Kodiak Electric asks borough to transfer four Terror Lake parcels to streamline FERC relicensing

Representatives of Kodiak Electric (KEA) asked the Kodiak Island Borough Lands Committee on April 6 to recommend transferring four parcel tracts within the Terror Lake Hydroelectric Project boundary to KEA so the cooperative can consolidate ownership ahead of federal relicensing.

Linda Fried, chair of KEA’s Budget and Policy Committee, told the committee the parcels were originally selected as municipal land entitlements to help the Terror Lake project and that transferring them back to KEA would "consolidate the project as we put it forward to the federal government." Fried said KEA would pay the cost of the transfer and did not plan to develop the parcels.

Dan Meneth, KEA president and CEO, said ownership consolidation would make KEA’s relicensing filings cleaner and could reduce consultant time and cost. He said relicensing activity will intensify in May and that the federal license for the project expires in 2031.

Assembly member Bo Whiteside pressed KEA on community benefit and cited a recent rate increase. "KEA just raised their electric rates for our community by... I believe 13 to 15%," Whiteside said, asking what the public receives in return for transferring borough land. KEA representatives said the 12.5% increase was their first in 30 years and argued that consolidating ownership could ease relicensing costs for cooperative members; they also said the transfer would not change public access compared with other parts of the project area.

Community Development Director Chris French and members discussed how ownership clarity affects federal review. French said Title 18 procedures require the manager to submit disposal applications to the Planning & Zoning Commission; he recommended routing committee recommendations to the manager so the commission can assess public purpose and avoid duplicate Assembly reviews.

The committee did not vote but reached informal consensus to ask the manager to begin the process: staff will prepare maps and materials, and the KEA transfer request will be placed on the next regular meeting agenda for formal consideration. KEA said it will provide additional information and attend the next meeting when the item is on the agenda.