CSSB 123(RBE) am H: "An Act relating to electric and telephone cooperatives; relating to telephone service and related telecommunications services; 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."
00 CS FOR SENATE BILL NO. 123(RBE) am H 01 "An Act relating to electric and telephone cooperatives; relating to telephone service 02 and related telecommunications services; relating to the creation and regulation of 03 electric reliability organizations; relating to participation of electric utilities in electric 04 reliability organizations; relating to duties of electric reliability organizations; providing 05 for integrated resource planning; requiring project preapproval for certain 06 interconnected large energy facilities; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 10.15.005 is amended to read: 09 Sec. 10.15.005. Purposes for which cooperatives may be organized. A 10 cooperative may be organized under this chapter for any lawful purpose, except for the 11 purpose of banking or insurance or the furnishing of electric or telephone or a related 12 telecommunications service. 13 * Sec. 2. AS 10.15.575(a) is amended to read:
01 (a) A person other than a cooperative association incorporated under this 02 chapter or a previous law of the state may not use the term "cooperative," or any 03 variation of the term, as part of its corporate or other business name or title. However, 04 this section does not apply to cooperatives organized to generate and transmit electric 05 energy and power or to furnish electric or telephone or a related telecommunications 06 service. 07 * Sec. 3. AS 10.15.585 is amended to read: 08 Sec. 10.15.585. Application of chapter. This chapter applies to the fullest 09 extent permitted by the laws and constitution of the United States and of the state to all 10 existing cooperative associations incorporated under a previously existing law of the 11 state relating to incorporation of cooperative associations. However, this section does 12 not apply to cooperatives organized to generate and transmit electric energy and power 13 or to furnish electric or telephone or a related telecommunications service. 14 * Sec. 4. AS 10.25.010(a) is amended to read: 15 (a) Except as provided in (b) of this section, an electric or telephone 16 cooperative may 17 (1) sue and be sued in its corporate name; 18 (2) have perpetual existence; 19 (3) adopt a corporate seal and alter it; 20 (4) construct, buy, lease, or otherwise acquire, and equip, maintain, 21 and operate, and sell, assign, convey, lease, mortgage, pledge, or otherwise dispose of 22 or encumber lands, buildings, structures, electric or telephone lines or systems, dams, 23 plants and equipment, and any other real or personal property, tangible or intangible, 24 that is necessary, convenient, or appropriate to accomplish the purpose for which the 25 cooperative is organized; 26 (5) buy, lease, or otherwise acquire, and use, and exercise and sell, 27 assign, convey, mortgage, pledge or otherwise dispose of or encumber franchises, 28 rights, privileges, licenses, and easements; 29 (6) borrow money and otherwise contract indebtedness, and issue 30 evidences of indebtedness, and secure the payment of the indebtedness by mortgage, 31 pledge, or deed of trust of, or any other encumbrance upon its real or personal
01 property, assets, franchises, or revenues; 02 (7) construct, maintain, and operate electric transmission and 03 distribution lines [,] or telephone or related telecommunications service lines along, 04 on [UPON], under and across publicly owned lands and public thoroughfares, 05 including, without limitation, all roads, highways, streets, alleys, bridges, and 06 causeways; 07 (8) exercise the power of eminent domain; 08 (9) become a member of other cooperatives or corporations or own 09 stock in them; 10 (10) conduct its business and exercise its powers inside or outside the 11 state; 12 (11) adopt, amend, and repeal bylaws; 13 (12) make all contracts necessary, convenient, or appropriate for the 14 full exercise of its powers; 15 (13) make donations for the public welfare or for charitable, scientific, 16 or educational purposes; 17 (14) do and perform any other act and thing, and have and exercise any 18 other power that may be necessary, convenient, or appropriate to accomplish the 19 purpose for which the cooperative is organized. 20 * Sec. 5. AS 10.25.030(a) is amended to read: 21 (a) A telephone cooperative may 22 (1) furnish, improve, and expand telephone or [SERVICE AND] 23 related telecommunications service to its members [,] and to other users not in excess 24 of 10 percent of the number of its members; however, telephone or a related 25 telecommunications service may be made available by a cooperative through 26 interconnection of facilities to any number of subscribers of other telephone or 27 related telecommunications systems, and through pay stations to any number of 28 users, and a cooperative that [WHICH] acquires existing telephone facilities or 29 related telecommunications facilities may continue service to persons, not exceeding 30 40 percent of the number of its members, who are already receiving service from the 31 facilities without requiring them to become members, and these persons may become
01 members on [UPON] terms as may be prescribed in the bylaws; 02 (2) connect and interconnect its telephone or related 03 telecommunications service lines, facilities, or systems with other telephone or 04 related telecommunications service lines, facilities, or systems; 05 (3) make its facilities available to persons furnishing telephone or 06 related telecommunications service inside or outside the state. 07 * Sec. 6. AS 10.25.040(a) is amended to read: 08 (a) The name of a cooperative must include the words "electric," [OR] 09 "telephone," "telecommunications," or "telecom," as appropriate to its purpose, and 10 "cooperative" or "association," and the abbreviation "Inc." ["INC."] 11 * Sec. 7. AS 10.25.080(a) is amended to read: 12 (a) Each incorporator of a cooperative shall be a member of the cooperative or 13 of another cooperative that is a member of it. A person may not become a member 14 unless that person agrees to use electric energy, [OR] telephone or a related 15 telecommunications service, or other services furnished by the cooperative when they 16 are made available through its facilities. 17 * Sec. 8. AS 10.25.090(a) is amended to read: 18 (a) An annual meeting of the members of a cooperative shall be conducted as 19 [HELD AT THE TIME AND PLACE] provided in the bylaws of the cooperative. An 20 annual meeting of the members of a cooperative that has been divided into districts as 21 provided for in AS 10.25.190 may consist of separate annual meetings of the members 22 of each district. Unless prohibited by the articles or bylaws of the cooperative, the 23 members of a cooperative may conduct an annual meeting by teleconference or 24 another means of communication that ensures all members participating can 25 hear each other during the meeting. 26 * Sec. 9. AS 10.25.090(c) is amended to read: 27 (c) An annual meeting of district delegates of a cooperative shall be 28 conducted as [HELD AT THE TIME AND PLACE] provided in the bylaws of the 29 cooperative. 30 * Sec. 10. AS 10.25.100 is amended to read: 31 Sec. 10.25.100. Notice of meetings. Except as otherwise provided in this
01 chapter, or the articles or bylaws of a cooperative, written notice stating the time 02 and place of each meeting of the members or district delegates shall be given to each 03 member or district delegate, in person [EITHER PERSONALLY] or by mail, 04 electronic mail, or text message, not less than 15 days nor [OR] more than 60 days 05 before the date of the meeting. Notice of a special meeting of the members, together 06 with notice of the purpose for which the meeting is called, shall be given to each 07 member or district delegate [, EITHER] personally or by mail, electronic mail, or 08 text message, not less than 90 days nor [OR] more than 120 days before the date of 09 the meeting. If mailed, notice is considered given when the notice [IT] is deposited in 10 the United States mail with postage prepaid addressed to the member or district 11 delegate at the address of the member or delegate as the address [IT] appears on the 12 records of the cooperative. When sent by text or electronic mail, notice is 13 considered given when the notice is sent to the member's telephone number, if the 14 telephone is capable of receiving text messages, or the electronic mailing address 15 on record with the cooperative. 16 * Sec. 11. AS 10.25.110(a) is amended to read: 17 (a) Unless the bylaws prescribe the presence of a greater percentage or number 18 of the members for a quorum, a quorum for the transaction of business at all meetings 19 of the members of a cooperative or the members of a district of a cooperative having 20 not more than 1,000 members is five percent of all members [, PRESENT IN 21 PERSON], and a quorum for the transaction of business of the members of a 22 cooperative or the members of a district of a cooperative having more than 1,000 23 members is 50 members [, PRESENT IN PERSON]. If less than a quorum is present, 24 or is considered present under (c) of this section, at a meeting, a majority of those 25 present, or considered present under (c) of this section [IN PERSON] may adjourn 26 the meeting from time to time without further notice. 27 * Sec. 12. AS 10.25.110 is amended by adding a new subsection to read: 28 (c) Unless prohibited by the articles or bylaws, a member or delegate who 29 votes on a matter by electronic communication received or mail postmarked before a 30 meeting begins is considered to have attended the meeting for the matter on which the 31 member or delegate voted.
01 * Sec. 13. AS 10.25.175(a) is amended to read: 02 (a) A meeting of the board of directors may be attended by members of the 03 cooperative. Except when voice votes are authorized, a vote shall be conducted in such 04 a manner that the members may know the vote of each person entitled to vote. The 05 board of directors may conduct a meeting by teleconference, or another means of 06 communication that ensures all participating directors can hear each other 07 during the meeting, [OR SIMILAR COMMUNICATIONS EQUIPMENT] if the 08 board gives reasonable notice of the meeting and if members of the cooperative are 09 able to attend the meeting sites and hear the meeting. This section applies only to a 10 meeting at which a quorum of the board participates. 11 * Sec. 14. AS 10.25.175(c) is amended to read: 12 (c) The following excepted subjects may be discussed in an executive session: 13 (1) matters the immediate knowledge of which would clearly have an 14 adverse effect on the finances of the cooperative; 15 (2) subjects that tend to prejudice the reputation and character of a 16 person; however, the person may request a public discussion; 17 (3) matters discussed with an attorney for the cooperative, the 18 immediate knowledge of which could have an adverse effect on the legal position of 19 the cooperative; 20 (4) personnel matters. 21 * Sec. 15. AS 10.25.290(a) is amended to read: 22 (a) A corporation organized under the laws of the state and supplying or 23 having the corporate power to supply electric energy [,] or to furnish telephone or a 24 related telecommunications service [,] may be converted into a cooperative by 25 complying with the requirements of this section and thereupon becomes subject to this 26 chapter as if originally organized under this chapter. 27 * Sec. 16. AS 10.25.430 is amended to read: 28 Sec. 10.25.430. Validity of mortgage under Rural Electrification Act [OF 29 1936]. A mortgage made by a cooperative organized under this chapter to the United 30 States of America, or an agency or instrumentality of it, to secure indebtedness 31 incurred under 7 U.S.C. 901 - 950bb-2 [7 U.S.C. 901 - 950B] (Rural Electrification
01 Act [OF 1936]), as amended, is not void as against creditors of the mortgagor and 02 subsequent purchasers and encumbrancers of the property in good faith for value 03 because the mortgage is not accompanied by an affidavit of the parties to it, or an 04 affidavit of the agent or attorney-in-fact of a party to it, that the mortgage is made in 05 good faith to secure the amount named, and without a design to hinder, delay or 06 defraud creditors. A mortgage made by a cooperative organized under this chapter to 07 the United States of America, or an agency or instrumentality of it to secure 08 indebtedness incurred under 7 U.S.C. 901 - 950bb-2 [7 U.S.C. 901 - 950B] (Rural 09 Electrification Act [OF 1936]), as amended, need not set out [FORTH] the date upon 10 which the indebtedness secured by it becomes due. 11 * Sec. 17. AS 10.25.460 is amended to read: 12 Sec. 10.25.460. Registered office and registered agent. Each cooperative 13 shall have and continuously maintain in the state a registered 14 (1) office, which may be, but need not be, the same as the location of 15 the principal office; 16 (2) agent who is either an individual resident in the state [AND] 17 whose business office is identical with the registered office or a domestic or foreign 18 corporation authorized to transact business in the state whose business office is 19 identical with the registered office. 20 * Sec. 18. AS 10.25.810 is amended to read: 21 Sec. 10.25.810. Purpose. Cooperative, nonprofit, membership corporations 22 may be organized under this chapter for the purpose of supplying electric energy or 23 telephone or a related telecommunications service and promoting and extending the 24 use of these services. 25 * Sec. 19. AS 10.25.820 is amended to read: 26 Sec. 10.25.820. Chapter extended to existing cooperatives. This chapter 27 applies to all nonprofit cooperatives organized under any other law of the state for the 28 purpose of supplying electric energy and power, or telephone or a related 29 telecommunications service, to its members, or for the purpose of promoting and 30 extending the use of electric energy and power [,] or telephone or a related 31 telecommunications service. These cooperatives are subject to this chapter as if
01 originally organized under it. 02 * Sec. 20. AS 10.25.840 is amended by adding a new paragraph to read: 03 (6) "related telecommunications service" means 04 (A) the transmission and reception of messages, impressions, 05 pictures, and signals by means of electricity, electromagnetic waves, or any 06 other source of energy, force variations, or impulses, whether conveyed by 07 cable, wire, radiated through space, or transmitted through other media; or 08 (B) a service capable of electronically generating, acquiring, 09 storing, transforming, processing, retrieving, utilizing, or making available 10 information, through the use of broadband Internet access, data center services, 11 information technology, or other technology services. 12 * Sec. 21. AS 42.05 is amended by adding new sections to read: 13 Article 9A. Electric Reliability Organizations, Plans, and Standards. 14 Sec. 42.05.760. Electric reliability organizations. (a) An electric utility must 15 participate in an electric reliability organization if the utility operates in an 16 interconnected electric energy transmission network served by an electric reliability 17 organization certificated by the commission. The commission may not require an 18 electric reliability organization for an interconnected bulk-electric system if all of the 19 load-serving entities operating in the interconnected bulk-electric system are exempt 20 under AS 42.05.711(b). 21 (b) A person may submit to the commission an application for certification as 22 an electric reliability organization for an interconnected bulk-electric system. The 23 commission may certificate one electric reliability organization for each 24 interconnected electric energy transmission network. The commission may certificate 25 an electric reliability organization if the commission determines that the electric 26 reliability organization has the ability to comply with AS 42.05.762. 27 (c) The commission shall immediately notify the interconnected load-serving 28 entities within a new or existing interconnected bulk-electric system of the 29 requirements of this section. 30 (d) Notwithstanding the requirements in (e) of this section, if all load-serving 31 entities within an interconnected bulk-electric system petition the commission for an
01 exemption from the requirement to establish an electric reliability organization for the 02 interconnected electric energy transmission network, the commission may waive the 03 requirement to form an electric reliability organization for that interconnected electric 04 energy transmission network. 05 (e) The commission shall form and certificate an electric reliability 06 organization for an interconnected bulk-electric system under this section if, within 07 (1) 90 days after the commission notifies the interconnected load- 08 serving entities under (c) of this section, no person has applied for certification as an 09 electric reliability organization for that interconnected bulk-electric system; or 10 (2) 270 days after the commission notifies the interconnected load- 11 serving entities under (c) of this section, the commission has not certificated an 12 electric reliability organization for that interconnected bulk-electric system. 13 (f) The commission may certificate an electric reliability organization for an 14 interconnected electric energy transmission network that is not an interconnected bulk- 15 electric system if 16 (1) one or more load-serving entities within that network successfully 17 petition the commission to find that an electric reliability organization should be 18 established for the network; and 19 (2) a person applies for certification as an electric reliability 20 organization for the network. 21 Sec. 42.05.762. Duties of an electric reliability organization. An electric 22 reliability organization shall 23 (1) develop reliability standards that provide for an adequate level of 24 reliability of an interconnected electric energy transmission network; 25 (2) develop integrated resource plans under AS 42.05.780(a); 26 (3) establish rules to 27 (A) ensure that the directors of the electric reliability 28 organization and the electric reliability organization act independently from 29 users, owners, and operators of the interconnected electric energy transmission 30 network; 31 (B) equitably allocate reasonable dues, fees, and other charges
01 among all load-serving entities connected to the interconnected electric energy 02 transmission network for all activities under AS 42.05.760 - 42.05.790; 03 (C) provide fair and impartial procedures for the enforcement 04 of reliability standards; 05 (D) provide for reasonable notice and opportunity for public 06 comment, due process, openness, and balancing of interests in exercising its 07 duties; and 08 (4) be governed by a board that 09 (A) includes as nonvoting members the chair of the 10 commission or the chair's designee and the attorney general or the attorney 11 general's designee; and 12 (B) is formed as 13 (i) an independent board; 14 (ii) a balanced stakeholder board; or 15 (iii) a combination independent and balanced 16 stakeholder board. 17 Sec. 42.05.765. Reliability standards. (a) An electric reliability organization 18 shall file each reliability standard or modification to a reliability standard with the 19 commission as a new or revised tariff provision. All users, owners, and operators of an 20 interconnected electric energy transmission network served by an electric reliability 21 organization, including a user, owner, or operator that is exempt from other regulation 22 under AS 42.05.711 or another provision of this chapter, shall comply with reliability 23 standards contained in a tariff that is approved by the commission. The commission 24 may enforce a reliability standard approved under this section. A reliability standard 25 approved under this section 26 (1) shall provide for the reliable operation of the interconnected 27 electric energy transmission network or of an interconnected electric energy 28 transmission network facility; 29 (2) may provide for 30 (A) protection from a cybersecurity incident; 31 (B) facility security;
01 (C) additions or modifications to an interconnected bulk- 02 electric system facility to the extent necessary to provide for reliable operation 03 of the interconnected electric energy transmission network; 04 (3) may result in, but may not be designed for the purpose of, requiring 05 enlargement of interconnected bulk-electric system facilities or construction of new 06 transmission capacity or generation capacity. 07 (b) The commission may, after public notice, approve a proposed reliability 08 standard or modification to a reliability standard submitted by an electric reliability 09 organization. The commission shall determine whether the proposed standard or 10 modification is just, reasonable, not unduly discriminatory or preferential, and in the 11 public interest before approving the standard or modification. If, after public notice 12 and a hearing, the commission determines that a proposed reliability standard or 13 modification to a reliability standard submitted by an electric reliability organization 14 should be changed, the commission shall return the standard to the electric reliability 15 organization for timely modification and resubmission, consistent with the 16 commission's order. The commission may modify a resubmitted standard if the 17 commission determines that the standard is inconsistent with the commission's order 18 or the public interest. A standard approved under this subsection satisfies the 19 requirements of AS 42.05.291(c). 20 (c) The commission may, on its own motion or upon complaint, order an 21 electric reliability organization to submit to the commission a proposed reliability 22 standard or modification to a reliability standard that addresses a specific matter. 23 (d) If a reliability standard adopted under this section conflicts with a function, 24 rule, tariff, rate schedule, or agreement that has also been accepted, approved, adopted, 25 or ordered by the commission, a user, owner, or operator shall comply with the 26 function, rule, tariff, rate schedule, or agreement until the conflict is resolved by the 27 commission. 28 (e) If, as a condition of a contract with the United States Department of 29 Defense, a user, owner, or operator is subject to a federal standard, rule, or function 30 that conflicts with a reliability standard adopted under this section, the user, owner, or 31 operator shall comply with the federal standard, rule, or function until the conflict is
01 resolved by the commission. The commission may not resolve the conflict in a manner 02 that prevents the user, owner, or operator from fulfilling the contract with the United 03 States Department of Defense. 04 (f) The commission may direct an electric reliability organization to conduct 05 assessments of the reliability and adequacy of the interconnected electric energy 06 transmission network. 07 Sec. 42.05.767. Electric reliability organization rules; approval. An electric 08 reliability organization shall file with the commission each proposed rule or proposed 09 rule change, along with an explanation of the basis and purpose of the proposed rule or 10 proposed rule change. The commission may, on its own motion or upon complaint, 11 propose a change to the rules of an electric reliability organization. A rule change 12 proposed by the commission takes effect upon a finding by the commission, after 13 notice and opportunity for public comment, that the rule change is just, reasonable, not 14 unduly discriminatory or preferential, and is in the public interest. 15 Sec. 42.05.770. Regulations. The commission shall adopt regulations 16 governing electric reliability organizations, reliability standards, and modifications to 17 reliability standards consistent with this section. Regulations under AS 42.05.760 - 18 42.05.790 must 19 (1) require that an electric reliability organization's tariff include 20 (A) standards for nondiscriminatory open access transmission 21 and interconnection; 22 (B) standards for transmission system cost recovery; 23 (2) provide a process to identify and resolve conflicts between a 24 reliability standard and a function, rule, tariff, rate schedule, or agreement that has 25 been accepted, approved, adopted, or ordered by the commission; 26 (3) allow an electric reliability organization to recover its costs through 27 surcharges added to the rate for each participating load-serving entity. 28 Sec. 42.05.772. Duties of load-serving entities. All load-serving entities, 29 including load-serving entities otherwise exempt from regulation under this chapter, in 30 an interconnected bulk-electric system served by an electric reliability organization are 31 subject to the electric reliability organization's tariff on file with the commission.
01 Sec. 42.05.775. Penalties. (a) An electric reliability organization may impose 02 a penalty on a user, owner, or operator of an interconnected electric energy 03 transmission network for a violation of a reliability standard if, after notice and a 04 hearing, the electric reliability organization 05 (1) finds that the user, owner, or operator has violated a reliability 06 standard; and 07 (2) files notice of the proposed penalty and the record of the 08 proceeding with the commission at least 30 days before imposition of the penalty. 09 (b) The commission may, on its own motion or upon complaint, order a user, 10 owner, or operator of an interconnected electric energy transmission network to 11 comply with a reliability standard and impose a penalty against the user, owner, or 12 operator if the commission finds, after notice and a hearing, that the user, owner, or 13 operator has engaged or is about to engage in an act or practice that violates a 14 reliability standard. 15 (c) A user, owner, or operator may appeal to the commission a penalty 16 imposed under (a) of this section. The commission may, on its own motion, review a 17 penalty imposed under (a) of this section. The commission shall, after notice and a 18 hearing, issue an order affirming, modifying, reinstating, or revoking the penalty or 19 remand the penalty to the electric reliability organization for further proceedings. 20 Unless otherwise ordered by the commission, a penalty shall remain in effect during 21 proceedings under this subsection. The commission shall expedite proceedings under 22 this subsection. 23 (d) A penalty imposed under this section must bear a reasonable relation to the 24 seriousness of the violation and take into consideration the effort of a user, owner, or 25 operator to remedy the violation in a timely manner. 26 Sec. 42.05.780. Integrated resource planning. (a) An electric reliability 27 organization shall file with the commission in a petition for approval an integrated 28 resource plan for meeting the reliability requirements of all customers within its 29 interconnected electric energy transmission network in a manner that provides the 30 greatest value, consistent with the load-serving entities' obligations. An integrated 31 resource plan must contain an evaluation of the full range of cost-effective means for
01 load-serving entities to meet the service requirements of all customers, including 02 additional generation, transmission, battery storage, and conservation or similar 03 improvements in efficiency. An integrated resource plan must include options to meet 04 customers' collective needs in a manner that provides the greatest value, consistent 05 with the public interest, regardless of the location or ownership of new facilities or 06 conservation activities. 07 (b) The commission shall, after public notice and review of the process used to 08 develop an integrated resource plan, approve or modify an integrated resource plan 09 filed under (a) of this section, consistent with the public interest. The commission shall 10 determine whether the petition is complete, has been publicly noticed, and is 11 consistent with the commission's regulations and orders. The commission may reject 12 all or part of a petition that does not comply with the commission's form or filing 13 regulations. Within 45 days after receipt, the commission shall approve the petition or 14 suspend the petition to an investigation docket. If a petition is not suspended to an 15 investigation docket within 45 days, the petition is considered approved. If, after 16 public notice and a hearing, the commission concludes that the plan requires 17 modification, the commission shall return the plan to the electric reliability 18 organization for timely modification and refiling, consistent with the commission's 19 order. The commission may modify a refiled integrated resource plan if the 20 commission determines that the plan is inconsistent with the commission's order or the 21 public interest. 22 (c) The commission may include in a public utility's rates 23 (1) the cost of resources acquired in accordance with an integrated 24 resource plan adopted under this section; 25 (2) cost-effective expenditures for improving the efficiency with which 26 a public utility provides and its customers use utility services; and 27 (3) the cost of a utility to comply with the planning requirements of 28 this section, including planning costs and portfolio development costs. 29 (d) The commission shall adopt regulations governing the filing of a plan 30 under this section, including the content of a plan, time for filing a plan, criteria for 31 determining cost-effectiveness and greatest value, and other criteria as determined by
01 the commission. 02 (e) In this section, 03 (1) "planning costs" means the costs of evaluating the future demand 04 for services and alternative methods of satisfying future demand; 05 (2) "portfolio development costs" means the costs of preparing a 06 resource in a portfolio for timely acquisition of the resource. 07 Sec. 42.05.785. Project preapproval for large energy facilities. (a) A public 08 utility, including a public utility that is exempt from other regulation under 09 AS 42.05.711 or another provision of this chapter, that is interconnected with an 10 interconnected electric energy transmission network served by an electric reliability 11 organization certificated by the commission may not construct a large energy facility 12 unless the commission determines that the facility 13 (1) is necessary to the interconnected electric energy transmission 14 network with which it would be interconnected; 15 (2) complies with reliability standards; and 16 (3) would, in a cost-effective manner, meet the needs of a load-serving 17 entity that is substantially served by the facility. 18 (b) Unless the commission finds otherwise by clear and convincing evidence, 19 a large energy facility that was included in the most recent integrated resource plan 20 approved under AS 42.05.780 is considered to satisfy the requirements of (a) of this 21 section. 22 (c) The commission may not require preapproval for a 23 (1) project for refurbishment or capitalized maintenance; 24 (2) hydropower project licensed by the Federal Energy Regulatory 25 Commission before September 30, 2016. 26 (d) The commission shall adopt regulations 27 (1) governing project preapproval; 28 (2) defining refurbishment and capitalized maintenance; 29 (3) maintaining municipal jurisdiction over local planning decisions; 30 and 31 (4) addressing projects undertaken before integrated resource plan
01 approval for an interconnected electric energy transmission network. 02 (e) In this section, "large energy facility" means 03 (1) an electric power generating plant or combination of plants at a 04 single site with a combined capacity of 15,000 kilowatts or more with transmission 05 lines that directly interconnect the plant with the transmission system; 06 (2) a high-voltage, above-ground transmission line that 07 (A) has a capacity of 69 kilovolts or more; and 08 (B) is longer than 10 miles; 09 (3) a high-voltage submarine or underground cable that 10 (A) has a capacity of 69 kilovolts or more; and 11 (B) is longer than three miles; 12 (4) an energy storage device or combination of devices at a single site 13 with a combined capacity of 15,000 kilowatts and one hour or more of energy storage 14 that directly connects with the interconnected bulk-electric system; and 15 (5) a reactive compensation device or combination of devices at a 16 single site with a combined reactive capability of 15,000 kilovars or more with a step- 17 up device to regulate interconnected bulk-electric system voltage. 18 Sec. 42.05.790. Definitions. In AS 42.05.760 - 42.05.790, 19 (1) "cybersecurity incident" means a malicious act or suspicious event 20 that disrupts or attempts to disrupt the security of data or the operation of 21 programmable electronic devices and communication networks, including hardware 22 and software that are essential to the reliable operation of the interconnected electric 23 energy transmission network; 24 (2) "electric reliability organization" means an organization that is 25 certificated by the commission under AS 42.05.760; 26 (3) "electric utility" means a public utility that provides electricity 27 service; 28 (4) "interconnected bulk-electric system" means an interconnected 29 electric energy transmission network that includes two or more load-serving entities, 30 at least one of which is subject to the provisions of AS 42.05.291; 31 (5) "interconnected electric energy transmission network" means a
01 network of interconnected electrical generation resources, transmission lines, 02 interconnections, and associated equipment operated at voltages of 69 kilovolts or 03 more, operating in a geographic area that are synchronized so that the failure of one or 04 more of the components may adversely affect the ability of the operators of other 05 components within the system to maintain reliable operation of the facilities within the 06 control of the operators; 07 (6) "load-serving entity" means an electric utility that has a service 08 obligation to distribute power to more than 10 customers that receive invoices directly 09 from the entity; 10 (7) "reliable operation" means operating the elements of the 11 interconnected electric energy transmission network within equipment and electric 12 system thermal, voltage, and stability limits so that instability, uncontrolled separation, 13 or cascading failures of the system will not occur as a result of a sudden disturbance, 14 including a cybersecurity incident, or unanticipated failure of system elements. 15 * Sec. 22. AS 10.25.030(b) and 10.25.400(e) are repealed. 16 * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 TRANSITION: REGULATIONS. On or before July 1, 2021, the Regulatory 19 Commission of Alaska shall adopt regulations necessary to implement the changes made by 20 sec. 21 of this Act. The regulations take effect under AS 44.62 (Administrative Procedure 21 Act), but not before the effective date of the law implemented by the regulation. 22 * Sec. 24. Sections 1 - 20, 22, and 23 of this Act takes effect immediately under 23 AS 01.10.070(c). 24 * Sec. 25. Except as provided in sec. 24 of this Act, this Act takes effect July 1, 2021.