2020-02-26                     Senate Journal                      Page 1866
SB 123                                                                                                                        
The Senate Special Committee on the Railbelt Electric System                                                                    
considered SENATE BILL NO. 123 "An Act relating to the regulation                                                               
of electric utilities and electric reliability organizations; and providing                                                     
for an effective date" and recommended it be replaced with                                                                      
                                                                                                                                
          CS FOR SENATE BILL NO. 123(RBE) "An Act                                                                               
          relating to the creation and regulation of electric                                                                   
          reliability organizations; relating to participation of                                                               
          electric utilities in electric reliability organizations;                                                             
          relating to duties of electric reliability organizations;                                                             
          providing for integrated resource planning; requiring                                                                 
          project preapproval for certain interconnected large                                                                  
           energy facilities; and providing for an effective date."                                                            
                                                                                                                                
and further recommended the adoption of a Senate Railbelt Electric                                                              
System Committee Letter of Intent:                                                                                              
                                                                                                                                
                               Letter of Intent                                                                                
                                                                                                                                
It is the intent of the Thirty-First Alaska State Legislature that under                                                        
SB 123, reliability standards, electric reliability organization (ERO)                                                          
tariff standards, planning terms, and project pre-approval requirements                                                         
will ultimately apply across the entire interconnected Railbelt electric                                                        
energy network. Broad application is necessary to achieve the desired                                                           
efficiencies and reliability for Alaskans within the Railbelt.                                                                  
                                                                                                                                
SB 123 does not in any way affect or change the existing relationship                                                           
between the RCA and the Bradley Lake project agreements, contracts,                                                             
and amendments exempt under AS 42.05.43l(c). It is, however, the                                                                
intent of the Alaska State Legislature that after the Bradley Lake                                                              
project debt is satisfied and the AS 42.05.431(c) exemption expires,                                                            
those agreements, contracts, and amendments shall be subject to                                                                 
SB 123.                                                                                                                         
                                                                                                                                

2020-02-26                     Senate Journal                      Page 1867
Should Bradley Lake project agreements, contracts, and amendments                                                               
receive a future extension of the AS 42.05.431(c) exemptions, the                                                               
Thirty-First Alaska State Legislature urges consideration of the                                                                
relationship between Bradley Lake and associated infrastructure and                                                             
projects, the Railbelt network, and the electric reliability organization,                                                      
and emphasizes the intent to subject all interconnected network users,                                                          
owners, or operators to the reliability standards, an electric reliability                                                      
organization tariff, planning, and project pre-approval requirements.                                                           
                                                                                                                                
Signing do pass: Senator Coghill, Chair; Senator Gray-Jackson.                                                                  
Signing no recommendation: Senator Micciche.                                                                                    
                                                                                                                                
The following fiscal information was published today:                                                                           
     Fiscal Note No. 1, zero, Department of Commerce,                                                                           
          Community, and Economic Development                                                                                   
                                                                                                                                
The bill was referred to the Finance Committee.