Hydro, Solar, and Acquisitions: Energy utilities seek to expand renewables and reduce costs.

• Author: Anderson, Tasha
• Position: ENERGY

Energy is an ongoing issue for all of Alaska as rural communities struggle to reduce heating costs and the state's population centers look for affordable solutions to address the cost of living and working in the Last Frontier. Energy projects are often multi-year endeavors requiring varied funding sources, but routine progress is being made.

Battle Creek Diversion

In December 2017 the Alaska Energy Authority (AEA) Board announced it had authorized "the issuance, sale, and delivery of power revenue bonds of up to approximately $47 million for the construction of the West Fork Upper Battle Creek Diversion project." This project would divert water from Battle Creek into Bradley Lake for the purpose of increasing energy output at the existing Bradley Lake hydroelectric plant by an average of 37,000 megawatt hours per year. Bradley Lake, which is owned by the state, currently has a capacity of 120 megawatts. Six electric utilities purchased shares in hydroelectric plant including Municipal Light & Power (ML&P), Chugach Electric Association, Homer Electric Association, Matanuska Electric Association, Seward Electric Utility, and Golden Valley Electric Association. Bradley Lake is located twenty-seven miles south of Homer on the Kenai Peninsula.

The Battle Creek Diversion project will include construction of four miles of road, two miles of canal to carry the water to Bradley Lake, and a concrete diversion dam. The announced authorization followed approval of a financing package for the project by the Bradley Project Management Committee. The AEA release states, "In October, AEA received $40 million in New Clean Renewable Energy Bonds allocations from the IRS for the Battle Creek Diversion Project. Additionally, AEA will apply approximately $1.2 million of Qualified Energy Conservation Bond allocation received from the State of Alaska to the financing package. These interest subsidies will substantially reduce the net interest cost for the project, lowering the cost of energy from the power the project will produce when completed." It's estimated the diversion will cost $47 million and require three years of construction. In December, according to the release, contractor selection was already underway, anticipating construction might begin this spring.

AEA Board Chair Russel Dick said, "The Battle Creek Diversion project is a perfect example of efficient, practical development of local renewable energy resources that will reduce ratepayer energy...