Alaska needs more power, not less

This past week I toured Terra Energy Corporation’s West Susitna coal project with Congressman Nick Begich, fellow legislators, and local business leaders. What I saw reinforced a truth we can’t afford to ignore: Alaska does not have enough power to meet the needs of our people and our industries. If we want to grow, we need more energy, not less.

Terra’s project is an example of how we can get there. It’s not the old image of coal. This is a modern minemouth generation facility, designed from the ground up with carbon capture. At full build-out, it could produce baseload electricity at lower cost than importing LNG, while using Alaska’s own resources and workers. That’s the kind of innovation we need to lower rates for families and attract new industries like data centers, which thrive on our cool climate and international location.

And let me be clear: Terra’s project doesn’t compete with Usibeli in Healy. And it doesn’t compete with Alaska LNG. It complements them. Usibeli has powered Interior Alaska reliably for decades, and will continue to do so. LNG exports will be critical for opening international markets. Terra’s project fits into the mix by providing stable, affordable in-state power. Sometimes it will make sense to export LNG while burning coal at home. Other times it may be the opposite. The point is not either-or. The point is more.

Right now, Alaska is constrained by how much energy we can produce. Mines like Estelle and Whistler in the Valley, with nearly 20 million combined ounces of gold and new antimony potential, recently embargoed by China, need power and road access. Value-added industries like smelting, mineral processing, and advanced manufacturing all need electricity and heat. We already have space for these projects at Port Mackenzie, along with most of the railway extension completed to support them.

The same is true for projects statewide, from the Palmer project near Haines to Bokan’s rare earths on Prince of Wales, to the Ambler copper belt in the Brooks Range. Every one of them faces the same bottleneck: energy.

That’s why infrastructure projects like the West Susitna Access Road are so important. DOT is advancing the public segment for families and recreation, while AIDEA is pursuing the industrial corridor to carry power and fiber. Together, they unlock the western Mat-Su, not just for mining, but for all the industries and jobs that follow.

I worked earlier this year on the “Unlocking Alaska’s Mineral Potential” report in response to Executive Order 14241, which laid out how projects across the state fit into our national strategy for critical minerals. What became clear in that process is also clear here in the Valley: resources alone aren’t enough. You need infrastructure, you need permitting certainty, and you need power.

Alaska has always been an energy state. But for too long, we’ve been debating which project “wins” instead of asking how many we can move forward at once. The truth is, we need them all. Coal, LNG, hydropower, advanced nuclear, and renewable technologies, every one of them adds to the supply we’ll need to power our homes, support new businesses, and compete in the global economy.

If we get this right, we can stop asking “where will the power come from?” and start asking “where can we put it to work next?” That’s the only way to lower costs, grow year-round jobs, and build a stronger Alaska for the next generation.

The Valley is ready to lead. And I’m going to keep working to make sure the power, roads, and resources are there to fuel that growth. That’s how we make sure Valley families see lower bills and steady paychecks. Because Alaska’s future depends on it.

Rep. George Rauscher serves House District 29.