Alaska Energy Authority highlights Dixon Diversion, HVDC Cook Inlet cable, Sterling upgrade and battery funding

ANCHORAGE — The Alaska Energy Authority (AEA) provided an update on a portfolio of transmission, hydro and resilience projects it says will lower costs, create jobs and improve reliability across the rail belt and in rural communities.

"In the last 5 years, AEA has secured nearly a billion dollars in federal, state, and in revenue bond," said Curtis, speaking on behalf of AEA. He said the authority is managing more than 200 active projects, has deployed circuit riders to assist rural communities and has invested in bulk fuel facilities and powerhouse upgrades across the state.

Curtis described three major rail‑belt projects AEA is advancing: the Dixon Diversion to expand Bradley Lake hydro output, the Sterling‑Sadatna/Quartz Creek substation and transmission upgrade along a constrained 40‑mile corridor, and a high‑voltage direct‑current (HVDC) submarine cable across Cook Inlet.

Curtis said the Dixon Diversion is a roughly $342 million initiative that would redirect water from the Dixon Glacier to Bradley Lake, raise the dam about 14 feet, increase Bradley Lake's output by approximately 50 percent (which AEA described as equivalent to powering roughly 30,000 homes) and reduce annual natural gas demand by an amount AEA tied to its modeling of future rail‑belt needs. AEA said it expects to file with the Federal Energy Regulatory Commission for the Dixon project about a year from now and to be in construction thereafter with water flowing by 2030.

On transmission, Curtis said the Sterling‑Sadatna upgrade is a roughly $90 million, 40‑mile line that AEA started constructing the prior fall and that the State's work on an HVDC cable — which Curtis described as 38 miles and intended to increase power transfer reliability between the Kenai Peninsula and Anchorage — is under construction with federal grant funding. He said the HVDC grant was a competitive award and described the jobs and economic output expected from the work.

Curtis also said AEA's board approved $28 million to support rail‑belt utilities advancing battery energy storage systems and noted AEA's role in programs such as the Renewable Energy Fund and the Power Cost Equalization program that serves rural Alaska.

Why it matters: AEA framed the projects as part of a coordinated program to reduce costs, improve transfer capacity on the rail belt and provide backup and resiliency while state officials pursue longer‑term supply options.

Limits and schedule: Curtis gave construction timelines and job‑creation estimates and said the HVDC line has a congressional mandate goal of completion by 2032. He also said the Sterling upgrade is expected to be completed by 2028 and that Dixon construction and water flow are targeted for completion around 2030.

Ending: AEA said it will continue to operate multiple projects statewide and provide further schedules and status updates as permitting and construction progress.