SB 124: "An Act relating to the powers and finances of the Alaska Energy Authority; and providing for an effective date."
00SENATE BILL NO. 124 01 "An Act relating to the powers and finances of the Alaska Energy Authority; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 36.30.850(b) is amended by adding a new paragraph to read: 05 (30) contracts between the Alaska Energy Authority and one or more 06 utilities for the construction of electric transmission lines in which the utilities agree 07 to (A) pay for the design and construction costs of the lines and provide for the 08 repayment of any loans or bonded indebtedness related to the project, regardless of 09 final completion costs and unforeseen expenses; and (B) pay for all operation and 10 maintenance costs of the project. 11 * Sec. 2. AS 37.05.146 is amended to read: 12 Sec. 37.05.146. DEFINITION OF PROGRAM RECEIPTS. In AS 37.05.142 - 13 37.05.146 and AS 37.07.080, "program receipts" means fees, charges, income earned 14 on assets, and other state money received by a state agency in connection with the
01 performance of its functions; all program receipts except the following are general fund 02 program receipts: 03 (1) federal receipts; 04 (2) University of Alaska receipts (AS 14.40.491); 05 (3) individual, foundation, or corporation gifts, grants, or bequests that 06 by their terms are restricted to a specific purpose; 07 (4) receipts of the following funds: 08 (A) highway working capital fund (AS 44.68.210); 09 (B) correctional industries fund (AS 33.32.020); 10 (C) loan funds; 11 (D) international airport revenue fund (AS 37.15.430); 12 (E) funds managed by the Alaska Housing Finance Corporation 13 (AS 18.56.020), the Alaska Railroad Corporation (AS 42.40.010), the Alaska 14 Energy Authority (AS 44.83.020), the Municipal Bond Bank Authority 15 (AS 44.85.020), the Alaska Aerospace Development Corporation 16 (AS 14.40.821), or the Alaska Industrial Development and Export Authority 17 (AS 44.88.020); 18 (F) fish and game fund (AS 16.05.100); 19 (G) school fund (AS 43.50.140); 20 (H) training and building fund (AS 23.20.130); 21 (I) retirement funds (AS 14.25, AS 22.25, AS 26.05.222, 22 AS 39.35, and former AS 39.37); 23 (J) permanent fund (art. IX, sec. 15, Alaska Constitution); 24 (K) public school fund (AS 37.14.110); 25 (L) second injury fund (AS 23.30.040); 26 (M) fishermen's fund (AS 23.35.060); 27 (N) FICA administration fund (AS 39.30.050); 28 (O) receipts of the employee benefits program established under 29 AS 39.30.150 - 39.30.180; 30 (P) receipts of the deferred compensation program established 31 under AS 39.45; [.]
01 (Q) mental health trust fund (AS 37.14.031); [.] 02 (5) receipts of or from the trust established by AS 37.14.400 - 03 37.14.450, except reimbursements described in AS 37.14.410. 04 * Sec. 3. AS 39.25.110 is amended to read: 05 Sec. 39.25.110. EXEMPT SERVICE. Unless otherwise provide by law, the 06 following positions in the state service constitute the exempt service and are exempt 07 from the provisions of this chapter and the rules adopted under it: 08 (1) persons elected to public office by popular vote or appointed to fill 09 vacancies in elected offices; 10 (2) justices, judges, magistrates, and employees of the judicial branch 11 including employees of the judicial council; 12 (3) employees of the state legislature and its agencies; 13 (4) the head of each principal department in the executive branch; 14 (5) officers and employees of the University of Alaska; 15 (6) certificated teachers and noncertificated employees employed by a 16 regional educational attendance area established and organized under AS 14.08.031 - 17 14.08.041 to teach in, administer, or operate schools under the control of a regional 18 educational attendance area school board; 19 (7) certificated teachers employed by the Department of Education as 20 correspondence teachers, teachers in skill centers operated by the Department of 21 Education, or in Mt. Edgecumbe School; 22 (8) patients and inmates employed in state institutions; 23 (9) persons employed in a professional capacity to make a temporary 24 or special inquiry, study or examination as authorized by the governor; 25 (10) members of boards, commissions, or authorities; 26 (11) the officers and employees of the following boards, commissions, 27 and authorities: 28 (A) Alaska Gas Pipeline Financing Authority; 29 (B) Alaska Permanent Fund Corporation; 30 (C) Alaska Industrial Development and Export Authority; 31 (D) Alaska Commercial Fisheries Entry Commission;
01 (E) Alaska Commission on Postsecondary Education; 02 (F) Alaska Aerospace Development Corporation; 03 (G) Alaska Energy Authority; 04 (12) the executive secretary and legal counsel of the Alaska Municipal 05 Bond Bank Authority; 06 (13) physicians licensed to practice in this state and employed by the 07 division of mental health and developmental disabilities in the Department of Health 08 and Social Services or by the Department of Corrections; 09 (14) petroleum engineers and petroleum geologists employed in a 10 professional capacity by the Department of Natural Resources and by the Oil and Gas 11 Conservation Commission, except for those employed in the division of geological and 12 geophysical surveys in the Department of Natural Resources; 13 (15) officers, agents, and employees of the Alcoholic Beverage Control 14 Board granted limited peace officer powers by the Alcoholic [ALCOHOL] Beverage 15 Control Board under AS 04.06.110; 16 (16) persons employed by the division of marine transportation as 17 masters and members of the crews of vessels who operate the state ferry system and 18 who are covered by a collective bargaining agreement provided in AS 23.40.040; 19 (17) officers and employees of the state who reside in foreign countries; 20 (18) employees of the Alaska Seafood Marketing Institute; 21 (19) fire fighters employed by the Department of Natural Resources for 22 a fire emergency; 23 (20) employees of the Office of the Governor and the office of the 24 lieutenant governor, including the staff of the governor's mansion; 25 (21) employees of the Citizens' Advisory Commission on Federal Areas 26 in Alaska (AS 41.37.010); 27 (22) youth employed by the Department of Natural Resources under the 28 Youth Employment and Student Intern programs; 29 (23) the executive director of the Medicaid Rate Advisory Commission; 30 (24) students employed by the state institutions in which the students 31 are enrolled;
01 (25) the executive director and staff of the Alaska Science and 02 Technology Foundation (AS 37.17.010); 03 (26) investment officers in the Department of Revenue; 04 (27) the executive director and other staff of the Alaskan Tourism 05 Marketing Council; 06 (28) persons engaged in employment or pre-employment training 07 programs operated by the Department of Military and Veterans' Affairs; 08 (29) employees of the Alaska Amateur Sports Authority. 09 * Sec. 4. AS 44.25.020 is amended to read: 10 Sec. 44.25.020. DUTIES OF DEPARTMENT. The Department of Revenue 11 shall 12 (1) enforce the tax laws of the state; 13 (2) collect, account for, have custody of, invest, and manage all state 14 funds and all revenues of the state except revenues incidental to a program of licensing 15 and regulation carried on by another state department and funds managed and invested 16 by the Alaska State Pension Investment Board; 17 (3) register cattle brands; 18 (4) supply necessary clerical and administrative services for the 19 Alcoholic Beverage Control Board; 20 (5) [INVEST AND MANAGE THE BALANCE OF THE POWER 21 DEVELOPMENT FUND IN ACCORDANCE WITH AS 44.83.386; 22 (6)] in accordance with the policies established by the board of trustees 23 of the Alaska State Pension Investment Board, collect, account for, have custody of, 24 invest, and manage the state funds for which the board is responsible. 25 * Sec. 5. AS 44.83.010 is amended to read: 26 Sec. 44.83.010. LEGISLATIVE FINDING AND POLICY. (a) The legislature 27 finds, determines and declares that 28 (1) there exist numerous potential hydroelectric and fossil fuel gathering 29 sites in the state; 30 (2) the establishment of energy [POWER] projects at these sites is 31 necessary to supply power at the lowest reasonable cost to the state's municipal
01 electric, rural electric, cooperative electric, and private electric utilities, and regional 02 electric authorities, and thereby to the consumers of the state, as well as to supply 03 existing or future industrial needs; 04 (3) the achievement of the goals of lowest reasonable consumer power 05 costs and beneficial long-term economic growth and of establishing, operating and 06 developing energy [POWER] projects in the state will be accelerated and facilitated 07 by the creation of an instrumentality of the state with powers to construct, acquire, 08 finance, and operate energy [POWER] projects. 09 (b) It is declared to be the policy of the state, in the interests of promoting the 10 general welfare of all the people of the state, and public purposes, to reduce consumer 11 power costs and otherwise to encourage the long-term economic growth of the state, 12 including the development of its natural resources, through the establishment of energy 13 [POWER] projects by creating the public corporation with powers, duties and functions 14 as provided in this chapter. 15 * Sec. 6. AS 44.83.070 is amended to read: 16 Sec. 44.83.070. PURPOSE OF THE AUTHORITY. The purpose of the 17 authority is to promote, develop and advance the general prosperity and economic 18 welfare of the people of the state by providing a means of constructing, acquiring, 19 financing and operating energy [POWER] projects and facilities that recover and use 20 waste energy. 21 * Sec. 7. AS 44.83.080 is amended to read: 22 Sec. 44.83.080. POWERS OF THE AUTHORITY. In furtherance of its 23 corporate purposes, the authority has the following powers in addition to its other 24 powers: 25 (1) to sue and be sued; 26 (2) to have a seal and alter it at pleasure; 27 (3) to make and alter bylaws for its organization and internal 28 management; 29 (4) to adopt regulations governing the exercise of its corporate powers 30 and implementing this chapter; 31 (5) to acquire, whether by construction, purchase, gift or lease, and to
01 improve, equip, operate, and maintain energy [POWER] projects; 02 (6) to issue bonds to carry out any of its corporate purposes and 03 powers, including the acquisition or construction of a project to be owned or leased, 04 as lessor or lessee, by the authority, or by another person, or the acquisition of any 05 interest in a project or any right to capacity of a project, the establishment or increase 06 of reserves to secure or to pay the bonds or interest on them, and the payment of all 07 other costs or expenses of the authority incident to and necessary or convenient to 08 carry out its corporate purposes and powers; 09 (7) to sell, lease as lessor or lessee, exchange, donate, convey or 10 encumber in any manner by mortgage or by creation of any other security interest, real 11 or personal property owned by it, or in which it has an interest, when, in the judgment 12 of the authority, the action is in furtherance of its corporate purposes; 13 (8) to accept gifts, grants or loans from, and enter into contracts or 14 other transactions regarding them, with any person; 15 (9) to deposit or invest its funds, subject to agreements with 16 bondholders; 17 (10) to enter into contracts with the United States or any person and, 18 subject to the laws of the United States and subject to concurrence of the legislature, 19 with a foreign country or its agencies, for the financing, construction, acquisition, 20 operation and maintenance of all or any part of an energy [A POWER] project, either 21 inside or outside the state, and for the sale or transmission of power from a project or 22 any right to the capacity of it or for the security of any bonds of the authority issued 23 or to be issued for the project; 24 (11) to enter into contracts with any person and with the United States, 25 and, subject to the laws of the United States and subject to the concurrence of the 26 legislature, with a foreign country or its agencies for the purchase, sale, exchange, 27 transmission, or use of power from a project, or any right to the capacity of it; 28 (12) to apply to the appropriate agencies of the state, the United States 29 and to a foreign country and any other proper agency for the permits, licenses, or 30 approvals as may be necessary, and to construct, maintain and operate energy 31 [POWER] projects in accordance with the licenses or permits, and to obtain, hold and
01 use the licenses and permits in the same manner as any other person or operating unit; 02 (13) to perform reconnaissance studies, feasibility studies, and 03 engineering and design with respect to energy [POWER] projects; 04 (14) to enter into contracts or agreements with respect to the exercise 05 of any of its powers, including contracts for the administration of loan programs 06 under this chapter, and do all things necessary or convenient to carry out its 07 corporate purposes and exercise the powers granted in this chapter; 08 (15) to exercise the power of eminent domain in accordance with 09 AS 09.55.240 - 09.55.460; 10 (16) to recommend to the legislature 11 (A) the issuance of general obligation bonds of the state to 12 finance the construction of an energy [A POWER] project if the authority first 13 determines that the project cannot be financed by revenue bonds of the 14 authority at reasonable rates of interest; 15 (B) the pledge of the credit of the state to guarantee repayment 16 of all or any portion of revenue bonds issued to assist in construction of energy 17 [POWER] projects; 18 (C) an appropriation from the general fund 19 (i) for debt service on bonds or other project purposes; 20 or 21 (ii) to reduce the amount of debt financing for the 22 project; 23 (D) an appropriation to the energy [POWER] project loan 24 account [FUND] for an energy [A POWER] project; 25 (E) [REPEALED 26 (F)] development of a project under financing arrangements 27 with other entities using leveraged leases or other financing methods; 28 (F) [(G)] an appropriation for an energy [A POWER] project 29 acquired or constructed under AS 44.83.380 - 44.83.425 (energy program for 30 Alaska); 31 (17) in addition to any other power under this chapter, and in
01 accordance with regulations adopted under this section, to charge fees or other 02 forms of remuneration for services provided or for the recovery of equity 03 investments or capital costs for projects and activities described in this section in 04 accordance with (A) agreements described in this section, (B) other agreements 05 pertaining to the projects, or (C) covenants or representations made in bond 06 documents pertaining to the projects or loan programs; the authority may collect 07 the fees or other remuneration charged under this paragraph, and shall deposit 08 the money in the energy authority revolving fund (AS 44.83.107). 09 * Sec. 8. AS 44.83.090 is amended by adding a new subsection to read: 10 (c) Notwithstanding the provisions of (a) of this section, the authority may sell 11 waste heat directly to retail customers. 12 * Sec. 9. AS 44.83.105 is amended to read: 13 Sec. 44.83.105. BONDS FOR ENERGY [POWER] PROJECTS UNDER THE 14 ENERGY PROGRAM FOR ALASKA. The authority may borrow money and issue 15 its bonds for the acquisition or construction of energy [POWER] projects to be 16 acquired or constructed under the energy program for Alaska. The principal of and 17 interest on the bonds are payable from money derived from the sale of wholesale 18 power from energy [POWER] projects financed under AS 44.83.380 - 44.83.425 from 19 the energy [POWER] development account [FUND] or from a source referred to in 20 AS 44.83.100 as the authority determines. The bonds may be issued if 21 (1) appropriations to the energy [POWER] development account 22 [FUND] for the energy [POWER] project are insufficient to cover the cost of 23 acquiring or constructing the energy [POWER] project; and 24 (2) the authority determines that the amount of interest the authority 25 will pay on its bonds is not more than alternative costs of securing money from other 26 sources, except for the general fund, to pay for the acquisition or construction of the 27 energy [POWER] project. 28 * Sec. 10. AS 44.83 is amended by adding a new section to read: 29 Sec. 44.83.107. ENERGY AUTHORITY REVOLVING FUND. (a) The 30 energy authority revolving fund is established in the authority. The revolving fund 31 consists of
01 (1) appropriations made to it by the legislature; 02 (2) money or other assets transferred to it by the authority; 03 (3) unrestricted payments on loans made or purchased by the authority; 04 (4) income and interest on amounts in the fund; and 05 (5) all revenue of the authority not otherwise required to pay the 06 expenses of authority projects. 07 (b) The board of directors of the authority may establish operations, renewal 08 and replacement, capitalization, and self-insurance reserve accounts within the 09 revolving fund. 10 (c) Unless otherwise expressly stated, the accounts created in this chapter, 11 including the energy project loan account (AS 44.83.170), the energy development 12 account (AS 44.83.382), and the energy development loan account (AS 44.83.500), are 13 accounts of the energy authority revolving fund. The electrical service extension fund 14 (AS 44.83.370) and the power cost equalization fund (AS 44.83.162) are not accounts 15 of the energy authority revolving fund established under this section. The authority 16 may create additional funds or accounts either within the revolving fund or outside the 17 fund. Subject to agreements made with the holders of the authority's bonds or with 18 other persons and subject to any restrictions placed upon legislative appropriations, the 19 authority may transfer amounts in a fund or account in the revolving fund to another 20 fund or account within the revolving fund. 21 (d) The foreclosure expense account is established as a special account in the 22 energy authority revolving fund, as a reserve from fund equity. The authority may 23 spend money credited to the foreclosure expense account when necessary to protect the 24 state's security interest in collateral on loans made under this chapter or to defray 25 expenses incurred during foreclosure proceedings after a default by an obligor. 26 (e) The authority has the powers and responsibilities established in 27 AS 37.10.071 with respect to the investment of amounts held in the energy authority 28 revolving fund and may enter into agreements with the holders of bonds with respect 29 to investment of these amounts. 30 (f) The authority may 31 (1) pledge amounts in the revolving fund to secure bonds of the
01 authority; or 02 (2) enter into agreements with respect to the revolving fund that it 03 considers necessary to secure its bonds. 04 (g) The authority may spend amounts from the revolving fund for any purpose 05 authorized by this chapter. However, each fiscal year not more than 10 percent of the 06 balance in the revolving fund, determined as of the end of the preceding fiscal year, 07 may be spent for equity investment in projects or programs, excluding equity 08 investment in those projects or programs that are expressly authorized by the 09 legislature under AS 44.83.185 and excluding amounts the legislature has appropriated 10 to the fund for the purpose of specified projects or programs. 11 (h) The legislature may appropriate amounts in the revolving fund to the 12 authority for the cost of administering the fund. 13 * Sec. 11. AS 44.83.162(c) is amended to read: 14 (c) An eligible electric utility is entitled to receive power cost equalization for 15 (1) sales of power to local community facilities, calculated in the 16 aggregate for each community served by the electric utility, for actual consumption of 17 not more than 70 kilowatt-hours per month for each resident of the community; and 18 (2) actual consumption of not more than 750 kilowatt-hours per month 19 sold to each customer in all classes served by the electric utility except to 20 (A) customers of the utility under (1) of this subsection; 21 (B) offices and facilities of the state and federal 22 governments; and 23 (C) a public school, as defined in AS 14.25.220, that is an 24 elementary, junior high, or secondary school as those terms are described 25 in AS 14.03.060; the University of Alaska (AS 14.40) and community 26 colleges as defined in AS 14.40.630; and any other facilities owned, 27 operated, or leased by the public school, the university, or a community 28 college. 29 * Sec. 12. AS 44.83.162(d) is amended to read: 30 (d) The amount of power cost equalization provided per kilowatt-hour under 31 (c) of this section may not exceed 95 percent of the power costs, or the average rate
01 per eligible kilowatt-hour sold, whichever is less, as determined by the commission. 02 However, 03 (1) for [DURING] the state fiscal year that begins July 1, 1993 [1984] 04 the power costs for which power cost equalization may be paid to an electric utility 05 are limited to minimum power costs of more than 9.5 [8.5] cents per kilowatt-hour and 06 less than 52.5 cents per kilowatt-hour; 07 (2) for [DURING] each following state fiscal year, the minimum 08 power costs for which power cost equalization may be paid to an electric utility shall 09 be adjusted by the commission by an amount equal to the percentage change in the 10 Consumer Price Index, All Urban Consumers, U.S. City Average, published by 11 the U.S. Department of Labor, for the 12-month period ending April 30 of the 12 fiscal year preceding the fiscal year for which the adjustment is being made [, 13 CONSIDERING THE RATE OF CHANGE IN FUEL COST AND POWER 14 DEMAND]; and 15 (3) the power cost equalization per kilowatt-hour may be determined 16 for a utility without historical kilowatt-hour sales data by using kilowatt hours 17 generated. 18 * Sec. 13. AS 44.83.162(e) is amended to read: 19 (e) An electric utility whose customers receive power cost equalization under 20 this section shall set out in its tariff the rates without the power cost equalization and 21 the amount of power cost equalization per kilowatt-hour sold. The rate charged to the 22 customer shall be the difference between the two amounts. Power cost equalization 23 paid under this section shall be used to reduce the cost of all power sold to local 24 community facilities, in the aggregate, to the extent of 70 kilowatt-hours per month per 25 resident of the community, and to reduce the cost of the first 750 kilowatt-hours per 26 customer per month for all other classes served by the electric utility except for those 27 customers described in (c)(2) (B) and (C) of this section. 28 * Sec. 14. AS 44.83.170(a) is amended to read: 29 (a) There is established [AS A SEPARATE FUND] the energy [POWER] 30 project loan account in the energy authority revolving fund. The account consists 31 of
01 (1) appropriations to the energy project loan account; 02 (2) unrestricted payments on loans made from or purchased by the 03 account; 04 (3) income and interest on amounts in the account; and 05 (4) other money and other assets transferred to or deposited in the 06 account as directed by resolution of the board of directors of the authority [FUND 07 THAT SHALL BE DISTINCT FROM ANY OTHER MONEY OR FUNDS OF THE 08 AUTHORITY, AND THAT INCLUDES ONLY MONEY APPROPRIATED BY THE 09 LEGISLATURE]. 10 * Sec. 15. AS 44.83.170(b) is amended to read: 11 (b) The authority may make loans from the energy [POWER] project loan 12 account [FUND] 13 (1) to electric utilities, gas utilities, regional electric authorities, 14 municipalities, [CITIES, BOROUGHS,] regional and village corporations, village 15 councils, regional housing authorities, business enterprises, and nonprofit marketing 16 cooperatives to pay the costs of 17 (A) reconnaissance studies, feasibility studies, license and 18 permit applications, preconstruction engineering, and design of energy 19 [POWER] projects; 20 (B) constructing, acquiring, equipping, modifying, improving, 21 and expanding energy projects [SMALL-SCALE POWER PRODUCTION 22 FACILITIES], conservation facilities, bulk fuel storage facilities, and electric 23 or gas transmission and distribution facilities, including energy production, 24 transmission and distribution, and waste energy conservation facilities that 25 depend on fossil fuel, wind power, tidal, geothermal, biomass, hydroelectric, 26 solar, or other non-nuclear energy sources; [AND] 27 (C) reconnaissance studies, preconstruction engineering, design, 28 construction, equipping, modification, and expansion of potable water supply 29 including surface storage and groundwater sources and transmission of water 30 from surface storage to existing distribution systems; 31 (D) acquisition of bulk fuel and bulk fuel reserves;
01 (E) acquisition of proven reserves of gas, oil, coal, 02 geothermal, or other energy resources; and 03 (F) consumer end-use improvements to reduce demand for 04 energy; 05 (2) to a borrower for an energy [A POWER] project if 06 (A) the loan is entered into under a [LEVERAGED LEASE] 07 financing arrangement that the authority considers provides satisfactory 08 assurance of repayment; 09 (B) the party that will be responsible for the energy [POWER] 10 project is an electric utility, gas utility, regional electric authority, municipality, 11 [CITY, BOROUGH,] regional or village corporation, village council, regional 12 housing authority, business enterprise, or nonprofit marketing cooperative; 13 and 14 (C) the borrower seeking the loan demonstrates to the authority 15 that the financing arrangement for the energy [POWER] project will reduce 16 project financing costs below costs of comparable public energy [POWER] 17 projects; however, no loan shall be made to a regional housing authority or 18 a business enterprise for power generation facilities unless those facilities 19 provide wholesale power or emergency reserve power for a community and 20 the utility, if any, certificated to serve that community formally 21 recommends approval of the loan application. 22 * Sec. 16. AS 44.83.170(c) is amended to read: 23 (c) Before making a loan from the energy [POWER] project loan account 24 [FUND], the authority shall, by regulation, specify 25 (1) standards for the eligibility of borrowers and the types of projects 26 to be financed with loans; 27 (2) standards regarding the technical and economic viability and 28 revenue self-sufficiency of eligible projects; 29 (3) collateral or other security required for loans; 30 (4) the terms and conditions of loans; 31 (5) criteria to establish financial feasibility and to measure the amount
01 of state assistance necessary for particular projects to meet the financial feasibility 02 criteria; and 03 (6) other relevant criteria, standards, or procedures. 04 * Sec. 17. AS 44.83.170(e) is amended to read: 05 (e) Repayment of the loans shall be secured in any manner that the authority 06 determines is feasible to assure prompt repayment under a loan agreement entered into 07 with the borrower. The authority may make an unsecured loan from the energy 08 [POWER] project loan account [FUND] to a borrower regulated by the Alaska Public 09 Utilities Commission under AS 42.05 if the borrower has a substantial history of 10 repaying long-term loans and the capacity to repay the loan. Under a loan agreement, 11 repayment may be deferred for 10 years or until the project for which the loan is made 12 has achieved earnings from its operations sufficient to pay the loan, whichever is 13 earlier. 14 * Sec. 18. AS 44.83.170(f) is amended to read: 15 (f) Energy [POWER] projects are subject to the following limitations on 16 interest and specific restrictions: 17 (1) energy [POWER] projects for which loans are outstanding from the 18 former water resources revolving loan fund under former AS 45.86 on July 13, 1978, 19 may receive additional financing from the energy [POWER] project loan account 20 [FUND]; the additional financing, if granted, must be 21 (A) granted for a term not exceeding 50 years; 22 (B) granted at an interest rate of not less than three or more 23 than five percent a year on the unpaid balance; 24 (C) conditioned on the repayment of loan principal and interest 25 to begin on the earlier of 26 (i) the date of the start of commercial operation of the 27 project; or 28 (ii) 10 years from the date the loan is granted; 29 (2) loans for energy [POWER] projects [SHALL BE GRANTED] 30 (A) shall be for a term not to exceed 50 years; [AND] 31 (B) except as provided in (C) of this paragraph, shall have
01 [AT] an interest rate that is not less than five percent and that is the lesser of 02 (i) a rate equal to the percentage that is the average 03 weekly yield of municipal bonds for the 12 months preceding the date 04 of the loan, as determined by the authority from municipal bond 05 yield rates reported in the 30-year revenue index of the Weekly Bond 06 Buyer; or 07 (ii) a rate determined by the authority that allows the 08 project to meet criteria of financial feasibility established under (c) of 09 this section; 10 (C) for which the legislature specifically authorizes no-interest loans, and loans for transmission intertie 11 projects that connect two 12 or more utility systems not previously connected or that provide a second 13 circuit to improve the reliability and transfer capability of an existing 14 system, may have an interest rate that is as low as zero percent. 15 * Sec. 19. AS 44.83.170(i) is amended to read: 16 (i) Money in the energy [POWER] project loan account [FUND] may be used 17 by the legislature to make appropriations for costs of administering the energy 18 authority revolving fund (AS 44.83.107). 19 * Sec. 20. AS 44.83.177(a) is amended to read: 20 (a) To define and compare energy alternatives [IDENTIFY POWER 21 PROJECT ALTERNATIVES AND ENERGY CONSUMPTION PATTERNS AND 22 NEEDS] for a community or region on a preliminary basis, the authority shall [, 23 AFTER CONSULTATION WITH OTHER STATE AGENCIES AND AFTER 24 REVIEW OF INFORMATION ON ALTERNATIVE SOURCES OF ENERGY,] 25 complete a reconnaissance study for each proposed new energy [POWER] project [OR 26 COMBINATION OF PROJECTS]. 27 * Sec. 21. AS 44.83.177(b) is amended to read: 28 (b) A reconnaissance study must 29 (1) identify the present and anticipated [ELECTRICAL AND 30 THERMAL] energy requirements that may be served or affected by the proposed 31 project [OF A COMMUNITY OR REGION];
01 (2) survey all reasonable alternatives to the proposed project 02 including energy conservation, [ELECTRICAL AND THERMAL ENERGY 03 SOURCES AND COMBINATIONS OF SOURCES AVAILABLE TO THE 04 COMMUNITY OR REGION] and evaluate their [THE] relative economic merits [OF 05 ALTERNATIVE SOURCES OF POWER AND HEAT, INCLUDING ENERGY 06 CONSERVATION]; 07 (3) assess the effect of development of the proposed project and all 08 reasonable alternatives to the proposed project [ALTERNATIVE SOURCES OF 09 POWER AND HEAT] on the environment; and 10 (4) include public comment from residents of the affected 11 [COMMUNITY AND ADJACENT] area. 12 * Sec. 22. AS 44.83.177(c) is amended to read: 13 (c) The authority [, IN CONSULTATION WITH THE OFFICE OF 14 MANAGEMENT AND BUDGET,] shall adopt regulations defining 15 (1) the methods that it shall apply to determine that the information 16 required by (b) of this section is obtained; and 17 (2) standard criteria and measures for comparative analysis of 18 alternative energy sources. 19 * Sec. 23. AS 44.83.179 is repealed and reenacted to read: 20 Sec. 44.83.179. REVIEW OF RECONNAISSANCE STUDY BY BOARD OF 21 DIRECTORS. The board of directors of the authority shall review reconnaissance 22 studies of proposed projects of the authority. Authority staff shall make a written 23 report to the board of directors that includes findings and recommendations on whether 24 to start, terminate, delay, modify, or continue a project and considers the costs of those 25 actions. The board of directors of the authority shall maintain a record of approval 26 and disapproval decisions made with respect to reconnaissance studies as part of its 27 formal archives of board actions. 28 * Sec. 24. AS 44.83.181(a) is amended to read: 29 (a) The [UNLESS THE RECONNAISSANCE STUDY HAS BEEN 30 DISAPPROVED BY THE OFFICE OF MANAGEMENT AND BUDGET UNDER 31 AS 44.83.179, THE] authority shall complete a feasibility study and plan of finance
01 for each [PROPOSED] project approved under AS 44.83.179. 02 * Sec. 25. AS 44.83.181(b) is amended to read: 03 (b) A feasibility study must include 04 (1) information about the proposed project, including but not limited 05 to estimates of total project construction costs, total project operating costs, the costs 06 of transmission systems, a comparison of the economic costs and benefits affecting 07 project feasibility and [RESERVE POWER REQUIREMENTS, THE TIMING AND 08 AMOUNT OF ANTICIPATED RETURNS FROM THE COMPLETED PROJECT, A 09 BENEFIT-TO-COST RATIO,] the potential effect of the project on the environment 10 of the area that will be served by the project when completed [, AND THE 11 AVAILABILITY OF ALTERNATIVE GOVERNMENT FINANCING]; 12 (2) a statement of all assumptions that affect the economic feasibility 13 of the project, including but not limited to the discount rate used for project 14 evaluation [AND INTEREST RATE OF AMOUNTS OF MONEY TO BE USED 15 FOR THE PROJECT], anticipated fuel prices, anticipated energy requirements in 16 the affected project area [AN ESCALATION RATE, STATE AND LOCAL 17 ELECTRIC LOAD GROWTH], and estimates of indirect costs and benefits; and 18 (3) a comparative analysis of all reasonable alternatives to construction 19 of the proposed project [; AND 20 (4) INFORMATION BASED ON ENGINEERING AND DESIGN 21 WORK THAT MEETS THE REQUIREMENTS FOR SUBMISSION OF A LICENSE 22 APPLICATION FOR THE PROJECT TO THE FEDERAL ENERGY REGULATORY 23 COMMISSION]. 24 * Sec. 26. AS 44.83.181(c) is repealed and reenacted to read: 25 (c) The plan of finance must include 26 (1) an estimate of the total cost of the project; 27 (2) a description of the sources of money that will be used to finance 28 the total cost of the project, including the estimated amount from each source; 29 (3) an estimate of the operating and maintenance costs of the project 30 and a description of the sources of money that will be used to pay the operating and 31 maintenance costs, including the estimated amount from each source.
01 * Sec. 27. AS 44.83.181(d) is amended to read: 02 (d) When financial assistance from the state is necessary for a project to meet 03 financial feasibility criteria, the plan of finance must include an estimate of the 04 minimum amount of financial assistance required from the state based on an analysis 05 of financing alternatives. The plan of finance must include an estimate of the present 06 value of the financial assistance from the state [, COMPUTED AS THE DIFFERENCE 07 BETWEEN 08 (1) A MARKET RATE OF INTEREST, WHICH IS 09 (A) THE RATE DETERMINED UNDER 10 AS 44.83.170(f)(2)(B)(i); OR 11 (B) THE ESTIMATED INTEREST RATE FOR REVENUE 12 BONDS TO BE ISSUED BY THE AUTHORITY FOR THE PROJECT; AND 13 (2) THE EFFECTIVE RATE OF INTEREST BECAUSE OF STATE 14 FINANCIAL ASSISTANCE PROVIDED]. 15 * Sec. 28. AS 44.83.181(e) is amended to read: 16 (e) The authority [, IN CONSULTATION WITH THE OFFICE OF 17 MANAGEMENT AND BUDGET,] shall adopt regulations defining 18 (1) the techniques that it shall apply to determine that the information 19 required by (b) - (d) of this section is obtained; and 20 (2) standard criteria and measures for comparative analysis of 21 alternative financing arrangements. 22 * Sec. 29. AS 44.83.183(c) is amended to read: 23 (c) When the office of management and budget has completed a review of the 24 feasibility study and plan of finance for a project under this section, it shall submit a 25 report to the governor. The report must examine the feasibility study and plan of 26 finance for compliance with the requirements of AS 44.83.181(b) - (d). [THE 27 REPORT OF THE OFFICE OF MANAGEMENT AND BUDGET MUST INCLUDE 28 A RECOMMENDATION TO THE GOVERNOR AND LEGISLATURE FOR 29 APPROVAL OR DISAPPROVAL OF THE PROJECT BASED ON THE OFFICE'S 30 REVIEW OF THE FEASIBILITY STUDY AND PLAN OF FINANCE FOR 31 COMPLIANCE WITH THE REQUIREMENTS OF AS 44.83.181(b) - (d).]
01 * Sec. 30. AS 44.83.185(c) is amended to read: 02 (c) The legislature shall consider and must approve all proposed new projects 03 except proposed new projects that are exempt under AS 44.83.187. The legislature 04 may approve a proposed new project only by enacting law that authorizes the project 05 and approves a construction cost for that project. If the actual construction cost of 06 a project exceeds the construction cost approved by the legislature, project 07 authorization under this subsection remains in effect so long as no additional costs 08 are payable by the state. 09 * Sec. 31. AS 44.83.187(a) is amended to read: 10 (a) The provisions of AS 44.83.177 - 44.83.185 and 44.83.189 apply only to 11 a proposed new project that will generate more than 1.5 megawatts of power and 12 (1) requires an appropriation from the state general fund, or from the 13 energy [POWER] project loan account [FUND, OR FROM THE RENEWABLE 14 RESOURCES FUNDS]; or 15 (2) is based on a plan of finance that requires the issuance of general 16 obligation bonds or other pledge of the credit of the state not available under this 17 chapter. 18 * Sec. 32. AS 44.83.187(b) is amended to read: 19 (b) The provisions of AS 44.83.177 - 44.83.185 and 44.83.189 apply to a 20 project that generates more than 25 megawatts of power for which the authority will 21 issue its revenue bonds for costs of construction. 22 * Sec. 33. AS 44.83.187(d) is amended to read: 23 (d) The provisions of AS 44.83.177 - 44.83.185 do not apply to 24 (1) an addition, modification, repair, reconstruction, design, acquisition, 25 or construction for the purpose of completing a project; 26 (2) the construction of a gas or [AN] electrical transmission line or 27 distribution facility that is estimated to cost $10,000,000 or less; 28 (3) the construction of a gas or electrical transmission line or 29 distribution facility that does not require a general fund appropriation for 30 construction [THAN $3,000,000]. 31 * Sec. 34. AS 44.83.189 is amended to read:
01 Sec. 44.83.189. PROJECT CONSTRUCTION. If a new project is to be 02 designed, acquired, and constructed by the authority, it shall be designed, acquired, and 03 constructed as a public work of the authority [STATE]. For the purpose of this 04 section and AS 44.83.187 a new project does not include 05 (1) an addition or modification to an existing project unless the total 06 estimated cost of the addition or modification exceeds $10,000,000 [$1,000,000]; 07 (2) repair or reconstruction of a project; or 08 (3) design, acquisition, or construction necessary to complete a project 09 for which bonds have been issued. 10 * Sec. 35. AS 44.83.380(b) is amended to read: 11 (b) The energy program for Alaska is a program by which the authority may 12 acquire or construct energy [POWER] projects with money appropriated by the 13 legislature to the energy [POWER] development account [FUND] established in 14 AS 44.83.382. An energy [A POWER] project may be acquired or constructed as part 15 of the energy program for Alaska only if the project is submitted to and approved by 16 the legislature in accordance with procedures set out in AS 44.83.177 - 44.83.187. 17 * Sec. 36. AS 44.83.380(c) is amended to read: 18 (c) The provisions of AS 36.10 apply to energy [POWER] projects constructed 19 by the authority under AS 44.83.380 - 44.83.425. 20 * Sec. 37. AS 44.83.382 is amended to read: 21 Sec. 44.83.382. ENERGY [POWER] DEVELOPMENT ACCOUNT [FUND] 22 ESTABLISHED. (a) An energy [A POWER] development account [FUND] is 23 established in the Alaska Energy Authority to carry out the purposes of AS 44.83.380 - 44.83.425. 24 (b) The account [FUND] includes money appropriated to it by the legislature. 25 * Sec. 38. AS 44.83.384 is amended to read: 26 Sec. 44.83.384. USE OF ACCOUNT [FUND] BALANCE. (a) The account 27 [FUND] may be used by the authority to provide money for 28 (1) reconnaissance and feasibility studies and energy [POWER] project 29 finance plans prepared under AS 44.83.177 - 44.83.181; 30 (2) the cost of an energy [A POWER] project, including but not 31 limited to costs of acquiring necessary licenses, preparing engineering designs,
01 obtaining land, and constructing the energy [POWER] project; 02 (3) the defeasance of bonds, or the payment of debt service on loans 03 for or on an issue of bonds sold in connection with an energy [A POWER] project; 04 (4) the cost of operating and maintaining energy [POWER] projects; 05 and 06 (5) debt service on energy [POWER] projects. 07 (b) Money in the account [FUND] may be used under (a) of this section only 08 for an energy [A POWER] project that 09 (1) is economically feasible; and 10 (2) provides the lowest reasonable power cost to utility customers in 11 the market area for the estimated life of the [POWER] project, whether operated by 12 itself or in conjunction with other energy [POWER] projects in the market area, and 13 that operates or will operate on one or more of the following: 14 (A) renewable energy resources, including but not limited to 15 hydroelectric power, wind, biomass, geothermal, tidal or solar energy, or a 16 method that uses temperature differentials or other physical properties of the 17 ocean; 18 (B) coal or peat; 19 (C) energy derived from waste heat; or 20 (D) fossil fuel, including oil or natural gas. 21 (c) Notwithstanding (b)(1) of this section and AS 44.83.396 - 44.83.398, the 22 account [FUND] may be used by the authority to provide money for the cost of an 23 energy [A POWER] project that is or was either constructed or owned by the United 24 States government if the requirements of this subsection are met. The provisions of 25 AS 44.83.177 - 44.83.187 do not apply to a [POWER] project financed under this 26 subsection. The authority may use money in the account [FUND] for the cost of a 27 [POWER] project under this subsection if 28 (1) the legislature enacts a law approving the project; 29 (2) the office of management and budget in the Office of the Governor 30 reviews a feasibility study and a plan of finance for the project and determines that the 31 feasibility study complies with the requirements for a feasibility study submitted under
01 AS 44.83.181(b) and that the plan of finance complies with the requirements for a plan 02 of finance submitted under AS 44.83.181(c); and 03 (3) the project meets the other requirements of this chapter. 04 * Sec. 39. AS 44.83.388(a) is amended to read: 05 (a) The authority shall maintain records of energy [POWER] project 06 allocations from the account [FUND] for each energy [POWER] project 07 (1) approved in accordance with AS 44.83.185; and 08 (2) for which an allocation is made from an appropriation made by the 09 legislature without specifying an appropriation to a project. 10 * Sec. 40. AS 44.83.396 is amended to read: 11 Sec. 44.83.396. OPERATION OF ENERGY [POWER] PROJECT. (a) An 12 energy [A POWER] project that is acquired or constructed as part of the energy 13 program for Alaska is owned, and shall be administered, by the authority. 14 (b) When an energy [A POWER] project has been acquired or constructed by 15 the authority, the project may be operated for the authority under a contract or lease 16 entered into by a qualified utility and the authority. 17 (c) The authority shall enter into a contract or lease under reasonable terms 18 and conditions to permit the applicant utility to operate the energy [POWER] project 19 when the applicant utility is the only wholesale power customer to be served directly 20 by the energy [POWER] project unless the authority determines that a utility making 21 application for a contract or lease to operate an energy [A POWER] project is not a 22 qualified utility or is not capable of operating that [POWER] project efficiently and 23 in a manner that is consistent with national standards for the industry and with 24 agreements with bondholders. 25 (d) The authority shall adopt regulations to determine the manner of selecting 26 a qualified utility to operate an energy [A POWER] project under a contract or lease 27 when there is more than one wholesale power customer to be served directly by the 28 [POWER] project. 29 (e) When the authority permits an energy [A POWER] project to be operated 30 by a qualified utility under a contract or lease, the authority shall 31 (1) review and approve the annual budget for the operation and
01 maintenance of the [POWER] project; and 02 (2) assure that the project is being operated efficiently and in a manner 03 that is consistent with national standards for the industry and agreements with 04 bondholders. 05 * Sec. 41. AS 44.83.398(a) is amended to read: 06 (a) The authority shall sell power produced from energy [POWER] projects 07 acquired or constructed under the energy program for Alaska. For purposes of this 08 section, Lake Tyee, Swan Lake, Solomon Gulch, and Terror Lake hydroelectric 09 facilities are considered to be one energy [POWER] project. This energy [POWER] 10 project is referred to as the initial project. 11 * Sec. 42. AS 44.83.398(b) is amended to read: 12 (b) The authority shall establish a wholesale power rate structure applicable 13 to sales of power to the customers of an energy [A POWER] project as follows: 14 (1) the authority shall establish and maintain a separate wholesale 15 power rate applicable to each energy [POWER] project that it has acquired or 16 constructed under the energy program for Alaska, other than a project described in (f) 17 of this section; the wholesale power rate established by the authority for the initial 18 project shall be a rate calculated under this paragraph except that the portion of the 19 rate applicable to (A) and (C) of this paragraph shall be adjusted for the hydroelectric 20 facilities in the initial project as set out in (3) of this subsection; the wholesale power 21 rate shall be computed by the authority annually, or more frequently as may be 22 necessary, and shall equal the rate that the authority estimates is necessary to produce 23 revenue that is sufficient to pay 24 (A) operation, maintenance, and equipment replacement costs 25 of the energy [POWER] project; 26 (B) the energy [POWER] project's proportionate share of the 27 debt service on state loans and bonds for all energy [POWER] projects in the 28 energy program for Alaska, determined in accordance with (g) of this section; 29 (C) safety inspections and investigations of the energy 30 [POWER] project by the authority; 31 (2) [REPEALED
01 (3)] for the purposes of determining amounts to be allocated to each 02 hydroelectric facility in the initial project under (1)(A) and (1)(C) of this subsection, 03 the authority shall determine for each hydroelectric facility its individual operation, 04 maintenance, equipment replacement, safety inspection, and investigation costs. 05 * Sec. 43. AS 44.83.398(e) is amended to read: 06 (e) After determining the wholesale power rate for an energy [A POWER] 07 project under the provisions of this section, the authority may adjust the rate or change 08 the rate provisions to insure that the revenue derived from that [POWER] project and 09 the aggregate revenues of the authority will be adequate to comply with the rate 10 covenants and other agreements contained in any trust indenture or trust agreement 11 entered into by the authority for the security of the holders of bonds issued to finance 12 energy [POWER] projects in the energy program for Alaska. The authority may agree 13 with a purchaser of power to limit rate increases caused by debt service payable by the 14 authority on subsequent projects. 15 * Sec. 44. AS 44.83.398(f) is amended to read: 16 (f) The provisions of (b) of this section do not apply to an intertie that is 17 authorized as a separate project under AS 44.83.380. The authority shall establish and 18 maintain separate power rate schedules applicable to each intertie that it has acquired 19 or constructed as a separate energy [POWER] project under the energy program for 20 Alaska. The power rate schedules shall produce sufficient revenue from utilities 21 connected by the intertie to pay (1) operation, maintenance, and equipment replacement 22 costs of the intertie; (2) debt service of the intertie; and (3) safety inspections and 23 investigations of the intertie by the authority. If the authority determines that an 24 intertie has ceased to function as a separate project and has become a part of one or 25 more other energy [POWER] projects as a transmission line, the power rate schedules 26 established under this subsection shall be terminated and a wholesale power rate 27 applicable to the former intertie shall be calculated under (b) of this section for the 28 project or projects of which it has become a part. 29 * Sec. 45. AS 44.83.398(g) is amended to read: 30 (g) For the purposes of (b)(1)(B) of this section, an energy [A POWER] 31 project's proportionate share of debt service on state loans and bonds for all energy
01 [POWER] projects in the energy program for Alaska is equal to the state's investment 02 in the energy [POWER] project divided by the state's investment in all energy 03 [POWER] projects in the energy program for Alaska and multiplied by the debt service 04 on state loans and bonds for all energy [POWER] projects in the energy program for 05 Alaska. In this subsection 06 (1) "state's investment in the energy [POWER] project" includes all 07 state money invested in an energy A POWER] project, including loans, grants, and 08 proceeds from bonds, less the principal repayments on the project's proportionate share 09 of debt service on state loans and bonds; 10 (2) "state's investment in all energy [POWER] projects in the energy 11 program for Alaska" includes all state money invested in the energy [POWER] 12 projects, other than interties, in the energy program for Alaska, including loans, grants, 13 and proceeds from bonds, less the principal repayments on bonds and state loans 14 issued for the energy [POWER] projects. 15 * Sec. 46. AS 44.83.398(h) is amended to read: 16 (h) Notwithstanding (g) of this section, in the 1983 state fiscal year the 17 proportionate share of debt service under (b) of this section, expressed as a rate, for 18 an energy [A POWER] project for which a construction contract has been awarded 19 before June 25, 1982 may not exceed the average debt service component of the 20 wholesale power rate for all energy [POWER] projects in the energy program for 21 Alaska. The limit imposed by this subsection shall be increased in the 1984 state 22 fiscal year to four percent above the average debt service component of the wholesale 23 power rate for all energy [POWER] projects in the energy program for Alaska and by 24 an additional four percent above that average in each succeeding state fiscal year. If 25 application of this subsection results in the production of insufficient revenue to pay 26 the total debt service for all projects in the energy program for Alaska, a project that 27 does not have its share of debt service limited under this subsection shall be subject 28 to a rate in addition to the rate established under (b) of this section. The additional 29 rate is the rate that the authority estimates is necessary to produce revenue that is 30 sufficient to pay the difference between the total debt service for all projects in the 31 energy program for Alaska and the revenue actually produced to pay that debt service,
01 multiplied by a fraction whose numerator is the total cost of the project and whose 02 denominator is the total cost of all of the projects that are subject to the additional rate. 03 In this subsection, "projects in the energy program for Alaska" does not include an 04 intertie that is authorized as a separate project as described in (f) of this section. 05 * Sec. 47. AS 44.83.425(5) is amended to read: 06 (5) "qualified utility" means an electric utility or an electric operating 07 entity established as an instrumentality of two or more electric utilities certified by the 08 Alaska Public Utilities Commission to serve all or part of a market area that is served 09 or will be served by the energy [POWER] project, that the authority determines is 10 capable of operating and maintaining the energy [POWER] project. 11 * Sec. 48. AS 44.83.425 is amended by adding a new paragraph to read: 12 (6) "account" means the energy development account established by 13 AS 44.83.382. 14 * Sec. 49. AS 44.83.500 is amended to read: 15 Sec. 44.83.500. CREATION OF ACCOUNT [FUND]. (a) There is 16 established in the Alaska Energy Authority the energy [POWER] development 17 [REVOLVING] loan account [FUND] to carry out the purpose of AS 44.83.500 -44.83.530. [THE FUND MAY 18 BE USED FOR NO OTHER PURPOSE.] 19 (b) The account [FUND] consists of 20 (1) appropriations to the account [FUND] by the legislature; 21 (2) repayments of principal to the account [FUND]; and 22 (3) income from investment of money in the account [FUND] and 23 from loans made from the account [FUND]. 24 * Sec. 50. AS 44.83.510 is amended to read: 25 Sec. 44.83.510. POWERS AND DUTIES OF THE AUTHORITY IN 26 ADMINISTERING THE ACCOUNT [FUND]. (a) The authority may borrow from 27 the account [FUND] for the purpose of financing an energy [A POWER] project 28 acquired or constructed by the authority under the energy program for Alaska 29 (AS 44.83.380 - 44.83.425). Repayment of a loan from the account [FUND] must be 30 made with the proceeds from the sale of power from projects in the energy program 31 for Alaska. Except as provided in AS 44.83.398(i), the payments required to be made
01 by the authority on a loan from the account [FUND] constitute debt service for the 02 purpose of calculating the wholesale power rate in AS 44.83.398(b)(1). 03 (b) After completion of a final plan of finance and approval of a project under 04 AS 44.83.185(c), a loan may be made from the account [FUND] for 05 (1) the cost or a portion of the cost of final design, acquisition, and 06 construction of an energy [A POWER] project; 07 (2) defeasance or payment of bonds or notes of the authority issued for 08 an energy [A POWER] project; 09 (3) the establishment of a reserve fund for renewals and replacements 10 for the operation of a completed energy [POWER] project; and 11 (4) any other project-related expenses, including those described in 12 AS 44.83.398(i). 13 * Sec. 51. AS 44.83.520(a) is amended to read: 14 (a) A loan from the account [FUND] shall be repaid in accordance with the 15 terms that the authority's board of directors determines to be appropriate. In 16 establishing the terms, including provision for a return to the state of an amount in 17 excess of the principal amount of the loan, the board of directors shall consider the 18 revenue that the authority could reasonably derive from the sale of power from the 19 projects based upon 20 (1) the costs, at the time the power sales agreement is initially 21 negotiated or renegotiated, of alternative sources of energy generation for utilities 22 purchasing power from a project financed with a loan from the account [FUND]; 23 (2) the effect of the loan terms on the wholesale power costs to all 24 utilities purchasing power from the initial project; 25 (3) the long-term benefits to consumers and communities of stable 26 wholesale power costs; 27 (4) the affordability of initial wholesale power costs that result from 28 the loan terms with utilities purchasing power from the initial project; 29 (5) increasing repayment, not to exceed five years, of debt service 30 payment per kilowatt hour gradually over the initial period of a loan repayment 31 schedule to the extent necessary to avoid significant rate increases to the consumer;
01 (6) the existing excess capacity of energy [POWER] projects; and 02 (7) the effects of increased capacity utilization, inflation, and alternative 03 energy production costs over the life of the initial project. 04 * Sec. 52. AS 44.83.520(c) is amended to read: 05 (c) A loan to the authority from the account [FUND] may not exceed 50 06 years. 07 * Sec. 53. AS 44.83.530 is amended to read: 08 Sec. 44.83.530. DEFINITIONS. In AS 44.83.500 - 44.83.530 09 (1) "account" ["FUND"] means the energy [POWER] development 10 [REVOLVING] loan account [FUND]; and 11 (2) "energy [POWER] project" means a project acquired or constructed 12 under the energy program for Alaska, AS 44.83.380 - 44.83.425. 13 * Sec. 54. AS 44.83.940 is amended to read: 14 Sec. 44.83.940. ANNUAL REPORT. Before March 1 of each year, the 15 authority shall submit to the governor and the legislature a comprehensive report for 16 the preceding fiscal year describing operations, income, and expenditures, including 17 a detailed accounting of the loans and investments made from, and the income 18 received by, the energy authority revolving fund (AS 44.83.107) [FOR THE 19 PRECEDING 12-MONTH PERIOD]. 20 * Sec. 55. AS 44.83.950(a) is amended to read: 21 (a) Notwithstanding any other provision in this chapter, only the operating 22 budget of the authority is subject to the provisions of AS 37.07 (Executive Budget 23 Act). 24 * Sec. 56. AS 44.83.990(3) is amended to read: 25 (3) "feasibility study" 26 (A) means a study conducted for the purpose of establishing the 27 economic and environmental practicality of completing a proposed energy 28 [POWER] project under AS 44.83.181; 29 (B) includes engineering and design work to meet the 30 requirements for submission of a license application for a proposed new project 31 to the Federal Energy Regulatory Commission;
01 * Sec. 57. AS 44.83.990 is amended by adding new paragraphs to read: 02 (10) "business enterprise" means a single proprietorship, corporation, 03 firm, partnership, or other association of persons organized in any manner, for any 04 business purpose, other than on a nonprofit basis, that sells or transports electricity or 05 waste heat in compliance with all applicable federal and state statutes and regulations; 06 (11) "energy project" or "project" means a plant, works, system, or 07 facility, together with related or necessary facilities, fuel supplies, and appurtenances, 08 including a divided or undivided interest in or a right to the capacity of an energy 09 project or project, that is used or is useful for the purpose of 10 (A) electrical or thermal energy production other than nuclear 11 energy production; 12 (B) waste energy utilization and energy conservation; or 13 (C) transmission, purchase, sale, exchange, and interchange of 14 electrical or thermal energy, including district heating or interties. 15 * Sec. 58. AS 44.83.170(g), 44.83.170(h), 44.83.177(d), 44.83.189, 44.83.361, 44.83.363, 16 44.83.386, 44.83.388(b), 44.83.390, 44.83.392, 44.83.398(c), 44.83.425(3), 44.83.600, 17 44.83.605, 44.83.610, 44.83.615, 44.83.620, 44.83.625, 44.83.630, 44.83.650, 44.83.920, 18 44.83.990(6), and 44.83.990(9) are repealed. 19 * Sec. 59. In accordance with AS 44.83.185(c), and contingent on sec. 61 of this Act, the 20 Alaska Energy Authority is authorized to provide for the design and construction of a 138 21 kilovolt electric transmission line between Anchorage and the Kenai Peninsula at a cost of 22 $89,000,000 in 1992 dollars. 23 * Sec. 60. In accordance with AS 44.83.185(c), and contingent on sec. 61 of this Act, the 24 Alaska Energy Authority is authorized to provide for the design and construction of a 138 25 kilovolt electric transmission line between Healy and Fairbanks at a cost of $82,000,000 in 26 1992 dollars. 27 * Sec. 61. (a) The authorizations made in secs. 59 and 60 of this Act take effect upon the 28 execution of a written agreement, for the respective project, between the Alaska Energy 29 Authority and the participating electric utility or utilities that provides that the participating 30 utility or utilities agree to pay for, under terms acceptable to each party, 31 (1) the design and construction costs of the line; and
01 (2) the operation and maintenance costs of the line. 02 (b) The executive director of the authority shall notify the revisor of statutes when 03 each of the agreements is executed. 04 * Sec. 62. Sections 1 - 58 of this Act take effect July 1, 1993.