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HomeMy WebLinkAboutRES2026-026 Support for HydroelectricSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE DEVELOPMENT OF HYDROELECTRIC PROJECTS ON GODWIN CREEK AND FOURTH OF JULY CREEK TO PROVIDE COST-EFFECTIVE, LONG-TERM, RENEWABLE ENERGY FOR THE SEWARD COMMUNITY WHEREAS, the City of Seward owns and operates a municipal electric utility that provides electric service to the citizens and businesses of Seward and the surrounding area; and WHEREAS, the Seward area has a long history of hydroelectric generation, beginning with the Seward Light and Power Company, which successfully operated a hydroelectric facility serving the community from approximately 1905 through 1939; and WHEREAS, early recognition of the region's hydroelectric potential was documented in a 1915 United States Geological Survey which identified numerous streams and watersheds in the Seward area as viable locations for hydroelectric development; and WHEREAS, the City of Seward Electric Department is currently working to revitalize the historic Mount Marathon Hydroelectric Plant, demonstrating the community's continued commitment to utilizing local renewable water resources to generate electricity; and WHEREAS, the cost of electricity in Alaska is heavily influenced by the price and availability of fossil fuels, particularly natural gas, which has experienced increasing price volatility and long- term supply uncertainty; and WHEREAS, developing local renewable energy resources strengthens energy independence, stabilizes long-term power costs, and reduces reliance on imported fossil fuels; and WHEREAS, the City of Seward Electric Department has identified hydroelectric development opportunities on Godwin Creek and Fourth of July Creek, which have the potential to provide reliable, clean, and renewable energy for the Seward community; and WHEREAS, development of local hydroelectric generation will help stabilize long-term electric rates for Seward residents and businesses while strengthening the energy resilience of the community and the broader Kenai Peninsula region; and WHEREAS, the City of Seward Electric Department is working toward filing Preliminary Permit Applications with the Federal Energy Regulatory Commission (FERC) for these projects in order to conduct feasibility studies, engineering design, and environmental review; and CITY OF SEWARD, ALASKA RESOLUTION 2026-026 Page 2 of 3 WHEREAS, obtaining preliminary permits will allow the City of Seward to responsibly evaluate these hydroelectric resources and position the projects for future construction and operation; and WHEREAS, the City of Seward intends to actively pursue state and federal grants, infrastructure funding opportunities, and other financial partnerships to support the planning, design, and construction of these hydroelectric projects; and WHEREAS, federal energy policy currently provides significant financial incentives for renewable energy development, including the Investment Tax Credit (ITC), which can return a substantial portion of project construction costs for qualifying renewable energy projects but is currently scheduled to sunset in 2033, creating an important opportunity for communities such as Seward to advance renewable energy projects within this timeframe; and WHEREAS, these hydroelectric developments represent part of a broader renewable energy strategy by the City of Seward to responsibly develop local hydroelectric resources, reduce long- term dependence on fossil fuels, and create a resilient renewable energy portfolio for the community; and WHEREAS, the City of Seward recognizes that development of hydroelectric resources must be done responsibly and with careful stewardship of the natural environment, including protection of fish habitat and spawning areas; and WHEREAS, because these projects are being developed locally by the City of Seward, the community is uniquely positioned to ensure that project design prioritizes environmental protection, watershed stewardship, and responsible resource management; and WHEREAS, as part of the feasibility evaluation for the Godwin Creek and Fourth of July Creek projects, the City intends to explore opportunities to enhance fish habitat and potentially reintroduce the stocking of King Salmon, if supported by environmental and biological studies; and WHEREAS, the Seward City Council recognizes the long-term benefit of investing in renewable hydroelectric generation to provide affordable, sustainable energy for the citizens of Seward and the surrounding region for generations to come. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council formally expresses its support for the development and evaluation of hydroelectric power projects on Godwin Creek and Fourth of July Creek. CITY OF SEWARD, ALASKA RESOLUTION 2026-026 Page 3 of 3 Section 2. The City Council supports the City of Seward Electric Department in pursuing Federal Energy Regulatory Commission (FERC) Preliminary Permits, feasibility studies, engineering analysis, and environmental review necessary to evaluate these hydroelectric resources. Section 3. The City Council supports the City of Seward Electric Department in seeking state and federal funding opportunities, grants, and partnerships to assist in the planning, development, and construction of these renewable energy projects. Section 4. The City Council affirms that development of local hydroelectric generation is an important component of securing long-term, reliable, environmentally responsible, and cost- effective energy for the citizens of Seward. This resolution shall take effect immediately upon adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 23rd DAY OF MARCH 2026. Sue McClure, Mayor AYES: Barnwell, Draper, Calhoon, Osenga, Warner, Crites, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: r ( j Kris Peck City Clerk City Council Agenda Statement Meeting Date: March 23, 2026 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Department Subject: Resolution 2026-026: Supporting the Development of Hydroelectric Projects on Godwin Creek and Fourth of July Creek to Provide Cost - Effective, Long -Term, Renewable Energy for the Seward Community Background and justification: The City of Seward Electric Department is working to advance the development of new hydroelectric generation resources on Godwin Creek and Fourth of July Creek. These potential projects represent an important opportunity to develop reliable, renewable energy resources that could serve the Seward community for generations. Seward has a long history of utilizing hydroelectric power. The Seward Light and Power Company operated hydroelectric generation in the Seward area from approximately 1905 through 1939, demonstrating the viability of hydropower in the region. In addition, a 1915 United States Geological Survey identified multiple streams in the Seward area as having strong potential for hydroelectric development, further confirming the long -recognized opportunity to harness local water resources for energy production. Today, the City of Seward Electric Department is continuing that legacy through efforts to revitalize the historic Mount Marathon Hydroelectric Plant, which represents the first step in restoring locally generated renewable energy within the Seward electric system. The proposed Godwin Creek and Fourth of July Creek hydroelectric developments would build upon that progress and represent the next phase of the City's long-term renewable energy strategy. The City is currently preparing to pursue Preliminary Permits from the Federal Energy Regulatory Commission (FERC) for these potential hydroelectric projects. A preliminary permit would allow the City several years to complete feasibility studies, engineering analysis, and environmental review necessary to determine whether the projects can be responsibly developed. During this period, the City will evaluate hydrology, engineering design, economic feasibility, and environmental considerations associated with these potential projects. Development of local hydroelectric generation has the potential to stabilize long-term electric rates for Seward residents and businesses while strengthening the energy resilience of the community and the broader Kenai Peninsula region. As natural gas prices continue to rise and long-term supply become increasingly uncertain, locally produced renewable energy can provide an important hedge against fuel price volatility and help secure Seward's long-term energy future. The City of Seward also intends to pursue state and federal grant opportunities and infrastructure funding to support project planning and development. In addition, current federal policy provides significant incentives for renewable energy projects through the Investment Tax Credit (ITC), which can return a substantial portion of project construction costs but is currently scheduled to sunset in 2033. Advancing project planning now allows the City to position these hydroelectric developments to potentially benefit from these federal incentives. Environmental stewardship will remain a key priority throughout the evaluation and development process. As a locally developed project, the City of Seward is uniquely positioned to ensure that hydropower development is conducted responsibly with careful protection of fish habitat, watershed conditions, and natural resources. As part of the feasibility evaluation, the City will also explore opportunities to enhance fish habitat and potentially reintroduce the stocking of King Salmon, if environmental studies determine such efforts would be beneficial and feasible. Supporting this resolution formally communicates the Seward City Council's commitment to pursuing responsible renewable energy development and helps strengthen the City's position when applying for grants, working with state and federal agencies, and engaging with legislators and community partners. The development of hydroelectric resources on Godwin Creek and Fourth of July Creek represents a long-term investment in affordable, reliable, and renewable energy for the Seward community, while continuing Seward's historic legacy of utilizing local water resources to power the community. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: This legislation (✓): Creates revenue in the amount of: Creates expenditure in the amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): Budgeted Line item(s): x Not budgeted Not applicable $ $ $ Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance Yes SMIC Parking Other Electric Water Attorney Signature: Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited [intentionally left blank] Finance Director Signature: [intentionally left blank] Administration Recommendation Adopt Resolution Other: