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HomeMy WebLinkAboutAEB Letter of Support FINAL (1-13-2022) ANCHORAGE OFFICE • 3380 C Street, Ste 205 • Anchorage, AK 99503-3952 • (907)274-7555 • Fax: (907)276-7569 KING COVE OFFICE • P.O. Box 49 • King Cove, AK 99612 • (907)497-2588 • Fax: (907)497-2386 SAND POINT OFFICE • P.O. Box 349 • Sand Point, AK 99661 • (907)383-2699 • Fax: (907)383-3496 January 13, 2022 Dear Mayor Hoblet: The Aleutians East Borough is pleased to offer this letter supporting the City’s proposal to complete design and permitting of a hydropower project on Unga Man Creek to provide local and sustainable electricity to our community. The Borough is aware that False Pass has been actively studying hydropower for several years and are heartened to know that the feasibility study phase is coming to a successful conclusion and that the city is turning to the next stage of development. Based on the 2016 feasibility study progress report, the approximately 140 kW run-of-river project is expected to provide about 75% of the electric utility load. Excess generating capacity can be dispatched to public buildings to reduce heating fuel usage. Total community fuel savings are estimated to be about 45,000 gallons per year. The Borough supports this project for several reasons. 1. Overtime, hydropower is expected to reduce electric rates in the community, benefiting residents and businesses with direct cost savings and indirect local economic benefits. 2. The project will help to insulate False Pass from the fuel price volatility and resultant rate shocks that hit all electric consumers. Having price stability is a significant benefit to the community. 3. Local hydropower will be a long-term renewable energy resource for the community. It will directly improve their resiliency, energy security, and long term environmental and economic sustainability. 4. The project is well-researched. Fisheries studies and hydrology studies conducted since 2015 have demonstrated the water resource is there and that it can be developed without undue impact on local fisheries. 5. Hydropower is a proven robust technology that has been successfully used for many decades by many remote communities throughout the Aleutians, Alaska and the world. There is minimal technology risk with this project. We appreciate the City’s on-going efforts to develop this hydropower project, and we are pleased to support the current application for grant funding to complete project design and permitting. Sincerely, Anne Bailey, Administrator