[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6551629,"mediaKeyId","5331045-cf4d70f4a6717fb30018e923d28c41a9","parentId",5331045,"title","SEPA says third-turbine funding largely in place; June 21 outage under investigation","audioSeconds",116,"startMs",1573000,"endMs",1689000,"viewUrl","/Search/View?dp=1&key=5331045-cf4d70f4a6717fb30018e923d28c41a9&start=1573&end=1689","thumbnailUrl","https://assets.pipeline.soar.com/5331045-cf4d70f4a6717fb30018e923d28c41a9/thumbnail_1573000.jpg","articleUrl","/articles/6551629/Petersburg-Borough/Alaska/SEPA-says-third-turbine-funding-largely-in-place-June-21-outage-under-investigation","mediaUrl","https://secure.pipeline.soar.com/6551629-38da0b60f427d1bd65186dd9f05f93ac/orig.mp4?Expires=1776491611&Signature=ErggS5LuGStwByM79ZlVYjVGFZvL5d8Lt35TKd6vWt9vtwqYzCBAgQm-84xTTtC5N8ZaPn68kLMBkrs57jUTMlPnZJXnlcSbKILkaL6xCPjO6ZwgpeNavkvPvU6BSFjA4WiCyNyVHedZZDdMCpNrtB8mjXp0gMTnwdD4XpYe0Kcnfe8FBSD4D1BZliN-N6tAe6uuSsSjRO1NWZ63PI21Adjrzx7V92VbQBPf0IW0nWZALemmu-odtxOJZf4v1vDMBXyCv~mjkBKOIvVqPWo~cdSDueSbBV9dkMHisVDw6gqFpTJbiUHLKS1r6GxwJw-3e~b~CUL4xdu~NgnVWWb5PA__&Key-Pair-Id=KUT5TJCACFTXG","author","Petersburg Borough","date","2025-07-08T20:49:38Z","article","SEPA (Southeast Alaska Power Agency) board chair and Assembly Member Lynn reported to the Petersburg Borough Assembly on July 7 that SEPA has advanced funding and procurement steps for a proposed third turbine at the Tyee project and is investigating a June 21 system outage triggered by an oil-level alarm in a generator bearing.

Lynn said the total estimated cost for the third turbine is $24,000,000. Secured funding includes a Department of Energy Section 247 grant of $5,000,000 and a Renewed Energy Fund Round 17 grant of $4,000,000 (total secured $9,000,000). Lynn said additional but not yet secured funding sources include $4,500,000 in congressionally directed spending being evaluated through Senator Murkowski’s office and an estimated $12,000,000 federal investment tax credit cash-equivalent; if those commitments materialize, the project would be fully funded without raising customer rates.

SEPA staff negotiated with Canyon Industries (Washington) on equipment procurement; an initial $12,900,000 bid was reduced in negotiation and the board approved a lump-sum contract for $11,900,000 for the turbine generator and transformer procurement.

On system reliability, Lynn reported that the June 21 outage was caused by an oil-level alarm in one generator bearing. The alarm is a protective measure; SEPA has confirmed no water intrusion into the bearing occurred. Lynn said the outage behavior was unexpected: because system loads among the three interconnected communities (Wrangell, Ketchikan and Petersburg) were low, only a single turbine was running and when that turbine tripped the whole system went down instead of another turbine picking up the load. SEPA is still investigating why the expected load pickup did not occur.

Why this matters: the third turbine project is a major capital investment for SEPA that affects generation capacity and long-term rates. The June 21 outage highlights operational risk and is prompting review of protective systems and dispatch strategy to avoid a single-point failure leading to multi-community outages.

What SEPA reported in detail

- Project cost and funding: Total estimated cost $24,000,000. Secured: DOE Section 247 grant $5,000,000; Renewed Energy Fund Round 17 grant $4,000,000. Unsecured/promised: $4,500,000 congressional directed spending under review; $12,000,000 federal investment tax credit cash-equivalent being anticipated.

- Procurement: Board approved negotiation and contract with Canyon Industries for a lump-sum of $11,900,000 for turbine generator and transformer procurement after staff negotiations that Lynn said saved about $1,000,000 from the initial bid.

- Outage: June 21 outage initiated by an oil-level alarm in a generator bearing; alarm functioned as intended to protect bearings. SEPA confirmed no water intrusion into bearings and said staff continue to investigate why automatic load pickup between turbines did not occur.

Assembly members asked questions about reservoir levels (reported as sufficient; one reservoir at a seasonal record and the other about 90% full) and whether the license amendment for a third turbine would be approved; Lynn said FERC review is progressing and she expected approval this year given the comment-response cycle was complete.

Ending: SEPA will continue negotiating equipment procurement and pursuing the remaining funding pieces; investigations into the June 21 outage are ongoing and SEPA staff will report updates as they become available to the board and member communities.","mediaType","Video","parentTitle","7 7 2025 Assembly Meeting","oneSentenceSummary","Southeast Alaska Power Agency (SEPA) reported that funding for a third turbine at the Tyee project is substantially secured though some amounts remain promised but not yet in hand; SEPA also described a June 21 outage triggered by an oil-level alarm that is under review.","taxTitle","Petersburg Borough, Alaska","taxId",14865,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6551633,"Petersburg Borough Assembly approves budget changes, rezoning and utility contracts; rejects cruise-dock drawing spending",602,2709000,3311000,"/Search/View?dp=1&key=5331045-cf4d70f4a6717fb30018e923d28c41a9&start=2709&end=3311","https://assets.pipeline.soar.com/5331045-cf4d70f4a6717fb30018e923d28c41a9/thumbnail_2709000.jpg","/articles/6551633/Petersburg-Borough/Alaska/Petersburg-Borough-Assembly-approves-budget-changes-rezoning-and-utility-contracts-rejects-cruise-dock-drawing-spending","https://secure.pipeline.soar.com/6551633-f3bdb18b7cae863306f4181b14d5bddc/orig.mp4?Expires=1776491611&Signature=Dm5k25TfPlpSBr2C~GPAre1mdXDiZpBv6fGE~g6qxTOQTHMUjwZWmbp1nJcTJ3l5fv7lC5WM-5H5JKhuakPrrHuyiMRgWyg9V7UxdyH-Zcfwc~SLMaRqjlYZn43Wq-Uqm~RlQMvlHgO68pNKdLQcLSwMgT0-8MQ9vnU5ygEZX6CwunP01a16wzV7rHp9Qy-2AZBN2YGSgeRQt3FDWCWOpsX0QFEL0~yG7RuGj8YUR3U-dgmDp7I-yPqWFu~TBHZENkL-sadeWHdwGuTxKjvwQhaCKOvQyzHlaJSiGGOoo8f2p596RCBOuX~TWqnm9VQoAXLhDolNO7kItMxVau1CFg__&Key-Pair-Id=KUT5TJCACFTXG","Petersburg Borough Assembly on July 7 approved a set of ordinances, budget amendments, bid awards and administrative resolutions, and rejected a proposal to pay $1,500 for updated drawings related to a proposed American Cruise Line dock.

The assembly passed ordinance 2025-11 to rezone a parcel at 1016 Sandy Beach Road from rural residential to single-family residential and approved ordinance 2025-12, a supplemental FY2026 budget adjustment, after adopting two assembly amendments that added library repairs funding and reallocated school maintenance funds to cover a school bond payment.

The assembly also approved bid awards and contracts recommended by borough staff, including a storage-building addition for Skow Bay to Steelhead Enterprises for an amount not to exceed $100,000 and a generator step-up transformer procurement to GD Partners for an amount not to exceed $274,273.75. A rental-agreement item allowing the Petersburg Volunteer Fire Department to use a borough address for proof-of-residence purposes passed, as did a routine resolution updating borough financial signatories (Resolution 2025-13) and a resolution opposing sale of public lands (Resolution 2025-14).

A separate motion to authorize PND (P and D) engineers to prepare an updated, scalable aerial drawing of the proposed American Cruise Line dock (Concept 7) for $1,500 failed on a roll call vote.

Why this matters: the budget amendments and the bond-payment transfer change where borough money is held and how facility repairs are funded; the transformer and storage-building awards affect utility operations and readiness; and the assembly’s resolution on public lands formalizes the borough’s view for federal representatives.

What the assembly voted on (selected items)

- Ordinance 2025-11 (rezoning, 1016 Sandy Beach Road): Motion to pass carried 4-0. The ordinance was unanimously approved in first reading and passed its second reading July 7 (roll call recorded as 4 yes, 0 no). The planning commission had recommended the rezone prior to public auction.

- Ordinance 2025-12 (FY2026 supplemental budget): Passed 4-0 with two assembly amendments. The ordinance itself makes three changes to the property development fund: add $50,000 for utility connection stubs to borough lots proposed for sale; remove $15,000 for a public-works survey that came in under budget in 2025; and add $9,300 as a local match for an Alaska Municipal League grant application for the Safe Streets and Roads for All program.

- Amendment 1 (library repairs): Assembly added $17,222 to the property development fund for library facility repairs; breakdown as presented: $7,222 to rebuild and retest a domestic water backflow preventer and $10,000 to replace failed clear-story windows. The amendment passed on a roll call vote 4-0.

- Amendment 2 (bond payment transfer): Assembly approved a transfer of $90,000 from Fund 758 (school deferred maintenance) to Fund 350 (borough debt service) to cover school bond payments after the state reduced its school bond reimbursement appropriation (as notified June 23). The amendment passed on a roll call vote 4-0.

- Skow Bay storage building addition (bid award): Utility Director Hagerman recommended awarding the Skow Bay storage building addition project to Steelhead Enterprises for an amount not to exceed $100,000; motion passed on roll call 4-0 after a brief explanation that the addition would provide covered storage for Power & Light materials.

- Generator step-up transformer procurement (bid award): Utility Director Hagerman recommended awarding the generator step-up transformer procurement to GD Partners for an amount not to exceed $274,273.75. Hagerman explained the transformer will step the generator output (11,000 volts) to the system voltage. The award passed on a roll call vote 4-0.

- Petersburg Volunteer Fire Department rental agreement: The assembly approved a rental agreement between the Petersburg Volunteer Fire Department and the borough to establish proof of residence for volunteers’ local post office boxes; motion passed 4-0.

- Resolution 2025-13 (financial authorization list): The assembly updated the list of borough officials and employees authorized to conduct financial activities on behalf of the borough; motion passed 4-0.

- Resolution 2025-14 (opposing sale of public lands): After public testimony urging approval, the assembly passed the resolution opposing sale of public lands and said it will send the resolution to the borough’s congressional delegation and relevant committees; motion passed 4-0. Public commenters Becky Knight and David Beebe spoke in favor of the resolution during the agenda comment period.

- Letter of support for CAKE fuel dock: The assembly voted to send a letter of support for the CAKE tribal fuel-dock grant application; motion passed 4-0.

- PND engineer proposal to update ACL Concept 7 drawings ($1,500): The motion to authorize PND engineers to prepare an updated concept/drawing for the proposed American Cruise Line dock for $1,500 failed on a roll call (all four voting members recorded “No”). Several assembly members said they believed on-site measurements and existing dimensions provided sufficient information.

Votes at a glance (roll-call summary for principal items)

- Approval of 06/16/2025 minutes: motion moved and seconded; voice vote recorded as aye.

- Skow Bay storage building addition to Steelhead Enterprises: 4 yes, 0 no.

- Generator step-up transformer procurement to GD Partners: 4 yes, 0 no.

- Ordinance 2025-11 (rezoning, Sandy Beach Road): 4 yes, 0 no.

- Ordinance 2025-12 (FY2026 supplemental) with amendments: 4 yes, 0 no.

- Library amendment (+$17,222): 4 yes, 0 no.

- Bond-payment transfer ($90,000): 4 yes, 0 no.

- Petersburg Volunteer Fire Department rental agreement: 4 yes, 0 no.

- Resolution 2025-13 (financial signatories): 4 yes, 0 no.

- Resolution 2025-14 (oppose sale of public lands): 4 yes, 0 no.

- Letter of support for CAKE fuel dock: 4 yes, 0 no.

- PND/PND-engineers ACL Concept 7 update ($1,500): 0 yes, 4 no (motion failed).

Context and next steps: Several items (rezoning, budget amendments and contract awards) will affect upcoming administrative actions: the rezoned parcel was discussed in the context of a planned public auction; the budget amendments change internal fund allocations for facility repairs and bond payments; the transformer and storage awards move forward procurement and construction for utility needs. The proposed ACL contract will be returned to the assembly later if a negotiated contract is ready for ratification.

Ending: The assembly adjourned after member recognitions and routine reports; Mayor Jensen was excused and Vice Mayor Marsh presided.","At its July 7 meeting the Petersburg Borough Assembly approved a rezoning, supplemental budget adjustments with two amendments, several infrastructure contracts and a string of administrative resolutions and agreements; it rejected a $1,500 proposal for updated cruise-dock drawings.","actionData","errors"]

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SEPA says third-turbine funding largely in place; June 21 outage under investigation

Petersburg Borough Assembly approves budget changes, rezoning and utility contracts; rejects cruise-dock drawing spending