Legislature(2025 - 2026)GRUENBERG 120
03/25/2025 01:00 PM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Rural Energy Concerns in Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
March 25, 2025
1:03 p.m.
MEMBERS PRESENT
Representative Ky Holland, Co-Chair
Representative Donna Mears, Co-Chair
Representative Bryce Edgmon
Representative Cathy Tilton
Representative George Rauscher
Representative Mia Costello
MEMBERS ABSENT
Representative Chuck Kopp
COMMITTEE CALENDAR
PRESENTATION(S): RURAL ENERGY CONCERNS IN ALASKA
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ANDREW GUY, President
Calista Corporation
Anchorage, Alaska
POSITION STATEMENT: Co-presented the Rural Energy Concerns in
Alaska presentation.
BEN MALLOTT, President
Alaska Federation of Natives
Anchorage, Alaska
POSITION STATEMENT: Co-presented the Rural Energy Concerns in
Alaska presentation.
WAYNE MORGAN, Special Projects Coordinator
Aniak Traditional Council
Aniak, Alaska
POSITION STATEMENT: Co-presented the Rural Energy Concerns in
Alaska presentation.
AMANDA TOERDAL, Community Planning & Development Program
Director
Kawerak, Inc.
Nome, Alaska
POSITION STATEMENT: Co-presented the Rural Energy Concerns in
Alaska presentation.
ACTION NARRATIVE
1:03:01 PM
CO-CHAIR KY HOLLAND called the House Special Committee on Energy
meeting to order at 1:03 p.m. Representatives Holland, Mears,
Tilton, and Rauscher were present at the call to order.
Representatives Edgmon and Costello arrived as the meeting was
in progress.
^PRESENTATION(S): Rural Energy Concerns in Alaska
PRESENTATION(S): Rural Energy Concerns in Alaska
1:04:04 PM
CO-CHAIR HOLLAND announced that the only order of business would
be the Rural Energy Concerns in Alaska presentation.
1:06:15 PM
ANDREW GUY, President, Calista Corporation, directed attention
to a PowerPoint presentation, titled "Yukon-Kuskokwim Region
Energy" [hard copy included in the committee packet]. He began
on slide 2, "Region Overview," which read as follows [original
punctuation provided]:
•Spans 58,000 square miles
•Over 27,000 residents
•Kusilvak Census area growing as fast as Mat-Su
Borough
•50 permanent communities
•6 seasonal communities
•56 Tribes
•45 Alaska Native village corporations
MR. GUY continued to slide 3, "Cost of Living in Y-K," which
illustrated the astronomical cost of living in rural Alaska. He
reported that the average effective residential rate of energy
per kilowatt-hour (kWh) with Power Cost Equalization (PCE)
assistance in the Yukon-Kuskokwim (Y-K) Delta is $0.37 compared
to $0.22/kWh in urban Alaska. He continued to slide 4, "Current
Utility Systems," which read as follows [original punctuation
provided]:
• 19 electric utility providers within the Region
• Communities rely on diesel generators for power
o In many cases generators are operating past
their usable/reliable lifecycle (30+ years
old)
o Dependent on fuel shipments either by
barge or aircraft
o O&M for generators and fuel tank farms are a
challenge: costly and finding skilled labor
MR. GUY turned to slide 5, "Y-K Energy Development
Opportunities," which read as follows [original punctuation
provided]:
• Regional energy projects, e.g.:
o DC powerlines to Region, connecting to the
Railbelt power grid
o Inter-ties between rural communities
o Inter-ties to anchor-tenants
• State matching funds to access federal funds to
power transmission and generations
• Increased access to capital for funding and
financing energy projects in rural Alaska
MR. GUY proceeded to slide 6, "Energy Future for the Y-K," which
read as follows [original punctuation provided]:
•In-state natural gas pipeline from the North Slope
provides a potential solution for Southcentral and
Southwest Alaska
•A potential anchor-tenant in Y-K provides an
opportunity to bring lower cost and reliable energy to
the Y-K Region through the prospective natural gas
pipeline
•The natural gas delivery infrastructure to the Y-K
could be multi-modal, e.g.:
•Small diameter pipeline as gas, or
•Generate electricity through transmission lines
1:20:53 PM
BEN MALLOTT, President, Alaska Federation of Natives, explained
that this hearing came from Resolution 24-12, which was passed
at the AFN 2024 Annual Convention, pertaining to advancing
energy sovereignty and security in rural Alaska. He emphasized
the importance of sustainable and affordable energy to rural
communities and traditional life. He shared examples and
reiterated the importance of this issue with regards to
outmigration in rural Alaska. He urged legislators to work with
Tribal organizations and work with rural communities because
they know what's best for their area and have the capacity to
get things done.
1:26:12 PM
MR. MALLOTT, in response to a committee questions, said the
Tribal Sovereignty Taskforce is critical to ensure that those in
rural Alaska have a voice. Furthermore, a Tribal task force
could identify efficiencies and pursue federal funding in ways
that the state may not be able to. He said PCE is a lifeline
for rural Alaska that "keeps things even" despite its flaws. He
explained that the intent is to level the playing field until
rural Alaska can catch up with urban Alaska in terms of a
modern, affordable, stable power grid.
1:32:54 PM
The committee took a brief at-ease at 1:30 p.m.
[Co-Chair Holland passed the gavel to Co-Chair Mears.]
1:33:54 PM
MR. GUY, in response to committee questions, discussed the
Alaska Native Claims Settlement Act (ANCSA) and said it took
away Native Alaskans' way of life with the intention that they
would start working in the Western way without the proper
infrastructure development. He said the state and the federal
government have broken their agreements, and it's time to find a
solution to make strides in business development. He said the
task force is a learning experience, but Native Alaskans have
been "studied to death." He urged the legislature and the
federal government to break out of their systems [reliant on
studies] and start coming up with real solutions. He pointed
out that when generators fail, freezers and refrigerators are
another added cost because they break down faster.
1:41:07 PM
WAYNE MORGAN, Special Projects Coordinator, Aniak Traditional
Council, directed attention to a PowerPoint presentation, titled
"Aniak Energy Crisis' [hard copy included in the committee
packet]. He began on slide 2, explaining that Aniak is a HUB to
15 villages with a population of 500. He continued to slide 3,
which stated that Aniak Light and Power provides electricity to
the community of Aniak and is a private/family-owned utility on
restricted land. Slides 4-7 showed various utility bills to
demonstrate the cost of energy in Aniak. He proceeded to slide
8, which showed a notice from Aniak Light & Power apologizing
for the month's abnormally high fuel surcharge again. The fix,
he said, was to amortize the amount owed by the utility company,
between $450,000 and $500,000, over two years, which essentially
put the burden on ratepayers. He said there were four months
left of these increased payments. Slide 9 showed the current
electric bill with the increased at $0.42 with the cost of power
adjustment (COPA). He said these added costs resulted in
programs being taken away from kids, as the schools are not
covered by PCE. He concluded on slide 10 with a notice that was
posted on Facebook by Aniak Light & Power asking customers to
st
take a picture of their meter otherwise the March 1 bill would
be estimated. He emphasized that rural representation is needed
to prevent these things from happening to communities like
Aniak. He added that the RCA is supposed to have protections
that were not followed.
[Co-Chair Mears passed the gavel back to co-chair Holland.]
1:54:01 PM
MR. MORGAN, in response to committee questions, emphasized the
necessity of energy sovereignty and security. He explained that
the Tribe is looking towards renewable energy and attempting to
secure grant funding for a large-scale solar project with better
backup. He added that the community would still need to be work
with a local utility to create a power purchase agreement (PPA).
He said Aniak is also looking at creating their own utility, a
diesel generator, which would create a path that other
communities could pursue. He referenced the Rural Energy
Taskforce, which could help provide oversight and ensure that
these issues don't happen in rural Alaska. He commented on the
current utility and how it's operated, noting that the RCA has
the authority to audit any utility within the state of Alaska.
He suggested that the committee could request regular reporting
from the RCA to ensure that it's following its laws and
regulations. He disclosed that he had applied to be an RCA
commissioner until the qualifications were amended by the
legislature last year.
2:10:37 PM
AMANDA TOERDAL, Community Planning & Development Program
Director, Kawerak, Inc., gave a PowerPoint presentation on
energy concerns in the Bering Strait Region [hard copy included
in the committee packet]. She began on slide 1, which read as
follows [original punctuation provided]:
•The Bering Strait Region is home to 9,836 people, of
which 75% are Alaska Native.
•Kawerak serves 20 Tribes in this region, who live in
16 communities.
•Our 16 communities are powered by 15 islanded
microgrids (diesel power plants).
•There are only two communities with an intertie:
Stebbins & St. Michael.
•We have some wind and battery integration, and plans
for solar & geothermal installations.
MS. TOERDAL continued to slide 2, which read as follows
[original punctuation provided]:
•Power costs range from $0.46 / kWh to $0.72 /
kWh*Average cost after Power Cost Equalization subsidy
is $0.25 / kWh
•Fuel costs for diesel (heating fuel) range from $4.45
- $8.09 / gallonGasoline costs range from $4.75 -
$7.02 / gallon**
•Fuel purchasing programs in the region help keep
costs down for communities, such as the bulk fuel
program run by the Norton Sound Economic Development
Corporation, who also offers a residential energy
subsidy program for all residents within the Norton
Sound Region, which can be applied to utility bills.
•The Low-Income Home Energy Assistance Program, or
LIHEAP, is used widely in the region and is necessary
for keeping heating bills affordable for residents.
•The Power Cost Equalization subsidy, or PCE, is
essential to keeping electricity costs affordable for
residents and community facilities. Without the PCE
endowment fund, electricity bills would more than
double in rural Alaska.
MS. TOERDAL turned to slide 3, which read as follows [original
punctuation provided]:
What are our challenges?
•Bulk fuel facilities need improvements, rebuilds or
relocations must meet regulations
•Aging grid infrastructure is prevalent need new
power poles, transformers, communications equipment
•Renewable integration requires energy storage systems
for maximum use
•Erosion, flooding, extreme weather, and permafrost
thaw threaten energy infrastructure
•Staff turnover & limited workforce = biggest
challenges to keeping up with operations & maintenance
•Utility management and financial literacy are
essential to keeping the lights on
MS. TOERDAL advanced to slide 4, which read as follows [original
punctuation provided]:
What are the priorities?
•Bering Strait Regional Energy PlanJune 2015 Alaska
Energy Authority funded this statewide effort.
•The newest regional CEDS, or Comprehensive Economic
Development Strategy, highlights "lowering the cost of
energy" as a top 4 regional goal.
•Many communities, organizations, and utilities in the
region have developed their own energy planning
documents specific to their goals.
MS. TOERDAL continued to slide 5, which read as follows
[original punctuation provided]:
What are the solutions?
•Continue the Arctic Energy Ambassador Program
•Fund Regional Strategic Energy Planning
•Fund Alaska Regional Development Organizations
•Alaska Administrative Code (3 AAC 57.090)
•Create an Alaska Rural
Energy Task Force
•Sustain & enhance energy assistance programs
•Promote energy efficiency education (youth-adult)
•Support utility grid resilience projects that prevent
outages
•Protect the Power Cost Equalization Endowment Fund
2:20:25 PM
MS. TOERDAL, in response to a series of committee questions,
said the Alaska Energy Authority (AEA) is involved in community
projects related to bulk fuel and the Renewable Energy Funding
(REF) effort; however, many of its projects are focused on the
more populated areas in Alaska, so there's more room for
additional interaction with rural communities. She opined that
AEA doesn't need to organize and run the entire planning effort,
but they need to offer a funding mechanism for Tribes and
communities to take the effort on themselves with assistance
from the state.
2:24:43 PM
MR. GUY, in response to committee question, explained that the
purpose of AEA is to plan, develop, and maintain the Railbelt
intertie system, but there's not a corresponding initiative for
Rural Alaska. He suggested that AEA needs to be redirected to
rural Alaska.
2:29:29 PM
MS. TOERDAL, in response to the committee discussion, stated
that energy is the backbone of rural Alaska and without reliable
and affordable power, it's impossible for new businesses to get
off the ground and become operational. There is some
interesting overlap with PCE and economic overlap, she said,
explaining that a lot of Tribes are doing new projects with the
independent power producer model that utilize the PCE structure
and creates an economic development mechanism through the Tribe
and community. She urged the committee to consider that
opportunity and be cautious about PCE work that might affect
those models in the Northwest arctic borough. With regard to
natural resource development and how it might benefit energy
infrastructure, she acknowledged that mining and critical
minerals production is a large discussion in the region, and
there are people on both sides of the spectrum. She said there
is potential for collaboration depending on the project's
location and whether the infrastructure could be developed to
support a natural resource development project, thereby
improving transmission and reliability, and increasing job
opportunities.
2:36:53 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 2:36 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 03.25.25 Energy Presentation_ AGuy.pdf |
HENE 3/25/2025 1:00:00 PM |
|
| ANIAK Energy_3.25.25.pdf |
HENE 3/25/2025 1:00:00 PM |
Rural Energy |
| Kawerak_Energy Presentation_Toerdal.pdf |
HENE 3/25/2025 1:00:00 PM |
Rural Energy |
| AFN Resolution 24-12.pdf |
HENE 3/25/2025 1:00:00 PM |
Supplemental |
| Aniak Response from State.pdf |
HENE 3/25/2025 1:00:00 PM |
Supplemental |
| 34th Legislature_AS 42.25.180.pdf |
HENE 3/25/2025 1:00:00 PM |
Reference |
| ATCE_LoS_ Rural Alaska Energy Sovereignty Task Force.pdf |
HENE 3/25/2025 1:00:00 PM |
Letter of Support |