AK Energy Authority Board Approves $9 Million Loan for Southeast Hydroelectric Project
August 12, 2010
A press release from the Alaska Energy Authority: Today the Alaska Energy Authority (AEA) Board of Directors approved a $9 million Power Project Fund (PPF) loan to Haida Energy, Inc. to help finance a new 5 megawatt (MW) hydroelectric project located at Reynolds Creek on Prince of Wales Island in Southeast Alaska.
Haida Energy, Inc. is a newly formed entity established by Haida Corporation and Alaska Power and Telephone Company, Inc. (AP&T). The corporation was formed to construct and own the new Reynolds Creek 5MW plant, which has a total project cost of $17,245,000. State and federal grants totaling $5,340,000 were previously approved. Haida Corporation invested $4 million, and will reduce its equity investment to $2,905,000 through use of the PPF loan approved today.
AEA’s Power Project Fund provides loans to local utilities, local governments or independent power producers for the development or upgrade of electric power facilities, including conservation, bulk fuel storage and waste energy conservation.
AEA Board of Directors approval is required for any Power Project Fund loan that exceeds $2,000,000.
The Alaska Energy Authority is a public corporation of the state. AEA’s purpose is to reduce the cost of energy in Alaska.