[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6118793,"mediaKeyId","2717194-b737368f593349cb5addcff3603d57a9","parentId",2717194,"title","AEA details rural power programs: PCE payouts, circuit riders, bulk-fuel backlog and Renewable Energy Fund activity","audioSeconds",3341,"startMs",671000,"endMs",4012000,"viewUrl","/Search/View?dp=1&key=2717194-b737368f593349cb5addcff3603d57a9&start=671&end=4012","thumbnailUrl","https://assets.pipeline.soar.com/2717194-b737368f593349cb5addcff3603d57a9/thumbnail_671000.jpg","articleUrl","/articles/6118793/Alaska/AEA-details-rural-power-programs-PCE-payouts-circuit-riders-bulk-fuel-backlog-and-Renewable-Energy-Fund-activity","mediaUrl","https://secure.pipeline.soar.com/6118793-7a6ba24a2a35ca8b6123890de77f53fc/orig.mp4?Expires=1771132708&Signature=C-HxkF2yQiUSu4yzKOAPrrI~XUhYTehzPQbIgukVCspo9VdgzvGZLl0-f~vTym4yhS9BbCOZT~NrkUmTZ3qO9jwKQi6IWREv~-UjSnN8rxdTSHEzXkLYZR4r4Xj0p5hl6ArbnAlQSdCC64~2emhREduO3YP9SvOAEsygBOxF17U0YEPrBI3NgTju15GuFsLLtzqNjJlu3E8n8eZMStTJKUc3M9eAupjyjipTYmuZbnIEIsh4WUil1l4HXGaq1qZJqQY9y4COBkFReNYkkWXVyKgVvXkNMDfN5iUhN2FsEgHQLrH4xcXAvUSMWaIVs1RiiPp4SpHLrdWSgrzwd-FSoQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Alaska State Legislature","date","2025-03-20T00:00:00Z","article","Alaska Energy Authority staff summarized rural energy work for the House Finance Committee on March 20, describing the Power Cost Equalization (PCE) program, circuit rider technical teams, deferred maintenance in rural powerhouses and bulk fuel, and the Renewable Energy Fund's recent activity.

Lede and why it matters
AEA said PCE serves 92 communities and roughly 80,000 Alaskans, and that changes to rail-belt costs directly affect PCE program floors and caps. The agency told lawmakers rural diesel-fired powerhouses and aging bulk-fuel tank farms are at high risk from deferred maintenance and climate-driven erosion, which creates both environmental and reliability concerns for remote communities.

Key points from AEA
- Power Cost Equalization (PCE): AEA said the PCE program covers 92 communities and that the legislature previously increased the residential PCE cap from 500 kWh to 750 kWh per residential consumer; AEA said it is paying rural community bills in under 30 days and has improved staff retention.
- Circuit riders: AEA said it currently budgets for four circuit rider positions, with three filled and one vacant; the program cost in AEA's request is $710,000 and circuit riders often travel in pairs. AEA said three simultaneous electrical emergencies is its current record; to staff three simultaneous incidents without contractors would require roughly six circuit riders.
- Deferred maintenance: AEA estimated deferred maintenance on rural powerhouses at about $300,000,000 and a conservative estimate of roughly $1,000,000,000 for bulk-fuel infrastructure needing upgrades or replacement. The agency said an average complete powerhouse can cost on the order of $6,000,000.
- Bulk fuel upgrades: AEA stated the average bulk-fuel tank replacement averages around $11,000,000 and that coastal erosion and riverbank loss have created urgent near-miss situations that prompted emergency responses this year.
- Renewable Energy Fund (REF): AEA described the REF's long run: 294 grants awarded totaling about $324,000,000, with more than 100 projects in operation and 56 in development. AEA said the program saves roughly 13 million gallons of diesel a year historically and that federal infrastructure dollars in recent years pushed additional capital into many projects.

Lawmakers' questions and clarifications
Committee members asked whether school districts are eligible for PCE and how federal receipts affect eligibility. AEA staff stated schools are not eligible under current statute because school funding can be supported by other federal or state funds; the agency said eligibility rules were statutory and could be altered only by legislative action or RCA regulatory change.

Context and next steps
AEA asked the legislature for operating budget support for the circuit-rider program (the governor included the request in the operating budget) and reiterated that pipe/repair work and new construction of tank farms often require multi-session capital approaches because individual projects cost several million dollars each.

Ending
AEA officials urged continued legislative attention to long-term O&M funding and to align grant conditions and recovery mechanisms with community capacity; no committee action or votes were recorded during the presentation.","mediaType","Video","parentTitle","03/20/2025 09:00 AM House FINANCE","oneSentenceSummary","Alaska Energy Authority officials told the House Finance Committee that the Power Cost Equalization program covers 92 communities and that deferred maintenance on rural powerhouses and bulk-fuel facilities totals hundreds of millions of dollars, creating reliability and environmental risks.","taxTitle","2025 Legislature Alaska, Alaska","taxId",78559,"location","Alaska","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6118797,"AEA wins $206.5 million GRIP award for Cook Inlet HVDC link; $143.8 million funding gap remains",250,2060000,2310000,"/Search/View?dp=1&key=2717194-b737368f593349cb5addcff3603d57a9&start=2060&end=2310","https://assets.pipeline.soar.com/2717194-b737368f593349cb5addcff3603d57a9/thumbnail_2060000.jpg","/articles/6118797/Alaska/AEA-wins-2065-million-GRIP-award-for-Cook-Inlet-HVDC-link-1438-million-funding-gap-remains","https://secure.pipeline.soar.com/6118797-7ff7cb29cf10cc8e6d1542211631352b/orig.mp4?Expires=1771132708&Signature=KYaPsJarJtGCj00rN7as1s7VtR3CikFvqWHunPRBzb2cnyRy1ZFmBdu0CG7e-vq33V9f2tmJimW67fdJCVA1xz6~pHl8QCEpSNuY3yP4lyNIvayIbA98MpFmi3tMDPgRPfZSHcgecNEVRzhiU88C3wnu8dFbL3ITK0p7sR0ZMP7WSp3XygPwtDZ-uEoq~kOBabAFd3~oOMZVvw~i2aOZBAKL8u5bem9It~nzoQOL9nhbz8stuKawRndoka0IjzIoVMHAwtS12LZu3F-AdW~61jWN~HjAq~fnlxXf2yon3iLrk9dqbCg9KLRNS9Q0VRKkCZkhBnaMQjgmGGfoJS3-9A__&Key-Pair-Id=KUT5TJCACFTXG","The Alaska Energy Authority told the House Finance Committee on March 20 that AEA and its utility partners secured a $206,500,000 federal grant for a Cook Inlet submarine high-voltage direct-current (HVDC) cable intended to add redundancy and resilience to the rail-belt transmission network.

Why it matters: AEA said the HVDC submarine cable would provide a parallel link to reduce the rail-belt's vulnerability to outages — including the four-month loss of northbound transmission during the Swan Lake Fire several years ago — enable more renewable integration and expand transfer capability between the Kenai Peninsula and Anchorage/Fairbanks areas.

Project scope and funding
- Federal award: $206,500,000 (AEA presentation). AEA said this amount was the fifth-largest award nationally among competitive GRIP awards.
- Total estimated project cost: $413,000,000 (presentation). AEA said $206,500,000 is secured and that $143,800,000 remains to close funding requirements.
- Ongoing costs and benefits: AEA estimated construction-phase job creation of about 1,470 jobs, $129,000,000 in labor income and a total economic output of about $332,000,000; annual operations and maintenance were estimated at roughly $6,000,000 per year.
- Technical details: AEA described the HVDC cable as a state-of-the-art submarine direct-current line spanning roughly 38 miles that uses converter stations at each end to reduce long-distance losses and increase transfer efficiency.

Match and implementation questions
Committee members asked how the nonfederal match would be provided. AEA said it has identified roughly $63,000,000 of match (including a $12.7 million state contribution already appropriated and $50,000,000 AEA moved from another transmission project via bonding) and remains short approximately $143,800,000. Thayer said match sources could include further state appropriations, additional AEA bonding, private-public partnerships or other nonfederal sources; AEA said there is no requirement that the match be a state appropriation specifically.

Timing
AEC noted that the grant requires an eight-year completion window; AEA said it is in the first year of an eight-year period and expects to phase the work and financing over that time. AEA also described a projected construction and licensing window between 2024 and 2032 in materials presented to the committee.

Ending
AEA officials described the GRIP award as a competitive national success for Alaska, noted that about half of the project funding is already identified, and said closing the remaining financing gap is a near-term priority as AEA and partners develop procurement and construction schedules.","The Alaska Energy Authority said it secured a $206.5 million federal GRIP (grid resilience) award to build a submarine HVDC cable across Cook Inlet to add a redundant transmission route. AEA reported a $413 million project estimate, about $63 million of identified nonfederal match and a remaining funding gap of roughly $143.8 million.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6118801,"Alaska Energy Authority advances Dixon Diversion plan to boost Bradley Lake output",1181,578000,1759000,"/Search/View?dp=1&key=2717194-b737368f593349cb5addcff3603d57a9&start=578&end=1759","https://assets.pipeline.soar.com/2717194-b737368f593349cb5addcff3603d57a9/thumbnail_578000.jpg","/articles/6118801/Alaska/Alaska-Energy-Authority-advances-Dixon-Diversion-plan-to-boost-Bradley-Lake-output","https://secure.pipeline.soar.com/6118801-a51ff903a396af8ee4f7183c90e40096/orig.mp4?Expires=1771132708&Signature=QJTFIy7NNlOFuDBy6Lb4Ru7jWnK3Tu2yNhozAH~zAUbqix5Pgmlx9qqvOJ9meq8-xfYpAPKDdYWRjW8ABAOZYHuCHDXqfF~eC-~9IoT2y0oOmpluMQwqYTHl6y10HCZtnej7KlJMFqQ2k3eHAhVQCBBHmCTm6uMGBKFRJy1SPWx0eLqU1CKlEYDKF8kajC-X9EdPStAkCzWHP9IQjTIp1iT8f2K0Ug0JdoZv2t7jiLVIDn-ZRfkWxu-nBd-nrOkez0KFMkGTTBeXbaaSyz741LMCUzEs-IMWHk5XZ-klGqDlt3BFQj~rZJgoAi62eLVDecnLtGNqCp5GZGZBbr1bAg__&Key-Pair-Id=KUT5TJCACFTXG","Curtis Thayer, executive director of the Alaska Energy Authority, told the House Finance Committee on March 20 that AEA is advancing the Dixon Diversion project at Bradley Lake and plans to file an amendment with the Federal Energy Regulatory Commission in January as part of the permitting timeline.

The diversion is designed to move additional water into Bradley Lake via a roughly five-mile tunnel and a dam raise; AEA's planning materials estimate the project would boost Bradley Lake's output by about 50% and could power the equivalent of up to 30,000 homes. \"The Bradley Lake project right now is 30 years old, 32 years old, and it is a fairly young hydro project,\" Thayer said during the committee presentation.

Why it matters: Bradley Lake supplies low-cost bulk energy to the rail belt and is a key part of Alaska's ability to displace natural gas generation. Committee members pressed AEA on schedule, cost, financing and operational life because a larger Bradley affects rail-belt energy economics and rural Power Cost Equalization calculations.

Key facts and timeline
- Estimated project cost: $342,000,000 (AEA presentation).
- Estimated output gain: about 50% relative to current Bradley output; AEA said the increase is the equivalent of up to 30,000 homes and would displace an estimated 1,500,000,000 cubic feet of natural gas annually (presentation figures).
- Financing and life: AEA said its finance model is based on a 50-year amortization for repayment even though typical hydro assets can operate far longer; Thayer said \"the 50 years represents what we can finance for.\"
- Permitting and schedule: AEA intends to file an amendment to its FERC license in January; Thayer said FERC review is expected to take 12 to 18 months, with AEA's internal schedule targeting a FERC finish by 2028 and physical completion around 2030, subject to approvals and funding.
- Construction work: AEA described the major civil work as boring a roughly 14-foot diameter tunnel through mountain rock (six to eight months of drilling once permitted) and selecting a dam-raise height (options discussed included 7 feet or 14 feet; a 28-foot option was ruled out as too expensive).

Questions from lawmakers and clarifications
- Cost per kilowatt-hour: Representative Bynum asked whether the additional kilowatt-hour cost would be separated from existing Bradley rates; Thayer said the added capacity would be accounted for separately and shared among utilities based on their percentage shares (e.g., Chugach's 56% share). He declined to provide a final cents-per-kWh estimate for project output on the floor, saying the per-kWh number depends on financing and potential tax credits.
- Project life vs. financing: Representative Galpin asked why AEA used a 50-year life in financial modeling rather than the 100-year operational life sometimes assumed for hydro. Thayer replied the 50-year figure reflects what AEA can finance.
- Permitting status: Representative Hannon asked whether the project is under construction; Thayer said it is not under construction but has completed years of public consultation (work began in 2022), environmental and pre-engineering studies and that $6,500,000 was included in the current year's budget to complete remaining pre-construction work.

Context and background
Bradley Lake (AEA describes it as the state's largest hydro project) sits about 27 air miles northeast of Homer and currently supplies roughly 10% of the rail-belt energy mix at roughly 4' per kilowatt-hour for the low-cost share allocated under existing power-sale agreements. AEA said past projects using water diversions (for example, a 2020 West Fork/Upper Battle Creek diversion) increased output on similar systems and completed on time and on budget.

What remains open
AEA is continuing engineering work, finalizing the dam-raise sizing, securing financing sources and completing FERC filings. Thayer said AEA has started conversations with potential lenders, including the Department of Energy Loan Program, and has an accounting firm analyzing tax-credit eligibility; he noted tax credits could change project economics by as much as roughly $100 million according to the presentation.

Ending note
AEA described Dixon Diversion as an active priority that, if permitted and financed as planned, would materially increase renewable output available to the rail belt and reduce reliance on natural gas generation. The project remains contingent on the FERC amendment, final financing commitments, and utility participation under negotiated cost shares.","The Alaska Energy Authority outlined plans to file a FERC amendment for the Dixon Diversion project that would increase Bradley Lake's output by about 50%, with a $342 million estimated cost, a 50-year financing model and a target in-service date around 2030 if permitting and funding proceed as expected.","actionData","errors"]

Article not found

AEA details rural power programs: PCE payouts, circuit riders, bulk-fuel backlog and Renewable Energy Fund activity

AEA wins $206.5 million GRIP award for Cook Inlet HVDC link; $143.8 million funding gap remains

Alaska Energy Authority advances Dixon Diversion plan to boost Bradley Lake output