The state approved a contract on Monday agreeing to pay Juneau’s new hydroelectric utility $1.3 million to power the controversial Cascade Point Ferry Terminal — a project that has yet to be finalized.
That money will pay for a transformer and submarine cable required to connect the Alaska Department of Transportation’s proposed ferry terminal to the Sweetheart Lake hydroelectric project that Juneau Hydropower plans to bring online in 2028.
According to the contract, the state will pay Juneau Hydropower to purchase the infrastructure whether or not the ferry terminal project proceeds.
“If they live up to their part of the bargain, we would be responsible to pay for that,” said Christopher Goins, southcoast regional director at the department.
Goins said one major reason the state signed this contract now is because the cost would rise if the department decides to electrify later on, after Juneau Hydropower designs its system without this addition.
Duff Mitchell, the managing director of Juneau Hydropower, said the other main reason is that the equipment takes a long time to get here.
“We’re looking at between 52 weeks to over three years, depending on the manufacturer,” he said.
Mitchell said the transformer wouldn’t be used for anything else if the ferry terminal project doesn’t get built.
“If, in fact, it goes forward, then we would use it,” he said. “Otherwise, it will be sitting there waiting for the future.”
The department plans to break ground on the first phase of the ferry terminal project in the summer, which will establish an access road and staging area, but not the terminal itself. The state extended the public comment period on the proposed Cascade Point Ferry Terminal to Jan. 9.
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