Susitna-Watana proposes new FERC schedule

The Alaska Energy Authority has asked the Federal Energy Regulatory Commission to approve a new schedule for preparing a FERC license application for a proposed major hydropower plant at Watana on the Susitna River. The original schedule for the application has been disrupted by issues relating to state funding for the project, which, if completed, could support around half of the Alaska Railbelt’s electricity demand.

In December 2014, faced with a substantial budget shortfall as a result of low oil prices, Gov. Bill Walker’s administration placed a freeze on further project funding. However, in July the administration lifted that freeze by authorizing the use of the remaining $6.6 million of the original $192 million in state funds appropriated for the project. AEA officials have said that $105 million are required to complete a series of environmental and other studies required for the FERC application, and that the budget shortfall has been delaying progress in conducting the studies.

AEA has told FERC that it plans to use the remaining project funds to complete and file reports on studies conducted in 2014, and to resume public meetings on the reports in February 2016. That should enable FERC, by late August 2016, to complete a review of the work done to date. The FERC review is a major milestone in the license application process.

In early August Wayne Dyok, manager of the Susitna-Watana project, told the AEA board that the project’s funding shortfall is likely to delay the completion of the FERC application by two years, from 2019 to 2021.

- ALAN BAILEY