CSHB 238(FIN): "An Act relating to the powers of the Alaska Energy Authority; and providing for the power transmission intertie loan program of the Alaska Energy Authority."
00 CS FOR HOUSE BILL NO. 238(FIN) 01 "An Act relating to the powers of the Alaska Energy Authority; and providing for the 02 power transmission intertie loan program of the Alaska Energy Authority." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 44.83.080 is amended to read: 05 Sec. 44.83.080. Powers of the authority. In furtherance of its corporate 06 purposes, the authority has the following powers in addition to its other powers: 07 (1) to sue and be sued; 08 (2) to have a seal and alter it at pleasure; 09 (3) to make and alter bylaws for its organization and internal 10 management; 11 (4) to adopt regulations governing the exercise of its corporate powers; 12 (5) to improve, equip, operate, and maintain power projects; 13 (6) to issue bonds to carry out any of its corporate purposes and 14 powers, including the establishment or increase of reserves to secure or to pay the
01 bonds or interest on them, and the payment of all other costs or expenses of the 02 authority incident to and necessary or convenient to carry out its corporate purposes 03 and powers; 04 (7) to sell, lease as lessor or lessee, exchange, donate, convey, or 05 encumber in any manner by mortgage or by creation of any other security interest, real 06 or personal property owned by it, or in which it has an interest, when, in the judgment 07 of the authority, the action is in furtherance of its corporate purposes; 08 (8) to accept gifts, grants, or loans from, and enter into contracts or 09 other transactions regarding them, with any person; 10 (9) to deposit or invest its funds, subject to agreements with 11 bondholders; 12 (10) to enter into contracts with the United States or any person and, 13 subject to the laws of the United States and subject to concurrence of the legislature, 14 with a foreign country or its agencies, for the construction, financing, operation, and 15 maintenance of all or any part of a power project or bulk fuel storage facility, either 16 inside or outside the state, and for the sale or transmission of power from a power 17 project or any right to the capacity of it or for the security of any bonds of the 18 authority issued or to be issued for the project; 19 (11) to enter into contracts with any person and with the United States, 20 and, subject to the laws of the United States and subject to the concurrence of the 21 legislature, with a foreign country or its agencies for the purchase, sale, exchange, 22 transmission, or use of power from a project, or any right to the capacity of it; 23 (12) to apply to the appropriate agencies of the state, the United States, 24 and to a foreign country and any other proper agency for the permits, licenses, or 25 approvals as may be necessary, and to maintain and operate power projects in 26 accordance with the licenses or permits, and to obtain, hold, and use the licenses and 27 permits in the same manner as any other person or operating unit; 28 (13) to enter into contracts or agreements with respect to the exercise 29 of any of its powers, and do all things necessary or convenient to carry out its 30 corporate purposes and exercise the powers granted in this chapter; 31 (14) to recommend to the legislature
01 (A) the pledge of the credit of the state to guarantee repayment 02 of all or any portion of revenue bonds issued to assist in construction of power 03 projects; 04 (B) an appropriation from the general fund 05 (i) for debt service on bonds or other project purposes; 06 or 07 (ii) to reduce the amount of debt financing for the 08 project; 09 (15) to carry out the powers and duties assigned to it under AS 42.45; 10 (16) to make grants or loans to any person and enter into contracts 11 or other transactions regarding the grants or loans. 12 * Sec. 2. AS 44.83 is amended by adding a new section to read: 13 Article 5A. Power Transmission Intertie Loan Program. 14 Sec. 44.83.550. Power transmission intertie loan program. (a) A power 15 transmission intertie fund is established in the Alaska Energy Authority to carry out 16 the purposes of this section. The fund consists of money appropriated to it by the 17 legislature. 18 (b) The fund may be used by the authority to 19 (1) extend and upgrade power transmission interties in the state; and 20 (2) make loans to public utilities and other entities for 21 (A) acquisition, design, and construction of power transmission 22 interties in the state; 23 (B) acquisition, design, and construction of regional power 24 projects; and 25 (C) retirement of capital construction debt of electric utilities 26 related to the acquisition, design, and construction of power projects. 27 (c) A loan for a project or intertie issued under (b)(2) of this section is 28 contingent on the execution of a written agreement entered into by the borrower and 29 the Alaska Energy Authority in which the borrower agrees to 30 (1) pay the design, construction, and other costs related to the power 31 project or power transmission intertie that exceed the amount of the loan;
01 (2) pay the operation and maintenance costs of the power project or 02 power transmission line; and 03 (3) provide for the allocation of costs that may reasonably be charged 04 to other utilities for use of the power project or power transmission intertie. 05 (d) In setting the terms and conditions with respect to a loan from the power 06 transmission intertie fund, the authority may include the terms and conditions it 07 considers advisable, including making loans for which no interest is charged. 08 (e) The authority shall deposit repayments of loans made under this section in 09 the Railbelt energy fund (AS 37.05.520).