The Southeast Alaska Power Agency is smarting over a letter recently delivered to the Federal Energy Regulatory Commission seeking an investigation into claims SEAPA’s involvement in the Sunrise Lake Hydroelectric Project is forbidden by the Alaska Constitution.
Former Wrangell City Council and Borough Assembly member Warren Edgley submitted the letter on Oct. 30 asking FERC to “investigate the likely misuse and potential abuse of the municipal power claim,” regarding the Sunrise project on Woronkofski Island.
SEAPA has applied for a preliminary permit to build a 4 MW hydroelectric generation project using a 5,360 horsepower turbine at Sunrise Lake.
The proposal would see a powerhouse built near the 120-foot elevation on the island, a small rockfill dam across the outlet of the lake, and a submerged intake siphon on the east bank of Sunrise Creek.
The letter from Edgly asserts that SEAPA “is claiming municipal preference to usurp power it does not constitutionally possess,” and that “if SEAPA had operated appropriately by filing a competitively filed FERC preliminary, SEAPA would have allowed lawfully elected municipal interests to exercise their municipal prerogative…”
Joel Paisner, the attorney for SEAPA said the allegations made by Edgly are baseless.
“We’re clear that that water portion of the original application by the city quite a number of years ago was a joint project for hydro and municipal water as an emergency backup,” Paisner said. “Very clearly, we’re looking at just the hydro side and partnering with the city on the water side.
Paisner also said the allegation that SEAPA is not entitled to a filing preference is an insufficient legal argument against the Sunrise plan.
“The letter claims that SEAPA is not a municipal entity entitled to a preference filing under the FERC rules,” Paisner added. “When it is stated like that, it is correct, we are not a municipal entity under the laws of Alaska. However, we are a state agency under the laws of the State of Alaska and the FERC preference rules apply to both state and municipals. They left out one piece of their analysis, which I’m not sure demands any kind of response.”
SEAPA board member and Wrangell Mayor Jeremy Maxand said that although a handful of people in Wrangell are concerned that the city and borough may be giving up its rights and destiny by working with SEAPA to develop the project, the outcome is dependent on an up-or-down vote of the board and will always be in the best interest of Wrangellites.
“Some people are maintaining incorrectly that SEAPA will be charging us for our domestic water,” Maxand said. “I can tell you all that, if for some reason, the board decided to take a ride on the crazy train and start charging us for water, Wrangell would not vote to develop that project. You’d have to have a unanimous vote for the project.”
Maxand also added working within the bounds of SEAPA could see both hydro and water supply issues resolved faster than through a purely borough-based initiave.
“I believe that if we work with SEAPA and they decide this is a project that fits with the system, we will get this developed faster than we would on our own,” Maxand said. “If the hydro project moves forward with SEAPA, funding for a domestic water supply will come more quickly as well.”
The application for the Sunrise project calls for a number of studies that will cost between $400,000-$900,000, which SEAPA would self-fund.
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