AEA completes purchase of transmission line

Alan Bailey

for Petroleum News

The Alaska Energy Authority has completed its $17 million purchase from Homer Electric Association of the 39.3-mile electricity transmission line between the Sterling Substation and Quartz Creek on the Kenai Peninsula. The transmission line, referred to as the SSQ line, is critically important for the shipment of power from the Bradley Lake hydroelectric plant in the southern Kenai Peninsula to electric utilities elsewhere on the Alaska Railbelt electricity system.

Bradley Lake supplies the least expensive power available on the Railbelt electricity grid. The facility is owned by AEA, operated by HEA and managed by a committee with members from the Railbelt utilities and AEA. The objective behind the purchase of the SSQ is to align the management of the line with the operation and use of Bradley Lake.

“This acquisition furthers AEA’s mission to reduce the cost of energy in Alaska,” said AEA Board Chair Dana Pruhs. “The addition of these assets results in the SSQ line becoming part of AEA’s Bradley Lake Project with better cost alignment and will facilitate upgrades benefiting Alaska ratepayers.”

“This purchase marks a pivotal moment in the history of our partnerships,” said AEA Executive Director Curtis Thayer. “The transaction brings significant benefits to customers today and into the future - including better cost alignment, increased reliability, and future prospects for upgrades to the line, which would decrease line losses and allow for increased power transmission north, and unconstraining Bradley power.”

“This transmission line is key in delivering consistently low-cost renewable hydroelectric power to some of the largest population centers in the state,” said Tony Izzo, chair of the Bradley Lake Project Management Committee and CEO of Matanuska Electric Association. “We applaud the Alaska Energy Authority’s leadership in partnering with the utilities to provide energy security and stabilize costs for ratepayers throughout the region.”

- ALAN BAILEY