Pelican's hydro plant can keep running while FERC reviews a new license

Pelican's city-owned hydroelectric plant can keep running under the terms of its expired federal license while regulators review the city's application for a new one, the Federal Energy Regulatory Commission said in a notice signed Tuesday. The old license expired Sept. 16.

Under federal law, the commission issues an annual license when a license expires before it has acted on a new one. This one runs through Sept. 16, 2027, and renews automatically if no new license has been issued, unless the commission orders otherwise.

The 0.7-megawatt plant on Pelican Creek uses a rock-filled crib dam 22 feet high and runs on the creek's natural flow rather than on water stored behind the dam.

The city applied for a new license in September 2024. In May, commission staff said they don't anticipate that relicensing would significantly affect the environment and set a target of Jan. 29, 2027, to issue an environmental assessment, which the commission will consider in its decision.

The Alaska Energy Authority has awarded the city $650,474 from its Renewable Energy Fund for the plant's relicensing, restoration and repair. The project ranked first among the six awarded in the fund's 17th round.