OPINION: Strategies for Homer’s energy future
Published 9:30 am Wednesday, April 29, 2026
Homer Electric Association is 88% dependent on natural gas for power generation, but Cook Inlet natural gas supply is dwindling. To fill the gap, Railbelt utilities will likely import LNG from Outside for power generation and heating at substantially higher prices. Currently being debated is an expensive North Slope LNG pipeline that will take many years to be built and provide gas at some unknown price.
In the meantime, what strategies can we use to make sure we continue to have reliable power but hold costs down as much as possible?
Two big ones come to mind. 1) Use less natural gas by building more renewable energy projects and increasing generation efficiency, and 2) Work with other Railbelt electric utilities and the State to improve the Homer to Fairbanks grid and identify projects that minimize energy costs and secure reliability.
Renewables and Efficiency – Alaska has a long track record of harnessing its abundant hydro, biomass, wind, geothermal and solar resources. Thirty-five years after Alaska Energy Authority completed it, Bradley Lake Hydro is steadily producing power at 4.3 cents a kilowatt-hour. Since 2008, the State’s Renewable Energy Fund has supported development of over 110 utility-scale projects that are returning over two dollars in savings for each dollar invested, according to an independent study. A few examples of projects: Anchorage Landfill Gas-to-Power, Eva Creek Wind (Healy), Fire Island Wind (Anchorage), Delta Junction Wood-Chip Boiler, Chena Hot Springs Geothermal, Juneau Airport Ground Source Heat Pump, Kotzebue Solar, and Allison Lake Hydro (Valdez).
Another way to decrease natural gas consumption is to use less gas to make the same amount of electricity. HEA has done and is doing this. Recently the HEA board committed $78 million for upgrades at its Nikiski power plant that will increase efficiency by about 20%.
Railbelt Planning – Homer is (tenuously) connected to Anchorage and Fairbanks through interties comprising the Railbelt grid. To get the most bang for our energy buck, we need to look at the big picture, not just inside our utility district. Shouldn’t we weigh the costs and benefits of upgrading HEA assets against improving our connection to other efficient plants further north—and developing new renewable power plants, like Bradley Lake, that can serve all the Railbelt utilities at an economy of scale?
The Railbelt Reliability Council is doing just this. Mandated by the Legislature in 2020 and governed by a 13-member board including utility, government, consumer, and environmental interests, the RRC is preparing an “integrated resource plan” that details what power plants, interties, and other assets should be developed over the coming years to serve all Railbelt electric ratepayers. The RRC will update the plan every two years and seek to maximize “public good”. It will be up to HEA management and the board to make sure that our ratepayers’ interests are being served in this process.
Fossil fuels have served us well and will remain an important part of our energy portfolio. But our interests are best protected by diversifying with clean, zero-fuel-cost, predictably priced, Alaskan renewable energy across the whole grid. Let’s work with the State and other Railbelt utilities to plan, finance and build a reliable, resilient grid that serves us best in the long term.
Peter Crimp is running for the Homer Electric board of directors. He is a 44-year resident of Alaska and former deputy director of the Alaska Energy Authority, where he worked for 20 years and led the State’s renewable energy program. The HEA board election is ongoing through May 6. To vote, go to www.homerelectric.com/my-cooperative/board-of-directors/election.
