CSSB 106(FIN): "An Act establishing the energy authority revolving fund; repealing the rural electrification revolving loan fund and the bulk fuel revolving loan fund; relating to procurements for certain transmission lines; authorizing power transmission interties between Anchorage and the Kenai Peninsula, between Healy and Fairbanks, between the Swan Lake and Tyee Lake hydroelectric projects, and between Sutton and Glennallen and approving the design and construction costs of the interties; and providing for an effective date."
00CS FOR SENATE BILL NO. 106(FIN) 01 "An Act establishing the energy authority revolving fund; repealing the rural 02 electrification revolving loan fund and the bulk fuel revolving loan fund; relating 03 to procurements for certain transmission lines; authorizing power transmission 04 interties between Anchorage and the Kenai Peninsula, between Healy and 05 Fairbanks, between the Swan Lake and Tyee Lake hydroelectric projects, and 06 between Sutton and Glennallen and approving the design and construction costs 07 of the interties; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. FINDINGS AND INTENT. (a) The legislature finds that adequate, reliable, 10 electric service at affordable rates is a necessary ingredient of a modern society and a 11 prosperous developing economy. The legislature further finds that at the current stage of 12 social and economic development in the state, direct participation by the state is necessary to 13 assist in the development of a regional electric transmission infrastructure and to assist in 14 holding rates in high cost service areas to affordable levels.
01 (b) The legislature intends that the energy authority revolving fund, created by sec. 7 02 of this Act, be managed so that 03 (1) the money granted for design and construction of the power transmission 04 interties authorized by secs. 30, 31, 33, and 34 of this Act is disbursed as work progress 05 payments; 06 (2) money is provided to allow the funding source for the power cost 07 equalization program (AS 44.83.162 - 44.83.164) to be changed from the general fund to the 08 energy authority revolving fund; funding for power cost equalization from the general fund 09 and the energy authority revolving fund combined is intended to be $17,000,000 annually 10 through fiscal year 2013. 11 (c) The legislature further intends that this long-term commitment to the power cost 12 equalization program will permit and encourage the electric utility industry and its lenders to 13 develop the plans, make the investments, and take other actions that are necessary or prudent 14 to prepare to meet the utility needs of residents in rural Alaska without this assistance from 15 the state. 16 * Sec. 2. AS 36.30.850(b) is amended by adding a new paragraph to read: 17 (30) contracts between the Alaska Energy Authority and one or more 18 public utilities for the design and construction of an electric transmission line but only 19 if the utility or utilities have agreed, in writing, to pay the 20 (A) design and construction costs of the lines, after the 21 deduction of money appropriated for that purpose by the state, and to provide 22 for the repayment of any loans or bonded indebtedness related to the project, 23 regardless of final completion costs and unforeseen expenses; and 24 (B) operation and maintenance costs of the project. 25 * Sec. 3. AS 37.05.146 is amended to read: 26 Sec. 37.05.146. DEFINITION OF PROGRAM RECEIPTS. In AS 37.05.142 27 - 37.05.146 and AS 37.07.080, "program receipts" means fees, charges, income earned 28 on assets, and other state money received by a state agency in connection with the 29 performance of its functions; all program receipts except the following are general fund 30 program receipts: 31 (1) federal receipts;
01 (2) University of Alaska receipts (AS 14.40.491); 02 (3) individual, foundation, or corporation gifts, grants, or bequests that 03 by their terms are restricted to a specific purpose; 04 (4) receipts of the following funds: 05 (A) highway working capital fund (AS 44.68.210); 06 (B) correctional industries fund (AS 33.32.020); 07 (C) loan funds; 08 (D) international airport revenue fund (AS 37.15.430); 09 (E) funds managed by the Alaska Housing Finance Corporation 10 (AS 18.56.020), the Alaska Railroad Corporation (AS 42.40.010), the 11 Municipal Bond Bank Authority (AS 44.85.020), the Alaska Aerospace 12 Development Corporation (AS 14.40.821), or the Alaska Industrial 13 Development and Export Authority (AS 44.88.020); 14 (F) fish and game fund (AS 16.05.100); 15 (G) school fund (AS 43.50.140); 16 (H) training and building fund (AS 23.20.130); 17 (I) retirement funds (AS 14.25, AS 22.25, AS 26.05.222, 18 AS 39.35, and former AS 39.37); 19 (J) permanent fund (art. IX, sec. 15, Alaska Constitution); 20 (K) public school fund (AS 37.14.110); 21 (L) second injury fund (AS 23.30.040); 22 (M) fishermen's fund (AS 23.35.060); 23 (N) FICA administration fund (AS 39.30.050); 24 (O) receipts of the employee benefits program established under 25 AS 39.30.150 - 39.30.180; 26 (P) receipts of the deferred compensation program established 27 under AS 39.45; [.] 28 (Q) the energy authority revolving fund (AS 44.83.107); [.] 29 (5) receipts of or from the trust established by AS 37.14.400 - 30 37.14.450, except reimbursements described in AS 37.14.410. 31 * Sec. 4. AS 44.25.020 is amended to read:
01 Sec. 44.25.020. DUTIES OF DEPARTMENT. The Department of Revenue 02 shall 03 (1) enforce the tax laws of the state; 04 (2) collect, account for, have custody of, invest, and manage all state 05 funds and all revenues of the state except revenues incidental to a program of licensing 06 and regulation carried on by another state department and funds managed and invested 07 by the Alaska State Pension Investment Board; 08 (3) register cattle brands; 09 (4) supply necessary clerical and administrative services for the 10 Alcoholic Beverage Control Board; 11 (5) invest [AND MANAGE] the balance of the power development 12 account in the energy authority revolving fund in accordance with AS 44.83.386; 13 (6) in accordance with the policies established by the board of trustees 14 of the Alaska State Pension Investment Board, collect, account for, have custody of, 15 invest, and manage the state funds for which the board is responsible. 16 * Sec. 5. AS 44.83.080(16) is amended to read: 17 (16) to recommend to the legislature 18 (A) the issuance of general obligation bonds of the state to 19 finance the construction of a power project if the authority first determines that 20 the project cannot be financed by revenue bonds of the authority at reasonable 21 rates of interest; 22 (B) the pledge of the credit of the state to guarantee repayment 23 of all or any portion of revenue bonds issued to assist in construction of power 24 projects; 25 (C) an appropriation from the general fund 26 (i) for debt service on bonds or other project purposes; 27 or 28 (ii) to reduce the amount of debt financing for the 29 project; 30 (D) an appropriation to the power project loan account 31 [POWER PROJECT FUND] for a power project;
01 (E) [REPEALED 02 (F)] development of a project under financing arrangements 03 with other entities using leveraged leases or other financing methods; 04 (F) [(G)] an appropriation for a power project acquired or 05 constructed under AS 44.83.380 - 44.83.425 (energy program for Alaska). 06 * Sec. 6. AS 44.83.105 is amended to read: 07 Sec. 44.83.105. BONDS FOR POWER PROJECTS UNDER THE ENERGY 08 PROGRAM FOR ALASKA. The authority may borrow money and issue its bonds 09 for the acquisition or construction of power projects to be acquired or constructed 10 under the energy program for Alaska. The principal of and interest on the bonds are 11 payable from money derived from the sale of wholesale power from power projects 12 financed under AS 44.83.380 - 44.83.425 from the power development account 13 [FUND] or from a source referred to in AS 44.83.100 as the authority determines. The 14 bonds may be issued if 15 (1) appropriations to the power development account [FUND] for the 16 power project are insufficient to cover the cost of acquiring or constructing the power 17 project; and 18 (2) the authority determines that the amount of interest the authority 19 will pay on its bonds is not more than alternative costs of securing money from other 20 sources, except for the general fund, to pay for the acquisition or construction of the 21 power project. 22 * Sec. 7. AS 44.83 is amended by adding a new section to read: 23 Sec. 44.83.107. ENERGY AUTHORITY REVOLVING FUND. (a) The 24 energy authority revolving fund is established in the authority. The revolving fund 25 consists of 26 (1) appropriations made to it by the legislature; 27 (2) money or other assets transferred to it by the authority; 28 (3) unrestricted payments on loans made or purchased by the authority; 29 (4) income and interest on amounts in the fund; and 30 (5) all revenue of the authority not otherwise required to pay the 31 expenses of authority projects.
01 (b) The board of directors of the authority may establish operations, renewal 02 and replacement, capitalization, and self-insurance reserve accounts within the 03 revolving fund. 04 (c) Unless otherwise expressly stated, the accounts created in this chapter, 05 including the power project loan account under AS 44.83.170, the power development 06 account under AS 44.83.382, and the power development revolving loan account under 07 AS 44.83.500, are accounts of the energy authority revolving fund. The electrical 08 service extension fund under AS 44.83.370 and the power cost equalization fund under 09 AS 44.83.162 are not accounts of the energy authority revolving fund. The authority 10 may create additional funds or accounts either within the revolving fund or outside the 11 fund. Subject to agreements made with the holders of the authority's bonds or with 12 other persons and subject to any restrictions placed upon legislative appropriations, the 13 authority may transfer amounts in a fund or account in the revolving fund to another 14 fund or account within the revolving fund. 15 (d) The foreclosure expense account is established as a special account in the 16 energy authority revolving fund, as a reserve from fund equity. The authority may 17 spend money credited to the foreclosure expense account when necessary to protect the 18 state's security interest in collateral on loans made under this chapter or to defray 19 expenses incurred during foreclosure proceedings after a default by an obligor. 20 (e) The authority may 21 (1) pledge amounts in the revolving fund to secure bonds of the 22 authority; or 23 (2) enter into agreements with respect to the revolving fund that it 24 considers necessary to secure its bonds. 25 (f) The authority may loan amounts from the revolving fund for any purpose 26 authorized by this chapter. A loan from the fund in an amount greater than 27 $10,000,000 must be specifically authorized by the legislature. The authority may 28 invest in projects or programs that are expressly authorized by the legislature under 29 AS 44.83.185 and in projects or programs for which the legislature has made a specific 30 appropriation to the fund. 31 (g) The legislature may appropriate amounts in the revolving fund to the
01 authority for the cost of the power cost equalization program, for administering the 02 fund, and for other programs and projects of the authority or to other public purposes. 03 Money in the fund does not lapse. 04 * Sec. 8. AS 44.83.170(a) is amended to read: 05 (a) The [THERE IS ESTABLISHED AS A SEPARATE FUND THE] power 06 project loan account is established in the energy authority revolving fund. The 07 account consists of 08 (1) appropriations to the account; 09 (2) unrestricted payments on loans made from or purchased by the 10 account; 11 (3) income and interest on amounts in the account; and 12 (4) other money and other assets transferred to or deposited in the 13 account as directed by resolution of the board of directors of the authority [FUND 14 THAT SHALL BE DISTINCT FROM ANY OTHER MONEY OR FUNDS OF THE 15 AUTHORITY, AND THAT INCLUDES ONLY MONEY APPROPRIATED BY THE 16 LEGISLATURE]. 17 * Sec. 9. AS 44.83.170(b) is amended to read: 18 (b) The authority may make loans from the power project loan account 19 [FUND] 20 (1) to electric utilities, regional electric authorities, municipalities, 21 [CITIES, BOROUGHS,] regional and village corporations, village councils, and 22 nonprofit marketing cooperatives to pay the costs of 23 (A) reconnaissance studies, feasibility studies, license and 24 permit applications, preconstruction engineering, and design of power projects; 25 (B) constructing, equipping, modifying, improving, and 26 expanding small-scale power production facilities, conservation facilities, bulk 27 fuel storage facilities, and transmission and distribution facilities, including 28 energy production, transmission and distribution, and waste energy conservation 29 facilities that depend on fossil fuel, wind power, tidal, geothermal, biomass, 30 hydroelectric, solar or other non-nuclear energy sources; [AND] 31 (C) reconnaissance studies, preconstruction engineering, design,
01 construction, equipping, modification, and expansion of potable water supply 02 including surface storage and groundwater sources and transmission of water 03 from surface storage to existing distribution systems; and 04 (D) acquisition of bulk fuel and bulk fuel reserves; 05 (2) to a borrower for a power project if 06 (A) the loan is entered into under a leveraged lease financing 07 arrangement; 08 (B) the party that will be responsible for the power project is 09 an electric utility, regional electric authority, municipality, [CITY, 10 BOROUGH,] regional or village corporation, village council, or nonprofit 11 marketing cooperative; and 12 (C) the borrower seeking the loan demonstrates to the authority 13 that the financing arrangement for the power project will reduce project 14 financing costs below costs of comparable public power projects. 15 * Sec. 10. AS 44.83.170(c) is amended to read: 16 (c) Before making a loan from the power project loan account [FUND], the 17 authority shall, by regulation, specify 18 (1) standards for the eligibility of borrowers and the types of projects 19 to be financed with loans; 20 (2) standards regarding the technical and economic viability and 21 revenue self-sufficiency of eligible projects; 22 (3) collateral or other security required for loans; 23 (4) the terms and conditions of loans; 24 (5) criteria to establish financial feasibility and to measure the amount 25 of state assistance necessary for particular projects to meet the financial feasibility 26 criteria; and 27 (6) other relevant criteria, standards, or procedures. 28 * Sec. 11. AS 44.83.170(e) is amended to read: 29 (e) Repayment of the loans shall be secured in any manner that the authority 30 determines is feasible to assure prompt repayment under a loan agreement entered into 31 with the borrower. The authority may make an unsecured loan from the power project
01 loan account [FUND] to a borrower regulated by the Alaska Public Utilities 02 Commission under AS 42.05 if the borrower has a substantial history of repaying 03 long-term loans and the capacity to repay the loan. Under a loan agreement, 04 repayment may be deferred for 10 years or until the project for which the loan is made 05 has achieved earnings from its operations sufficient to pay the loan, whichever is 06 earlier. 07 * Sec. 12. AS 44.83.170(f) is amended to read: 08 (f) Power projects are subject to the following limitations on interest and 09 specific restrictions: 10 (1) power projects for which loans are outstanding from the former 11 water resources revolving loan fund under former AS 45.86 on July 13, 1978, may 12 receive additional financing from the power project loan account [FUND]; the 13 additional financing, if granted, must be 14 (A) granted for a term not exceeding 50 years; 15 (B) granted at an interest rate of not less than three or more 16 than five percent a year on the unpaid balance; 17 (C) conditioned on the repayment of loan principal and interest 18 to begin on the earlier of 19 (i) the date of the start of commercial operation of the 20 project; or 21 (ii) 10 years from the date the loan is granted; 22 (2) loans for power projects [SHALL BE GRANTED] 23 (A) may be granted for a term not to exceed 50 years; [AND] 24 (B) except as provided in (C) of this paragraph, shall have 25 [AT] an interest rate that is not less than five percent and that is the lesser of 26 (i) a rate equal to the percentage that is the average 27 weekly yield of municipal bonds for the 12 months preceding the date 28 of the loan, as determined by the authority from municipal bond yield 29 rates reported in the 30-year revenue index of the Weekly Bond Buyer; 30 or 31 (ii) a rate determined by the authority that allows the
01 project to meet criteria of financial feasibility established under (c) of 02 this section; and 03 (C) may have an interest rate that is as low as zero percent 04 if the legislature specifically authorizes the no-interest loan or if the loan 05 is for a transmission intertie project that connects two or more utility 06 systems not previously connected or that provides a second circuit to 07 improve the reliability and transfer capability of an existing system. 08 * Sec. 13. AS 44.83.170(g) is amended to read: 09 (g) Loan repayments and interest earned by loans from the power project loan 10 account [FUND] shall be deposited in the energy authority revolving [STATE 11 GENERAL] fund. 12 * Sec. 14. AS 44.83.170(h) is amended to read: 13 (h) The legislature may forgive the repayment of a loan made from the power 14 project loan account [FUND] for a reconnaissance study or a feasibility study when 15 the authority finds that the power project for which the loan was made is not feasible. 16 * Sec. 15. AS 44.83.170(i) is amended to read: 17 (i) Money in the power project loan account [FUND] may be used by the 18 legislature to make appropriations for costs of administering the fund. 19 * Sec. 16. AS 44.83.181(c) is amended to read: 20 (c) The plan of finance must include recommendations of the most appropriate 21 means to finance a project, including, but not limited to, 22 (1) the issuance of revenue bonds of the authority; 23 (2) the issuance of 24 (A) general obligation bonds of the state; or 25 (B) revenue bonds of the authority that are guaranteed or 26 partially guaranteed by the state; 27 (3) an appropriation from the general fund 28 (A) to pay debt service on bonds or for other project purposes; 29 or 30 (B) to reduce the amount of debt financing for the project; 31 (4) a loan from the general fund;
01 (5) financing arrangements with other entities using leveraged leases 02 or other financing methods; 03 (6) assistance from any federal agency, including, but not limited to, 04 the Rural Electrification Administration; 05 (7) a loan from the power project loan account [FUND] under 06 AS 44.83.170(a); or 07 (8) any combination of financing arrangements listed in this subsection. 08 * Sec. 17. AS 44.83.187(a) is amended to read: 09 (a) The provisions of AS 44.83.177 - 44.83.185 and 44.83.189 apply only to 10 a proposed new project that will generate more than 1.5 megawatts of power and 11 (1) requires an appropriation from the state general fund or [,] from the 12 power project loan account [FUND, OR FROM THE RENEWABLE RESOURCES 13 FUNDS]; or 14 (2) is based on a plan of finance that requires the issuance of general 15 obligation bonds or other pledge of the credit of the state. 16 * Sec. 18. AS 44.83.380(b) is amended to read: 17 (b) The energy program for Alaska is a program by which the authority may 18 acquire or construct power projects with money appropriated by the legislature to the 19 power development account [FUND] established in AS 44.83.382. A power project 20 may be acquired or constructed as part of the energy program for Alaska only if the 21 project is submitted to and approved by the legislature in accordance with procedures 22 set out in AS 44.83.177 - 44.83.187. 23 * Sec. 19. AS 44.83.382 is amended to read: 24 Sec. 44.83.382. POWER DEVELOPMENT ACCOUNT [FUND] 25 ESTABLISHED. (a) The [A] power development account [FUND] is established in 26 the Alaska Energy Authority to carry out the purposes of AS 44.83.380 - 44.83.425. 27 (b) The account [FUND] includes money appropriated to it by the legislature. 28 * Sec. 20. AS 44.83.384 is amended to read: 29 Sec. 44.83.384. USE OF ACCOUNT [FUND] BALANCE. (a) The account 30 [FUND] may be used by the authority to provide money for 31 (1) reconnaissance and feasibility studies and power project finance
01 plans prepared under AS 44.83.177 - 44.83.181; 02 (2) the cost of a power project, including but not limited to costs of 03 acquiring necessary licenses, preparing engineering designs, obtaining land, and 04 constructing the power project; 05 (3) the defeasance of bonds, or the payment of debt service on loans 06 for or on an issue of bonds sold in connection with a power project; 07 (4) the cost of operating and maintaining power projects; and 08 (5) debt service on power projects. 09 (b) Money in the account [FUND] may be used under (a) of this section only 10 for a power project that 11 (1) is economically feasible; and 12 (2) provides the lowest reasonable power cost to utility customers in 13 the market area for the estimated life of the power project, whether operated by itself 14 or in conjunction with other power projects in the market area, and that operates or 15 will operate on one or more of the following: 16 (A) renewable energy resources, including but not limited to 17 hydroelectric power, wind, biomass, geothermal, tidal or solar energy, or a 18 method that uses temperature differentials or other physical properties of the 19 ocean; 20 (B) coal or peat; 21 (C) energy derived from waste heat; or 22 (D) fossil fuel, including oil or natural gas. 23 (c) Notwithstanding (b)(1) of this section and AS 44.83.396 - 44.83.398, the 24 account [FUND] may be used by the authority to provide money for the cost of a 25 power project that is or was either constructed or owned by the United States 26 government if the requirements of this subsection are met. The provisions of 27 AS 44.83.177 - 44.83.187 do not apply to a power project financed under this 28 subsection. The authority may use money in the account [FUND] for the cost of a 29 power project under this subsection if 30 (1) the legislature enacts a law approving the project; 31 (2) the office of management and budget in the Office of the Governor
01 reviews a feasibility study and a plan of finance for the project and determines that the 02 feasibility study complies with the requirements for a feasibility study submitted under 03 AS 44.83.181(b) and that the plan of finance complies with the requirements for a plan 04 of finance submitted under AS 44.83.181(c); and 05 (3) the project meets the other requirements of this chapter. 06 * Sec. 21. AS 44.83.386 is amended to read: 07 Sec. 44.83.386. INVESTMENT OF ACCOUNT [FUND]. The Department 08 of Revenue shall invest the money in the account [FUND] in accordance with 09 AS 37.10.070, 37.10.071, and 37.10.075. The Department of Revenue shall provide 10 money in the account [FUND] to the authority only after costs have been incurred or 11 amounts in the account [FUND] have been otherwise obligated under contracts for the 12 acquisition and construction of a project. Amounts that have been obligated, but for 13 which costs have not yet been incurred, may be segregated by the Department of 14 Revenue or transferred to the authority only with the prior approval or agreement of 15 the commissioner of revenue. [INCOME RECEIVED ON MONEY THAT IS 16 SEGREGATED OR TRANSFERRED UNDER THIS SECTION MUST BE 17 DEPOSITED IN THE GENERAL FUND.] 18 * Sec. 22. AS 44.83.388(a) is amended to read: 19 (a) The authority shall maintain records of power project allocations from the 20 account [FUND] for each power project 21 (1) approved in accordance with AS 44.83.185; and 22 (2) for which an allocation is made from an appropriation made by the 23 legislature without specifying an appropriation to a project. 24 * Sec. 23. AS 44.83.425 is amended by adding a new paragraph to read: 25 (6) "account" means the power development account established by 26 AS 44.83.382. 27 * Sec. 24. AS 44.83.500 is amended to read: 28 Sec. 44.83.500. CREATION OF ACCOUNT [FUND]. (a) There is 29 established in the Alaska Energy Authority the power development revolving loan 30 account [FUND] to carry out the purpose of AS 44.83.500 - 44.83.530. The account 31 [FUND] may be used for no other purpose.
01 (b) The account [FUND] consists of 02 (1) appropriations to the account [FUND] by the legislature; 03 (2) repayments of principal to the account [FUND]; and 04 (3) income from investment of money in the account [FUND] and 05 from loans made from the account [FUND]. 06 * Sec. 25. AS 44.83.510 is amended to read: 07 Sec. 44.83.510. POWERS AND DUTIES OF AUTHORITY IN 08 ADMINISTERING THE ACCOUNT [FUND]. (a) The authority may borrow from 09 the account [FUND] for the purpose of financing a power project acquired or 10 constructed by the authority under the energy program for Alaska (AS 44.83.380 - 11 44.83.425). Repayment of a loan from the account [FUND] must be made with the 12 proceeds from the sale of power from projects in the energy program for Alaska. 13 Except as provided in AS 44.83.398(i), the payments required to be made by the 14 authority on a loan from the account [FUND] constitute debt service for the purpose 15 of calculating the wholesale power rate in AS 44.83.398(b)(1). 16 (b) After completion of a final plan of finance and approval of a project under 17 AS 44.83.185(c), a loan may be made from the account [FUND] for 18 (1) the cost or a portion of the cost of final design, acquisition, and 19 construction of a power project; 20 (2) defeasance or payment of bonds or notes of the authority issued for 21 a power project; 22 (3) the establishment of a reserve fund for renewals and replacements 23 for the operation of a completed power project; and 24 (4) any other project-related expenses, including those described in 25 AS 44.83.398(i). 26 * Sec. 26. AS 44.83.520(a) is amended to read: 27 (a) A loan from the account [FUND] shall be repaid in accordance with the 28 terms that the authority's board of directors determines to be appropriate. In 29 establishing the terms, including provision for a return to the state of an amount in 30 excess of the principal amount of the loan, the board of directors shall consider the 31 revenue that the authority could reasonably derive from the sale of power from the
01 projects based upon 02 (1) the costs, at the time the power sales agreement is initially 03 negotiated or renegotiated, of alternative sources of energy generation for utilities 04 purchasing power from a project financed with a loan from the account [FUND]; 05 (2) the effect of the loan terms on the wholesale power costs to all 06 utilities purchasing power from the initial project; 07 (3) the long-term benefits to consumers and communities of stable 08 wholesale power costs; 09 (4) the affordability of initial wholesale power costs that result from 10 the loan terms with utilities purchasing power from the initial project; 11 (5) increasing repayment, not to exceed five years, of debt service 12 payment per kilowatt hour gradually over the initial period of a loan repayment 13 schedule to the extent necessary to avoid significant rate increases to the consumer; 14 (6) the existing excess capacity of power projects; and 15 (7) the effects of increased capacity utilization, inflation, and alternative 16 energy production costs over the life of the initial project. 17 * Sec. 27. AS 44.83.520(c) is amended to read: 18 (c) A loan to the authority from the account [FUND] may not exceed 50 19 years. 20 * Sec. 28. AS 44.83.530 is amended by adding a new paragraph to read: 21 (3) "account" means the power development loan account. 22 * Sec. 29. AS 44.83.361, 44.83.363, 44.83.388(b), 44.83.425(3), 44.83.600, 44.83.605, 23 44.83.610, 44.83.615, 44.83.620, 44.83.625, 44.83.630, 44.83.392, and 44.83.650 are repealed. 24 * Sec. 30. In accordance with AS 44.83.185(c) and contingent upon secs. 32 and 35 of this 25 Act, the Alaska Energy Authority is authorized to provide for the design and construction of 26 a 138 kilovolt power transmission intertie between Anchorage and the Kenai Peninsula at a 27 cost of $89,000,000 in 1992 dollars. However, the power transmission intertie authorized by 28 this section may be designed and constructed at a voltage higher than 138 kilovolts but only 29 if the state does not incur additional costs to do so. 30 * Sec. 31. In accordance with AS 44.83.185(c) and contingent upon secs. 32 and 35 of this 31 Act, the Alaska Energy Authority is authorized to provide for the design and construction of
01 a 138 kilovolt power transmission intertie between Healy and Fairbanks at a cost of 02 $89,000,000 in 1992 dollars. However, the power transmission intertie authorized by this 03 section may be designed and constructed at a voltage higher than 138 kilovolts but only if the 04 state does not incur additional costs to do so. 05 * Sec. 32. (a) The authorizations made by secs. 30 and 31 of this Act are contingent upon 06 written agreements between the Alaska Energy Authority and the electric utilities participating 07 in the projects authorized by those sections providing that the participating utilities agree to 08 pay 09 (1) design and construction costs for the power transmission interties 10 authorized by secs. 30 and 31 of this Act that exceed $90,000,000; these costs shall be divided 11 among the utilities in proportion to the retail kilowatt hour sales of each utility during the 12 previous calendar year; and 13 (2) the operation and maintenance costs of the power transmission interties 14 authorized by secs. 30 and 31 of this Act. 15 (b) Notwithstanding AS 42.05, the Alaska Public Utilities Commission may not review 16 the design and construction costs divided among the utilities under (a)(1) of this section. 17 * Sec. 33. (a) In accordance with AS 44.83.185(c) and contingent upon (b) and (c) of this 18 section and sec. 35 of this Act, the Alaska Energy Authority is authorized to provide for the 19 design and construction of a 115 kilovolt power transmission intertie between the Swan Lake 20 and the Tyee Lake hydroelectric projects at a cost of $56,000,000 in 1992 dollars. However, 21 the power transmission intertie authorized by this section may be designed and constructed 22 at a voltage higher than 115 kilovolts but only if the state does not incur additional costs to 23 do so. 24 (b) The authorization made by (a) of this section is contingent upon the execution of 25 a written agreement between the electric utilities participating in the project authorized by this 26 section and the Alaska Energy Authority that provides that the participating utility or utilities 27 agree to pay 28 (1) design and construction costs for the power transmission intertie authorized 29 by (a) of this section that exceed $35,000,000; and 30 (2) the operation and maintenance costs of the power transmission intertie 31 authorized by (a) of this section.
01 (c) The authorization made by (a) of this section is contingent upon the completion 02 of the requirements set out in AS 44.83.181 and 44.83.185(a). 03 * Sec. 34. (a) In accordance with AS 44.83.185(c) and contingent upon (b) and (c) of this 04 section and sec. 35 of this Act, the Alaska Energy Authority is authorized to provide for the 05 design and construction of a 138 kilovolt power transmission intertie between Sutton and 06 Glennallen at a cost of $50,000,000 in 1992 dollars. However, the power transmission intertie 07 authorized by this section may be designed and constructed at a voltage higher than 138 08 kilovolts but only if the state does not incur additional costs to do so. 09 (b) The authorization made by (a) of this section is contingent upon the execution of 10 a written agreement between the electric utility or utilities participating in the project 11 authorized by this section and the Alaska Energy Authority that provides that the participating 12 utility or utilities agree to pay 13 (1) design and construction costs for the power transmission intertie authorized 14 by (a) of this section that exceed $27,500,000; and 15 (2) the operation and maintenance costs of the power transmission intertie 16 authorized by (a) of this section. 17 (c) The authorization made by (a) of this section is contingent upon the completion 18 of the requirements set out in AS 44.83.181 and 44.83.185(a) and approval of the feasibility 19 study by the office of management and budget. 20 * Sec. 35. In providing for the design and construction of the interties authorized by secs. 21 30, 31, 33, and 34 of this Act, the Alaska Energy Authority shall make loans to the 22 appropriate participating utilities or award grants to them to the extent permitted by the 23 appropriation for the costs unless the participating utility declines in writing to apply for the 24 loan or grant. If the participating utility declines in writing to apply for the loan or grant, the 25 authority may proceed with the design or construction itself. 26 * Sec. 36. Sections 1 - 29 of this Act take effect immediately under AS 01.10.070(c).