Grant Lake Hydroelectric Project

Alaska Electric and Energy Cooperative, Inc. d.b.a. Kenai Hydro, LLC (KHL), has proposed to construct a five-megawatt hydroelectric project that would be located on Grant Lake and Grant Creek, near the community of Moose Pass. The project as proposed would generate approximately 18,600 megawatt hours of energy annually. The Grant Lake Hydroelectric Project will divert water from Grant Lake and deliver the flow to a powerhouse located near the outlet of the existing Grant Creek natural, incised rock canyon.

In May 2019, the Federal Energy Regulatory Commission (FERC) issued a Final Environmental Impact Statement for the proposed Grant Lake Hydroelectric Project followed by an order granting KHL an original license (No. 13212) for the proposed Grant Lake Hydroelectric Project in August 2019. These documents may be accessed in the Federal Documents section below. Construction of the proposed project requires multiple authorizations for the use of state land. More information can be found below.

On February 2, 2021, DMLW received an application for an easement from KHL for portions of infrastructure related to the proposed Grant Lake Hydroelectric Project on DMLW-managed lands, serialized as ADL 233782. The application was most recently amended on February 25, 2022, to adjust the dimensions of the proposed easement to account for an expansion of the associated leasehold. The application requests the grant of an easement approximately 2,400 feet long, 100 feet wide and approximately 5.5 acres in size to authorize a 110-foot single lane bridge spanning the Trail Creek Narrows, a 24-foot wide access road, an aerial transmission line, and communication and control cables. A detailed description of the proposed easement can be found in the Preliminary Decision for ADL 233782.

Preliminary Decision - ADL 233782

On August 31, 2022, DMLW issued a Final Finding and Decision (FFD) to accompany the original Preliminary Decision (PD) for ADL 233782. Responses to comments and concerns raised during the public notice period are detailed within the FFD.

Final Finding and Decision - ADL 233782

On July 19, 2021, DMLW received an application for a public and charitable lease from KHL for the portions of infrastructure related to the proposed Grant Lake Hydroelectric project on DMLW-managed lands, serialized as ADL 233857. The application was most recently amended February 25, 2022, to correctly depict the associated land ownership in the project area as well as update the proposed lease boundary. The application requests a 46.8-acre, more or less, leasehold with the majority being located adjacent to Grant Creek on the southern bank, approximately halfway between Grant Creek and the Trail Creek Narrows with an approximate 5 acres located on the waters of Grant Lake for the associated intake infrastructure. A detailed description of the proposed leasehold can be found in the Preliminary Decision for ADL 233857.

Preliminary Decision - ADL 233857

On August 31, 2022, DMLW issued a Final Finding and Decision (FFD) to accompany the original Preliminary Decision (PD) for ADL 233857. Responses to comments and concerns raised during the public notice period of the PD can be found within the FFD.

Final Finding and Decision - ADL 233857

The DMLW Water Section received a water right application from Kenai Hydro to divert water for the project. Up to 395 cubic feet per second (cfs) will be diverted via a tunnel and returned to Grant Creek at a powerhouse approximately 0.6 miles downstream. The partially dewatered reach (bypass reach) is steep and contains natural barriers blocking salmon from entering Grant Lake. To protect aquatic habitat and macroinvertebrates, minimum flows will be provided in the bypass reach. Downstream of the powerhouse flows will be maintained to protect salmon habitat. Flows downstream of the powerhouse will exceed those in the bypass reach by at least an order of magnitude. Minimum flows in both reaches will vary by season. Minimum flows by season in both reaches are listed on page 6 of the FERC license. The decision was signed by the Commissioner of the Department of Natural Resources on August 31, 2022.

Application for Water Right - LAS 27264

Water Right Decision - LAS 27264

In order to facilitate the project, the Kenai Area Plan (KEAP), the Kenai River Comprehensive Management Plan (KRCMP) and the associated Special Use Designation (SUD) must be amended. The KEAP determines management intent, land-use designations, and management guidelines that apply to all state lands within the planning area. The KRCMP is the basis for management of state land and waters within the Kenai River Special Management Area and other state land within the planning boundaries of the management plan. The SUD provides for the management of recreational uses and development activities that can occur within the SUD boundaries. This hydroelectric facility was not anticipated when these plans were developed. Because economic and social conditions within the area have changed, amendments are necessary to recognize the changing conditions and facilitate authorizations for the Grant Lake Hydroelectric Project.

The final amendments, adopted by the Commissioner of the Department of Natural Resources on August 31, 2022 can be viewed below. Responses to comments and concerns raised during the public notice period can be found within the Issue Response Summary.

Kenai Area Plan Amendment

Kenai River Comprehensive Management Plan & Special Use Designation Amendment

Issue Response Summary

DMLW conducted concurrent 30-day public review and comment periods for the easement/lease, water rights, and plan amendments which closed on May 9, 2022.

Easement Public Notice

Lease Public Notice

Water Right Application Public Notice

Plan Amendment Public Notice

Download Grant Lake Hydroelectric Project Area Map

Final Environmental Impact Statement for Hydropower Licenses. May 2019. Prepared by Federal Energy Regulatory Commission.