Utility representatives urge maintaining Renewable Energy Fund at historical levels

A regional utility executive told the Senate Finance Committee that continued investment in Alaska’s Renewable Energy Fund (REF) produces measurable fuel savings and should be maintained at recent historical levels.

Jason Custer, vice president of Alaska Power and Telephone Company and chair of the Southeast Conference energy committee, asked the committee to ‘‘keep the Renewable Energy Fund a going concern’’ with a $14,200,000 appropriation (or at minimum $10,000,000). He said the Alaska Energy Authority (AEA) estimates REF‑funded projects have offset about 13,000,000 gallons of diesel fuel per year; valuing that conservatively at $4 per gallon yields roughly $52,000,000 per year in avoided fuel costs, which Custer compared to payouts from the PCE endowment.

Custer said REF has catalyzed local investment in Alaska‑made renewable projects and translated to cost savings for schools, families and businesses, and he framed a stable REF appropriation as an investment that reduces reliance on costly imported diesel in rural communities. He delivered the request as public testimony during the committee’s hearing on the FY27 operating and capital budgets.

The committee did not take action during the morning session; this testimony is part of ongoing budget deliberations.