Alaska Energy Authority details Bradley Lake expansion, Cook Inlet Power Link and rural upgrades; $142M gap remains for Power Link
March 19, 2026 | 2026 Legislature Alaska, Alaska
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Curtis Thayer, executive director of the Alaska Energy Authority, briefed the House Finance Committee on March 19 on AEA’s railbelt transmission priorities and rural energy programs.
Thayer described the Bradley Lake expansion as roughly a $400 million project for which AEA has raised about $20.7 million for preconstruction. He said the work would raise Bradley Lake’s dam by 16 feet, increase hydro output by about 50% (from roughly 10% to about 15% of railbelt needs) and is currently in FERC amendment review. Thayer said AEA hopes to be ready for construction in 2027 and to complete the project by around 2031, subject to permitting and financing timelines. "We have submitted a draft amendment application to FERC," Thayer said, and the draft review period is underway.
On the Cook Inlet Power Link — the subsea HVDC cable project often discussed as a long lead item — Thayer said the total price tag is about $413 million. He said the U.S. Department of Energy has awarded a roughly $206.5 million grant and the legislature and AEA/utility contributions total about $64.2 million (a $50 million AEA/utility bond plus $14.2 million in legislative funds), leaving a roughly $142 million match shortfall. Thayer warned the cable is a multi‑year procurement with long ship scheduling lead times, making early deposits and commitments important: "One of the large expense items we have is this cable. We need to make a deposit and get into the queue to have it built," he said.
Thayer outlined financing options under consideration: U.S. DOE title‑17/construction financing at treasury rates, USDA Rural Utilities Service programs, municipal/state bonds and taxable bond markets (including a potential National Rural Utilities Cooperative Finance Corporation commitment). He also noted the potential for investment tax credits for Bradley Lake that could be material — Thayer said tax credits might be worth between 6% and 25% of project costs depending on structure and could amount to tens of millions of dollars.
Committee members pressed AEA on timing and the sequence of tranches that might be needed to keep projects "shovel ready." Representative Hannon asked when the next appropriation would be required; Thayer said key spending would occur in FY 2026–2028 and reiterated the cable’s lead time for manufacturing and ship availability.
Thayer summarized other AEA work: the Railbelt Transmission Organization (RTO) has an open docket before the Regulatory Commission of Alaska (an open‑access transmission tariff filing with multiple interveners and a pending final order), the Renewable Energy Fund (REF) round 18 received $41.2 million in requests and REF activity has displaced an estimated 120 million gallons of diesel per year to date. He said AEA is managing roughly $300 million in deferred maintenance needs for rural power systems and that more than 400 bulk‑fuel facilities across rural Alaska represent over $1 billion in deferred maintenance. Thayer highlighted recent federal grants — including a split $100 million EPA grant administered with the Denali Commission for bulk‑fuel infrastructure — and smaller USDA awards for specific maintenance projects.
On operations and workforce, Thayer described AEA’s circuit‑rider program (four technicians conducting on‑site visits and hundreds of remote responses) and an inventory/3‑D modeling effort to improve remote training and troubleshooting. He acknowledged training and instructor shortages at AVTEC and said AEA leaves operations plans with communities when projects are turned over.
The committee asked for more detailed kilowatt‑cost modeling (PFM is preparing numbers) and for further information on regulatory jurisdiction and inspection frequency for tank farms. Thayer said he would follow up with specifics on which agency regulates which facilities and that AEA is coordinating with partners including the Denali Commission and Alaska Native Tribal Health Consortium.
The AEA presentation concluded and the committee took a brief at‑ease before moving to an introductory hearing on House Bill 210.
Thayer described the Bradley Lake expansion as roughly a $400 million project for which AEA has raised about $20.7 million for preconstruction. He said the work would raise Bradley Lake’s dam by 16 feet, increase hydro output by about 50% (from roughly 10% to about 15% of railbelt needs) and is currently in FERC amendment review. Thayer said AEA hopes to be ready for construction in 2027 and to complete the project by around 2031, subject to permitting and financing timelines. "We have submitted a draft amendment application to FERC," Thayer said, and the draft review period is underway.
On the Cook Inlet Power Link — the subsea HVDC cable project often discussed as a long lead item — Thayer said the total price tag is about $413 million. He said the U.S. Department of Energy has awarded a roughly $206.5 million grant and the legislature and AEA/utility contributions total about $64.2 million (a $50 million AEA/utility bond plus $14.2 million in legislative funds), leaving a roughly $142 million match shortfall. Thayer warned the cable is a multi‑year procurement with long ship scheduling lead times, making early deposits and commitments important: "One of the large expense items we have is this cable. We need to make a deposit and get into the queue to have it built," he said.
Thayer outlined financing options under consideration: U.S. DOE title‑17/construction financing at treasury rates, USDA Rural Utilities Service programs, municipal/state bonds and taxable bond markets (including a potential National Rural Utilities Cooperative Finance Corporation commitment). He also noted the potential for investment tax credits for Bradley Lake that could be material — Thayer said tax credits might be worth between 6% and 25% of project costs depending on structure and could amount to tens of millions of dollars.
Committee members pressed AEA on timing and the sequence of tranches that might be needed to keep projects "shovel ready." Representative Hannon asked when the next appropriation would be required; Thayer said key spending would occur in FY 2026–2028 and reiterated the cable’s lead time for manufacturing and ship availability.
Thayer summarized other AEA work: the Railbelt Transmission Organization (RTO) has an open docket before the Regulatory Commission of Alaska (an open‑access transmission tariff filing with multiple interveners and a pending final order), the Renewable Energy Fund (REF) round 18 received $41.2 million in requests and REF activity has displaced an estimated 120 million gallons of diesel per year to date. He said AEA is managing roughly $300 million in deferred maintenance needs for rural power systems and that more than 400 bulk‑fuel facilities across rural Alaska represent over $1 billion in deferred maintenance. Thayer highlighted recent federal grants — including a split $100 million EPA grant administered with the Denali Commission for bulk‑fuel infrastructure — and smaller USDA awards for specific maintenance projects.
On operations and workforce, Thayer described AEA’s circuit‑rider program (four technicians conducting on‑site visits and hundreds of remote responses) and an inventory/3‑D modeling effort to improve remote training and troubleshooting. He acknowledged training and instructor shortages at AVTEC and said AEA leaves operations plans with communities when projects are turned over.
The committee asked for more detailed kilowatt‑cost modeling (PFM is preparing numbers) and for further information on regulatory jurisdiction and inspection frequency for tank farms. Thayer said he would follow up with specifics on which agency regulates which facilities and that AEA is coordinating with partners including the Denali Commission and Alaska Native Tribal Health Consortium.
The AEA presentation concluded and the committee took a brief at‑ease before moving to an introductory hearing on House Bill 210.
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