AK
Alaska Senate Bill SB257

Alaska 2023-2024 Regular Session

Alaska Senate Bill SB257 Compare Versions

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10-CS FOR SENATE BILL NO. 257(L&C)
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11+ SENATE BILL NO. 257
1112
1213 IN THE LEGISLATURE OF THE STATE OF ALASKA
1314
1415 THIRTY-THIRD LEGISLATURE - SECOND SESSION
1516
16-BY THE SENATE LABOR AND COMMERCE COMMITTEE
17+BY THE SENATE RESOURCES COMMITTEE
1718
18-Offered: 4/30/24
19-Referred: Finance
19+Introduced: 3/1/24
20+Referred: Labor and Commerce, Resources, Finance
2021
21-Sponsor(s): SENATE RESOURCES COMMITTEE
22+
2223 A BILL
2324
2425 FOR AN ACT ENTITLED
2526
2627 "An Act relating to the Regulatory Commission of Alaska; relating to public utilities; 1
2728 relating to electric reliability organizations; relating to the Alaska Energy Authority; 2
2829 relating to the Railbelt Transmission Organization; and providing for an effective date." 3
2930 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
3031 * Section 1. AS 42.04.020(a) is amended to read: 5
3132 (a) The commission consists of five commissioners appointed by the governor 6
3233 and confirmed by the legislature in joint session. To qualify for appointment as a 7
3334 commissioner, a person must be a member in good standing of the Alaska Bar 8
3435 Association or have a degree from an accredited college or university with a major in 9
3536 engineering, finance, economics, accounting, business administration, or public 10
3637 administration and must have at least five years of actual experience in the
3738 11
3839 practice of law or in the field associated with the degree. [ACTUAL 12
3940 EXPERIENCE FOR A PERIOD OF FIVE YEARS IN THE PRACTICE OF LAW 13
40-OR IN THE FIELD OF ENGINEERING, FINANCE, ECONOMICS, 14 33-LS1047\Y
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41+OR IN THE FIELD OF ENGINEERING, FINANCE, ECONOMICS, 14 33-LS1047\D
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4344
4445 ACCOUNTING, BUSINESS ADMINISTRATION, OR PUBLIC 1
4546 ADMINISTRATION IS EQUIVALENT TO A DEGREE.] 2
4647 * Sec. 2. AS 42.05.381 is amended by adding a new subsection to read: 3
4748 (p) A determination of whether an electric utility's rate is just and reasonable 4
4849 may consider whether the purpose of the rate is to increase diversity of supply, 5
4950 promote load growth, or enhance energy reliability or energy security. 6
5051 * Sec. 3. AS 42.05.762 is amended to read: 7
5152 Sec. 42.05.762. Duties of an electric reliability organization. An electric 8
5253 reliability organization shall 9
5354 (1) develop reliability standards that provide for an adequate level of 10
5455 reliability of an interconnected electric energy transmission network; 11
55-(2) develop integrated resource plans under AS 42.05.780(a); 12
56-(3) establish rules to 13
57-(A) ensure that the directors of the electric reliability 14
58-organization and the electric reliability organization act independently from 15
59-users, owners, and operators of the interconnected electric energy transmission 16
60-network; 17
61-(B) equitably allocate reasonable dues, fees, and other charges 18
62-among all load-serving entities connected to the interconnected electric energy 19
63-transmission network for all activities under AS 42.05.760 - 42.05.790; 20
64-(C) provide fair and impartial procedures for the enforcement 21
65-of reliability standards; 22
66-(D) provide for reasonable notice and opportunity for public 23
67-comment, due process, openness, and balancing of interests in exercising its 24
68-duties; and 25
69-(4) prioritize the reliability and stability of the interconnected 26
70-bulk-electric system served by the electric reliability organization while 27
71-considering cost to the consumer [BE GOVERNED BY A BOARD THAT 28
72-(A) INCLUDES AS NONVOTING MEMBERS THE CHAIR 29
73-OF THE COMMISSION OR THE CHAIR'S DESIGNEE AND THE 30
74-ATTORNEY GENERAL OR THE ATTORNEY GENERAL'S DESIGNEE; 31 33-LS1047\Y
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56+(2) participate in integrated grid planning conducted by the 12
57+Railbelt Transmission Organization under AS 44.83.730 [DEVELOP 13
58+INTEGRATED RESOURCE PLANS UNDER AS 42.05.780(a)]; 14
59+(3) establish rules to 15
60+(A) ensure that the directors of the electric reliability 16
61+organization and the electric reliability organization act independently from 17
62+users, owners, and operators of the interconnected electric energy transmission 18
63+network; 19
64+(B) equitably allocate reasonable dues, fees, and other charges 20
65+among all load-serving entities connected to the interconnected electric energy 21
66+transmission network for all activities under AS 42.05.760 - 42.05.790; 22
67+(C) provide fair and impartial procedures for the enforcement 23
68+of reliability standards; 24
69+(D) provide for reasonable notice and opportunity for public 25
70+comment, due process, openness, and balancing of interests in exercising its 26
71+duties; [AND] 27
72+(4) be governed by a board that 28
73+(A) includes as nonvoting members the chair of the 29
74+commission or the chair's designee and the attorney general or the attorney 30
75+general's designee; and 31 33-LS1047\D
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79+(B) is formed as 1
80+(i) an independent board; 2
81+(ii) a balanced stakeholder board; or 3
82+(iii) a combination independent and balanced 4
83+stakeholder board; and 5
84+(5) prioritize the reliability and stability of the interconnected 6
85+bulk-electric system served by the electric reliability organization while 7
86+considering cost to the consumer. 8
87+ * Sec. 4. AS 42.05.765(a) is amended to read: 9
88+(a) An electric reliability organization shall develop, monitor, and enforce 10
89+reliability standards that ensure the stable operation of the interconnected bulk-11
90+electric system served by the electric reliability organization, coordinate with the 12
91+Railbelt Transmission Organization when developing reliability standards if the 13
92+electric reliability organization serves the Railbelt, and file each reliability standard 14
93+or modification to a reliability standard with the commission as a new or revised tariff 15
94+provision. All users, owners, and operators of an interconnected electric energy 16
95+transmission network served by an electric reliability organization, including a user, 17
96+owner, or operator that is exempt from other regulation under AS 42.05.711 or another 18
97+provision of this chapter, shall comply with reliability standards contained in a tariff 19
98+that is approved by the commission. The commission may enforce a reliability 20
99+standard approved under this section. A reliability standard approved under this 21
100+section 22
101+(1) shall provide for the reliable operation of the interconnected 23
102+electric energy transmission network or of an interconnected electric energy 24
103+transmission network facility; 25
104+(2) may provide for 26
105+(A) protection from a cybersecurity incident; 27
106+(B) facility security; 28
107+(C) additions or modifications to an interconnected bulk-29
108+electric system facility to the extent necessary to provide for reliable operation 30
109+of the interconnected electric energy transmission network; 31 33-LS1047\D
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113+(3) may result in, but may not be designed for the purpose of, requiring 1
114+enlargement of interconnected bulk-electric system facilities or construction of new 2
115+transmission capacity or generation capacity. 3
116+ * Sec. 5. AS 42.05.770 is amended to read: 4
117+Sec. 42.05.770. Regulations. The commission shall adopt regulations 5
118+governing electric reliability organizations, reliability standards, and modifications to 6
119+reliability standards consistent with this section. Regulations under AS 42.05.760 - 7
120+42.05.790 must 8
121+(1) [REQUIRE THAT AN ELECTRIC RELIABILITY 9
122+ORGANIZATION'S TARIFF INCLUDE 10
123+(A) STANDARDS FOR NONDISCRIMINATORY OPEN 11
124+ACCESS TRANSMISSION AND INTERCONNECTION; 12
125+(B) STANDARDS FOR TRANSMISSION SYSTEM COST 13
126+RECOVERY; 14
127+(2)] provide a process to identify and resolve conflicts between a 15
128+reliability standard and a function, rule, tariff, rate schedule, or agreement that has 16
129+been accepted, approved, adopted, or ordered by the commission; 17
130+(2) [(3)] allow an electric reliability organization to recover its costs 18
131+through surcharges added to the rate for each participating load-serving entity. 19
132+ * Sec. 6. AS 42.05.772 is amended by adding a new subsection to read: 20
133+(b) A load-serving entity, including a load-serving entity otherwise exempt 21
134+from regulation under this chapter, in an interconnected bulk-electric system served by 22
135+an electric reliability organization shall adhere to the electric reliability organization's 23
136+reliability standards and coordinate with the electric reliability organization and, if 24
137+applicable, the Railbelt Transmission Organization to integrate the electric reliability 25
138+organization's reliability standards into operational procedures. 26
139+ * Sec. 7. AS 42.05.785(d) is amended to read: 27
140+(d) The commission shall adopt regulations 28
141+(1) governing project preapproval; 29
142+(2) defining refurbishment and capitalized maintenance; and 30
143+(3) maintaining municipal jurisdiction over local planning decisions [; 31 33-LS1047\D
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78147 AND 1
79-(B) IS FORMED AS 2
80-(i) AN INDEPENDENT BOARD; 3
81-(ii) A BALANCED STAKEHOLDER BOARD; OR 4
82-(iii) A COMBINATION INDEPENDENT AND BALANCED 5
83-STAKEHOLDER BOARD]. 6
84- * Sec. 4. AS 42.05 is amended by adding a new section to read: 7
85-Sec. 42.05.763. Governance of an electric reliability organization. (a) An 8
86-electric reliability organization shall be governed by a board of directors that is 9
87-(1) an independent board; 10
88-(2) a balanced stakeholder board; or 11
89-(3) a combination independent and balanced stakeholder board. 12
90-(b) The chair of the commission or the chair's designee and the attorney 13
91-general or the attorney general's designee shall serve as nonvoting members of the 14
92-board of directors of an electric reliability organization. 15
93-(c) A voting member of the board of an electric reliability organization must 16
94-(1) be appointed by a utility that participates in the electric reliability 17
95-organization; 18
96-(2) be a member in good standing of the Alaska Bar Association with 19
97-at least five years of actual experience in the practice of law; 20
98-(3) have a degree in engineering, finance, economics, accounting, 21
99-business administration, or public administration and at least five years of actual 22
100-experience in the field associated with the degree; or 23
101-(4) have owned, operated, overseen, or developed, for a period of at 24
102-least five years, a generation facility of at least 10 megawatts connecting at a 25
103-transmission voltage of 69 kilovolts or higher. 26
104- * Sec. 5. AS 42.05.765(a) is amended to read: 27
105-(a) An electric reliability organization shall develop, monitor, and enforce 28
106-reliability standards that ensure the stable operation of the interconnected bulk-29
107-electric system served by the electric reliability organization, coordinate with the 30
108-Railbelt Transmission Organization when developing reliability standards if the 31 33-LS1047\Y
109-CSSB 257(L&C) -4- SB0257B
148+(4) ADDRESSING PROJECTS UNDERTAKEN BEFORE 2
149+INTEGRATED RESOURCE PLAN APPROVAL FOR AN INTERCONNECTED 3
150+ELECTRIC ENERGY TRANSMISSION NETWORK]. 4
151+ * Sec. 8. AS 42.05.790 is amended by adding new paragraphs to read: 5
152+(8) "Railbelt" has the meaning given in AS 44.83.750; 6
153+(9) "Railbelt Transmission Organization" means the transmission 7
154+organization established by AS 44.83.700. 8
155+ * Sec. 9. AS 44.83.080 is amended to read: 9
156+Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 10
157+purposes, the authority has the following powers in addition to its other powers: 11
158+(1) to sue and be sued; 12
159+(2) to have a seal and alter it at pleasure; 13
160+(3) to make and alter bylaws for its organization and internal 14
161+management; 15
162+(4) to adopt regulations governing the exercise of its corporate powers; 16
163+(5) to improve, equip, operate, and maintain power projects and bulk 17
164+fuel, waste energy, energy conservation, energy efficiency, and alternative energy 18
165+facilities and equipment; 19
166+(6) to issue bonds to carry out any of its corporate purposes and 20
167+powers, including the establishment or increase of reserves to secure or to pay the 21
168+bonds or interest on them, and the payment of all other costs or expenses of the 22
169+authority incident to and necessary or convenient to carry out its corporate purposes 23
170+and powers; 24
171+(7) to sell, lease as lessor or lessee, exchange, donate, convey, or 25
172+encumber in any manner by mortgage or by creation of any other security interest, real 26
173+or personal property owned by it, or in which it has an interest, when, in the judgment 27
174+of the authority, the action is in furtherance of its corporate purposes; 28
175+(8) to accept gifts, grants, or loans from, and enter into contracts or 29
176+other transactions regarding them, with any person; 30
177+(9) to deposit or invest its funds, subject to agreements with 31 33-LS1047\D
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112-electric reliability organization serves the Railbelt, and file each reliability standard 1
113-or modification to a reliability standard with the commission as a new or revised tariff 2
114-provision. All users, owners, and operators of an interconnected electric energy 3
115-transmission network served by an electric reliability organization, including a user, 4
116-owner, or operator that is exempt from other regulation under AS 42.05.711 or another 5
117-provision of this chapter, shall comply with reliability standards contained in a tariff 6
118-that is approved by the commission. The commission may enforce a reliability 7
119-standard approved under this section. A reliability standard approved under this 8
120-section 9
121-(1) shall provide for the reliable operation of the interconnected 10
122-electric energy transmission network or of an interconnected electric energy 11
123-transmission network facility; 12
124-(2) may provide for 13
125-(A) protection from a cybersecurity incident; 14
126-(B) facility security; 15
127-(C) additions or modifications to an interconnected bulk-16
128-electric system facility to the extent necessary to provide for reliable operation 17
129-of the interconnected electric energy transmission network; 18
130-(3) may result in, but may not be designed for the purpose of, requiring 19
131-enlargement of interconnected bulk-electric system facilities or construction of new 20
132-transmission capacity or generation capacity. 21
133- * Sec. 6. AS 42.05.770 is amended to read: 22
134-Sec. 42.05.770. Regulations. The commission shall adopt regulations 23
135-governing electric reliability organizations, reliability standards, and modifications to 24
136-reliability standards consistent with this section. Regulations under AS 42.05.760 - 25
137-42.05.790 must 26
138-(1) require that an electric reliability organization's tariff include 27
139-[(A) STANDARDS FOR] nondiscriminatory standards for 28
140-[OPEN ACCESS TRANSMISSION AND] interconnection; 29
141-[(B) STANDARDS FOR TRANSMISSION SYSTEM COST 30
142-RECOVERY;] 31 33-LS1047\Y
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181+bondholders; 1
182+(10) to enter into contracts with the United States or any person and, 2
183+subject to the laws of the United States and subject to concurrence of the legislature, 3
184+with a foreign country or its agencies, for the construction, financing, operation, and 4
185+maintenance of all or any part of a power project or bulk fuel, waste energy, energy 5
186+conservation, energy efficiency, or alternative energy facilities or equipment, either 6
187+inside or outside the state, and for the sale or transmission of power from a project or 7
188+any right to the capacity of it or for the security of any bonds of the authority issued or 8
189+to be issued for the project; 9
190+(11) to enter into contracts with any person and with the United States 10
191+and, subject to the laws of the United States and subject to the concurrence of the 11
192+legislature, with a foreign country or its agencies for the purchase, sale, exchange, 12
193+transmission, or use of power from a project, or any right to the capacity of it; 13
194+(12) to apply to the appropriate agencies of the state, the United States, 14
195+and a foreign country and any other proper agency for the permits, licenses, or 15
196+approvals as may be necessary, to acquire, construct, maintain, and operate power 16
197+projects in accordance with the licenses or permits, and to obtain, hold, and use the 17
198+licenses and permits in the same manner as any other person or operating unit; 18
199+(13) to enter into contracts or agreements with respect to the exercise 19
200+of any of its powers, and do all things necessary or convenient to carry out its 20
201+corporate purposes and exercise the powers granted in this chapter; 21
202+(14) to recommend to the legislature 22
203+(A) the pledge of the credit of the state to guarantee repayment 23
204+of all or any portion of revenue bonds issued to assist in construction of power 24
205+projects; 25
206+(B) an appropriation from the general fund 26
207+(i) for debt service on bonds or other project purposes; 27
208+or 28
209+(ii) to reduce the amount of debt financing for the 29
210+project; 30
211+(15) to carry out the powers and duties assigned to it under AS 42.45 31 33-LS1047\D
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146-(2) provide a process to identify and resolve conflicts between a 1
147-reliability standard and a function, rule, tariff, rate schedule, or agreement that has 2
148-been accepted, approved, adopted, or ordered by the commission; 3
149-(3) allow an electric reliability organization to recover its costs through 4
150-surcharges added to the rate for each participating load-serving entity; costs 5
151-recovered each year under regulations adopted under this paragraph may not 6
152-exceed $1,200,000. 7
153- * Sec. 7. AS 42.05.772 is amended by adding a new subsection to read: 8
154-(b) A load-serving entity, including a load-serving entity otherwise exempt 9
155-from regulation under this chapter, in an interconnected bulk-electric system served by 10
156-an electric reliability organization shall adhere to the electric reliability organization's 11
157-reliability standards and coordinate with the electric reliability organization and, if 12
158-applicable, the Railbelt Transmission Organization to integrate the electric reliability 13
159-organization's reliability standards into operational procedures. 14
160- * Sec. 8. AS 42.05.790 is amended by adding new paragraphs to read: 15
161-(8) "Railbelt" has the meaning given in AS 44.83.750; 16
162-(9) "Railbelt Transmission Organization" means the transmission 17
163-organization established by AS 44.83.700. 18
164- * Sec. 9. AS 44.83.080 is amended to read: 19
165-Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 20
166-purposes, the authority has the following powers in addition to its other powers: 21
167-(1) to sue and be sued; 22
168-(2) to have a seal and alter it at pleasure; 23
169-(3) to make and alter bylaws for its organization and internal 24
170-management; 25
171-(4) to adopt regulations governing the exercise of its corporate powers; 26
172-(5) to improve, equip, operate, and maintain power projects and bulk 27
173-fuel, waste energy, energy conservation, energy efficiency, and alternative energy 28
174-facilities and equipment; 29
175-(6) to issue bonds to carry out any of its corporate purposes and 30
176-powers, including the establishment or increase of reserves to secure or to pay the 31 33-LS1047\Y
177-CSSB 257(L&C) -6- SB0257B
215+and AS 44.83.700 - 44.83.750; 1
216+(16) to make grants or loans to any person and enter into contracts or 2
217+other transactions regarding the grants or loans; 3
218+(17) to promote energy conservation, energy efficiency, and alternative 4
219+energy through training and public education; 5
220+(18) to acquire a Susitna River power project, whether by construction, 6
221+purchase, gift, or lease, including the acquisition of property rights and interests by 7
222+eminent domain under AS 09; 8
223+(19) to perform feasibility studies and engineering and design with 9
224+respect to power projects; 10
225+(20) to acquire battery energy storage systems, whether by direct 11
226+ownership, purchase, grant, gift, or lease. 12
227+ * Sec. 10. AS 44.83 is amended by adding new sections to read: 13
228+Article 5A. Railbelt Transmission Organization. 14
229+Sec. 44.83.700. Railbelt Transmission Organization. (a) The Railbelt 15
230+Transmission Organization is established in the Alaska Energy Authority for the 16
231+purpose of overseeing, managing, and developing the backbone transmission system 17
232+serving the Railbelt and conducting strategic planning to enhance the future transfer 18
233+capabilities, resilience, reliability, and efficiency of the backbone transmission system. 19
234+(b) The governance structure for the transmission organization must 20
235+(1) provide for oversight of the transmission organization by a 21
236+management committee that is made up of representatives from each of the Railbelt 22
237+utilities, the executive director of the authority, and the chief executive officer of the 23
238+applicable electric reliability organization; 24
239+(2) include a conflict resolution process; and 25
240+(3) facilitate public participation in the operations of the transmission 26
241+organization. 27
242+(c) Notwithstanding AS 44.83.090(b), the transmission organization is subject 28
243+to the jurisdiction of the commission. The commission shall adopt regulations under 29
244+AS 44.62 (Administrative Procedure Act) necessary to carry out its powers and duties 30
245+under AS 44.83.700 - 44.83.750, including defining by regulation the term "backbone 31 33-LS1047\D
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180-bonds or interest on them, and the payment of all other costs or expenses of the 1
181-authority incident to and necessary or convenient to carry out its corporate purposes 2
182-and powers; 3
183-(7) to sell, lease as lessor or lessee, exchange, donate, convey, or 4
184-encumber in any manner by mortgage or by creation of any other security interest, real 5
185-or personal property owned by it, or in which it has an interest, when, in the judgment 6
186-of the authority, the action is in furtherance of its corporate purposes; 7
187-(8) to accept gifts, grants, or loans from, and enter into contracts or 8
188-other transactions regarding them, with any person; 9
189-(9) to deposit or invest its funds, subject to agreements with 10
190-bondholders; 11
191-(10) to enter into contracts with the United States or any person and, 12
192-subject to the laws of the United States and subject to concurrence of the legislature, 13
193-with a foreign country or its agencies, for the construction, financing, operation, and 14
194-maintenance of all or any part of a power project or bulk fuel, waste energy, energy 15
195-conservation, energy efficiency, or alternative energy facilities or equipment, either 16
196-inside or outside the state, and for the sale or transmission of power from a project or 17
197-any right to the capacity of it or for the security of any bonds of the authority issued or 18
198-to be issued for the project; 19
199-(11) to enter into contracts with any person and with the United States 20
200-and, subject to the laws of the United States and subject to the concurrence of the 21
201-legislature, with a foreign country or its agencies for the purchase, sale, exchange, 22
202-transmission, or use of power from a project, or any right to the capacity of it; 23
203-(12) to apply to the appropriate agencies of the state, the United States, 24
204-and a foreign country and any other proper agency for the permits, licenses, or 25
205-approvals as may be necessary, to acquire, construct, maintain, and operate power 26
206-projects in accordance with the licenses or permits, and to obtain, hold, and use the 27
207-licenses and permits in the same manner as any other person or operating unit; 28
208-(13) to enter into contracts or agreements with respect to the exercise 29
209-of any of its powers, and do all things necessary or convenient to carry out its 30
210-corporate purposes and exercise the powers granted in this chapter; 31 33-LS1047\Y
211-SB0257B -7- CSSB 257(L&C)
249+transmission asset." 1
250+Sec. 44.83.710. Powers and duties. (a) The transmission organization shall 2
251+(1) manage backbone transmission assets; 3
252+(2) follow reliability standards developed by the applicable electric 4
253+reliability organization; 5
254+(3) ensure the safe, resilient, reliable, efficient, and economical 6
255+operation and development of the backbone transmission system; 7
256+(4) preserve nondiscriminatory open access to the backbone 8
257+transmission system subject to legitimate technical constraints and congestion; 9
258+(5) maintain the capacity rights of legacy transmission owners to 10
259+access firm load and legacy generation resources served by the backbone transmission 11
260+system; 12
261+(6) perform integrated grid planning under AS 44.83.730; 13
262+(7) purchase, lease, or otherwise acquire effective operational control 14
263+of backbone transmission assets; 15
264+(8) construct, own, and operate new backbone transmission assets; and 16
265+(9) subject to the approval of the commission, establish tariffs related 17
266+to the backbone transmission system. 18
267+(b) The transmission organization may enter into contracts, agreements, and 19
268+partnerships that enhance safety, resiliency, reliability, and efficiency of the backbone 20
269+transmission system. 21
270+(c) The transmission organization may adopt regulations necessary to carry 22
271+out its powers and duties under this section. 23
272+Sec. 44.83.720. Revenue mechanism. (a) As approved by the commission, the 24
273+transmission organization shall 25
274+(1) hold and administer an open access transmission tariff that ensures 26
275+nondiscriminatory access to the backbone transmission system; and 27
276+(2) adopt a transmission cost recovery methodology that ensures the 28
277+reliability and sufficient capacity of the backbone transmission system to support and 29
278+promote state and regional energy policies and a vigorous, dynamic economy. 30
279+(b) The cost recovery methodology for the backbone transmission system 31 33-LS1047\D
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214-(14) to recommend to the legislature 1
215-(A) the pledge of the credit of the state to guarantee repayment 2
216-of all or any portion of revenue bonds issued to assist in construction of power 3
217-projects; 4
218-(B) an appropriation from the general fund 5
219-(i) for debt service on bonds or other project purposes; 6
220-or 7
221-(ii) to reduce the amount of debt financing for the 8
222-project; 9
223-(15) to carry out the powers and duties assigned to it under AS 42.45 10
224-and AS 44.83.700 - 44.83.750; 11
225-(16) to make grants or loans to any person and enter into contracts or 12
226-other transactions regarding the grants or loans; 13
227-(17) to promote energy conservation, energy efficiency, and alternative 14
228-energy through training and public education; 15
229-(18) to acquire a Susitna River power project, whether by construction, 16
230-purchase, gift, or lease, including the acquisition of property rights and interests by 17
231-eminent domain under AS 09; 18
232-(19) to perform feasibility studies and engineering and design with 19
233-respect to power projects; 20
234-(20) to acquire battery energy storage systems, whether by direct 21
235-ownership, purchase, grant, gift, or lease. 22
236- * Sec. 10. AS 44.83 is amended by adding new sections to read: 23
237-Article 5A. Railbelt Transmission Organization. 24
238-Sec. 44.83.700. Railbelt Transmission Organization. (a) The Railbelt 25
239-Transmission Organization is established in the Alaska Energy Authority for the 26
240-purpose of overseeing, managing, and developing the backbone transmission system 27
241-serving the Railbelt and conducting strategic planning to enhance the future transfer 28
242-capabilities, resilience, reliability, and efficiency of the backbone transmission system. 29
243-(b) The governance structure for the transmission organization must 30
244-(1) provide for oversight of the transmission organization by a 31 33-LS1047\Y
245-CSSB 257(L&C) -8- SB0257B
283+adopted by the transmission organization must pool backbone transmission system 1
284+costs and allocate those costs through certificated load-serving entities on a coincident 2
285+peak or load ratio share basis, or a combination of both, as approved by the 3
286+commission. 4
287+Sec. 44.83.730. Integrated grid planning. (a) At least once every 10 years, 5
288+the transmission organization shall, in consultation with stakeholders, create and 6
289+review an integrated grid plan for the Railbelt. 7
290+(b) The integrated grid plan must use a whole-system approach that integrates 8
291+planning across generation, transmission, and distribution resources to articulate the 9
292+strategic trajectory, operational blueprint, capital improvement funding requirements, 10
293+and developmental outlook for the interconnected electric energy system that serves 11
294+the Railbelt, considering projected load growth, technological advancement, fuel 12
295+supply projections, generation plans, safety, resiliency, reliability, efficiency, and 13
296+economic impacts. 14
297+(c) The transmission organization shall seek feedback and input from the 15
298+public throughout the integrated grid plan development process to ensure that the plan 16
299+reflects a broad range of perspectives and addresses community and industry concerns. 17
300+Sec. 44.83.740. Transfer management of assets. (a) To achieve the integrated 18
301+and streamlined governance of the backbone transmission system, the transmission 19
302+organization shall identify the existing backbone transmission assets that are part of 20
303+the backbone transmission system, and the Railbelt utilities shall transfer management 21
304+of those assets to the transmission organization on or before July 1, 2026. 22
305+(b) The authority shall transfer backbone transmission assets identified under 23
306+(a) of this section that are owned or managed by the authority to the transmission 24
307+organization. 25
308+(c) A Railbelt utility shall pay penalties as determined by the commission for 26
309+failure to transfer management of backbone transmission assets to the transmission 27
310+organization as required under this section. 28
311+Sec. 44.83.750. Definitions. In AS 44.83.700 - 44.83.750, 29
312+(1) "backbone transmission system" means the backbone transmis
313+sion 30
314+assets of the interconnected electric energy transmission network that serves the 31 33-LS1047\D
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248-management committee that is made up of 1
249-(A) representatives from each of the Railbelt utilities; 2
250-(B) the executive director of the authority; 3
251-(C) the chief executive officer of the applicable electric 4
252-reliability organization, or the chief executive officer's designee; 5
253-(D) an individual who represents a person, other than a public 6
254-utility, that owns or operates a facility for the generation of electricity; and 7
255-(E) an individual who represents a labor organization engaged 8
256-in collective bargaining with a Railbelt utility; 9
257-(2) include a conflict resolution process; and 10
258-(3) facilitate public participation in the operations of the transmission 11
259-organization. 12
260-(c) The provisions of AS 44.83.700 - 44.83.750 do not limit, extend, or 13
261-otherwise alter the rights and obligations as provided in AS 42.05.221 - 42.05.281 of a 14
262-public utility certificated under AS 42.05.221. 15
263-(d) Notwithstanding AS 44.83.090(b), the transmission organization is subject 16
264-to the jurisdiction of the commission. The commission shall adopt regulations under 17
265-AS 44.62 (Administrative Procedure Act) necessary to carry out its powers and duties 18
266-under AS 44.83.700 - 44.83.750, including defining by regulation the term "backbone 19
267-transmission asset." 20
268-Sec. 44.83.710. Powers and duties. (a) The transmission organization shall 21
269-(1) manage backbone transmission assets; 22
270-(2) follow reliability standards developed by the applicable electric 23
271-reliability organization; 24
272-(3) ensure the safe, resilient, reliable, efficient, and economical 25
273-operation and development of the backbone transmission system; 26
274-(4) preserve nondiscriminatory open access to the backbone 27
275-transmission system subject to legitimate technical constraints and congestion; 28
276-(5) maintain the capacity rights of legacy transmission owners to 29
277-access firm load and legacy generation resources served by the backbone transmission 30
278-system; 31 33-LS1047\Y
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318+Railbelt; 1
319+(2) "commission" means the Regulatory Commission of Alaska; 2
320+(3) "interconnected electric energy transmission network" has the 3
321+meaning given in AS 42.05.790; 4
322+(4) "Railbelt" means the geographic region from the Kenai Peninsula 5
323+to Interior Alaska that is connected to a common electric transmission backbone; 6
324+(5) "Railbelt utility" means a public electric utility certificated to 7
325+operate in the Railbelt; 8
326+(6) "transmission organization" means the Railbelt Transmission 9
327+Organization established by AS 44.83.700. 10
328+ * Sec. 11. AS 42.05.780 and 42.05.785(b) are repealed. 11
329+ * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 12
330+read: 13
331+TRANSITION: REGULATIONS. (a) The Alaska Energy Authority and th e 14
332+Regulatory Commission of Alaska shall adopt regulations necessary to implement the changes 15
333+made by sec. 10 of this Act. The regulations take effect under AS 44.62 (Administrative 16
334+Procedure Act), but not before the effective date of the law implemented by the regulation. 17
335+(b) Regulations adopted by the Alaska Energy Authority under (a) of this section 18
336+must include a governance structure for the Railbelt Transmission Organization established 19
337+under AS 44.83.700, added by sec. 10 of this Act, that is based on the governance structure of 20
338+the Bradley Lake Hydroelectric Project and the Bradley Lake Project Management 21
339+Committee, with modifications as the authority determines necessary after consulting with 22
340+other participants in the management committee under AS 44.83.700(b)(1), added by sec. 10 23
341+of this Act. 24
342+(c) Regulations adopted by the Regulatory Commission of Alaska under (a) of this 25
343+section must define by regulation the term "backbone transmission asset" to include assets 26
344+that facilitate the transfer of large-scale electrical power between or across separate 27
345+geographical areas but not assets that are distribution facilities or radial facilities, considering 28
346+the standards established by the Federal Energy Regulatory Commission. 29
347+(d) Regulations adopted under (a) of this section must include a backbone 30
348+transmission system revenue mechanism under AS 44.83.720, added by sec. 10 of this Act, 31 33-LS1047\D
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282-(6) perform integrated transmission planning under AS 44.83.730; 1
283-(7) purchase, lease, or otherwise acquire effective operational control 2
284-of backbone transmission assets; 3
285-(8) subject to the approval of the commission, establish tariffs related 4
286-to the backbone transmission system under AS 44.83.720. 5
287-(b) The transmission organization may 6
288-(1) construct, own, and operate new backbone transmission assets; and 7
289-(2) enter into contracts, agreements, and partnerships that enhance 8
290-safety, resiliency, reliability, and efficiency of the backbone transmission system. 9
291-(c) The transmission organization may not exchange, donate, sell, or otherwise 10
292-convey a backbone transmission asset owned by the transmission organization without 11
293-approval of the legislature in advance of the effective date of the conveyance. 12
294-(d) The transmission organization shall ensure that work performed on new 13
295-construction and maintenance of backbone transmission assets controlled by the 14
296-transmission organization is prioritized to give first preference to the Railbelt utility 15
297-that serves the area in which the work is performed. The transmission organization 16
298-shall compensate the utility for reasonable and necessary expenses the utility incurs in 17
299-performing the work. The work must be performed subject to the terms and conditions 18
300-of any existing collective bargaining agreements. 19
301-(e) The transmission organization may adopt regulations necessary to 20
302-implement AS 44.83.700 - 44.83.750. 21
303-Sec. 44.83.720. Revenue mechanism. (a) The transmission organization shall 22
304-hold and administer a commission-approved open access transmission tariff that 23
305-ensures nondiscriminatory access to the backbone transmission system. 24
306-(b) The transmission organization shall adopt a commission-approved 25
307-transmission cost recovery methodology that ensures the reliability and sufficient 26
308-capacity of the backbone transmission system to support and promote state and 27
309-regional energy policies and a rigorous, dynamic economy. 28
310-(c) The cost recovery methodology for the transmission organization must, as 29
311-approved by the commission, 30
312-(1) pool backbone transmission system costs and allocate those costs 31 33-LS1047\Y
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316-through certificated load-serving entities on a coincident peak or load ratio share basis, 1
317-or a combination of both; and 2
318-(2) account for 3
319-(A) required backbone transmission system ancillary services; 4
320-(B) backbone transmission system congestion; and 5
321-(C) disruptions to the backbone transmission system that result 6
322-in the isolation of one geographical area of the backbone transmission system 7
323-from another for more than 24 hours. 8
324-(d) A Railbelt utility shall pass the commission-approved transmission costs 9
325-directly and transparently to the utility's customers. 10
326-(e) A Railbelt utility that provides service exclusively on the Kenai Peninsula 11
327-is not subject to the cost recovery methodology for the transmission organization until 12
328-(1) the transmission line between the Kenai Peninsula and Anchorage 13
329-is upgraded to a capacity of 230 kilovolts; or 14
330-(2) a high-voltage submarine cable between the Kenai Peninsula and 15
331-the area near Beluga is operational. 16
332-Sec. 44.83.730. Integrated transmission planning. (a) At least once every 10 17
333-years, the transmission organization shall, in consultation with stakeholders, create and 18
334-review an integrated transmission plan for the backbone transmission system. 19
335-(b) The integrated transmission plan must articulate the strategic trajectory, 20
336-operational blueprint, capital improvement funding requirements, and developmental 21
337-outlook for the backbone transmission system, considering projected load growth, 22
338-technological advancement, fuel supply projections, generation plans, safety, 23
339-resiliency, reliability, efficiency, and economic impacts. 24
340-(c) The transmission organization shall seek feedback and input from the 25
341-public throughout the integrated transmission plan development process to ensure that 26
342-the plan reflects a broad range of perspectives and addresses community and industry 27
343-concerns. 28
344-Sec. 44.83.740. Transfer management of assets. (a) To achieve the integrated 29
345-and streamlined governance of the backbone transmission system, the transmission 30
346-organization shall identify the existing backbone transmission assets that are part of 31 33-LS1047\Y
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350-the backbone transmission system, and the Railbelt utilities shall transfer management 1
351-of those assets to the transmission organization on or before July 1, 2026. 2
352-(b) The authority shall transfer backbone transmission assets identified under 3
353-(a) of this section that are owned or managed by the authority to the transmission 4
354-organization. 5
355-(c) A Railbelt utility shall pay penalties as determined by the commission for 6
356-failure to transfer management of backbone transmission assets to the transmission 7
357-organization as required under this section. 8
358-Sec. 44.83.750. Definitions. In AS 44.83.700 - 44.83.750, 9
359-(1) "backbone transmission system" means the backbone transmission 10
360-assets in the Railbelt that facilitate the transfer of large-scale electrical power between 11
361-or across separate geographical areas; "backbone transmission system" does not 12
362-include assets that would be considered distribution facilities or radial facilities under 13
363-the standards established by the Federal Energy Regulatory Commission; 14
364-(2) "commission" means the Regulatory Commission of Alaska; 15
365-(3) "interconnected electric energy transmission network" has the 16
366-meaning given in AS 42.05.790; 17
367-(4) "Railbelt" means the geographic region from the Kenai Peninsula 18
368-to Interior Alaska that is connected to a common electric transmission backbone; 19
369-(5) "Railbelt utility" means a public electric utility certificated to 20
370-operate in the Railbelt; 21
371-(6) "transmission organization" means the Railbelt Transmission 22
372-Organization established by AS 44.83.700. 23
373- * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 24
374-read: 25
375-APPLICABILITY AND TRANSITION: ELECTRIC RELIABILITY 26
376-ORGANIZATIONS. (a) AS 42.05.763, added by sec. 4 of this Act, applies to an electric 27
377-reliability organization with a certificate issued or renewed by the Regulatory Commission of 28
378-Alaska on or after the effective date of sec. 4 of this Act, except that an existing member of 29
379-the board of a certificated electric reliability organization who does not meet the qualifications 30
380-may continue to serve until the member's successor is appointed.
381-31 33-LS1047\Y
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385-(b) AS 42.05.770(3), as amended by sec. 6 of this Act, applies to costs incurred by an 1
386-electric reliability organization on or after the effective date of sec. 6 of this Act. 2
387- * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 3
388-read: 4
389-TRANSITION: AGREEMENT BETWEEN ALASKA ENERGY AUTHORITY 5
390-AND RAILBELT UTILITIES. To ensure the successful implementation of AS 44.83.700 - 6
391-44.83.750, added by sec. 10 of this Act, on or before July 1, 2025, the Alaska Energy 7
392-Authority and the Railbelt utilities, as defined in AS 44.83.750, added by sec. 10 of this Act, 8
393-shall develop an agreement to implement AS 44.83.700 - 44.83.750, added by sec. 10 of this 9
394-Act. The agreement must establish a governance structure for the Railbelt Transmission 10
395-Organization established under AS 44.83.700, added by sec. 10 of this Act, that is modeled 11
396-after the governance structure of the Bradley Lake Hydroelectric Project, as outlined in the 12
397-Bradley Lake Power Sales Agreement, including the creation, duties, and methods of the 13
398-Bradley Lake Project Management Committee, dispute resolution, budgeting, financing, and 14
399-delegation of operations, with any adjustments the parties to the agreement determine are 15
400-necessary to accommodate the requirements of AS 44.83.700 - 44.83.750, added by sec. 10 of 16
401-this Act. 17
402- * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 18
403-read: 19
404-TRANSITION: INITIAL INTEGRATED TRANSMISSION PLAN AND CAPITAL 20
405-IMPROVEMENT PROGRAM. The Alaska Energy Authority shall immediately assume the 21
406-integrated transmission planning duties under AS 44.83.730, added by sec. 10 of this Act, 22
407-develop an initial integrated transmission plan as soon as practicable, and begin execution of a 23
408-five-year transmission capital improvement program based on the plan as soon as practicable. 24
409-The authority shall transfer the responsibility for the plan and program to the Railbelt 25
410-Transmission Organization established under AS 44.83.700, added by sec. 10 of this Act, 26
411-after the agreement establishing the governance structure of the organization under sec. 12 of 27
412-this Act has been executed. 28
413- * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 29
414-read: 30
415-TRANSITION: REGULATORY COMMISSION OF ALASKA MEMBERS. An 31 33-LS1047\Y
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419-individual who is a member of the Regulatory Commission of Alaska on the day before the 1
420-effective date of sec. 1 of this Act continues to serve on the Regulatory Commission of Alaska 2
421-until the member's term expires and a successor is appointed and qualified. The governor shall 3
422-make appointments for vacancies that occur on or after the effective date of sec. 1 of this Act 4
423-in accordance with AS 42.04.020(a), as amended by sec. 1 of this Act. 5
424- * Sec. 15. Sections 12 and 13 of this Act take effect immediately under AS 01.10.070(c). 6
425- * Sec. 16. Except as provided in sec. 15 of this Act, this Act takes effect July 1, 2024. 7
352+that is modeled after the provisions governing backbone transmission in 16 Texas 1
353+Administrative Code 25.192, as it reads on the effective date of this section, with 2
354+modifications as necessary. 3
355+ * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 4
356+read: 5
357+TRANSITION: INITIAL INTEGRATED GRID PLAN AND CAPITAL 6
358+IMPROVEMENT PROGRAM. The Alaska Energy Authority shall immediately assume the 7
359+integrated grid planning duties under AS 44.83.730, added by sec. 10 of this Act, develop an 8
360+initial integrated grid plan as soon as practicable, and begin execution of a five-year grid 9
361+capital improvement program based on the plan as soon as practicable. The authority shall 10
362+transfer the responsibility for the plan and program to the Railbelt Transmission Organization 11
363+established under AS 44.83.700, added by sec. 10 of this Act, after the authority has adopted 12
364+regulations for the governance structure of the organization under sec. 12 of this Act. 13
365+ * Sec. 14. Sections 12 and 13 of this Act take effect immediately under AS 01.10.070(c). 14
366+ * Sec. 15. Except as provided in sec. 14 of this Act, this Act takes effect July 1, 2024. 15