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Study advances on pumped‑storage plan for Eklutna Lake; concept design and major cost range presented
Summary
Stantec and Anchorage Hydropower briefed the committee June 18 on two pumped‑storage alternatives for Eklutna Lake that would divert West Hunter Creek; staff estimated concept costs between $300 million and $800 million, significant environmental and permitting work ahead, and a public open house planned for September.
The Assembly committee received a status report June 18 on a pumped‑storage hydropower study that aims to increase water availability in the Eklutna Lake system and restore flows to the Eklutna River while generating electricity.
Mark Shimsheimer, director of engineering for Anchorage Hydropower, and Dean Sidta of Stantec summarized work begun in late 2024: an alternatives analysis narrowed roughly a dozen initial concepts to two options—both involving a diversion from West Hunter Creek into Eklutna Lake via a roughly 5‑mile tunnel, with power generation and a portion of diverted water routed downstream to support river restoration. One impoundment option would use a ~300‑foot dam; the other would use a ~150‑foot dam plus raising lake level ~12 feet to store water.
Sidta said the concept design is underway and described completed work on geologic and seismic desktop studies, concept powerhouse drawings, hydraulic and surge analyses, and early environmental assessments. He said the two chosen alternatives would increase lake water supply by approximately 30% and roughly double power generation at the existing project in conceptual estimates.
On costs and financing, Sidta presented a wide magnitude estimate: “The two alternatives…would range and cost anywhere from $300 to $800,000,000, give or take.” He noted an estimated annual revenue stream of $7–10 million and said a straight financing approach could yield a 50–60 year payback; federal investment tax credits available under recent legislation could reduce that to roughly a 30‑year horizon under favorable conditions.
Committee members asked about landslide and dam‑failure risk, contracting and grant eligibility, and whether municipal utilities can access federal tax incentives. Presenters said dam stability and risk analysis are part of the design work, that grant and tax‑credit eligibility for a municipality is still being examined, and that the project would require buy‑in from other owners and stakeholders before advancing to governor review.
The project team plans additional environmental studies this year, cost estimating and an economic analysis in the coming months, and a public stakeholder meeting likely in September; the design study report draft is expected this fall with adaptive‑management committee review targeted in early 2027.
