Railbelt Utilities Request State to Update Data on Susitna-Watana Hydro

Last Updated: 
May 21, 2025

PALMER, Alaska — Matanuska Electric Association(MEA), in partnership with fellow Railbelt utilities, has signed a joint letter urging the State of Alaska to complete the federal licensing process for the Susitna-Watana Hydroelectric Project by pursuing the Federal Energy Regulatory Commission (FERC) license. The letter, addressed to Governor Mike Dunleavy, comes in response to increasing interest and inquiries from legislators and stakeholders across the state about the potential for long-term, clean, and dispatchable energy solutions.

Hydropower was chosen as one of the top three preferred clean energy sources by 65% of MEA members in a recent scientific member survey. With an uncertain future natural gas supply and a Board-directed goal of achieving 50% clean energy by 2050, MEA views hydropower as a proven and stable resource that can deliver firm, reliable power without requiring additional spinning reserves.

“The MEA Board has directed staff to leave no stone unturned in our quest for economic and reliable energy solutions for our members,” said MEA CEO Tony Izzo. “Pursuing the Susitna-Watana license helps preserve the significant state investment already made in this project and keeps a critical option on the table as we diversify our fuel portfolio.”

The 459-megawatt project could supply up to 50% of the Railbelt’s electric demand, offsetting up to 24 billion cubic feet of natural gas annually. In a time of growing concern about cost and supply of natural gas, a diversified energy mix is essential for long-term affordability, grid stability, and energy security.

MEA acknowledges that there are differing perspectives about the Susitna-Watana project, especially among members in the Talkeetna area and surrounding communities. MEA remains committed to open dialogue and expects the remainder of the permitting process to include robust opportunities for public input. “We value and welcome all feedback,” said Izzo. “Our goal is to ensure our members are informed and engaged as we plan for our energy future.”

If the project does move forward, MEA will work to ensure its members benefit equitably from its development, as was the case with the successful Bradley Lake Hydroelectric Project.

The full letter submitted by the Railbelt Utilities to Governor Dunleavy can be viewed below.

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