Chugach Electric Association has filed preliminary permit applications with the Federal Energy Regulatory Commission (FERC) and water right applications with the Alaska Department of Natural Resources (ADNR) to study four potential hydropower projects in Southcentral Alaska. The primary objective is to reduce the utility’s reliance on natural gas for power generation.
Chugach currently depends heavily on natural gas-fired generation. The proposed hydropower investigations are part of a long-term strategy to diversify supply, reduce exposure to gas availability and price risk, and meet board-directed decarbonization targets without materially increasing rates or affecting reliability.
The projects under study are:
- Canyon Creek – run-of-river, expected capacity 6MW
- Godwin Creek – storage, expected capacity 16MW
- Boulder Creek – storage, expected capacity 12MW
- Caribou Creek – storage, expected capacity 18MW
If developed, the four projects would provide up to 52MW of installed capacity. Storage projects would also provide dispatchable capacity to support system reliability and integration of variable renewable resources.
The preliminary permits provide site priority for feasibility studies only. They do not authorise construction or land-disturbing activities. The filings allow Chugach to conduct engineering, environmental, and economic assessments while continuing stakeholder engagement.
The hydro initiative began more than two years ago with a screening of 158 potential sites. Chugach developed selection criteria that excluded projects involving dams or diversions on anadromous fish-bearing reaches. Over the past six months, the utility consulted with regulatory agencies, Alaska Native tribes, landowners, and non-governmental organisations to refine site selection criteria before filing the applications.
“As we are all focused on the energy future of Alaska, we know hydro is dependable, is the lowest cost long-term energy source for ratepayers, allows us to reduce the need for fossil fuels, and helps us meet our decarbonation goals,” said Chugach CEO Arthur Miller. “Our early outreach to potentially impacted stakeholders and partners has received a very positive response as Alaskans understand the need for future energy diversification and low-cost power.”
Miller added storage hydropower projects are dependable and can support wind and solar development as a critical source of power regulation. Additionally, timing is important as hydro projects take years to study and construct and are eligible for significant Investment Tax Credits if they begin construction by December 31, 2033.
“The runway is long and we need to move forward on the investigation of possible hydro projects. That’s why we started months ago engaging with stakeholders,” Miller said. “With the preliminary permits filed, we can continue to investigate how to minimize and mitigate impacts from potential projects, look for fatal flaws, and only move forward on projects that are economical, and benefit thousands of Alaskans.”
Chugach has set goals to reduce carbon intensity by at least 35% by 2030 and 50% by 2040, compared with a 2012 baseline. Increasing hydropower generation is identified as a key pathway to displacing gas-fired generation and achieving those targets.
The applications were filed on February 6, 2026. Each will be subject to a public comment period. During 2026, Chugach plans to conduct site visits and feasibility studies to identify potential fatal flaws. Projects that meet technical, environmental, and economic thresholds will advance through the FERC licensing process, if jurisdictional, or through state permitting processes
