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Session: State Capitol, Room 434 Juneau, AK 99801-1182 Phone: (907) 465-2487 Fax: (907) 465-4956 Send E-Mail Interim: 112 Mill Bay Road Kodiak, AK 99615 Phone: (907) 486-8872 Fax: (907) 486-5264 (at LIO) |
Sale of Four Dam Pool
Proposing recommendations concerning the sale of the Four Dam Pool hydroelectric facilities.
Updated: April 27, 1999
The State of Alaska acquired land and constructed four hydroelectric facilities in the mid 1980's. These projects are commonly referred to as the Four Dam Pool. The Alaska Energy Authority (AEA) owns these projects and is a party to a 40-year power sales agreement with local utilities serving the communities of Copper Center, Glennallen, Ketchikan, Kodiak, Petersburg, Port Lions, Valdez, and Wrangell.
Through AEA, the State of Alaska retains significant liabilities relating to these power projects because of the power sales agreement. These liabilities include responsibility for uninsured facility failure, substandard performance, deficiencies in the reserve and replacement fund and loss of power sales.
The adoption of House Concurrent Resolution 10 will request the AEA to divest itself of its interest in the Four Dam Pool.
This will be accomplished by preparing a request for proposals (RFP's) as soon as practicable for the sale of the power projects, open to the electric utilities in the communities served by the Four Dam Pool or to a consortium of electric utilities in those communities.
The terms of the RFP's will assure that the state receives a fair market value for the power projects and that the power projects will continue to provide adequate power to the respective communities.