CSSB 143(RES): "An Act authorizing the organization of the Greater Railbelt Energy and Transmission Corporation; relating to energy and transmission corporations, and to the Alaska Energy Authority's contracting with energy and transmission corporations to operate a power project; and providing for an effective date."
00 CS FOR SENATE BILL NO. 143(RES) 01 "An Act authorizing the organization of the Greater Railbelt Energy and Transmission 02 Corporation; relating to energy and transmission corporations, and to the Alaska 03 Energy Authority's contracting with energy and transmission corporations to operate a 04 power project; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 LEGISLATIVE INTENT. It is the intent of the legislature that an energy and 09 transmission corporation authorized under this Act shall be regulated by the Regulatory 10 Commission of Alaska. The legislature intends to review the regulation of energy and 11 transmission corporations by the Regulatory Commission of Alaska five years after the 12 formation of an energy and transmission corporation under this Act to evaluate whether 13 continued regulation by the Regulatory Commission of Alaska is appropriate. 14 * Sec. 2. AS 42 is amended by adding a new chapter to read:
01 Chapter 50. Energy and Transmission Corporations. 02 Sec. 42.50.010. Energy and transmission corporations. (a) Four or more 03 municipal or cooperative public utilities with electrically interconnected service 04 territories may, if first authorized by law, organize an energy and transmission 05 corporation 06 (1) to acquire, operate, or maintain power and transmission projects 07 acquired or constructed as part of the former energy program for the state and owned 08 by the Alaska Energy Authority under AS 44.83.396; and 09 (2) to plan for, recommend, coordinate, and otherwise address power 10 generation and transmission for the electrically interconnected service territories as 11 provided in this chapter. 12 (b) The purposes of the corporation are 13 (1) to ensure adequate, reliable, safe, and stable wholesale electric 14 power to public utility members without undue discrimination, at the lowest 15 reasonable long-term cost; and 16 (2) to be the primary recipient of state financial assistance provided to 17 support the acquisition, construction, or development of generation and transmission 18 assets and ancillary services and assets for the public utility members of the 19 corporation. 20 (c) In furtherance of the purposes of the corporation, the corporation may plan 21 for, recommend, coordinate, and otherwise address 22 (1) the adequacy of fuel supply, fuel storage, and fuel transportation 23 resources required to meet the short-term and long-term electric power needs of the 24 service territory of the corporation; 25 (2) the adequacy of generation and transmission assets to prudently 26 meet local and regional short-term and long-term electric power and reliability needs 27 of the areas electrically interconnected to the service territory of the corporation; 28 (3) generation reserves to meet planning and operational requirements; 29 (4) base load generation in all parts of the service territory of the 30 corporation; 31 (5) generation and transmission power dispatch resources, including
01 the ability to connect dispatch resources of the public utility members; 02 (6) diversity in generation resources; 03 (7) renewable-energy-based generation resources; 04 (8) integration of renewable energy generation resources. 05 (d) The corporation shall operate on a nonprofit basis, offering its services 06 based on uniform rates for like services under standard tariffs or contractual 07 arrangements. 08 (e) The corporation has a separate and independent existence from the state. 09 The corporation may not be considered the state, a state agency, an administrative unit 10 of the executive branch of state government, a governmental unit of the state, a public 11 corporation of the state, a municipal corporation, or a political subdivision of the state. 12 (f) The exercise by the corporation of the powers granted by this chapter is 13 considered to be for a public purpose. 14 (g) The corporation is authorized to interconnect with and provide services to 15 electric utilities other than public utility members on terms and conditions approved 16 by the corporation's board of directors. The corporation may decline to interconnect 17 with an electric utility or any other entity that fails to meet standards for 18 interconnection adopted by the corporation. 19 Sec. 42.50.020. Board of directors. (a) The corporation shall be governed by a 20 board of directors consisting of 21 (1) two directors from each public utility members, one of whom shall 22 be the chief executive officer of the public utility member or the chief executive 23 officer's designee and one of whom shall be an individual appointed by the governing 24 body of the public utility member; and 25 (2) one public director appointed by the governor from a list of at least 26 three persons submitted by the directors appointed under (a)(1) of this section; if the 27 governor rejects an entire list, the directors appointed under (a)(1) of this section shall 28 submit a new list that includes at least three persons who were not included on a 29 previously rejected list. 30 (b) The term of a director representing a public utility member under (a)(1) of 31 this section expires when the public utility member notifies the board that the
01 individual has been removed as a representative of the utility on the board. 02 (c) The term of the director appointed by the governor under (a)(2) of this 03 section is four years. If a vacancy occurs, the governor shall appoint a director under 04 (a)(2) of this section to serve the remaining term of the director. The governor may 05 reappoint the director described in this subsection. 06 (d) The board may only remove a director for cause on two-thirds majority 07 vote of the full board. The bylaws must provide a mechanism for a public utility 08 member to appoint an alternative member if the chief executive officer of the utility is 09 removed from the board. 10 (e) A majority of the directors on the board constitutes a quorum for the 11 transaction of business and the exercise of the powers and duties of the board. 12 (f) The directors shall annually elect from among the directors on the board a 13 chair and vice-chair and other board officers as may be provided in the bylaws. 14 (g) Directors may not receive a salary, but the corporation may pay directors a 15 meeting fee, per diem, and travel expenses. 16 Sec. 42.50.030. Board meetings; exceptions. (a) A meeting of the board may 17 be attended by members of the corporation, ratepayers, and the public. The bylaws 18 must provide for participation of members and ratepayers at board meetings. Except 19 when a voice vote is authorized, a vote shall be conducted in a manner that the 20 members and ratepayers may know the vote of each director entitled to vote. The 21 board may conduct a meeting by teleconference or similar communications equipment 22 if the board gives reasonable notice of the meeting and if the members, ratepayers, and 23 public are able to attend the meeting and hear the meeting. This subsection applies 24 only to a meeting at which a quorum is present. 25 (b) The board may hold an executive session to discuss matters that come 26 within the exceptions contained in (c) of this section on a majority vote of the board. 27 Before holding an executive session, the board must first be convened as a regular or 28 special meeting. A subject that is not mentioned in the motion calling for the executive 29 session may not be considered at the executive session unless the subject is auxiliary 30 to the main question. Formal action may not be taken during an executive session. 31 (c) The following matters may be discussed in an executive session:
01 (1) matters the knowledge of which would clearly have an adverse 02 effect on the finances of the corporation; 03 (2) matters that tend to prejudice the reputation and character of a 04 person; however, the person may request a public discussion; 05 (3) matters discussed with an attorney for the corporation, the 06 knowledge of which could have an adverse effect on the legal position of the 07 corporation; 08 (4) matters that are required by law to be confidential; 09 (5) matters pertaining to a plan, a program, or procedures for 10 establishing, maintaining, or restoring security, or to a detailed description or 11 evaluation of systems, facilities, or infrastructure of the corporation, but only to the 12 extent that the discussion of the matter in open session 13 (A) could reasonably be expected to interfere with the 14 implementation or enforcement of the security plan, program, or procedures; 15 (B) would disclose confidential guidelines for investigations or 16 enforcement and the disclosure could reasonably be expected to risk 17 circumvention of the law; or 18 (C) could reasonably be expected to endanger the life or 19 physical safety of an individual or to present a real and substantial risk to the 20 public health and welfare. 21 (d) The board shall give notice for all regular or special meetings of the board 22 as provided in the bylaws. 23 Sec. 42.50.040. Officers and employees. (a) The board shall appoint a chief 24 executive officer. The chief executive officer may not be a director and serves at the 25 pleasure of the board. 26 (b) The board shall appoint officers as required by the bylaws and as the board 27 determines to be necessary for the effective operation of the corporation. 28 (c) The chief executive officer may hire employees of the corporation as 29 necessary for the efficient performance of the functions of the corporation. The board 30 shall approve the range of compensation for employees. Employees of the corporation 31 are not employees of the state and are not considered to be employees of a public
01 organization for the purposes of AS 39. 02 (d) An employee of the corporation may not be a director. 03 Sec. 42.50.050. Membership. (a) The members of the corporation are the 04 public utility members and other entities that purchase services from the corporation 05 that the board of directors approves to become members. The corporation may provide 06 member benefits solely to the members of the corporation. 07 (b) An entity that meets the qualifications of a public utility member under 08 this subsection shall become a public utility member of the corporation if approved by 09 a two-thirds majority vote of the board. A public utility member 10 (1) shall be a municipal or cooperative electric utility with a designated 11 electric distribution service territory, holding a certificate of public convenience and 12 necessity issued by the Regulatory Commission of Alaska; 13 (2) shall be electrically interconnected to the service territory of the 14 corporation; and 15 (3) may not be an affiliated electric utility. 16 (c) An affiliated electric utility may become a member of the corporation if 17 approved by the board of directors. 18 (d) A member, including a public utility member, may withdraw from the 19 corporation if the member 20 (1) pays or provides for the payment of all liabilities owed to the 21 corporation; 22 (2) demonstrates that the withdrawal will not have adverse tax 23 consequences to the corporation; and 24 (3) gives not less than six months' notice to the corporation. 25 (e) Withdrawal from the corporation does not affect a right or obligation in an 26 agreement between a withdrawing public utility member and the corporation. The 27 corporation shall hold equity contributed by a withdrawing public utility member to 28 the corporation for the account of the withdrawing public utility member and refunded 29 only in accordance with a long-range financial management plan adopted by the 30 board. 31 (f) A public utility member may withdraw from being a public utility member
01 of the corporation but remain a member of the corporation if the public utility member 02 (1) demonstrates that the withdrawal will not have adverse tax 03 consequences to the corporation; and 04 (2) gives not less than six months' notice to the corporation. 05 (g) When a public utility member gives a notice of withdrawal, the public 06 utility member loses the right to have a director on the board. 07 Sec. 42.50.060. Articles of incorporation; change in location of principal 08 office. (a) The articles of incorporation and amended articles of incorporation of a 09 corporation must recite that they are executed under this chapter and must state 10 (1) the name of the corporation; 11 (2) the address of the principal office of the corporation; 12 (3) the names and the addresses of the incorporators; 13 (4) the names and addresses of the directors. 14 (b) The articles may contain any provisions consistent with this chapter that 15 are considered necessary or advisable for the conduct of the business of the 16 corporation. The articles shall be signed and acknowledged on behalf of each initial 17 public utility member of the corporation. It is not necessary to recite in the articles of 18 incorporation the purpose for which the corporation is organized or the corporate 19 powers of the corporation. 20 (c) Articles of incorporation, and amended articles of incorporation, shall be 21 submitted to the commissioner for filing. Upon a finding that the articles conform to 22 the requirements of this chapter, and upon payment of the fees provided in 23 AS 10.25.530, the commissioner shall file the articles in the records of the 24 commissioner's office. 25 (d) A corporation may, upon authorization of its board of directors, change the 26 location of its principal office by filing a certificate reciting the change of principal 27 office, executed and acknowledged by its presiding officer under its seal, attested by 28 the officer designated by the board, in the office of the commissioner. 29 Sec. 42.50.070. Bylaws. (a) The board shall adopt bylaws for the corporation 30 for the governance and management of the affairs of the corporation. The board may 31 alter, amend, or repeal the bylaws.
01 (b) The bylaws must be consistent with this chapter and the articles of 02 incorporation. 03 (c) The bylaws must set out conditions that require the corporation to offer 04 public utility members an opportunity to serve an industrial customer before the 05 corporation may serve an industrial customer. 06 (d) The bylaws must include provisions governing financing arrangements 07 under AS 42.50.150 that include obligations exceeding 12 months. 08 Sec. 42.50.080. Indemnification of directors, officers, and employees. The 09 corporation shall indemnify directors, officers, and employees in a manner consistent 10 with AS 10.06.490. 11 Sec. 42.50.090. General powers of the corporation. (a) To fulfill the 12 purposes described in AS 42.50.010, the corporation may 13 (1) sue and be sued in its name; 14 (2) have perpetual existence; 15 (3) adopt and alter a corporate seal; 16 (4) participate with federal, state, and local governmental entities in 17 formulating and implementing policies relating to electric power, and in planning for 18 the development, construction, and operation of adequate electric power generation 19 and transmission facilities for the service territory of the corporation; 20 (5) accept, by grant, sale, contract, operating agreement, or any other 21 arrangement, assets from members of the corporation or other public or private 22 entities, persons, or governments; 23 (6) engage in a program to support the efforts of the public utility 24 members and affiliated electric utilities to enhance the development, efficiency, 25 reliability, safety, and price stability of electric power in the service territory of the 26 corporation; 27 (7) generate, manufacture, purchase, acquire, accumulate, transmit, 28 meter, and dispatch wholesale electric power and ancillary services, and sell at 29 wholesale, supply, and dispose of electric power to public utility members, members, 30 affiliated electric utilities, and other entities; 31 (8) generate, manufacture, purchase, acquire, accumulate, transmit,
01 meter, and dispatch retail electric power and ancillary services to an industrial 02 customer, and sell at retail, supply, and dispose of electric power to an industrial 03 customer 04 (A) not located in the certificated service territory of a public 05 utility providing electric service, under conditions established in the bylaws; or 06 (B) located in the certificated service territory of a public utility 07 providing electric service if the public utility gives its written consent before 08 the corporation enters an agreement to sell power to the industrial customer; 09 (9) procure fuel supplies, fuel storage capacity, and fuel transmission 10 resources; 11 (10) construct, buy, lease, or otherwise acquire, equip, maintain, and 12 operate, and sell, assign, convey, lease, mortgage, pledge, or otherwise dispose of or 13 encumber land, buildings, structures, electric power lines or systems, dams, plants and 14 equipment, and any other real or personal property, tangible or intangible, that is 15 necessary, convenient, or appropriate to accomplish the corporation's purposes; 16 (11) buy, lease, use, or acquire franchises, rights, privileges, licenses, 17 permits, and easements; 18 (12) sell, assign, convey, mortgage, pledge, exercise, or dispose of or 19 encumber franchises, rights or privileges, licenses, permits, and easements; 20 (13) borrow money, contract indebtedness, issue evidences of 21 indebtedness, and secure payment of indebtedness by mortgage, pledge, deed of trust, 22 or other encumbrance on its real or personal property, assets, franchises, or revenue; 23 (14) construct, maintain, and operate electric transmission lines, along, 24 upon, under, and across publicly owned land and public thoroughfares, including, 25 without limitation, all roads, highways, streets, alleys, bridges, and causeways; 26 (15) exercise the power of eminent domain as a public utility under 27 AS 42.05.631, except the corporation may not exercise the power of eminent domain 28 to take an electric power generation or transmission asset from a public utility; 29 (16) acquire by purchase, lease, bequest, devise, gift, exchange, the 30 satisfaction of debts, the foreclosure of mortgages, or otherwise, personal property, 31 rights, rights-of-way, franchises, easements, and other interests in land, and acquire by
01 appropriation water rights that are located in the state, taking title to the property in the 02 name of the corporation; 03 (17) hold, maintain, use, operate, improve, lease, exchange, donate, 04 convey, alienate, encumber, or otherwise grant a security interest in, or authorize use 05 or dispose of, land or personal property, subject to other provisions of this chapter; 06 (18) contract with and accept transfers, gifts, grants, or loans of funds 07 or property from the United States or from the state or its political subdivisions, 08 subject to other provisions of federal or state law or municipal ordinances; 09 (19) undertake and provide for the management, operation, 10 maintenance, use, repair, renovation, and control of all of the property of the 11 corporation; 12 (20) apply to the state, the United States, foreign countries, or other 13 proper agencies for the permits, licenses, rights-of-way, or approvals necessary to 14 construct, maintain, and operate electric power and related services, and obtain, hold, 15 and reuse the licenses and permits in the same manner as other similar operators; 16 (21) enter into agreements with the state or a state agency or other 17 instrumentality of the state; 18 (22) make all contracts necessary, convenient, or appropriate for the 19 full exercise of its powers; 20 (23) conduct its business and exercise its powers inside or outside the 21 state; 22 (24) develop operating standards applicable to all public utilities 23 electrically interconnected to the service territory of the corporation; 24 (25) do or perform any other act and thing and have and exercise any 25 other power that may be necessary, convenient, or appropriate to accomplish the 26 corporation's purposes; and 27 (26) create subsidiary corporations. 28 (b) The corporation may not require its members to enter into power purchase 29 agreements that restrict the ability of members to enter into bilateral power purchase 30 or wheeling agreements among themselves, except as a condition for participation in 31 specific new generation or transmission projects when the condition is reasonably
01 necessary in order for the corporation to finance the project. 02 Sec. 42.50.100. Public utility powers and regulation. The corporation shall 03 have all of the powers and duties of a regulated electric public utility under AS 42.05, 04 except that the corporation 05 (1) may not make retail sales of electric power except to an industrial 06 customer under AS 42.50.090(a)(8); 07 (2) is not required to obtain a certificate under AS 42.05.221. 08 Sec. 42.50.110. Integrated resource plan. (a) The corporation shall adopt an 09 integrated resource plan for use with a long-range fuel supply plan under 10 AS 42.50.120 to determine the need for and selection of electric generation and 11 transmission projects to ensure delivery of safe and reliable electric power to public 12 utility members at the lowest reasonable long-term cost. The corporation shall 13 evaluate and consider recommendations made in an applicable state energy plan or 14 state integrated resource plan before in adopting and updating the plan. If the 15 corporation's integrated resource plan deviates from other state energy or resource 16 plans, the corporation's plan must include a report explaining the reasons for the 17 deviation. 18 (b) The board shall establish a schedule for review of the integrated resource 19 plan and update the plan at least once every five years. 20 (c) The corporation shall make the integrated resource plan available on the 21 Internet to members, the governor, the legislature, and ratepayers. 22 Sec. 42.50.120. Long-range fuel supply plan. (a) The corporation shall adopt 23 a long-range fuel supply plan to determine the need for and selection of fuel supplies 24 to be used by electric generation projects to ensure delivery of safe, reliable, and 25 sustainable electric power to public utility members at the lowest reasonable long-term 26 cost. The corporation shall evaluate recommendations made in any applicable state 27 energy plan or state integrated resource plan before adopting and updating the long- 28 range fuel supply plan. If the corporation deviates from recommendations in a state 29 plan, the adopted or updated long-range fuel supply plan shall include a report 30 explaining the reasons for the deviation. 31 (b) The board shall establish a schedule for review of the long-range fuel
01 supply plan and update the plan at least once every five years. 02 (c) The corporation shall make the long-range fuel supply plan available on 03 the Internet to members, the governor, the legislature, and ratepayers. 04 Sec. 42.50.130. Long-range capital improvement plan. (a) The corporation 05 shall adopt a long-range capital improvement plan. The plan must describe how the 06 corporation intends to accomplish the corporation's purposes and identify anticipated 07 capital improvements planned during each of the following 10 years. The plan must be 08 based on the principle of providing safe, reliable, and sustainable electric power to 09 public utility members at the lowest reasonable long-term cost. 10 (b) The board shall establish a schedule for review of the long-range capital 11 improvement plan and update the plan at least once every five years. 12 (c) The corporation shall make the long-range capital improvement plan 13 available on the Internet to members, the governor, the legislature, and ratepayers. 14 Sec. 42.50.140. Long-range financial management plan. (a) The corporation 15 shall adopt a long-range financial management plan. The plan must describe the 16 manner in which the corporation intends to accomplish the corporation's purposes and 17 the corporation's plans for acquisition, accumulation, and issuance of equity and debt 18 for the next 10 years. The plan shall be based on the principle of providing safe, 19 reliable, and sustainable electric power to public utility members at the lowest 20 reasonable long-term cost. 21 (b) The board shall establish a schedule for review and update the long-range 22 financial management plan at least once every five years. 23 (c) The corporation shall make the long-range financial management plan 24 available on the Internet to members, the governor, the legislature, and ratepayers. 25 Sec. 42.50.150. Financing arrangements. (a) The corporation may 26 (1) use any financing arrangements permitted by law in achieving the 27 purposes and objectives of the corporation; and 28 (2) develop financing arrangements for individual projects. 29 (b) The corporation may obtain assistance from state agencies with financing 30 projects through direct grants, debt guarantees, granting of a moral obligation of the 31 state to ensure payment of debt instruments, purchase of issued debt instruments, or
01 other financial methods appropriate to the projects or tasks. 02 Sec. 42.50.160. Fuel supplies. (a) The corporation may acquire long-term fuel 03 supplies as required to ensure electric power generation facilities can operate without 04 fuel-related interruption, including direct ownership of transportation and storage 05 facilities as required to fulfill the purposes of the corporation under AS 42.50.010(b). 06 (b) The corporation may acquire long-term fuel supplies under this section in 07 conjunction with other entities that are acquiring long-term fuel supplies for any 08 lawful purpose in any lawful manner. 09 Sec. 42.50.170. Tax exemption. The real and personal property of the 10 corporation and the assets, income, and receipts of the corporation are exempt from all 11 taxes and assessments of the state or a political subdivision of the state, except that 12 electricity sold at retail by the corporation is subject to the electric cooperative tax 13 under AS 10.25.540 - 10.25.570. 14 Sec. 42.50.180. Reports and publications. The board shall publish an annual 15 report on the Internet. The report must include financial statements audited by 16 independent auditors, a discussion of the corporation's circumstances and operations 17 during the period covered by the report, and any other information requested by the 18 legislature. The board may publish other information or reports it considers 19 appropriate. 20 Sec. 42.50.190. Right to examine books and records. (a) Except as provided 21 in (c) of this section, members and ratepayers may, at a reasonable time and for any 22 proper purpose, examine and make copies of the books and records of the corporation 23 at the principal office of the corporation. 24 (b) The corporation may charge a requestor an amount equal to the actual cost 25 of finding and duplicating documents requested under this section. 26 (c) The corporation may withhold books and records concerning the following 27 subjects: 28 (1) records required to be kept confidential by law; 29 (2) personnel records, to the extent that the records are not required to 30 be publicly disclosed by a state or federal agency; 31 (3) records that are proprietary, privileged, or a trade secret;
01 (4) records or information pertaining to a plan, a program, or 02 procedures for establishing, maintaining, or restoring security, or to a detailed 03 description or evaluation of systems, facilities, or infrastructure of the corporation, but 04 only to the extent that the production of the records or information 05 (A) could reasonably be expected to interfere with the 06 implementation or enforcement of the security plan, program, or procedures; 07 (B) would disclose confidential guidelines for investigations or 08 enforcement and the disclosure could reasonably be expected to risk 09 circumvention of the law; or 10 (C) could reasonably be expected to endanger the life or 11 physical safety of an individual or to present a real and substantial risk to the 12 public health and welfare; or 13 (5) specific matters that were prepared for or during an executive 14 session of the board, and not subsequently made public by the corporation. 15 Sec. 42.50.200. Audits and examinations of corporation. The corporation 16 shall be audited annually by an independent auditor. The board shall engage the 17 auditor, who shall be responsible to the board. The corporation shall submit copies of 18 each report of the auditor to the legislature and governor within 30 days after receipt 19 of the report by the corporation. 20 Sec. 42.50.210. Dissolution, merger, consolidation, and disposition of 21 assets. Without prior legislative approval, the corporation may not 22 (1) dissolve; 23 (2) merge or consolidate; or 24 (3) dispose of corporate assets other than in the ordinary course of 25 business. 26 Sec. 42.50.220. Procedures for dispute resolution. The corporation shall 27 establish a dispute resolution process in its bylaws. The dispute resolution process 28 must include, at a minimum, 29 (1) a requirement that disputes be initially brought before the board for 30 resolution; 31 (2) a requirement that the parties shall attempt to resolve a dispute that
01 is not resolved by the board through mediation; 02 (3) a requirement that the corporation and the disputing party shall 03 attempt to resolve a dispute that is not resolved by the board and is not resolved 04 through mediation through binding arbitration if allowed by the bylaws of the 05 corporation; and 06 (4) if not resolved by the board, through mediation, or through binding 07 arbitration, if allowed, a provision for resolution of the dispute through litigation in a 08 court of competent jurisdiction. 09 Sec. 42.50.900. Definitions. In this chapter, unless the context otherwise 10 requires, 11 (1) "affiliated electric utility" means an electric utility that is wholly 12 owned by one or more public utility members and by or through which one or more 13 public utility members obtain electric power or electric generation or transmission 14 services; 15 (2) "board" means the board of directors of the corporation; 16 (3) "commissioner" means the commissioner of commerce, 17 community, and economic development; 18 (4) "cooperative" means an entity organized under AS 10.25; 19 (5) "corporation" means an energy and transmission corporation 20 organized under this chapter; 21 (6) "electrically interconnected" means interconnected at a minimum 22 transmission level of 69 kilovolts; 23 (7) "electric power" means electric energy and capacity; 24 (8) "electric utility" means a public utility, as defined in AS 42.05.990 25 that furnishes electrical generation, transmission, or distribution service; 26 (9) "member" means a member of the corporation under AS 42.50.050, 27 including public utility members; 28 (10) "public utility member" means a municipal or cooperative electric 29 utility that has an electric distribution service territory, that holds a certificate of public 30 convenience and necessity issued by the Regulatory Commission of Alaska, that is one 31 of the electric utilities that organizes an energy and transmission corporation or that
01 becomes a public utility member of the corporation under AS 42.50.050(b), and that 02 does not withdraw from being a member or public utility member under 03 AS 42.50.050(d) or (e); 04 (11) "ratepayers" means the ratepayers of the public utility members of 05 the corporation; 06 (12) "service territory of the corporation" means the combined service 07 territories identified in the certificates of public convenience and necessity issued by 08 the Regulatory Commission of Alaska for each of the public utility members of the 09 corporation. 10 * Sec. 3. AS 44.83.396(c) is amended to read: 11 (c) The authority shall enter into a contract or lease under reasonable terms 12 and conditions to permit the applicant utility to operate the power project when the 13 applicant utility is the only wholesale power customer to be served directly by the 14 power project, or is a corporation organized under AS 42.50.010 and one or more 15 public utility members of the corporation is a wholesale power customer to be 16 served directly by the power project, unless the authority determines the [A] utility 17 or corporation making application for a contract or lease to operate a power project is 18 not a qualified utility or is not capable of operating that power project efficiently and 19 in a manner that is consistent with national standards for the industry and with 20 agreements with bondholders. 21 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 22 read: 23 AUTHORIZATION TO FORM GREATER RAILBELT ENERGY AND 24 TRANSMISSION CORPORATION. (a) Any combination of four or more of the following 25 public utilities may organize the Greater Railbelt Energy and Transmission Corporation, as an 26 energy and transmission corporation under AS 42.50: 27 (1) Homer Electric Association, Inc.; 28 (2) the City of Seward, Electric Utility Department; 29 (3) Chugach Electric Association, Inc.; 30 (4) the Municipality of Anchorage d/b/a Municipal Light and Power; 31 (5) Matanuska Electric Association, Inc.; and
01 (6) Golden Valley Electric Association, Inc. 02 (b) The corporation described in (a) of this section, if formed, shall conduct, under the 03 direction of the Legislative Budget and Audit Committee, a management audit of the 04 corporation to be commenced on June 30, 2013, 2016, and 2020. The management audit shall 05 be conducted under methodologies and principles set out in volumes I (1988 ed.), II (1992 06 ed.) and III (1995 ed.) of the Management Audit Manual published by the National 07 Association of Regulatory Utility Commissioners, Washington, D.C. The results of the 08 management audit shall be transmitted to the Legislative Budget and Audit Committee 180 09 days after the commencement of the audit. This obligation to conduct a management audit 10 shall be in addition to any audit obligation that may be required under an appropriation to the 11 corporation. 12 (c) This section authorizes the organization of the Greater Railbelt Energy and 13 Transmission Corporation, as required under AS 42.50.010(a), enacted by sec. 2 of this Act, if 14 the conditions in sec. 5 of this Act are met. 15 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 CONDITIONAL EFFECT. (a) Sections 2 and 3 of this Act take effect only if four or 18 more of the listed public utilities deliver to the Alaska Energy Authority before 4:30 p.m. on 19 July 30, 2010, a letter of intent in the form and substance acceptable to the Alaska Energy 20 Authority, under which the listed public utility agrees to become a public utility member of 21 the Greater Railbelt Energy and Transmission Corporation. Each listed public utility that 22 meets the conditions described in this subsection shall, effective August 16, 2010, be a public 23 utility member of the Greater Railbelt Energy and Transmission Corporation. The listed 24 public utilities are as follows: 25 (1) Homer Electric Association, Inc.; 26 (2) the City of Seward, Electric Utility Department; 27 (3) Chugach Electric Association, Inc.; 28 (4) the Municipality of Anchorage d/b/a Municipal Light and Power; 29 (5) Matanuska Electric Association, Inc.; 30 (6) Golden Valley Electric Association, Inc. 31 (b) The executive director of the Alaska Energy Authority shall notify the lieutenant
01 governor and the revisor of statutes when any of the conditions described in (a) of this section 02 are met. 03 (c) In this section, unless the context otherwise requires, 04 (1) "Alaska Energy Authority" means the authority created in AS 44.83.020; 05 (2) "Greater Railbelt Energy and Transmission Corporation" means the 06 corporation organized as an energy and transmission corporation under AS 42.50, enacted by 07 sec. 2 of this Act, as authorized by sec. 4 of this Act; 08 (3) "public utility member" has the meaning given in AS 42.50.900, enacted 09 by sec. 2 of this Act. 10 * Sec. 6. If secs. 2 and 3 of this Act take effect under sec. 5(a) of this Act, they take effect 11 August 16, 2010. 12 * Sec. 7. Sections 1, 4, and 5 of this Act take effect immediately under AS 01.10.070(c).