Performance Details
Department of Commerce, Community, and Economic Development - Alaska Energy Authority
Mission
Reduce the cost of energy in Alaska.
Core Services
- Owns and operates Bradley Lake, the Alaska Intertie, and the Sterling—Quartz Creek transmission line, and is advancing CIPLink (HVDC) to reduce single-point-of-failure risk, improve dispatch, support renewable integration, and strengthen grid resilience.
- Oversee the Bulk Fuel and Rural Power System Upgrade programs to improve rural energy safety and reliability.
- Administer the Power Cost Equalization program to lower rural electricity costs for homes and community facilities, serving over 82,000+ Alaskans in 188 mostly diesel-powered communities.
- The AEA collaborates with stakeholders to increase the safety, reliability, and efficiency of community energy systems through assistance and training.
- The AEA`s Planning Team manages grants and loans, coordinates energy project planning, and provides technical assistance and training while working with state, federal, and private partners—including the U.S. Department of Energy, Tribal and Indian Energy programs, and National Laboratories—to expand funding and bring new opportunities to communities.
 Mission Results
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Core Services |
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Performance Detail
| A: Result -The cost of energy in Alaska is reduced. |
| A1: Core Service - Owns and operates Bradley Lake, the Alaska Intertie, and the Sterling—Quartz Creek transmission line, and is advancing CIPLink (HVDC) to reduce single-point-of-failure risk, improve dispatch, support renewable integration, and strengthen grid resilience. |
Target #2: Ensure Cook Inlet PowerLink project remains on schedule to suport transmission infrastructure development benefitting Railbelt consumers.
In FY2025, the Alaska Energy Authority (AEA) advanced CIPLink through preliminary design, budget and schedule development, route evaluation, and environmental review. In September 2024, AEA accepted a $206.5 million grant from the U.S. Department of Energy (DOE), with an additional $64.2 million secured, while AEA continues to pursue the remaining $142.3 million in matching funds. The project is currently funded for FY2026—FY2027 project spending to meet the total project cost of $413.0 million. Progress is tracked against the approved project schedule to ensure timely delivery of milestones. This schedule-based approach provides a more meaningful indicator of project health than annual funding totals, which are often influenced by external factors beyond AEA`s control. Key challenges include coordinating phased funding requests, aligning procurement strategies with long-lead equipment timelines, and maintaining stakeholder engagement across utilities, government agencies, and community partners. A schedule-focused metric will help identify delays early - often a signal of funding or procurement constraints - and support proactive mitigation. In May 2025 the project, along with numerous other DOE projects were paused pending a review by the DOE Process Review Team. AEA must continue with critical tasks so that the project schedule will not be negatively impacted. Target Last Modified: 12/08/2025 |
| A2: Core Service - Oversee the Bulk Fuel and Rural Power System Upgrade programs to improve rural energy safety and reliability. |
Target #1: Reduce the number of Bulk Fuel Upgrade (BFU) projects awaiting construction.
Bringing facilities into compliance with federal and state codes and regulations enhances safety and reliability. Eliminating fuel spills from leaking tanks ensures that communities can fully utilize purchased fuel and avoid costly environmental cleanups. Additionally, adherence to business plan terms empowers owner-operators to manage fuel inventories and storage facilities more effectively, maximizing economic benefit. The chart above illustrates steady progress toward program goals. Due to rising construction costs and limited funding, AEA is shifting focus from full replacement projects to the Bulk Fuel Maintenance and Improvement program. This approach allows AEA to assess repair needs and provide partial funding to support critical maintenance. Each participating community receives a prioritized list of maintenance projects with estimated costs. Constructing a new tank farm typically ranges from $10 million to $12 million. Based on current estimates, replacing all bulk fuel facilities statewide would exceed $1 billion. AEA is expanding its partnership with the Denali Commission, which received a $100 million award from the Environmental Protection Agency for BFU projects in rural Alaska. This award will be managed by the Alaska Native Tribal Health Consortium and be sub awarded to AEA and the Alaska Village Electrical Cooperative. The program intends to build up to ten BFU projects in the next three years. Target Last Modified: 12/10/2025 |
Target #2: Reduce the number of Rural Power System Upgrade projects awaiting construction.
As illustrated in the graphic above, progress toward the goal is ongoing. The total number of projects varies due to many factors such as shifting community populations, which affect eligibility, and the emergence of new infrastructure needs. In response to rising construction costs, AEA is prioritizing its Maintenance and Improvement program over full powerhouse replacements. While many power plants and tank farms installed 15 to 25 years ago remain in reasonable condition, they often suffer from deferred maintenance and outdated technology. AEA is actively assessing site-specific needs to determine whether maintenance or full replacement is warranted. The cost of constructing a new powerhouse typically ranges from $5 million to $7 million. Based on current estimates, replacing all power plants statewide would exceed $300 million. Target Last Modified: 12/10/2025 |
Target #3: Power Project Fund (PPF) outstanding balance increases annually.
Between FY2015 and FY2024, the outstanding loan balance grew steadily due to increasing demand for lending under the program. However, from FY2024 to FY2025, the balance declined by four percent, reflecting reduced interest in the program. This decline was primarily due to competition from federally funded energy grant programs enable by the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). These programs offered substantial investment tax credits for renewable energy projects—particularly wind and solar—resulting in accelerated returns and reduced reliance on long-term capital. In FY2025, AEA observed renewed interest in the PPF program. This resurgence is largely attributed to a shift in federal policy under the new administration, which led to the recission and reappropriation of IIJA and IRA-funded grants. Additional contributing factors include: • Accelerated qualifying dates for IRA investment tax credits • Reduced emphasis on federal energy grants • A more technology-agnostic approach to energy development This reduction in competing federal programs has benefitted the PPF loan program. Despite a generally high interest rate environment, the statutory 52-week look-back rate under the PPF helps mitigate volatility, offering rate stability for borrowers. Recent statutory changes enacted under House Bill 307 are also likely to boost demand by enabling reduced interest rates for projects with significant state financial involvement. AEA anticipates that the current lack of competing federal grants, combined with a favorable outlook for interest rates cuts by the Federal Reserve, will increase demand for the program. There is a reasonable expectation that demand may exceed available lending funds over the next one to two years. As a robust, patient-capital loan program, the PPF program supports both preliminary and advanced-stage projects, including infrastructure repair and replacement and new generation development. Its ability to offer low-interest financing for early- and later-stage projects is a unique advantage over traditional lending options. The current uncommitted cash balance, net of existing loan commitments, is approximately $10.8 million. This represents a low-moderate level. Based on recent loan sizes and inquiries received in the first quarter of FY2025, this balance is estimated to support approximately two projects, with an average loan amount of $4.5 million loaned per project. Target Last Modified: 12/10/2025 |
| A3: Core Service - Administer the Power Cost Equalization program to lower rural electricity costs for homes and community facilities, serving over 82,000+ Alaskans in 188 mostly diesel-powered communities. |
Target #1: Maximize each utility"s Power Cost Equalization (PCE) benefits to 100 percent of eligibility.
Each fiscal year, the PCE base rate is determined as the weighted average electricity price across Anchorage, Fairbanks, and Juneau. This rate serves as the benchmark for calculating eligible credits. The chart above illustrates the proportion of PCE eligible residential kilowatt-hours (kWhs) sold compared to the total residential kWhs sold. As of FY2023, residential customers are eligible for PCE credit for up to 750 kWhs per month per customer. Any usage beyond this threshold is billed as the utility`s full rate. In FY2024, the average monthly residential electricity consumption was 341 kWh per household, well within the eligibility limit. The statistical report for FY2025 is scheduled to be finalized by March 1, 2026. Target Last Modified: 12/10/2025 |
| A4: Core Service - The AEA collaborates with stakeholders to increase the safety, reliability, and efficiency of community energy systems through assistance and training. |
Target #1: Circuit Rider assistance is provided to eligible communities.
In FY2025, the Circuit Rider program conducted 50 onsite assistance visits across 27 communities, and provided 243 instances of remote assistance to 63 communities. As illustrated in the chart above, the number of site visits have been affected by the challenges in filling a third open Circuit Rider position. This role requires is a highly specialized expertise, making recruitment and retention difficult. AEA also leverages onsite visits to deliver itinerant training tailored to each utility"s specific infrastructure, further strengthening local capacity and operational resilience. Target Last Modified: 12/10/2025 |
Target #2: All rural utilities (electric and bulk fuel) have appropriately trained operators and clerks.
In partnership with the Alaska Vocational Technical Center (AVTEC), AEA has revised its approach to power plant operator training. The updated format includes a 10-week virtual instruction period followed by a two-and-a-half-week in-person lab at AVTEC. This hybrid model has lowered program costs and improved participation. As more students graduate, the number of individuals requiring training has decreased. This year 52 people from 46 communities received training. Proper maintenance and operation of energy infrastructure are essential for efficiency and longevity. Training in FY2025 included bulk fuel operator training, power plant operator training, person-in-charge training, and utility management training. Target Last Modified: 12/10/2025 |
| A5: Core Service - The AEA`s Planning Team manages grants and loans, coordinates energy project planning, and provides technical assistance and training while working with state, federal, and private partners—including the U.S. Department of Energy, Tribal and Indian Energy programs, and National Laboratories—to expand funding and bring new opportunities to communities. |
Target #1: Support a diversified energy portfolio to enhance energy supply resilience and reduce and/or stabilize energy costs.
The energy data referenced in the chart above is sourced from the U.S. Department of Energy`s Energy Information Administration (EIA) and reflects a one-year reporting lag, with the most recent data corresponding to the preceding calendar year. In the years since the REF inception through 2024, the percentage of total statewide electrical generation produced by renewable sources has increased and then held fairly steady at about 28 to 30 percent, with a 10-year average of 29 percent. On average, renewable generation has increased by two percent annually over this period. In 2024, about 90 percent of renewable generation came from hydropower, 6 percent from wind, and 3 percent by other sources such as biomass and solar. From 2023 to 2024, total renewable energy generated increased by one percent, while the total statewide energy generation decreased by three percent. The reason for this is likely due to energy efficiency gains and other forms of decreased demand It`s important to note that REF-funded renewable energy projects are generally located in rural communities whose utilities are not required to report to the EIA, and therefore their generation is excluded from the chart above. In Round 17 of the REF, 18 applications were recommended to the Legislature for funding consideration in the FY2025 budget. Following the legislative session, $6.3 million was appropriated to fund the top six recommended projects. The increase in renewable electricity generation has been supported by the following initiatives: • Local, regional, and statewide energy planning efforts that prioritize data-driven decision-making and the use of the most cost-effective, locally available resources. • REF projects that include renewable heat energy technologies such as biomass and heat recovery, which displace costly heating fuel in schools, water systems, and community facilities. • Private and other local capital investment leveraged alongside REF grant funding. • Additional State appropriations for renewable energy development. • PPF loans supporting renewable energy projects such as the Houston Solar Farm and Hiilangaay Hydroelectric Plant. • Federal funding from agencies including the Denali Commission, U.S. Department of Energy, and U.S. Department of Agriculture. • Upgrading transmission infrastructure to improve delivery efficiency and eliminate grid capacity constraints, enabling better integration of renewable sources. • Energy efficiency and conservation programs such as AEA"s Village Energy Efficiency Program, the Commercial Building Energy Audit Program, and public education and outreach activities that reduce overall energy consumption and increase the share of renewables. • The addition of the West Fork Upper Battle Creek Diversion Project to Bradley Lake, which increased Railbelt renewable generation by 37,000 megawatt-hours, the equivalent to the annual electricity use of approximately 5,000 homes; • The Dixon Diversion Project, a sub-project of the Bradley Lake Expansion Project, is expected to increase Bradley Lake`s energy production by 50 percent, equivalent to the energy use of about 30,000 homes. AEA is continuing design and technical studies to maintain the project schedule, with potential completion by 2030, contingent on securing of construction funding. Target Last Modified: 12/10/2025 |
Target #2: Successful completion of approved and awarded Renewable Energy Fund (REF) projects.
Since its inception in 2008, the REF program has granted over $333 million in state funds and leveraged more than $300 million in federal and local contributions to advance renewable energy development throughout Alaska. The program portfolio includes over 100 operational renewable energy projects and 56 projects currently under development, demonstrating its broad reach and sustained impact. REF projects are generally carried out over an average five-year period of performance. A project`s phase, scope of work, and overall complexity are all factors which contribute to time needed for project completion. Reconnaissance, feasibility, and design phase projects may require less time to complete than other multi-phase projects, especially involving project construction, which can require extensions beyond five-years to complete. Since FY2022 (Round 13), 67 projects have been awarded, funded by $53.6 million in state appropriations. Of these 67 projects, 18 have been successfully completed having achieved those stated goals as specified under the respective award agreements, with those remaining projects in progress. The REF continues to receive bipartisan support due to its effective deployment of State funds, which promote reliable, resilient, diversified, and lower-cost energy generation across all regions of the state. As testament to its success, operational REF projects have displaced over 120 million gallons of diesel fuel since the program`s launch and offsets approximately 1.15 billion cubic feet of natural gas annually. AEA has issued its request for applications for Round 18 of the program. In consultation with the Renewable Energy Fund Advisory Committee, AEA will submit a list of recommended projects for funding consideration in the FY2027 capital budget. Target Last Modified: 12/10/2025 |
Last refreshed: 03/04/2026 05:00 pm