ENERGY
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Nuyakuk River Hydroelectric Concept Update
Renewable power for Dillingham and its neighbors
By Terri Marshall
T

he Nuyakuk River Hydroelectric Concept is a proposed run-of-river hydroelectric development that aims to deliver electricity and enhanced broadband access to six northern Bristol Bay communities: Aleknagik, Dillingham, Ekwok, Koliganek, Levelock, and New Stuyahok. The project site is at Nuyakuk Falls, approximately four miles downstream of Tikchik Lake on the Nuyakuk River within Wood-Tikchik State Park, and will occupy 357 acres of US Bureau of Land Management land.

The project would consist of an intake structure, power conduit, powerhouse forebay, powerhouse, and tailrace channel approximately 4.5 miles downstream of the Tikchik Lake outlet above a natural waterfall on the Nuyakuk River. The project’s river intake would divert water from the Nuyakuk River above Nuyakuk Falls to a powerhouse near the base of the falls.

Based on more than sixty years of federally sourced site-specific flow data, the run-of-river project could produce up to 12 MWh year-round. The seasonal generation capacity matches, or exceeds, the demand for power in the six communities and would replace up to 1.5 million gallons of diesel fuel each year.

With the rising cost of transporting diesel fuel and the inherent risk of oil spills in connection with that transport, hydroelectric power offers many financial and environmental advantages. However, as the name suggests, the project is still at the conceptual phase. Numerous studies are required, permits must be granted and, perhaps most important, the commercial fishing industry in the Bristol Bay region must be protected.

Bristol Bay Tie Line
The Nuyakuk River Hydroelectric Concept aims to supply power to customers of Nushagak Cooperative, the Dillingham-based electric and telephone utility, and potentially extend its reach to other areas within the region. Developers anticipate that the renewable energy generated by this initiative could substantially improve the current distribution system and reduce local communities’ reliance on fossil fuels as their primary source of electricity.
Assuming the necessary permits and licenses are secured and funding is in place, construction is anticipated to commence in 2026, with completion expected by 2028.
Additionally, the project envisions introducing the first transmission tie line in the Bristol Bay area, connecting rural communities that currently depend solely on diesel power plants and distribution systems. The transmission line would provide several advantages by enabling power to be transferred among different regions or utilities, especially during peak demand periods when one area might need additional power from another. It would also aid with stabilizing the power grid by allowing power to flow where it’s needed most, preventing voltage fluctuations and potential blackouts.

The project also has the potential to open land for supplementary renewable energy sources that would complement the project’s base load resources. This initiative creates new opportunities for local communities, which presently rely entirely on diesel generation fueled by barges through the Nushagak River and Kvichak River drainages to the designated locations. By decreasing fuel transportation via waterways and minimizing storage requirements, the project will mitigate the risk of environmental damage due to spills.

Reasons to Move Forward
In November 2024, Nushagak Cooperative board member Mark Lisac led a “lunch and learn” session at the UAF Bristol Bay campus. In the meeting, he discussed some of the drawbacks to the current use of diesel fuel, including the cost of transporting the fuel and the impact of oil spills on the environment and the fishing industry. “We used to pay $30,000 a day to lease the tank [for transporting oil], and this year we’re paying $80,000,” shared Lisac. “On occasion, when they couldn’t take the tankers on the river to the villages, we had to fly it in. We moved 3 million gallons through this region, and it’s a risky business. In 2014 and 2018, there were oil spills, and when that happens it brings concerns about the effect on commercial fishing.”

Another significant complexity of diesel-generated power lies in monitoring emissions. “We have to pay by the ton for emissions that have been put in the atmosphere,” explained Lisac. “Also, the Alaska Department of Environmental Conservation requires that we hire a company to monitor those emissions. So over the past seven-year period, we spent over $1.8 million just monitoring and paying by the ton for those emissions.”

Initial Studies
Nushagak Cooperative filed an Updated Study Report (USR) on the hydroelectric concept in December 2024. The USR described the progress made during two years of studies and was presented at a meeting in January 2025. Agencies, tribes, communities, non-governmental organizations, and members of the public previously filed comments on the initial USR in March 2024. The Federal Energy Regulatory Commission (FERC) addressed those comments with modifications in the most recent plan.

Several of the modifications centered around the Fish and Aquatic Resource Studies and the Subsistence Study. For example, with the Nuyakuk Falls Fish Passage Study, the FERC recommended the study plan be modified to require Nusghagak Cooperative, when conducting in-person meetings for the Subsistence Study, to also request any tribal knowledge on fish migration timing or passage through Nuyakuk Falls, particularly as it may relate to low flow conditions. The FERC also recommended modifying the study plan to require Nusghagak Cooperative to include adult salmon spawning and juvenile rearing habitat for salmon in the fish habitat modeling analyses.

Another modification involved the Subsistence Study. The FERC recommended that the study plan be modified to require Nushagak Cooperative to schedule in-person meetings with tribal elders and other tribal members knowledgeable in subsistence activities in Koliganek, New Stuyahok, Ekwok, Aleknagik, Levelock, and Dillingham.

With the rising cost of transporting diesel fuel and the inherent risk of oil spills in connection with that transport, hydroelectric power offers many financial and environmental advantages. However, as the name suggests, the project is still at the conceptual phase.
In the January meeting held to review the most recent USR, the Fish and Aquatic Resource Studies were a primary focus due to concerns about disturbing fish cycles and potential dangers of the intake from the project. Audrey Thompson, representing hydropower engineering firm Kleinschmidt Associates, explained the study findings and noted, “The intake velocities are low enough that sockeye smolt have the swim speed capacity to avoid the intake if they decide to.” Thompson also noted that fish-friendly turbines would offer confidence that any fish that do get entrained through the project have a high potential for survival.
Project Timeline
With innumerable moving parts and the extensive permitting process, the project’s timeline is expected to span approximately six years. The FERC has licensing authority for this concept. The FERC’s responsibility involves gathering input from stakeholders, including various agencies, individuals in the affected communities, and tribal entities.

The initial studies for the project commenced in 2020 with the initial development of the study plans. From 2021 to 2023, the focus was on assessing seasonal impact. In late 2023, Nushagak Cooperative submitted a license application to the FERC. The operating license was issued in early 2024, allowing the project to progress.

In December 2024, Nushagak Cooperative released a report comprising two years of research across nineteen different study areas, including a botanical and wetland study, a caribou population evaluation, and a Nuyakuk Falls fish passage study. At the time of this writing, three of the nineteen studies were still underway: the aesthetic study, the Chinook and salmon life cycle modeling study, and the subsistence study.

From 2024 through 2026, Nushagak Cooperative aims to secure additional operating permits and licenses, including a Wood-Tikchik State Park operating permit, transmission line right of way, and water rights. Assuming the necessary permits and licenses are secured and funding is in place, construction is anticipated to commence in 2026, with completion expected by 2028. The cost of the studies is estimated at $6 million, while the total project cost is estimated to range between $120 million and $140 million.

Despite the significant cost and time required to complete the Nuyakuk River Hydroelectric Concept, Nushagak Cooperative remains enthusiastic about the potential and looks forward to conducting the necessary studies to evaluate its feasibility and value to the region.

In a statement regarding the concept vision, Nushagak Cooperative noted, “Hydroelectric concepts in Alaska have a successful history of providing electric rate reduction, reduced dependence on fossil fuels, carbon emissions mitigation, and longevity. Several hydro facilities in Alaska have been in operation for more than a century, and many more are currently displaying the same type of longevity potential. We believe the combination of renewable energy and increased broadband access will provide the basis for economic and social improvement and growth in the region for generations to come.”