Investment Banking and Underwriting Services

Summary (Newest Update)

Background The Alaska Energy Authority (AEA) is a public corporation of the State of Alaska, established in 1976, with the mission of reducing energy costs for Alaskans. AEA serves as the primary vehicle for owning, financing, and administering energy infrastructure projects, including the Bradley Lake Hydroelectric Project. The Authority is seeking financing for an expansion of this project, which is the largest renewable energy facility in Alaska, located near Homer. The expansion aims to divert glacial runoff from Dixon Glacier into Bradley Lake, increasing output by up to 50%, or approximately 165,000 MWh annually. This will displace around 1.5 billion cubic feet of natural gas each year. Work Details The selected investment banking firm will provide underwriting services related to the issuance of tax-exempt revenue bonds or other financing strategies for the expansion project. The expansion includes: - A diversion dam and intake structure at Dixon Glacier; - A 4.7-mile-long, 14-foot diameter tunnel conveying water from the Martin River to Bradley Lake; - Modifications to the existing Bradley Lake dam and spillway to raise the maximum operating pool level by 16 feet; - One mile of new road construction for access to the tunnel outlet. The total project cost is estimated at $420.7 million, with an expected financing need of $400 million through tax-exempt bonds. Period of Performance The contract will be performed over a timeline that includes various draw schedules starting from December 1, 2026, through June 30, 2032. Place of Performance The work will primarily take place in Alaska, specifically near Homer for the Bradley Lake Hydroelectric Project. Bidder Requirements Proposals must demonstrate qualifications including experience in developing comprehensive funding plans and successfully selling bonds similar in size and quality to those anticipated by AEA. Firms must provide details about assigned personnel's backgrounds and experiences with similar financing types. Additionally, firms should discuss their marketing plans for bond distribution and proposed underwriting compensation.