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The Black Bear Lake hydropower facility on Prince of Wales Island will receive a $112,291 grant from the U.S. Department of Agriculture (USDA) to upgrade its equipment and increase electricity generation. The facility, owned by Alaska Power and Telephone (AP&T), is the oldest of the island’s three hydropower projects and provides the cheapest energy for residents. The upgrades are expected to increase electric generation by 12.5%, equivalent to the demand of 93 homes. This will not only provide more affordable energy for residents, but also help prepare for increased demand as more people switch to electric-powered home heating. The upgrades will also help lower rates for residents by utilizing the island’s abundant renewable energy. However, AP&T faces challenges in taking advantage of grant programs due to taxes imposed on grants since the Tax Cuts and Jobs Act of 2017. The utility hopes for tax reform in the future to make it easier to access grant funds. This grant will have a positive impact on the community by providing more affordable and renewable energy, and setting the stage for future growth.