Kake may get a road to its neighbor Petersburg, at a cost of $40 million, but the real benefit to the 557 residents of Kake may come from lower power rates.
Kake’s electric utility, Inside Passage Electric Co-op, wants to get the diesel-dependent city on Kupreanof Island onto hydropower.
“So many people have left town, but we’re hoping that with economic development people will come back,” she said.
One of the reasons they’ve been leaving, she said, is power rates of 60 cents a kilowatt-hour for unsubsidized and business customers.
To do that, IPEC General Manager Jodi Mitchell wants to connect Kake to the Southeast Alaska Power Agency, which provides hydropower to Petersburg, Ketchikan and Wrangell.
That intertie would be too expensive to build or maintain without a road, she said.
“We do know that intertie equals road, one way or another there’s got to be a road,” she said.
The Department of Transportation is in charge of building the road now that the funding has been approved, which may be done in conjunction with the Federal Highway Administration.
The road, for which the Legislature allocated the money last session, would run about 45 miles to connect Kake and Petersburg, which is already connected to the intertie.
It would likely follow logging roads for about half the way, according the department, though the route has yet to be decided.
A small shuttle ferry would connect the road to Mitkof Island, on which downtown Petersburg is located.
Transportation engineers are going to use the Environmental Impact Statement to decide between two likely routes, a northern and a southern one.
The southern route is more direct, but risks legal challenges because it would go through the Petersburg Creek-Duncan Salt Chuck Wilderness Area.
A legislative report says the northern route appears to make the most economic sense, and would also have the shortest channel crossing between the islands.
A separate but related EIS on the electric intertie is also underway, with both projects expected to use the same route, once it is chosen. That process is expected to take three years.
The eventual cost of power in Kake will be determined by how much the intertie costs, which will also depend on the route, Mitchell said.
“We are counting on a lot of state assistance,” she said.
Target price for power would be between 35 and 45 cents per kilowatt-hour, a substantial reduction but “still incredibly high,” Mitchell said.
Kake’s diesel generators will remain for backup or supplemental purposes.
The Legislature said the road would also improve transportation options for Kake. The Alaska Marine Highway serves both Kake and Petersburg, while Petersburg is also served by Alaska Airlines.
Transportation planners have also been seeking ways to simplify runs or reduce ferry costs, but Mike Neussl, deputy commissioner for marine operations, said the ferry system was years away from considering any changes.
Mitchell said she hoped the project would be done by 2015.
“I think that’s very optimistic, but that’s what we’re shooting for,” she said.
• Contact reporter Pat Forgey at 523-2250 or at patrick.forgey@juneauempire.com.
Comments (25)
Add commentWhy would it still be so
Why would it still be so expensive? I thought the point was to connect them to cheap power...
The math
$40 million divided by 547 people = $73,126 per person
I love Kake. It's a cool little town with nice people, but...will this investment ever pay back? And that $40 million doesn't include the large subsidies the intertie will likely get.
On the plus side, this is revenue coming into Southeast. And if it succeeds in increasing Kake's population, perhaps the population of Southeast will increase, to help win back some political clout.
Road access to Pburg should help reduce other expenses such as basic supplies and access to the Pburg airport.
It only gets more expensive if you wait...
Latitude, you ask if it will ever pay back. Transportation improvements ALWAYS pay back. You add a road and after a couple of years people can't imagine not having that access. Businesses use it, travelers use it, supplies come and go. Alaska is so young when it comes to infrastructure, we have to keep building new roads, new rail roads and new ferry terminals. We are not like the lower 48 that has been settled since 1849!
I am sure road access would
I am sure road access would make life much easier for many of the businesses in Kake, like oyster farmers, fishermen, etc. Can get your product to market without chartering a plane...
Seems over the top to me.
Seems over the top to me. We should invest this money where people are moving to.
40mil
sign me up to move there.. I will take my share of the pie... $718,132.85 for each person for power.. I will go off grid, just hand over the dough.
Kake
From what I understand, the state and IPEC would be on the hook for much of the project, which is why energy rates in Kake would remain in the 35-45 cent/kwh range, rather than dropping to the 10-12 cent/kwh that Juneau enjoys. One of the benefits of the project is at least energy rates would stabilize in Kake, rather than continuing to climb with the price of diesel.
Agreed, though. That's a pretty huge investment. Perhaps lower and stable energy prices could encourage fishermen and fish processing to return to Kake and slow down its trending urban migration?
watch
out for seacc Kake cause they're going to try and screw you.
I know a number of people
I know a number of people that moved to Kake to "get away from it all". And so why does the state and the rest of us have to step up and make sure they have cheap utility rates?
But I suspect there is more to this. Does anyone know if IPEC has shareholders?
Power companies are in the business to make money they are not out to provide cheap power out of the goodness of their hearts. Is IPEC wanting to provide power to mining operations? This is my first queston. I wonder because AELp utility co. sells power to Greens Creek.
The mining companies in SE are from out of state, and making huge profits, digging up our public resources. IPEC is a private utility co. and they are hoping for state (public) money to go towards road building in what is supposed to be a Roadless area. If I am right.
However, mining companies only pay a few hundred dollars to lease our public lands and then they own 100% of the non-renewable minerals they dig up. True story. Its because the Republicans in Congress voted against changing the 100+ year old mining law that allows this "give away" of public resources to mining corporations. This very old law was not intended for todays huge mining corporations it was intended to help families making a living as we expanded West.
thoughts
they could build it without paving the road. Most of the road is there already
Riddle me this,
Riddle me this, Mr. Senator Bert Stedman, 40 million dollars spent on a road to kake does nothing to get cheaper power. Let’s get serious with how are state money is being wasted.
Kake needs affordable power yes I agree. However a road does not get Kake this, it gets them a road. A road does not generate affordable power.
Bert Stedman who is the Co-chair of the Finance committee tacked this money on this year’s budget without public input. That shows that our State Senator does not care to represent the people of the district the way that he should, it’s about 40 million dollars away from it.
The real deal here is. That with this road in place it would alter the ferry system routes. The residents of Kupreanof, Petersburg and Wrangell would have to take a ferry departing from Kake to get to the capital. This means no more ferries making the trip down the Wrangell Narrows. So if you live in Wrangell and want to get to the Juneau by ferry you will have to take a ferry to Mitkof island drive 20 miles then take another ferry to Kupreanof Island drive 45 miles to Kake take another ferry to Juneau.
So that is three ferries, 65 miles of driving just to get to Juneau all for the sake of affordable power for 600 people.
Mr. Senator Stedman thanks for making it easier for people to move around here in Southeast. Bottom line is that a road to Kake is a bad idea,
simpleton & conner
Not to many springs ago everyone was panicked about their electric bills after a avalanche wiped out our hydro power. To now equate another towns high costs & needs with corporate greed shows why most think juneauites are no more than self-serving snobs.
food for thought
food for thought
sad
argument simple, by your reasoning government shouldn't have built the overpass in Juno. I agree it can & will have long term maintenance costs but what doesn't? & As with the proposed Juneau access road if not built sooner it'll cost more to build later. Roads are good boats cost way too much.
It's much more than 40 million
It's much more than $40M that's just for the pioneer road add another $40M for the electrical transmission lines and then add for the ferry link to Petersburg and the crew and fuel to run it. not to mention the plowing and maintenance of the road year round. And of course the o&m of the transmission lines themselves. We are talking big bucks here. A transmission line along existing forest service roads between Kake and Petersburg would be much less expensive...
Sure are...
...a lot of brand new people commenting on this subject. And all of the comments sound suspiciously alike...hmmm.
Honestly I grew up in Kake
Honestly I grew up in Kake from 94-2008. I loved it there but I'm 25 now and jobs are hard to get there now. But alot of good comes from the locals there. The berry picking. The berries are sold to a company and made into medicine. You have oyster farms. There's alot of little things that Kake has to offer but can't be made into much more due to everything has to be flown out on a plane which a small box costs 11 dollars. Or the ferry which is just as spendy. Everything is barged in from down south. Maybe this way building a road or expanding the logging roads from Kake to Petersburg isnt so much as just helping cut down electric costs but think to the bigger picture. For instance things can be flown into Petersburg and trucked to Kake instead. Things can be sent from the oyster farm and other small businesses out on ak air and pay lower fees and broaden the cliental a bit making more money. So by building the roads that's giving so many people the jobs they need. Giving jobs that are needed means more money to people meaning more money back into the economy. So why are you people so worried about 4 million or how ever much the article says . Look at the construction they just did in front of fred Meyer for what it looks freshly paved no difference people will still be stupid and crash. But it gave people jobs. Isn't that what it's about these days make sure people have money that way we can stablize this economy.??
The road isn't just for Kake
The road isn't just for Kake and it's citizens. The road is for everyone who will use it and that includes Petersburg (it goes both ways you know). It will also be utilized heavily by the Forest Service and commercial interests. Kake may well grow as a result. It is situated quite nicely for future growth.
What I don't get is why the other routes aren't really being considered. There are several that do not go through the wilderness area (one from Tonka across Duncan, and a South Island one). Does it really matter if the ferry, that wont soon be built, crosses a quarter mile or a half mile? The costs are so less relevant on water than building on land.
I am supportive of the Tonka route that would best open the center of Kupreanof Island. Either way I support the road.
If this road were a part of a
If this road were a part of a timber sale nobody would bat an eyelash.
Why can't private business
Why can't private business operate a ferry system better than the state? The state has to cave to limited non-recompensing interests when managing the ferry schedule. Private business is scalable, replaceable and responsive to economics.
It makes all the sense in the world for the state to build the access roads discussed in the new ferry plan if nothing else as a contingency for catastrophic failure of system components. Most of the roads are already partly built. If planned in cooperation with timber sales the Feds can foot much of the bill. What if fuel prices ever really sky-rocket? Will the state be willing to subsidize the ferry system then?
Doing so opens up land and resources, provides more opportunity, and redundancy for what we already have.
I am all for it. Southeast is littered with old derelict canneries and fur farms, mine sites and abandoned homesteads. Developing these areas isn't cutting new trail, It is simply recovering what has been taken from us by the slow creep of environmental policy.
It does run both ways
It takes me 8-10 hours underway to get from Kake to Petersburg, and then back again - 2 days out of the game to get diesel and whatever else there is that REALLY compelled the trip, because the cheaper fuel doesnt make up for the loss of time and engine wear. The road will provide options-- both ways, and will no doubt benefit Kake, which is a fantastic community, and an awesome location to base out of. I would guess a number of P'burg boats would change homeport based on access.
For the record, Petersburg
For the record, Petersburg residents will use this road far more than Kake residents. For one thing much of the Kake side has already been built. For another Petersburg uses all surrounding roads heavily for hunting, recreation such as camping, photography, kayaking access points, fishing, winter sports, firewood and free use cutting, berry picking, skiing etc...
The road will be heavily used by Petersburg residents.
It will also connect the communities socially and economically. I know of a family that lives in Kake that would travel to Petersburg often for social reasons. Economic partnerships would likewise be easily formed.
The Petersburg Borough Charter proved that these two communities are not communicating. It's time to end the standoff that started before the USS Saginaw shelled Kake in 1869.
Let's do something right for a change.
Kake-Psg road - Separating the leafs from the berries?
Kudos to Senators Bert Stedman, Al Kookesh and Governor Parnell on this road link funding. I understand both are taking credit for it. I was surprised this funding survived a gubernatorial veto. Just when one thinks that all is hopeless! It took courage by Senator Stedman to support this, when he knew it might hurt him politically in Petersburg. I laud Bert for taking a stand for what he believes in -- that is leadership.
And kudos also to those with the positive and negative comments. A good discussion of issues is what these proposals merit.
Good points southeast food. Electric rates (and shipping) rates will come down and will get lower in the future with an interconnection - they won't come down in the absence of such connections.
conner, that is nice people have moved to Kake to get away from it all. Nonetheless, many Kake families have been moving out of there and other IPEC communities because the price of power is killing the communities. They'd like to remain but are being starved out by high prices. And what a paradox, these town are surrounded by huge renewable energy resources, but they can't be harnessed due to insufficient economies of scale. I've got news which isn't new, economies of scale come from interconnections to other markets. This will be the legacy of these interconnections - not the seemingly high upfront costs we see today.
IPEC is a cooperative so every resident who buys electricity is a member - so it isn't a private profit making utility per se. And what mining operations are occurring near Kake? A red-herring I think. None at present, do you know of some that are proposed? So how are the issues of an old mining law an issue here? Throw enough mud and some will stick perhaps?
simple thoughts - hey I like the idea of tidal generators, please see the earlier comment on economies of scale. No economic tidal generation in the absence of an interconnection to markets. And of which river system in Kake are you referring for potential generation? Local generation has been examined and found inadequate.
kupreanof life, interesting projection about how this road will unfold. Have a look at Norway's transportation system. The mainline ferries, Hurtigruten, still operates the coastal route, notwithstanding Norway's expanded road system. Your comments seem purely speculative and appear an attempt to incite fear of change.
simple thoughts, please get a history lesson. Snettisham and it's transmission system were built by the federal government - can you understand subsidy? Then it was purchased by AIDEA, don't know that acronym? Look it up. Another state agency and subsidy, so you can see Juneau has had its share of subsidies by the fed and state. Just as have Ketchikan, Wrangell, Petersburg and Sitka along with many POW Island towns. So why not the same for Kake, Angoon, Hoonah and Klukwan?
alaskanguy, the favored northern route has a great deal of forest service right-of-way on it. Just a few links and the road network is connected as well.
Adt1987, great comments and observations - congratulations and thanks for the insightful comments.
Lodestar, good comments. Two ferry crossings is the issue with the more southerly route or routes. Ongoing costs to the state makes this problematic. Love your last comment on Petersburg. The towns are much closer culturally than when Petersburg was founded. Today there are many blood and friendship ties between the towns notwithstanding the cultural conflicts and misunderstandings of the past.
Lodestar, one comment about
Lodestar, one comment about your most recent one. Deer in Petersburg have been quite plentiful, so from what I understand there won't be much need for Petersburg folks to go to Kupreanof Island for them. It may be Kake residents will find hunting on Mitkof Island to their benefit at times. Certainly, there will be a lot of exploration which happens on the island, much like folks do when they hit Prince of Wales Island.
I don't know what the moose population has done on Kupreanof, but with the logging that has occurred it may well be there are moose if not elk on that island as well as deer.
There already is marine/road access from Mitkof to Kupreanof, all that it takes is ferrying a boat across Wrangell Narrows. Then again ferrying across Duncan Canal to access the Kake road system, although I can't say for certain because I've not been in that part of Duncan since I was a youngster.