00                            HOUSE BILL NO. 238                                                                          
01 "An Act relating to the power transmission intertie fund of the Alaska Energy                                           
02 Authority."                                                                                                             
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 44.83 is amended by adding a new section to read:                                                 
05                 Article 5A.  Power Transmission Intertie Fund.                                                        
06            Sec. 44.83.550.  Power transmission intertie fund.  (a)  A power                                           
07       transmission intertie fund is established in the Alaska Energy Authority to carry out                             
08       the purposes of this section.  The fund consists of money appropriated to it by the                               
09       legislature.                                                                                                      
10            (b)  The fund may be used by the authority to                                                                
11                 (1)  extend and upgrade power transmission interties in the state; and                                  
12                 (2)  make grants to public utilities and other entities for                                             
13                      (A)  acquisition, design, and construction of power transmission                                   
14            interties in the state;                                                                                      

01                      (B)  acquisition, design, and construction of regional power                                       
02            projects; and                                                                                                
03                      (C)  retirement of capital construction debt of electric utilities                                 
04            related to the acquisition, design, and construction of power projects.                                      
05            (c)  A grant for a project or intertie issued under (b)(2) of this section is                                
06       contingent on the execution of a written agreement entered into by the grant recipient                            
07       and the Alaska Energy Authority in which the grant recipient agrees to                                            
08                 (1)  pay the design, construction, and other costs related to the power                                 
09       project or power transmission intertie that exceed the amount of the grant;                                       
10                 (2)  pay the operation and maintenance costs of the power project or                                    
11       power transmission line;                                                                                          
12                 (3)  provide for the use of the power project or power transmission                                     
13       intertie by utilities other than the grant recipient; and                                                         
14                 (4)  provide for the allocation of costs that may reasonably be charged                                 
15       to other utilities for use of the power project or power transmission intertie.