Kodiak Electric signs 20-year contract to upgrade energy systems at Coast Guard Base Kodiak

The Defense Logistics Agency signed a 20-year contract with Kodiak Electric Association on Sept. 30 to install energy conservation measures for the Coast Guard at Base Kodiak, according to the federal award record. The first $2 million goes to design, construct and install measures that "provide utility resilience and reduce energy usage."

The deal is a utility energy service contract. Under those contracts, the utility finances and installs the work and the agency repays it over the term, according to the Congressional Research Service. This one runs through Sept. 29, 2046.

The project updates the base's steam, drinking water, wastewater and electrical systems, according to a Coast Guard shore infrastructure report, which measures the savings against about $8 million a year in utility costs. Defense Logistics Agency documents have described the scope as about 346 facilities in a 2025 notice and 743 in an earlier justification.

Last year, the agency paid KEA about $1.1 million for an investment-grade audit, which identifies and prices the measures. The new contract was awarded without competition under a federal exception for utilities.

KEA's 2025 annual report expected the project to move forward in 2026. "Due to multiple government shutdowns, this project has been delayed from its original schedule," it said.

The contract records don't list the specific upgrades, projected savings or a construction schedule.