Chugach Electric cancels Snow River project

Chugach Electric Association has cancelled its project for the development of a new hydroelectric facility on the Snow River on the Kenai Peninsula. Snow River flows into Kenai Lake through the mountains on the east side of the Seward Highway. The 70.9-megawatt powerhouse would have required the construction of a dam on the river and the formation of a 15-mile long reservoir.

Chugach Electric had seen the project as a means of further diversifying its power supplies into sustainable energy sources. But the proposal at Snow River met with a barrage of opposition from people concerned about the potential impacts of the project on the Snow River area and on the Kenai River watershed. So, after meetings with government and non-government agencies, and after holding two public meetings, the utility has decided to call it quits on the project.

“As a member-owned cooperative that values the opinions of Alaskans and the communities we serve, we have decided to end the Snow River study,” said Chugach Electric CEO Lee Thibert on April 20. “We are committed to sustainable energy, but we’ve heard from many Alaskans who do not want us to study this option, and we appreciate and respond to those voices and concerns.”

Among the many comments received on the Snow River proposal, Kenai River Watershed Foundation questioned the potential impact of the project on fishery resources in the river system.

“Adding new hydroelectric facilities to the Kenai River watershed represents high ecological risk to the integrity of world-class Kenai River fisheries, and economic risk to the entire Kenai Peninsula and Southcentral Alaska,” KRWF said in comments to the Federal Energy Regulatory Commission regarding Chugach Electric’s application for a FERC license for the project. The Susitna River Coalition told the commission that non-power use of the project area, including fish spawning and recreational use, is more important than the use of the area for power generation. The Resurrection Bay Conservation Alliance told FERC that the area is commonly used for activities such as hiking, skiing, snow machining and moose hunting.

- ALAN BAILEY