HomeMy WebLinkAbout2026.03.01 2025 AEA Annual Report (Final)Bradley Lake Hydroeletric Project, Homer, Alaska
2025
ANNUAL
REPORT
The Alaska Energy Authority is the State’s trusted leader in
reducing energy costs and advancing statewide energy policy.
akenergyauthority.org
Ahkiok, Alaska
Letter from the Governor 4
Letter from the Chair 5
Letter from the Executive Director 6
Owned Assets 8
Railbelt Transmission Organization 11
Power Cost Equalization 12
Rural Energy 14
Renewable Energy and Energy Efficiency 18
Grants and Loans 22
Financial Highlights 24
Board of Directors 26
Executive Team 27
For 50 years, AEA has
served Alaska—delivering
reliable, affordable
energy solutions to
communities statewide.
Table of
Contents
2025 AEA Annual Report | 3
This publication summarizes the activities and financial
2 | 2025 AEA Annual Report
Alaska Sustainable Energy Conference, Anchorage, Alaska
As we look toward the future, Alaska stands at a pivotal moment in its energy journey. For 50 years,
the Alaska Energy Aurhotiy (AEA) has been a cornerstone of progress—advancing reliable, affordable
energy solutions for communities from the Railbelt to the most remote corners of our state.
Dear Fellow Alaskans,
Our energy landscape is as vast and
diverse as our geography. While most
Alaskans live along the Railbelt, nearly
a third reside in rural communities,
many off the road system, each with
distinct challenges and opportunities. By
strengthening our backbone transmission
system and deploying innovative
solutions statewide, we are building an
energy future for all. Alaska’s history is
one of resilience and vision. Today, we’re
preparing our infrastructure for emerging
technologies and leveraging our
resources to attract large-scale industrial
growth and new export opportunities.
With this momentum, AEA is driving
forward major initiatives that will deliver
real benefits for Alaskans. The Railbelt
Transmission Organization, established
through House Bill 307 and housed
within AEA, creates fair, transparent grid
access and cost recovery. The Bradley
Lake Hydroelectric Expansion, the largest
renewable energy project in Alaska in
more than 35 years, will boost clean
power by 50 percent, support thousands
of jobs, and generate hundreds of
millions in economic output. The Cook
Inlet PowerLink, backed by one of the
largest federal energy grants in our
state’s history, bolsters reliability for 75
percent of Alaskans and adds redundancy
for military and industrial users.
Collectively, these projects will unlock
new generation, improve reliability, and
enhance energy security. By lowering the
cost of power on the Railbelt, we also
reduce the costs for rural Alaskans under
the Power Cost Equalization formula.
These investments mean more jobs
for Alaskans, lower energy costs for
families, and new opportunities for rural
communities. As we pursue this progress,
we remain committed to partnerships
that provide certainty and durability.
By working with our federal partners
and through initiatives like the Alaska
Sustainable Energy Conference, which
brings together visionaries, researchers,
policymakers, and investors, we ensure
collaboration drives progress.
I am proud of the momentum we have
built together. The next 50 years belong
to Alaska. Let’s keep moving North to the
Future, delivering opportunity, security,
and prosperity for every community.
Sincerely,
Mike Dunleavy
Governor
As AEA marks 50 years of service, the Board reflects on a legacy built on resilience,
innovation, and partnership. This milestone is not only a celebration of the past—it is a
call to action for the future.
Our role as stewards of public
resources and fiduciary guardians
has never been more critical as
Alaska navigates an evolving
energy landscape.
The Board’s responsibility is clear:
provide governance that ensures
accountability, transparency, and
strategic alignment with Alaska’s
long-term energy needs. We
are committed to guiding AEA
through complex challenges—
strengthening transmission
infrastructure, advancing renewable
energy, and preparing for emerging
technologies—while safeguarding
affordability and reliability for all
Alaskans.
This past year also marked the
Board’s first year operating fully as
a governance board. Comprised of
members with diverse regional and
industry perspectives, the Board
has focused on strengthening
its role through open dialogue,
thoughtful oversight, and a shared
commitment to long-term strategy.
Through an engaged strategic
planning process, the Board has
worked in close alignment with
AEA’s executive director and
team—fostering transparency,
trust, and a clear understanding of
roles. This collaborative approach
positions AEA to move forward
with clarity and confidence as it
enters its next 50 years.
Looking ahead, the Board is
focused on three priorities:
Strategic Planning: We are shaping
a vision that anticipates high-
load growth, supports economic
development, and integrates next-
generation energy technologies
such as geothermal, nuclear, and
storage.
Infrastructure Investment: We will
continue to champion projects that
strengthen the Railbelt backbone
and deliver sustainable solutions
for rural communities, ensuring
equity across Alaska’s diverse
regions.
2025 AEA Annual Report | 5 4 | 2025 AEA Annual Report
Partnership and Policy:
Collaboration with state, federal,
and private partners remains
essential. The Board advocates
for durable policies and financing
frameworks that enable long-term
investment and innovation.
As we enter the next chapter, our
commitment is unwavering: to
uphold the trust placed in us, to
act with integrity, and to ensure
that AEA remains a catalyst for
progress. The decisions we make
today will shape Alaska’s energy
future for generations to come.
On behalf of the Board, thank you
for your confidence and support.
Together, we will build an energy
system that reflects Alaska’s
values—resilient, affordable, and
forward-looking.
Clay Koplin
Chair
Letter From
THE GOVERNOR
Letter from The Chair
Bradley Lake Hydroelectric Project, Homer, Alaska
Turning vision into action requires
deliberate, long-term investments in
Alaska’s energy backbone, the Railbelt.
One of the most significant is the Cook
Inlet PowerLink—a high-voltage direct
current transmission investment that
will connect the Southern and Central
Railbelt with subsea and overland
links, unlock constrained generation,
and provide redundancy for critical
loads, including military and future
industrial customers. The project’s
total cost is $413 million, supported
by a $206.5 million federal award from
the U.S. Department of Energy and
secured matching funds. Remaining
match financing continues to advance.
Engineering and environmental work
progressed in 2025, with permitting,
procurement, and design milestones
sequenced to keep the project on track
for commissioning in 2032.
In parallel, we advanced the Bradley
Lake Expansion Project—the largest
renewable energy investment in Alaska
in more than 35 years—with a proposed
$400 million upgrade to the Bradley
Lake Hydroelectric Project. By diverting
water from Dixon Glacier and raising
the dam to expand storage, the project
would boost Bradley Lake’s hydropower
production by up to 50 percent,
displacing natural gas on the Railbelt
and strengthening long-term energy
security. In early 2026, AEA reached a
key regulatory milestone by submitting
its Draft Amendment Application to the
Federal Energy Regulatory Commission.
Design and technical review continue
as we coordinate with utilities, Tribes,
regulators, and stakeholders to prepare
a Final Amendment Application in June
2026. Construction is anticipated in
2028, with operations targeted for 2031.
We also made progress on regulatory,
governance, and market infrastructure
that positions Alaska for more
efficient and transparent transmission
operations. Building on House Bill 307,
AEA continued work associated with the
Railbelt Transmission Organization—
including development of the Open
Access Transmission Tariff and
regulatory review with the Regulatory
Commission of Alaska—steps that
support cost‑effective backbone
transmission and fair access for future
projects.
At the same time, AEA continued to
drive improvements in rural Alaska. Our
teams advanced bulk fuel upgrades
and modernized rural power systems—
investments that deliver safe, reliable
energy to dozens of communities
across the state. Through statewide
infrastructure inventory and assessment
using 3D imaging, drone capture,
and GIS mapping, we are targeting
resources where they will have the
greatest impact, reduce energy costs
and strengthen long-term resilience for
rural Alaskans.
We also maintained momentum on
electric vehicle infrastructure with our
federal partners. Alaska’s National
Electric Vehicle Infrastructure plan and
related guidance are back on track; site
planning resumed, and we are working
toward initial corridor builds beginning
in 2026, consistent with updated federal
direction.
This progress does not happen in
isolation. I thank Governor Dunleavy,
the Alaska State Legislature, the
Alaska Congressional Delegation,
Railbelt utilities, local governments,
and community partners for their
continued support and collaboration.
Most of all, I thank the AEA team—your
professionalism and commitment drive
every achievement.
Together, we will build on this
momentum to deliver a resilient, future-
ready energy system for Alaska—
strengthening infrastructure, fostering
strategic partnerships, enhancing
reliability, and ensuring affordable,
sustainable power reaches every corner
of our state.
Curtis W. Thayer
Executive Director
2025 AEA Annual Report | 7 6 | 2025 AEA Annual Report
Letter From the
Executive Director 50%
As we enter 2026—our 50th year
of service—AEA moves forward
with momentum and purpose. Our
vision is clear: to build a resilient,
reliable, and affordable energy
future for all Alaskans—meeting
today’s needs while laying the
foundation for tomorrow.
Bradley Lake Hydroelectric Project, Homer, Alaska
$260M
The project would generate
about $260 million in wages
and benefits for workers.
LABOR INCOME
$584M
An estimated $584 million in
total economic output would
be generated across Alaska.
TOTAL ECONOMIC OUTPUT
3,250
The Bradley Lake Expansion
Project will create 3,250 direct,
indirect, and induced jobs in
Alaska.
JOBS CREATED
Kenai Peninsula, Alaska
gas, and support long-term energy affordability.
spillway by 16 feet to accommodate new inflows and
annually, offsetting about 7.5 percent of projected
Energy Regulatory Commission (FERC). The filing
finalizes the application.
The project would also deliver significant economic
benefits to Alaska during construction, including
statewide. Following the DAA filing, agencies will
The Bradley Lake Hydroelectric Project was energized in September 1991. Located near
Homer, Alaska, the project has provided low-cost electricity to the Railbelt for more than 35
years. The 120-megawatt (MW) facility generates about 10 percent of the Railbelt’s annual
electricity and delivers some of the lowest-cost power to more than 75 percent of Alaskans
from Homer to Fairbanks.
The project was funded through legislative appropriations, with AEA revenue bonds repaid
by the participating utilities. The Bradley Lake Project Management Committee manages
day-to-day operations, subject to AEA’s nondelegable rights, duties, and responsibilities.
In 2020, Bradley Lake’s energy output increased by 10 percent with completion of the West
Fork Upper Battle Creek Diversion Project. Later that year, AEA purchased a component of
the interconnected transmission system on the Kenai Peninsula (Sterling-Quartz Creek) to
reduce losses and improve system reliability.
With decades of proven performance, the Bradley Lake Hydroelectric Project now serves
as the foundation for the Bradley Lake Expansion Project, AEA’s next major investment in
Railbelt reliability and affordability.
In December 2020, AEA acquired the Sterling Substation–Quartz Creek Substation
transmission line, a 39.3-mile Kenai Peninsula corridor built as part of the Bradley Lake
Project to deliver hydropower to Railbelt utilities. The line operated at 115 kilovolts (kV)
and 69 kV and sustained extensive damage during the 2019 Swan Lake Fire, requiring four
months and $12 million in repairs before returning to service. In 2023, AEA removed the
decommissioned 69 kV segment.
In fiscal year 2025, AEA began a multi‑year upgrade to replace the line and raise it from 115
kV to 230 kV standards. This $90 million investment strengthens Railbelt infrastructure by
improving resilience, reducing line loss, and enhancing reliability. The work is proceeding
in three phases: Phase 1, completed in February 2025, upgraded about eight miles;
Phase 2 spans 17 miles, crosses the Kenai National Wildlife Refuge, and is in design and
environmental review; Phase 3 is scheduled for construction in 2028.
Once complete, the upgrades will improve long-term reliability, support future transmission
expansion north of Bradley Lake, and enable more efficient power delivery across the Railbelt.
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Owned Assets
In the 1980s, AEA helped shape Alaska’s energy future by developing
resources that diversified the economy and expanded access
to affordable energy. AEA built and owns key Railbelt infrastructure
—including the Bradley Lake Hydroelectric Project, the Sterling‑
to‑Quartz Creek transmission line, and the Alaska Intertie—that
strengthen system reliability and reduce costs for Railbelt consumers.
Since entering service in 1986, the Alaska
Intertie is a 170-mile, 345-kV transmission line
between Willow and Healy operating at 138 kV.
It connects Golden Valley Electric Association
(GVEA), which serves communities north of the
Alaska Range, with Southcentral Alaska utilities,
enabling power transfers and reserve sharing
between Anchorage and Fairbanks. Funded by
$124 million in state appropriations with no debt
service, the Alaska Intertie delivers GVEA’s share
of Bradley Lake power while reducing energy
costs. AEA manages the Alaska Intertie under
the Alaska Intertie Agreement in partnership
with Chugach Electric Association, Golden Valley
Electric Association, and Matanuska Electric
Association, ensuring equitable benefits across
the Railbelt. In 2025, AEA worked with the Intertie
Management Committee (IMC) on upgrades
between Anchorage and Healy. The Alaska
Intertie is transitioning from shared microwave
equipment with the Alaska Department of Public
Safety to a dedicated microwave system to
boost reliability. The IMC secured more than $11
million in Infrastructure Investment and Jobs Act
funding to reinforce structures in high snow-
load areas and enhance Railbelt data collection
through a synchrophasor system. In parallel,
AEA and Railbelt utilities completed the 2050
Railbelt Strategic Transmission Plan, a yearlong
effort involving utility, state, and independent
engineers. The plan identifies long‑term
transmission improvements to support reliability,
resilience, and coordinated Railbelt investment.
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From 2010‑2025, the Alaska Intertie saved GVEA customers an average of $35 million annually.
$35M
eight-year effort to strengthen the
project—the first application of
bidirectional power flow, unlocking
Railbelt system costs, CIPLink benefits
The project delivers significant
economic benefits during construction.
environmental permitting, refined cable
further refine engineering and
technical specifications, initiate
stack and advance the project into final
1,470
CIPLink would support 1,470
jobs—including 950 direct
jobs and 520 indirect and
induced jobs.
JOBS CREATED
$129M
The project would generate
an estimated $129 million
in wages and benefits for
workers across the state.
LABOR INCOME
$332M
An estimated $332 million in
total economic output would
be generated statewide.
TOTAL ECONOMIC OUTPUT
In 2024, Alaska took a significant step toward modernizing
the Railbelt transmission system by establishing the Railbelt
Transmission Organization (RTO) to develop a non‑discriminatory,
open‑access transmission tariff that ensures fair and transparent
grid access and cost recovery across Railbelt utilities. House Bill
307, signed into law on July 31, 2024, created the RTO as part of
broader Railbelt transmission reform.
For administrative purposes, the RTO operates as a division
of AEA and is governed by a committee that includes
representatives from AEA, each Railbelt utility, and the Railbelt
Reliability Council, which serves in an ex officio, non‑voting role.
This structure ensures broad utility participation, coordination,
and transparency in transmission planning and cost allocation.
In 2025, the RTO obtained a certificate of public convenience and
necessity from the Regulatory Commission of Alaska and filed its
proposed transmission tariff, meeting statutory deadlines. Filing
the tariff represents an important initial step in restructuring how
costs associated with the Railbelt’s backbone transmission system
are recovered, laying the foundation for a more efficient, reliable,
and equitable transmission framework.
Railbelt Transmission Organization
Perryville, Alaska
Unalaska, Alaska
Through PCE, AEA provides payments to eligible rural electric
utilities, which then apply credit to residential and community
facility customers for electricity use up to a specified
consumption limit. These credits lower the per-unit cost of
electricity for qualifying customers.
In many rural communities, pre-PCE electricity rates exceed
urban rates. Residential and community facility customers in
186 communities benefit from PCE credits. Based on monthly
utility filings, AEA calculates and disburses payments to eligible
utilities. AEA’s PCE team also provide technical assistance to
utility clerks to support accurate reporting and filing.
PCE disbursements are funded by the PCE Endowment
Fund. Alaska Statute 42.45.085 authorizes the Legislature to
appropriate up to five percent of the fund’s three‑year average
market value for PCE payments.
In recent years, the five‑percent draw has fully funded PCE
disbursements. Statutory changes enacted in fiscal year
2018 established how excess earnings are allocated. These
changes allow endowment earnings to fully cover PCE program
administrative costs and direct $30 million annually to the
Community Assistance Program. This statute also authorizes
up to $25 million to support the Renewable Energy Fund, Rural
Power System Upgrade projects, and the Alaska Division of
Community and Regional Affairs’ Bulk Fuel Revolving Loan
Fund.
In fiscal year 2025, AEA disbursed
$46M
750 kWh
70 kWh
Power Cost
Equalization
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81
In rural Alaska, diesel fuel supports power
generation and heating, while gasoline is
used for transportation. Most rural villages are
located along rivers or the coast and rely on
barges to deliver fuel for heating and diesel-
fired generators. Many bulk fuel facilities were
built more than 40 years ago, exceed their
useful life, and do not meet current standards.
While these facilities remain in service until
replaced or upgraded, they pose risks to public
safety and the environment. AEA’s Bulk Fuel
Upgrade program repairs and upgrades fuel
storage facilities, helping communities lower
fuel costs by purchasing fuel in bulk. In 2025,
AEA completed construction of a new bulk
fuel facility in Scammon Bay, including eight
tanks with gasoline and diesel dispensing.
Through the Alaska Bulk Fuel Infrastructure
Partnership—a collaboration among AEA,
the Denali Commission, Alaska Native Tribal
Health Corporation, and Alaska Village Electric
Cooperative—10 new bulk fuel facilities will
be built in Aniak, Eek, Kivilina, Kobuk, Noatak,
Quinhagak, Russian Mission, Shageluk,
Tuluksak, and Wales. In recent years, AEA has
placed greater emphasis on M&I projects.
In 2025, AEA completed critical upgrades in
Nelson Lagoon and Wales and advanced design
and procurement for facilities in Diomede and
Tununak. These projects support safe, reliable
fuel storage. Work includes tank and dispenser
replacements, safety upgrades, electrical
improvements, coating, and other high-return
investments.
Scammon Bay, Alaska
Rural Energy
Diesel efficiency typically improves
Bulk fuel facilities serve communities across Alaska.
400
The average bulk fuel facility stores about 100,000 gallons of fuel.
Average bulk fuel facility age exceeds 40 years; many are over 50.
40+
2025 AEA Annual Report | 15 14 | 2025 AEA Annual Report
AEA’s Rural Power Systems Upgrade (RPSU) program
improves power generation in small, off‑grid Alaska
villages. The Denali Commission is AEA’s primary
federal partner and requires a match of 50 percent
for non-distressed communities and 20 percent
for distressed communities. In 2025, AEA replaced
powerhouses in Nelson Lagoon and Rampart.
Engineering is complete, with construction planned
in Manokotak and Tuluksak, and design underway
in Chalkyitsik. AEA also manages Alaska’s federal
funding under the Environmental Protection Agency’s
Diesel Emissions Reduction Act (DERA), identifying
communities in need of new prime-power diesel
engines. Using DERA funds, AEA installs new, efficient
engines. In 2025, AEA completed a DERA project to
commission engines in Grayling for Alaska Village
Electric Cooperative and is managing a DERA project
for Middle Kuskokwim Electric Cooperative to replace
five engines in Chuathbaluk, Sleetmute, and Stony
River. AEA has shifted from full facility replacements
Allakaket, Alaska
to a focus on operations and maintenance to improve
efficiency and extend equipment life. Maintenance
and Improvement (M&I) projects are prioritized
through inventory, assessment, and needs-based
review. Work includes switchgear replacement, heat
recovery upgrades, engine controls, powerhouse
stabilization, and diesel genset replacement. In 2025,
AEA replaced switchgear in Larsen Bay, Nikolski, and
St. George, and completed a critical powerhouse
leveling project in Ruby.
Nelson Lagoon, Alaska
100K
Teller, Alaska
AEA’s Rural Training program equips
operators with the skills needed to
maintain energy infrastructure and
meet industry standards. In calendar
year 2025, 41 operators from around
the state completed training in Bulk
Fuel, Person in Charge, and Power
Plant Operations at the Alaska
Vocational Technical Center. By
strengthening operator capacity and
emphasizing routine preventative
maintenance, AEA helps improve
system efficiency and the lifecycles
of rural energy systems. In addition,
12 utility managers and clerks were
trained in best practices for managing
rural Alaska utilities through a
contracted instructor at the Alaska
Vocational Technical Center in Seward,
Alaska.
The Circuit Rider and Technical
Assistance programs provide
preventative support that helps
reduce emergency responses during
power outages in rural communities
with a populations between 20 and
2,000. AEA’s team routinely train rural
utility operators and managers on the
proper operations and maintenance
of generation and distribution
systems. In calendar year 2025, Circuit
Riders assisted eligible utilities 217
times through remote monitoring,
training, and technical consultation.
The team also completed 55 on-site
visits, providing hands-on assistance
and minor repairs in 27 rural
communities.
AEA assists rural communities during
extended power outages to reduce
the risk of death and property
damage. During an electrical
emergency, AEA supports utilities in
responding to outages and restoring
electric transmission and generation.
Financial or technical assistance,
including emergency repairs, may
be provided to stabilize systems and
protect critical infrastructure. AEA
works to address real or potential
emergencies before they escalate
into disasters or major losses.
Emergency response efforts may
include purchasing or installing
engines, generators, or transformers.
In 2025, AEA declared four electrical
emergencies in Akiak, Kwethluk,
Mertarvik, and Tuluksak.
AEA is advancing inventory and assessment (I&A) of
rural Alaska’s energy infrastructure using cutting-edge
technology. The I&A process prioritizes bulk fuel,
powerhouse and distribution systems, with experts
evaluating structures, equipment and components.
Teams record technical data, score asset conditions and
integrate findings into AEA’s ArcGIS Energy Data Hub
using three-dimensional imagery captured by drones and
Light Detection and Ranging technology. The platform
helps overcome logistical challenges in rural Alaska by
supporting construction management, operator training
and remote technical assistance. Its 3D capabilities allow
project managers to track milestones and access real-time
project data, improving efficiency, decision‑making and
cost savings. To date, AEA has created digital twins for 142
bulk fuel facilities and 165 rural powerhouses statewide.
In 2024, AEA launched a multiyear effort to assess
distribution systems and barge headers and has completed
imaging for 32 distribution systems and three barge
headers. The platform’s applications continue to expand,
including StoryMaps and operations and maintenance
conversion projects that link training videos, manuals and
technical specifications to infrastructure images.
Electrical Emergency AssistanceRural Training Circuit Rider and Technical Assistance
life, preventing electrical emergencies, and build community self-sufficiency. This supports the
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AEA’s Reality Capture Data Hub
AEA’s biomass program cuts diesel use,
creates jobs, and keeps fuel dollars in
Alaska. The program has funded more
than 20 woody biomass heating systems
for schools and buildings and provided
technical support for more than 50
systems. As co-lead of the Alaska Wood
Energy Development Task Group with
the U.S. Department of Agriculture Forest
Service (USDA-FS), AEA has supported
more than 170 feasibility studies. In
2025, AEA trained rural boiler operators
on chip boiler systems. During the past
year, AEA secured two USDA-FS grants.
One will fund engineering, design, and
construction of Tok School’s woodchip
combined heat and power system. The
other will fund engineering design for
cordwood systems in four communities.
Through Round 17 of the Renewable
Energy Fund, AEA funded construction of
a district heating system in Nenana. AEA
also co-leads the Alaska Biofuels Advisory
Group with the Alaska Department of
Transportation and Public Facilities.
AEA leads statewide electric vehicle (EV)
infrastructure deployment, working with
utilities, agencies, and communities to
reduce barriers and implement federal
and state funding. AEA convenes the
Alaska Electric Vehicle Working Group,
bringing together utilities, EV owners,
vendors, and municipalities through
quarterly meetings and technical outreach.
Following Federal Highway Administration
approval of Alaska’s FY26 National Electric
Vehicle Infrastructure (NEVI) plan, AEA is
partnering with the Alaska Department
of Transportation and Public Facilities
to advance fast charging along the
Anchorage–Fairbanks Alternative Fuel
Corridor, with planned expansion to other
highways and communities. Beyond NEVI,
the Alaska Rural EV Supply Equipment
Deployment project, supported by the
U.S. Department of Energy, has improved
charging in Delta Junction and Glenallen
and is advancing workforce development
and new sites, including Valdez and off‑
highway locations, in 2026.
Hydropower is a cornerstone of Alaska’s
energy system, offering long‑lasting,
low-cost, and highly reliable power from
the state’s abundant water resources. In
an average water year, hydroelectricity—
Alaska’s primary renewable energy
source—supplies more than 29 percent
of the state’s electricity. AEA supports 51
utility-scale hydroelectric projects, most
of which are located in Southeast and
Southcentral Alaska. Projects range from
early planning to full operation. Through
its hydropower program, AEA improves
development quality and efficiency,
helping reduce construction costs. AEA
works with state, federal, municipal, tribal,
and private partners to analyze, plan,
and support hydroelectric development.
Round 17 of the Renewable Energy Fund
supported an expansion study of the
Goat Lake Hydro Project near Skagway
and relicensing and repairs at the Pelican
Hydroelectric Project.
Solar technology continue to advance, with
lower‑cost panels, improved efficiency,
and more sophisticated inverters and
microinverters. Interest in solar installations
is growing statewide, ranging from
on‑ and off‑grid residential systems
to utility-scale projects. AEA supports
this growth by providing solar energy
information, technical assistance, and
resources, including guidance on system
design challenges such as microgrid
phase imbalance. Through Round 17 of
the Renewable Energy Fund (REF), AEA
funded construction of a utility-scale solar
photovoltaic (PV) project in Naknek. In
2024, AEA was awarded a competitive
$62.5 million grant from the U.S.
Environmental Protection Agency’s (EPA)
Greenhouse Gas Reduction Fund Solar for
All Program. In 2025, the EPA terminated
the Solar for All program nationwide. AEA
continues to pursue opportunities outside
the REF to support and develop solar
infrastructure projects across Alaska.
Lighting Upgrades, Whittier Harbor, Alaska
Alaska has abundant wind resources that
offer a clean option for communities
seeking to reduce reliance on volatile
fossil fuel prices. Advances in wind
technology have made wind power more
viable statewide, especially in remote and
rural areas. Alaska has practical experience
designing and operating integrated
wind energy systems in small microgrids.
At present, wind energy accounts for
about two percent of Alaska’s annual
electricity generation. AEA supports wind
development through Renewable Energy
Fund grants, with projects ranging from
wind-diesel hybrid systems to utility-scale
feasibility work along the Railbelt. State
support is critical in remote communities,
where cutting diesel use lowers costs and
improves energy resilience. AEA identifies
economic wind resources, supports
research for rural and Arctic use, and
promotes best practices through industry
coordination, including the Alaska Wind
Working Group and the semiannual
Alaska Wind Workshop.
*2023 Renewable Energy Fund: Impact and Evaluation Report
with local governments, non-profits, and tribal organizations to implement new solutions. They also offer technical assistance, outreach and education, funding,
2025 AEA Annual Report | 19 18 | 2025 AEA Annual Report
Renewable energy generated about 33 percent of Alaska’s electricity in 2022.*
33%
Renewable Energy and
Energy Efficiency
EVs now exceed one percent of registered vehicles in Alaska.
1%
More than 65 wood‑heating systems operate statewide.*
65
Hydropower supplied 29 percent of Alaska’s power.*
29%
Bethel, Alaska
Home Energy Rebates and training
Energy efficiency delivers fast, cost-effective energy savings for Alaska communities,
reducing demand while improving reliability and affordability. AEA’s energy efficiency
helping organizations use energy more effectively. In partnership with organizations such
efficiency through technical assistance, outreach, education, and funding statewide.
K-12 OutreachAlaska Energy Efficiency Partnership
Energy Efficiency and Conservation
AEA leads the Alaska Energy
Efficiency Partnership (AEEP),
a coalition of more than 50
public, private, and nonprofit
organizations focused on imroving
energy efficiency statewide. AEEP
provides a forum for members
to share insights on energy
efficiency and conservation,
funding opportunities, and project
updates. Through collaboration
and coordinated planning, AEEP
supports informed decision-making
and advances energy efficiency
across Alaska.
Since 2013, AEA has partnered
with AK EnergySmart to promote
energy literacy through the Power
Pledge Challenge (PPC) and the
AK EnergySmart curriculum. PPC
engages grade school students on
energy efficiency and conservation.
From August through November,
students take part in lessons,
school energy audits, community
profiles, and energy‑saving public
service announcements. In 2025,
PPC reached 2,000+ students in 92
classrooms. AEA also supports the
Clean Energy Olympics, in which
grade school students design,
build, and present model wind
turbines or solar systems. In 2025,
28 teams competed statewide,
with six qualifying for the World
KidWind Challenge.
Sections 50121 and 50122 of the
Inflation Reduction Act established
the Home Efficiency Rebates
and the Home Electrification
and Appliance Rebates. The U.S.
Department of Energy authorized
$74.4 million in combined formula
funding for Alaska. As the state
energy office, AEA is partnering
with AHFC to design and
administer a Home Energy Rebates
program. The act also established
the Training for Residential Energy
Contractors Program under Section
50123. AEA received $1,3 million
for program development and is
partnering with AHFC on program
rollout.
Renewable Energy – Village Energy Efficiency Program
AEA’s Renewable Energy‑Village Energy Efficiency Program (RE‑VEEP) expands the Village Energy Efficiency Program (VEEP), established
in 2010 to reduce per capita consumption through energy efficiency. After two rounds, $1.5 million supports nine RE‑VEEP projects that
reduce community energy use and costs through renewable energy, efficiency, and conservation upgrades in public buildings statewide.
With additional State Energy–Bipartisan Infrastructure Law funding, AEA is soliciting applications for RE-VEEP Round 3.
2025 AEA Annual Report | 21 20 | 2025 AEA Annual Report
City of Whittier (RE‑VEEP): Funding supported an
energy audit and lighting upgrades at Whittier’s port.
Glennallen/Delta Junction EVSE Upgrade (ARED):
Funding supports replacement of EV chargers in
Glennallen and Delta Junction to improve reliability
for late model vehicles.
Goat Lake Hydro Storage Expansion Study (REF):
Funding supports a reconnaissance study to assess
options to expand storage at the existing 4-MW Goat
Lake Hydroelectric Project serving Dyea, Klukwan,
Haines, and Skagway.
Kwethluk Wind and Storage (REF): Funding
provides gap support to complete installation and
integration of turbine generators, a battery storage
system, and dispatchable loads, including a 200-kW
boiler and electric thermal stoves.
Naknek Solar PV at Cape Suwarof (REF): Funding
supports construction of a 1-MW solar PV system,
expanding the existing 80-kW system and integrating
it with a previously REF-funded battery energy
storage system.
Nenana Biomass Heat System (REF): Funding
supports final construction of the Nenana Biomass
Facility heat system, serving five public buildings.
Pelican Hydro Relicensing, Restoration, and
Repair (REF): Funding supports Federal Energy
Regulatory Commission relicensing and fish habitat
restoration requirements for the 700-kW Pelican
Hydro Project.
Quinhagak Battery Storage (REF): Funding
supports construction of a battery energy storage
system integrated with Quinhagak’s power system.
RENEWABLE ENERGY AND ENERGY EFFICIENCY PROJECT HIGHLIGHTS
AEA administers the Power Project Fund (PPF), which offers
low‑interest loans to qualified applicants, including local utilities,
governments, and independent power producers. PPF provides
affordable financing to develop, expand, and upgrade electric
power facilities, including distribution, transmission, efficiency
upgrades, bulk fuel storage, and waste energy projects.
Loans support all project phases—from feasibility studies
to construction—with terms based on a project’s useful life.
Interest rates are tied to the 30-year taxable municipal bond
yield index, which stood at 5.56 percent in February 2026. As
of December 31, 2025, AEA’s loan portfolio totaled $29 million
across 15 loans supporting projects in multiple energy regions
statewide. In late 2025, AEA used the program to provide bridge
funding to communities impacted by Typhoon Halong, helping
speed emergency response efforts.
More broadly, PPF has financed Alaska‑based independent
power producers and supported development of the state’s two
largest and most recent solar farms in the Matanuska-Susitna
Valley. Together, these projects generate enough clean energy to
power about 1,600 homes, improving air quality and preserving
Cook Inlet’s natural gas resources. PPF also provided $20 million
to finance the Hiilangaay Hydroelectric Project, the largest rural
hydroelectric facility in Southeast Alaska, on Prince of Wales
Island. The project has enabled the island’s interconnected
communities to achieve nearly 100 percent renewable power
and supports Alaska’s long‑term energy diversification goals.
NJUS also configured the batteries
generators to operate more efficiently and reduce
offset heating fuel consumption and further reduce
2025 AEA Annual Report | 23 22 | 2025 AEA Annual Report
The Renewable Energy Fund (REF), established in 2008, helps
Alaskans reduce and stabilize energy by supporting viable
renewable energy projects. Since its inception in 2008, the
State has appropriated $333 million. The program drives energy
cost savings, supports technology transfers across Alaska, and
leverages federal and local funding. REF supports projects across
multiple phases—from early feasibility and design through
construction—helping communities advance technologies such
as biomass, energy storage, hydro, solar, and wind.
An independent analysis examined REF’s economic, community,
and environmental impacts. The study found that the REF
projects have offset over 120 million gallons of diesel fuel,
reduced more than 1 million metric tons of carbon dioxide, and
for every dollar invested returned $2.07 in benefits to residents
and the economy.
To date, REF has awarded 294 grants for renewable energy
projects statewide, supporting projects at various stages of
development, from feasibility and design through construction
and operation. More than 110 REF-supported projects are
currently operating. In fiscal year 2026, AEA recommended
the top six ranked projects for Round 17 of REF funding. The
Legislature approved and the Governor concurred with, a $6.3
million appropriation for Round 17. In early 2026, AEA solicited
REF Round 18. Following a rigorous review and evaluation
process, AEA recommended 29 applications totaling $41.2
million to the legislature for consideration in the fiscal year 2027
capital budget.
The Renewable Energy Fund Advisory Committee—a
nine-member committee, four of whom are legislators and
five of whom are appointed by the Governor—works in
consultation with AEA to provide policy guidance, support the
application and evaluation process, and develop final funding
recommendations. The committee’s review emphasizes technical
feasibility, cost effectiveness, community benefit, and long‑term
energy cost stability.120M
gallons of diesel and has offset over 2.2 million
Humpback Creek, Cordova, Alaska
Grants and
loans
Battery Energy Storage System, Nome, Alaska
Offers financing tailored to
REVENUES, EXPENSES, AND CHANGES IN NET POSITION (CONT)June 30, 2025 June 30, 2024
Total operating expense 119,642 109,343
Increase in net position 14,050*29,528*
STATEMENTS OF NET POSITION June 30, 2025 June 30, 2024
Assets
1,735,307 1,735,438
Deferred outflows - Public Employees’ Retirement System (PERS) and OPEB
Total assets and def outflows 1,753,818 1,735,438
Liabilities and net position:
328,272 324,021
Total liabilities, def inflows, and net position 1,753,818 1,735,438
REVENUES, EXPENSES, AND CHANGES IN NET POSITION June 30, 2025 June 30, 2024
72,410 68,253
2025 AEA Annual Report | 25 24 | 2025 AEA Annual Report
FY2025 Financial Highlights
Net Other Post-Employment Benefits (OPEB)
Curtis W. Thayer Executive Director Tim Sandstrom Chief Operating Officer
2025 AEA Annual Report | 27 26 | 2025 AEA Annual Report
Mark Billingsley, JD General Counsel
Board of Directors Executive Team
Brandy M. Dixon Chief Communications Officer Leonard Robertson Chief Information Officer Karen Turner‑Thern Chief Human Resources Officer
Pamela Ellis Controller Audrey Alstrom, PE Director of Renewable Energy and Energy Efficiency Programs
Josi Hartley Director of Federal Programs James Mendenhall, PE Director of Owned Assets
Conner Erickson Director of Planning
Clay Koplin Chair, Board Member Tony Izzo Board Member
Ingemar Mathiasson Board Member Robert Siedman Board MemberJulie Sande Commissioner, Alaska Department of Commerce, Community, and Economic Development
Duff Mitchell Vice Chair, Board Member
Llewellyn Smyth Commissioner Designee, Alaska Department of Revenue
ALSO FROM THE ALASKA ENERGY AUTHORITY
FEATURED PUBLICATION
STATEWIDE RAILBELT
ENERGY VISION
affordability across the Railbelt.
February 2026
STATEWIDE RAILBELT STATEWIDE RAILBELT ENERGY VISIONENERGY VISION
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