Electric Co-op Today

Diesel has been the life’s blood of Alaska’s electric co-ops for decades. But as consumer-members face higher costs and press environmental concerns, many co-ops are seeking alternatives.

Co-ops serving many of Alaska’s rural communities depend on boats like this one seen near the City of Port Lions to deliver crews, equipment and fuel. (Photo By: Kodiak Electric Association)

“Fuel costs are killing rural Alaska,” said Meera Kohler, president and CEO of Alaska Village Electric Cooperative. The Anchorage-based co-op serves 53 communities, only one of which is accessible by road. Crews, equipment and fuel have to be hauled to the others by air, boat or barge.

AVEC currently buys about five million gallons of diesel fuel annually for its primary source of power: 150 diesel generators collectively operating about 400,000 hours annually.

In 2011, two tug and barge sets owned by a co-op subsidiary will begin serving AVEC’s territory. The co-op invested $12 million in the project, primarily to bring competition to western Alaska’s fuel-delivery market, Kohler said.

BIG WIND

AVEC also has an aggressive wind generation program. It now includes 2,564 kilowatts of capacity, nearly double the amount of wind available to the co-op just two years ago, said Kohler. “We hope to replace 25 percent of our diesel use through efficiency improvements and renewable energy by 2018.”

Kodiak Electric Association spent two years developing Alaska’s first large-scale commercial wind project, adding 4.5 megawatts of wind to its portfolio.

“A good 90 percent of the time, we’re hydro and wind, combined,” said Darron Scott, president and CEO of the Kodiak-based co-op. “Renewable energy is helping us cut about half our diesel demand. That’s not only reducing our emissions, but it’s also helping us insulate our consumer-members from fluctuations in fuel cost.”

The Alaska Energy Authority and the federally-chartered Denali Commission support a variety of renewable energy and fuel diversification projects. Still, an Authority report estimates that residents in 176 of the state’s largest rural communities will spend more than $5 billion on diesel over the next 20 years.

Tags: Biomass, Hydroelectric Power, Power Plants, Wind Energy