EnergyAnchorage · February 28, 2026
Anchorage eyes new hydropower
Chugach Electric is exploring four potential hydropower projects as Southcentral Alaska grapples with a natural gas supply crunch.
Daily Alaska staff · February 28, 2026 · Anchorage
Chugach Electric, the utility serving much of Southcentral Alaska including Anchorage, is exploring four new hydropower projects as the region faces a looming natural gas shortage. The utility is examining water power as a long term backup option to help keep the lights on in the Anchorage area and across the Railbelt.
Most of Anchorage's electricity currently comes from natural gas drawn from Cook Inlet. Supply concerns around that gas have pushed utility planners to look harder at renewable options capable of producing steady power year round, rather than relying on a single fuel source.
Hydropower is one of the few local resources that can scale up without importing fuel from outside the region. If even one of Chugach Electric's four projects moves forward, it could change how Anchorage powers homes and businesses over the next decade.
For residents, the push toward hydropower is about keeping energy stable and reliable. For developers and large energy users in Southcentral Alaska, it is about long term certainty in a tightening energy market, as decisions made now will shape the regional grid for years to come.
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