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Alaska is at a critical crossroads. While his four electricity cooperatives in the Railbelt have expanded since they were founded in the 1940s, transmission connections between regions have not kept pace. Alaska recently received a $200 million grant from the U.S. Department of Energy (DOE) through the Alaska Energy Agency and Railbelt Power Company for the first of two phases of a project to strengthen the electrical grid between the Kenai Peninsula and the Interior. It won a $6.5 million federal grant. . While the grant substantively supports the project, the state of Alaska must match the funding. The goal is to ensure that all of the Railbelt’s electricity customers, more than 75% of Alaskans, have access to electricity generated anywhere on the grid at the lowest cost.
Currently, Railbelt regions are connected through a single transmission line, which limits the amount of power that can be transferred between regions. The first step toward decongesting electric mobility, the Phase 1 upgrade will build additional lines from the Kenai Peninsula to South Central. Phase II upgrades will build additional lines from South Central to Healy. In addition to improving grid reliability and resiliency, this upgrade will allow more clean energy to be integrated into the grid. Natural gas issues are naturally at the forefront, but how the electricity gets to its destination is equally important. These important upgrades create a highly redundant and resilient system that helps utilities diversify their energy resources.
Keeping the lights on in Alaska’s homes, schools and businesses is a 24/7 responsibility. History shows that economies that have access to affordable and reliable energy thrive. We understand the value of reliable energy, and our daily goal is to provide it safely, efficiently and at the lowest possible cost. Being a nonprofit means costs are borne directly by members and cost-saving benefit members in the form of lower energy bills. We are committed to meeting our energy diversification goals, producing electricity as cheaply as possible, and doing our part to make our state a place our children and grandchildren will want to call home. Masu.
Without this subsidy, the entire cost of grid modernization will ultimately be borne by the customer. The first step is a commitment to fund initial work in advance of the major construction phase, which will demonstrate to the Department of Energy a long-term commitment to the entire project.
Gov. Mike Dunleavy introduced a budget amendment to fully fund short-term construction and the Senate to include funding in the 2025 capital budget for Phase 1 (Kenai Peninsula to South Central renovations). took the first step. Members of Congress have worked diligently on a bipartisan basis to make matching federal funding a top priority. In collaboration with the Alaska Department of Energy, a Phase II application has been submitted to his DOE to add new infrastructure from South Central to Healy. His two phases of work on the project will take up to 10 years, employ hundreds of Alaskans, and pave the way to integrate and supply new sources of power that can only be developed if we prepare now.
Thanks to the tireless efforts of the Governor and Senators Lisa Murkowski, Dan Sullivan, and Mary Peltola, the Railbelt power grid has become nationally known. With support from DOE, we can demonstrate how modern power grids can drive innovation, lower costs for consumers and foster economic development. We appreciate the efforts of the Alaska Legislature and urge them to continue working together to ensure funding is included in the final budget so that no federal funding for the project is left on the table. Vision is within our reach.
arthur miller CEO of Chugach Electric Association. Tony Izzo I am the CEO of the Matanuska Electric Association. john burns I am the CEO of the Golden Valley Electric Association.and Brad Janoschke He is the general manager of the Homer Electric Association.
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