Like the eternal question of which comes first, the chicken or the egg, we parallel the Alaskan power program. Ample power is important to the development of a mature and balanced economy, and electrical energy is a magnet that attracts industry, business, and people. It will be needed here to assist in our future growth. I feel a program should be evolved to make available sources of power as an incentive to industrial growth.

House Document 197, prepared by us and published in January 1952, cataloged in excess of 46 billion kilowatt-hours of energy annually available in the lakes, streams, and rivers of Alaska. This vast resource is wealth and requires planning for its wise development and utilization.

Today very little factual information exists for many of our important streams, and present studies of water resources are handicapped because of the paucity of water supply information. Years of water supply data are desirable prior to proceeding with the development of a project; yet many of our streams are without records.

Detailed investigations such as the Bureau is making are essential to evaluate the power sites for development. The program ahead is large and will require years to complete. There is a vast job ahead in the economic development of the Territory, and I believe its progress will largely be governed through the development and utilization of our water resources. Possibly through our studies and reports private capital may become interested in the development of some of these Alaskan projects. In the absence of private capital, Federal assistance will be needed for many of the developments.

While it must be recognized that our investigations are concerned principally with power, there is current interest in irrigation in the Matanuska Valley. We are planning joint studies with the Soil Conservation Service and the Alaska Experiment Station, Palmer, Alaska, to determine increase in crop yield resulting through irrigation. Early spring droughts often retard seed germination, thereby greatly limiting the growing season and reducing crop production.

I have prepared and attached brief summary sheets covering a number of projects previously mentioned or proposed for investigation. This information may be helpful to you in obtaining a more comprehensive picture on a few of the more important projects currently under study or programed for future study.

Mr. O'BRIEN. If there is no objection, the balance of the statement, the part not read by Mr. Roberts, will be made a part of the record immediately following the statement you have read. I think we will be going into some of these projects in further hearings. (The document referred to follows:)

FAIRBANKS AREA

RAMPART PROJECT

One of the few remaining undeveloped hydroelectric power giants under the American flag is the Rampart project site on the Yukon River. At the present time, little is known of the true worth of this vast resource or the part that it could play in the future development of Alaska. It is known, however, that billions of kilowatt-hours could annually be harnessed instead of wasting to the Also it has been estimated that the cost of this energy would compare favorably with generating costs of some of the larger hydroelectric developments in the Pacific Northwest.

sea.

The site lies well within economical transmission distance of the tidewater cities of Anchorage and Seward and is within 100 miles of Fairbanks.

The need for early investigation of this site and the Yukon River in general was recently brought into focus by announcement of Canadian plans to divert the headwaters of the Yukon to another drainage basin. The Yukon is an international river heading in Canada, but coursing 1,400 of its 2,300-mile length in Alaska. If over 18,000 second-feet of water was diverted from the Yukon above the Rampart site, it could affect even the feasibility of such a project. To make a proper evaluation of the effect of Canadian plans for use of the flows of the Yukon, reliable information must be secured on possible American utilization without delay. This information can only be obtained by extensive work in the field.

Location

The dam site would be located on the main stem of the Yukon River about 31 miles downstream from the village of Rampart.

Plan of development

A single-purpose hydroelectric power project. A dam on the Yukon River would create a reservoir with an active storage of about 130 million acre-feet. A powerhouse would be built at the toe of the dam.

Estimate of power cost

Approximately 4 mills or less.

TEKLANIKA PROJECT

It is proposed to study this project with the view of making available to the Healy, Nenana, and Fairbanks areas a small block of low-cost power. Present power rates in these areas are extremely high and there is no foreseeable means of obtaining lower cost power unless hydro sites like Teklanika project and Devil Canyon project are developed to serve the area.

The largest coal mining operations in the Territory are carried on in the Healy area and electric power is a prime requisite.

Present annual nonmilitary energy requirements of Fairbanks and vicinity are about 60 million kilowatt-hours.

It is believed that this project could be investigated and developed quickly and, like Eklutna in the Anchorage area, would serve as a much needed source of supply while other project investigations are carried out.

Teklanika project would develop an estimated annual firm generation of 54 million kilowatt-hours. The installed capacity would be about 12,000 kilowatts. Location

The project site is located at river mile 66 on the Teklanika River, principal tributary of the Nenana River.

BIG DELTA-FAIRBANKS AREA

CATHEDRAL BLUFFS

Among the important projects which should be investigated in the near future is the Cathedral Bluffs project site on the Tanana River. Located approximately 179 miles from Fairbanks this project could supply the Fairbanks-Big Delta area with an estimated 100,000 kilowatt capacity.

Here again, however, relatively little is known about the site and development features, and costs are vague. Extensive engineering and geological investigations are needed to determine the value of this potential hydroelectric power source to the area.

RAILBELT AREA

DEVIL CANYON PROJECT

It is proposed to study for development 195,000 kilowatts of hydrogeneration at the Devil Canyon site, Susitna River.

The project would be built to serve the railbelt area extending from Fairbanks to Anchorage to the Kenai Peninsula. It would materially aid in the settlement of the region and in the development of a permanent economy to sustain the popu lation growth. Without a plentiful supply of electrical energy this area will continue to be greatly handicapped for independent development.

The project is centrally located and is within economic transmission distance to all present and future railbelt markets. Its development would provide Anchorage, Fairbanks, and immediate points with sufficient electrical energy to sustain a large population growth and to supply the requirements of an initial industrial expansion.

Completion of the Eklutna project near Anchorage has relieved the power shortage of that portion of the railbelt for the present, but Eklutna's entire capacity has been contracted for and should be fully utilized within a year. Twenty-five percent consumer rate reductions by the city of Anchorage as a result of Eklutna power should accelerate the increasing load on that utility. This will mean turning to more expensive means of generation for a source of supply unless thre is continuing hydroelectric development.

In the Fairbanks area minimum cost of present generation is about 20 mills per kilowatt-hour. In spite of this burden, the present nonmilitary annual load is about 60 million kilowatt-hours.

Average generation costs on the Kenai Peninsula, where central station power is available, are in excess of 25 mills.

It is obvious that industry cannot afford to pay the resultant retail rates. At least 2 years of additional field investigations before the project could be started. By the time it could be completed and on the line the power market should have expanded considerably.

Natural resources of the area consisting of timber, minerals, and agricultural lands could be more readily utilized and developed once ample power is available. It is of vital importance to the people, to the growth of Alaska, and to the whole Alaskan economy that this project be accomplished.

Location

Project site is located at river mile 134 on the main stem of the Susitna River in south central Alaska.

Plan of development

A single purpose hydroelectric power project. A dam on the Susitna River would impound about 2,930,000 acre feet of water. The powerhouse would extend along the right bank of the river starting at the toe of the dam. Transmission lines would extend to Fairbanks and to Anchorage.

Estimate of power cost

Approximately 9 mills or less.

ANCHORAGE AREA

CARIBOU PROJECT

The Caribou project is under investigation at the present time by the Bureau of Reclamation. Engineering and geologic field work has been carried on throughout the summer of 1955 and is still in progress. Preliminary estimates place the power potential of the project at about 30,000 kilowatts installed capacity revealing the project to be about the same size as Eklutna.

The need for additional hydroelectric power in the area in the near future is recognized by local utility systems. This is best illustrated by the advancement of $2,000 to the Bureau by the Matanuska Electric Association for stream gaging on Caribou Creek. A grant of $8,000 by the city of Anchorage was made to the Bureau in August 1955, to help complete the Caribou project investigation. Location

Located on Caribou Creek at about mile 110 on the Glenn Highway and northeast of Anchorage.

COPPER RIVER AREA

WOOD CANYON

The Wood Canyon project on the Copper River could be compared in size to the Boulder Canyon project on the Colorado. An estimated 6,700 million kilowatthours of firm energy could be generated at this site annually. The project is located close to the tidewater town of Cordova and favorably located with respect to possible industrial areas.

Private industry has expressed an interest in making this development and the Federal Power Commission awarded the Harvey Aluminum Co. a preliminary permit to investigate the project. These investigations must include provisions n the plan of development for salmon escapement above any dam built at this

site. In the event the project investigations are abandoned by private industry, they should be completed by the Federal Government. Development of this project could prove to be of immense economic and industrial importance to the Territory.

Location

On the Copper River about 3 miles below the confluence of the Copper and Chiting Rivers and about 75 air miles northeast of Cordova.

JUNEAU AREA

LAKE DOROTHY PROJECT

A preliminary award of 71⁄2 billion board-feet of timber in the Tongass National Forest was recently made to the Georgia-Pacific Alaska Corp. by the United States Department of Agriculture. It is planned to use this timber as the raw material for a paper pulp mill located in the vicinity of Juneau. In all probability the process will be complete and the finished product will be newsprint paper.

Pulping for newsprint is a mechanical process and a great deal of power is required. A portion of this power is generated at the mill, but it is estimated that at least 70 million kilowatt-hours will be required annually from an outside source. It is estimated that total power requirements for the Juneau area were about 30 million kilowatt-hours in 1954. If the mill is in operation by 1962, the power requirements for that year, which will be placed on the utilities systems, will probably exceed 150 million kilowatt-hours.

There is presently located in the area a firm hydroelectric plant capacity of about 7,200 kilowatts and a diesel capacity of 2,500 kilowatts. The 1954 coincidental peak was estimated to be at least 6,500 kilowatts revealing that the lower cost hydro winter peaking capability of the area has nearly been reached.

The Lake Dorothy project with a potential firm output of 127 million kilowatthours and an installed capacity of 26,000 kilowatts is proposed for development to provide a continued source of low-cost energy. This power source will be desperately needed when construction of the pulp mill is begun.

Location

Sixteen miles southeast of Juneau in Southeastern Alaska.

SITKA AREA

BLUE LAKE PROJECT

Construction of a pulp mill in the Sitka area is planned by the Alaska Pulp Co. The resultant population influx plus the probable increase of commercial and small industrial activities will create an immediate power shortage.

Sitka is presently receiving its power supply from the Alaska Native Service installation of Mount Edgecumbe on Japonski Island. This power is generated by an oil-fired steam plant of 3,000 kilowatts capacity. Due to winter steam heating loads and limited boiler capacity, however, the peaking capability available in winter is about 2,000 kilowatts. The combined power load of the area will probably reach this peak in 1955.

Initial studies have been made of the Blue Lake project, and it is proposed that 11,000 kilowatts of firm generation be provided for this community to assist them with their growth and development problems. Power would also serve the Mount Edgecumbe area. An annual firm generation of 54 million kilowatt-hours would be available from the project. It is estimated that a period of 15 years will be required to utilize the full capacity of the plant but even so the average mill rate per kilowatt-hour would be less than the present cost of generation and in addition a firm, dependable source of power would be available as needed.

Location

Approximately 7 miles east of Sitka on Baranof Island in southeast Alaska.

KETCHIKAN AREA

SWAN LAKE PROJECT

Completion of the $46 million pulp mill near Ketchikan in early 1954 est: blished a large, basic industry for that area.

To meet the greatly increased power loands the Ketchikan Public Utilities enlarged their hydroelectric facilities at Beaver Falls. The present hydroelectric

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peaking capacity of the utility system is 9,058 kilowatts. Installed diesel capacity of 942 kilowatts raises the total to a peaking capacity of 10,000 kilowatts. It has been estimated that this peak will be reacked by 1958. Considering the financial limits of a small Alaskan town, Ketchikan will probably be forced to meet additional loads with additional diesel capacity.

Development of Swan Lake project would furnish 15,000 kilowatts to serve the Ketchikan area. At present load growth it would require a period of several years before the project potential of 71 million kilowatt-hours could be fully utilized. The availability of this supply to meet the power needs as they arise would do much to attract new, small industries and further diversify the economy. This is an area rich in timber and mineral resources; however, an ample, relatively low-cost power supply is needed before the ultimate benefits from these potential gifts can be realized.

Cost of power will be about 12 mills.

Location

The project site is located about 22 air miles northeast of Ketchikan in southeastern Alaska. Ketchikan and Swan Lake are both situated on Revillagigedo Island.

SKAGWAY AREA

YUKON-TAIYA

With a potential installed capacity of over 2,200,000 kilowatts, the Taiya project could be developed into the largest single hydroelectric power project under the American flag. Utilizing the headwaters of the Yukon River, this transmountain diversion would have the advantage over other potential downstream power sites by having its power source located near tidewater.

This project was jointly studied by the Bureau of Reclamation and the Canadian Government in 1950 and an interim report issued. Continuing studies were planned but canceled out by the Canadians.

The Yukon-Taiya power development could be accomplished by stages with an ultimate installed capacity of over 2,200,000 kilowatts of prime power.

The Yukon has its beginning in the Province of British Columbia, travels some 900 miles through British Columbia and Yukon Territory, Canada, and completes its 2,300-mile course in Alaska. Any diversion of the headwaters of this international river such as the Taiya development or the Taku development (a proposed all-Canadian diversion to the Taku River south of Juneau) would affect those main stem power sites downstream.

How this project is developed is of vital concern to all Alaska. It could have a far-reaching effect on the future economy of the Territory. Prior to any development considerable additional information is needed for study to determine optimum utilization of this river.

Mr. ABBOTT. Mr. Roberts, you will be available, and your office people, for the committee hearings in Juneau?

Mr. ROBERTS. Yes; we will be available. If there are any requirements for some of us being with you in Anchorage, we will be glad to do that also.

Mr. ABBOTT. In both places, I might add, perhaps questions will be raised on the coordination between the Corps of Engineers, the military, and some of its electric-energy development. It might be well if the Bureau of Reclamation had someone present at Anchorage.

Mr. ROBERTS. If there is something of that nature, I will probably need to appear myself. So if I can adhere to your schedule, I will arrange to be in Anchorage and be available for those hearings. Mr. O'BRIEN. Are there any questions?

Thank you very much, Mr. Roberts.

Mr. ABBOTT. I believe we have Mr. Clarence Rhode, representing the Fish and Wildlife Service. Mr. McKernan, in charge of fisheries, was not able to be present.