State proposes giving 5,805 acres to energy authority for Bradley Lake hydro expansion

The Alaska Department of Natural Resources has proposed transferring about 5,805 acres at the head of Kachemak Bay, roughly 23 miles northeast of Homer, to the Alaska Energy Authority at no cost for the Bradley Lake Hydroelectric Project, according to a preliminary decision posted Oct. 2. Public comments are due by 5 pm Nov. 3.

The 120-megawatt hydro project has run since 1991 and produces about 10% of the Railbelt's annual power, the decision says. The energy authority now operates it on state land it leases.

With the land, the authority says it will move forward with the long-planned Dixon Diversion Project. Water from the Dixon Glacier watershed would run through a 4.6-mile tunnel into Bradley Lake, raising the lake 16 feet. The authority estimates the expansion would increase the project's power production by 40%.

The department calls the proposal a "public and charitable" conveyance, a category that lets the state transfer land to another government agency without competitive bidding and below appraised value. The decision would waive the state's right to take the land back. It leaves out land in the Fox River Flats and Kachemak Bay critical habitat areas, and it says public access would generally stay as it is, though the authority may restrict access at times for safety, including during construction.