Politicians, Utility Managers, and Business Owners Meet to Discuss Energy Needs and Local Economy

On July 10, the Copper Valley Development Association (CVDA) hosted an energy and business meeting at the Copper Valley Telecom board room in Glennallen. Local business leaders and utility managers met to discuss topics including tourism, energy and infrastructure, the Gulkana Airport, and the changing nature of Glennallen’s economy.

Some of the roughly 15 members of the community in attendance included Jaime Matthews, CEO of Copper Valley Electric Association; Josh Beug, CEO of Copper Valley Telecom who joined remotely by video; Jason Hoke, CEO of CVDA; as well as individuals from Ahtna, the Glennallen Improvement Corp, and various other local businesses. Also in attendance were U.S. Senator Dan Sullivan and State Representative Rebecca Schwanke.

With Senator Sullivan discussing federal plans to increase the military’s presence in Alaska, Hoke mentioned that the need for energy in our area will dramatically increase. “We want to be our own energy island,” he said, referring to his desire to see the Glennallen area able to sustain its own electric needs.

When Hoke asked how the Copper River Valley will get more power quickly, Matthews emphasized the need to finish getting the federal permits and relicensing applications approved for CVDA’s hydroelectric projects. Senator Sullivan assured her that he was well aware of the slow bureaucratic pace.

Another proposal to increase power to our area involves an interconnected loop that would connect multiple rural communities to the Alaska Railbelt system. According to a CVEA handout provided to invitees via email, the so-called Roadbelt Intertie is ”a proposed 388-mile transmission line that would connect CVEA’s grid, as well as other rural communities along the route (Sutton, Glennallen, Tok, and Delta), to the Alaska Railbelt system,” the same system that provides electricity to more populated areas like Anchorage, Mat-Su Valley, Fairbanks, and Seward. 

Matthews said the infrastructure involved in such a lofty project would not be cost-effective and is “not in the best interest of [CVEA] members” at this time. If funding were made available to create the infrastructure, CVEA would consider the plan.

So while the energy issues in our area remain unsolved, and as CVEA continues to wait (and pay) for permits and approvals to meet federal regulations, business owner James Fields said the cost of heating is so high that the IGA grocery store loses money in the winter. He also mentioned that the number of customers coming to the Hub has continued to decline over the past three years, which is in keeping with what Hoke said that by some estimates statewide tourism is down over 20% and his personal guess after talking to others in the area is that tourism may be down as much as 40% in the Copper River Valley. (Official data for the 2026 tourist season was not readily available.)

A large number of reasons were proposed by attendees to explain a decrease in tourist activity through Glennallen — the cost of fuel increasing ever since the 2008 recession, a declining number of activities for elderly tourists, fewer fishers and hunters traveling through due to seasons being closed early or shut down, and the cost of renting vehicles being so high that tourists who can afford it will often book chartered flights to their final destinations instead of passing through on the Glenn or Richardson Highways.

Even with this noted increase in air charter tourism, plans to enhance and develop the Gulkana Airport have been delayed due to state regulations. Hoke, who in the past has been one of the most enthusiastic proponents of improving the Gulkana Airport as a means to boost the local economy and infrastructure, said that the state and FAA regulations they have run into “put a halt to everything.” Hoke said it could take seven years to meet all the regulatory requirements and that CVDA “can’t pay someone that long to work on this.” He did mention another followup meeting would take place soon.

A common sentiment shared by several attendees was what Fields compared to the question of the chicken and the egg. If there aren’t tourists coming through, how is it financially smart or even feasible to build a hotel or start a business catering to visitors? But if there are no hotels, restaurants, or activities that draw people to the area, how will tourism pick up so that these businesses can not only make a small profit but thrive?

And if even year-round businesses that are necessary for the viability of a local community (such as a grocery store) are losing money every winter because the cost of fuel and heat is so high, what will happen when even more people move away from the area in search of better economic prospects, causing even more hardship on businesses that can’t afford to stay open when the population dwindles to near unsustainable lows?

These somewhat bleak questions didn’t come with easy answers; however, the tenacity and commitment of those involved may leave some hopeful that the right answers will eventually come … perhaps when all of us least expect them.