Updated 11:45 p.m.


FAIRBANKS — In what could be the biggest political upset of the year, Sen. Lisa Murkowski conceded the Republican nomination to Fairbanks attorney Joe Miller on Tuesday night.

Murkowski hastily announced a press conference Tuesday afternoon at her Anchorage campaign headquarters after the first day of counting absentee and questioned ballots following the Aug. 24 primary.

After an additional 15,000 ballots were counted, Murkowski still trailed Miller by more than 1,600 votes.

“Based on where we are right now, I don’t see a scenario where the primary will turn out in my favor,” Murkowski said. “For that reason, and for the good of Alaska, I am no conceding the race for the Republican nomination.”

Murkowski thanked all of the volunteers who helped her in her bid for a second full-term, in a campaign she said “stayed on the high-road.”

The senator also seemed to dismiss any possibility of mounting a write-in campaign for the general election, which would be her only chance to get on the ballot. The Alaska Libertarian party said earlier this week they would not replace their candidate with Murkowski.

“Once I complete that term in the Senate here at the start of the year, I’m coming back home,” Murkowski said. “You all know my heart and my soul has always been in Alaska.”

Democratic Sen. Mark Begich, who has worked with Murkowski in the Senate for the past two years, issued a statement shortly after the press conference thanking Murkowski for her work with the state and for assisting him and his staff in setting up their offices.

“I join Alaskans across this state in thanking Sen. Murkowski for her service, and as she said in her speech tonight, I know she will continue to work on behalf of Alaska when she returns home,” Begich said.

Though they come from different parties, Begich said he and Murkowski “agreed on Alaska issues nearly 99 percent of the time.”

Miller, who stopped at his Fairbanks law office with his wife, Kathleen, late Tuesday night said he was surprised that Murkowski conceded so quickly, but felt that adding 300 votes to his lead in the Interior was decisive.

After Murkowski conceded, Miller said he asked for her support in November’s general election.

When Miller announced he was running for Senate in April, the campaign initially garnered little attention until he received the endorsements of former Gov. Sarah Palin and the national Tea Party Express.

Despite that support, however, Miller lagged in the polls ahead of Election Day and was at a severe disadvantage in fundraising.

But a confident Miller said Tuesday he believes his message of fiscal responsibility and sticking to the Constitution resonates throughout the political spectrum.

“It’s a very attractive message, not just to Republican voters, but to undeclared, nonpartisan voters in the state, and I think it will actually attract some Democrats as well,” he said.

Miller said he is not sure how much support he will receive from Republicans in the Lower 48, but will welcome national help.

“We’ve never been very wealthy, but we do expect to bring in enough money to run this campaign in an effective and competitive way,” he said.

Both Randy Ruedrich, chairman of the Alaska Republican Party, and Texas Sen. John Cornyn, chairman of the National Republican Senatorial Committee, offered their congratulations to Miller on Tuesday night.

On the other side of the political spectrum, Sitka Mayor Scott McAdams, the Democratic candidate for U.S. Senate, came out swinging within hours of Murkowski’s concession.

“Lisa Murkowski served Alaska as a state legislator and United States senator with energy and enthusiasm. We agree on the great majority of Alaskan issues. Lisa Murkowski is a class act who always put Alaska first,” McAdams said in a statement. “By contrast, lawyer Joe Miller ran an unfair, nasty campaign that didn’t extend to Lisa Murkowski the respect she deserves. Over the next two months, Alaskans will clearly see the difference between Mr. Miller and me, and it starts with basic decency.”

Contact staff writer Chris Freiberg at 459-7545.