HB 163: "An Act directing the sale of certain power projects acquired or constructed by the Alaska Industrial Development and Export Authority and the Alaska Energy Authority by the State of Alaska to a joint action agency composed of three or more Railbelt electric utilities; and providing for an effective date."
00 HOUSE BILL NO. 163 01 "An Act directing the sale of certain power projects acquired or constructed by the 02 Alaska Industrial Development and Export Authority and the Alaska Energy Authority 03 by the State of Alaska to a joint action agency composed of three or more Railbelt 04 electric utilities; 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 PURPOSE AND FINDINGS. (a) The purpose of this Act is to promote and support 09 the voluntary creation of a unified generation and transmission system for the electrically 10 interconnected Railbelt area by authorizing the transfer of ownership of certain state-owned 11 electric power projects to a joint action agency formed by three or more Railbelt electric 12 utilities under AS 42.45.300 and 42.45.310. 13 (b) The legislature finds that 14 (1) AS 42.45.310 was enacted specifically to allow creation of joint action
01 agencies formed by two or more public utilities that purchase power from a power project 02 acquired or constructed as part of the former energy program for Alaska and owned by the 03 Alaska Energy Authority under AS 44.83.396; 04 (2) all certificated Railbelt area interconnected electric utilities are public 05 utilities that purchase power from a power project acquired or constructed as part of the 06 former energy program for Alaska and owned by the Alaska Energy Authority under 07 AS 44.83.396; 08 (3) transfer of the Bradley Lake hydroelectric project, the Alaska intertie, and 09 the Healy clean coal project to a joint action agency formed voluntarily under AS 42.45.300 10 and 42.45.310 is the most effective way to promote creation of a unified system for the 11 operation of existing and future electrical energy generation and transmission infrastructure of 12 the electrically interconnected Railbelt area and should facilitate integrated resource planning 13 and development and implementation of a rational, long-term energy plan designed to reliably 14 meet future electric power needs; 15 (4) because the Railbelt area utilities currently have responsibility for 16 operations of the Bradley Lake hydroelectric project and the Alaska intertie project, transfer 17 of the projects to a joint action agency will increase the efficient operation of those facilities; 18 (5) transferring ownership of existing state-owned Railbelt area generation 19 and transmission assets to a joint action agency could benefit the state by freeing up bonding 20 capacity and relieving the state of significant financial risks and obligations; 21 (6) experience with the Four Dam Pool indicates that creation of a voluntary 22 joint action agency will allow the members to cooperatively develop fair pricing for electric 23 energy produced by joint action agency assets; 24 (7) joint action agency ownership of key Railbelt area power projects will act 25 as a catalyst to expedite upgrading and extension of the transmission infrastructure to 26 communities not currently part of the electrically interconnected Railbelt area. 27 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 SALE OF ELECTRIC POWER PROJECTS. (a) The Alaska Energy Authority is 30 directed under AS 42.45.310(a) to negotiate the transfer of ownership of the state-owned 31 electric power projects known as the Bradley Lake hydroelectric project, the Alaska intertie,
01 and the Healy clean coal power project to a joint action agency formed under AS 42.45.300 02 and AS 42.45.310 by three or more interconnected certificated Railbelt area municipally 03 owned electric utilities or electric cooperatives formed under AS 10.25. 04 (b) An ownership transfer under (a) of this section must include assignment of the 05 obligations and rights of the state under the Bradley Lake Power Sales Agreement and the 06 Alaska Intertie Agreement. This Act does not affect any other party's rights or obligations 07 under those agreements. 08 (c) The full and exclusive compensation to the state, including the Alaska Industrial 09 Development and Export Authority, for the transfer of the three projects shall be assumption 10 by the joint action agency described in (a) of this section of all existing outstanding Bradley 11 Lake hydroelectric project construction debt, and an appropriation to the Alaska Industrial 12 Development and Export Authority for the Healy clean coal project debt. 13 * Sec. 3. This Act takes effect July 1, 2005.