SEPA reports 2026 wholesale rate hold and turbine work as Petersburg manages high winter loads
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Summary
SEPA approved holding wholesale power rate at $7.30/kWh for 2026, awarded audit and helipad contracts, and advanced the Taiyi third turbine work; borough staff said December cold snaps required diesel generation and the third turbine will increase capacity when managed within water constraints.
A SEPA representative briefed the Petersburg Borough Assembly on Dec. 3 board actions and the FY2026 operations plan, noting the board approved holding the wholesale power rate at $7.30 per kilowatt-hour for 2026. The board also selected BDO USA for a three‑year financial audit, authorized installation of seven new helipads to support transmission-line maintenance on the Cleveland Peninsula, and approved a change order for the Taiyi third turbine project to supply a unit control cabinet from Canyon Industries.
Carl (SEPA/operator) told the assembly the December cold snap forced SEPA and member utilities to run diesel generation to meet peak demand; Petersburg’s system saw roughly 13.5 megawatts during peak periods and the borough purchased about 2.5 million more kilowatt‑hours in December than in November. SEPA staff emphasized that the third turbine at Taiyi Lake will increase generation capacity from approximately 24 MW to roughly 36 MW in total for that facility, but its operation will be constrained by available reservoir water and managed through the operations plan and the power sales agreement.
Assembly members asked whether new hydro facilities or additional generation should be pursued; staff said new facilities would likely cost on the order of $200 million and require multi‑year planning, permitting and financing, and recommended beginning necessary planning work early to stay ahead of demand growth (estimated ~3% per year in the region). The borough manager said staff will continue to investigate operational efficiencies and pursue grants to offset capital costs.
SEPA’s FY2026 operations plan and the related links were included in the meeting packet for members and the public to review further.
