Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

 

 

January 29, 2026

 

 

Dear friends and neighbors,

 

Photo: From a home on top of hill overseeing Fox on Jan 24, 2026.

 

Budget

This is the most important topic we deal with this year.

I have a section on Senate Finance meetings week, and will repeat it each week, so you can follow along.

In the section are links to actual meetings and documents, and summary notes from the meetings.

 

 

What if...?

What if you could have 6 cents/kWh electricity forever (Chugach Electric currently 16 cents/kWh)?

What would you save every year on electric power?

Would it equate to $1000/year?

 

In October 2025, every qualified Alaskan received a $1000 PFD.

That $1000 PFD cost $680 Million.

 

Electric energy from Bradley Lake Hydroelectric Project = 4.5 cents/kWh

Read again: Four and a half cents per kilowatt hour

 

Today Bradley Hydro supplies about 10% of the power to 550,000 people on Railbelt.

If Bradley could supply more than 10%, the cost of that power would go down.

 

How to get more Bradley power to people: a large cable put under Cook Inlet (high voltage direct current).

We have a Federal Grant that would pay for 1/2 of the cost.

We have to pay for $206.5 Million as our share. Some of this money has been secured.

We still need $142.5 Million to complete the payment.

 

What if we took $142 Million out of the $680 Million PFD? (Leave $538 Million for PFD of about $750).

We would have access to 6 cent electricity forever.

What would you do if this were your decision?

 

Other aspects: The expansion of Bradley (Dixon Glacier Diversion) is underway and will increase the power production by 7.5%, bringing yet more inexpensive, renewable hydropower to the Railbelt.

 

You might say, "Well, what about rural Alaskans who aren't on the "Railbelt transmission line"?

Alaska has a unique program called "Power Cost Equalization (PCE)". While this doesn't subsidize rural residential power to be "equal" to the Railbelt, it reduces the cost of power a lot. The amount of the subsidy is based on the cost of power in the Railbelt. As the cost of power goes down in the Railbelt, the PCE subsidy would increase to further lower the cost of energy in rural Alaska as well.

 

But wait there's more...

·     Expanding reliability of baseload hydroelectric power reduces ratepayers’ exposure to commodity market risk. If Railbelt utilities do need to import LNG, that change will dramatically increase exposure to commodity risk.

·     Even if the energy mix is disrupted (by AKLNG, imported LNG, or anything else), this project will enhance grid reliability and generation flexibility between Railbelt utilities. In other words, the project has high value regardless of what happens in energy markets. 

 

This "dividend" is an investment that would pay forever.

 

More information comparing energy costs across Alaska, Bradley Lake power, and transmission line are below.

 

Comparison Chart of energy costs across Alaska (AEA)

 

Bradley Lake link

Cook Inlet Transmission Line link

 

Items in this Newsletter:

·     Upcoming Catch Up With Cathy Events

·     Visiting the Alaska State Capitol

·     Alaska Revenue Commissioner Invest $50M

·     New Lawsuit Regarding Public Education in Alaska

·     Current Topics, Stuff I Found Interesting, Arctic Issues, Economy, Education, Politics, Healthcare

·     Alaska History in January

·     Resource Values, Permanent Fund

 

 

 

 

Catch up with Cathy

 

These are informal coffee conversations in which the folks that attend determine the topics of interest and concerns.

 

March 21st - at the Kaladi Brothers on Tudor Rd

 

March 28th - at the Grind in Girdwood

 

April 11th - at Steamdot in the O'Malley Center

 

My staff and I love these meetings! They are small groups and we can talk about what interests the folks who attend.

 

Usually 8-10 folks come; people come and go during he one hour time; the topics are determined by the people who are present.

 

 

Senate Finance 2026

 

 

January 22 - Link to meeting. Production Forecast Notes from meeting

January 23 - Link to meeting. Revenue Forecast Notes from meeting

January 26 - Link to meeting. Governor FY27 Budget request. Notes from meeting

January 27 - Link to meeting. Veto Overview Notes from meeting

January 28 - Link to meeting. Leg Finance Budget Overview Notes from meeting

 

 

Dunleavy's Proposed Fiscal Plan

 

Here is the legislation: SB 227

Here is the fiscal note (expected cost and revenue from Dept of Revenue)

Here is a summary prepared by Senate staff, interpreting the bill

 

 

Dunleavy to introduce sales tax ‘concept’ in final year as governor. ADN

Gov. Dunleavy says his fiscal plan will include a 'temporary, seasonal sales tax'. Alaska Public Media

 

Governor expected to propose statewide sales tax, oil tax hike in final State of the State address Thursday. Alaska Independent

 

Dunleavy to propose ‘temporary, seasonal sales tax’ in Thursday’s Alaska State of the State address. Alaska Beacon

 

Vowing to protect PFD, Dunleavy skips sales tax talk in final State of the State Address. Alaska News Source

 

Gov. Dunleavy unveils long-awaited fiscal plan with statewide sales tax ADN

 

Reporting From Alaska- Dunleavy wants to eliminate all corporate income taxes in Alaska, a giveaway that would soon top a half-billion a year Reporting from Alaska

 

Reporting From Alaska- Dunleavy, who claimed he wanted a 'seasonal' sales tax, proposes year-round tax that doubles in the summer Reporting from Alaska

The plan calls for enshrining the Permanent Fund dividend in the state constitution; restricting state spending; and raising new revenue, primarily through a sales tax set at 4% for half the year and 2% for the other half. His proposal also calls for eventually repealing the state’s corporate income tax.

(My comment: Gov Dunleavy proposes to tax citizens but remove tax from corporations.)

 

Dunleavy’s fiscal plan: Sales tax for you, tax cuts for corporations The Alaska Memo

 

 

Alaska Liquified Natural Gas Pipeline



This topic is being heard in Senate Resources Committee.

Here are the first 3 hearings on the proposed pipeline.

 

January 23 - Pegasus reviewing history of mega-project, TAPS, as applied to mega-project Alaska Gas Pipeline. GaffneyCline comments on risks to be aware of and state steps for revenue.

Pegasus report 2019

Pegasus presentation

GaffneyCline summary

Wood Mackenzie assessment 2024

 

January 26 - continuation from Jan 23 meeting

 

January 28 - Dept of Transportation

 

Alaska LNG says it expects to start laying pipe as early as December - ADN

 

Dunleavy, developer celebrate gasline momentum KDLL

But Alaska lawmakers stressed after the governor’s speech that there are currently no binding gas sales or purchase agreements for the project, and no agreements for its financing. Senate leaders said they have many questions on how the project will impact revenue to the state, including the potential for investments in Alaska LNG that could lead to tax write-offs for oil and gas producers. “We need to look at our current laws, and do they work for this new project,” said Senator Cathy Giessel.

(My Comment: Alaskans need to know this: We are not giving away our resource. There will be an equitable return to the State.)

 

LNG project final investments to slow in 2026 after record year Gas world

The slowdown comes as the LNG market absorbs a wave of capacity already under construction. Around 225 million tonnes per year of LNG supply is currently being built globally, with nearly 30 million tonnes expected to enter the market in 2026.

 

Alaska LNG nets nonbinding partnership from Greek shipping company KDLL

Cook Inlet could welcome Greek traffic in the form of liquefied natural gas shipping containers if a new Alaska LNG Project partnership comes to fruition. The owner and developer of the gas line megaproject announced Tuesday it will partner with Danaos Shipping Company Limited to ferry liquefied natural gas out of a planned liquefaction facility in Nikiski. The partnership is not a binding agreement and comes ahead of Glenfarne Group’s go or no-go development decision on the Alaska LNG Project.

 

 

Oil Tax Policy

 

This graph is an easy summary of where the money goes from an Alaska North Slope barrel of oil.

 

 

 

Current Topics

Ranked choice supporters accuse Alaska election officials of using ‘untrue’ language in repeal ballot measure ADN

"The language explaining what they're voting on must be simple, complete, and impartial," Giessel said in a statement from the group. "Alaska has uniquely strong dark money disclosure laws that ensure voters know who is spending money on political campaigns, and yet the current ballot language fails even to mention it would repeal these laws, along with open primaries and ranked choice voting."

 

Officials report no serious injuries as massive drilling rig topples on North Slope - ADN

No one was seriously injured and all personnel were accounted for in the incident, which occurred around 4:45 p.m. Friday and involved the Doyon 26 rig, ConocoPhillips Alaska and the North Slope Borough said in a joint prepared statement.

 

Some PFD filers unintentionally open new accounts after administrative change to Alaska 529 - Anchorage Daily News

last year, some PFD filers unintentionally contributed to new accounts, which automatically opened even if they had previously contributed to a child’s 529 account. This happened unless they called the Alaska 529 office before the end of August to specify which account to direct their PFD to.

 

Dunleavy administration contradicts industry’s call for ‘urgent action’ on transportation funding ADN

Members of the administration of Gov. Mike Dunleavy are contradicting a coalition of major business and industry groups on how urgently the Legislature must adopt a $70 million funding request to secure federal transportation projects.

(My comment: I’m not interested in what a Commissioner thinks. If Alaska jobs and companies are at risk of closing due to an ill-advised veto by the Governor and state government ineptitude, we need to act to correct this now.)

 

Opinion: Fixing Alaska’s revolving door requires reality, not rhetoric - ADN

The most urgent cost of our current instability is the erosion of public safety. Alaska has become a subsidized training ground for the Pacific Northwest. We spend hundreds of thousands of dollars to recruit and train Alaska State Troopers, police officers and firefighters, only to watch them vest their minimal benefits and move to departments in Washington or Oregon that offer the retirement security Alaska lacks. When we lose a veteran officer, we lose decades of investigative experience and community trust that cannot be replaced by a sign-on bonus.

 

 

Things That I Found Interesting

When America considered trading part of Alaska for Greenland. ADN

Alaska and Greenland first crossed paths within the expansionist mind of Secretary of State William Seward. In 1867, the same year he negotiated the purchase of Alaska from Russia, he also initiated discussions with Denmark to purchase the Caribbean islands of St. Thomas and St. John. Former Treasury Secretary Robert J. Walker suggested the talks expand to include Greenland and Iceland.

(My comment: This is a fascinating, little-known history.)

 

Arctic

Opinion: Empire building or energy security? Trump’s Greenland fixation misses what Alaska has to offer. ADN

 

Russian and Chinese Threats to Greenland and the New Artic Sea Routes Are Low. USNI

Many arguments have been put forward regarding the imperative for the United States to control Greenland for its national security. Such arguments are not all outlandish and have a firm basis in both history and geography. It should be sufficient to simply recall the island’s crucial role in U.S. military operations during World War II, both to win the Battle of the Atlantic and to transfer massive fighting power safely to Europe.

 

‘Harm against our family’: Alaska’s Indigenous leaders call for solidarity with Greenlanders amid Trump’s threats Northern Journal

 

Economy

Legislature votes against overriding Gov. Dunleavy’s veto of revenue bill. ADN

Alaska lawmakers fail to override Dunleavy’s veto of corporate income tax bill. Alaska Public Media

 

The Sunday Minefield. Landmine

One of the largest concerns in the supplemental is the $70 million that Dunleavy vetoed for transportation projects. They $70 million, if approved, is matched by $700 million in federal highway funds. Dunleavy vetoed it due to what he said were funding source issues, but then he put the money back in his supplemental request. The construction industry is saying if the money is not approved soon, the summer construction season could be in jeopardy. 

 

The new bet against Trump Axios

Countries that used to hold their cash in dollars or Treasuries are looking to diversify away from the U.S. Central banks own more gold than U.S. Treasuries for the first time in 30 years as of October. The trend has continued into 2026. Increasing geopolitical risks — a trend partially driven by Trump — are also contributing to the spike in gold.

 

Consumer confidence plunges Axios

The steep drop was seen across both survey respondents' assessment of the present situation and their expectations for the future. The index is now below even its level at the depths of the global pandemic, when unemployment peaked at nearly 15% (it was only 4.4% in December).

 

Education

Nonprofit’s marketing effort aims to bring Lower 48 teachers to Alaska. ADN

A nonprofit organization has launched a marketing campaign intended to attract educators to Alaska from the Lower 48 in order to quell a statewide teacher shortage. The advertisements are being directed at potential applicants — primarily from northern states — through YouTube and other social media platforms.

 

School districts file lawsuit saying Alaska has failed to adequately fund education. Alaska Beacon

Aguillard spoke by phone Wednesday, as she was managing the evacuation of around 50 students from the Aniak Jr. Sr. High School due to a roof failure earlier this week. It’s one of many severe school facilities issues facing the Kuspuk School District, and other districts around the state. The estimated cost of deferred maintenance is over $400 million in the Fairbanks North Star Borough School District, the other plaintiff in the case, said Frank Meinert, its superintendent. That is all while grappling with budget shortfalls, difficulty maintaining teachers and growing class sizes, he said. 

 

State education board OKs UAA program aimed at tackling school psychologist shortage Alaska Public Media

The State Board of Education and Early Development unanimously approved a school psychology master’s program at the University of Alaska Anchorage aimed to address the state’s shortage of school psychologists. The approval took place during the board’s special virtual meeting on Thursday. This comes after the board voted it down last October after some members brought up concerns about mentions of social justice in a sample syllabus.

(My comment: Good that the state school board came to their senses. These services are needed and these clinician are in short supply. Some people advocate that AI can be the counselor; that’s been tried with occasionally deadly results.)

 

 

Energy

Gas storage expansion projects could buy ‘breathing room’ for Southcentral utilities. Alaska Public Media

 

Japanese Energy Companies Step UP U.S. Investments CSIS

Japan’s appetite for gas continues to set the tone for strategic engagements with the U.S. Tokyo’s latest trade commitments to Washington include “stable and long-term incremental purchases of U.S. energy, including LNG, totaling $7 billion per year, while exploring a new Alaska offtake agreement for such LNG.” But Japanese companies may be demonstrating a cautious approach in differentiating between gas investments in the Lower 48 versus Alaska LNG, with its extremely challenging project economics.

 

State investigation confirms oil company wasted four months of natural gas on North Slope Alaska Beacon

The state agency that protects Alaska’s state-owned oil and gas from waste confirmed Friday that a small North Slope company deliberately burned off state-owned natural gas for almost four months because reinjecting the gas was inconvenient for the company.

 

 

Politics

Alaska Reports state police conducted no phone wiretaps in 2025. Alaska Beacon

Alaska judges approved no police wiretaps of phone lines in 2025, the Alaska Department of Law disclosed in a legally required annual report this month.

 

Alaska lawmakers seek details on 11th Airborne Division’s possible deployment to Minneapolis. ADN

Gray said lawmakers are drafting a letter to federal officials seeking answers to basic questions about the prospective deployment of Alaska-based forces to an American city, which was first reported over the weekend. Those kinds of issues fall outside the normal remit of the Legislature.

 

Opinion: Alaska deserves an attorney general who pursues justice, not Lower 48 headlines. ADN

 

'Our government is out of control,' Alaska legislator says, calling for end to state aid for ICE. Alaska Beacon

"The facts are that our government is out of control. Norms have been broken at an alarming rate, and the world is watching us in shock,"

 

New lawsuit claims Alaska’s description of a proposed elections ballot measure is biased. Alaska Beacon

“The proposed measure (24ESEG) would not ‘restore,’ ‘bring back,’ or add even a single campaign finance rule to Alaska’s statutes,” the suit states. “Rather, 24ESEG would fully repeal a litany of campaign finance disclosure requirements, and eliminate enhanced fines.”

 

Crum deviated from state law and policy when investing Alaska’s savings, review finds. AKPub

“Mr. Crum’s process for selecting the DigitalBridge fund and the two other private funds in which he intended to invest did not involve rigorous due diligence, and Mr. Crum did not follow Department of Revenue protocols designed to assist him in meeting his fiduciary duties in connection with the investment,” the report states.

 

Murkowski condemns Noem and ICE actions: ‘I think it is probably time for her to step down' Alaska Beacon

“Accountability goes all the way to the top, and I think you have a secretary right now that needs to be accountable to the chaos and in some of the tragedy that we have seen.”

 

Health Care

PODCAST: Rural health funds Talk to Alaska

Improving health outcomes for Alaskans is at the heart of a multi-billion dollar federal plan aimed at improving rural healthcare systems. Alaska is in line to receive as much as 1.3 billion dollars over 5 years. What will the funding support-- and what do state health officials think Alaska’s healthcare system needs to help all Alaskans have healthier lives? We’ll learn about the Rural Health Transformation program on this Talk of Alaska.

(My comment: This is a huge amount of money coming into our Dept of Health. This Dept is flagged every single year for errors or inadequate reporting of federal money utilization. I’m concerned about our capacity to appropriately manage this amount of money, and whether the money will be wasted. Can we maintain programs started with all this money, after the money is gone?)

 

US State-Level Prevalence of Adult Obesity by Race and Ethnicity from 1990 to 2022 and Forecasted to 2035 JAMA

This cross-sectional analysis estimated that in 1990, 19.3% of the US adult population were living with obesity; by 2022, this had increased to 42.5%. By 2035, this was forecasted to increase to 46.9%. There was substantial variation by state and race and ethnicity group, indicating large disparities in obesity prevalence.

(My comment: Alaskans are gaining weight which increases multiple diseases, which increases health costs. We control our weight ourselves; let’s do that)

 

 

Alaska History

 

·     1989, Jan 31 - record North American high pressure of 31.85 inches of mercury in Northway, Alaska

 

 

Alaska Resource Values

 

Alaska North Slope crude oil price (1/27/26): $67.06

The Dept of Revenue Tax Division previously updated the ANS price every evening after 5 PM.

They have stopped doing that. The above price is a week old, as you can see.

FY26 budget (beginning 7/1/25) is fully funded at

$64/barrel of oil.



History of prices:

12/17/25: $60.06

9/2024: $63.63

9/30/23: $87.99

9/30/22: $86.91

6/29/22: $116.84

3/08/22: $125.44

12/22/21: $75.55

March 2020: $12.29

7/3/2008: $144.00

ANS production (1/27/26): 476,035 bpd


Alaska LNG nets nonbinding partnership from Greek shipping company KDLL

Cook Inlet could welcome Greek traffic in the form of liquefied natural gas shipping containers if a new Alaska LNG Project partnership comes to fruition. The owner and developer of the gas line megaproject announced Tuesday it will partner with Danaos Shipping Company Limited to ferry liquefied natural gas out of a planned liquefaction facility in Nikiski. The partnership is not a binding agreement and comes ahead of Glenfarne Group’s go or no-go development decision on the Alaska LNG Project.

 

Opinion: Exploitation under the guise of Alaska development ADN

“The story of Alaska natural resources,” Bartlett told the delegates, “has too often been one of exploitation with very little of the great wealth extracted going to pay for necessary governmental services and for the permanent development of a sound economy for the people.”

 

 

Precious Metal Prices

January 21, 2026

Gold - $5,513.04

Silver - $118.45

Platinum - $2712.30

Copper - $6.01

Palladium - $2067.19

Rhodium - $10850.00

 

Alaska Permanent Fund

website

The projected payment to the state General Fund for upcoming Fiscal Year 2027, under the Percent-of-Market-Value (POMV) formula, is to be $4 billion, up from $3.8 billion for FY 2025, the current year.

 

The Fund’s rate of return over five years has been 9.54%

• For the first three months of the FY 2026 fiscal year, or July 1 through September 30, the Fund had $2.21 billion in “statutory net income.” 

 

Fund value January 27, 2026 - $88,909,700,000

 

PFD payout from ERA, Fiscal years 1982-2025: about $33 billion

Over $100 billion total earnings over lifetime of the Permanent Fund

 

 

Feedback is always welcome.

Have a great week!

 

Cathy 

 

Personal Contact:

907.465.4843

sen.cathy.giessel@akleg.gov

 

Past Newsletters on my website



My Staff:

·     Chief of Staff: Jane Conway (from Soldotna)

·     Legislation Aide: Paige Brown (from Anchorage/Girdwood)

·     Resources Committee Staff: Inti Harbison (from Anchorage)

·     Office Manager: Samantha Freeborn (from Anchorage)

·     Intern this session: Ben Goltz (from Anchorage, student at Dartmouth College)

 

Copyright © 2026. All Rights Reserved.

 

 

 

Senator Cathy Giessel's Newsletter | 12701 Ridgewood Rd | Anchorage, AK 99516 US