Parnell pushes for more dam money

MAT-SU — Although he only included $10 million for it in his budget for next year, in a supplemental budget released last week, Gov. Sean Parnell asked for an additional $32.7 million in funds for the Susitna-Watana Dam.

But there’s a catch.

“The sum of $32,700,000 is appropriated from the general fund to the Alaska Energy Authority (AEA) for the Susitna-Watana Hydroelectric Project contingent upon AEA obtaining and holding valid executed land access permits needed to conduct field studies and other activities,” Parnell’s appropriation reads.

The appropriation is included in the supplemental budget, as opposed to the $10 million the governor proposed for next year. Additional funds for the dam and moving money around in the Alaska Marine Highway System budget were the only items in the supplemental budget changes released Feb. 18.

In a press conference after he announced his budget, Parnell said the reduced rate of funding — AEA had asked for $110 million — was due to the lack of access to lands in the area.

“There’s no sense in moving forward without that,” he said.

Dam project spokeswoman Emily Ford said in an email that the access rights negotiations in question are between AEA and a handful of Alaska Native corporations — CIRI and a collection of Cook Inlet Village corporations.

“CIRI and the Cook Inlet Village corporations have chosen to work as a collective group and negotiate one permit for all access on their lands. Significant progress has been made and we continue to work on negotiating final terms,” Ford wrote.

Ford said that negotiations with Ahtna Inc., to develop long-term relationships are ongoing, but that access rights to Ahtna land in the area are already in place.

The dam is undertaking dozens of studies on things like fish and wildlife and geology in the section of the Susitna River the state intends to dam. The 2013 state budget included $95 million for that work.

The state sees the dam as a way to create cheap, renewable energy for the state.

Hydropower, the state often argues, starts out relatively more expensive than other power but doesn’t get more expensive. When the debt taken on to build such a project is paid off it drops precipitously.

Dam opponents, spearheaded by the Susitna River Coalition, warn of devastated fish runs in the Susitna, the dangers of building a dam in an earthquake zone and funding for the dam choking off funding for other needed energy projects.

The studies are all leading up to an application to the Federal Energy Regulatory Commission for a license to build the dam.

Ford said that as of Monday, AEA was looking at what a potential $32.7 million more in the budget will do for the project, but that it looked like instead of wrapping up the studies in two years — 2013 and 2014 — the studies would last three years.

‘It appears we will be extending this year’s efforts into 2015 with the intent of filing for a license by the end of 2016,” she said.

Contact Andrew Wellner at 352-2270 or andrew.wellner@frontiersman.com.