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Alaska Energy Authority

Alaska Energy Authority (AEA) is the state public corporation that develops Alaska's electricity infrastructure. It operates the Bradley Lake hydroelectric plant near Homer, including its expansion, and runs rural bulk fuel and power cost equalization programs statewide.

Cover image for article: Nome power bills face a bigger fuel surcharge as utility board presses for overdue audits

Frame from "Nome Joint Utility System Board Meeting- Nov. 12, 2026" · Photo source

Nome power bills face a bigger fuel surcharge as utility board presses for overdue audits

by Cale Green · draft by Walter AlaskaNews(15h ago)
3 min readNome, Alaska

Nome's fuel surcharge on power bills is likely to jump from 18 cents to close to 40 cents a kilowatt-hour after the largest fuel bond the utility has had, its manager told the Nome Joint Utility System board Thursday.

"So it's going to about double the kWh cost," board member Carl Knodel said. The manager agreed, noting the utility's tariff, or base rate, is close to 20 cents. He said the final surcharge will be calculated for the board's next meeting.

The utility took in 2,011,808 gallons of fuel this fall. The bond is $8.6 million, the manager said, and the total bill from supplier Crowley will be closer to $9 million. The utility has already paid $1.3 million from cash reserves.

Knodel asked how much less the oil would have cost if the utility had bought in July. The manager said it always buys in September and had locked in its price under a three-year contract, with only a tug fuel adjustment changing.

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About Alaska Energy Authority

Alaska Energy Authority

Photo by U.S. Department of Energy, via Flickr · Photo source · Public domain

akenergyauthority.org ↗813 W Northern Lights Blvd, Anchorage, AK 99503, USA

The Alaska Energy Authority (AEA) is the state public corporation that develops electricity infrastructure in Alaska, with offices in Anchorage. It operates the Bradley Lake hydroelectric plant near Homer and is governed by a board.

AEA runs statewide programs for rural communities, including power cost equalization credits that offset village electricity costs and support for bulk fuel tank farms. Its board votes on loans and studies for energy projects, from hydropower and transmission to renewable power that replaces diesel. Rural electricity costs, the Bradley Lake expansion and the debt carried by Railbelt ratepayers are recurring questions.

Its work ties into the Railbelt grid and the Railbelt Transmission Organization, which sets transmission tariffs and technical standards, and into rural utilities such as the Alaska Village Electric Cooperative. Federal tax credits and grants shape the cost of many of the projects it backs.

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