Owned Assets

  • AEA Owned Assets
  • Alaska Intertie
  • Bradley Lake Hydroelectric Project
  • Bradley Lake Financial Statements

AEA History

After being created by the Alaska Legislature in 1976, the Alaska Energy Authority (AEA) worked throughout the 1980s to develop the state’s energy resources as a key element in diversifying Alaska’s economy.  A number of large-scale projects were constructed.After additional legislation in 1993 and 1999, AEA’s primary role was to own existing hydroelectric projects and the Alaska Intertie.  Although AEA’s role has since expanded programmatically, it still manages and provides oversight to state-owned energy assets.

Alaska Intertie Fact Sheet

The Alaska Intertie transmission line is a 170-mile long, 345 kV transmission line between Willow and Healy that is owned by AEA and operates at 138 kV. The project includes transmission towers and conductors, transformers at the Healy and Teeland Substations, and system stability devices at three locations that are necessary to allow the Railbelt Utilities to remain interconnected.

Purpose: The purpose of the Alaska Intertie is to interconnect GVEA, the regulated utility that serves areas north of the Alaska Range, with south central Alaska Utilities. Although the Alaska Intertie allows resources north and south of the range to be shared to improve reliability, the GVEA storage battery and generation resources have been used to send emergency power south at times to minimize catastrophic network wide outages.

Source of Funds: The Intertie was built in the mid-1980s with State of Alaska appropriations totaling $124 million. As a result of the state funds there is no debt associated with this asset.

Participants: The operation of the Intertie is governed by the 3rd amended and restated agreement. There are five parties (participants) to this agreement AEA, GVEA, ML&P MEA and CEA.

Benefits: A 1981 cost/benefit analysis indicated that substantial energy cost savings would result from the construction of an intertie allowing the exchange of economy energy and the sharing of reserve generation capacity between the Anchorage and Fairbanks load centers. Although the anticipated yearly monetary benefit was originally estimated to be $17 million per year, GVEA ratepayers achieved savings in excess of $52 million in 2012.

Additional Background: AEA has agreements with participating utilities to assure the Alaska Intertie operates with prudent maintenance and operation by utilities. ML&P is the southern region operator and GVEA is the northern region operator. MEA and GVEA maintain the intertie in the southern and northern regions respectively.

AEA serves as financial administrator, providing basic accounting services to establish a cost-based wheeling rate that is trued up each year. AEA collects payments from Intertie users and pays expenses, including reimbursement costs incurred by the two operators of the line, ML&P and GVEA, and the three maintenance contractors, MEA, CEA, and GVEA.

Other Documents    
Alaska Intertie Open Access Rules – 2013    
Railbelt Operating and Reliability Standards – 2013                                                                                

For more information contact:

Kirk Warren, Chief Operation Officer
Tel. (907) 771-3072
Fax (907) 771-3044

 

Bradley Lake Hydro Fact Sheet 

The Bradley Lake Project is located at the southern end of south central Alaska. The 120-megawatt project generates an average of 380,000 MWh of energy per year and transmits it to the state’s main power grid via two parallel 20-mile transmission lines.

The project, which cost approximately $328 million (including reserve fund balances), went into commercial operation in 1991. Homer Electric Association under contract with AEA operates the project. Bradley Lake serves Alaska’s Railbelt from Homer to Fairbanks as well as the Delta Junction area.

For more information contact

Bryan Carey, AEA Owned Assets Manager
Tel. (907) 771-3065 
Fax (907) 771-3044