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Homer Electric briefs Seldovia on generator replacement and proposed 3‑phase undersea cable
Summary
Homer Electric updated the Seldovia City Council on plans to replace an aging Mitsubishi generator with a new Cat unit (estimated June–end of summer) and on a concept to bring 3‑phase power via undersea cable, a project that the presenter estimated at roughly $65 million with a potential local cooperative share of about $20 million.
Homer Electric Association representatives briefed the Seldovia City Council on April 28, 2025, describing immediate equipment needs and a long‑range undersea cable concept to bring three‑phase power to the region.
Brad Janorski, general manager of Homer Electric Association, told the council the cooperative is planning vegetation work this summer to address a steep rise in tree‑related outages and is moving ahead with a scheduled replacement of an obsolete Mitsubishi generator. "Our system overall has seen about a 560% increase over the last 5 years," Janorski said while describing tree and right‑of‑way issues affecting reliability.
Larry Jorgensen, director of power production, provided technical details about the existing generator assets: "The Mitsubishi was made in 1989 and was installed here in 2004," he said, and the older unit has had maintenance problems including fuel leaking into oil, high vibration, and long lead times for hard‑to‑find parts. Jorgensen said the city’s older Mitsubishi will be replaced with a new Cat generator expected to be "20 to 30% more efficient on fuel, and it's quite a bit quieter." He estimated replacement work would begin in June and be complete by the end of the summer.
On longer‑term infrastructure, Janorski outlined a concept paper the cooperative submitted to seek federal support for a three‑phase undersea cable from Homer to Seldovia that would include fiber and on‑island battery storage. Janorski said the concept is large: "I think that's a roughly $65,000,000 project," and that a cooperative contribution could be roughly one‑third of the cost.
On financing, Jorgensen said the generator replacement itself is not grant‑funded and would be paid by HCA members, while Janorski described a PACE loan and federal direct‑pay provisions that could materially lower costs for cooperative members if federal programs proceed as anticipated.
Council and public questions focused on procurement, whether U.S.‑made equipment was required, parts availability, and the feasibility/timeline for the undersea cable and associated grants. Homer Electric said the Cat units are manufactured in the U.S. and that lead times and shipping logistics remain a challenge for remote‑area delivery.
Why it matters: The generator replacement is an immediate operational step to reduce outage risk and local noise complaints; the undersea cable, if funded and constructed, would be a multi‑year, high‑cost project with long‑term implications for reliability and local economic opportunity.
Next steps: Homer Electric expects to return with updates in August and to provide staff with copies of any grant application invitations or award notices as they occur.
