Mining News: News Nuggets: Cleaner, cheaper electricity could be coming to Kensington

The Alaska House of Representatives March 28 unanimously passed legislation that paves the way for more affordable energy in Southeast Alaska. House Bill 143, introduced by Rep. Cathy Muñoz, R-Juneau, authorizes the Alaska Industrial Development and Export Authority to issue conduit bonds in order to finance a hydroelectric project at Sweetheart Lake, roughly 43 miles south of Juneau. “Affordable energy is a keystone of a healthy and sustainable economy,” Muñoz explained “This bill would create jobs, provide clean, effective and affordable energy, and diversify our economy by helping to offset the high energy costs to industries such as mining and tourism.” The Sweetheart Lake hydroelectric project is expected to create more than 125 construction jobs, increase electrical generation by 25 percent, and displace an estimated 7000-9000 gallons of daily diesel fuel use at the Kensington Mine. The project also will supply power for the proposed Juneau district heating project. The project calls for using saltwater heat pumps to heat downtown Juneau; effectively lowering the cost of heating and providing for more affordable housing in Juneau. AIDEA would need to complete suitability, feasibility and due diligence studies on the potential hydroelectric project prior to endorsing or financing it. HB 143 passed the House on a vote of 34-0 and now moves to the Alaska Senate for consideration.