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Alaska plans to pursue major $4.5 billion dam project; would be highest built in US in decades

Posted: July 25, 2011 - 9:18pm  |  Updated: July 25, 2011 - 9:21pm

JUNEAU — Alaska is moving forward with what would be the highest dam built in the United States in decades, a $4.5 billion project aimed at helping meet the energy needs of the state’s most populous region.

Gov. Sean Parnell told a news conference in Anchorage Monday that completion of the 700-foot-high Susitna River dam is scheduled for 2023. But major hurdles must be overcome first, including securing the necessary permits and financing. State support is expected to be vital to the project’s prospects.

Officials say the dam, which would be located about halfway between Anchorage and Fairbanks, would help meet Alaska’s goal of having half its electricity generated from renewable energy sources by 2025. Parnell said the project would generate about 2.6 million megawatt hours of electricity a year. It would have a reservoir 39 miles long and up to 2 miles wide.

A similar proposal was tabled in the mid-1980s as the cost of other sources of electricity remained relatively cheap. But Parnell said hydropower has the capacity to create jobs and new opportunities and open up the economy just as other major infrastructure projects of the past, and even the Internet more recently, have. And he said it’s time to commit to this project, which he sees as part of a larger state energy package that also includes oil and natural gas development.

The Alaska Energy Authority, which is overseeing the project, is planning to file this fall a notice of intent with federal regulators, essentially letting them know the state is ready to move ahead.

“It’s time for Alaska to make the needed investment in renewables that we have in abundance, more than any state in this nation,” Parnell said.

Richard Leo believes the project is unnecessary, in part given the recently announced, larger-than-believed natural gas reserves in Cook Inlet that could be tapped to meet electricity demands for Anchorage and much of south-central Alaska.

Leo, who is with the newly formed Coalition for Susitna Dam Alternatives, said the dam has the potential to be “destructive on a massive scale,” citing among other things possible impacts on salmon runs and caribou habitat.

He chalks up the pursuit of the dam to “megalomania,” saying it’s the kind of legacy project for which many politicians would like to take credit.

Parnell said the dam project does not render moot the pursuit of an in-state gas pipeline, saying abundant energy creates opportunities and “you can never have too much opportunity.” A recent report suggested such an in-state pipeline could cost in the range of $7.5 billion, and the state would be expected to cover much, if not all, of the construction cost.

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Jo MacNamara
697
Points
Jo MacNamara 07/26/11 - 07:29 am
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Earthquakes

Is it near any earthquake zones? If not, I fully favor this, but the pricetag is suspicious.

It beats nuclear energy anyday.

akromper
-4
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akromper 07/26/11 - 08:36 am
0
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Cynical?

Does anyone question parnells sincerity to alternative energy? My suspicion is that his goal is to actually delay for the 6yrs of permitting+millions of dollars while pretending moving the gasline under AHFC and discarding the years of work ANGDA already put into it.
Why else would he have cut similar projects in the state budget earlier this year that have the same goal?
Electricity demands are going up. So is NG for heating homes. These aren't tough decisions. Go all in on one or the other and get something done, but TWO expensive stalling tactics for the better part of a decade is insanity.

madison89
1040
Points
madison89 07/26/11 - 08:31 am
0
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But PPkisser, you voted for

Unpublished

But PPkisser, you voted for BO. So YOUR judgment, & analysis is "suspicious".

gbaymuffin
11
Points
gbaymuffin 07/26/11 - 09:02 am
0
0

Price Tag

The price tag makes my heart skip a beat! Nation-wide, we are cutting social security for the elderly. Assumptions that we will get enormous funding packages for this dream will be short-lived. Jo has a good point about the earthquake zone! Also, is the area all state-owned land? I think that the governor should do a little public relations and inform the state rather than dropping a bomb in our laps! School funding needs millions if not billions....... Our public safety departments need more funding. We don't have enough coverage! I guess I just need to see the package to understand where he's coming from! Is he going to use the tie in to oil and gas just to get the support or is that truly a viable tie?

AKgasman
-4
Points
AKgasman 07/26/11 - 09:31 am
0
0

Governor Parnell intention is

Governor Parnell intention is to kill Susitna by constructing only a ½ Watana Dam rather than full Watana Dam as originally planned by the Army Corps of Engineers and approved by FERC.
Last time to delay Susitna they used a restudy of Chakachamna Lake hydro as foil to kill Susitna. Chakachamna had been studied in the 1950s with reports in 1961 and 1962. Chakachamna was fraught with too many unsolvable problems including fisheries so the Sierra Club turned to Susitna. Yep. Sierra Club advocating hydroelectric project, worthy of a book.
The Corps and FERC considered a ½ Watana back in the 1980’s, but the piece meal approach added $500,000,000 to the cost of the Susitna project so the Corps and FERC decided against the piece meal approach.
Now the ½ Watana piece meal approach adds at least $1 billion to the cost and a ten year delay plus $500 million in new engineering fees. All of which makes the Susitna project unfeasible or it will have to be State subsidized.
If the Susitna project were constructed the way the Corps designed it, FERC approved it and Susitna could stand on its own, was bondable and Susitna was under designed. Susitna should be given back to the Corps and let the Corps prepare and financial plan and restart the design of Susitna.
If Susitna were completed as designed by the Corps, Susitna could back out all of the gas fired powered generation in Cook Inlet and Conoco, Governor Parnell’s former employer, would lose ½ of Conoco’s Cook Inlet gas sales.
Had Susitna been constructed back in the 1980s and refinanced when interest rates were low, Susitna would now be producing power at $0.05 /kw. Politics, politics and back door deals.

tpmp64
92
Points
tpmp64 07/26/11 - 11:36 am
0
0

Billions

I find it amazing the way they toss dam billion$ around like they use to toss dam millions. I guess a million not worth much these days ..........

highflyer
516
Points
highflyer 07/26/11 - 02:58 pm
0
0

Wouldnt it be nice to have a

Wouldnt it be nice to have a Governor that we could actually trust, we need a change in leadership.

wren
873
Points
wren 07/27/11 - 06:13 am
0
0

highflyer...

Yes, but considering we're dumb enough to vote for liars, I mean lawyers, we get what we ask for.

AKgasman
-4
Points
AKgasman 07/27/11 - 10:40 am
0
0

Habitat

The canyon walls where water backs up behind the dams, Devil Canyon and Watana, are very steep, so there really not much loss of so called habitat.
The new habitat would be for fish and fishermen as well as boaters. What we have is just another self-anointed lying would be greenie who will say anything to mislead, deceive and obstruct.
That kind hurt meaningful conservation. Remember the Susitna Hydroelectric Project was sponsored by the Sierra Club back in 1960s and 1970s because Susitna was such a environmentally clean project. No earthquake faults either and no fish problems.

Again some ought to write a book on the how the Sierra Club sponsored Susitna.

akromper
-4
Points
akromper 07/27/11 - 11:04 am
0
0

PP comment

What did PP say?

swimmergirl
4371
Points
swimmergirl 07/27/11 - 11:41 am
0
0

and why is madison...

not lambasting this government expenditure, like he does all others? How is subsidizing electricity just for Anchorage and Wasilla on the state dime different than subsidizing mail service for all of us on the Fed dime?

swimmergirl
4371
Points
swimmergirl 07/27/11 - 11:50 am
0
0

wren - good one.

Lyers, lawyers......lol.

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