Juneau -- Governor Tony Knowles has introduced legislation to sell the Four Dam Pool hydroelectric facilities to the communities they serve. Kodiak is served by the Terror Lake Project.

Towards the end of last session, Representative Alan Austerman (R-Kodiak) introduced HCR 10 proposing recommendations concerning the sale of these facilities. "It was apparent to me that the state was dragging its feet in negotiating the sale of the power projects," said Austerman. "The affected communities have wanted local control for a long time. I wanted to turn up the pressure a couple notches to get everybody's attention." The Alaska House helped last session by overwhelmingly passing this piece of legislation out and on to the Senate. From there all parties started negotiating seriously to make this deal possible.

The State of Alaska acquired land and constructed four hydroelectric facilities referred to as the Four Dam Pool in the early 1980's. They provide power to the communities of Copper Center, Glennallen, Ketchikan, Petersburg, Port Lions, Valdez, Wrangell and Kodiak.

Governor Knowles proposal would also use the sale price of $73 million for the projects to partially fund an endowment to fund the power cost equalization (PCE) program. These PCE subsidies reduce the rates of almost 200 rural communities across the state. Without these appropriations, the cost of power to many of these villages would be as much as five times the cost of bringing power to the urban areas. Any chance at economic development in the bush would be shackled by these high energy costs.

The legislature has already calendared a hearing for this bill in the time remaining for this session.

Attachments:

• Alaska Energy Authority summary of the Four Dam Pool
• Sponsor Statement for HCR 10

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