On Friday, April 4th, 2025, Renewable Energy Alaska Project’s Public Policy Committee voted to endorse Erin McKittrick and Mitchell Michaud for election to the Homer Electric Association Board of Directors. REAP’s decision to endorse candidates for the Homer Electric Board of Directors underlines the importance of this election and its implications for the future of energy in Alaska.
Homer Electric’s electricity rates will increase dramatically in the next five years if the utility does not take action to diversify its generation portfolio away from a dangerous dependence on increasingly expensive fossil fuels and towards a mix that includes more locally generated renewable energy. Studies conducted by Alaska’s Department of Natural Resources (DNR) show the supply of Cook Inlet natural gas failing to meet demand as soon as 2027. Homer Electric leadership has known this for a while, yet they have not acted with the necessary urgency to develop alternative sources for electricity generation. In the wake of all this, Homer Electric’s Board is preparing to import liquefied natural gas (LNG) in order to replace our dwindling gas supplies from Cook Inlet. This is despite the fact that solar and wind energy are already cost competitive with natural gas – and getting cheaper – while imported LNG would cost at least 50% more than we’ve historically paid for our gas.
Several studies of the Railbelt energy system have shown that renewables can be developed quickly enough to meet short-term energy needs in the face of gas supply shortfalls, and that doing so represents the lowest-cost path forward for ratepayers across the region. The National Renewable Energy Laboratory (NREL) released one study in February 2022, which found that multiple pathways exist for generating 80% of the Railbelt’s electricity using renewables by 2040 while balancing supply and demand under major outage conditions with appropriate system engineering. A subsequent NREL report, published in March 2024, found that the lowest-cost future for the Railbelt power grid entails generating approximately 76% of the system’s electricity from renewables by 2040. Doing so would bring Railbelt ratepayers total net savings of over $1 Billion between 2024 and 2040 after subtracting the costs associated with integrating those additional renewables and addressing their variability from the much larger savings on avoided fuel purchases. Most recently, the Railbelt electric utilities commissioned a report from Energy and Environmental Economics, Inc. which finds that the Railbelt grid can integrate 300 MW of new wind without negative stability or reliability impacts, or the need for any new transmission.
Now, more than ever, we need experienced, forward-thinking leaders on the Homer Electric Board. We need their expertise and leadership to help diversify our generation portfolio away from a dangerous dependence on natural gas and towards an increasing mix of renewable energy resources. Moving in this direction will stabilize electricity rates and keep precious energy dollars circulating in our state’s economy.
In this pivotal moment for the future of energy in Cook Inlet, REAP is proud to endorse Erin McKittrick and Mitchell Michaud for the Homer Electric Board of Directors. These two candidates have each shown their commitment to REAP’s mission of increasing the development of renewable energy and energy efficiency in Alaska in a way that keeps energy costs low and stable and stimulates the development of new industries that provide great jobs and economic opportunities to Alaskans.
