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SEAPA holds wholesale rate steady at 7.3¢/kWh; plans third turbine and Ketchikan substation
Summary
An Assembly board member reporting on the Southeast Alaska Power Agency said the board maintained the 2025 wholesale power rate at 7.3 cents per kilowatt-hour, is planning a third turbine (estimated 5 megawatts) and a new Ketchikan substation, and has begun stakeholder consultations for FERC license amendments and relicensing work.
Member Lynn, the Petersburg Borough Assembly member serving as the borough’s SEAPA (Southeast Alaska Power Agency) board representative, told the assembly that the SEAPA board maintained the wholesale power rate for 2025 at 7.3 cents per kilowatt-hour and approved an operations plan similar to 2024. "The board maintained the wholesale power rate for 2025 at 7.3 cents per kilowatt hour," Member Lynn said.
Member Lynn said the 2025 operations plan is based on forecasted inflows and projected electrical loads and that the 2025 budget anticipates revenues and costs similar to 2024. The agency included purchases of long-lead electrical parts needed in 2026 and is planning completion of designs for a third turbine at Tahai and a new substation in Ketchikan. Lynn said the third turbine would produce about 5 megawatts more than current capacity — "that's about a 10% increase over what we can do right now," he said — and estimated the turbine cost at approximately $20,300,000. The board and staff are pursuing grants and other funding to reduce the boroughs’ share of expense.
SEAPA staff also have initiated stakeholder consultation around Federal Energy Regulatory Commission (FERC) license amendments associated with the Tahai reservoir and are beginning relicensing work for Swan Lake. Lynn described the initial stakeholder consultations as positive, and said the agency hopes the prior license amendments will shorten relicensing study requirements and expedite the process.
During the assembly discussion, Member Marsh asked whether Ketchikan’s need for additional power was driven by growth. Lynn replied that all three SEAPA communities are seeing increasing power demand — "it's a little over 3% in each community annually" — and that the increase was driven more by changes in technology and incremental new homes rather than a single large industrial expansion.
Why it matters: Rate stability helps municipal budgeting and utility customers; planned generation and substation work aims to meet steadily rising demand across SEAPA communities. The agency’s pursuit of grants and FERC licensing work will shape project timelines and potential costs to member communities.
Next steps: SEAPA staff will continue stakeholder consultations on FERC amendments, finalize turbine and substation planning, and pursue grant funding and parts procurement for 2026 work. No formal assembly action was taken on these updates at the Nov. 16 meeting.
