Energy Infrastructure on the Kodiak Road System
The Kodiak Electric Association (KEA) produced 99.8% renewable electricity from hydroelectric and wind generation sources in 2023. KEA provides electricity service to the Kodiak Road System and to Port Lions. Current generation infrastructure in place and financed through long-term debt, creating what is essentially a fixed-cost utility, meaning that electricity rates do not fluctuate with the cost of diesel fuel or natural gas like most of Alaska.
Electricity demand is expected to soften from the impact of reduced fish processing and the sale of Trident’s Kodiak processing facility. In response to reduced revenue, KEA enacted a 12.5% rate increase to cover fixed costs, effective April 1, 2024. This is the first time in 30 years KEA has increased rates. Even with the increase, electricity rates are similar or less than the cost of the greater Anchorage area, the average cost of the United States, and less than most other areas of Alaska. Industry on the Kodiak road system can depend on stable, affordable rates, which provides an ideal location for seafood processors to operate and the opportunity for future development of year-round agriculture, manufacturing, and kelp/mariculture product processing .
