FERC clears licensing path for Tyee Lake third turbine

Tyee Lake Expansion

The Federal Energy Regulatory Commission has approved Southeast Alaska Power Agency's request to use the Traditional Licensing Process for a license amendment application for the Tyee Lake Hydroelectric Project, which provides power to Wrangell and Petersburg.

FERC issued the letter June 26, formally granting SEAPA's April 29 request. The approval sets the procedural framework for the amendment application and shapes how local and federal stakeholders can engage. The action does not itself approve any physical or operational changes to the project.

The proposed amendment would add a third turbine-generator at the Tyee Lake Hydroelectric Project, located on Tyee Creek in Wrangell Borough on Tongass National Forest land, raising total installed capacity from 22.6 MW to 33.75 MW. Earlier in 2026, FERC published a notice of availability of an environmental assessment for the proposed amendments, an earlier step in the ongoing review.

SEAPA's Highest Priority

At the Petersburg Borough Assembly's June 15 meeting, Southeast Alaska Power Agency representative Carl Hagerman called the project the agency's highest priority. "100% Design for the Tahee third turbine is completed," Hagerman said. "This project will increase the power output from Tahee Lake by another 12 megawatts and is the highest priority in the agency's 5-year strategic plan." He said a construction request for proposals is planned for July, with the turbine targeted to be operational in 2027.

The amendment process now moves forward under the Traditional Licensing Process framework.