Power Project Loan Fund

Created by the Alaska State Legislature and administered by the Alaska Energy Authority, this fund provides loans to electric utilities, regional electric utilities, municipalities, regional and village corporations, village councils, and independent power producers. It is designed for the development or upgrade of small-scale power production facilities of less than 10 megawatts, conservation facilities, and bulk fuel storage facilities. This includes energy production, transmission and distribution, and waste energy conservation facilities that depend on fossil fuel, wind power, tidal, geothermal, biomass, hydroelectric, solar or other energy sources.

The loan term is related to the life of the project, but may not exceed 50 years. Interest rates are the lesser of the average weekly yield of municipal bonds for the 12 months preceding the date of loan, or a rate the Alaska Energy Authority determines will allow the project to be financially feasible. Maximum loan amounts may be determined by available funds in the program, and loan requests over $5 million require legislative approval. Application fees, effective April 2015, are based on the loan amount requested, and vary from $200 for projects up to $100,000 to $5,000 for projects over $1 million.

Contact the Alaska Energy Authority for more details and current restrictions on maximum loan amounts.