00                      CS FOR HOUSE BILL NO. 453(L&C)                                                                    
01 "An Act exempting from regulation under the Alaska Public Utilities Regulatory Act                                      
02 wholesale agreements for the sale of power by joint action agencies to public utilities                                 
03 that are parties to the agency agreement, including certain electric cooperatives, and                                  
04 contracts related to those agreements, and joint action agencies composed of public                                     
05 utilities of political subdivisions or utilities organized under the Electric and Telephone                             
06 Cooperative Act or both."                                                                                               
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1.  AS 42.05.431(c) is amended to read:                                                                  
09            (c)  Notwithstanding (b) of this section,                                                                    
10                 (1)  a wholesale agreement for the sale of power from a project licensed                                
11       by the Federal Energy Regulatory Commission on or before January 1, 1987, and                                     
12       related contracts for the wheeling, storage, regeneration, or wholesale repurchase of                             
13       power purchased under the agreement, entered into between the Alaska Energy                                       

01       Authority and one or more other public utilities or among the utilities after October 31,                         
02       1987, and before January 1, 1988, and amendments to the wholesale agreement or                                    
03       related contract, and the wholesale agreement or related contract assigned by the                                 
04       Alaska Energy Authority to a joint action agency formed under AS 42.45.310 that                                   
05       purchases the project from the Alaska Energy Authority, are not subject to review or                              
06       approval by the commission until all long-term debt incurred for the project is retired,                          
07       or, for a wholesale agreement or related contract assigned to a joint action agency                               
08       formed under AS 42.45.310, until all long-term debt incurred to pay the purchase price                            
09       to the Alaska Energy Authority is retired; [AND]                                                                  
10                 (2)  a wholesale agreement for the sale of power from a project                                     
11       owned by a joint action agency to one or more public utilities or electric                                    
12       cooperatives, each of whom is a party to the agency agreement, and any contracts                              
13       related to the wholesale agreement, including those for the wheeling, storage,                                
14       regeneration, or wholesale repurchase of power purchased under the wholesale                                  
15       agreement, are not subject to review or approval by the commission; for                                       
16       purposes of this paragraph, "joint action agency" means a joint action agency                                 
17       established under AS 42.45.300 that is exempt from regulation under                                           
18       AS 42.05.711(o); and                                                                                          
19                 (3)  a wholesale agreement or related contract described in (1) or (2) of                       
20       this subsection may contain a covenant for the public utility to establish, charge, and                           
21       collect rates sufficient to meet its obligations under the contract; the rate covenant is                         
22       valid and enforceable.                                                                                            
23    * Sec. 2.  AS 42.05.711(o) is amended to read:                                                                     
24            (o)  A joint action agency established under AS 42.45.310 is exempt from                                     
25       regulation under this chapter, including the requirement to obtain a certificate of                               
26       public convenience and necessity under AS 42.05.221, for the operation of, sale of                                
27       power from, and other activities related to the power project the joint action agency                             
28       purchases from the Alaska Energy Authority until the wholesale agreement and any                                  
29       related contract assigned by the authority becomes subject to review or approval by                               
30       the commission under AS 42.05.431. The exemption provided by this subsection                                      
31       extends to repairs and improvements to the power project the joint action agency                                  

01       purchases from the authority but does not extend to any other power project or other                              
02       activity of the joint action agency.  A joint action agency established under                                 
03       AS 42.45.300 that is formed by public utilities owned by a political subdivision of                           
04       the state, by cooperatives organized under AS 10.25, or by a combination of the                               
05       two is exempt from regulation under this chapter as specified in AS 42.05.431,                                
06       including the requirement to obtain a certificate of public convenience and                                   
07       necessity under AS 42.05.221.