A new fiscal analysis of the Susitna-Watana Hydroelectric Project questions the Alaska Energy Authority’s estimates regarding how much the 735-foot tall dam would cost the State of Alaska, if built. KTNA’s Phillip Manning has this report:
On Monday, economist Gregg Erickson released his analysis of the financial picture of the Susitna-Watana Hydroelectric Project. The report was commissioned by Trout Unlimited, a conservation group that opposes the project. Erickson has worked for the University of Alaska Anchorage, a Washington D.C. think-tank, and in multiple roles for the State of Alaska. He says that, from his perspective, Susitna-Watana doesn’t pencil out.
“There is no market test that this proposed project meets. There’s every evidence that they’ve underestimated the cost and overestimated the demand. It doesn’t seem at all likely that the project could be built without very, very large amounts of state subsidy.” (more…)