AK
Alaska Senate Bill SB217

Alaska 2023-2024 Regular Session

Alaska Senate Bill SB217 Compare Versions

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10-CS FOR SENATE BILL NO. 217(RES)
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11+ SENATE BILL NO. 217
1112
1213 IN THE LEGISLATURE OF THE STATE OF ALASKA
1314
1415 THIRTY-THIRD LEGISLATURE - SECOND SESSION
1516
16-BY THE SENATE RESOURCES COMMITTEE
17+BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
1718
18-Offered: 4/30/24
19-Referred: Finance
19+Introduced: 2/2/24
20+Referred: Resources, Labor and Commerce, Finance
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21-Sponsor(s): SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
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2223 A BILL
2324
2425 FOR AN ACT ENTITLED
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26-"An Act relating to the Regulatory Commission of Alaska; relating to regulation of 1
27-public utilities and pipeline carriers; relating to net metering; relating to approval of 2
28-wholesale power agreements; relating to preapproval for construction of energy 3
29-facilities; relating to electric reliability organizations; relating to the taxation of 4
30-independent power producers; relating to the Alaska Energy Authority; relating to the 5
31-Railbelt Transmission Organization; and providing for an effective date." 6
32-BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 7
33- * Section 1. AS 42.04.020(a) is amended to read: 8
34-(a) The commission consists of five commissioners appointed by the governor 9
35-and confirmed by the legislature in joint session. To qualify for appointment as a 10
36-commissioner, a person must 11
37-(1) be a member in good standing of the Alaska Bar Association with
38-12
39-at least five years of actual experience in the practice of law; 13 33-GS2489\U
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27+"An Act relating to the taxation of independent power producers; and increasing the 1
28+efficiency of integrated transmission system charges and use for the benefit of 2
29+ratepayers." 3
30+BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
31+ * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 5
32+to read: 6
33+PURPOSE. The purpose of this Act is to eliminate the charging of inefficient 7
34+transmission rates for integrated transmission systems that are also subject to the integrated 8
35+resource planning process of an electric reliability organization. 9
36+ * Sec. 2. AS 10.25.540(b) is amended to read: 10
37+(b) Before March 1 of each year, 11
38+(1) each telephone cooperative shall pay to the state, instead of state 12
39+and local ad valorem, income, and excise taxes that may be assessed or levied, a 13
40+percentage of its gross revenue earned during the preceding calendar year; 14 33-GS2489\A
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43-(2) be a professional engineer registered under AS 08.48; or 1
44-(3) have a degree from an accredited college or university with a major 2
45-in [ENGINEERING,] finance, economics, accounting, business administration, or 3
46-public administration and at least five years of actual experience in the field 4
47-associated with the degree. [ACTUAL EXPERIENCE FOR A PERIOD OF FIVE 5
48-YEARS IN THE PRACTICE OF LAW OR IN THE FIELD OF ENGINEERING, 6
49-FINANCE, ECONOMICS, ACCOUNTING, BUSINESS ADMINISTRATION, OR 7
50-PUBLIC ADMINISTRATION IS EQUIVALENT TO A DEGREE.] 8
51- * Sec. 2. AS 42.04.020(f) is amended to read: 9
52-(f) Members of the commission are in the exempt service and are entitled to a 10
53-monthly salary equal to a step in Range 29 [RANGE 27] of the salary schedule in 11
54-AS 39.27.011(a) for Juneau, Alaska. The chair of the commission is entitled to a 12
55-monthly salary equal to a step in Range 29 [RANGE 27] of the salary schedule in 13
56-AS 39.27.011(a) for Juneau, Alaska. 14
57- * Sec. 3. AS 42.05.254(a) is amended to read: 15
58-(a) A regulated public utility or a certificated utility that provides 16
59-telecommunications services operating in the state shall pay to the commission an 17
60-annual regulatory cost charge in an amount not to exceed the maximum percentage of 18
61-adjusted gross revenue that applies to the utility sector of which the utility is a part. 19
62-The regulatory cost charges that the commission expects to collect from all regulated 20
63-utilities and certificated utilities providing telecommunications services may not 21
64-exceed the sum of the following percentages of the total adjusted gross revenue of all 22
65-regulated public utilities and certificated utilities providing telecommunications 23
66-services derived from operations in the state: (1) not more than .98 [.7] percent to fund 24
67-the operations of the commission, and (2) not more than .22 [.17] percent to fund 25
68-operations of the public advocacy function under AS 42.04.070(c) and 26
69-AS 44.23.020(e) within the Department of Law. An exempt utility that does not 27
70-provide telecommunications services shall pay the actual cost of services provided to 28
71-it by the commission. 29
72- * Sec. 4. AS 42.05.381 is amended by adding a new subsection to read: 30
73-(p) A determination of whether an electric utility's rate is just and reasonable 31 33-GS2489\U
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44+(2) each electric cooperative and independent power producer shall 1
45+pay to the state, instead of state and local ad valorem, income, and excise taxes that 2
46+may be assessed or levied, a tax on the number of kilowatt hours of electricity sold at 3
47+retail by the cooperative or independent power producer during the preceding 4
48+calendar year; for the purposes of this paragraph, "independent power producer" 5
49+means a utility that only sells wholesale power to cooperative or municipal 6
50+utilities. 7
51+ * Sec. 3. AS 42.05 is amended by adding new sections to read: 8
52+Article 11A. Integrated Transmission System Cost Recovery. 9
53+Sec. 42.05.900. Findings. The legislature finds that, for an integrated 10
54+transmission system that is subject to the integrated resources planning process of an 11
55+electric reliability organization, 12
56+(1) the elimination of per-unit wholesale transmission charges will 13
57+increase the efficiency by which electricity service is provided; 14
58+(2) the elimination of multiple pancaked rates is essential to the people 15
59+of the state; and 16
60+(3) the actual, reasonable costs to own and operate an integrated 17
61+transmission system should be fairly recovered from the load-serving entities 18
62+connected to the integrated transmission system. 19
63+Sec. 42.05.905. Integrated transmission system cost recovery. (a) The 20
64+commission shall establish a transmission cost recovery mechanism to ensure that the 21
65+actual, reasonable costs of owning and operating an integrated transmission system are 22
66+recovered to achieve the findings stated in AS 42.05.900. The transmission cost 23
67+recovery mechanism must take into account each load-serving entity's load in 24
68+comparison to the total load on the integrated transmission system. 25
69+(b) The commission shall develop a process to gradually transition the 26
70+collection of transmission costs recovered through a load-serving entity's base rates 27
71+and wheeling charges to tariffs that reflect the transmission cost recovery mechanism. 28
72+Sec. 42.05.910. Integrated transmission system association. (a) The 29
73+commission shall require all utilities that own or operate a portion of an integrated 30
74+transmission system and are subject to an electric reliability organization to form an 31 33-GS2489\A
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77-may consider whether the purpose of the rate is to increase diversity of supply, 1
78-promote load growth, or enhance energy reliability or energy security. 2
79- * Sec. 5. AS 42.05 is amended by adding a new section to read: 3
80-Sec. 42.05.395. Net metering. (a) A load-serving entity shall monthly credit in 4
81-a tariff the account of a retail customer for the number of kilowatt-hours, at the full 5
82-retail rate per kilowatt-hour, of electric energy supplied by the customer's distributed 6
83-energy system to the load-serving entity. The tariff may not limit the aggregate 7
84-capacity that customers may install unless the commission, after a hearing, finds that 8
85-capacity limitation is necessary to protect system reliability. 9
86-(b) For up to seven years after a customer's distributed energy system is 10
87-connected to the load-serving entity and generates power, a credit under (a) of this 11
88-section that exceeds the customer's monthly bill for service will roll over to the 12
89-following month and continue to roll over until used. Unused credits expire on 13
90-March 31 of each year. 14
91-(c) The credits under (b) of this section are not available for a distributed 15
92-energy system installed before July 1, 2024. 16
93-(d) In this section, 17
94-(1) "distributed energy system" means a renewable energy resource 18
95-that is located on any property owned or leased by a customer within the service 19
96-territory of the load-serving entity that is interconnected on the customer's side of the 20
97-utility meter; 21
98-(2) "load-serving entity" has the meaning given in AS 42.05.790. 22
99- * Sec. 6. AS 42.05.431(b) is amended to read: 23
100-(b) A wholesale power agreement between public utilities, or between a 24
101-public utility and an independent power producer, is subject to advance approval 25
102-of the commission. A rate set in accordance with a wholesale power agreement 26
103-must reflect a tax exemption or government subsidy provided to a utility or 27
104-independent power producer. After a wholesale power agreement is in effect, the 28
105-commission may not invalidate any purchase or sale obligation under the agreement. 29
106-However, if the commission finds that rates set in accordance with the agreement 30
107-violate this subsection or are not just and reasonable, the commission may order the 31 33-GS2489\U
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111-parties to negotiate an amendment to the agreement and if the parties fail to agree, to 1
112-use the dispute resolution procedures contained in the contract. In this subsection, 2
113-"independent power producer" means a person, other than a public utility, that 3
114-owns or operates a facility for the generation of electricity. 4
115- * Sec. 7. AS 42.05 is amended by adding a new section to read: 5
116-Sec. 42.05.705. Preapproval for construction of energy facility. The 6
117-commission may not require preapproval under this chapter for construction of an 7
118-energy facility that is 8
119-(1) an electric power generating plant or combination of plants at a 9
120-single site with a combined capacity of less than 15,000 kilowatts; or 10
121-(2) an energy storage device or combination of devices at a single site 11
122-with a combined capacity of less than 15,000 kilowatts. 12
123- * Sec. 8. AS 42.05.762 is amended to read: 13
124-Sec. 42.05.762. Duties of an electric reliability organization. An electric 14
125-reliability organization shall 15
126-(1) develop reliability standards that provide for an adequate level of 16
127-reliability of an interconnected electric energy transmission network; 17
128-(2) develop integrated resource plans under AS 42.05.780(a); 18
129-(3) establish rules to 19
130-(A) ensure that the directors of the electric reliability 20
131-organization and the electric reliability organization act independently from 21
132-users, owners, and operators of the interconnected electric energy transmission 22
133-network; 23
134-(B) equitably allocate reasonable dues, fees, and other charges 24
135-among all load-serving entities connected to the interconnected electric energy 25
136-transmission network for all activities under AS 42.05.760 - 42.05.790; 26
137-(C) provide fair and impartial procedures for the enforcement 27
138-of reliability standards; 28
139-(D) provide for reasonable notice and opportunity for public 29
140-comment, due process, openness, and balancing of interests in exercising its 30
141-duties; [AND] 31 33-GS2489\U
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145-(4) be governed by a board that 1
146-(A) includes as nonvoting members the chair of the 2
147-commission or the chair's designee and the attorney general or the attorney 3
148-general's designee; and 4
149-(B) is formed as 5
150-(i) an independent board; 6
151-(ii) a balanced stakeholder board; or 7
152-(iii) a combination independent and balanced 8
153-stakeholder board; and 9
154-(5) prioritize the reliability and stability of the interconnected 10
155-bulk-electric system served by the electric reliability organization while 11
156-considering cost to the consumer. 12
157- * Sec. 9. AS 42.05.770 is amended to read: 13
158-Sec. 42.05.770. Regulations. The commission shall adopt regulations 14
159-governing electric reliability organizations, reliability standards, and modifications to 15
160-reliability standards consistent with this section. Regulations under AS 42.05.760 - 16
161-42.05.790 must 17
162-(1) require that an electric reliability organization's tariff include 18
163-[(A) STANDARDS FOR] nondiscriminatory standards for 19
164-[OPEN ACCESS TRANSMISSION AND] interconnection; 20
165-[(B) STANDARDS FOR TRANSMISSION SYSTEM COST 21
166-RECOVERY;] 22
167-(2) provide a process to identify and resolve conflicts between a 23
168-reliability standard and a function, rule, tariff, rate schedule, or agreement that has 24
169-been accepted, approved, adopted, or ordered by the commission; 25
170-(3) allow an electric reliability organization to recover its costs through 26
171-surcharges added to the rate for each participating load-serving entity. 27
172- * Sec. 10. AS 42.05.772 is amended by adding a new subsection to read: 28
173-(b) A load-serving entity, including a load-serving entity otherwise exempt 29
174-from regulation under this chapter, in an interconnected bulk-electric system served by 30
175-an electric reliability organization shall adhere to the electric reliability organization's 31 33-GS2489\U
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179-reliability standards and coordinate with the electric reliability organization and, if 1
180-applicable, the Railbelt Transmission Organization to integrate the electric reliability 2
181-organization's reliability standards into operational procedures. 3
182- * Sec. 11. AS 42.05.790 is amended by adding new paragraphs to read: 4
183-(8) "Railbelt" has the meaning given in AS 44.83.750; 5
184-(9) "Railbelt Transmission Organization" means the transmission 6
185-organization established by AS 44.83.700. 7
186- * Sec. 12. AS 42.06.286(a) is amended to read: 8
187-(a) A pipeline carrier operating in the state shall pay to the commission an 9
188-annual regulatory cost charge in an amount not to exceed the sum of the following 10
189-percentages of gross revenue derived from operations in the state: (1) not more than 11
190-.98 [.7] percent to fund the operations of the commission, and (2) not more than .22 12
191-[.17] percent to fund operations of the public advocacy function under 13
192-AS 42.04.070(c) and AS 44.23.020(e) within the Department of Law. A regulatory 14
193-cost charge may not be assessed on pipeline carrier operations unless the operations 15
194-are within the jurisdiction of the commission. 16
195- * Sec. 13. AS 43.98 is amended by adding a new section to read: 17
196-Article 2A. Taxation of Independent Power Producers. 18
197-Sec. 43.98.100. Taxation of independent power producers. (a) An 19
198-independent power producer is not subject to state and local ad valorem, income, and 20
199-excise taxes if the independent power producer only sells 21
200-(1) wholesale power; and 22
201-(2) to cooperative or municipal utilities. 23
202-(b) In this section, 24
203-(1) "independent power producer" means a person, other than a public 25
204-utility, that owns or operates a facility for the generation of electricity; 26
205-(2) "public utility" and "utility" have the meaning given in 27
206-AS 42.05.990. 28
207- * Sec. 14. AS 44.83.030 is amended to read: 29
208-Sec. 44.83.030. Membership of the authority. The members of the board of 30
209-directors of the authority [ALASKA ENERGY AUTHORITY] are 31 33-GS2489\U
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213-(1) the commissioner of revenue; 1
214-(2) the commissioner of commerce, community, and economic 2
215-development; and 3
216-(3) six public members appointed by the governor as follows: 4
217-(A) one member with expertise or experience in managing 5
218-or operating an electric utility that is not connected to an interconnected 6
219-electric energy transmission network as defined in AS 42.05.790; 7
220-(B) one member with expertise or experience in developing 8
221-energy projects in rural communities; 9
222-(C) one member with expertise or experience in managing 10
223-or operating an electric utility connected to an interconnected electric 11
224-energy transmission network as defined in AS 42.05.790; 12
225-(D) one member with financial expertise in large power 13
226-generation project development; and 14
227-(E) two members with expertise or experience in finance, 15
228-energy policy, energy technology, engineering, law, or economics [THE 16
229-MEMBERS OF THE ALASKA INDUSTRIAL DEVELOPMENT AND 17
230-EXPORT AUTHORITY]. 18
231- * Sec. 15. AS 44.83.030 is amended by adding new subsections to read: 19
232-(b) If the commissioner described in (a)(1) or (a)(2) of this section is unable to 20
233-attend a meeting of the authority, the commissioner may, by an instrument in writing 21
234-filed with the authority, designate a deputy or director to act in the commissioner's 22
235-place as a member of the board at the meeting. For all purposes of this chapter, the 23
236-designee is a member of the board at the meeting. 24
237-(c) Public board members described in (a)(3) of this section serve for three-25
238-year terms. 26
239-(d) If a vacancy occurs in the membership of the board, the governor shall 27
240-immediately appoint a member for the unexpired portion of the term. 28
241- * Sec. 16. AS 44.83.040(a) is amended to read: 29
242-(a) The board of directors of the authority shall elect a chair and vice-chair 30
243-every two years from among its members [OF THE ALASKA INDUSTRIAL 31 33-GS2489\U
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247-DEVELOPMENT AND EXPORT AUTHORITY SHALL SERVE AS OFFICERS 1
248-OF THE ALASKA ENERGY AUTHORITY]. The powers of the authority 2
249-[ALASKA ENERGY AUTHORITY] are vested in the board of directors, and five 3
250-board members [FOUR DIRECTORS OF THE AUTHORITY] constitute a quorum. 4
251-Action may be taken and motions and resolutions adopted by the authority 5
252-[ALASKA ENERGY AUTHORITY] at a meeting by the affirmative vote of at least 6
253-five board members [A MAJORITY OF THE DIRECTORS]. The members of the 7
254-board of directors of the authority [ALASKA ENERGY AUTHORITY] serve 8
255-without compensation, but they shall receive the same travel pay and per diem as 9
256-provided by law for board members under AS 39.20.180. 10
257- * Sec. 17. AS 44.83.080 is amended to read: 11
258-Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 12
259-purposes, the authority has the following powers in addition to its other powers: 13
260-(1) to sue and be sued; 14
261-(2) to have a seal and alter it at pleasure; 15
262-(3) to make and alter bylaws for its organization and internal 16
263-management; 17
264-(4) to adopt regulations governing the exercise of its corporate powers; 18
265-(5) to improve, equip, operate, and maintain power projects and bulk 19
266-fuel, waste energy, energy conservation, energy efficiency, and alternative energy 20
267-facilities and equipment; 21
268-(6) to issue bonds to carry out any of its corporate purposes and 22
269-powers, including the establishment or increase of reserves to secure or to pay the 23
270-bonds or interest on them, and the payment of all other costs or expenses of the 24
271-authority incident to and necessary or convenient to carry out its corporate purposes 25
272-and powers; 26
273-(7) to sell, lease as lessor or lessee, exchange, donate, convey, or 27
274-encumber in any manner by mortgage or by creation of any other security interest, real 28
275-or personal property owned by it, or in which it has an interest, when, in the judgment 29
276-of the authority, the action is in furtherance of its corporate purposes; 30
277-(8) to accept gifts, grants, or loans from, and enter into contracts or 31 33-GS2489\U
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281-other transactions regarding them, with any person; 1
282-(9) to deposit or invest its funds, subject to agreements with 2
283-bondholders; 3
284-(10) to enter into contracts with the United States or any person and, 4
285-subject to the laws of the United States and subject to concurrence of the legislature, 5
286-with a foreign country or its agencies, for the construction, financing, operation, and 6
287-maintenance of all or any part of a power project or bulk fuel, waste energy, energy 7
288-conservation, energy efficiency, or alternative energy facilities or equipment, either 8
289-inside or outside the state, and for the sale or transmission of power from a project or 9
290-any right to the capacity of it or for the security of any bonds of the authority issued or 10
291-to be issued for the project; 11
292-(11) to enter into contracts with any person and with the United States 12
293-and, subject to the laws of the United States and subject to the concurrence of the 13
294-legislature, with a foreign country or its agencies for the purchase, sale, exchange, 14
295-transmission, or use of power from a project, or any right to the capacity of it; 15
296-(12) to apply to the appropriate agencies of the state, the United States, 16
297-and a foreign country and any other proper agency for the permits, licenses, or 17
298-approvals as may be necessary, to acquire, construct, maintain, and operate power 18
299-projects in accordance with the licenses or permits, and to obtain, hold, and use the 19
300-licenses and permits in the same manner as any other person or operating unit; 20
301-(13) to enter into contracts or agreements with respect to the exercise 21
302-of any of its powers, and do all things necessary or convenient to carry out its 22
303-corporate purposes and exercise the powers granted in this chapter; 23
304-(14) to recommend to the legislature 24
305-(A) the pledge of the credit of the state to guarantee repayment 25
306-of all or any portion of revenue bonds issued to assist in construction of power 26
307-projects; 27
308-(B) an appropriation from the general fund 28
309-(i) for debt service on bonds or other project purposes; 29
310-or 30
311-(ii) to reduce the amount of debt financing for the 31 33-GS2489\U
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315-project; 1
316-(15) to carry out the powers and duties assigned to it under AS 42.45 2
317-and AS 44.83.700 - 44.83.750; 3
318-(16) to make grants or loans to any person and enter into contracts or 4
319-other transactions regarding the grants or loans; 5
320-(17) to promote energy conservation, energy efficiency, and alternative 6
321-energy through training and public education; 7
322-(18) to acquire a Susitna River power project, whether by construction, 8
323-purchase, gift, or lease, including the acquisition of property rights and interests by 9
324-eminent domain under AS 09; 10
325-(19) to perform feasibility studies and engineering and design with 11
326-respect to power projects; 12
327-(20) to acquire energy storage systems, whether by direct 13
328-ownership, purchase, grant, gift, or lease. 14
329- * Sec. 18. AS 44.83 is amended by adding new sections to read: 15
330-Article 5A. Railbelt Transmission Organization. 16
331-Sec. 44.83.700. Railbelt Transmission Organization. (a) The Railbelt 17
332-Transmission Organization is established for the purpose of overseeing, managing, 18
333-and developing the backbone transmission system serving the Railbelt and conducting 19
334-strategic planning to enhance the future transfer capabilities, resilience, reliability, and 20
335-efficiency of the backbone transmission system. For administrative purposes, the 21
336-transmission organization is in the Alaska Energy Authority. 22
337-(b) The governance structure for the transmission organization must 23
338-(1) provide for oversight of the transmission organization by a 24
339-management committee that is made up of 25
340-(A) representatives from each of the Railbelt utilities; 26
341-(B) the executive director of the authority; 27
342-(C) the chief executive officer of the applicable electric 28
343-reliability organization, or the chief executive officer's designee; 29
344-(D) an individual, appointed by the governor, who represents a 30
345-person, other than a public utility, that owns or operates a facility for the 31 33-GS2489\U
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349-generation of electricity; and 1
350-(E) an individual, appointed by the governor, who represents a 2
351-labor organization engaged in collective bargaining with a Railbelt utility; 3
352-(2) include a conflict resolution process; and 4
353-(3) facilitate substantial public participation in the operations of the 5
354-transmission organization. 6
355-(c) The provisions of AS 44.83.700 - 44.83.750 do not limit, extend, or 7
356-otherwise alter the rights and obligations as provided in AS 42.05.221 - 42.05.281 of a 8
357-public utility that is certificated under AS 42.05.221. 9
358-Sec. 44.83.710. Powers and duties. (a) The transmission organization shall 10
359-(1) manage backbone transmission assets; 11
360-(2) follow reliability standards developed by the applicable electric 12
361-reliability organization; 13
362-(3) ensure the safe, resilient, reliable, efficient, and economical 14
363-operation and development of the backbone transmission system; 15
364-(4) preserve nondiscriminatory open access to the backbone 16
365-transmission system subject to legitimate technical constraints and congestion; 17
366-(5) maintain the capacity rights of legacy transmission owners to 18
367-access firm load and legacy generation resources served by the backbone transmission 19
368-system; 20
369-(6) perform integrated transmission planning under AS 44.83.730; 21
370-(7) purchase, lease, or otherwise acquire effective operational control 22
371-of backbone transmission assets; 23
372-(8) subject to the approval of the commission, establish tariffs related 24
373-to the backbone transmission system under AS 44.83.720. 25
374-(b) The transmission organization may 26
375-(1) construct, own, and operate new backbone transmission assets; and 27
376-(2) enter into contracts, agreements, and partnerships that enhance 28
377-safety, resiliency, reliability, and efficiency of the backbone transmission system. 29
378-(c) The transmission organization may not exchange, donate, sell, or otherwise 30
379-convey a backbone transmission asset owned by the transmission organization without 31 33-GS2489\U
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383-approval of the legislature in advance of the effective date of the conveyance. 1
384-(d) The transmission organization shall ensure that work performed on new 2
385-construction and maintenance of backbone transmission assets controlled by the 3
386-transmission organization is prioritized to give first preference to the Railbelt utility 4
387-that serves the area in which the work is performed. The transmission organization 5
388-shall compensate the utility for reasonable and necessary expenses the utility incurs in 6
389-performing the work. The work must be performed subject to the terms and conditions 7
390-of any existing collective bargaining agreements. 8
391-(e) The transmission organization may adopt regulations necessary to 9
392-implement AS 44.83.710 - 44.83.750. 10
393-Sec. 44.83.720. Revenue mechanism. (a) The transmission organization shall 11
394-hold and administer a commission-approved open access transmission tariff that 12
395-ensures nondiscriminatory access to the backbone transmission system. 13
396-(b) The transmission organization shall adopt a commission-approved 14
397-transmission cost recovery methodology that ensures the reliability and sufficient 15
398-capacity of the backbone transmission system to support and promote state and 16
399-regional energy policies and a rigorous, dynamic economy. 17
400-(c) The cost recovery methodology for the transmission organization must, as 18
401-approved by the commission, 19
402-(1) pool backbone transmission system costs and allocate those costs 20
403-through certificated load-serving entities on a coincident peak or load ratio share basis, 21
404-or a combination of both; and 22
405-(2) account for 23
406-(A) required backbone transmission system ancillary services; 24
407-(B) backbone transmission system congestion; and 25
408-(C) disruptions to the backbone transmission system that result 26
409-in the isolation of one geographical area of the backbone transmission system 27
410-from another for more than 24 hours. 28
411-(d) A Railbelt utility shall pass the commission-approved transmission costs 29
412-directly and transparently to the utility's customers. 30
413-(e) Notwithstanding AS 44.83.090(b), the transmission organization is subject 31 33-GS2489\U
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417-to the jurisdiction of the commission for the purpose of this section. The commission 1
418-shall adopt regulations under AS 44.62 (Administrative Procedure Act) necessary to 2
419-implement this section. 3
420-Sec. 44.83.730. Integrated transmission planning. (a) At least once every 10 4
421-years, the transmission organization shall, in consultation with stakeholders, create and 5
422-review an integrated transmission plan for the backbone transmission system. 6
423-(b) The integrated transmission plan must set clear goals and articulate the 7
424-strategic trajectory, operational blueprint, capital improvement funding requirements, 8
425-and developmental outlook for the backbone transmission system, considering 9
426-regulatory and legal frameworks, projected load growth, technological advancement, 10
427-fuel supply projections, generation plans, safety, resiliency, reliability, efficiency, and 11
428-economic impacts. The integrated transmission plan must analyze performance on and 12
429-alignment with prior integrated transmission plans. 13
430-(c) The transmission organization shall seek feedback and input from the 14
431-public throughout the integrated transmission plan development process to ensure that 15
432-the plan reflects a broad range of perspectives and addresses community and industry 16
433-concerns. When the integrated transmission plan is complete, the transmission 17
434-organization shall publish the plan on the Alaska Energy Authority's Internet website. 18
435-Sec. 44.83.740. Transfer management of assets. (a) To achieve the integrated 19
436-and streamlined governance of the backbone transmission system, the commission 20
437-shall, on or before July 1, 2025, determine which assets are backbone transmission 21
438-assets, and the Railbelt utilities shall transfer management of those assets to the 22
439-transmission organization on or before July 1, 2026. 23
440-(b) The transmission organization shall manage the backbone transmission 24
441-assets identified under (a) of this section that are owned or managed by the authority. 25
442-(c) A Railbelt utility shall pay penalties as determined by the commission for 26
443-failure to transfer management of backbone transmission assets to the transmission 27
444-organization as required under this section. The commission shall adopt regulations 28
445-under AS 44.62 (Administrative Procedure Act) necessary to implement this 29
446-subsection, including defining by regulation the term "backbone transmission asset." 30
447-Sec. 44.83.750. Definitions. In AS 44.83.700 - 44.83.750, 31 33-GS2489\U
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451-(1) "backbone transmission system" means the backbone transmission 1
452-assets in the Railbelt that facilitate the transfer of large-scale electrical power between 2
453-or across separate geographical areas; "backbone transmission system" does not 3
454-include assets that would be considered distribution facilities or radial facilities under 4
455-the standards established by the Federal Energy Regulatory Commission; 5
456-(2) "commission" means the Regulatory Commission of Alaska; 6
457-(3) "Railbelt" means the geographic region from the Kenai Peninsula 7
458-to Interior Alaska that is connected to a common electric transmission backbone; 8
459-(4) "Railbelt utility" means a public electric utility certificated to 9
460-operate in the Railbelt; 10
461-(5) "transmission organization" means the Railbelt Transmission 11
462-Organization established by AS 44.83.700. 12
463- * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 13
464-read: 14
465-TRANSITION: AGREEMENT BETWEEN ALASKA ENERGY AUTHORITY 15
466-AND RAILBELT UTILITIES. To ensure the successful implementation of AS 44.83.700 - 16
467-44.83.750, added by sec. 18 of this Act, on or before July 1, 2025, the Alaska Energy 17
468-Authority and the Railbelt utilities, as defined in AS 44.83.750, added by sec. 18 of this Act, 18
469-shall develop an agreement to implement AS 44.83.700 - 44.83.750, added by sec. 18 of this 19
470-Act. The agreement must establish 20
471-(1) a governance structure for the Railbelt Transmission Organization 21
472-established under AS 44.83.700, added by sec. 18 of this Act, that is modeled after the 22
473-governance structure of the Bradley Lake Hydroelectric Project, as outlined in the Bradley 23
474-Lake Power Sales Agreement, including the creation, duties, and methods of the Bradley Lake 24
475-Project Management Committee, dispute resolution, budgeting, financing, and delegation of 25
476-operations, with any adjustments the parties to the agreement determine are necessary to 26
477-accommodate the requirements of AS 44.83.700 - 44.83.750, added by sec. 18 of this Act; and 27
478-(2) a backbone transmission system revenue mechanism under AS 44.83.720, 28
479-added by sec. 18 of this Act, that is modeled after the provisions governing transmission cost 29
480-allocation and recovery in 16 Texas Administrative Code 25.192, as it reads on the effective 30
481-date of this section, with modifications as necessary.
482-31 33-GS2489\U
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486- * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 1
487-read: 2
488-TRANSITION: INITIAL INTEGRATED TRANSMISSION PLAN AND CAPITAL 3
489-IMPROVEMENT PROGRAM. The Alaska Energy Authority shall immediately assume the 4
490-integrated transmission planning duties under AS 44.83.730, added by sec. 18 of this Act, 5
491-develop an initial integrated transmission plan as soon as practicable, and begin execution of a 6
492-five-year transmission capital improvement program based on the plan as soon as practicable. 7
493-The authority shall transfer the responsibility for the plan and program to the Railbelt 8
494-Transmission Organization established under AS 44.83.700, added by sec. 18 of this Act, 9
495-after the agreement establishing the governance structure of the organization under sec. 19 of 10
496-this Act has been executed. 11
497- * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 12
498-read: 13
499-TRANSITION: REGULATORY COMMISSION OF ALASKA MEMBERS. An 14
500-individual who is a member of the Regulatory Commission of Alaska on the day before the 15
501-effective date of sec. 1 of this Act continues to serve on the Regulatory Commission of Alaska 16
502-until the member's term expires and a successor is appointed and qualified. The governor shall 17
503-make appointments for vacancies that occur on or after the effective date of sec. 1 of this Act 18
504-in accordance with AS 42.04.020(a), as amended by sec. 1 of this Act. 19
505- * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 20
506-read: 21
507-TRANSITION: ALASKA ENERGY AUTHORITY BOARD MEMBERS. 22
508-Notwithstanding AS 44.83.030(c), added by sec. 15 of this Act, the governor shall appoint 23
509-two public members of the initial Alaska Energy Authority board of directors to one-year 24
510-terms, two public members to two-year terms, and two public members to three-year terms. 25
511- * Sec. 23. Sections 19 and 20 of this Act take effect immediately under AS 01.10.070(c). 26
512- * Sec. 24. Except as provided in sec. 23 of this Act, this Act takes effect July 1, 2024. 27
78+integrated transmission system association to assist in administering the system of 1
79+transmission cost recovery. The commission shall require the association to file tariffs 2
80+to achieve the purposes of AS 42.05.900 - 42.05.915. 3
81+(b) The integrated transmission system association may not own assets of the 4
82+integrated transmission system. 5
83+(c) Notwithstanding (b) of this section, the integrated transmission system 6
84+association is a public utility. 7
85+Sec. 42.05.915. Definitions. In AS 42.05.900 - 42.05.915, 8
86+(1) "electric reliability organization" has the meaning given in 9
87+AS 42.05.790; 10
88+(2) "integrated transmission system" means the non-generation assets 11
89+of an interconnected electric energy transmission network; a radial transmission line 12
90+constructed after the effective date of AS 42.05.900 - 42.05.915 for the purpose of 13
91+connecting a single generation asset to the interconnected electric energy transmission 14
92+network to effectuate contractual sales of energy to load serving entities is part of the 15
93+integrated transmission system only if the commission determines that the line is 16
94+economically necessary to enable the establishment of multiple new generation assets; 17
95+(3) "load-serving entity" has the meaning given in AS 42.05.790; 18
96+(4) "transmission costs" include the costs to own and operate the 19
97+integrated transmission system, as established by the commission or by contract, 20
98+including costs associated with the Bradley Lake hydroelectric project. 21