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Council endorses $885,000 state grant request to modernize Silvis Lake hydro unit
Summary
Ketchikan staff asked the council to endorse a $885,000 Alaska Energy Authority design‑phase grant for Silvis Lake hydro modernization, a $1.2M design total with $150,000 cash and $175,000 in‑kind city labor; staff estimated full project construction costs could reach about $44.5 million.
The Ketchikan City Council voted to endorse a grant application to the Alaska Energy Authority Renewable Energy Fund to design modernization work for the Silvis Lake hydroelectric unit. Robert, the electric division manager, told the council the AEA request would cover $885,000 of a roughly $1.2 million design phase and that the city's share would be $150,000 cash plus $175,000 in‑kind labor. He described prior testing that reduced a vibration problem but noted possible damage to a shaft and the need to rebuild or replace rotating components.
Staff emphasized the proposal is the design phase ("This is just the design portion.") and said that getting design funds strengthens future construction‑phase applications; the full construction cost could be substantially larger. Robert estimated the total project cost might be about $44,500,000 and described ancillary benefits: a small gain in runner efficiency could translate to recurring energy value for the utility. Council voted to authorize submitting the grant package so staff could pursue further state and potential federal funds.
