Alaska Fuel Price Projections 2014-2040

Abstract

The Alaska Fuel Price Projections are developed annually for the Alaska Energy Authority (AEA) for the purpose of estimating the potential costs and benefits of renewable energy projects. Project developers submit applications to AEA for grants awarded under the Alaska Renewable Energy Fund (REF) program. These fuel price projections are used to evaluate the economic feasibility of project applications; economic feasibility is only one of many factors of the project evaluation process. Economists at the Institute of Social and Economic Research (ISER), University of Alaska Anchorage (UAA) have completed seven previous Alaska Fuel Price Projections since 2008 (all available at: http://www.iser.uaa.alaska.edu/). In this report we present the methodology for the most recent fuel prices projection. In addition to their use for the REF review, ISER researchers use the projections for other economic research and energy project evaluations. The fuel price projections also fulfill an important need for price information and are used by many stakeholders in addition to AEA. As a result of their broad use among the public, we expanded what used to be cursory notes on methodology. Our intent is to provide more detailed information to the report’s readers and users of the fuel price projections.