Juneau Faces Loss of 100% Renewable Energy โคClaim as AIDEA Pursuesโ Sale of โlocal Credits
JUNEAU, ALASKA – A dispute over the ownership of renewable energy credits (RECs) generated by โฃthe Snettishamโ Hydroelectricโค project threatens Juneau’s ability โto claim its electricity is 100% renewable. โคThe Alaska Industrial Development adn Export Authority (AIDEA) โis attemptingโข to sell the credits, a move opposed byโค Alaska Electric โฃLight & Power (AEL&P), theโ city of Juneau, and Hecla, owner of the Greens Creek Mine, which โrelies โฃon Snettisham’s hydropower.
The conflict centers on whether AIDEA, which owns theโ Snettishamโ facility, or AEL&P, which holds the power โgeneration rights, is entitled to the financial benefits of theโ RECs. these credits represent theโ environmental attributes of renewable energy generation andโข can beโค sold to entities needing to meet renewable energy standardsโ – standards Alaska currently lacks.
AIDEA’s decision to โpursue the sale has drawnโฃ sharp criticism fromโฃ Juneau officials. “To be doing that at our expense, and that โคis certainly frustrating,” saidโ Juneau mayor Greg Barr. He characterized the proposal asโ short-sighted and โคfaulted AIDEA for โขnot consulting with the city โคprior to initiating the process.
Greens Creek Mine, โฃthe โnation’s largest silver mine located nearโ Juneau,โ currently operates partially on surplus hydropower from Snettisham. Heclaโฃ reportedโ a 38% decrease โขin greenhouse gas emissions between 2019 and 2024, partially attributedโค to this โคrenewable energy source. Last week, Hecla filed a complaint with the Regulatory Commission of Alaska, arguing AIDEA does not โown the RECs and therefore cannot sell them. AEL&P followed suit on Thursday, filing aโค lawsuit making the same โฃclaim.
Despite owning the Snettisham Hydroelectric โProject, AIDEAโ sold the power generation rights to AEL&P years ago.AEL&P โcontends that โขany RECs created at Snettisham rightfully belong to the utility.
The situation is complicated by Alaska’s lack of legislation governing RECs. A โขbill that would have established a framework for their creation, tracking, and transfer was consideredโข by the Alaskaโฃ Legislature a few years ago but failed to advance out ofโข committee. Most other states do have such laws.
AEL&P CEO Alec Mesdag explained the utility previously considered selling the credits but ultimately decided against it. “It’s been something that has just provided substantially more value than what โwe would obtain by selling the RECs to โsomeone whoโฃ doesn’t live here at all,” he said.He noted theโค credits are more beneficial to energy grids with diverse power sources, as utilitiesโ use them to โmeet renewable portfolio standards mandated by state laws – whichโข Alaska does not currently have.
The Alaska Superior Court โhas issued a temporary restraining order, halting the sale โof RECs pending a hearing scheduled for โคSeptember 18. Theโ court will determine whether AEL&P, and by extensionโ local businesses and nonprofits,โ retains the right to claim the environmental benefits ofโ juneau’s โrenewable energy supply.