00 CS FOR HOUSE BILL NO. 50(L&C) 01 "An Act authorizing power transmission interties between Anchorage and the 02 Kenai Peninsula, between Healy and Fairbanks, between Sutton and Glennallen, 03 and between the Swan Lake and Tyee Lake hydroelectric projects, and approving 04 the design and construction costs of the interties; relating to procurement 05 contracts concerning certain electric transmission lines; creating the four dam pool 06 account; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. LEGISLATIVE INTENT AND FINDINGS. (a) It is the intent of the 09 legislature that money deposited in the four dam pool account, enacted by sec. 2 of this Act, 10 may be appropriated by the legislature to finance the planning, rehabilitation, construction, and 11 improvements to the four dam pool hydroelectric projects and for other public purposes. 12 Improvements to the projects may include the addition of new hydroelectric generating 13 capacity, the construction of interties to make the projects more efficient, and other 14 improvements to the system. The legislature should be guided in establishing a priority for 01 expenditures for the four dam pool projects by a majority vote of the public utilities that are 02 members of the project management committee under the power sales agreement for the four 03 dam pool hydroelectric power projects. 04 (b) It is the intent of the legislature that $800,000 be appropriated annually from the 05 four dam pool account, established by sec. 2 of this Act, to the Alaska Energy Authority for 06 the administrative expenses of the authority. 07 (c) It is the intent of the legislature that the 08 (1) first priority for funding from the four dam pool account should be the 09 power transmission intertie between Tyee Lake and Swan Lake; 10 (2) second priority for funding from the four dam pool account should be the 11 power transmission intertie between Sutton and Glennallen. 12 (d) Is the intent of the legislature that the Alaska Energy Authority issue revenue 13 bonds in the amount of $58,600,000 as supplemental financing for the power transmission 14 interties between Sutton and Glennallen, authorized by sec. 6 of this Act, and between Swan 15 Lake and Tyee Lake, authorized by sec. 7 of this Act. 16 * Sec. 2. AS 36.30.850(b) is amended by adding a new paragraph to read: 17  (30) contracts between the Alaska Energy Authority and one or more 18 public utilities for the design and construction of an electric transmission line but only 19 if the utility or utilities have agreed, in writing, to pay the 20  (A) design and construction costs of the lines, after the 21 deduction of money appropriated for that purpose by the state, and to provide 22 for the repayment of any loans or bonded indebtedness related to the project, 23 regardless of final completion costs and unforeseen expenses; and 24  (B) operation and maintenance costs of the project. 25 * Sec. 3. AS 44.83 is amended by adding a new section to read: 26  Sec. 44.83.505. FOUR DAM POOL ACCOUNT. (a) There is created in the 27 power development revolving loan fund the four dam pool account. The account 28 consists of money in the power development revolving loan fund that, beginning 29 July 1, 1993, can be attributed to receipts from the hydroelectric power projects that 30 constitute the four dam pool. The legislature may appropriate the money in the four 31 dam pool account for projects related to the four dam pool and for other purposes as 01 provided by law. 02  (b) In this section, "four dam pool" means the hydroelectric facilities at Tyee 03 Lake, Swan Lake, Solomon Gulch, and Terror Lake. 04 * Sec. 4. In accordance with AS 44.83.185(c) and contingent upon sec. 8 of this Act, the 05 Alaska Energy Authority is authorized to design and construct a power transmission intertie 06 between Anchorage and the Kenai Peninsula at a cost of $103,000,000. 07 * Sec. 5. In accordance with AS 44.83.185(c) and contingent upon sec. 8 of this Act, the 08 Alaska Energy Authority is authorized to design and construct a power transmission intertie 09 between Healy and Fairbanks at a cost of $95,500,000. 10 * Sec. 6. (a) In accordance with AS 44.83.185(c) and contingent upon (b) and (c) of this 11 section, the Alaska Energy Authority is authorized to design and construct a power 12 transmission intertie between Sutton and Glennallen at a cost of $44,000,000. 13 (b) The authorization made by (a) of this section is contingent upon a written 14 agreement between the electric utilities participating in the project authorized by this section 15 and the Alaska Energy Authority providing that the participating utilities agree to pay 16 (1) design and construction costs for the power transmission intertie authorized 17 by (a) of this section that exceed $13,000,000; and 18 (2) the operation and maintenance costs of the power transmission intertie 19 authorized by (a) of this section. 20 (c) The authorization made by (a) of this section is contingent upon the office of 21 management and budget recommending approval of the feasibility study and the plan of 22 finance for the project under AS 44.83.183. The office shall notify the revisor of statutes of 23 its recommendations on the project. 24 * Sec. 7. In accordance with AS 44.83.185(c), the Alaska Energy Authority is authorized 25 to design and construct a power transmission intertie between the Swan Lake and the Tyee 26 Lake hydroelectric projects at a cost of $55,600,000. 27 * Sec. 8. The authorizations made by secs. 4 and 5 of this Act are contingent upon written 28 agreements between the Alaska Energy Authority and the electric utilities participating in the 29 projects authorized by those sections providing that the participating utilities agree to pay 30 (1) design and construction costs for the power transmission interties 31 authorized by secs. 4 and 5 of this Act that exceed $99,250,000 and the interest earned on that 01 sum; and 02 (2) the operation and maintenance costs of the power transmission interties 03 authorized by secs. 4 and 5 of this Act. 04 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).