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AEA outlines Bradley Lake diversion plan to boost Railbelt output, seeks FERC license funding
Summary
The Alaska Energy Authority told the Senate Finance Committee it is studying a Dixon Glacier diversion and dam raise at the Bradley Lake Hydroelectric Project that AEA estimates could raise output 50%, displace natural gas use, and require federal and state approvals and new funding.
Curtis Thayer, executive director of the Alaska Energy Authority, told the Senate Finance Committee that AEA is studying a Dixon Glacier diversion and dam-raise at the Bradley Lake Hydroelectric Project near Homer that the agency estimates would increase the facility’s power output by about 50%.
Thayer said the project would be achieved by a diversion dam and a roughly five-mile tunnel to move water from Dixon Glacier into Bradley Lake and by raising the dam about 14 feet to hold more storage. He told the committee AEA estimates the upgrade would displace about 1.5 billion cubic feet of natural gas annually and called it one of the largest short-term options to reduce Cook Inlet gas demand.
The committee was given an outline of expected costs, jobs and timing. AEA’s presentation listed a total estimated project cost of about $342 million, projected construction and licensing work between 2024 and 2030, an estimated 3,250 jobs created during licensing and construction, $260 million in labor income during construction, and long-term operation-and-maintenance costs AEA estimated at about $500,000 per year. Thayer said the project would produce energy equivalent to powering as many as 30,000 homes.
Senator Lyman Stedman asked for a status update on Federal Energy Regulatory Commission licensing. "I think it'd be nice if we got a Bradley update on the FERC process on this project and where we stand with that," Stedman said. Thayer replied that AEA began the FERC process in 2022, has completed engineering and environmental work, has had a FERC board of consultants visit the site, and plans to file for the licensing amendment in January of this year. He said AEA has requested $6.5 million in the state budget to support the licensing effort and that AEA and utilities plan to match that request to reach a FERC license.
Thayer told senators that, to date, he had not found organized opposition to the project and that federal and state agencies and some non-governmental organizations have been involved in planning. He invited committee members to visit Bradley Lake for a one-day site trip scheduled this summer.
Discussion on the panel emphasized technical and permitting timelines and the need for matching funds to complete the FERC license application and environmental process. Committee members pressed AEA for a written update on the FERC timeline and next steps.
No committee action or vote was taken during the presentation; the briefing was informational.
Ending: AEA said it will provide the committee an updated FERC licensing status and supporting materials. The presentation moved on to other grant and program topics after questions.
