One community member reported that propane, which can be used to power cooking stoves, was out of stock at the local village corporation store as of Oct. 6. The caller also said as many as 20 households in the community of roughly 450 people were still without generators. With winter just around the corner, time is ticking for both a short-term solution and a longer term strategy for addressing Akiak’s power woes. On Oct. 8, the community plans to meet again to begin hammering out the details of a plan. https://www.kyuk.org/public-safety/2025-10-07/akiak-sets-timeline-for-restoring-power- but-clock-is-ticking-on-additional-repairs Tags Public Safety Alaska State NewsAkiakElectricity Evan Erickson Evan Erickson is a reporter at KYUK who has previously worked as a copy editor, audio engineer and freelance journalist. See stories by Evan Erickson One Biden green program gets new life under Trump https://www.politico.com/news/2025/10/05/states-scramble-for-charger-cash-despite-trumps-chill-on-evs-00585857 1/6 One Biden green program gets new life under Trump More than 40 states told POLITICO they have taken steps to unlock federal funding to build charging stations for electric vehicles. States are unlocking billions of dollars from the National Electric Vehicle Infrastructure program to fund EV chargers. | Mario Tama/Getty Images By JAMES BIKALES 10/05/2025 12:00 PM EDT President Donald Trump’s crusade to uproot the Biden administration’s big-spending climate programs has left a surprising survivor — the $5 billion effort to install electric car chargers from coast to coast. Trump mocked then-President Joe Biden’s notoriously slow-to-launch program as a “crazy” waste of money during last year’s campaign, while complaining that electric vehicles “don’t go far” and “cost a fortune.” But eight months after Trump’s agencies attempted to stanch the flow of EV charger money, a POLITICO analysis has found that more than 40 states are in the One Biden green program gets new life under Trump https://www.politico.com/news/2025/10/05/states-scramble-for-charger-cash-despite-trumps-chill-on-evs-00585857 2/6 process of unlocking their shares of the cash, with deep-red Texas and Montana among the first in line. At least 32 say they’ve gotten a yes from Washington. It’s a rare spot of good news for EVs, whose $7,500-per-vehicle federal tax credit officially sunsetted Wednesday. And so far, at least, the charger money seems to have survived the administration’s purge of clean energy spending during the government shutdown. The turnaround stems in part from a June federal court decision that ruled Trump’s freeze of the money illegal — an outcome that the administration uncharacteristically chose not to appeal. But it also reflects a growing reality: Millions of EVs are expected to hit the road in the coming years, regardless of Trump’s policies. And their drivers are going to need places to charge. “If you look at the states that are putting their [charging] plans and their money back into play the soonest, it’s really states that recognize their EV adoption rate is going to continue to climb,” said Joshua Rodriguez, program director for environment at the nonpartisan American Association of State Highway and Transportation Officials. “Red or blue or purple, it doesn’t really matter.” One Biden green program gets new life under Trump https://www.politico.com/news/2025/10/05/states-scramble-for-charger-cash-despite-trumps-chill-on-evs-00585857 3/6 Speeding up slowly By the time former President Joe Biden left office in January, the National Electric Vehicle Infrastructure program had installed just a few dozen charging stations nationwide, more than three years after Congress created the program in the 2021 infrastructure law. Now, it could be set for a major acceleration. When the Department of Transportation released new guidance for the program in August, loosening some Biden-era rules on how states can spend the money, Secretary Sean Duffy said he didn’t agree with “subsidizing green energy.” But if his department must dole out the cash, he said, he wanted to ensure that the chargers are actually built. “If Congress is requiring the federal government to support charging stations, let’s cut the waste and do it right,” Duffy said. Republicans’ policy changes are still expected to throw up major speed bumps to the growth of electric cars, however. Following Trump’s rollback of tax breaks, pollution rules and other pro-EV policies, battery- powered autos are expected to make up 27 percent of sales in 2030, down sharply from a previously projected 47.5 percent, according to the research firm BloombergNEF. (They accounted for 10 percent last year.) But the numbers of people driving EVs is still set to grow — Cox Automotive estimated that automakers sold a record 410,000 EVs in the U.S. during the quarter that ended Tuesday, as Americans raced to claim the tax credit before it expired. While government studies have found that 80 percent of EV charging takes place at drivers’ homes, “range anxiety” can often hold back drivers from taking long road trips in their electric cars. Only a few dozen NEVI-funded charging stations were completed by the time the Biden administration left office. | Ted Shaffrey/AP One Biden green program gets new life under Trump https://www.politico.com/news/2025/10/05/states-scramble-for-charger-cash-despite-trumps-chill-on-evs-00585857 4/6 The Trump administration suspended all new obligations under the NEVI program in February, saying it planned to rewrite its rules. By then, states had spent or obligated just $526 million of their allocated funds, or 16 percent, according to data released by DOT at the time. That meant the freeze affected more than $2.7 billion in unobligated funds, in addition to $885 million set to be allocated in 2026, the program’s final fiscal year. While some states continued work on projects during the pause, others suspended their programs and froze work on stations already under construction. The NEVI funding freeze became a flashpoint in Trump’s efforts to withhold funds for congressionally approved programs, sparking a clash between the Government Accountability Office and the White House. When a federal judge ruled in favor of a group of Democratic-led states that had sued to unlock their shares of the funds this summer, the administration declined to appeal. The new guidance that DOT issued in August largely kept the Biden administration’s rules but ditched a contentious requirement that chargers be placed every 50 miles along major highways. It also directed states to quickly submit updated implementation plans to access the funds. In the weeks since, at least 44 states and Washington, D.C., have submitted their plans, spokespeople for those states told POLITICO. At least 32 states said their plans have won approval from DOT’s Federal Highway Administration, giving them access to the frozen funds from previous years and fiscal year 2026. Texas, for example, will be able to access more than $350 million in charger funds now that its updated plan has won FHWA approval. The state already has 10 NEVI-funded stations open and another 211 stations in various stages of development. The private sector is expected to drive much of the growth of EV charging in the coming years, such as the IONNA network backed by major automakers. | Ted Shaffrey/AP One Biden green program gets new life under Trump https://www.politico.com/news/2025/10/05/states-scramble-for-charger-cash-despite-trumps-chill-on-evs-00585857 5/6 Other states can now move forward with their first projects. Montana unlocked more than $42 million with the approval of its plan, which calls for the construction of 49 stations. In a statement Friday, DOT spokesperson Nathaniel Sizemore said the Biden administration had added requirements to NEVI that were “difficult to understand and implement,” and that the huge amount of money that remained unobligated when the former president left office was “a clear signal of the program’s failure.” “Earlier this year, Secretary Duffy and the Federal Highway Administration launched a review of the program’s guidance to make the NEVI program more efficient,” Sizemore said. “If a [state’s] submitted plan meets the requirements detailed in the updated program guidance, it will be approved and the State’s NEVI funding will be made available for obligation.” State and industry officials said the rush to access the money was due to both pent-up enthusiasm for the charger cash and a positive reception to the flexibility offered under the new rules. “We’re already seeing states reengage and move more quickly toward accessing funds,” said David Piperno, chief financial officer at SparkCharge, an EV fleet charging provider. “The overall tone has shifted and there’s a new urgency to put these dollars to work.” Rodriguez said the Trump-era guidance allows states to place chargers at more popular locations than the Biden rules did, such as a national park or the center of a small town. Gas stations and truck stops have also embraced the new guidance, which favors locations where the charging operator also controls the land. “The strategic placement of these chargers is going to be a thousand times better,” Rodriguez said. “You’re going to see usage a lot higher, because the location of these will be based on potential usage, and not a prescriptive every 50 miles.” Curtis Thayer, executive director of the Alaska Energy Authority, which is administering the state’s NEVI program, said the new rules will allow it to place chargers along the Alaska Marine Highway System, a popular network of ferries that carry vehicles among the state’s many islands. The previous 50-mile standard was “very difficult to meet” in rural states like Alaska, he said, citing the example of a highway in south-central Alaska that has no communities for 78 miles during the winter. Another program unplugged While NEVI funds have started flowing again, the fate of another massive pot of charger cash remains uncertain. One Biden green program gets new life under Trump https://www.politico.com/news/2025/10/05/states-scramble-for-charger-cash-despite-trumps-chill-on-evs-00585857 6/6 In its final week in office, the Biden administration awarded $635 million under the Charging and Fueling Infrastructure program, which it said could fund more than 11,500 mostly lower- speed chargers in rural areas and at community gathering points. The administration never finalized those awards, and they’re still in limbo after Duffy ordered reviews of discretionary grants that clash with Trump’s priorities. The CFI program also holds more than $700 million in unawarded funds, which could go toward EV charging or to hydrogen and propane infrastructure. Jeff Prosserman, the CEO of Voltpost, which installs chargers that are integrated into streetlights, said his company has yet to receive any formal update on several CFI awards it received in January. The uncertainty, he said, is weighing on the charger industry. “People are pulling back from investing in this sector, period, over the last six months because everybody’s waiting to see what happens with the federal dollars,” Prosserman said. An FHWA spokesperson did not respond to questions on the future of the CFI program. Some analysts said the expected slowdown in EV sales after the tax credit expired would have one silver lining: It should allow the charging industry to catch up to a point where future drivers can feel more comfortable buying an EV. “There’s already a huge gap between the amount of EV cars that are out there and the need for more chargers,” said Andy Bennett, CEO of Driivz, a global EV software supplier. “Closing that gap is happening, and it’s still driving the heck out of the industry.” A recent report from the automaker trade group Alliance for Automotive Innovation found that only one public charger is available for about every 30 EVs on the road. The private sector, not the federal government, will ultimately fill that gap, said Bill Ferro, the co-founder of Paren, an EV charging data platform. Paren projects that 16,700 charging ports will open in the U.S. this year, with only around 500 funded by NEVI. While the federal funding is always welcome, “the industry is moving on,” Ferro said. NEWS GOV FUNDING These are the 321 awards DOE is canceling SCOOP All of the awards, totaling $7.5 billion, are for projects in blue states. OCTOBER 2, 2025 Photo credit: 19 STUDIO / Shutterstock The Department of Energy said this week it is canceling another tranche of funding, this time a total of 321 awards worth up to $7.5 billion. According to a list of all 321 terminated awards obtained by Latitude Media, every single canceled award was for a project in a Democrat-led state. The canceled funding ranges from several hundred million dollars for projects focused on reducing methane emissions from oil and gas operators, to a $50 million grant for RELATED READING ANALYSIS There aren’t enough lawyers left at the Department of Energy SEP 24, 2025 NEWS Report: DOE is in the midst of a historic labor shortage SEP 23, 2025 NEWS The ‘heartbreaking’ impact of canceling Solar for All SEP 23, 2025 MAEVE ALLSUP MAEVE ALLSUP MAEVE ALLSUP BIANCA GIACOBONE TECH MARKETS DEALS PODCASTS EVENTS RESEARCH RESOURCES COVERING THE NEW FRONTIERS OF THE ENERGY TRANSITION SUBSCRIBESEARCH 10/2/25, 10:16 AM These are the 321 awards DOE is canceling | Latitude Media https://www.latitudemedia.com/news/scoop-these-are-the-321-awards-doe-is-canceling/1/3 National Grid to add distributed energy resources to the Massachusetts electric grid. The vast majority of cancellations  200  target projects funded by the Office of Energy Efficiency and Renewable Energy. But it wasnʼt just renewable energy offices that were hit. The Office of Fossil Energy is canceling 68 awards, and the Grid Deployment Office is canceling 25 awards. Six awards from the Office of Manufacturing and Energy Supply Chains are being canceled, including a $5 million grant to ramp up domestic manufacturing of heat pumps, and another grant funding the buildout of new plants to process glass waste for use in low- emissions concrete. The Advanced Research Projects Agency-Energy, ARPAE, is canceling a single award: $550,000 for the University of Illinois to develop an open-source software tool to design and optimize floating offshore wind turbines. The news of the projectsʼ cancellation came initially via a tweet from Russ Vought, the director of the Office of Management and Budget, posted on the first day of the ongoing federal government shutdown.  SHARE Russ Vought @russvought ·Follow Nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda is being cancelled. More info to come from @ENERGY. The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA 10:09 AM · Oct 1, 2025 38.6K Reply Copy link Read 4.8K replies Maeve Allsup Stay ahead of energy's next frontier. Subscribe for free: Your work email address* S U B S C R I B E SUBSCRIBE 10/2/25, 10:16 AM These are the 321 awards DOE is canceling | Latitude Media https://www.latitudemedia.com/news/scoop-these-are-the-321-awards-doe-is-canceling/2/3 Akiak enters second week without power, Mertarvik restores power after 2-week outage KYUK | By Evan Erickson Published September 29, 2025 at 10:59 AM AKDT AKDOT&PF Akiak, Alaska Many residents in the lower Kuskokwim River community of Akiak are still relying on personal and backup generators to provide power a week after mechanical issues halted operations at the community’s power plant. A mechanic with Northern Generation and Power was en route to the community on Sept. 28, but is currently held up in Bethel waiting for additional parts, according to Akiak Mayor Olinka Jones. The contractor has worked on the community’s power system in the past. Around three-quarters of the 450-person community are using personal generators, with fuel selling for more than $7 per gallon. Jones said that the city is focused on efforts to get the power plant up and running in the coming days. "I know people are concerned about how they're going to be buying more fuel. Right now the city is concentrating on all the finances that support the generators," Jones Donate Coffee At KYUK Coffee At KYUK KYUK KYUK 10/1/25, 8:57 AM Akiak enters second week without power, Mertarvik restores power after 2-week outage https://www.kyuk.org/public-safety/2025-09-29/akiak-enters-second-week-without-power-mertarvik-restores-power-after-2-week-outage 1/6 said. Jones said that the city’s water plant and school are on generator power and remain operational, and that the school has provided access to its library for residents to charge phones and stay warm as temperatures dip. She said that she has not received reports of significant losses of subsistence foods due to the power outage. Meanwhile, roughly 100 miles west in the Nelson Island community of Mertarvik, power was finally restored on Sept. 26 following a two-week outage at that community’s power plant. According to tribal administrator Calvin Tom, the work was completed by the same contractor currently assisting Akiak and relied on additional assistance from a state- owned corporation that provides support for rural energy needs and has worked with both communities. "We’d been out of power for two weeks. AEA, Alaska Energy Authority, got involved, and they loaned us an engine that they had that fits our generator," Tom said. Tom said that he thinks around a quarter of the community’s roughly 300 residents had access to personal generators during the outage. He said that several people reported losing as much as half of their subsistence foods harvested over the summer due to the outage. Despite the challenges, Tom said that the community did find a way to keep power turned on for some of the community’s most vulnerable residents. "We had smaller generators that were powering the water plant, school, clinic, and then I noticed that it was underloaded. So we got the Elders hooked up, and they been on power for a week until we got the new generator in," Tom said. With Mertarvik’s main generator back online, Tom said that upgrades to a pair of smaller generators needed to power additional infrastructure planned for the community have become a priority. Tags Public Safety Alaska State News Akiak Electricity Evan Erickson Evan Erickson is a reporter at KYUK who has previously worked as a copy editor, audio engineer and freelance journalist. See stories by Evan Erickson Coffee At KYUK Coffee At KYUK KYUK KYUK 10/1/25, 8:57 AM Akiak enters second week without power, Mertarvik restores power after 2-week outage https://www.kyuk.org/public-safety/2025-09-29/akiak-enters-second-week-without-power-mertarvik-restores-power-after-2-week-outage 2/6 Mechanical failure leaves Akiak without power KYUK Published September 23, 2025 at 8:15 AM AKDT ADOT&PF The lower Kuskokwim River community of Akiak is seen in 2023. The lower Kuskokwim River community of Akiak is without power due to a mechanical failure at the city's power plant. It is not immediately clear what caused the issue that has affected the community since late Sunday. Akiak City Council member Olinka Jones said that the city is working with the Alaska Energy Authority, a state-owned corporation that provides support for rural energy needs, to come up with a plan. "We are working with AEA to get someone out here as soon as possible so that they could start working on the generator," Jones said. AEA has also stepped in to assist Akiak during previous power failures, including a series of extended outages that affected the community in 2024. Donate 1A Alaska Public Media / KSKA 9/23/25, 11:11 AM Mechanical failure leaves Akiak without power https://alaskapublic.org/news/2025-09-23/mechanical-failure-leaves-akiak-without-power 1/5 Jones said that it is too early to gauge the potential impact of the power outage on frozen subsistence food. She estimated that around 75% of households in the 450- person community are currently making use of personal generators to keep freezers running. Jones also confirmed that the community's school and water treatment plant are on generator power and remain operational. On Monday afternoon, Jones said that the city had issued a disaster declaration. As of that evening, the state had not also issued a disaster declaration, which could trigger additional support. In 2024, a former city administrator told KYUK that local municipal and tribal officials had asked for a state disaster declaration, but were denied due to the fact that the issue was a mechanical and maintenance failure and not a natural disaster. Jeremy Zidek, a spokesperson with the Alaska Division of Homeland Security and Emergency Management, said that whether Akiak receives a state disaster declaration for its ongoing outage will come down to whether it meets the legal requirements. "The damages would have to be eligible under our disaster statutes for the state of Alaska. Things like deferred maintenance or maintenance that wasn't completed is typically not eligible for our disaster recovery programs," Zidek said. Zidek said that there may be other ways the state can help and that state emergency responders are in contact with Akiak officials, as well as with the Yukon-Kuskokwim Health Corporation and the regional Native corporation. Copyright 2025 KYUK Latest News 1A Alaska Public Media / KSKA 9/23/25, 11:11 AM Mechanical failure leaves Akiak without power https://alaskapublic.org/news/2025-09-23/mechanical-failure-leaves-akiak-without-power 2/5 View this email in your browser View this email in your browser Alaska Electric Vehicle Working Group Newsletter, September 11, 2025 Sneak Peak: Inside This Year's NEVI Plan! The Alaska Energy Authority (AEA) and the Alaska Department of Transportation & Public Facilities (DOT&PF) submitted Alaska’s DRAFT FY26 Electric Vehicle Implementation Plan on September 10, and it’s a little different this time around. Following new federal guidance issued on August 11, 2025, this year’s plan is shorter, but no less important. We Want Your Input! Read the overview of the summary below or read the full plan here, then let us know what you think about the FY26 Plan. 📅Attend our Working Group on September 25, 2025, beginning at 11:30 a.m. to learn about this year’s plan update 👤In person at the Alaska Energy Authority 813 W Northern Lights Blvd, Anchorage, AK 99503 💻Or via ZOOM https://mbakerintl.zoom.us/j/86080284797 Meeting ID: 860 8028 4797 Passcode: 037935 Questions or feedback? Email us at electricvehicles@akenergyauthority.org Outlook AEA EV News: Sneak Peak Inside This Year's NEVI Plan! From Alaska Energy Authority <bdixon@akenergyauthority.org> via mailchimpapp.net Date Thu 9/11/2025 4:04 PM To Sara Martinchick <sbmartinchick@akenergyauthority.org> 9/26/25, 3:21 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAKgH20bWcQtPvVwqj93Wr%2BE%3…1/7 Why is this year's plan shorter? The Federal Highway Administration’s (FHWA) National Electric Vehicle Infrastructure (NEVI) Program Interim Final Guidance intends to streamline the NEVI planning and review process. Alaska’s FY26 Plan was required to contain content on just three core areas: 1. A description of how the state plans to use each fiscal year's NEVI funds (2022-2026) 2. A Community Engagement Outcomes Report 3. A description of physical and cyber security strategies States can still include additional information, but FHWA will only formally review these three components. We opted to include two appendices to the document to give more context to our plan. Below is an overview of the three required sections as well as the two appendices. NEVI Program Obligated Funds to Date & Distribution Alaska is set to receive over $52 million in NEVI formula funding between FY22 and FY26. The FY26 Plan outlines a strategic approach to deploying these funds: 9/26/25, 3:21 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAKgH20bWcQtPvVwqj93Wr%2BE%3…2/7 Phase 1 (2025–2026): Focused on building out the Alternative Fuel Corridor (AFC) between Anchorage and Fairbanks. Nine sites were selected through the previous request for applications with an anticipated $5.5 million allocated for construction along the AFC. Tesla’s independent deployment of four sites could accelerate the AFC’s fully built out status if the sites are deemed creditable, potentially allowing Phase 2 to begin sooner. Phase 2 (2026–2028): Expands infrastructure to rural hub communities, urban destinations, and the Alaska Marine Highway System. With $43.8 million still available for projects, Alaska could install up to 49 additional NEVI-compliant stations off the AFC, depending on site needs. Flexibility in Design and Spacing: Under the new guidance, states are no longer required to place stations exactly 50 miles apart along the AFC. Instead, FHWA encouraged states to consider “the appropriate distance between stations to allow for reasonable travel and certainty that charging will be available.” Based on public input and Alaska’s unique geography, the Plan recommended charging stations to be spaced no more than 100 miles apart along the AFC. While AFC sites must meet strict standards (e.g., four 150kW DC fast charging ports), Phase 2 sites may include Level 2 chargers or mixed configurations, allowing for tailored solutions based on grid capacity and community needs. Community Engagement Outcomes Report Statewide Participation: AEA received input from residents in over 60 communities, including rural villages, urban centers, and ferry-connected towns. This feedback helped prioritize locations for Phase 2 deployment. Collaborative Planning: The Alaska EV Working Group and Technical Sessions brought together utilities, local governments, EV drivers, and industry experts to discuss real-world challenges and opportunities, from grid readiness to winter charging performance. Transparency & Access: All meeting materials, including recordings and presentation materials, were made publicly available on the AEA website to ensure transparency and encourage continued engagement. Past newsletter articles are also available on the website. 9/26/25, 3:21 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAKgH20bWcQtPvVwqj93Wr%2BE%3…3/7 Physical and Cybersecurity Strategies Site Design: Stations will be located in well-lit, visible areas to enhance safety, especially during long winter nights. Other security methods could include cameras or staffed facilities. Selection Criteria: Physical safety, specifically access to lighting, was a scoring factor in site selection to prioritize secure environments for users. Vendor Responsibility: Third-party operators must meet federal cybersecurity standards. Vendors must implement secure configurations, encrypted communications, and continuous monitoring. Appendix A: Existing Conditions This appendix provides an overview of Alaska’s geography, climate, transportation infrastructure, and energy grid capacity. Key highlights include: Geographic Challenges: Alaska’s vast size, low population density, and limited road connectivity make EV infrastructure deployment uniquely complex. Transportation Landscape: 82 percent of roads are rural and 65 percent are unpaved. Many communities are accessible only by air or ferry. Grid Capacity: Railbelt utilities have sufficient reserve margins to support NEVI-compliant DC fast charging stations along the AFC. Current Infrastructure: Alaska has 63 public EV charging locations, but many do not meet NEVI standards. Significant gaps remain, especially in remote areas. Appendix B: Trends Evaluation This appendix analyzes EV adoption trends and forecasts future growth in Alaska. Key insights include: EV Growth: As of May 2025, Alaska has 3,916 registered Battery Electric Vehicles (BEVs), a 27 percent increase year-over-year. Plug-in hybrids 9/26/25, 3:21 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAKgH20bWcQtPvVwqj93Wr%2BE%3…4/7 (PHEVs) are also growing rapidly. Vehicle Preferences: SUVs and pickup trucks dominate Alaska’s market. Forecast Scenarios: By 2026, Alaska could reach between 7,500 and 14,000 EVs (including both BEV/PHEV) depending on growth rates. Regional Trends: Anchorage leads in total registrations, while Juneau and Sitka have the highest EV penetration rates. 9/26/25, 3:21 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAKgH20bWcQtPvVwqj93Wr%2BE%3…5/7 Trapper Creek Superchargers are now Online! Located in the parking lot of Three Bears, the Tesla Supercharger site in Trapper Creek came online earlier this week. Tesla’s Supercharger map states that there are eight chargers online that can deliver up to 325 kW. Tesla owners will pay $0.47/kWh and other EV owners will pay $0.66/kWh to charge their vehicles. A CCS1 Magic Dock Adapter is available for use. The site features an accessible parking spot and a pull through spot specially designed to accommodate vehicles hauling trailers. 9/26/25, 3:21 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAKgH20bWcQtPvVwqj93Wr%2BE%3…6/7 Facebook LinkedIn Website Copyright © 2025 Alaska Energy Authority, All rights reserved. Alaska EV Work Group Listserv Subscribers Our mailing address is: Alaska Energy Authority 813 W Northern Lights Blvd Anchorage, AK 99503-2407 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. 9/26/25, 3:21 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAKgH20bWcQtPvVwqj93Wr%2BE%3…7/7 Trump administration reopens program that could bring more EV chargers to Interior Alaska KUAC | By Shelby Herbert Published September 4, 2025 at 11:50 AM AKDT Shelby Herbert /KUAC The Flo chargers in the Golden Valley Electric Association parking lot are among Fairbanks residents' dwindling options to charge up their electric vehicles. A plan to bring more high-speed electric vehicle charging stations to Alaska is back on track after the Trump administration reopened a federal program in mid-August for expanding EV infrastructure. The move also loosened some requirements for how and where the charging stations can be installed. Demand for electric vehicles is up around the state. But unlike Anchorage and Juneau, EV owners in the Interior have limited charging options. Stations that actually work are scarce on the state’s highways. State and municipal entities had plans to bring more charging stations to Alaska with federal funds from the National Electric Vehicle Infrastructure program. But progress Donate BBC World Service KUAC 9/16/25, 12:16 PM Trump administration reopens program that could bring more EV chargers to Interior Alaska | KUAC.org https://fm.kuac.org/2025-09-04/trump-administration-reopens-program-that-could-bring-more-ev-chargers-to-interior-alaska 1/3 stalled in February when the Trump administration put the program under review and froze funding. Curtis Thayer directs the Alaska Energy Authority, which oversees the state project to put more charging stations on the highway system. He said the new requirements are easier for Alaska to meet, which might put the project ahead of schedule even after the six-month holdup. “The old plan had to have a certain size of chargers, which were oversized for a lot of our communities, and they cost a lot of money,” Thayer said. “Also, we had to have stations within 50 miles of each other.” Now that funds are flowing again, the state Energy Authority expects about $50 million from the program. It plans to put nine charging stations on the Parks Highway, which connects Fairbanks to Anchorage, with work to begin next summer. After that, Thayer said they’ll look at putting stations on other highways and in some coastal communities. “Juneau, Ketchikan, Sitka, Kodiak, Yakutat, Cordova… Wherever the ferries happen to go,” he said. “We have several years worth of work to do.” Federal funding has also thawed for a $2.5 million project to install charging stations around Fairbanks. The Fairbanks Area Surface Transportation Planning Technical Committee will reopen its call for site hosts on Oct. 1. Correction: A previous version of this story incorrectly quoted Curtis Thayer about the number of miles the old NEVI regulations required between charging stations. Tags News Alaska Desk Electric Vehicles Shelby Herbert See stories by Shelby Herbert BBC World Service KUAC 9/16/25, 12:16 PM Trump administration reopens program that could bring more EV chargers to Interior Alaska | KUAC.org https://fm.kuac.org/2025-09-04/trump-administration-reopens-program-that-could-bring-more-ev-chargers-to-interior-alaska 2/3 ECONOMY & ENVIRONMENT GOVERNMENT & POLITICS With gas crunch looming, Alaska utilitieswon’t get big wind before tax credits expire One leader points to private developers and Republicans’ budget package, but advocates say utilities share the blame BY:NATHANIEL HERZ, NORTHERN JOURNAL -SEPTEMBER 1, 2025 5:00 AM ✉⎙  Wind turbines turn in Kodiak on May 14, 2018. (Photo by Dennis Schroeder/NREL) For years, urban Alaska utilities have been studying large-scale wind farms that could help break the state’s dependence on natural gas power — encouraged by the potential for hundreds of millions of dollars in tax credits from the federal government. Next summer, however, those tax credits will largely disappear for projects that haven’t started construction, a consequence of the tax bill that President Donald Trump signed in July. PART OF STATES NEWSROOM  9/2/25, 8:51 AM With gas crunch looming, Alaska utilities won't get big wind before tax credits expire | Alaska Beacon https://alaskabeacon.com/2025/09/01/with-gas-crunch-looming-alaska-utilities-wont-get-big-wind-before-tax-credits-expire/?emci=3a3e373d-4e85-f01…1/10 Clean energy advocates, and U.S. Sen. Lisa Murkowski, had said they hoped that Alaska wind projects could still advance in time to qualify. But in recent weeks, board members and executives at the cooperatively owned utilities have acknowledged that the timeline now appears too short — which means any large-scale projects will now have to be built without the generous federal subsidies, or wait to see if Congress reestablishes a more favorable tax regime. Critics say the absence of major new renewable projects will leave the state dependent on imported, liquefied natural gas and could make consumers vulnerable to price spikes. “There’s an argument to be made that these electric cooperatives, whose boards have a fiduciary responsibility to the member-owners, have really frittered away one of the greatest opportunities they’ve ever had to deliver hundreds of millions of dollars of value to their members,” said Phil Wight, an energy historian and professor at University of Alaska Fairbanks. “At the highest level, I think that’s a fair argument.” Since Congress approved expanded tax credits in 2022, Alaska has seen no large-scale wind or solar projects begin construction, while other states like Wyoming and Texas have received billions of dollars in clean energy investment. At a recent meeting, board members at Golden Valley Electric Association, the utility that generates power for Fairbanks area residents and mines, rejected a developer’s bid to advance a large- scale wind farm on a schedule driven by the expiring tax credits. Utility officials said there was still too much uncertainty about final pricing and whether the project could capture the credits. Meanwhile, officials at Anchorage-based Chugach Electric Association, the state’s largest power utility, say that another large wind project they’ve been studying with the same developer also won’t be ready to start construction in time to qualify for the credits. Jim Nordlund, a Chugach Electric Association board member, said that if the Anchorage-area project had captured the credits, it was still far from clear that it could have provided power more cheaply than his utility’s existing natural gas plants. 9/2/25, 8:51 AM With gas crunch looming, Alaska utilities won't get big wind before tax credits expire | Alaska Beacon https://alaskabeacon.com/2025/09/01/with-gas-crunch-looming-alaska-utilities-wont-get-big-wind-before-tax-credits-expire/?emci=3a3e373d-4e85-f01…2/10 That’s even assuming prices will rise when local fuel supplies dry up and utilities begin importing liquefied natural gas in the next few years, added Nordlund, a self-described clean energy advocate. The price of renewable power generally, he said, “is really high.” Alaskans who are frustrated about the pace of wind and solar development shouldn’t blame the urban utilities, Nordlund added. Private companies, not the utilities themselves, have been advancing projects that failed to materialize, he said, and politics also played a big role. “If you want to blame anybody for this, it would be that big bad bill. That’s what Trump wanted to do, and it worked,” Nordlund said. “It shut down, at least for the time being, our projects.” But renewable energy boosters say that the urban utilities deserve at least some share of the blame for not advancing projects more urgently while the tax credits were in place. The utilities could have developed large wind developments themselves, those advocates argue — or they could have done more to create a stable and attractive market for private developers. “The utilities are uniquely bureaucratic and expensive in their own self-development. And they’re uniquely bureaucratic and obstinate and slow if a private company is developing,” said Ethan Schutt, who formerly managed the energy assets of an Indigenous-owned regional corporation. Advocates say utility leaders have also failed to endorse, and in some cases outright opposed, legislation proposed multiple times in recent years to establish renewable energy quotas — which they say could have encouraged more private developers to work in the state. Large-scale power projects “need to be thoughtfully implemented,” Natalie Kiley-Bergen, energy lead at an advocacy organization called Alaska Public Interest Research Group, said in an email. “Had more progress been made in the last five years — even the last 15 years — to create a competitive market environment with regulatory and economic certainty for these projects, we could have seen responsible project commitments regardless of federal changes,” Kiley-Bergen said. “Not capitalizing on these tax credits is a product of years of moving slowly on the tremendous opportunities to diversify our energy generation.” 9/2/25, 8:51 AM With gas crunch looming, Alaska utilities won't get big wind before tax credits expire | Alaska Beacon https://alaskabeacon.com/2025/09/01/with-gas-crunch-looming-alaska-utilities-wont-get-big-wind-before-tax-credits-expire/?emci=3a3e373d-4e85-f01…3/10 A risk of price spikes? After its initial discovery in the 1950s, Cook Inlet, the offshore and onshore petroleum basin southwest of Anchorage, produced huge quantities of natural gas. There was enough fuel to generate not just the vast majority of the region’s electric power, but also to supply plants that produced fertilizer and exported gas in liquefied form to Asia. But those plants have now closed amid Cook Inlet production declines. And for more than a decade, the urban electric utilities have been contending with risk that gas supply won’t be adequate to meet demand. Generous state tax credits temporarily approved by lawmakers in 2010 helped stimulate new drilling, but only temporarily, and they were subsequently repealed. Three years ago, Cook Inlet’s dominant producer, Hilcorp, warned utilities that they should not expect new long-term commitments of gas when their existing contracts expire in the coming years. Clean energy advocates say that Alaskans’ dependence on gas-fired power — Chugach Electric Association generates 87% of its power from the fuel — makes residents vulnerable to both supply disruptions and fluctuations in price. The utilities have responded to the looming local gas shortfall with plans for new infrastructure that could offload imported liquefied natural gas, known as LNG, shipped from Canada or the Gulf of Mexico. But unlike gas from Cook Inlet, which producers have long sold at a fixed cost, utilities would likely have to buy LNG at rates that swing with the market, similar to the price of oil, according to Antony Scott, an analyst at the Renewable Energy Alaska Project advocacy group who once studied petroleum pricing for Alaska’s state government. Given the risk of price spikes that could translate into higher electricity prices for consumers, diversifying with new wind and solar development should be a “no-brainer,” Scott said. “It’s just like an investment portfolio. Do you want to invest only in Tesla?” Scott said. “A rational, prudent investor would have a diversified portfolio.” 9/2/25, 8:51 AM With gas crunch looming, Alaska utilities won't get big wind before tax credits expire | Alaska Beacon https://alaskabeacon.com/2025/09/01/with-gas-crunch-looming-alaska-utilities-wont-get-big-wind-before-tax-credits-expire/?emci=3a3e373d-4e85-f01…4/10 Scott’s advocacy group, and others in Alaska, have pushed the utilities to diversify, in part through lobbying for the creation of the renewable energy quotas. They cite analyses like a study released last year by the National Renewable Energy Laboratory, which found that new renewables would be cheaper than burning gas in existing plants and, by 2040, could meet up to 80% of demand. “Ratepayers in Alaska have been saying, for a long time, that we need renewable energy projects here at home, and we need to be capturing energy here at home,” said Alex Petkanas, clean energy and climate program manager at the Alaska Center conservation group. “This is not something that is a surprise — that our local natural gas supply is ending, and we need to replace that with new generation.” A rejected agreement Utility staff and board members agree that they need to diversify away from gas, with the chief executive of Matanuska Electric Association saying in 2022 that it was “untenable” to continue generating 85% of power from one type of fuel. Chugach Electric Association aims to cut its carbon emissions in half by 2040, which would likely require sharp reduction in its use of natural gas. And a Golden Valley Electric Association strategic plan approved last year calls for the utility to finalize agreements with private developers to bring on “large-scale wind resources” at prices that will lower members’ power costs. None of those utilities have moved to build major wind or solar farms themselves; instead, they’ve looked to private companies to do the construction and sell the power onto the grid. Just one firm, Longroad Energy, has advanced large-scale wind projects on a timeline that could have qualified for the expiring tax credits. One is outside Anchorage in Chugach Electric Association’s region, and one is outside Fairbanks, in Golden Valley Electric Association’s region. The Fairbanks area project, known as Shovel Creek Wind, could produce one-third of the power consumed by Golden Valley’s members — and even generate more than 100% of their demand at certain times, depending on the size of the development, said Golden Valley’s chief executive, Travis Million. 9/2/25, 8:51 AM With gas crunch looming, Alaska utilities won't get big wind before tax credits expire | Alaska Beacon https://alaskabeacon.com/2025/09/01/with-gas-crunch-looming-alaska-utilities-wont-get-big-wind-before-tax-credits-expire/?emci=3a3e373d-4e85-f01…5/10 But at a July board meeting, Golden Valley’s board members rejected an agreement that Longroad had proposed to keep the project on a timeline to qualify for the credits. Golden Valley, said Million, still needed more time to finish a study of how much it would have to spend on infrastructure upgrades and its existing fossil fuel plants in order to accommodate power from the new wind project. Utilities must balance swings in power production that stem from the natural variability of wind. “Without having that step done, there’s just so much uncertainty about the cost. And not knowing what that end result would be to our members, we just could not commit,” Million said in a recent interview. The details of the proposed agreement — including Longroad’s estimated pricing — are confidential under a non- disclosure agreement. There was additional uncertainty, Million added, about whether the Trump administration, which has been hostile to wind power, would grant the credits even if Shovel Creek advanced on the required timeline. But Million also acknowledged that the utility could have done more work earlier to speed up the process. “We should have done a lot of these studies on the front end, to really understand sizing and needs on Golden Valley’s system, before we really started going down this path with trying to find developers,” Million said. Longroad, through an Anchorage-based consultant, declined to comment. Million said that Golden Valley plans to finish its study and hasn’t ruled out advancing Shovel Creek on a slower timeline than Longroad’s proposal. The utility is also studying a substantial, if smaller, wind project that could still qualify for the tax credits. “We have to take control” In Anchorage, meanwhile, officials with Chugach Electric Association said that Longroad’s work on the nearby Little Mount Susitna wind project slowed as the company focused on advancing Shovel Creek. The developer, said Chugach board member Nordlund, isn’t ready to make the initial investment in Little Mount Susitna and couldn’t 9/2/25, 8:51 AM With gas crunch looming, Alaska utilities won't get big wind before tax credits expire | Alaska Beacon https://alaskabeacon.com/2025/09/01/with-gas-crunch-looming-alaska-utilities-wont-get-big-wind-before-tax-credits-expire/?emci=3a3e373d-4e85-f01…6/10 do the continuous work required in order to take advantage of the tax credits — though the utility, he added, hasn’t given up on the project moving forward in the future. Nordlund ran for the Chugach board in 2023 as an advocate for wind and solar, saying then that “the time to act on renewables is now.” But he said in a recent interview that there’s “misinformation” circulating that utilities are dismissing proposed wind and solar developments that would generate power more cheaply than natural gas, when that’s not clearly the case. Chugach has its own non-disclosure agreement with Longroad that Nordlund said bars him from getting specific about prices. But speaking generally, he added, Alaska is a tough market for private developers, compared to the Lower 48 and foreign countries where they otherwise might invest. Construction costs in Alaska are higher given the remote setting, harsh environment and lack of contractors competing for business, Nordlund said; the relatively small consumer base also means that developers can’t capture economies of scale. “I think we need to create a better climate for independent power producers to do business in Alaska,” Nordlund said. The stalled legislation to establish renewable energy quotas could have helped, he added, by giving those private developers more certainty that the utilities were “serious” about bringing on wind and solar projects. “More could have been done,” he said. Nonetheless, Nordlund said he thinks the inherently “conservative” culture of Alaska’s utilities is changing, with executives increasingly open to accommodating wind and solar power. Chugach officials say the utility is still pursuing renewables and remains open to proposals from developers — though they are now refocusing on more modest projects that they can advance in-house, at least in the early stages. Viable projects could then, potentially, be handed off to private developers. At meetings in recent weeks, board and staff members have discussed a small-scale solar farm that Chugach is studying at the site of one of its existing gas power plants on the far side of Cook Inlet. 9/2/25, 8:51 AM With gas crunch looming, Alaska utilities won't get big wind before tax credits expire | Alaska Beacon https://alaskabeacon.com/2025/09/01/with-gas-crunch-looming-alaska-utilities-wont-get-big-wind-before-tax-credits-expire/?emci=3a3e373d-4e85-f01…7/10 They’ve also heard a presentation from a consultant who is examining potential sites for new hydroelectric development, though those projects would face a lengthy permitting process. “We now have to take control and get in the lead,” Dustin Highers, Chugach’s vice president for corporate programs, said at a recent board meeting. But some experts like Wight, the energy historian, remain skeptical that those efforts will end up displacing very much gas, with the exception of the smaller wind project in the Fairbanks area that he said could still “make a real difference.” Pursuing smaller projects with better coordination between regions could be a better strategy, Wight said. But failing that, he said he expects utilities to largely continue their dependence on natural gas — whether through imported LNG, or through a proposed pipeline project from Alaska’s North Slope that’s struggled to secure commitments from investors. “They’re going to dabble a little bit in renewables here and there, and then they’re just going to hope for cheap gas,” Wight said. “As a state, we’ve been so oil- and gas-dependent for so long that I do think there’s a cultural barrier there, to bring in the new folks who want to think differently.” Nathaniel Herz welcomes tips at natherz@gmail.com or (907) 793- 0312. This article was originally published in Northern Journal, a newsletter from Herz. Subscribe at this link. ANCHORAGE FAIRBANKS KOTZEBUE MATANUSKA-SUSITNA BOROUGH REPUBLISH 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. 9/2/25, 8:51 AM With gas crunch looming, Alaska utilities won't get big wind before tax credits expire | Alaska Beacon https://alaskabeacon.com/2025/09/01/with-gas-crunch-looming-alaska-utilities-wont-get-big-wind-before-tax-credits-expire/?emci=3a3e373d-4e85-f01…8/10 Providing coverage of Alaska and northern Canada's oil and gas industry August 2025 Vol. 30, No.35 Week of August 31, 2025 EV charging station funding re-instated Alan Bailey for Petroleum News The federal government has re-activated funding under the National Electric Vehicle Infrastructure, or NEVI, funding program, to support the installation of high-speed charging stations for electric vehicles in Alaska. The U.S. Department of Transportation had suspended the program in early February following a policy review by the USDOT under the new federal administration. Curtis Thayer, executive director of the Alaska Energy Authority, has told Petroleum News that AEA needs to update its plan under the funding mechanism and file it with the DOT by mid-September. AEA has been managing programs for installing high-speed charging stations in Alaska. Thayer commented that a problem with the program has been delays in obtaining federal approval for planned sites for charging station installations and that AEA had been waiting for more than two years for these approvals. AEA had applied for the approval of nine charging station sites, Thayer said. AEA has thus far been focusing on the installation of charging stations along the highway system that follows the Alaska Railbelt. Several years ago the agency helped fund the installation of some high speed, commercial EV charging stations on the highways, using funds from a settlement with Volkswagen over the company's fraudulent manipulation of emissions testing on its diesel vehicles, and from the U.S. Department of Energy's State Energy Program. The proposed nine further charging stations would be located along the highway corridor between Anchorage and Fairbanks. Given that this year's construction season is already coming to an end, AEA hopes that the USDOT can approve the sites in a timely fashion by next spring. And once these stations have been installed it will be possible to investigate installing charging stations elsewhere on the highway system and in other regions of the state, Thayer said. --ALAN BAILEY Petroleum News - Phone: 1-907 522-9469 circulation@PetroleumNews.com --- https://www.petroleumnews.com --- Providing coverage of Alaska and northern Canada's oil and gas industry August 2025 Vol. 30, No.35 Week of August 31, 2025 Federal funding for solar energy cancelled Alan Bailey for Petroleum News The U.S. Environmental Protection Agency has notified the Alaska Energy Authority that the federal government has cancelled funding under the Solar for All program that had been authorized by the Inflation Reduction Act passed in 2022. EPA had awarded AEA a grant of $62.5 million under the program for the deployment of solar photovoltaic projects across the state. The grant money was to have been split between AEA and the Tanana Chiefs Conference for the funding support of various solar energy projects both in rural Alaska and in the Alaska Railbelt. No cost matching was required from grantees. At this point no projects have been impacted because the funding program had not gone into operation, AEA has indicated. In rural Alaska communities have been installing wind and solar power generation systems to reduce their dependency on diesel fueled power generation. Diesel generation is very expensive for these communities, especially given the high cost of shipping fuel to remote locations. In the Railbelt there is interest in the use of solar energy to offset some of the need for electricity produced from gas fueled power generation systems, given pending shortages in gas supplies from the Cook Inlet basin. AEA had planned funding for communities in rural Alaska, for low income homeowners in urban and suburban areas and for appropriate labor and workforce development for solar energy. Tanana Chiefs Conference had planned solar energy programs for tribal communities and low income Alaska Native and American Indian households in the Railbelt and other large utility service areas, and for tribal communities in rural Alaska. --ALAN BAILEY Petroleum News - Phone: 1-907 522-9469 circulation@PetroleumNews.com --- https://www.petroleumnews.com --- S U B S C R I B E Copyright Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA)�1999-2019 All rights reserved. The content of this article and website may not be copied, replaced, distributed,published, displayed or transferred in any form or by any means except with the prior written permission of Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA). Copyright infringement is a violation of federal law. e-Edition ●Today's Paper ●Games - New!●Obituaries ●ADN Store ●Promotions ● Sponsored Content ●Manage account ADVERTISEMENT Business/Economy After Trump administration reversal, $50M plan to expand electric vehicle charging in Alaska gets new life By Alex DeMarban Published: August 25, 2025 9/16/25, 12:18 PM After Trump administration reversal, $50M plan to expand electric vehicle charging in Alaska gets new life - Anchorage Daily News https://www.adn.com/business-economy/2025/08/25/after-feds-reversal-50m-plan-to-expand-electric-vehicle-charging-in-alaska-gets-new-life/1/15 Doug Quist "tops off" his Hyundai Ioniq 5 at the Level 3 electric vehicle (EV) charger at the Dimond Center before driving to his cabin in Hope in 2023. (Bill Roth / ADN) The state of Alaska’s $50 million plan to build out an electric vehicle charging network is getting back on track after the Trump administration froze funding for it early this year. “We’ve got a whole new life for electric vehicles,” said Curtis Thayer, executive director of the Alaska Energy Authority, in an interview last week. “The program is back on.” The plans were put on ice in February, when the U.S. Department of Transportation froze funding for the National Electric Vehicle Infrastructure program under orders from President Donald Trump, an opponent of Biden-era clean energy efforts. Under the program, $5 billion was set aside for states to build out charging networks on highways. Funding came from the huge bipartisan infrastructure law passed in 2021. ADVERTISEMENT 9/16/25, 12:18 PM After Trump administration reversal, $50M plan to expand electric vehicle charging in Alaska gets new life - Anchorage Daily News https://www.adn.com/business-economy/2025/08/25/after-feds-reversal-50m-plan-to-expand-electric-vehicle-charging-in-alaska-gets-new-life/2/15 But the Trump administration reversed course earlier this month, after a judge ruled in favor of several states that had sued to stop the freeze. (Alaska was not part of the lawsuit.) Thayer said the number of electric vehicles on Alaska roads has more than doubled in the last few years, though their numbers remain small. Alaska counts close to 4,000 electric vehicles, out of more than 600,000 vehicles, cars and trucks, according to state statistics. Thayer said a potential speed bump in electric vehicle growth recently arose when an oceangoing carrier, Alaska Marine Lines, announced it won’t ship electric vehicles to Alaska due to concerns about fires from lithium-ion batteries, he said. But EV numbers should keep growing as more of the electric trucks and SUVs, the vehicles that many Alaskans like, are rolled out, he said. ADVERTISEMENT An expanded charging network will help support that growth, he said. The agency, working with private partners and other site hosts in recent years, had already provided money for a small charging network along the Alaska Railbelt, using over $1 million in settlement funds from the Volkswagen emissions scandal settlement. 9/16/25, 12:18 PM After Trump administration reversal, $50M plan to expand electric vehicle charging in Alaska gets new life - Anchorage Daily News https://www.adn.com/business-economy/2025/08/25/after-feds-reversal-50m-plan-to-expand-electric-vehicle-charging-in-alaska-gets-new-life/3/15 ADVERTISEMENT The network extends from Homer and Seward to Healy in the north, with nine charging stations spaced about 100 road miles apart or less. The resumption of the federal effort will allow that corridor to be upgraded with faster chargers and new locations, according to state plans. Later phases call for expanding to other areas of the highway system such as Valdez and Delta Junction, and coastal areas such as Kodiak and Juneau. ADVERTISEMENT MORE INFO 9/16/25, 12:18 PM After Trump administration reversal, $50M plan to expand electric vehicle charging in Alaska gets new life - Anchorage Daily News https://www.adn.com/business-economy/2025/08/25/after-feds-reversal-50m-plan-to-expand-electric-vehicle-charging-in-alaska-gets-new-life/4/15 Dimitri Shein with his Tesla Model X. (Bill Roth / ADN) Dimitri Shein, head of the Alaska Electric Vehicle Association, said “it’s good news” that the state will receive the federal grants. But he said the energy authority needs to do a better job than it did with the small charging network along the Railbelt. Nearly all the existing stations are obsolete in part because of outdated or broken equipment or charging-station manufacturers couldn’t stay in business, he said. Thayer said the state provided funds to the site hosts, such as Three Bears, that they matched. But the hosts selected the vendors and the location. “We gave them funds and said, ‘Here’s your grant. You’re responsible for the location, you’re responsible the installation, you’re responsible for the vendor,’ ” Thayer said. 9/16/25, 12:18 PM After Trump administration reversal, $50M plan to expand electric vehicle charging in Alaska gets new life - Anchorage Daily News https://www.adn.com/business-economy/2025/08/25/after-feds-reversal-50m-plan-to-expand-electric-vehicle-charging-in-alaska-gets-new-life/5/15 Thayer said the site hosts are also responsible for maintaining the machines. But the energy authority has provided money to convert software for some of the charging stations after one manufacturer, Freewire, went out of business only to see another company take over, he said. “It’s not (the site host’s) fault they went out of business,“ Thayer said. ”It wasn’t our fault, but if we can at least bridge them so the charging stations are useful, we want to do that." Shein also said that under the federal program, Alaska is behind other states that had already built charging stations, before the funds were frozen. “This illustrates that AEA needs to really move fast doing what they’re doing,” Shein said. “What seems to happen is that a lot of years get spent on planning and nothing is built.” Thayer said some states were approved, but only around 50 charging stations have opened in the U.S., he said. “And they have a backlog of over 1,000 that have not been approved by (the Federal Highway Administration),” Thayer said. Thayer said the federally funded plan has been slow to implement nationally because the U.S. Department of Transportation had been “dragging their feet” before the freeze. In Alaska, the energy authority had selected nine new charging stations that met all the qualifications under the program, he said. But those have been awaiting federal approval for more than two years, he said. “We have charging stations identified,” he said. “We went out to bid. We know who won those bids, and we just couldn’t get them approved. And so that was one 9/16/25, 12:18 PM After Trump administration reversal, $50M plan to expand electric vehicle charging in Alaska gets new life - Anchorage Daily News https://www.adn.com/business-economy/2025/08/25/after-feds-reversal-50m-plan-to-expand-electric-vehicle-charging-in-alaska-gets-new-life/6/15 of the challenges, not just for Alaska but across the country, that it just wasn’t moving fast.” Kirk Martakis, a Cantwell resident with two electric vehicles, said he’s “somewhat hopeful” that the state’s new federally funded effort will be properly implemented. That’s in part because he expects to Tesla supercharging stations to be built in some of the sites, after they won four of nine bids previously, he said. “Tesla has the most reliable network out there, and everyone can charge there,” he said. Thayer said the newly issued guidelines under the reopened program are more flexible, which will help implement the plan in Alaska. The guidelines also require less information from the energy authority for approval, he said. The U.S. Department of Transportation has also removed some difficult requirements, such as requiring that charging stations be placed 50 miles apart. The energy authority should have an updated plan to federal agencies in September, he said. Do you have additional ideas for coverage on this topic? Do you have questions?Do you see an error? What's missing? Are you involved in the story or affected byit and have additional thoughts about it? Let us know here. Do you have additional ideas for coverage on this topic? Do you have questions? Do you see an error? Are you involved in the story or affected by it and have additional thoughts about it? Let us know here. 0/1000 9/16/25, 12:18 PM After Trump administration reversal, $50M plan to expand electric vehicle charging in Alaska gets new life - Anchorage Daily News https://www.adn.com/business-economy/2025/08/25/after-feds-reversal-50m-plan-to-expand-electric-vehicle-charging-in-alaska-gets-new-life/7/15 e-Edition ●Today's Paper ●Games - New!●Obituaries ●ADN Store ●Promotions ●Sponsored Content ● Manage account ADVERTISEMENT Business/Economy EPA axes program that would have injected $125 million in Alaska for small-scale solar projects By Alex DeMarban Published: 23 hours ago The 8.5-megawatt Houston Solar Farm, photographed on Aug. 29, 2023, 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) 8/25/25, 10:00 AM EPA axes program that would have injected $125 million in Alaska for small-scale solar projects - Anchorage Daily News https://www.adn.com/business-economy/2025/08/24/epa-axes-program-that-would-have-injected-125-million-in-alaska-for-small-scale-solar-projects/1/14 The Trump administration has eliminated a Biden-era program that would have pumped $125 million into Alaska to deploy solar power onto urban rooftops and into rural communities. The Environmental Protection Agency said early this month that it’s terminating the Solar for All program and clawing back grants, after the One Big Beautiful Bill Act ended its funding source. But U.S. Sen. Lisa Murkowski’s office suggested on Friday that the agency’s termination of funding that’s already obligated violates the bill’s language. The decision also faces a threat of legal action from the Southern Environmental Law Center, a nonprofit advocacy group. The $7 billion solar program, funded by the 2022 Inflation Reduction Act passed by Democrats, was designed to create solar projects nationwide, the agency said. The goal was lowering energy costs, boosting jobs in low-income and disadvantaged communities and combating climate change. The Alaska Energy Authority and the Tanana Chiefs Conference had each won $62.5 million grants under the program to bring solar power to thousands of homes and dozens of communities in Alaska. Curtis Thayer, executive director of the energy authority, said Thursday that the program’s termination hurts efforts to reduce costly diesel fuel used in rural Alaska. The fuel is typically transported by barge to provide power in scores of villages. “I think it is a missed opportunity because we need to displace fuel oil in rural Alaska,” Thayer said, “whether that be (with) wind, solar, hydro, or even small nuclear. If we can just somehow offset the high cost of energy in rural Alaska, then we need to try to do that.” ADVERTISEMENT 500 for $200.00200 for $298.00 Thayer said the Alaska Energy Authority spent about $500,000 of the grant and will be reimbursed for that amount. 8/25/25, 10:00 AM EPA axes program that would have injected $125 million in Alaska for small-scale solar projects - Anchorage Daily News https://www.adn.com/business-economy/2025/08/24/epa-axes-program-that-would-have-injected-125-million-in-alaska-for-small-scale-solar-projects/2/14 “We will be held harmless,” he said. “Even our staff time in closing out the grant will be reimbursed.” ADVERTISEMENT - Give your space the fresh, new look it deserves. Zoro Sponsored Shop Now Murkowski’s office: EPA assurances not met The Environmental Protection Agency explained in an Aug. 7 memorandum to the Alaska Energy Authority that it was canceling the grant it had obligated to the agency. The federal agency said it was acting “pursuant to” the One Big Beautiful Bill Act, also known as the budget reconciliation bill, passed by Republicans in early July. “Congress has made its intent clear — via a repeal of the statutory authorization and all appropriated funding for the program and the administrative burdens of implementing and overseeing the program — that the (Solar for All) program is no longer to operate," the agency said in the memo. 8/25/25, 10:00 AM EPA axes program that would have injected $125 million in Alaska for small-scale solar projects - Anchorage Daily News https://www.adn.com/business-economy/2025/08/24/epa-axes-program-that-would-have-injected-125-million-in-alaska-for-small-scale-solar-projects/3/14 Workers with Alaska Native Renewable Industries construct a solar farm on in 2021 in Shungnak. The project includes 223kW of solar production and a 280kWH battery system. (Loren Holmes / ADN) Murkowski joined her Alaska colleagues in voting for the bill, which contained unique provisions to benefit Alaska, such as potentially more oil development and revenue on production from federal lands. But Joe Plesha, a spokesperson for Murkowski, said the senator does not agree with the environmental agency’s decision. “We disagree with EPA’s termination of all obligated funding under the Solar For All program,” Plesha said. “The reconciliation bill explicitly rescinded unobligated balances and we had assurances from the agency through the morning of the announcement that no Alaska recipients would be harmed,” he said. “After an investigation and potentially litigation, we expect EPA to reverse course and reinstate previously obligated funds for this program,” Plesha said. 8/25/25, 10:00 AM EPA axes program that would have injected $125 million in Alaska for small-scale solar projects - Anchorage Daily News https://www.adn.com/business-economy/2025/08/24/epa-axes-program-that-would-have-injected-125-million-in-alaska-for-small-scale-solar-projects/4/14 Murkowski has previously complained that she felt “cheated” by the Trump administration on a concession in the bill she won to support wind and solar projects through a temporary, one-year retention of Biden-era tax credits. U.S. Sen. Dan Sullivan and U.S. Rep. Nick Begich were unavailable for comment Friday about the Solar for All termination. Solar for All could have helped dozens of communities The Alaska Energy Authority planned to use about half the $62.5 million grant to deploy community projects in a handful of villages, Thayer said. The agency was also working with the Alaska Housing Finance Corp., a state agency that would have used part of grant to subsidize residential solar installations, according to the energy authority. In Interior Alaska, the Tanana Chiefs Conference planned to use its $62.5 million grant to create tribally led solar projects in communities, according to its website. The Interior tribal consortium planned to work in partnership with the Alaska Native Tribal Health Consortium and the state housing agency. Representatives with the Tanana Chiefs Conference could not be reached for comment Friday. The Alaska Public Interest Research Group asserted in a statement Friday that the cancellation of the grants is unlawful because the awards were obligated to recipients. ADVERTISEMENT 200 for $298.00500 for $200.00 The termination will raise utility costs in Alaska, where communities face some of the highest energy prices in the U.S., said June Okada, federal infrastructure analyst for the consumer interest group. 8/25/25, 10:00 AM EPA axes program that would have injected $125 million in Alaska for small-scale solar projects - Anchorage Daily News https://www.adn.com/business-economy/2025/08/24/epa-axes-program-that-would-have-injected-125-million-in-alaska-for-small-scale-solar-projects/5/14 Workers install panels at a solar project in Galena in May 2025. (AP Photo/John Locher) The grant for the tribes alone could have served about 4,500 households in dozens of communities and delivered about $2.7 million in savings annually, Okada said. The termination of Solar for All comes as the Trump administration has taken aggressive steps to eliminate funding for wind and solar projects nationally. In recent months, multiple wind and solar projects have been canceled in Alaska, or face new challenges after the Big Beautiful Bill reduced the tax-credit window. The halted or delayed projects will hurt energy diversification in Alaska and leave “a dangerous gap as Alaska faces a worsening natural gas shortfall,” Okada said. Do you have additional ideas for coverage on this topic? Do you have questions? Do you see anerror? What's missing? Are you involved in the story or affected by it and have additional thoughtsabout it? Let us know here. 8/25/25, 10:00 AM EPA axes program that would have injected $125 million in Alaska for small-scale solar projects - Anchorage Daily News https://www.adn.com/business-economy/2025/08/24/epa-axes-program-that-would-have-injected-125-million-in-alaska-for-small-scale-solar-projects/6/14 Today in Energy IN-BRIEF ANALYSIS August 21, 2025Alaska residents spent three times more on energy than Florida residents in 2023 $12,100 $10,100 $9,300 $4,700 $3,800 $3,800 $3,700 Alaska Wyoming North Dakota U.S. average Maryland New York Florida U.S. per capita energy expenditures by source in selected states (2023) dollars U.S. average states with the highest energy expenditures states with the lowest energy expenditures electricity motor gasoline jet fuel other petroleum other fuelsdistillate fuel oilnatural gas Data source: U.S. Energy Information Administration, State Energy Data SystemData values: Primary energy, electricity, and total energy expenditure estimates Alaska has the highest per capita energy expenditures of any state at $12,100, according to our recently published State Energy Data System information for 2023. Wyoming and North Dakota spent the next most on energy at $10,100 and $9,300 per capita, respectively. All three states spent twice as much as the national average of $4,700. Florida had the lowest per capita energy expenditures at $3,700, followed by New York and Maryland at $3,800 each. Differences in economy-wide per capita energy expenditures across states are attributable to weather conditions, economic composition, industrial energy consumption, and other factors. Alaska, Wyoming, and North Dakota have cold winters that require more energy for heating, and their state economies havemore energy-intensive industrial sectors such as mining and oil and natural gas extraction. Florida has warm weather and uses less energy for heating. Although the weather in New York is generally cold, the state has more widespread public transit use than most states and therefore lower expenditures for transportation fuels. New York and Florida have less energy-intensive industries. Maryland has a mild winter climate and ranked among the states with the lowest industrial sector energy expenditures. Alaska’s population spent the most on jet fuel per capita of any state: the average American spent about $130 on jet fuel in 2023, but the average Alaskanspent nearly $3,700. Living in Alaska or other sparsely populated states such as Wyoming and North Dakota involves more transportation, which contributes to more motor gasoline and distillate fuel oil consumption per capita. The industrial sector also makes up a larger share of energy expenditures in these states relative to the U.S. average. For example, Wyoming’s industrial sector accounted for 30% of Wyoming’s total energy expenditures versus the U.S. average industrial share of 15%. In New York and Florida, the industrial sector made up 5% and 6% of the states’ total energy expenditures, respectively. Our energy expenditures data represent the total amount of money spent in the United States by end users of petroleum products, electricity, natural gas, and other fuels in the residential, commercial, industrial, and transportation sectors. We calculate expenditures as energy consumption multiplied by the average price paid by end users for those fuels. When calculating electricity expenditures, we remove the expenditures for primary energy sources that the electric power sector uses to generate electricity, such as natural gas and coal, to avoid double counting the expenditures of the electricity and its generation sources. 8/21/25, 11:16 AM Alaska residents spent three times more on energy than Florida residents in 2023 - U.S. Energy Information Administration (EIA) https://www.eia.gov/todayinenergy/detail.php?id=65965 1/2 $0.0 $0.5 $1.0 $1.5 $2.0 2000 2010 2020 U.S. energy expenditures (2000–2023) total expenditures trillion real 2023 dollars $0 $1 $2 $3 $4 $5 $6 $7 2000 2010 2020 per capita thousand real 2023 dollars long-term average (2000–2023) 0% 2% 4% 6% 8% 10% 2000 2010 2020 share of gross domestic product percentage Data source: U.S. Energy Information Administration, State Energy Data SystemData values: Total energy prices and expenditures adjusted for inflation by GDP deflator Nationwide, average energy expenditures decreased in the United States in 2023 but remained higher than long-term averages. Energy expenditures in2023 were 12% less than in 2022, largely because of lower energy prices, especially lower petroleum prices. The nearly $1.6 trillion spent on energy in theUnited States in 2023 was slightly above the long-term average of $1.5 trillion, based on inflation-adjusted values since 2000. When expressed as apercentage of gross domestic product (GDP), energy expenditures in 2023 were 5.7% of GDP, or slightly less than the long-term average of 7.0%. Principal contributor: Brett Marohl 8/21/25, 11:16 AM Alaska residents spent three times more on energy than Florida residents in 2023 - U.S. Energy Information Administration (EIA) https://www.eia.gov/todayinenergy/detail.php?id=65965 2/2 View this email in your browser View this email in your browser Alaska Electric Vehicle Working Group Newsletter, August 19, 2025 NEVI Update: The New Guidance is Here! The Federal Highway Administration (FHWA) released revised National Electric Vehicle Infrastructure (NEVI) Formula Program Guidance on Monday, August 11, 2025. This comes after the previous guidance was recalled for revision in February of this year. This Interim Final Guidance has an immediate effect and provides states with 30 days to submit their updated NEVI implementation plans. We're on track to submit Alaska's updated plan by the September 11 deadline. Officials say that the Interim Final Guidance aims to “streamline applications [and] provide states with more flexibility.” Part of this streamlined process is allowing states to update their previously submitted plans to ensure compliance with the following three statutory and regulatory requirements: 1. A description of how the state plans to use each fiscal year's NEVI funds (2022-2026) 2. A Community Engagement Outcomes Report, and 3. A description of physical and cyber security strategies States can submit more information beyond what is legally required, but FHWA will only review the three requirements listed above. The minimum standards and requirements previously set forth in 23 CFR part 680 still apply. These include standards such as the following: Outlook AEA EV News: NEVI Update, Survey, and EV Shipping to Alaska From Alaska Energy Authority <bdixon@akenergyauthority.org> via mailchimpapp.net Date Tue 8/19/2025 3:56 PM To Sara Martinchick <sbmartinchick@akenergyauthority.org> 9/26/25, 3:22 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQACKlC%2B7JH4RKhNk5IRxIF6w%3D…1/5 At least four network-connected fast charging ports at sites along the Alternative Fuel Corridor CCS type 1 connector is required, but NACS is permitted Ports must deliver at least 150 kilowatts For a more comprehensive look into the NEVI minimum standards and requirements, check out our past newsletter on the topic. Appropriate Distance Between Stations Under the previous guidance, sites along Alternative Fuel Corridors (AFC) were required to be no more than 50 miles apart for the AFC to be considered fully built out. Under the new guidance states “should consider the appropriate distance between stations to allow for reasonable travel and certainty that charging will be available.” We want to hear from you! How far apart do you think we should build our charging NEVI charging stations along the AFC (the Parks Highway between Anchorage and Fairbanks). Take our short five question survey now! Once Alaska determines that the AFC is built out, and secures FHWA’s concurrence, we will be able to use NEVI funds off corridor on any public road or publicly accessible location including the Alaska Marine Highway System. Other Updates The new guidance also rescinded plan requirements and language that conflicted with a January 29, 2025, memo from Secretary of Transportation Duffy on how to comply with executive orders addressing energy, climate change, diversity, and gender. For example, states are no longer required to adhere to Justice40 guidance stating that at least 40 percent of benefits of the program must go to disadvantaged communities. For more examples of rescinded language, we recommend reading the FHWA’s press release. 🗣Get Involved! 📝Take our survey about site spacing along the AFC! 9/26/25, 3:22 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQACKlC%2B7JH4RKhNk5IRxIF6w%3D…2/5 📅Attend our Working Group on September 25, 2025, beginning at 11:30 a.m. to learn about this year’s plan update 👤In person at the Alaska Energy Authority 813 W Northern Lights Blvd, Anchorage, AK 99503 💻Or via ZOOM https://mbakerintl.zoom.us/j/86080284797 Meeting ID: 860 8028 4797 Passcode: 037935 📧Email us if you have any questions electricvehicles@akenergyauthority.org Changes to EV Shipping Policies Shipping an EV to Alaska just got more difficult—but not impossible! Numerous maritime shippers have announced that they will no longer accommodate EVs on their vessels. While most of their statements do not cite a specific reason, the response appears connected to the recent cargo ship fire involving both internal combustion engine vehicles and EVs that sank off the Aleutian Islands. Here's a brief overview of what we learned from contacting numerous shippers and researching online: TOTE Maritime released a statement announcing a suspension of EV and plug-in hybrid (PHEV) shipments. Alaska Marine Lines stated they no longer ship EVs or PHEVs to most of Alaska. They are currently shipping EVs and PHEVs to Southeast Alaska but will cease EV and PHEV shipments on September 1, 2025, on those routes. Matson has had numerous news articles stating they will no longer ship EVs or PHEVs to Alaska. Samson Tug and Barge will no longer ship EVs or PHEVs starting August 26, 2025. Now for some good news! The Alaska Marine Highway System confirmed via email that they still transport EVs and PHEVs on their ships. They do have a limit of two EVs per boat and recommend that the batteries be charged 20-80 percent prior to boarding. Ruby Marine, a local operator who runs barges on the Yukon, Koyukuk, and Innoko Rivers confirmed that they still take EVs and PHEVs. 9/26/25, 3:22 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQACKlC%2B7JH4RKhNk5IRxIF6w%3D…3/5 Many other shipping companies, such as Alaska Car Transport, Alaska Freight Forwarding, Wrightway Auto Carriers, and more, rely on the three main maritime shippers (TOTE, Alaska Marine Lines, and Matson) for part of their journey, so they are also no longer taking EVs or PHEVs unless policies change. Some may be pivoting to overland transport through Canada, but those plans are still in the works. If you are trying to ship an EV or PHEV to or from Alaska it might be tough, but not impossible. The situation seems to be changing day by day, and as such, we recommend reaching out directly to shippers for the most up to date information. Hopefully this information can help answer some questions, but we know it might raise even more, such as, How does this impact car dealers? At the time of this newsletter auto manufacturers are working on alternative ground delivery methods for EVs and PHEVs bound for Alaska. Will this ban last forever? How are companies who still take EVs and PHEVs prepared to deal with an onboard fire? (The Alaska Marine Highway System and Ruby Marine shared some of their fire safety practices with us and we plan to discuss those at a future technical session.) What types and sizes of lithium-ion batteries are still allowable for maritime shipping to Alaska? We are continuing to reach out to shippers, car dealerships, EV fire safety experts, and more to bring you the most up to date information. We plan to host an EV Working Group meeting later this fall to share more about this topic and hear from industry experts—stay tuned! 📰What We're Reading NEVI Formula Program Interim Final Guidance President Trump’s Transportation Secretary Sean P. Duffy Unveils Revised NEVI Guidance to Allow States to Actually Build EV Chargers | FHWA Facebook LinkedIn Website Copyright © 2025 Alaska Energy Authority, All rights reserved. Alaska EV Work Group Listserv Subscribers Our mailing address is: Alaska Energy Authority 813 W Northern Lights Blvd Anchorage, AK 99503-2407 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. EV Charging Station Spacing Survey 9/26/25, 3:22 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQACKlC%2B7JH4RKhNk5IRxIF6w%3D…4/5 9/26/25, 3:22 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQACKlC%2B7JH4RKhNk5IRxIF6w%3D…5/5 e-Edition ●Today's Paper ●Games - New!●Obituaries ●ADN Store ●Promotions ● Sponsored Content ●Manage account ADVERTISEMENT Nation/World The EPA plans to claw back $7 billion in rooftop solar grants By Jake Spring, The Washington Post Published: 19 hours ago Solar panels are installed on the roof of a home in Kensington, Maryland. (Maansi Srivastava/For The Washington Post) 8/6/25, 9:15 AM The EPA plans to claw back $7 billion in rooftop solar grants - Anchorage Daily News https://www.adn.com/nation-world/2025/08/05/the-epa-plans-to-claw-back-7-billion-in-rooftop-solar-grants/1/12 The Environmental Protection Agency plans to terminate $7 billion in grants for rooftop solar projects that were supposed to serve lower- and middle-income consumers, according to two people familiar with the matter, in the Trump administration’s latest move to undercut renewable energy. The EPA plans to draft letters to the 60 grant recipients under the Solar for All program - which includes 49 states - informing them that their awards have been terminated, the people said, speaking on the condition of anonymity because the issue was still under internal discussion. With the program launching only in 2024, the vast majority of the money has yet to be spent, leaving it vulnerable to being clawed back by the administration. The news was rst reported by the New York Times. ADVERTISEMENT - Book Your Free First Exam* VCA Animal Hospitals Sponsored Book Now “Solar for All is laser focused on helping nearly a million low-income families afford electricity at a time when their bills keep going up,” said Zealan Hoover, the EPA’s former director of implementation who oversaw the rollout of the grants under President Joe Biden. “If the Trump administration is serious about energy abundance and affordability, then they should be working hard to accelerate - not terminate - these grants.” According to the clean energy company EnergySage, the average rooftop solar installation costs about $29,000 before tax credits. The Solar for All program was designed to help 8/6/25, 9:15 AM The EPA plans to claw back $7 billion in rooftop solar grants - Anchorage Daily News https://www.adn.com/nation-world/2025/08/05/the-epa-plans-to-claw-back-7-billion-in-rooftop-solar-grants/2/12 more than 900,000 people install solar. Households qualied if they stood to reduce their electricity bills by at least 20 percent. The majority of the money was awarded to states in a competitive process, with state-level agencies then providing incentives such as grants, tax credits and loans to households to install rooftop solar. The EPA also selected six tribes and ve national grant recipients. The Trump administration has pushed the limits of the president’s power over federal spending, in a drive led by Russell Vought, the head of the Ofce of Management and Budget. That includes seeking to rescind money that was approved by Congress and promised to specic recipients, which had been thought to be safe from the rollbacks in previous administrations. ADVERTISEMENT The move to revoke Solar for All grants will probably draw legal challenges. The program was part of the Ination Reduction Act, the Biden administration’s signature climate policy that aimed to provide billions of dollars in renewable energy incentives. Congress voted last month to end most of those incentives through President Donald Trump’s One Big Beautiful Bill, also clawing back unobligated Solar for All grants. The EPA termination letters will essentially seek to shift the money already awarded into unobligated status, with the agency potentially arguing that it is in line with what Congress approved, one of the people said. “With the passage of the One Big Beautiful Bill, EPA is working to ensure congressional intent is fully implemented in accordance with the law,” the EPA said in a written statement, 8/6/25, 9:15 AM The EPA plans to claw back $7 billion in rooftop solar grants - Anchorage Daily News https://www.adn.com/nation-world/2025/08/05/the-epa-plans-to-claw-back-7-billion-in-rooftop-solar-grants/3/12 without commenting on the grant terminations. EPA Administrator Lee Zeldin has already sought to rescind $20 billion in separate grants under the Greenhouse Gas Reduction Fund, which contains Solar for All. That money went primarily to nonprots to set up “green bank” programs that nance renewable energy projects at favorable rates. “EPA will be an exceptional steward of taxpayer dollars dedicated to our core mission of protecting human health and the environment, not a frivolous spender in the name of ‘climate equity,’” Zeldin said in a March statement on the $20 billion in grants. The Solar Energy Industries Association, a trade group, pushed back on the legality of the EPA move. “Congress has already appropriated this funding, and the EPA has no legal authority to terminate these grants that are delivering billions of dollars of investment to red and blue states alike,” said Stephanie Bosh, the association’s senior vice president of communications. “At a moment when energy demand is skyrocketing - and solar and storage is the quickest and cheapest energy source to deploy - this administration is continuing to dig itself into a hole.” Sen. Bernie Sanders (I-Vermont) has championed the program and sought assurances during Zeldin’s conrmation hearings that it would continue. Zeldin had responded that he would “follow my obligations under the law,” without committing to continue the grants. Sanders on Tuesday vowed to ght to preserve the program. “I introduced the Solar for All program to slash electric bills for working families by up to 80 percent - putting money back in the pockets of ordinary Americans, not fossil fuel billionaires,” he said in a statement. “Now, Donald Trump wants to illegally kill this program to protect the obscene prots of his friends in the oil and gas industry. That is outrageous.” ADVERTISEMENT ADVERTISEMENT 8/6/25, 9:15 AM The EPA plans to claw back $7 billion in rooftop solar grants - Anchorage Daily News https://www.adn.com/nation-world/2025/08/05/the-epa-plans-to-claw-back-7-billion-in-rooftop-solar-grants/4/12 Petersburg Borough Assembly considers otter, bear, and power project resolutions Posted by Olivia Rose | Aug 4, 2025 The Petersburg Borough Assembly meets in the municipal building twice every month. (Photo: Hannah Flor/KFSK) The Petersburg Borough Assembly today considered a few new resolutions regarding animal destruction mitigation and upgrades to its power supplier. One resolution would ask both the state and federal government for help managing the impact of rising sea otter populations in Southeast Alaska.  Sea otters were reintroduced to the region in the 1960s after the fur trade wiped them out, but populations have skyrocketed. Sea otters consume a lot of shellsh, putting them at odds with shermen. Proponents say they’re depleting the shellsh resource and taking harvest from sheries, causing trouble for not only the ecology, but the economy as well. But sea otters are federally protected under the Marine Mammal Protection Act. Only individuals who are either at 8/5/25, 3:57 PM Petersburg Borough Assembly considers otter, bear, and power project resolutions - KFSK https://www.kfsk.org/2025/08/04/petersburg-borough-assembly-to-decide-on-otter-bear-and-power-project-resolutions/1/3 least a quarter Alaska Native or an enrolled member of a coastal Alaskan tribe can harvest sea otters. The proposed borough resolution asks for disaster assistance for Southeast crab and dive sheries. It also asks that the federal government loosen regulations for how Alaska Native subsistence hunters can use harvested sea otters. Assembly member Bob Lynn, who brought the proposal forward, said he wants to make amendments to the resolution and expand it more. Vice Mayor Donna Marsh oered to recuse herself from the vote, noting a potential nancial interest in the resolution because her husband shes crab in the region. However, only four assembly members were present at today’s meeting — and four is the minimum number of votes needed in order to pass agenda items. Assembly member Jeigh Stanton Gregor moved to table the sea otter resolution until late September, and the assembly agreed unanimously. Petersburg’s borough assembly also considered a dierent resolution to address black bears in town. At the July 21 assembly meeting, the borough discussed frustrations about a few bears consistently breaking into local trash cans.  Petersburg has laws about securing trash to dissuade bears. Residents can be ned for not attempting to secure their refuse containers. But torn up garbage cans — even ones with bear resistant straps — are making the borough reconsider its options.  The resolution sponsored by Police Chief Jim Kerr called for local police, in coordination with state wildlife agencies, to lawfully get rid of these so-called “nuisance bears” from Petersburg. It stated that the destroyed garbage cans place an “unsustainable nancial burden” on the community. It described the destruction as a threat to borough property and public safety, and said the dispatch and removal of the bears is “necessary and responsible,” though concerning for some community members. That resolution failed in a 3–1 vote, with Assembly Member Jeigh Stanton Gregor opposed. He told KFSK after the meeting that he had concerns about potential clashes with state law, and felt it was redundant to existing mechanisms in place. Local police are already coordinating with wildlife agencies to respond to bear problems in town. Police Chief Jim Kerr said at the meeting that the resolution was a 8/5/25, 3:57 PM Petersburg Borough Assembly considers otter, bear, and power project resolutions - KFSK https://www.kfsk.org/2025/08/04/petersburg-borough-assembly-to-decide-on-otter-bear-and-power-project-resolutions/2/3 formality: to enhance direction and public education. He told KFSK that the local agencies will continue to coordinate in addressing the issue lawfully and for public safety. The assembly unanimously approved a third resolution. It supports the construction of a new Southeast Alaska Power Agency (SEAPA) substation in Ketchikan. That agency provides power to Petersburg, Wrangell, and Ketchikan. Energy usage is increasing among the communities, and SEAPA identied an “urgent need” to upgrade infrastructure to meet future demands, according to the resolution.  Such upgrades include a new substation that would expand the power delivery capacity for the regional grid, directly beneting Petersburg. The power agency is applying for a grant from the Alaska Energy Authority Grid Resilience Formula Grant Program to help support the multi-million dollar project.  Mayor Mark Jensen and assembly members Rob Schwartz and Scott Newman were excused from the meeting. Editor’s Note (Aug. 4, 4 p.m.): This story has been updated with vote result details following the noon assembly meeting. Want to keep local journalism going strong? Consider supporting us. SHARE: Texas Democrats walked out to block the GOP. How well has the tactic worked before? Alaska’s largest research institute well positioned, geographically and nancially, director says       PREVIOUSNEXT  8/5/25, 3:57 PM Petersburg Borough Assembly considers otter, bear, and power project resolutions - KFSK https://www.kfsk.org/2025/08/04/petersburg-borough-assembly-to-decide-on-otter-bear-and-power-project-resolutions/3/3 Home Alaskan Utilities Increasingly Turn To Clean Energy ALASKAN UTILITIES INCREASINGLY TURN TO CLEAN ENERGY BY GREG HERRIGEL Utilities are turning to clean energy to address the rising cost of fossil fuels across Alaska, particularly in the Railbelt, where the majority of the state’s population resides. A 2024 report by the University of Alaska Fairbanks’ Alaska Center for Energy and Power (ACEP) found that the Railbelt could transition to renewables through various pathways, but each would require substantial capital investment. For example, achieving 70% clean energy by adding solar, tidal, and wind power would require $7.7 billion, and achieving 88% clean energy by adding those resources would require $11.8 billion. Meanwhile, achieving 96% zero-carbon generation using solar, wind, and small modular nuclear reactors would require $10.1 billion.  However, as ACEP research professor Steve Colt explained to Alaska’s Senate Resources Committee, “If we were able to make that kind of investment, we would have to pay a lot of money for capital, but we would potentially save three-quarters of a billion dollars of fuel costs every year. So to me, that helps put in perspective the daunting challenge of investing maybe $10 billion, that you could save something approaching $1 billion every year for as long as the equipment operates.” A 2024 report by the National Renewable Energy Laboratory (NREL) found that the least-cost pathway for the Railbelt to achieve an 80% Renewable Portfolio Standard (RPS) by 2040 would result in net savings of over $100 million per year by the beginning of the next decade. While the lab attributed part of these savings to investment tax credits for solar and wind that were recently repealed, a signicant portion stems from the cost advantages of renewables over importing liqueed Photo Courtesy Chugach Electric Association 8/5/25, 3:11 PM Alaskan Utilities Increasingly Turn To Clean Energy https://thebusinessdownload.com/alaskan-utilities-increasingly-turn-to-clean-energy/1/5 natural gas. In a scenario where the cost of renewables drops by 10%, savings could increase further by approximately $20 million per year, totalling $220 million cumulatively from 2024 through 2040, according to NREL.  Utilities serving Alaska’s Railbelt region, including the Chugach Electric Association, the Golden Valley Electric Association, and the Matanuska Electric Association, have taken action to join the clean energy transition.  This summer, the Chugach Electric Association (CEA) launched the state’s rst community solar project, spanning four acres and featuring 1,560 bifacial solar panels. Any residential, retail, or general service member could subscribe to have the energy produced from between one to twenty panels credited to their electric bill, and the program is currently fully subscribed. “Members have been asking for years for the opportunity to use solar, [but] they don’t want to put panels on their home or their business. This gives you an opportunity to experiment with solar,” CEA senior corporate communications manager Julie Hasquet told Alaska’s KTUU.  It is not the CEA’s rst foray into clean energy. The utility has also installed small solar projects on its natural gas power plants. Last year, the CEA and the Matanuska Electric Association jointly invested $65 million in a battery energy storage system, which has a 40-megawatt (MW) capacity, sucient to charge 1,000 electric vehicles. Andrew Laughlin, CEA chief operating ocer, added that the project will help stabilize the grid during power outages: “And what this does is, if there is a trip to a generator, the battery takes over instead of traditional turbine generators. So it responds faster, and it can also not just deliver power, but absorb power.” Also last year, the utility’s board passed a resolution in support of establishing an RPS, making it the rst Railblet utility to do so. Sam Cason, chair of the board, explained, “It’s a matter of it being time for the transition. And that’s what we’re looking at, is a transition here.”  Photo Courtesy Chugach Electric Association Over the years, the Golden Valley Electric Association (GVEA) has also expanded its focus to include clean energy. Its initiatives include a battery energy storage system installed in 2003, the 25 MW Eva Creek Wind Farm, which went online in 2013; the utility took over operations and maintenance in 2020. Additionally, there is a 563-kilowatt (kW) solar photovoltaic system, whose 12 turbines were fully operational in 2018. The utility also purchases wind power from Alaska Environmental Power. In 2019, the GVEA adopted a carbon reduction goal, aiming for a 26% reduction compared to 2012 levels.  8/5/25, 3:11 PM Alaskan Utilities Increasingly Turn To Clean Energy https://thebusinessdownload.com/alaskan-utilities-increasingly-turn-to-clean-energy/2/5 Last June, the U.S. Department of Agriculture (USDA) awarded a $100 million loan to the GVEA through its Powering Affordable Clean Energy (PACE) program, with $60 million in loan forgiveness. The GVEA aimed to use the funding to install a 46 MW battery energy storage system in Fairbanks, to upgrade the Nenana Substation, and to install a distribution circuit connecting the Nenana Solar Farm to that substation. In September, the USDA also awarded the utility $206 million in zero- interest loans through its Empowering Rural America (New ERA) program. The GVEA intended to use the funding for the construction of another 46 MW battery energy storage system in Fairbanks, with the remainder earmarked for building 64 miles of transmission lines, adding two new substations, upgrading the North Pole Industrial Substation, and retiring the coal-powered Healy Unit 2. The additions would enable it to enter a 150 MW wind power purchase agreement.  To avoid losing the awards, GVEA scrapped plans for upgrades to the Nenana solar farm earlier this year, due to the company behind it dissolving, as well as the retirement of the coal-red power plant in Healy. “Unfortunately, if those were kept in, the funding would very likely be in jeopardy,” GVEA director of external affairs and public relations Ashley Bradish told KUAC.  Photo Courtesy Golden Valley Electric Assn. In 2023, Renewable IPP’s 8.5 MW Houston Solar Farm became the state’s biggest solar site, from which the Matanuska Electric Association (MEA) contracted to purchase the generated power, enough for 1,400 residences. “MEA’s members have been clear – in signicant numbers they have told us they are ready for innovation and a path to clean energy as long as it doesn’t impact cost or reliability,” MEA CEO Tony Izzo noted in a press release. “It’s time to chart a new path towards energy diversication and energy security for the future.” Projects like this have contributed to MEA’s 28% reduction in carbon emissions since 2012, enabling it to meet its 2030 goal ahead of schedule. In 2023, MEA’s Board of Directors also adopted a resolution aiming for 50% clean energy by 2050.  The utility has also experimented with a variety of other technologies. Through its Level 2 Charger Pilot Program, MEA customers received a free electric vehicle charger in exchange for providing related data, including the time of day they charged, the duration of their charge, their energy consumption, and their load prole. MEA is currently working on an RF (Radio Frequency) Meter Pilot Program. By installing meters equipped with radio transmitters and antennas that transmit data on power consumption and voltage health back to the utility, MEA will be able to optimize grid operations more eciently and resolve outages more effectively.  8/5/25, 3:11 PM Alaskan Utilities Increasingly Turn To Clean Energy https://thebusinessdownload.com/alaskan-utilities-increasingly-turn-to-clean-energy/3/5 Photo Courtesy Matanuska Electric Association Notably, the CEA, the GVEA, the MEA, and the Homer Electric Association have all also contracted for a portion of the power generated by the 120 MW Bradley Lake Hydroelectric Plant, the biggest of Alaska’s seven hydroelectric projects.  Some utilities have also sourced hydroelectric power from smaller projects. The MEA, for example, purchases power from the Juniper Creek project, which is co- owned by spouses David Brailey and Melanie Janigo. Between June and October, it generates one-third of a megawatt of power. As Brailey told the Anchorage Daily News, “It’s predictable, and that’s perfect. That’s what you need. I can guarantee it.” SHARE ON SOCIAL ORIGINALLY PUBLISHED ON AUGUST 1, 2025 ALASKA, DEPARTMENT OF AGRICULTURE (USDA), ENERGY, EV, FINANCIAL ACTION, GENERAL TRENDS, GRID & STORAGE, LOAN, NUCLEAR, RENEWABLE ENERGY, SOLAR, STATE, TRANSPORTATION, TRENDS, WATER / HYDRO, WIND 8/5/25, 3:11 PM Alaskan Utilities Increasingly Turn To Clean Energy https://thebusinessdownload.com/alaskan-utilities-increasingly-turn-to-clean-energy/4/5 MORE FROM ALASKA, DEPARTMENT OF AGRICULTURE (USDA), ENERGY, EV, FINANCIAL ACTION, GENERAL TRENDS, GRID & STORAGE, LOAN, NUCLEAR, RENEWABLE ENERGY, SOLAR, STATE, TRANSPORTATION, TRENDS, WATER / HYDRO, WIND ENERGY, GRID & STORAGE, INFLATION REDUCTION ACT, RENEWABLE ENERGY, REPORT, SOLAR, TRENDS, WIND TRUMP’S LAW TO CUT US CLEAN ENERGY INSTALLS 41%, BNEF SAYS BY BLOOMBERG AI, CHARGING, DATA CENTER, ENERGY, EV, GRID & STORAGE, RENEWABLE ENERGY, REPORT, SOLAR, TRANSPORTATION, TRENDS, WIND AN ALL-OF-THE-ABOVE ENERGY APPROACH TO MEET SKYROCKETING ENERGY DEMAND BY GREG HERRIGEL AI, CHIPS & SEMICONDUCTORS, FINANCIAL ACTION, INVESTMENT, MANUFACTURING, PRIVATE INVESTMENT, TECHNOLOGY, TRENDS GLOBALFOUNDRIES PLANS TO SPEND $16 BILLION TO BOOST US CHIP PRODUCTION BY BLOOMBERG 8/5/25, 3:11 PM Alaskan Utilities Increasingly Turn To Clean Energy https://thebusinessdownload.com/alaskan-utilities-increasingly-turn-to-clean-energy/5/5 e-Edition ●Today's Paper ●Games - New!●Obituaries ●ADN Store ●Promotions ●Sponsored Content ●Manage account ADVERTISEMENT Opinions Opinion: Alaska has the chance to seize prosperity with the Big Beautiful Bill By Mia Costello Updated: 30 minutes ago Published: 1 day ago Milepost zero of the Trans-Alaska Pipeline System on the North Slope. (Marc Lester / ADN) As a lifelong Alaskan, I’ve seen our state’s heart beat strongest where the land yields its bounty. From the oil elds of the North Slope to the mineral-rich mountains of the Interior, Alaska’s economic lifeblood has always been its resources. The passage of the One Big Beautiful Bill, crafted with the input of our congressional delegation and signed into law by President Trump on July 4, is a game-changer, and it represents a bold step toward securing our prosperity through safe, responsible development. This isn’t just a bill, it’s a lifeline for Alaskans and a beacon for our future. 7/29/25, 2:46 PM Opinion: Alaska has the chance to seize prosperity with the Big Beautiful Bill - Anchorage Daily News https://www.adn.com/opinions/2025/07/27/opinion-alaska-has-the-chance-to-seize-prosperity-with-the-big-beautiful-bill/1/10 The federal legislation throws open the doors to Alaska’s vast potential. It mandates lease sales across 1.6 million acres in the coastal plain of the Arctic National Wildlife Refuge, 20 million acres in the National Petroleum Reserve-Alaska, and millions more in Cook Inlet, unlocking oil and gas reserves that will fuel our economy for decades. In addition to opening more federal land for resource development, the bill secures a 70-30 revenue split with the federal government for ANWR, NPR-A and Cook Inlet, up from the current split of 50-50, bringing additional royalties directly back to Alaska starting in 2034. The bill also includes $1 billion for development of critical minerals, positioning Alaska as a key supplier of materials used in energy, defense, and manufacturing. We have the deposits, and now we have the federal support needed to develop them. Combined with $4 billion for Arctic infrastructure which will be used for roads, ports and a new polar icebreaker in Juneau, the bill offers both near-term construction jobs and long-term economic stability. These investments strengthen Alaska’s role in domestic energy production and in Arctic policy. At a time when global energy markets are uncertain and international competition is increasing, this legislation ensures Alaska is part of the solution. It’s also worth emphasizing that the bill doesn’t relax standards or bypass environmental oversight. It supports development within existing regulatory frameworks and honors Alaska’s history of balancing economic activity with environmental responsibility. We know how to develop resources the right way, and we’ve been doing it for decades. The bill doesn’t solve every challenge we face, but it gives Alaska a solid foundation. It reafrms the principle that we can and should use our own resources to support our own people. This isn’t about making a political statement, it’s about putting Alaska in a stronger position to succeed. Now that the bill has passed, the focus should be on implementation. We need to support lease sales, ensure permitting stays on schedule, and work with industry to get projects moving. We also need to be prepared for the legal and political challenges that will inevitably follow. To help guide this process, I will be working with our federal delegation to establish the Alaska Development, Resources, Energy, and Modernization (AK DREAM) Commission. The Alaska DREAM Commission will be focused on the efcient and effective implementation of the pro-Alaska policies included in the federal legislation and will work to ensure coordination between agencies, accelerate project timelines, and keep the promises of the legislation on track. ADVERTISEMENT Time is of the essence, and our state must come together to capitalize on this bold agenda. This bill gives Alaska the chance to lead again; let’s make the most of it. Rep. Mia Costello is an Anchorage Republican and the minority leader in the Alaska House. 7/29/25, 2:46 PM Opinion: Alaska has the chance to seize prosperity with the Big Beautiful Bill - Anchorage Daily News https://www.adn.com/opinions/2025/07/27/opinion-alaska-has-the-chance-to-seize-prosperity-with-the-big-beautiful-bill/2/10 ADVERTISEMENT - An easier way to manage diabetes Dexcom Sponsored Discover More • • • The views expressed here are the writer’s and are not necessarily endorsed by the Anchorage Daily News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here. ADVERTISEMENT ADVERTISEMENT Sign up for our opinions newsletter Commentary, letters to the editor and more: Hear from different voices around Alaska in our free opinions newsletter, sent every Monday. Email* Type your email Sign Up 7/29/25, 2:46 PM Opinion: Alaska has the chance to seize prosperity with the Big Beautiful Bill - Anchorage Daily News https://www.adn.com/opinions/2025/07/27/opinion-alaska-has-the-chance-to-seize-prosperity-with-the-big-beautiful-bill/3/10 Denali Commission Distributes $100M to Address Rural Fuel Infrastructure Needs – 2025.07.29 https://www.akbizmag.com/industry/alaska-native/denali-commission-distributes-100m- to-address-rural-fuel-infrastructure-needs/ Denali Commission Distributes $100M to Address Rural Fuel Infrastructure Needs Jul 29, 2025 | Alaska Native, Government, News Photo Credit: Leungchopan | Envato In response to infrastructure needs in rural Alaska, the Denali Commission awarded $100 million in federal financial assistance to the Alaska Native Tribal Health Consortium (ANTHC). The grant from the US Environmental Protection Agency (EPA), authorized under the Clean Air Act, will support major upgrades to fuel tank farms in ten rural communities. Serving the Greatest Needs First The ten communities selected for investment—Shageluk, Wales, Russian Mission, Eek, Aniak, Kivalina, Kobuk, Noatak, Quinhagak, and Tuluksak—were prioritized based on the severity of infrastructure conditions, project readiness, and regional delivery efficiencies. Many of the communities face compounded risks from aging fuel systems, including fuel spills, operational failures, and disruptions to essential services. The grant represents the largest single-year allocation for bulk fuel facility improvements in Alaska in more than two decades, directly addressing deteriorating infrastructure that threatens health, safety, and energy security across the state. Denali Commission Distributes $100M to Address Rural Fuel Infrastructure Needs – 2025.07.29 https://www.akbizmag.com/industry/alaska-native/denali-commission-distributes-100m- to-address-rural-fuel-infrastructure-needs/ “The Denali Commission is laser-focused on meeting the most urgent infrastructure needs in rural Alaska. This funding will deliver construction projects in ten communities where the need is not only real, but pressing. By working through trusted Alaska-based partners, we are ensuring that these dollars are deployed swiftly and effectively,” says Denali Commission Federal Co-Chair Julie Kitka. ANTHC President and CEO Natasha Singh says, “Improving the reliability of power systems in rural Alaska supports access to water and sanitation services. Access to clean water is a proven way to reduce infections and increase community health outcomes. This investment is a bold step toward infrastructure equity for rural Alaska, ultimately helping to secure a sustainable future for Alaska Native communities.” ANTHC serves as the primary grantee and project manager and will issue subawards to the Alaska Energy Authority and the Alaska Village Electric Cooperative to oversee construction in five communities each. Fuel tank farms are critical in off-road-system communities to power electricity, heat, water treatment, clinics, and local economies. Many existing storage facilities are decades old and pose serious environmental and operational hazards. This investment ensures that the most vulnerable communities receive safe, modern, and reliable infrastructure first. The three-year performance period for this grant begins August 1, 2025, and ends July 30, 2028. No cost-sharing is required, ensuring the full $100 million is dedicated to construction. The Denali Commission says it is committed to seeking additional funding to continue addressing the $1 billion need statewide through future phases of this work. The Denali Commission, in the announcement, expressed appreciation to President Donald Trump and his administration, especially EPA Administrator Lee Zeldin, for recognizing the critical need in remote, rural Alaska. The Denali Commission also thanked the Congressional delegation for urging administration officials to see Alaska firsthand, as Zeldin did. The Trump administration’s proposed federal budget would eliminate the Denali Commission, established in 1998 to direct infrastructure development in rural Alaska. However, Kitka says she has seen such proposals before and she is optimistic that the Congressional appropriations process will fund the commission. e-Edition ●Today's Paper ●Games - New!●Obituaries ●ADN Store ●Promotions ●Sponsored Content ●Manage account ___ The AI explosion means millions are paying more for electricity Across much of the U.S., electricity bills have jumped. The reason? Data centers required for AI and other techwonders are driving up electricity demand. By Peter Whoriskey, The Washington Post Published: 23 hours ago 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/1/10 The COL4 data center is located on a seven-acre campus in Columbus, Ohio. COL4 spans 256,000 square feet, with 50 megawatts of power across three data halls. (Eli Hiller/For The Washington Post) This summer, across a vast stretch of the eastern United States, monthly home electric bills jumped. In Trenton, New Jersey, the bill for a typical home rose $26. In Philadelphia, it increased about $17. In Pittsburgh, it went up $10. And in Columbus, Ohio, it spiked $27. Few customers were happy, of course, but even fewer knew exactly why the rates had climbed so quickly. “I never know why it goes up,” said Vicki Miller, a retired secretary in Columbus. “But I can adjust the thermostat to save money — I freeze in the winter and roast in the summer.” This time around, though, it is possible to trace the price hikes in these cities to a specic source: the boom in data centers, those large warehouses of technology that support articial intelligence, cloud computing and other Big Tech wonders. They consume huge amounts of electricity, and, as they proliferate, the surging demand for electricity has driven up prices for millions of people, including residential customers who may not ever use AI or cloud computing. In Columbus, for example, households on the standard plan of the local utility began paying about $20 more a month as of June — or $240 a year — because of the demand from data centers, according to a calculation based on gures from an independent monitor overseeing the region’s energy auctions and the local utility, AEP Ohio. 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/2/10 The ranks of the companies building the data centers — Google, Meta, Microsoft and Amazon — include some of the nation’s biggest and most prosperous companies, and many affected residents resent having to pay more because of the tech companies’ rising electricity demand. (Amazon founder Jeff Bezos owns The Washington Post.) 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/3/10 ADVERTISEMENT - Luxury Every Step of the Way Bellagio Sponsored Book Your Room “It’s denitely not fair,” said Alicia Tolbert of Columbus. She does merchandising for department stores, and her husband is a truck driver. “I really can’t afford it.” “The Big Tech companies suck up the electricity, and we end up paying higher prices,” said Carrie Killingsworth, who works in nancial services. “I’m not comfortable with average customers subsidizing billion-dollar companies.” ADVERTISEMENT As data centers pop up across the U.S., energy experts fear their growing needs for power will outstrip supply and the prices will spike for everyone. For years, they have supported an array of e-commerce sites, social media and online video platforms, and the addition of AI applications is now boosting their power usage. “We are seeing every region of the country experience really signicant data center load growth,” said Abe Silverman, a nonresident research scholar focused on energy markets at Johns Hopkins University. “It’s putting enormous upward pressure on prices, both for transmission and for generation.” Earlier this month, energy regulators in Ohio ruled that data centers must pay more for the upgrades to the grid needed to serve data centers, overruling the objections of the tech companies, who said they were being singled out unfairly. In an emailed statement afterward, industry group the Data Center Coalition said that it was “very disappointed” in the decision. In a statement for this story, the Data Center Coalition said the industry “is committed to paying its full cost of service for the energy it uses.” 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/4/10 Power lines feed into the AEP Maliszewski Substation near the COL5 construction site in Lewis Center, Ohio. (Eli Hiller/For The Washington Post) 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/5/10 The markets for electricity are complex, and blaming one factor or another for residential price hikes can be complicated — but not when it comes to data centers and this summer’s rising home bills in several cities. Take Columbus. In announcing that the average residential bill would rise this year by about $27 a month, the local utility AEP indicated that the increase was due to how much the company had to pay for “capacity” — that is, how much AEP had to pay to make sure the utility had enough power available to handle days of peak demand. ADVERTISEMENT -The Cosmopolitan Sponsored Make a Suite Escape Book Now ⌃-The Cosmopolitan Sponsored Be Totally Consumed Book Now ⌃Th Plot Book The price for capacity is set every year during an auction in which utilities spanning 13 states and D.C. bid on the capacity generated by power companies. Last year, capacity prices in this auction rose a staggering 833%, and those increases are owing into residential bills in the affected states. Although it was not initially clear why the capacity price rose so quickly, a little-noticed report issued in June identied the cause. According to the independent monitor hired to analyze the electricity market known as PJM, about three-quarters of the jump stemmed from the demand from existing and planned data centers. “There has been a paradigm shift in the market,” Joseph Bowring, the author of the independent monitor’s report, said in an interview. “These data centers could overwhelm the grid. The system cannot go on this way.” 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/6/10 Construction equipment dots the landscape in Lewis Center, Ohio, where the COL5 will be a 480,000-square-foot data center. (Eli Hiller/For The Washington Post) Indeed, this year’s auction, which concluded earlier this month, increased capacity prices yet again — by about 22%. This increase does not mean residential bills will automatically jump by that amount, however, because the capacity prices are just one portion of an electric bill, and in Ohio and some other states, residents typically can choose from a number of electricity providers. Generally speaking, though, the recent increase is passed through to customers and will tend to push residential bills upward in the 13 states where utilities participate in the capacity market: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia. As AI and other innovations continue to dazzle the public and become an increasingly important part of the economy, the data center boom has spread across the United States. Politicians and tech backers, moreover, have touted the facilities as a source of jobs, and several states have offered tax breaks to attract the facilities. ADVERTISEMENT Virginia, for example, is home to more data centers than any other state and has offered an exemption to the state’s retail sales and use tax to attract large-scale data centers. The exemption allows data centers and 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/7/10 their tenants to purchase computers and other equipment, such as servers, without paying sales tax. Ohio also offers data centers a sales tax exemption. “Data centers are the essential digital infrastructure behind every online purchase, every telehealth appointment, every online news article and every digital classroom,” the Data Center Coalition’s vice president of energy, Aaron Tinjum, said in a statement. “Data centers enable the essential services and cutting-edge technologies that drive our economy and enhance our quality of life, ensuring that our homes, businesses, schools, hospitals, manufacturing facilities and government units operate smoothly and efciently.” Even some of the residents affected by the rising electricity prices look favorably on the data centers. Dan Longerbone, a bus driver in the Columbus area, said the rising costs have led him to be very careful about his electricity use — he’s installed LED lights, and in the summer, he turns up the thermostat. Yet he values the economic benets of the data centers. “They do bring jobs,” he said of those he’s seen in the area. “They don’t hurt anybody. They just sit by themselves. They do their thing.” 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/8/10 Dan Longerbone, 49, outside his studio apartment in Hilliard, Ohio. Longerbone, a longtime resident, has seen his electric bill increase in the past year. (Eli Hiller/For The Washington Post) 7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/9/10 The data centers, however, often are rising in quiet rural or exurban areas, where neighbors complain of the noise and of their water demands. With the increased demand for energy, the rise in power plants is expected to increase carbon emissions and climate risks. ADVERTISEMENT As the data centers push up electricity bills, however, their proliferation seems likely to anger an even larger swath of the general public, even if many are unaware of their own role in creating more demand for electricity. While AI applications like ChatGPT are quick and easy to use, even simple AI tasks can require large amounts of electricity. For example, generating a high-denition image using an AI model takes as much energy as charging a smartphone to halfway, according to a study by researchers at Hugging Face, a tech platform for AI, and Carnegie Mellon University. People using the AI apps don’t realize how much energy they require, said Sasha Luccioni, one of the researchers. “There is a disconnect,” she said. “We talk about ‘the cloud’ as if it were immaterial. People using these applications don’t imagine a data center — a four-story building as big as a football eld.” Anchorage Daily News 300 W. 31st Ave.Anchorage, Alaska, 99503 Download Our App Newsletters Subscribe Terms of Use Privacy Policy Archives Reprints Contact Us Customer Service Advertise Careers at ADN Troubleshooting © 2025 Anchorage Daily News. All rights reserved. This text is the text set using the cookie banner text. ? This is the link text  7/28/25, 12:11 PM The AI explosion means millions are paying more for electricity - Anchorage Daily News https://www.adn.com/nation-world/2025/07/27/the-ai-explosion-means-millions-are-paying-more-for-electricity/10/10 Denali Commission gets $100 million to rescue deteriorating rural fuel tank farms KNBA | By Rhonda McBride Published July 24, 2025 at 2:45 PM AKDT LISTEN • 4:03 Courtesy Of Alaska Energy Authority This photo was part of the Alaska Energy Authority's bulk fuel assessment. These tanks were photographed during seasonal flooding. Rural Alaska has been hit hard by federal cutbacks this year, but there’s now one big exception. Thanks to the efforts of the Denali Commission, the Environmental Protection Agency has awarded 100 million dollars to help ten communities upgrade their fuel tank farms. Some have deteriorated so much that they are at risk of imminent failure. “It's fair to say that some that are being funded by this initiative are just in the nick of time,” said Julie Kitka, the federal co-chair for the commission. Donate Stuck Inside a Cloud GEORGE HARRISON - BRAINWASHED 9/16/25, 12:14 PM Denali Commission gets $100 million to rescue deteriorating rural fuel tank farms https://www.knba.org/news/2025-07-24/denali-commission-gets-100-million-to-rescue-deteriorating-rural-fuel-tank-farms 1/6 Kitka took the job last year, after she stepped down as President of the Alaska Federation of Natives, where she spent decades honing her expertise in channeling federal money to Rural Alaska. Now those skills are being put to good use. Kitka calls this latest round of federal investment a historic investment, the largest appropriation in two decades for bulk fuel storage improvements in Alaska, the most in a single year. “It is huge, and it's really good. And I especially love the fact that the ten villages are identified right in there, so people can be held accountable,” Kitka said. These villages have spent a long time on a waiting list, and now, finally, their time has come, Kitka said. Picture Credit: The Alaska Energy Authority In a 2024 report, the Alaska Energy Authority documented rural fuel tanks in danger of failure. Six are in Southwest Alaska: Shageluk, Russian Mission, Aniak, Tuluksak, Quinhagak and Eek. Four are in the Northwest: Wales, Kivalina, Kobuk, and Noatak. The Alaska Native Tribal Health Consortium will manage the three-year project and collaborate with the Alaska Energy Authority and the Alaska Village Electric Cooperative, or AVEC, which serves 58 communities. Bill Stamm, the president of AVEC, says, combined, AVEC villages consume more than 9 million gallons of fuel a year. And that’s just the diesel fuel to generate electricity. “It's really the backbone of all energy for rural communities, it's not just for electricity, but it's also the heating fuel and transportation,” Stamm said. “Everything that goes onStuck Inside a Cloud GEORGE HARRISON - BRAINWASHED 9/16/25, 12:14 PM Denali Commission gets $100 million to rescue deteriorating rural fuel tank farms https://www.knba.org/news/2025-07-24/denali-commission-gets-100-million-to-rescue-deteriorating-rural-fuel-tank-farms 2/6 in those communities is typically held in bulk fuel storage.” The Denali Commission estimates there is at least a billion dollars of work needed. And while $100 million is only a fraction of that, Stamm says, “This is a large shot in the arm.” If action isn’t taken soon to stabilize these tank farms, Stam says the Coast Guard or the Alaska Department of Environmental Conservation could shut them down. “If we get to a point where the facilities are deteriorated, there's no other options,” Stamm said. “It's not like there's another lifeline to provide energy for the community. They really need to be able to store fuel.” Turn back the clock 25 years. That’s when the late Senator Ted Stevens created the Denali Commission. The Coast Guard had threatened to shut down bulk fuel tanks all over Western Alaska -- or fine communities 25,000 dollars a day. The overwhelming costs paralyzed small villages until the Denali Commission stepped in to fund the work. The commission later expanded its mission to build health clinics and other essential infrastructure projects. The Denali Commission now finds itself in the same role again, coordinating a huge effort to upgrade tank farms --only today’s problems are more challenging, as storms generated by climate change continue to eat away at shorelines. Stamm says some tanks not only need to be fixed but moved to safer ground. “Part of the difficulty in meeting a three-year timeline is going to be figuring out where to put the tanks, determining where is an appropriate place to build facilities that you want to last for 20, 30, 40, 50, years, if erosion continues at the rate it is,” Stamm said. He believes the funding will be a game-changer for these ten communities. The work will consolidate fuel tanks in one place, where they can be maintained more safely and more efficiently. He says the upgrades would lower costs for schools, village stores as well as city and tribal offices. Julie Kitka says having a large grant like this allows the project partners to work on many fronts at once and will ultimately save money. Stuck Inside a Cloud GEORGE HARRISON - BRAINWASHED 9/16/25, 12:14 PM Denali Commission gets $100 million to rescue deteriorating rural fuel tank farms https://www.knba.org/news/2025-07-24/denali-commission-gets-100-million-to-rescue-deteriorating-rural-fuel-tank-farms 3/6 “We could line up contractors more efficiently. We can order things. We'll have cost savings by doing it,” Kitka said. But if communities don’t have enough money to complete the work from start to finish, she says it drags out the work over many seasons, driving up both the costs as well as the risks to life and safety. Kitka says work is underway for Phase 2 and 3 of this project. The money for this first installment comes from various pots of unused federal money that a number of agencies transferred to the EPA for use in this project. Kitka hopes this can happen again. Kitka credits the Alaska Congressional delegation for doing a good job of educating the Trump administration about the urgency of the need. She says the EPA administrator’s visit to Alaska in June was pivotal. But while the federal government giveth with one hand, the other taketh away. In May, President Trump’s budget director Russell Vought wrote to the Senate Appropriations Committee, outlining plans to reduce the president’s discretionary spending budget by more than 22 percent. Among the proposed cuts, the administration plans to eliminate six regional commissions, including the Denali Commission -- part of its overall strategy to reduce the federal bureaucracy by limiting the federal role in local economic development initiatives. Kitka says it’s not time to panic yet. It’s still early in the budget process, she says, and the Office of Management and Budget’s discretionary budget request does not yet have the force of law. Kitka is hopeful the Denali Commission will survive the budget process, because there are signs the commission is being considered for funding in the House Appropriations Energy and Water Development Subcommittee for the 2026 fiscal year. News Stories Stuck Inside a Cloud GEORGE HARRISON - BRAINWASHED 9/16/25, 12:14 PM Denali Commission gets $100 million to rescue deteriorating rural fuel tank farms https://www.knba.org/news/2025-07-24/denali-commission-gets-100-million-to-rescue-deteriorating-rural-fuel-tank-farms 4/6 Economy & Environment Anchorage electricity prices could go up again. Blame the warm winter. Anchorage utility executives say that a mild winter translated into lower electricity sales — and a hole in their budget By: Nathaniel Herz, Northern Journal - July 19, 2025 9:55 am Chugach Electric Association’s headquarters is seen in Anchorage. (Photo by Nathaniel Herz/Northern Journal) State regulators approved a price hike for Anchorage electric consumers less than a year ago, with the exact impacts to members’ bills depending on their area of the city. Another increase went through in February, boosting bills by an estimated 5%. Now, bills could rise another 4% in the coming months — a step that utility leaders, in part, are blaming on unusual warmth last winter. Chugach Electric Association, cooperatively owned by its more than 90,000 Anchorage area members, typically sees higher demand in winter stemming from more lighting, indoor cooking and electric heating. But this past winter, the seventh-warmest in Anchorage in a century, Chugach recorded a 4% decline in sales, utility executives said at a pair of recent meetings — meaning that the utility didn’t collect all the revenue it expected from its previously approved price hikes. Responding to a January wind storm also cost Chugach some $1 million. Board members are expected to vote on whether to submit the latest increase to regulators at a meeting later this month. “The main driver that we’ve seen that’s really pushing on sales, at this point, is weather,” Matt Clarkson, Chugach’s top attorney, said at a board committee meeting last week. Inside the ‘titanic’ legal case that will help determine Alaska’s energy future: an analysis Other trends are contributing to a longer-term sales decline, according to Chugach spokeswoman Julie Hasquet. Anchorage’s population has stagnated, and consumers are increasingly conserving power and using more energy efficient appliances, she said. Inflation has also put pressure on the utility’s budget. But Chugach has also documented a consistent trend of warming temperatures that appear to be linked to declining demand and thus sales. Since 1953, the number of heating degree days — a measurement of how cold it is — has fallen by 14% in Chugach’s service area, the utility said in follow-up correspondence with regulators. Chugach maintains a 10-year sales forecast, which is reviewed annually, according to Hasquet. “We are not weather forecasters, but we review historic and long range weather, as well,” she wrote in an email. One of the considerations driving the potential new increase, said Hasquet, is the need to preserve Chugach’s credit rating — affirmed at an ‘A’ grade by one agency earlier this week. Keeping that grade, Hasquet said, ensures that the utility can borrow money at favorable rates for anticipated major investments — whether in liquefied natural gas imports infrastructure or large-scale renewable developments. The warming trend in Anchorage is expected to continue, as the winter season is when temperatures are rising the most in the state, according to Rick Thoman, a specialist at the Alaska Center for Climate Assessment and Policy. “There’s no reason to think winters will not continue to warm in most of the state, I think, including Southcentral,” Thoman said, referring to the region that includes Anchorage. “The warm end is creeping up — but not nearly as fast as the loss of the really cold weather.” The warm winter also affected Matanuska Electric Association, the cooperative based in the Mat-Su region north of Anchorage, according to spokeswoman Julie Estey. The utility recently filed a quarterly adjustment with state regulators to boost its base rates by 3% — an increase Estey said was higher than normal. Conversely, the previous year’s colder winter allowed the cooperative to delay increases that were expected earlier, she added. In Fairbanks, the local utility, Golden Valley Electric Association, didn’t experience similarly declining sales last winter because of its “larger industrial load,” President Travis Million wrote in an email. Nathaniel Herz welcomes tips at natherz@gmail.com or (907) 793-0312. This article was originally published in Northern Journal, a newsletter from Herz.Subscribe at this link. GET THE MORNING HEADLINES. SUBSCRIBE Republish 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. https://biomassmagazine.com/articles/us-forest-service-funds-pellet-biochar-bioenergy- projects US Forest Service funds pellet, biochar, bioenergy projects July 17, 2025 BY Erin Krueger U.S. Secretary of Agriculture Brooke Rollins on July 17 announced the U.S. Forest Service is awarding $80 million in Wood Innovation Grants to spur wood products manufacturing, expand active forest management, and accelerate energy innovation. “The United States is blessed with a bounty of natural resources that we must properly manage to sustain our future economy and boost rural communities. Proper forest use and management lowers our reliance on foreign products and is inherently aligned with President Trump’s America First agenda,” Rollins said. “We’re investing in innovation that ensures a steady, sustainable supply of American wood that not only supports jobs and fuels economies, it protects the people and communities we serve, as well as the forest resources they depend on to survive and thrive.” The Wood Innovation Grants Program, launched in 2015, stimulates, expands, and supports U.S. wood products markets and wood energy markets to support the long-term management of National Forest System and other forest lands. National focus areas include mass timber, renewable wood energy, and technological development that supports hazardous fuel reduction and sustainable forest management. More than 100 awards have been made under the Wood Innovations Grant Program so far this year. These awards support a wide variety of project types, including those focused on wood pellets, biochar and energy production. Awards made in 2025 include: • $184,000 to the Alaska Energy Authority to advance multiple wood energy projects in interior Alaska that will increase markets for low-value wood and enhance active forest management activities. • $250 million to Arizona State University to support the development and testing of woody biochar coated granules to improve road performance and water runoff quality supporting active forest management by enhancing markets for low-value wood. • $300,000 to California-based American Wood Fibers Inc. to support the installation of a wood pellet mill to increase low-value wood utilization while supporting active forest management in California. https://biomassmagazine.com/articles/us-forest-service-funds-pellet-biochar-bioenergy- projects • $150,000 to the California-based Fall River Resource Conservation District to establish biochar production capabilities to support active forest management and wildfire risk reduction across national forests in California. • $300,000 to Idaho-based IFT Technologies to develop an approved renewable fuel standard pathway for mill and forest residues supporting active forest management and wildfire risk reduction. • $150,000 to the Maryland-based Garrett County Board of Commissioners to support the design of a biomass thermal energy system to expand markets for low value timber and support active forest management in Maryland. • $300,000 to the Massachusetts-based Slaves of the Immaculate Heart of Mary St. Benedict Center Inc. to support the installation of a district wood energy system to expand markets for low value forest biomass thereby supporting active forest management. • $114,553 to Northern Michigan University to support an engineering plan to restart a biomass energy system at a Michigan university, resulting in increased markets for low-value wood and support for active forest management. • $299,986 to Western Michigan University to develop a pathway to produce biochar asphalt additives using low-value forest biomass thereby supporting active forest management and wildfire risk reduction. • $1 million to Montana-based Big Sky Bioenergy LLC to establish a wood energy facility and biochar plant at a large sawmill in Deer Lodge, Montana, to support active management and reduced wildfire risk on National Forests in Montana. • $300,000 to Montana-based Faradyne Power Systems Corp. to design a facility in Silver Bow, Montana, to produce wood-based renewable diesel, graphene and biochar creating a new market for low-value woody biomass thereby reducing the costs of forest management. • $300,000 to New Hampshire-based PK Wood Pellet LLC to support the installation of Install new pellet mill at a former sawmill site to expand markets for low-value wood while supporting active forest management in the northeast U.S. • $300,000 to New Mexico-based Western Wood Products Inc. to automate wood pellet processing to increase biomass utilization and support rural economic development and active forest management. https://biomassmagazine.com/articles/us-forest-service-funds-pellet-biochar-bioenergy- projects • $220,928 to North Carolina State University to expand biochar production as a tool for processing large volumes of forest biomass following natural disasters. • $229,199 to Oregon-based Freres Lumber Co. Inc. to enhance biochar markets at a plywood manufacturer to support active forest management on national forests in Oregon. • $50,000 to Oregon-based Wisewood Inc. to provide life cycle assessment to advance biomass energy projects using wildfire fuel reduction materials thereby supporting active management and markets. • $118,396 to Pennsylvania-based Deer Park Lumber Inc. to upgrade a wood-fired boiler system to improve lumber production efficiency and support active forest management in Pennsylvania. A full list of awarded projects is available on the U.S. Forest Service website. e-Edition ●Today's Paper ●Games - New!●Obituaries ●ADN Store ●Promotions ●Sponsored Content ●Manage account ADVERTISEMENT Energy Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis By Alex DeMarban Published: 1 day ago Offshore petroleum platforms stand in Cook Inlet on July 1, 2024 as photographed from in Nikiski. (Loren Holmes / ADN) 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…1/20 The newly signed tax, spending and immigration bill seems likely to complicate efforts to resolve the natural gas crisis in Southcentral Alaska because it quashes Biden-era tax credits that supported wind and solar projects, people familiar with the state’s energy industry say. The One Big Beautiful Bill Act also could boost oil and gas development in the state, though it will be years before those benets could pan out, they say. With more lease sales on federal land and eased permitting requirements, the law opens the door for potential investment from the oil and gas industry, they say. But whether those companies move through the door is another question because of the enormous cost of development in remote areas of Alaska. “The bill solves the access issue of oil and gas development, but the economics still remain challenged,” said Brad Keithley, a former oil and gas attorney and longtime industry observer in Alaska. He said the bill moves the needle about 3 points on future oil and gas production in Alaska, out of 10. Sullivan: A ‘giant home run’ President Donald Trump signed the bill into law on July 4, extending tax cuts implemented in 2017 and taking unprecedented steps to overhaul the federal government. ADVERTISEMENT Replay Learn more 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…2/20 ADVERTISEMENT The bill, which was aggressively opposed by Democratic lawmakers, has faced sharp criticism for beneting the wealthy while making massive cuts to social safety net programs, including Medicaid and food assistance. Alaska-favorable provisions in the law that the state’s all-Republican congressional delegation fought to include are meant to blunt those impacts in the state. ADVERTISEMENT … - New Episodes of Martin Scorsese Presents Fox Nation Sponsored Watch Now [Murkowski, Sullivan sought to insulate Alaska from the harshest impacts of the budget reconciliation bill. Will it be enough?] The Alaska perks also helped win a key vote from U.S. Sen. Lisa Murkowski. Murkowski was unavailable for an interview for this story. U.S. Rep. Nick Begich’s ofce did not respond to 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…3/20 requests for an interview. Alaska’s congressional delegation has celebrated several aspects of the bill, including that it will boost Coast Guard spending by billions of dollars for polar ships and provide $300 million to homeport an icebreaker in Juneau. The delegation also has touted its support for resource development in Alaska. An important Alaska-only provision in the law provides a 40% boost in the state’s share of any future oil royalties from key federal lands such as the Arctic National Wildlife Refuge on the North Slope. But the new 70-30 split favoring Alaska doesn’t go into effect for eight years. And it faces potential hurdles that could reduce its benets, including in the Arctic refuge, where the potential for development has led to decades of controversy and where major oil and gas companies so far have shown no interest in acquiring leases. Still, pro-development Alaskans say the new law will help the state capitalize on its oil and gas resources. It creates more opportunities for companies to lease land in the Arctic refuge and the National Petroleum Reserve-Alaska, also on the North Slope and home to ConocoPhillips’ giant Willow oil discovery. Randy Ruaro, head of a state development agency that holds oil leases in the Arctic refuge’s coastal plain, said the larger revenue split for Alaska could be worth more than $200 million annually from oil production there. The Alaska Industrial Development and Export Authority intends to conduct seismic exploration this winter, Ruaro said. That will provide the rst modern look at oil potential in the refuge, which federal geologists say contains several billion barrels of oil, based on 1980s-era seismic data. “It’s extremely helpful with developing ANWR,” Ruaro said. 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…4/20 The new law requires oil and gas lease sales in the Arctic refuge and the National Petroleum Reserve-Alaska for several years, extending well past the current presidential administration, U.S. Sen. Dan Sullivan said in an interview Wednesday. The law also calls for oil activity in ANWR and in the petroleum reserve to fall under rules established in the Trump administration instead of more strict guidelines established in the Biden era, he said. Notably, it also will allow project developers to pay an “opt-in fee” to expedite environmental reviews for development, he said. ADVERTISEMENT The new rules will speed up development and give companies economic and political stability that will support their investments, he said. 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…5/20 Sen. Dan Sullivan tears up a paper that outlined his concerns with energy policy under the previous presidential administration. Several members of the Trump administration joined Sen. Dan Sullivan and Gov. Mike Dunleavy for a rally with North Slope workers and international visitors at Pump Station 1 of the Trans-Alaska Pipeline System on June 2, 2025. (Marc Lester / ADN) “This is a giant home run for us, and I think it’s going to create thousands of jobs and huge additional revenues for the state of Alaska,” Sullivan said. The larger royalty share for Alaska will also apply to development in the petroleum reserve on Alaska’s North Slope, a hot oil prospect, Sullivan said. But experts including Keithley point out that under the law, royalties from the petroleum reserve are directed to a small number of North Slope communities. “It’s not going to be going to the state general fund,” Keithley said. Jenny Hyde, federal infrastructure coordinator for The Alaska Center, said that the opt-in fees that allow expedited reviews will hurt public input and, ultimately, the environment. 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…6/20 It comes atop other portions of the law that are meant to ease resource development, including for coal and mining, she said. “This bill is a disaster for Alaska and the environmental community,” she said. ADVERTISEMENT A ‘big no-show’ for Cook Inlet natural gas? The new law, with its focus on ending tax credits for solar and wind projects, adds to uncertainty about how Southcentral Alaska will solve the projected shortage of natural gas from Cook Inlet that for decades has heated and powered homes and buildings in the Anchorage region. The law calls for at least six leases sales by 2032 in Cook Inlet’s federal waters. But the area for many years has drawn little to no interest from exploration companies, leading at times to canceled sales. Begich, in a recent opinion piece, said the new law “unlocks stranded gas in Cook Inlet.” “Hell no,” Keithley said in disagreement. The law doesn’t change the fact that Cook Inlet exploration is challenged by huge costs needed to nd the gas and relatively little payoff because the Southcentral Alaska market is so small. “The market on the gas side is so constrained. I just don’t see people jumping all over that,” Keithley said. 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…7/20 John Hendrix, who owns Furie, a gas producer in Cook Inlet, said he likes the bill in part because it could help “open up Alaska for development in a sensible, sustainable way.” But he doesn’t see those advantages for Cook Inlet gas production, he said. “I don’t think anything in the Big, bad, Beautiful Bill helps Cook Inlet,” he said, adding that he was using the word “bad” in a complimentary sense. In fact, the bill could be a drawback for the Cook Inlet region, he said. That’s because it potentially creates new federal loan support for the $44 billion Alaska LNG project that, if built, would deliver North Slope gas to Southcentral Alaska, competing with locally produced gas, Hendrix said. That loan support would fall under the Energy Dominance Financing program created in the bill, under the Department of Energy. It would be in addition to a $28 billion federal loan guarantee that already exists for the Alaska LNG project. ADVERTISEMENT Zippered 20Piece First Aid Pouch “I see it as more of a threat,” Hendrix said of the bill’s approach to Cook Inlet gas production. Hendrix said he hopes the state wisely uses any extra money that it gets from future development to help ensure that the gas that exists in Cook Inlet can be produced. Larry Persily, an oil and gas analyst and former Alaska deputy commissioner of revenue, said the bill doesn’t change the difcult economics of development in Cook Inlet. “This is a big no-show on Cook Inlet,” Persily said of the bill. 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…8/20 Hurting wind and solar, but supporting hydropower The new law seeks to quickly eliminate tax credits for wind and solar projects that were approved in the 2022 Ination Reduction Act passed under former President Joe Biden, without support from Republicans. It protects the tax credits for hydropower, potentially creating new opportunities there, however. ADVERTISEMENT 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-challe…9/20 Wind turbines spin on Fire Island, owned by Cook Inlet Region Inc., on Thursday, March 6, 2025 in Anchorage. (Loren Holmes / ADN) The new limits for wind and solar could affect a variety of potential projects in Alaska, including two major wind projects that, if built, could together cut 12% of the demand for natural gas along the Railbelt. Those projects, Shovel Creek Wind outside Fairbanks and Little Mount Susitna Wind northwest of Anchorage across Cook Inlet, remain in the works, said Matt Perkins, co- founder of Alaska Renewables, a company working on the projects. “We are carefully evaluating the recent legislative changes and executive orders regarding renewable energy projects,” he said in a prepared statement. “While these developments introduce new complexities, we remain committed to advancing energy initiatives for Alaska.” “We will provide updates as we gain more clarity on the specic implications for our projects,” he said. In the lead-up to the bill’s passage, Murkowski said she negotiated for some credits not to be terminated for 12 months, potentially salvaging some Alaska solar and wind projects that faced a higher chance of elimination under an earlier House proposal. But even then, the tax credit window shortens the original timeline for the tax credit by several years. The shorter time frame means electric utilities in Alaska will need to quickly reach power purchase agreements with project developers, so they can meet construction-related requirements for the tax credit by next July 4, said Chris Rose, executive director of the Renewable Energy Alaska Project, which works to increase renewable energy use in Alaska. “It denitely reduces the options that Railbelt utilities are going to have over the next several years to decrease their heavy dependence on natural gas to generate electricity,” Rose said of the bill. “On the other hand, it’s also now putting a very strict deadline on those utilities to make a decision.” 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-chall…10/20 A spokesperson with the largest electric utility in Alaska said this past week that the utility is reviewing the bill’s provisions. “Our goals for adding renewable projects to our energy mix remain the same,” said Julie Hasquet, a spokesperson with Anchorage-based Chugach Electric Association. “However, without federal support, it’s likely costs will increase,” Hasquet said. “But we will continue to pursue projects, evaluating the economics and the impact on rates and reliability.” Doug Tansy, business manager with the International Brotherhood of Electrical Workers Local 1547 in Alaska, called the bill “a serious threat” to the renewable energy sector and to its jobs, in a statement from unions in Alaska that called the bill “disastrous.” “These are highly skilled professions that really bring a good quality of life to our community,” Tansy said in a recent interview. Tansy said that solar and wind power provides energy diversity that’s important in Alaska, especially with demand for electricity growing. “We need an all-of-the-above solution,” he said. “And now we’re taking some of that away.” On the other hand, the bill could produce new jobs for electrical workers if it can lead to more oil and gas development in Alaska, he said. The bill retains tax credits for several years for hydropower, which provides extremely low- cost power over time, said Curtis Thayer, head of the Alaska Energy Authority. The tax credits could boost opportunities for hydropower prospects in Southcentral Alaska, he said. Those include the Susitna-Watana Hydroelectric Project on the Susitna River, he said. “Susitna-Watana, even though it’s kind of been put on the shelf,” could produce enough electricity to meet well over half of the Railbelt’s electrical needs, he said. 7/14/25, 3:18 PM Budget reconciliation bill aids Alaska oil development, but also presents near-term challenges with gas crisis - Anchorage Daily News https://www.adn.com/business-economy/energy/2025/07/13/budget-reconciliation-bill-aids-alaska-oil-development-but-also-presents-near-term-chall…11/20 July 8, 2025 Overview of Area Projects and Transmission Map Ameresco Announces Landmark $240 Million Hydropower Project, Driving Energy Resiliency and Security in Alaska The project will help transition local industries to 100% renewable base-load energy and connect remote communities to diversified energy sources FRAMINGHAM, Mass. & JUNEAU, Alaska--(BUSINESS WIRE)-- Ameresco, Inc., (NYSE: AMRC), a leading energy solutions provider dedicated to helping customers navigate the energy transition, today announced its partnership with Juneau Hydropower, Inc. a recently Licensed Utility to develop, construct and operate a 19.8 megawatt (MW) hydroelectric facility at Sweetheart Lake, 33 miles south of downtown Juneau and its transmission and distribution assets. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250708639017/en/ The Sweetheart Lake Hydroelectric Facility is designed to generate an average of 116,000 megawatt- hours (MWh) annually, providing a 20% increase in baseload clean hydropower over Juneau’s current electrical generation. The project scope also covers the installation of a battery energy storage system (BESS), over 40 miles of high-voltage transmission infrastructure, including eight miles of undersea cable that will cross Gilbert Bay, and an interconnection substation with the existing Snettisham Transmission line adding energy security to Alaska’s capital city. This utility will connect underserved, remote areas that have previously relied solely on diesel generation to a reliable, renewable energy source. These components will also enhance local grid reliability and resilience in an area with a history of extreme weather events, including a 2008 avalanche that resulted in power outages that lasted as long as two months. The project is anticipated to increase overall energy transmission in the state by 3%. “This project is the catalyst for Juneau's sustained growth and prosperity, and we’ve used over 40 years of hydrological data to design hydropower operational parameters so that we can reliably produce energy in even the driest of years,” said Duff Mitchell, Managing Director, Juneau Hydropower. “By harnessing the power of Alaska’s waters, we’re investing in a future where unprecedented events can be weathered with confidence. We’ve worked in harmony with local environmental scientists and stakeholders to create the reliable, resilient power needed by our community.” Sweetheart Lake is located within the territorial limits of the City and Borough of Juneau, Alaska on the east shore of Gilbert Bay. Sweetheart Lake drains into Gilbert Bay (an arm of Port Snettisham) via Sweetheart Creek. The hydroelectric dam is expected to offset 82,012 metric tons of CO2 emissions annually. It will deliver reliable, renewable baseload electricity through a process that does not burn fossil fuels, create pollution, or harm wildlife; and enhances local ecology by utilizing the Sweetheart Lake habitat as a fishery. A true economic and environmental win for Juneau, Alaska, and our Nation. One of the planned customers is Coeur Alaska, Inc.’s Kensington Mine, located 45 miles north-northwest of Juneau in the Tongass National Forest. The mine is currently powered by onsite diesel generators but is expected to transition to primarily renewable base-load energy to power operations once the Sweetheart Lake Hydroelectric Facility is operational. “This multi-faceted project is a major milestone for both Alaska, Juneau Power and Ameresco,” said Nicole Bulgarino, President of Federal Solutions and Utility Infrastructure at Ameresco. “We’re proud to be working on this critical hydropower project and major electrical infrastructure that has factored in both community needs and responsible development, in addition to supporting energy reliability and long-term economic growth in line with the vision outlined in the Alaska Executive Order: Unleashing Alaska’s Extraordinary Resource Potential.” In addition to development and construction, the project includes a long-term Operations and Maintenance (O&M) contract, ensuring sustained performance. To learn more about the hydropower solutions offered by Ameresco, visit https://www.ameresco.com/hydropower/. About Ameresco, Inc. Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading energy solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering diversified generation solutions to Federal, state and local governments, utilities, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit www.ameresco.com. The announcement of a customer’s entry into a project contract is not necessarily indicative of the timing or amount of revenue from such contract, of Ameresco’s overall revenue for any particular period or of trends in Ameresco’s overall total project backlog. This project was included in Ameresco’s previously reported contracted backlog as of March 31, 2025. View source version on businesswire.com: https://www.businesswire.com/news/home/20250708639017/en/ Media Contact: Ameresco: Leila Dillon, 508-661-2264, news@ameresco.com Source: Ameresco, Inc. View this email in your browser View this email in your browser Alaska Electric Vehicle Working Group Newsletter, July 8, 2025 Vehicles Readiness During Wildfires Fire season on your mind? Ours, too! According to the Alaska Interagency Coordination Center Situation Dashboard there were 195 active fires in Alaska as of July 2. In recent weeks, fires across the state have threatened towns and caused thousands of people to be in varying levels of evacuation status. While there are many actions people can take to be fire wise, we want to revisit some vehicle specific recommendations we wrote about in a previous newsletter. We hope you are all staying safe out there. Here are some recommendations to keep in mind: Keep Vehicles Ready to Go: Keep electric vehicles (EVs) as fully charged as the manufacturer recommends (usually 80-90 percent) and Outlook AEA EV News: Wildfires, Electric Vehicles, and Fast Chargers From Alaska Energy Authority <bdixon@akenergyauthority.org> via mailchimpapp.net Date Tue 7/8/2025 10:33 AM To Sara Martinchick <sbmartinchick@akenergyauthority.org> 9/26/25, 3:23 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAMIgL9LyJd9DpwsnrKluNa0%3D?nati…1/6 keep internal combustion engine (ICE) vehicles topped up with fuel so that you can quickly evacuate in case of an emergency and not need to worry about recharging or refueling. Prepare for Flexible Charging: Consider acquiring and function testing a mobile charger with adapters to allow you to charge your EV away from home at alternative locations like a workplace, RV park, shopping destination, or at the home of a friend or family member. Keep Access Clear for Firefighters: If you must leave your vehicle behind in the event of an evacuation, consider parking it away from combustibles like trees or structures to reduce further losses. That way if the worst situation does happen and it catches on fire, it is not inside of, or near, a building. Park your vehicle in a place that allows fire fighters to maintain easy access to other structures. This applies to ICE vehicles, too! Avoid Burned EVs: Be cautious handling or approaching any EVs that were burned in a wildfire. Safety First: Prioritize your personal safety. Vehicles are replaceable but you are not! Topic: Are EVs a Solution for Arctic Isolated Microgrid Communities? Hear from Michelle Wilber of the Alaska Center for Energy and Power about her recent article Are Electric Vehicles a Solution for Arctic Isolated Microgrid Communities which was selected as an Editor's Choice Article in the World Electric Vehicle Journal. Michelle will talk about partnering with three rural Alaska communities, Kotzebue, Galena, and Bethel, to investigate how fueling costs and greenhouse gas emissions could be impacted by a switch from 9/26/25, 3:23 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAMIgL9LyJd9DpwsnrKluNa0%3D?nati…2/6 internal combustion engines to EVs. Learn about different vehicle use case scenarios and discover when and where a switch to an EV might be most beneficial. Other partners on this project included Jennifer Schmidt and Tim Bodony of the University of Alaska, Anchorage Institute for Social and Economic Research, Tobias Schwoerer of the University of Alaska Fairbanks International Arctic Research Center, Leif Albertson of the UAF College of Rural and Community Development, Matt Bergan and Tom Atkinson of the Kotzebue Electric Association and Joseph Groves of the Alaska Technical Center. Read a recap of this article in our May newsletter! Join on Zoom here! Meeting ID: 890 7677 5786 Passcode: 695538 +16694449171,,89076775786# US New DC-Fast Chargers in the Valley We caught up with Kendall Ford of Wasilla to learn about the new EV chargers being installed at their location. Kendall had to install a new transformer to accommodate 480-volt power for the chargers which are expected to be open for paid public charging by the end of July. They said that installation is complete, they’re just waiting for a final inspection and for the power to be turned on. The two 120-kilowatt- hour chargers will each have two plugs, allowing four EVs to charge at once. 9/26/25, 3:23 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAMIgL9LyJd9DpwsnrKluNa0%3D?nati…3/6 Federal Court Issues Injunction Releasing NEVI Funds to 14 States 9/26/25, 3:23 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAMIgL9LyJd9DpwsnrKluNa0%3D?nati…4/6 On June 24, 2025, U.S. District Judge Tana Lin issued a preliminary injunction in the U.S. District Court for the Western District of Washington, ordering the federal government to release National Electric Vehicle Infrastructure (NEVI) Formula Program funds to 14 of 16 states that had filed a lawsuit asking for funding to be restored. Background The NEVI Formula Program was established under the 2021 Infrastructure Investment and Jobs Act to provide $5 billion over five years for the development of a national electric vehicle charging network. In early 2025, the federal government paused the distribution of NEVI funds, citing a review of existing programs. NEVI Formula Program guidance was withdrawn and is slated to be re-released soon. Approvals of states’ EV implementation plans were suspended until new guidance is released and a policy review can be completed. Sixteen states and Washington D.C. filed a lawsuit challenging the pause and suspension of plans, arguing that the executive branch lacked the authority to withhold congressionally appropriated funds and that the withholding of funds has caused harm to people and programs in the states. The plaintiffs included: Washington, Colorado, California, Arizona, Delaware, Washinton D.C., Hawaii, Illinois, Minnesota, Maryland, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Wisconsin Court Ruling Judge Lin granted a preliminary injunction to release the funds citing harm that had been done by withholding them. The injunction requires the federal government to resume distribution of NEVI funds to the successful plaintiff states while the case proceeds and restore approval of their states’ EV implantation plans. What’s next? The ruling applies only to the 14 of the states that joined the lawsuit. Alaska was not part of the lawsuit so will not have funds restored for the time being. Of the plaintiffs, Washington D.C., Minnesota, and Vermont were not successful in their efforts to demonstrate “harm” and are not covered by the ruling. The case remains ongoing, and the final outcome will depend on further proceedings. The federal government has the chance to appeal Judge Lin’s order. For more information, the full court order is available here, and the original complaint can be accessed here. What We're Reading 📰 NEVI Lawsuit Full Complaint Judge Tana Lin’s Full Preliminary Injunction US states sue over Trump freeze on funds for electric-vehicle charging stations | Reuters 9/26/25, 3:23 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAMIgL9LyJd9DpwsnrKluNa0%3D?nati…5/6 Judge blocks Trump administration from withholding funds for EV charger infrastructure | Reuters Are Electric Vehicles a Solution for Arctic Isolated Microgrid Communities Facebook LinkedIn Website Copyright © 2025 Alaska Energy Authority, All rights reserved. Alaska EV Work Group Listserv Subscribers Our mailing address is: Alaska Energy Authority 813 W Northern Lights Blvd Anchorage, AK 99503-2407 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. 9/26/25, 3:23 PM Mail - Sara Martinchick - Outlook https://outlook.office.com/mail/id/AAQkAGMzZTE3ZTMxLTNkMTgtNDA3ZC04NGZlLWE1OTM5YjAzMzI3ZAAQAMIgL9LyJd9DpwsnrKluNa0%3D?nati…6/6 FEMA Authorizes Funds to Fight Nenana Ridge Complex in Alaska Release Date: July 7, 2025 BOTHELL, Wash. - The Federal Emergency Management Agency (FEMA) authorized the use of federal funds to help with firefighting costs for the Nenana Ridge Complex burning in the Yukon-Koyukuk Census Area and Fairbanks North Star Borough, Alaska. The state of Alaska’s request for a declaration under FEMA’s Fire Management Assistance Grant (FMAG) program was approved by FEMA Region 10 Acting Administrator Vincent J. Maykovich on Saturday, July 5, 2025, at 10:11 p.m. PT. He determined that the Nenana Ridge Complex threatened to cause such destruction as would constitute a major disaster. This is the third FMAG declaration in 2025 to help fight Alaska wildfires. At the time of the state’s request, the wildfires threatened homes near the communities of Nenana and Fairbanks. The fires also threatened communication towers, watershed, fishing streams, spawning sites, wildlife, environmental and cultural resources, commercial sites, and parts of the George Parks Highway, the Alaska Railroad, and the Alaska Energy Authority’s Alaska Intertie transmission line. FMAGs make funding available to pay up to 75 percent of a state’s eligible firefighting costs for fires that threaten to become major disasters. Eligible items can include expenses for field camps, equipment use, materials, supplies and mobilization and demobilization activities attributed to fighting the fires. These grants do not provide assistance to individual home or business owners and do not cover other infrastructure damage caused by the fires. Page 1 of 1 Page printed at fema.gov/press-release/20250708/fema-authorizes-funds-fight-nenana-ridge- complex-alaska 07/08/2025