Chugach Electric pursuing hydro projects
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Kristen Nelson Petroleum News
Chugach Electric Association is pursuing hydroelectric projects as part of efforts to reduce reliance on natural gas and achieve decarbonization goals set by its board of directors. Chugach said in a Feb. 10 release that it is moving forward in investigation of potential Southcentral hydroelectric sites.
Preliminary permit applications with the Federal Energy Regulatory Commission and water right applications with the Alaska Department of Natural Resources were filed Feb. 6 for feasibility studies of four projects:
*Canyon Creek, run of river, expected capacity 6 megawatts;
*Godwin Creek, storage, expected capacity 16 megawatts;
*Boulder Creek, storage, expected capacity 12 megawatts; and
*Caribou Creek, storage, expected capacity 8 megawatts.
Preliminary steps give Chugach site priority, enabling engineering due diligence and outreach to groups potentially impacted by development.
Decarbonization goals use a baseline of 2012 and aim to reduce carbon intensity by at least 35% by 2030 and by at least 50% by 2040, without a material negative impact on rates or reliability.
Previous and upcoming work Chugach said it began initial site investigations more than 2 years ago, surveying 158 potential locations and developing an initial list of criteria for site selection, excluding any projects with dams or diversions on anadromous reaches.
Over the past six months Chugach has met with regulatory agencies, tribes, landowners and non-governmental organizations to discuss guiding principles and solicit input on site selection. The site selection criteria were revised, with the selected sites based on input from stakeholders.
"As we are all focused on the energy future of Alaska, we know hydro is dependable, is the lowest cost long-term energy source for ratepayers, allows us to reduce the need for fossil fuels, and helps us meet our decarbonation goals," said Chugach CEO Arthur Miller. "Our early outreach to potentially impacted stakeholders and partners has received a very positive response as Alaskans understand the need for future energy diversification and low-cost power."
Timeframe Miller said timing is important. Hydro projects take years to study and construct and there are significant investment tax credits available for projects which begin construction by Dec. 31, 2033.
"The runway is long and we need to move forward on the investigation of possible hydro projects. That's why we started months ago engaging with stakeholders," Miller said. "With the preliminary permits filed, we can continue to investigate how to minimize and mitigate impacts from potential projects, look for fatal flaws, and only move forward on projects that are economical, and benefit thousands of Alaskans."
The next step is a public comment period for each application.
Chugach said the goal for 2026 is to identify any fatal flaws with the proposed sites and remove those projects early, with remaining projects advanced through FERC licensing or the state permitting process for non-FERC jurisdictional projects.
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