Alaskans who support one of the two major U.S. political parties got some, but not all, of what they were hoping for when nationwide election results rolled in Tuesday night.

Republican vice-presidential candidate and Alaska Gov. Sarah Palin votes Tuesday at Wasilla City Hall in Wasilla, Alaska. (Ted S. Warren/Associated Press)

Alaska Gov. Sarah Palin will return to her home state, after she and Senator John McCain lost their presidential bid to Democrats Barack Obama and Joe Biden.

Despite Palin's defeat as vice-president, Republicans in the northern state said they were relieved to learn their two senior Congress members may be hanging on for another term.

"They've done a terrific job for us for the last 40 years, and they have really helped build Alaska into what it is today," Connie Mackenzie, chairwoman of Capital City Republican Women, told CBC News Tuesday night in Juneau, Alaska.

"We look forward to returning them to Washington."

In the race for Alaska's lone House of Representatives seat, Republican Rep. Don Young edged out Democrat Ethan Berkowitz to secure his 19th term.

Stevens' future still uncertain

But the race for the Alaska's Senate seat remains uncertain: Senator Ted Stevens led with 48 per cent of the vote, compared with 47 per cent for two-term Anchorage Mayor Mark Begich, who ran for the Democrats.

About 96 per cent of precincts reported by the end of Tuesday night. But with more than 40,000 absentee ballots to be counted within 10 days of the election, Stevens went home late Tuesday to get some sleep.

Stevens was convicted last month of accepting hundreds of thousands of dollars in gifts and services to renovate his home, and not disclosing them.

Since Stevens was found guilty of seven felonies, he has refused pleas from his own party leaders to step down, including a plea from McCain, who said the Alaska senator had "broken his trust with the people."

Instead, Stevens — known for his short fuse in the Senate when his colleagues don't see things his way — has vowed to fight the conviction, even arguing that he isn't really convicted until he's gone through the appeals process, including perhaps requesting a new trial.

VP run 'just the beginning' for Palin

Earlier Tuesday, Palin voted in her hometown of Wasilla, Alaska, before flying to Phoenix, Ariz., to watch the results with McCain.

In Wasilla, McCain's concession was broadcast on large screen TVs inside the city's sports centre at what was supposed to be a victory rally. Onscreen, viewers saw Palin fight tears as McCain praised her.

"I think America made a big mistake," Phil Straka, a professional photographer, told the Associated Press.

But Beryl Kring looked ahead: "It's just the beginning for Sarah. She'll be on the ticket in 2012," Kring said.

Regardless of how Palin fared, some in Alaska told CBC News that the state — and its Canadian neighbour, the Yukon — could reap benefits from Palin's time in the limelight.

"Tourism hits are up and people are more interested in Alaska," said Jessica Braun, the publisher and editor of the Alaska Budget Report, an independent publication that covers the Alaska state legislature.

"In some ways, it's been a positive."

With the McCain-Palin ticket defeated, Palin will soon resume her original job as Alaskan governor — a post she has held since 2006 — but face a deeply divided state legislature.

'I will never trust her,' state legislator says

Earlier this year, Palin awarded a $500-million subsidy to Calgary-based TransCanada Pipelines Ltd. to begin work on a multibillion-dollar natural gas pipeline from Alaska's North Slope, down through the Yukon and British Columbia to the southern 48 states.

State Democrats who had helped pass Palin's pipeline measure now say they have lost faith in the governor after hearing her campaign rhetoric on the national stage.

"I will never trust her," Democratic Rep. Beth Kerttula told CBC News. "I will always be careful because of the things that I have seen her do nationally."

Democratic State Senator Kim Elton agreed, saying he's not sure if Palin can garner support from Washington for the pipeline, especially after her loss to Obama.

"I don't know how her voice will be heard in Washington, D.C., after she has campaigned saying that Senator Obama has palled around with terrorists, or Senator Obama is a faux feminist, or Senator Obama is a socialist," Elton said.

Palin will not have much time to mend fences with her state colleagues, as the Alaska legislature sits again in January.

With files from the Associated Press