The original dam and power plant was the idea of businessman Frank Reed . It was constructed by the Anchorage Light and Power Company between 1927 and 1929 atop a natural landslide dam in the Eklutna Valley . It regulated the river to the Lower Eklutna Dam which diverted water into the Old Eklutna Power Plant . The lake dam was rebuilt and improved in 1941 after the previous structure failed . During this same year , the population in Anchorage increased greatly with the onset of World War II . To cope with increasing power demand , the United States Bureau of Reclamation proposed the Eklutna Project . It included raising the dam and installing a new power plant opposite Goat Mountain to the north , along the Knik River . The United States Congress authorized the project on 31 July 1950 . Construction began in 1951 and raising the dam commenced the following year . The first generator was commissioned on 8 January 1955 , the second and last on 1 April 1955 . On 1 July 1955 the entire project was complete . The Great Alaska earthquake in March 1964 caused significant damage to the dam , particularly the water intake for the power plant . The intake shifted towards the lake and frozen alluvium beneath and near the dam 's spillway densified , creating voids . Later , in July of the same year , as the ground thawed , two cracks formed near the spillway and portions of the dam filled the void . The dam was deemed unsafe and rehabilitation was carried out until 1966 . In 1997 the Alaska Power Authority sold the dam and power plant to Anchorage Municipal Light and Power , Chugach Electric Association and Matanuska Electric Association for US$ 6 million
Great Alaska earthquake
1964 Alaska earthquake
Eklutna Dam