Commercial Pot Growers Paid GVEA More Than a Half-million Dollars Over the Past Year

Sep 21, 2017

The commercial marijuana industry is increasing demand for electricity in the Interior. Golden Valley Electric Association membership includes 47 licensed marijuana growers, who paid the co-op more than a half-million dollars for power over the past year.

Figures released this week by Golden Valley show a steady month-to-month growth in revenues from commercial marijuana cultivators who do business in the GVEA service area. The growers paid a total of about $7,600 in August 2016; and by last month, their payments had grown to a total of  just over $92,000.


“Golden Valley has seen a continuous increase in the amount of kilowatt hours used by marijuana-grow operations,” Golden Valley President and CEO Cory Borgeson said. “And dollar-wise, the amount of revenues coming in from those growers has increased as well.”

Borgeson says some of the operations are sizeable and require industrial-scale components to handle the amount of electricity needed to run grow lights and maintain climate control.

“Many times, the customers will need to come in with engineer’s reports, because they’re fairly large loads and they take fairly large transformers,” he said.

Marijuana plants under cultivation at Nathan Davis's facility in Fairbanks. He's one of GVEA's 47 commercial marijuana-growing members who paid GVEA a total of $551,766 from August 2016 through August 2017, for a total of more than 2.6 megawatt-hours of electricity.
Credit Green Life Supply AK

Fairbanks grower Nathan Davis says that’s true – and that’s why he worked with an engineer from the very beginning, when he was first planning his 21,000-square-foot growing operation located in an industrial area on the city’s south side.

“You don’t build a facility of this size without have an engineering firm involved,” Davis said. “So, we had our ducks in a row – we knew what size transformers we needed, and we knew what they wanted from us and we provided it.”

Davis says he uses energy-saving technology when he can, like the LED fixtures that comprise about a quarter of his 300 growing lights. But he still runs up a hefty monthly light bill.

“We’re running at full capacity at our facility right now,” he said. “And our monthly power bill comes in just under $20,000.”

Borgeson says the co-op tracks the growers’ electricity use, based on the information they provide when they apply for service. And he says GVEA knows if the growers have been licensed. That information is readily available on the state Marijuana Control Board’s website. And Borgeson says so far the growers have been good customers.

“We’ve had no problems or any issues with our marijuana growers,” he said.

Borgeson talked about the revenue from pot growers during last month’s GVEA Board of Directors meeting. He provided a spreadsheet of those earnings over the past year upon request by KUAC.