Summer fire on Kenai Peninsula expected to add to electric costs

Kristen Nelson

Petroleum News

Chugach Electric Association said Sept. 23 that its members can expect rate increases due to this summer’s wildfires on the Kenai Peninsula. The cooperative said the Swan Lake Fire damaged the transmission line connecting the Bradley Lake Hydroelectric Project to the Chugach Electric system.

Alaska’s Energy Desk at Alaska Public Media reported Sept. 3 that transmission lines from Bradley Lake had been shut off in mid-August due to the fires and Golden Valley Electric Association Chief Executive Cory Borgeson told Alaska’s Energy Desk he was concerned the lines may not be fixed until next summer.

Chugach Electric said Sept. 23 that the transmission line has been out of service for several weeks at the request of crews fighting the fire, which has burned more than 167,000 acres.

“Because of the loss of access to Bradley Lake power, more natural gas is being used and will continue to be until the line is repaired and back in service,” Chugach Electric said. The cooperative is estimating increases of between 3 and 6% in members’ bills because Bradley Lake power usually makes up about 10% of its power supply requirements and natural gas is a more expensive power source.

“We want our members to have notice that they will see rates increase as a result of this fire due to damage to the transmission line that connects Chugach to the Bradley Lake Hydroelectric Project,” said Chugach Electric CEO Lee Thibert. “This is a case of natural disaster impacting the power grid, and we will continue to work with fire managers and our neighboring utilities to find out when it’s safe to go in and assess the damage and make a plan for repairs,” he said.

Chugach Electric said Alaska Wildland Fire Information says the Swan Lake Fire is 68% contained, but there are still hot spots that have prevented ground crews from getting in to do a full damage assessment along the transmission line, although more than 60 poles and associated structures were found to be damaged in a recent aerial survey.

Bradley Lake, the largest of nearly 50 operating utility-scale hydroelectric projects in Alaska, produces from 5-10% of the Railbelt’s energy needs. Chugach Electric said damaged power lines connect the Bradley Lake project with Anchorage, the Matanuska and Susitna valleys and Fairbanks.

Power from Bradley lake is used by Chugach Electric, the City of Seward, Homer Electric Association, Municipal Light & Power, Matanuska Electric Association and GVEA.

The cooperative said that Homer Electric is still receiving power from Bradley Lake because its service area is south of the damaged line section.

- KRISTEN NELSON