00 HOUSE BILL NO. 273
01 "An Act relating to electric utilities."
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
03 * Section 1. AS 42.05.431(c) is amended to read:
04 (c) Notwithstanding (b) of this section and except as provided in (i) of this
06 (1) a wholesale agreement for the sale of power from a project licensed
07 by the Federal Energy Regulatory Commission on or before January 1, 1987, and
08 related contracts for the wheeling, storage, regeneration, or wholesale repurchase of
09 power purchased under the agreement, entered into between the Alaska Energy
10 Authority and one or more other public utilities or among the utilities after October 31,
11 1987, and before January 1, 1988, and amendments to the wholesale agreement or
12 related contract, are not subject to review or approval by the commission until all long-term debt incurred for the
13 project is retired; and
14 (2) a wholesale agreement or related contract described in (1) of this
01 subsection may contain a covenant for the public utility to establish, charge, and
02 collect rates sufficient to meet its obligations under the contract; the rate covenant is
03 valid and enforceable.
04 * Sec. 2. AS 42.05.431 is amended by adding a new subsection to read:
05 (i) An amendment, entered into on or after the effective date of this section,
06 to a wholesale agreement for the sale of power that is subject to (c) of this section
07 shall require the parties to comply with AS 42.05.726 - 42.05.728.
08 * Sec. 3. AS 42.05.711 is amended by adding a new subsection to read:
09 (n) Notwithstanding any provision of this section to the contrary, an electric
10 utility is subject to regulation under this chapter as provided in AS 42.05.726 -
11 42.05.728 as to rates for the use of shared transmission and distribution facilities if the
13 (1) offers service to customers by using the transmission or distribution
14 facilities of another electric utility; or
15 (2) owns or controls transmission or distribution facilities that are used
16 by another electric utility in order for that utility to offer electric service to customers.
17 * Sec. 4. AS 42.05 is amended by adding new sections to read:
18 Sec. 42.05.726. SERVICE BY CONNECTED ELECTRIC UTILITIES. (a)
19 Notwithstanding AS 42.05.221(a), an electric utility that offers service to customers
20 in one area may offer service to customers in any location within the state to which
21 the electric utility is connected by shared transmission and distribution facilities.
22 (b) An electric utility that provides transmission or distribution facilities to
23 another electric utility so that the utility using the facilities may provide utility services
24 to customers may only charge the user utility for the actual cost to the utility providing
25 the facilities of the use of its facilities.
26 Sec. 42.05.728. ELECTRIC UTILITIES SHARING FACILITIES;
27 RESTRICTIONS ON OFFERS OF SERVICE PROHIBITED. (a) When an electric
28 utility offers to provide service to customers to whom the electric utility is connected
29 by shared transmission and distribution facilities, the electric utility that owns or
30 controls the transmission or distribution facilities may not refuse the offering utility the
31 right to use the transmission or distribution facilities.
01 (b) Notwithstanding AS 42.05.711, an electric utility, including an electric
02 utility owned or operated by a municipality, is subject to rate regulation as to the rates
03 for shared facilities if the utility
04 (1) offers service to customers by using the transmission or distribution
05 facilities of another electric utility; or
06 (2) has transmission or distribution facilities that are used by another
07 electric utility in order for that utility to offer service to customers.
08 (c) An electric utility may not enter into an agreement with another electric
09 utility to restrict the ability of any electric utility to offer the sale of electricity to
11 * Sec. 5. AS 45.50.572(d) is amended to read:
12 (d) AS 45.50.562 - 45.50.596 apply to long distance telecommunications
13 services provided by public utilities. Except for the provisions concerning the use
14 of and charges for shared transmission and distribution facilities in AS 42.05.726
15 and 42.05.728, AS 45.50.562 - 45.50.596 do not apply to other services provided by
16 public utilities that have been issued a certificate of public convenience and necessity
17 under AS 42.05.