Presentation for

Southeast Economic Development SummitTlingit and Haida Central Council

May 13th, 2011by

James S. Strandberg, P. E.

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A VISION – for the energy future and economic success of

Southeast Alaska

5/13/2011

Mission Statement: Lower the Cost of Energy in Alaska Assist in the development of safe, reliable

and efficient energy systems throughout Alaska, which are financially viable and environmentally sound.

Operation and maintenance of existing Authority-owned projects with maximum utility control

Funder for Alternative Energy Projects State-wide Energy Plan

Alaska Energy Authority (AEA)

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Projects SE Alaska Intertie Projects Bradley Lake Hydroelectric

Projects Alaska Intertie Small Rural Interties Southeast Integrated

Resource Plan Railbelt Integrated

Resource Plan Region-wide planning for

rural Alaska

AEA has two distinct functions:Programs Power Cost Equalization Bulk Fuel Upgrades Rural Power System Upgrades Training Renewable Energy Grants Power Project Loans Circuit Rider & Emergency

Response

Two of our energy partners:

DENALI COMMISSION

Sealaska Corp – SE IRP project partner

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A new and different world for SE AlaskaMarket forces intrude into community

economiesCauses primary fossil fuel prices to increaseAffects consumer heating and electricity costs –

businesses shut downHydro power communities – advantagedDiesel power communities – disadvantaged,

community economies in danger of collapse

The Unexpected Energy Situation

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Use Alaska’s vast energy resources toLower costs of heating,

transportation and powerCommunity by CommunityUtility by Utility

The Vision – Alaska’s Energy Future

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Coordinate energy supplies regionally TransportationHeatingElectricity

Value Energy Commodities - policy ElectricityFossil fuels

The Challenge – how to evolve to respond to the energy future

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Alaska Energy Authority Has Alternate Energy Programs Funding for new hydro-electric projects Reliable Agency Partner to pursue energy infrastructure

projects Experienced in evolving electrical networks

AEA’s challenge to Alaska’s Utilities

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Things AEA can do Facilitate regional

integrated resource planning - SEIRP

Assist Rural utilities to secure inexpensive fuels and efficient business structures

Assist SE Alaska to develop hydro/alternative energy/interties

AEA’s challenge to Alaska’s Utilities

The SEIRP Advisory Work Group in session in Sitka, Alaska

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Get it right – how to evaluate and decide

Consider the range of energy futures Economic Feasibility Future Risk Assessment Long term energy

security Consider potential

scenarios for fuel supply availability and cost – risk analysis

Do for all communities in SE Alaska

Getting SE Alaska Energy Projects Moving

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A common situation for rural SE communities -

Alternative Energy vs conventional fossil fuel vs both

Choose either hydro project or new diesel power plant?

Do both for redundant power supplies?

Energy challenges for SE Alaska

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The Alaska Intertie near Willow Alaska – designed at 345 kv, operated at 138 kv

Energy challenges in SE AlaskaAccomplish regional integrated resource planning (SEIRP)Identify large projects which can be jointly pursued under the SEIRP Jointly develop regional policy on priority use of electrical energy for space heating

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Energy challenges in Alaska

The task before us – energy projects and coordinated action – public and private

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Thank you, from the Alaska Energy Authority. (www.akenergyauthority.org)

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