Electrical Power for Valdez and the Copper River Basin-1981

ALASKA POWER AUTHORITY333 WEST 4th AVENUE - SUITE 31 - ANCHORAGE, ALASKA 99501Phone: (907) 277-7641(907) 276-2715February 25, 1981Colonel Lee R. NunnAlaska District EngineerU. S. Army Corps of EngineersPost Office Box 7002Anchorage, Alaska 99510Dear Colonel Nunn:The Alaska Power Authority would support state funding of 10% of thecosts of construction of the Allison Creek Hydroelectric Project nearValdez, Alaska if the project is determined to be feasible and the bestfuture source of power for the market area. As you know, the State ofAlaska is currently completing feasibility studies of Susitna and a Railbelttransmission line, and either the Copper Valley Electric Associationor the City of Valdez may install a pressure reducing turpine on theAlyeska oil pipeline. Therefore, the definite decision to proceed withdevelopment of Allison Creek should await decisions on these projects andrefinement of demand forecasts in the market area.State funding participation in the project would require legislativeappropriation once a clear decision can be made. With this in mind, Iwill request that Governor Hammond prepare a letter of support for continuedfield investigations and preparation of a General Design Memorandumfor Allison Creek, with the understanding that State funding of a portionof construction costs must be delayed until other studies are completedand the need for the project becomes more definite.cc:Governor HammondSincerely,cc..~.\J~Eric P. Yould "\Executive Director