Legislature(2025 - 2026)GRUENBERG 120
03/10/2026 01:00 PM House ENERGY
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| Audio | Topic |
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| Start | |
| Presentation(s): Alaska Energy Authority | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
March 10, 2026
1:02 p.m.
DRAFT
MEMBERS PRESENT
Representative Ky Holland, Co-Chair
Representative Donna Mears, Co-Chair
Representative Chuck Kopp
Representative DeLena Johnson
Representative Justin Ruffridge
Representative Mia Costello
MEMBERS ABSENT
Representative Bryce Edgmon
COMMITTEE CALENDAR
PRESENTATION(S): ALASKA ENERGY AUTHORITY
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CURTIS THAYER, Executive Director
Alaska Energy Authority
Anchorage, Alaska
POSITION STATEMENT: Gave a presentation, titled "Alaska Energy
Authority."
ACTION NARRATIVE
1:03:00 PM
CO-CHAIR KY HOLLAND called the House Special Committee on Energy
meeting to order at 1:02 p.m. Representatives Kopp, Costello,
Mears, and Holland were present at the call to order.
Representatives Johnson and Ruffridge arrived as the meeting was
in progress.
^PRESENTATION(S): ALASKA ENERGY AUTHORITY
PRESENTATION(S): ALASKA ENERGY AUTHORITY
1:04:08 PM
CO-CHAIR HOLLAND announced that the only order of business would
be the Alaska Energy Authority presentation.
1:04:51 PM
CURTIS THAYER, Executive Director, Alaska Energy Authority
(AEA), gave a presentation titled "Alaska Energy Authority," via
PowerPoint [hard copy included in the committee packet]. He
began the presentation on slide 2, which gave a broad overview
of the services and programs offered by the Alaska Energy
Authority (AEA).
1:08:33 PM
REPRESENTATIVE JOHNSON asked Mr. Thayer to describe the role of
the AEA in power cost equalization (PCE) and further questioned
how the PCE endowment worked.
MR. THAYER answered that the Regulatory Commission of Alaska
(RCA) would work to establish a going rate for Kilowatt Hours
(kWh) for the AEA to "dispense" to communities. He explained
that the PCE endowment fund cost the AEA roughly $46 million
annually.
1:11:28 PM
REPRESENTATIVE COSTELLO asked Mr. Thayer to further detail the
Circuit Rider program within the AEA.
MR. THAYER replied that there were four individuals working
within the AEA to ensure the success of the Circuit Rider
program and detailed the difficult working conditions of the
employees in that program.
1:13:51 PM
MR. THAYER resumed the presentation on slide 3, which delivered
a funding status overview of the money needed to fund both the
Cook Inlet PowerLink (CIPLink) and the Bradley Lake expansion
project.
1:15:55 PM
REPRESENTATIVE JOHNSON asked Mr. Thayer to highlight "valuable
opportunities" for the Alaska State Legislature (ASL) to focus
on.
1:17:15 PM
REPRESENTATIVE KOPP asked what the "pre-construction costs" were
for the projects before the AEA.
MR. THAYER explained that the process to begin the Bradley Lake
Expansion Project began in 2022, and he detailed the various
agencies and logistics required of a project before a project
may begin construction.
1:19:57 PM
MR. THAYER picked up the presentation on slide 4, which greatly
detailed the status of the funding, permitting, and construction
of the Bradley Lake Expansion Project. He moved to slide 5,
which displayed a bar graph that outlined the construction cost
timeline of the Bradley Lake Expansion Project.
1:22:56 PM
REPRESENTATIVE JOHNSON asked about the bar graph displayed on
slide 5.
MR. THAYER answered that he would follow-up later with
information from a study on the economic impacts of the Bradley
Lake Expansion Project completed by Northern Economics.
1:25:11 PM
MR. THAYER resumed the presentation on slide 6, which greatly
detailed the status of the funding, permitting, and construction
of the CIPlink. He moved to slide 7, which displayed a bar
graph that outlined the construction cost timeline of the
CIPLink and continued to slide 8, which highlighted the four
logistical, financing, and legal partners that the AEA was
working with in the furtherance of the two projects mentioned in
the presentation before the committee. He moved to slide 9,
which detailed the five potential financial partners that the
AEA was looking to move forward with in the furtherance of the
CIPLink and Bradley Lake Expansion Project.
1:34:36 PM
CO-CHAIR HOLLAND asked if there were any additional funding
opportunities for the AEA coming from the ASL and asked what the
delivered cost of power might be for the projects being
discussed before the committee.
MR. THAYER answered that there was not currently any ask of the
ASL from the AEA and said that he would follow-up later with
regard to Co-Chair Holland's second question.
1:37:22 PM
REPRESENTATIVE JOHNSON suggested that the projects being
proposed by the AEA might be "impossible" to complete with the
existing infrastructure in Alaska.
MR. THAYER explained that it would not currently be economically
feasible to construct a new generator at Bradley Lake to make up
for infrastructure needs and said that the AEA was instead
working to maximize the efficiency of existing power plants.
1:40:07 PM
MR. THAYER resumed the presentation on slide 10, which gave a
broad overview of the investment tax credits that the AEA was
working to utilize in the furtherance of its proposed projects.
1:41:43 PM
CO-CHAIR HOLLAND asked for further clarification on how each
different type of tax credit would impact the ratepayer.
MR. THAYER answered that the U.S. Department of Energy would
prefer to lend money to a project and said that the AEA was
"trying to figure out where that [funding] stack is."
1:42:44 PM
MR. THAYER picked up the presentation on slide 11, which
detailed the Railbelt transmission overview (RTO) and its role
in energy distribution to Railbelt communities. He moved to
slide 12, which spoke to the renewable energy fund (REF) and its
fiscal impact on projects in Alaska and continued through slides
13-14 which greatly detailed the recommended projects that the
REF put its assistance towards.
1:48:13 PM
REPRESENTATIVE MEARS shared that she would like for the
committee to have a discussion about the funding recommendations
for the AEA that it would have to make to the ASL.
MR. THAYER offered to speak to the funding issue with the
Southeast Alaska Power Agency (SEAPA) and explained that the AEA
gave a lower-than-normal funding recommendation for the
organization because the project that funding was sought for was
a hydropower project.
1:53:13 PM
CO-CHAIR HOLLAND asked if there was any federal match funding at
risk if REF monies were to be utilized in the furtherance of an
AEA project and asked if there was a way for the ASL to more
efficiently finance projects proposed by the AEA.
MR. THAYER answered that the REF would not jeopardize any
federal funding and instead posed an opportunity to leverage
funding need to the federal government. He explained that the
REF was causing for 13 million gallons of diesel to be saved
annually and said that it was up to the ASL to make a policy
call to help the AEA further its proposed projects.
1:56:50 PM
REPRESENTATIVE RUFFRIDGE asked how many units of energy were
being created by each of the projects constructed and proposed
by the AEA. He asked if there were any communities in Alaska
that had discontinued their use of diesel as a result of the REF
and asked what the best prospective option for renewable energy
in rural Alaska was.
MR. THAYER said that he would follow-up later with an answer
from a study done by Northern Economics and said that any
community that had moved off of diesel completely had primarily
shifted toward hydropower. He said that micro nuclear energy
was the best renewable energy solution for rural communities in
Alaska.
2:01:34 PM
CO-CHAIR HOLLAND added his understanding that it might be
effective to judge a prospective project by its impact on
natural gas use.
MR. THAYER said that the AEA was tracking the "displacement" of
natural gas by renewable energy projects.
2:02:46 PM
REPRESENTATIVE COSTELLO asked if projects were evaluated by
their "displacement" on natural gas use in any given area of the
state.
MR. THAYER confirmed that the AEA did make that judgement before
a project was approved.
2:04:12 PM
MR. THAYER resumed the presentation on slide 15, which gave a
broad overview of existing and proposed rural energy
infrastructure in Alaska.
2:05:00 PM
CO-CHAIR HOLLAND asked if the AEA was involved in the creation
of definitions and standards for the "man camps" needed in the
construction of the proposed liquefied natural gas (LNG)
pipeline.
MR. THAYER said that the AEA was not involved in the creation of
definitions and standards for the man camps needed for the
construction of the proposed LNG pipeline.
2:07:24 PM
MR. THAYER picked up the presentation on slide 16, which
detailed federal funding for bulk fuel infrastructure being
utilized in Rural Alaska.
2:10:47 PM
REPRESENTATIVE JOHNSON asked about the process and construction
of bulk fuel sites in rural Alaska.
MR. THAYER answered that bulk fuel sites are usually built
elsewhere and shipped into a community.
2:12:06 PM
MR. THAYER continued the presentation on slide 17, which listed
the current and pending federal funding award applications and
concluded the presentation on slide 18, which spoke to the AEA
Circuit Rider program.
2:15:11 PM
REPRESENTATIVE JOHNSON asked about the Circuit Rider's work in
Port Haiden and thanked Mr. Thayer for his presentation and the
work of the AEA.
MR. THAYER shared that there were various reasons a community
might have differing equipment needs and told a personal story
that impacted the energy infrastructure in a community in
Alaska.
2:16:59 PM
REPRESENTATIVE RUFFRIDGE asked why "renewable diesel" wasn't
being utilized more in diesel-heavy rural communities and asked
what projects were eligible for REF monies.
MR. THAYER said that most communities in Alaska do not have the
buy-in to upgrade their infrastructure and get away from diesel
energy. He said that any project that was not fossil-fuel based
was eligible for the utilization of REF monies.
2:20:05 PM
REPRESENTATIVE COSTELLO asked if the REF eligibility list
included nuclear energy.
MR. THAYER answered that he would follow up with more
information later.
2:20:56 PM
CO-CHAIR HOLLAND thanked the invited testifier and delivered
committee announcements.
2:21:52 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 2:21 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2026.03.06 AEA Energy Program and Project Updates Presentation (Final).pdf |
HENE 3/10/2026 1:00:00 PM |