Alaska Village Electric Cooperative

What Alaska Village Electric Cooperative does

Alaska Village Electric Cooperative (AVEC) is a member-owned, non-profit electric cooperative founded in 1968 that generates and distributes electricity to 58 remote communities across rural Western and Northwestern Alaska, serving approximately 32,000 residents and 8,033 cooperative members. The cooperative operates as a regulated utility under the Regulatory Commission of Alaska, providing electric service in geographic isolation where no grid interconnection exists—each village runs an isolated diesel microgrid, with 36 wind turbines across 14 sites and small solar arrays integrated to displace roughly 6% of diesel generation. AVEC's infrastructure footprint spans more than 500 miles of distribution lines, 8,000+ poles, 471 fuel tanks, and consumes approximately 8 million gallons of diesel annually (one-third in Bethel alone), with system-wide diesel efficiency improved from 5.9 kWh/gallon in 1975 to 13.7 kWh/gallon in 2020.

AVEC's core product is electricity itself, delivered through owned generation and distribution assets and billed via regulated tariffs that include a base non-fuel rate plus a fuel charge adjusted through the Cost of Power Adjustment (COPA) mechanism filed with the state regulator. The cooperative monetizes through retail electricity sales to residential, commercial, tribal/municipal, and community facility customers, supplemented by Alaska's Power Cost Equalization (PCE) program which subsidizes residential and community facility rates down to approximately 25 cents per kWh. Members also participate in a capital credits program in which margins are retained as working capital for approximately 17 years before refund at Board discretion. The cooperative sells through a direct-service distribution model with no resellers, supported by digital self-service channels (SmartHub online bill pay, pay-by-text, prepaid metering) and traditional mail/phone payments.

Governance is community-led: members elect delegates from each of the 58 communities who attend annual meetings; a Board of Directors with representation from member communities sets policy. AVEC reduces fuel logistics costs by operating its own tugs and barges (with partner Vitus Marine), cutting transportation costs by approximately 20 cents per gallon. The cooperative has invested over $200 million in partnership with the Denali Commission since 2001 for power system upgrades, tank farm replacements, and facility modernization, and continues to expand its renewable footprint with planned additional wind capacity and battery energy storage installations in communities such as St. Mary's and Stebbins.

Name

Alaska Village Electric Cooperative

Legal name

Alaska Village Electric Cooperative, Inc.

Website

https://avec.org

Company type

Private

Founded year

1968

Operating status

Operating

Headcount range

51–100 employees

Short description

Alaska Village Electric Cooperative is a member-owned, non-profit electric cooperative founded in 1968 that generates and distributes electricity through isolated diesel-renewable microgrids to 58 remote communities across rural Alaska, serving approximately 32,000 residents and 8,000+ cooperative members under regulated tariffs.

Ownership category

akta.pro rank

Product category

Rural Electric Utility Services

NAICS

Electric Power Generation, Transmission and Distribution (2211), Wind Electric Power Generation (221115)

SIC

Electric Services (4911)

akta.pro primary industry

Electric Cooperatives (Rural/Member-Owned Utilities) (EUADABAC)

akta.pro secondary industries

Remote & Islanded Oil/Diesel Power Generation (Off-Grid, Mini-Grids) (EUACACAG), Community & Distributed Wind Power Generation (Behind-the-Meter/Small Wind) (EUACAFAD), Community Microgrids & Shared Distributed Generation (EUACALAC), Distributed Storage (Behind-the-Meter Batteries) (EUAMAJAE)

Keywords

• Rural electric utility
• Electric cooperative services
• Microgrid power generation
• Wind diesel integration
• Remote community electrification

Headquarters

HQ city

Anchorage

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Supply Chain, Infrastructure, Personnel, Technology or R&D, Others

Revenue model

1. Electricity Sales: AVEC generates revenue through retail electricity sales to residential, commercial, and community facility members across 58 rural Alaskan communities. Rates include a base non-fuel rate plus a fuel charge component adjusted through COPA filings. Revenue has been insufficient to cover operating expenses in recent years, resulting in rate increases.
2. Capital Credits Retained: When AVEC earns margins (revenue exceeding costs), these are assigned to members as capital credits proportional to their electricity purchases. These credits are retained as working capital for approximately 17 years before being refunded at the Board's discretion.
3. Power Cost Equalization (PCE) Program: AVEC participates in Alaska's PCE program which helps defray electricity costs for residential and community facilities. Commercial, industrial, school, state, and federal members are not eligible for PCE and bear full fuel costs.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels6 records

Core offering

Alaska Village Electric Cooperative generates and distributes electricity to 58 remote Alaskan communities through isolated diesel microgrids supplemented by wind, solar, and battery storage assets. The cooperative owns and operates the largest wind turbine fleet in Alaska and provides supporting member services including prepaid billing, new construction service connections, capital credits patronage refunds, and renewable energy integration.

Product overview

Alaska Village Electric Cooperative (AVEC) operates as a generation and distribution electric utility serving 58 rural Alaskan communities across the Bering Strait region. The cooperative's core offering is electricity generation (primarily diesel with renewable integration) and distribution to homes and businesses. Supporting services include online bill pay through SmartHub platform, prepaid electricity service, new construction electrical service, service transfer/moving services, capital credits (member margin refunds), financial assistance, scholarships, and energy education programs. AVEC also integrates renewable energy (36 wind turbines and solar arrays) with energy storage systems to reduce diesel reliance. The cooperative operates as a member-owned utility with annual meetings, board governance, and delegate representation from member communities.

Differentiator

Problem solved

Functional benefit

Products and services

• Electric Generation and Distribution Services Core generation and distribution cooperative service delivering electric power to residential, commercial, and community facility customers across rural Alaska, including power plant operations, distribution line construction and maintenance, and grid management.
• New Construction Electrical Service

Quantifiable outcome

• Diesel efficiency improved from 5.9 kWh/gal (1975) to 13.7 kWh/gal (2020)
• +4 more outcomes

Named customers21 records

Segments4 records

Ideal customer profiles4 records

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration9 records

Feature4 records

Partnerships

Seven partnerships are on record, tiered minor and core.

• KawerakminorStrategic or Co-development Partner · 1 May 2026Regional native organization that hosted the Bering Strait Regional Energy Summit, bringing together delegates from the Bering Strait region to discuss regional energy priorities including resilience, cost reduction, and collaboration.
• Vitus MarinecoreChannel Partner/ Reseller/ Distributor · 1 January 2020Marine transportation company operating tugs and barges delivering fuel to AVEC communities across Western Alaska. Reduced AVEC's fuel transportation costs by approximately 20 cents per gallon. Also provided free hand sanitizer delivery during COVID-19 pandemic.
• National Rural Electric Cooperative Association (NRECA)coreStrategic or Co-development PartnerNational trade organization for electric cooperatives in the United States. Provides training, advocacy, industry research, and member services to electric cooperatives including AVEC.
• Alaska Power Association (APA)coreStrategic or Co-development PartnerStatewide trade organization providing government representation, training, and industry related services to Alaska power providers.
• Northwest Public Power Association (NWPPA)minorStrategic or Co-development PartnerTrade association providing training, educational programs, public relations, and governmental relations for electric cooperatives in Western US and Canada.
• Renewable Energy Alaska Project (REAP)coreStrategic or Co-development PartnerEducation and advocacy group promoting renewable energy and energy efficiency in Alaska. Partners with AVEC on Power Pledge Challenge youth education program and renewable initiatives.
• Alaska Center for Energy and Power (ACEP)coreStrategic or Co-development PartnerApplied energy research group at University of Alaska Fairbanks providing leadership in sustainable energy systems for islanded, non-integrated electric grids serving remote Alaska communities.

Scale indicators11 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Inside Passage Electric Cooperative: Small Alaska cooperative serving remote Southeast Alaska communities via diesel microgrids. Closely comparable to AVEC on rural cooperative model, diesel generation, and isolated microgrid operations.
• Matanuska Electric Association: Member-owned electric cooperative serving the Matanuska-Susitna Borough of Alaska. Direct peer to AVEC: same cooperative model, same RCA regulation, and overlapping member/governance structure serving Alaskan communities.
• Kodiak Electric Cooperative: Alaska cooperative that has built one of the highest renewable-penetration islanded grids in the U.S. through hydro and wind. Highly comparable to AVEC on cooperative structure, isolated microgrid operation, and diesel-renewable hybridization.
• Golden Valley Electric Association: Interior Alaska cooperative serving Fairbanks and surrounding communities, including rural extensions. Comparable cooperative business model and Alaska RCA-regulated generation/distribution footprint.
• Homer Electric Association: Alaska cooperative serving the Kenai Peninsula. Comparable cooperative model, Alaska RCA jurisdiction, and member/community governance structure aligned with AVEC.

Broad incumbents

• Chugach Electric Association: Largest electric cooperative in Alaska, serving Anchorage-area and Kenai Peninsula customers. Comparable on cooperative governance and RCA oversight, but materially larger and less remote-mission-aligned than AVEC.

Regional players

• Qulliq Energy Corporation: Crown corporation generating and distributing electricity to all Nunavut communities in Arctic Canada via isolated diesel microgrids with growing renewable integration. Highly comparable to AVEC's remote-village diesel/wind hybrid model, but operating in a different national jurisdiction.
• Northwest Territories Power Corporation (NTPC): Canadian territorial utility operating isolated diesel and hydroelectric microgrids across remote communities in the Northwest Territories. Directly comparable to AVEC on remote-microgrid operations and renewable-diesel hybridization, but operating in Canada rather than Alaska.

Others

• Alaska Energy Authority: State-owned corporation that finances and owns rural Alaska energy infrastructure, including many of the diesel plants AVEC operates or replaces. Peer-relevant as the public-sector counterparty AVEC partners with for capital, PCE administration, and grid expansion planning.
• National Rural Electric Cooperative Association (NRECA): National trade association representing U.S. electric cooperatives. Relevant as AVEC's industry/advocacy backstop and the channel for shared services, training, and federal funding access across the cooperative sector.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat6 records

Key risks7 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/alaskavillage

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Alaska Village Electric Cooperative