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HB 273: "An Act relating to electric utilities."

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                                      
05 section,                                                                                                                
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                             
12 utility                                                                                                                 
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                             
10 customers.                                                                                                              
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.