Alaska Electric Light &Power Co. will build, own, and operate the project (No. 12379), which will tie into its distribution system. Part of bond proceeds also will pay for other capital improvements to AEL&P's generation and distribution system, the authority said.
AIDEA Executive Director Ron Miller said, because the bonds are tax-exempt, AEL&P customers will save $6 million over the term of the bonds, and help keep AEL&P's rates among the state's lowest. AIDEA provides financing to promote economic growth and diversification. The board approved the bond plan March 29.
The project previously was licensed to Lake Dorothy Hydro Inc. The Federal Energy Regulatory Commission transferred the license April 25 to AEL&P from Lake Dorothy Hydro, an AEL&P affiliate.
On April 10, FERC granted the licensee's application to relocate the powerhouse and replace a debris dam and previously approved lake tap at Bart Lake with a new low-level rockfill diversion dam, intake, and outlet works. The completion deadline is Dec. 23, 2008.
AEL&P operates AIDEA's 78-MW Snettisham hydropower project, which the authority acquired from the federal government in 1998 for more than $81 million.