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HB 187: "An Act creating the Railbelt Electrical Transmission Authority; and relating to the duties of the Regulatory Commission of Alaska."

00                             HOUSE BILL NO. 187                                                                          
01 "An Act creating the Railbelt Electrical Transmission Authority; and relating to the                                    
02 duties of the Regulatory Commission of Alaska."                                                                         
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 42.05.711 is amended by adding a new subsection to read:                                           
05            (u)  Provisions of this chapter that have been explicitly superseded by a                                    
06       provision adopted by the Railbelt Electrical Transmission Authority created under                                 
07       AS 42.05.900 - 42.05.950 do not apply to a utility with a representative on the board                             
08       of the Railbelt Electrical Transmission Authority created under AS 42.05.900 -                                    
09       42.05.950.                                                                                                        
10    * Sec. 2. AS 42.05 is amended by adding new sections to read:                                                      
11              Article 9A. Railbelt Electrical Transmission Authority.                                                  
12            Sec. 42.05.900. Creation of authority. The commission shall establish the                                  
13       Railbelt Electrical Transmission Authority for the purpose of developing a reasonable                             
14       plan to manage the electric transmission system of the Railbelt area; determining,                                
01       objectively and unbiasedly, the optimal output of electrical generation facilities to                             
02       meet the system load, at the lowest possible cost, subject to transmission and                                    
03       operational constraints of the Railbelt area; and consolidating operations and tariffs.                           
04       The authority is a division of the commission.                                                                    
05            Sec. 42.05.910. Members. (a) The authority shall consist of 13 members who                                 
06       are appointed by and serve at the pleasure of the commission, as follows:                                         
07                 (1)  six members representing utilities, with one member from each of                                   
08       the following areas:                                                                                              
09                      (A)  the Anchorage and upper Kenai Peninsula areas;                                                
10                      (B)  the Fairbanks, Delta Junction, Nenana, Healy, Cantwell                                        
11            areas;                                                                                                       
12                      (C)  the Matanuska-Susitna, Eagle River, and Chugiak areas;                                        
13                      (D)  the Homer and the lower Kenai peninsula areas;                                                
14                      (E)  the Anchorage area;                                                                           
15                      (F)  the Seward area;                                                                              
16                 (2)  at least one member representing independent power producers in                                    
17       the Railbelt area of the state;                                                                                   
18                 (3)  at least one member representing consumers of the Interior area of                                 
19       the state;                                                                                                        
20                 (4)  at least one member representing consumers of the coastal Railbelt                                 
21       area of the state;                                                                                                
22                 (5)  at least one member representing the renewable energy sector in                                    
23       the Railbelt area of the state;                                                                                   
24                 (6)  at least one member who is an employee of the Alaska Energy                                        
25       Authority.                                                                                                        
26            (b)  The commission shall, in the appointment of members under this section,                                 
27       endeavor to create an authority that represents the interests of diverse stakeholders                             
28       across the Railbelt area.                                                                                         
29            (c)  The members of the authority shall, by seven or more affirmative votes,                                 
30       elect a chair from the members listed in (a)(2) - (6) of this section.                                            
31            Sec. 42.05.920. Powers and duties. (a) The authority may, for the Railbelt                                 
01       area and subject to the approval of the commission,                                                               
02                 (1)  adopt rules                                                                                        
03                      (A)  governing a unified transmission system, with the goal of                                     
04            optimizing the output of electrical generation facilities in the area in order to                            
05            meet the system load, at the lowest possible cost;                                                           
06                      (B)  establishing and administering a transparent and universal                                    
07            transmission tariff;                                                                                         
08                      (C)  implementing open access nondiscriminatory transmission                                       
09            services;                                                                                                    
10                      (D)  establishing reliability, planning, and interconnection                                       
11            standards;                                                                                                   
12                      (E)  establishing planning and interconnection protocols;                                          
13                      (F)  allowing rate recovery for transmission;                                                      
14                 (2)  authorize interconnections and the construction, development, or                                   
15       expansion of a transmission project;                                                                              
16                 (3)  create a long-term plan for the transmission system, including                                     
17       upgrades, and regional and area cooperation.                                                                      
18            (b)  A rule, authorization, or plan developed under (a) of this section must                                 
19       receive nine or more affirmative votes before the authority may submit it to the                                  
20       commission for approval.                                                                                          
21            (c)  In developing rules and authorizing interconnection and transmission                                    
22       projects under (a) of this section, the authority shall, to the greatest extent possible,                         
23                 (1)  adhere to nationally recognized reliability and interconnection                                    
24       standards;                                                                                                        
25                 (2)  use existing transmission and interconnection infrastructure;                                      
26                 (3)  provide nondiscriminatory access and service.                                                      
27            (d)  The authority may not own assets in excess of $100,000.                                                 
28            (e)  The commission shall provide staff for the authority.                                                   
29            Sec. 42.05.950. Definition. In AS 42.05.900 - 42.05.950, "authority" means                                 
30       the Railbelt Electrical Transmission Authority.