A Power Purchase Agreement, or PPA, is a contract allowing an electric utility to purchase power from a nonutility electricity generator for a predetermined price and period of time. These contracts can help cooperatives increase reliability by having more resources available to meet load demands. However, the decision to enter into a PPA should be made carefully. Travis Million, CEO of Golden Valley Electric Association, discussed how economics, reliability, rates and weaknesses in infrastructure can all affect whether a specific PPA is a good fit for a local cooperative.
What is Alaska Powerline?
Alaska Powerline features conversations with utility leaders and others who are shaping the future of electric energy in Alaska. The podcast discusses electric power policy and educates listeners on the unique issues facing Alaska’s electric utilities.