Juneau Faces Loss of 100% Renewable Energy Claim as AIDEA Pursues Sale of local Credits
JUNEAU, ALASKA – A dispute over the ownership of renewable energy credits (RECs) generated by the Snettisham Hydroelectric project threatens Juneau’s ability to claim its electricity is 100% renewable. The Alaska Industrial Development adn Export Authority (AIDEA) is attempting to sell the credits, a move opposed by Alaska Electric Light & Power (AEL&P), the city of Juneau, and Hecla, owner of the Greens Creek Mine, which relies on Snettisham’s hydropower.
The conflict centers on whether AIDEA, which owns the Snettisham facility, or AEL&P, which holds the power generation rights, is entitled to the financial benefits of the RECs. these credits represent the environmental attributes of renewable energy generation and can be sold to entities needing to meet renewable energy standards – standards Alaska currently lacks.
AIDEA’s decision to pursue the sale has drawn sharp criticism from Juneau officials. “To be doing that at our expense, and that is certainly frustrating,” said Juneau mayor Greg Barr. He characterized the proposal as short-sighted and faulted AIDEA for not consulting with the city prior to initiating the process.
Greens Creek Mine, the nation’s largest silver mine located near Juneau, currently operates partially on surplus hydropower from Snettisham. Hecla reported a 38% decrease in greenhouse gas emissions between 2019 and 2024, partially attributed to this renewable energy source. Last week, Hecla filed a complaint with the Regulatory Commission of Alaska, arguing AIDEA does not own the RECs and therefore cannot sell them. AEL&P followed suit on Thursday, filing a lawsuit making the same claim.
Despite owning the Snettisham Hydroelectric Project, AIDEA sold the power generation rights to AEL&P years ago.AEL&P contends that any RECs created at Snettisham rightfully belong to the utility.
The situation is complicated by Alaska’s lack of legislation governing RECs. A bill that would have established a framework for their creation, tracking, and transfer was considered by the Alaska Legislature a few years ago but failed to advance out of 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 we would obtain by selling the RECs to someone who doesn’t live here at all,” he said.He noted the credits are more beneficial to energy grids with diverse power sources, as utilities use them to meet renewable portfolio standards mandated by state laws – which Alaska does not currently have.
The Alaska Superior Court has issued a temporary restraining order, halting the sale of RECs pending a hearing scheduled for September 18. The court will determine whether AEL&P, and by extension local businesses and nonprofits, retains the right to claim the environmental benefits of juneau’s renewable energy supply.