00 HOUSE BILL NO. 182 01 "An Act establishing the Greater Railbelt Energy and Transmission Corporation and 02 relating to the corporation; relating to transition, financial plan, and reporting 03 requirements regarding planning for the initial business operations of the Greater 04 Railbelt Energy and Transmission Corporation; relating to a report on legislation 05 regarding the Regulatory Commission of Alaska and the Greater Railbelt Energy and 06 Transmission Corporation; authorizing the Alaska Energy Authority to convey the 07 Bradley Lake Hydroelectric Project and the Alaska Intertie to the Greater Railbelt 08 Energy and Transmission Corporation; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10  * Section 1. AS 42 is amended by adding a new chapter to read:  11 Chapter 50. Greater Railbelt Energy and Transmission Corporation.  12 Sec. 42.50.010. Greater Railbelt Energy and Transmission Corporation.  01 (a) There is established the Greater Railbelt Energy and Transmission Corporation. 02 (b) The purpose of the corporation is to plan for and 03 (1) provide adequate, reliable, safe, and stable wholesale electric 04 power to Greater Railbelt electric utilities, on a non-discriminatory basis, at the lowest 05 feasible cost; 06 (2) procure adequate fuel supply, fuel storage, and fuel resources 07 required to meet the short- and long-term electric power needs of the Greater Railbelt 08 region service territory; and 09 (3) take all actions necessary to ensure that adequate generation and 10 transmission assets exist to prudently meet, both locally and regionally, the short- and 11 long-term electric power and reliability needs of the electrically interconnected 12 Greater Railbelt region service territory. 13 (c) The corporation shall operate on a nonprofit basis. 14 (d) The corporation is exempt from the provisions of AS 10.15 (Alaska 15 Cooperative Corporation Act), AS 10.20 (Alaska Nonprofit Corporation Act), and 16 AS 10.25 (Electric and Telephone Cooperative Act) in its structure and operations and 17 in the exercise of the powers granted by this chapter. 18 (e) The corporation has a separate and independent existence from the State of 19 Alaska. The corporation may not be considered or constitute the state, a state agency, 20 an administrative unit of the executive branch of state government, a public 21 corporation of the state, a municipal corporation, or a political subdivision of the state. 22 (f) The exercise by the corporation of the powers granted by this chapter is 23 considered to be for a public purpose. 24 Sec. 42.50.020. Board of directors. (a) The corporation shall be governed by a 25 board of directors consisting of up to 13 individuals, including the following: 26 (1) two representatives from each Greater Railbelt electric utility; one 27 representative director shall be the chief executive officer of the utility or the chief 28 executive officer's designee, and the second representative director shall be appointed 29 by the governing body of the utility; 30 (2) one public director appointed by the governor. 31 (b) The term of a director representing a utility immediately expires on the 01 earlier of the date when the individual no longer holds the position that qualified the 02 individual to be on the board, or the date when the corporation is notified that the 03 individual has been replaced as a utility representative on the board. 04 (c) The term of the director appointed by the governor is four years. The 05 governor may reappoint to the board the director described in this subsection. 06 (d) The board may remove a director of the board for cause upon two-thirds 07 majority vote of the full board. The bylaws shall provide a mechanism for a Greater 08 Railbelt electric utility to appoint an alternative director if the chief executive officer 09 of the utility is removed from the corporation board. 10 (e) A majority of the members of 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 members of the board shall annually elect from among themselves a 13 chair and vice-chair and other board officers as may be provided in the corporation's 14 bylaws. 15 (g) The directors of the board shall receive no salary, but the corporation may 16 pay directors per diem and travel expenses up to the maximum amounts permitted to 17 be paid to members of boards and commissions under AS 39.20.180. 18 Sec. 42.50.030. Board meetings open; exceptions. (a) A meeting of the board 19 may be attended by members of the corporation and the public. Except when voice 20 votes are authorized, a vote shall be conducted in a manner that the public may know 21 the vote of each person entitled to vote. The board may conduct a meeting by 22 teleconference or similar communications equipment if the board gives reasonable 23 notice of the meeting and if members of the corporation and the public are able to 24 attend the meeting and hear the meeting. This section applies only to a meeting at 25 which a quorum of the board participates. 26 (b) If excepted subjects are to be discussed at a meeting, the meeting must first 27 be convened as a regular or special meeting, with an opportunity for general public 28 comment first given to members of the corporation and the public. The question of 29 holding an executive session to discuss matters that come within the exceptions 30 contained in (c) of this section is determined by a majority vote of the board. A subject 31 may not be considered at the executive session except those mentioned in the motion 01 calling for the executive session unless auxiliary to the main question. Formal action 02 may not be taken during the executive session of the board. 03 (c) The following excepted subjects may be discussed in an executive session: 04 (1) matters the knowledge of which would clearly have an adverse 05 effect on the finances of the corporation; 06 (2) subjects that tend to prejudice the reputation and character of a 07 person; however, the person may request a public discussion; 08 (3) matters discussed with an attorney for the corporation, the 09 knowledge of which could have an adverse effect on the legal position of the 10 corporation; 11 (4) matters that by law, municipal charter, or ordinance are required to 12 be confidential; 13 (5) matters pertaining to a plan, program, or procedures for 14 establishing, maintaining, or restoring security, or to a detailed description or 15 evaluation of systems, facilities, or infrastructure in the corporation, but only to the 16 extent that the discussion of the matter in public 17 (A) could reasonably be expected to interfere with the 18 implementation or enforcement of the security plan, program, or procedures; 19 (B) would disclose confidential guidelines for investigations or 20 enforcement and the disclosure could reasonably be expected to risk 21 circumvention of the law; or 22 (C) could reasonably be expected to endanger the life or 23 physical safety of an individual or to present a real and substantial risk to the 24 public health and welfare. 25 (d) Notice shall be given for all regular or special meetings of the board as 26 provided in the bylaws of the corporation. 27 Sec. 42.50.040. Officers and employees. (a) The board shall employ a chief 28 executive officer. The chief executive officer may not be a member of the board and 29 serves at the pleasure of the board. 30 (b) The board shall appoint those officers of the corporation that are provided 31 for in the corporation's bylaws and as the board determines to be necessary for the 01 effective operations of the corporation. An executive, operating, administrative, or 02 other salaried officer of the corporation may not be a member of the board. 03 (c) The chief executive officer may hire employees of the corporation as may 04 be determined necessary for the efficient performance of the functions of the 05 corporation. The board shall approve the range of compensation for employees. 06 Employees of the corporation are not employees of the state and are not considered to 07 be employees of a public organization for the purposes of AS 39.35. 08 Sec. 42.50.050. Membership. The members of the corporation are the 09 ratepayers of the Greater Railbelt electric utilities. The members are represented in the 10 governance of the corporation through their electric utility. The corporation provides 11 all member benefits and credits solely to the Greater Railbelt electric utilities and 12 affiliated electric utilities. 13 Sec. 42.50.060. Bylaws. The board may adopt bylaws for the corporation for 14 the governance and management of the affairs of the corporation, and may alter, 15 amend, or repeal them. The bylaws shall be consistent with this chapter and other laws 16 that apply to the corporation. 17 Sec. 42.50.070. Indemnification of directors, officers, and employees. The 18 corporation may indemnify directors, officers, and employees, or may purchase and 19 maintain insurance on behalf of directors, officers, and employees. The 20 indemnification and purchase and maintenance of insurance must comply with 21 AS 10.06.490. 22 Sec. 42.50.100. General powers of the corporation. The corporation may 23 (1) sue and be sued in its name; 24 (2) have perpetual existence; 25 (3) adopt a corporate seal and alter it; 26 (4) participate with state departments and agencies in formulating and 27 implementing electric power policy, and in planning for the development, 28 construction, and operation of adequate electric power generation and transmission 29 facilities, for the Greater Railbelt region service territory; 30 (5) engage in programs to support the efforts of the Greater Railbelt 31 electric utilities and affiliated electric utilities in order to enhance the further 01 development, efficiency, reliability, safety, and price stability of electric power in the 02 Greater Railbelt region service territory; 03 (6) generate, manufacture, purchase, acquire, accumulate, transmit, 04 meter, and economically dispatch electric power, and sell at wholesale, supply, and 05 dispose of electric power to Greater Railbelt electric utilities and affiliated electric 06 utilities; 07 (7) procure fuel supplies, fuel storage capacity, and fuel transmission 08 resources; 09 (8) construct, buy, lease, or otherwise acquire, and equip, maintain, 10 and operate, and sell, assign, convey, lease, mortgage, pledge, or otherwise dispose of 11 or encumber lands, buildings, structures, electric power lines or systems, dams, plants 12 and equipment, and any other real or personal property, tangible or intangible, that is 13 necessary, convenient, or appropriate to accomplish the purpose for which the 14 corporation is organized; 15 (9) buy, lease, or otherwise acquire, and use, and exercise and sell, 16 assign, convey, mortgage, pledge, or otherwise dispose of or encumber franchises, 17 rights, privileges, licenses, and easements; 18 (10) borrow money and otherwise contract indebtedness, and issue 19 evidences of indebtedness, and secure the payment of the indebtedness by mortgage, 20 pledge, or deed of trust of, or any other encumbrance upon its real or personal 21 property, assets, franchises, or revenues; 22 (11) construct, maintain, and operate electric transmission lines, along, 23 upon, under, and across publicly owned lands and public thoroughfares, including, 24 without limitation, all roads, highways, streets, alleys, bridges, and causeways; 25 (12) exercise the power of eminent domain under AS 42.05.631; 26 (13) acquire by purchase, lease, bequest, devise, gift, exchange, the 27 satisfaction of debts, the foreclosure of mortgages, or otherwise, personal property, 28 rights, rights-of-way, franchises, easements, and other interests in land, and acquire by 29 appropriation water rights that are located in the state, taking title to the property in the 30 name of the corporation; 31 (14) hold, maintain, use, operate, improve, lease, exchange, donate, 01 convey, alienate, encumber, or otherwise grant a security interest in, or authorize use 02 or dispose of, land or personal property, subject to other provisions of this chapter; 03 (15) contract with and accept transfers, gifts, grants, or loans of funds 04 or property from the United States or from the state or its political subdivisions, 05 subject to other provisions of federal or state law or municipal ordinances; 06 (16) undertake and provide for the management, operation, 07 maintenance, use, repair, renovation, and control of all of the property of the 08 corporation; 09 (17) apply to the state, the United States, and foreign countries or other 10 proper agencies for the permits, licenses, rights-of-way, or approvals necessary to 11 construct, maintain, and operate electric power and related services, and obtain, hold, 12 and reuse the licenses and permits in the same manner as other similar operators; 13 (18) enter into agreements with the state or a state agency or other 14 instrumentality of the state; 15 (19) adopt, amend, and repeal bylaws; 16 (20) make all contracts necessary, convenient, or appropriate for the 17 full exercise of its powers; 18 (21) conduct its business and exercise its powers inside or outside the 19 state; 20 (22) do and perform any other act and thing, and have and exercise any 21 other power that may be necessary, convenient, or appropriate to accomplish the 22 purpose for which the corporation is organized; and 23 (23) create subsidiary corporations, including subsidiary corporations 24 organized under AS 10.20. 25 Sec. 42.50.110. Public utility powers and regulation. The corporation shall 26 have all of the powers and duties of a regulated electric public utility under AS 42.05, 27 except as follows: 28 (1) the corporation is not required to obtain a certificate under 29 AS 42.05.221; 30 (2) the corporation may not make retail sales of electric power. 31 Sec. 42.50.120. Integrated resource plan. (a) The corporation shall adopt an 01 integrated resource plan for the corporation to use in determining the need for, and 02 selection of, electric generation and transmission projects to ensure delivery of safe, 03 reliable, and sustainable electric power to Greater Railbelt electric utilities at the 04 lowest feasible long-term cost. The corporation in adopting and updating the plan shall 05 evaluate and consider recommendations made in any applicable state energy plan or 06 state integrated resource plan. If the corporation deviates from these state 07 recommendations, the adopted or updated integrated resource plan must include a 08 report explaining the reasons for the deviation. 09 (b) The board shall adopt a schedule to regularly review and update the 10 integrated resource plan. 11 (c) The integrated resource plan and any update shall be made available on the 12 Internet to Greater Railbelt electric utilities, members of the corporation, the governor, 13 the legislature, and the public. 14 Sec. 42.50.130. Long-range capital improvement plan. (a) The corporation 15 shall adopt a long-range capital improvement plan. The plan must describe the manner 16 in which the corporation intends to accomplish the purposes of this chapter, and 17 anticipated capital improvements during each of the following 10 years. The plan shall 18 be based on the principle of providing safe, reliable, and sustainable electric power to 19 Greater Railbelt electric utilities at the lowest feasible long-term cost. 20 (b) The board shall annually review, approve revisions to, and update the 21 long-range capital improvement plan on or before September 30 of each year. 22 (c) The long-range capital improvement plan and any update shall be made 23 available on the Internet to Greater Railbelt electric utilities, members of the 24 corporation, the governor, the legislature, and the public. 25 Sec. 42.50.140. Long-range capital management plan. (a) The corporation 26 shall adopt a long-range capital management plan. The plan must describe the manner 27 in which the corporation intends to accomplish the purposes of this chapter, and the 28 corporation's plans for acquisition, accumulation, and issuance of equity and debt for 29 the next 10 years. The plan shall be based on the principle of providing safe, reliable, 30 and sustainable electric power to Greater Railbelt electric utilities at the lowest 31 feasible long-term cost. 01 (b) The board shall annually review, approve revisions to, and update the 02 long-range capital management plan on or before September 30 of each year. 03 (c) The long-range capital management plan and any update shall be made 04 available on the Internet to Greater Railbelt electric utilities, members of the 05 corporation, the governor, the legislature, and the public. 06 Sec. 42.50.150. Pledge of the state. (a) The state pledges to and agrees with 07 any lender to the corporation that the state will not limit or alter the rights and powers 08 given to the corporation by this chapter to fulfill the terms of a contract made by the 09 corporation with the lender to the corporation, or in any way impair the rights and 10 remedies of the lender to the corporation. The corporation is authorized to include this 11 pledge and agreement of the state in a contract with any lender to the corporation. 12 (b) The pledge of the state is limited to the express provisions of (a) of this 13 section and is not a guarantee, surety, promise, undertaking, or assurance of repayment 14 or performance of any obligation of the corporation. 15 Sec. 42.50.160. Fuel supply. The corporation may acquire long-term fuel 16 supplies as required to ensure electric power generation facilities can operate without 17 fuel-related interruption, including direct ownership of fuel supply production, 18 transportation, and storage facilities as required to meet the corporate purpose stated in 19 AS 42.50.010(b). The corporation may acquire long-term fuel supplies under this 20 section in conjunction with other persons acquiring long-term fuel supplies for any 21 lawful purpose. 22 Sec. 42.50.170. Tax exemption. The real and personal property of the 23 corporation and the assets, income, and receipts of the corporation are exempt from all 24 taxes and special assessments of the state or a political subdivision of the state. 25 Sec. 42.50.200. Reports and publications. The board shall publish on the 26 Internet an annual report for the Greater Railbelt electric utilities. The report shall be 27 made available to members of the corporation, the governor, the legislature, and the 28 public. The report must include financial statements audited by independent outside 29 auditors, a discussion of the corporation's circumstances and operations during the 30 period covered by the report, and any other information that the board believes would 31 be of interest to members of the corporation, the governor, the legislature, and the 01 public, or that the legislature requests the board to include. The board may publish 02 other reports considered appropriate to its purposes. 03 Sec. 42.50.210. Right to examine books and records. (a) Greater Railbelt 04 electric utilities, members of the corporation, and the public may, at a reasonable time 05 and for any proper purpose, examine and make copies of the books and records of the 06 corporation at the principal office of the corporation, except as provided in (c) of this 07 section. 08 (b) The corporation may charge the requestor an amount equal to the actual 09 cost of duplicating documents requested under this section. 10 (c) The corporation may withhold books and records concerning the following 11 subjects: 12 (1) records required to be kept confidential by law, municipal charter, 13 or ordinance; 14 (2) personnel records; 15 (3) records that are proprietary, privileged, or a trade secret; 16 (4) records or information pertaining to a plan, program, or procedures 17 for establishing, maintaining, or restoring security, or to a detailed description or 18 evaluation of systems, facilities, or infrastructure of the corporation, but only to the 19 extent that the production of the records or information 20 (A) could reasonably be expected to interfere with the 21 implementation or enforcement of the security plan, program, or procedures; 22 (B) would disclose confidential guidelines for investigations or 23 enforcement and the disclosure could reasonably be expected to risk 24 circumvention of the law; or 25 (C) could reasonably be expected to endanger the life or 26 physical safety of an individual or to present a real and substantial risk to the 27 public health and welfare; 28 (5) specific matters that were prepared for or during an executive 29 session of the board, and not subsequently made public by the corporation. 30 Sec. 42.50.230. Audits and examinations of corporation. (a) The legislative 31 auditor may cause the corporation to be audited in the manner and under the 01 conditions established by AS 24.20.271 for audits performed by the legislative audit 02 division. The legislative audit division has free access to all books and papers of the 03 corporation that relate to the business of the corporation and books and papers kept by 04 a director, officer, or employee relating to or upon which a record of the business of 05 the corporation is kept. The legislative audit division may summon witnesses and 06 administer oaths or affirmations in the examination of directors, officers, or employees 07 of the corporation or another person in relation to the affairs, transactions, and 08 conditions of the corporation, and may require and compel the production of records, 09 books, papers, contracts, or other documents by court order if not voluntarily 10 produced. At the direction of the Legislative Budget and Audit Committee under 11 AS 24.20.271, the legislative auditor may conduct an audit of the corporation. 12 (b) The legislative auditor and the auditor's employees may not disclose 13 information acquired by them in the course of an audit of the corporation concerning 14 the particulars of the business or affairs of a borrower of the corporation or another 15 person, unless the information is required to be disclosed by law or under a court 16 order. 17 (c) The corporation shall be audited annually by an independent outside 18 auditor. The legislative auditor may confer with the outside auditor and review the 19 work papers of the audit. The board shall engage the outside auditor, who shall be 20 responsible to the board. The corporation shall submit copies of each report of the 21 outside auditor to the legislative auditor within 30 days after receipt of the report by 22 the corporation. 23 Sec. 42.50.900. Definitions. In this chapter, unless the context otherwise 24 requires, 25 (1) "affiliated electric utilities" means an electric utility that is wholly 26 owned by one or more Greater Railbelt electric utilities, and by or through which one 27 or more Greater Railbelt electric utilities obtain electric power or electric generation or 28 transmission services; 29 (2) "board" means the board of directors of the corporation; 30 (3) "corporation" means the Greater Railbelt Energy and Transmission 31 Corporation; 01 (4) "electric power" means electric energy and capacity; 02 (5) "Greater Railbelt electric utilities" means 03 (A) Homer Electric Association, Inc.; 04 (B) the City of Seward, Electric Utility Department; 05 (C) Chugach Electric Association, Inc.; 06 (D) the Municipality of Anchorage d/b/a Municipal Light and 07 Power Utility; 08 (E) Matanuska Electric Association, Inc.; 09 (F) Golden Valley Electric Association, Inc.; and 10 (G) an entity holding a certificate of public convenience and 11 necessity issued by the Regulatory Commission of Alaska, that succeeds to the 12 entity named in (A) - (F) of this paragraph as the result of a merger or 13 acquisition; if two or more of the entities named in (A) - (F) of this paragraph 14 merge or otherwise combine under this subparagraph, the list of entities 15 comprising the Greater Railbelt electric utilities is reduced to include only the 16 succeeding entity; 17 (6) "Greater Railbelt region service territory" means the combined 18 service territories identified in the certificates of public convenience and necessity 19 issued by the Regulatory Commission of Alaska for each of the Greater Railbelt 20 electric utilities. 21 * Sec. 2. AS 42.50.900(5)(A), enacted by sec. 1 of this Act, is repealed. 22 * Sec. 3. AS 42.50.900(5)(B), enacted by sec. 1 of this Act, is repealed. 23 * Sec. 4. AS 42.50.900(5)(C), enacted by sec. 1 of this Act, is repealed. 24 * Sec. 5. AS 42.50.900(5)(D), enacted by sec. 1 of this Act, is repealed. 25 * Sec. 6. AS 42.50.900(5)(E), enacted by sec. 1 of this Act, is repealed. 26 * Sec. 7. AS 42.50.900(5)(F), enacted by sec. 1 of this Act, is repealed. 27 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSITION: TRANSITION AND FINANCE PLAN; REPORT. (a) The Greater 30 Railbelt Energy and Transmission Corporation shall organize and, jointly with the Alaska 31 Energy Authority, develop on or before January 19, 2010 a transition and finance plan to 01 enable the corporation to become an all requirements supplier of electric power and 02 transmission services to Greater Railbelt electric utilities. The transition and finance plan 03 must include the following: 04 (1) a phased commitment agreement among the Alaska Energy Authority, the 05 corporation, and one or more Greater Railbelt electric utilities that 06 (A) identifies commitments by the corporation, the state, and the 07 Greater Railbelt electric utilities, that will be necessary to enable the corporation to 08 achieve the corporate purpose stated in AS 42.50.010(b); and 09 (B) includes commitments by which the Greater Railbelt electric 10 utilities will, over time, contract to obtain from the corporation electric power and 11 transmission services; 12 (2) provisions to address the ability of the corporation and the Greater Railbelt 13 electric utilities to secure repayment of existing and new, intermediate and long-term 14 financing for the construction or acquisition of electric power generation and transmission 15 assets needed in the Greater Railbelt region service territory; the provisions made under this 16 paragraph must include provisions to ensure 17 (A) the repayment of debt associated with any electric power 18 generation or transmission asset transferred to the corporation; 19 (B) that adequate financing will be available for new electric power 20 generation or transmission asset projects that become necessary before the corporation 21 becomes fully functioning; and 22 (C) creation of a capital defeasance fund to secure repayment of new 23 or existing debt associated with new or existing electric power generation and 24 transmission assets; 25 (3) a plan for the development of the business organization of the corporation; 26 (4) a plan for the corporation to acquire ownership of, or operational control 27 over, Greater Railbelt region service territory electric power generation and transmission 28 assets necessary for the corporation to fulfill its corporate purposes; 29 (5) provisions to ensure that the transition 30 (A) does not negatively affect the ability of any Greater Railbelt 31 electric utility to operate and generate sufficient revenues to meet all obligations to 01 ratepayers, creditors, and lenders; and 02 (B) includes adequate mechanisms to provide for the financing and for 03 the construction or acquisition of generation and transmission assets needed in the 04 Greater Railbelt region service territory before the corporation becomes the all 05 requirements supplier of electric power and transmission services to Greater Railbelt 06 electric utilities; and 07 (6) a recommendation of proposed statutory changes to improve the ability of 08 the corporation to achieve the corporate purpose stated in AS 42.50.010(b), enacted by sec. 1 09 of this Act. 10 (b) The Greater Railbelt Energy and Transmission Corporation shall annually report 11 on the Internet to the governor, the legislature, members of the corporation, and the public on 12 progress made towards implementing the transition and financing plan. The annual report 13 must include a description of 14 (1) progress made and actions taken since the last annual report; 15 (2) actions taken to acquire existing electric power generation and 16 transmission assets; 17 (3) actions taken to plan for acquisition or construction of new electric power 18 generation and transmission assets, including project status relating to design, permitting, 19 construction, and financing; 20 (4) recommendations regarding financing for the construction or acquisition of 21 necessary electric power generation or transmission assets, which may include the acquisition 22 of those services from independent power producers; and 23 (5) other information requested by the governor or legislature. 24 (c) In this section, unless the context otherwise requires, 25 (1) "Alaska Energy Authority" means the authority created in AS 44.83.020; 26 (2) "corporation" has the meaning given in AS 42.50.900, enacted by sec. 1 of 27 this Act; 28 (3) "Greater Railbelt electric utilities" has the meaning given in AS 42.50.900, 29 enacted by sec. 1 of this Act; 30 (4) "Greater Railbelt Energy and Transmission Corporation" means the 31 corporation established in AS 42.50.010, enacted by sec. 1 of this Act; 01 (5) "Greater Railbelt region service territory" has the meaning given in 02 AS 42.50.900, enacted by sec. 1 of this Act. 03 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 REPORT ON PROPOSED LEGISLATION REGARDING THE REGULATORY 06 COMMISSION OF ALASKA AND THE GREATER RAILBELT ENERGY AND 07 TRANSMISSION CORPORATION. (a) The Greater Railbelt Energy and Transmission 08 Corporation shall on or before January 19, 2010 report to the governor and legislature with 09 proposed statutory changes regarding the scope of regulation by the Regulatory Commission 10 of Alaska over the corporation which shall include the following principles: 11 (1) rates for electric power sales and transmission will enable the full recovery 12 of the revenue requirement of the corporation based upon its reasonable costs; 13 (2) a single, system-wide rate for electric power sales and transmission will be 14 set for Greater Railbelt electric utilities that become all requirements purchasers of electric 15 power and transmission services from the corporation; 16 (3) rates for electric power sales and transmission will be adequate to meet all 17 financial covenants contained in mortgages or other lending instruments of the corporation; 18 (4) the principles and practices regarding accounts, records, and reports 19 contained in AS 42.05.451 - 42.05.501 will apply to ensure full disclosure of information 20 necessary to determine the revenue requirement of the corporation; 21 (5) statutory deadlines for the Regulatory Commission of Alaska to consider 22 and issue final orders on regulatory filings required from the corporation will be established; 23 (6) the scope of Regulatory Commission of Alaska review of the capital 24 management, cash flow, and capital improvement plans of the corporation will be established; 25 (7) a revenue requirement and rates for electric power sales and transmission 26 will be established annually by the corporation in a simplified process; any true-up amounts at 27 the end of each rate year will be credited or charged to Greater Railbelt electric utilities on a 28 pro rata basis; rate stabilization and renewal and replacement funds may be employed, and 29 included in the revenue requirement and rates for electric power sales and transmission. 30 (b) In this section, unless the context otherwise requires, 31 (1) "corporation" has the meaning given in AS 42.50.900, enacted by sec. 1 of 01 this Act; 02 (2) "Greater Railbelt electric utilities" has the meaning given in AS 42.50.900, 03 enacted by sec. 1 of this Act; 04 (3) "Greater Railbelt Energy and Transmission Corporation" means the 05 corporation established in AS 42.50.010, enacted by sec. 1 of this Act; 06 (4) "Regulatory Commission of Alaska" means the commission created in 07 AS 42.04.010. 08 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 LEGISLATIVE AUTHORIZATION TO CONVEY. (a) Notwithstanding 11 AS 44.83.396, the Alaska Energy Authority may convey to the Greater Railbelt Energy and 12 Transmission Corporation the Bradley Lake Hydroelectric Project and the Alaska Intertie, 13 under terms and conditions acceptable to the Alaska Energy Authority, under a phased 14 commitment agreement negotiated and entered among the Alaska Energy Authority, the 15 Greater Railbelt Energy and Transmission Corporation, and one or more Greater Railbelt 16 electric utilities. The Alaska Energy Authority may agree in the phased commitment 17 agreement to convey either the Bradley Lake Hydroelectric Project or the Alaska Intertie after 18 the Alaska Energy Authority obtains necessary approvals, or after outstanding bonds or other 19 outstanding debt associated with the Bradley Lake Hydroelectric Project or with the Alaska 20 Intertie are paid, refinanced, or defeased. Nothing in this section precludes the Alaska Energy 21 Authority from contracting with the Greater Railbelt Energy and Transmission Corporation 22 for the operation or maintenance of either the Bradley Lake Hydroelectric Project or the 23 Alaska Intertie before completion of a conveyance authorized by this section. 24 (b) In this section, unless the context otherwise requires, 25 (1) "Alaska Energy Authority" means the authority created in AS 44.83.020; 26 (2) "Alaska Intertie" means the electric power transmission intertie owned by, 27 or subject to contractual rights of, the Alaska Energy Authority, and located between the 28 Teeland substation near Knik, Alaska and Healy, Alaska; 29 (3) "Bradley Lake Hydroelectric Project" means the hydroelectric project 30 owned by the Alaska Energy Authority, and licensed as Project Number 8221 under 31 16 U.S.C. 792 - 823c (Federal Power Act); 01 (4) "Greater Railbelt electric utilities" has the meaning given in AS 42.50.900, 02 enacted by sec. 1 of this Act; 03 (5) "Greater Railbelt Energy and Transmission Corporation" means the 04 corporation established in AS 42.50.010, enacted by sec. 1 of this Act; 05 (6) "phased commitment agreement" means a phased commitment agreement 06 among the Alaska Energy Authority, the Greater Railbelt Energy and Transmission 07 Corporation, and one or more Greater Railbelt electric utilities, under which Greater Railbelt 08 electric utilities will, over time, contract to obtain from the Greater Railbelt Energy and 09 Transmission Corporation electric power and transmission services, to be developed under 10 sec. 8 of this Act; 11 * Sec. 11. The uncodified law of the State of Alaska enacted by sec. 10 of this Act, is 12 repealed. 13 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 CONDITIONAL EFFECT. (a) The following applicable sections of this Act take 16 effect only if the listed utility fails to deliver to the Alaska Energy Authority on or before 17 July 31, 2010 a letter of intent in the form and substance acceptable to the Alaska Energy 18 Authority, under which the listed utility commits to enter a phased commitment agreement 19 among the Alaska Energy Authority, the Greater Railbelt Energy and Transmission 20 Corporation, and the listed utility. The listed utilities and applicable sections of this Act are as 21 follows: 22 (1) Homer Electric Association, Inc., sec. 2 of this Act; 23 (2) the City of Seward, Electric Utility Department, sec. 3 of this Act; 24 (3) Chugach Electric Association, Inc., sec. 4 of this Act; 25 (4) the Municipality of Anchorage d/b/a Municipal Light and Power Utility, 26 sec. 5 of this Act; 27 (5) Matanuska Electric Association, Inc., sec. 6 of this Act; 28 (6) Golden Valley Electric Association, Inc., sec. 7 of this Act. 29 (b) If none of the listed utilities in (a) of this section meet the conditions described in 30 (a) of this section, sec. 11 of this Act takes effect. 31 (c) 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) and (b) of this 02 section are met. 03 (d) 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 electric utilities" has the meaning given in AS 42.50.900, 06 enacted by sec. 1 of this Act; 07 (3) "Greater Railbelt Energy and Transmission Corporation" means the 08 corporation established in AS 42.50.010, enacted by sec. 1 of this Act; 09 (4) "phased commitment agreement" means a phased commitment agreement 10 among the Alaska Energy Authority, the Greater Railbelt Energy and Transmission 11 Corporation, and one or more Greater Railbelt electric utilities, under which Greater Railbelt 12 electric utilities will, over time, contract to obtain from the Greater Railbelt Energy and 13 Transmission Corporation electric power and transmission services, to be developed under 14 sec. 8 of this Act. 15 * Sec. 13. This Act takes effect immediately under AS 01.10.070(c).