Committee on Energy and Natural Resource

Islanded Energy Systems Committee on Energy and Natural Resource

Those who live in remote and isolated areas that are not connected to the national grid face unique energy challenges. Alaska, Hawaii, and our territories are areas largely dependent on imported diesel fuel for their energy needs. The cost of importing that fuel adds significantly to the overall cost of electricity, and in the case of Alaska, it also adds to the cost of space heat. Most remote locations pay at least twice the national average for electricity. In parts of Alaska, rates can reach 10 times the national average as a result of the need to import fuel. In other isolated areas, in our islands that are reliant on imported energy, this is probably the most debilitating aspect of their ability to have an economy at all. While the nation's regional grids have a diverse set of energy sources to draw from, most isolated areas simply do not have that luxury. Instead their energy costs are directly tied to the price of oil. Lower prices are providing some relief right now, but energy source diversity is the best and most stable option over the long term.