Ketchikan Council approves pursuit of $23M federal grant for electric grid upgrades

The Ketchikan City Council voted 7-0 Thursday to authorize applying for a $23 million federal grant that would strengthen the city's electric transmission system and position the utility to supply shore power to cruise ships and expanded industrial operations.

The U.S. Department of Energy SPARKS program grant would cover $17 million of the project. The city would match roughly $6 million. Robert Briggs, KPU Electric Division manager, told the council the project would replace aging infrastructure along the 34-kilovolt transmission corridor from Bailey Substation to Schoenbar Substation. Capacity would rise from 20 megawatts to 35 megawatts.

Briggs called the grant a once-in-a-generation opportunity, with 74 percent paid by the federal government.

The upgrades include replacing two 1998-vintage circuit breakers and three reclosers at Bailey Substation, installing nine automated reclosers across the system, and adding fiber-optic communications and modern relay panels. Briggs said the automation would reduce the average number of customer outages from 3.6 per year to 2.5 per year. Restoration times would improve when outages do occur.

Briggs said two sections of the line represent the weak link in the transmission system. Replacing those sections and doubling the existing underground conductor in another area would strengthen the backbone.

The project would also enable the city to supply power to cruise ships docked at city berths. The current system cannot support that capability. Briggs said the backbone upgrades are necessary before shore power infrastructure can be extended to the waterfront. He added that the project would address increased load at the shipyard, Coast Guard operations, and other maritime activity.

Briggs said the system is inefficient now. Even if power existed at the dock for cruise ships, the utility could not deliver it. With these upgrades, the utility can supply that power.

The grant application requires a resolution showing local commitment to matching funds. Briggs told the council that reviewers look for that commitment and may deem applications without it noncompliant. He asked the council to help bring the grant home. The grants are highly competitive, and reviewers look for local commitment to matching funds.

Council Member Jeremy Bynum said the project represents forward-looking infrastructure planning rather than reactive repairs. Council Member Janalee Gage asked whether cruise passenger vessel tax funds could cover the local match. Mayor Bob Sivertsen said the state capital budget currently includes a little over $9 million for Ketchikan port electrification, which could serve as part of the match.

Acting City Manager Matt McLaren clarified that the resolution authorizes the application but does not commit funds. The council amended the resolution to remove language committing matching funds at this stage. The council would review funding sources if the grant is awarded.