HCR 7: Requesting that the Alaska Energy Authority develop an infrastructure plan to reduce power costs in the state.

00 HOUSE CONCURRENT RESOLUTION NO. 7 01 Requesting that the Alaska Energy Authority develop an infrastructure plan to reduce 02 power costs in the state. 03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 WHEREAS, because Alaska gained statehood in 1959, the state was precluded from 05 benefiting from earlier efforts made by the federal government to invest in rural electrification 06 throughout regions of the lower 48 states; and 07 WHEREAS the state's electrical grids are not interconnected to those in other states 08 or territories, and many communities in the state have isolated microgrids; and 09 WHEREAS the isolation of many electric systems throughout the state means that 10 consumers in communities served by those systems cannot benefit from a reduction in energy 11 bills by utilizing lower-cost power from other areas of the state; and 12 WHEREAS the average retail price of electricity in the state's rural communities is 13 the highest in the United States; and 14 WHEREAS more than 300 of the state's rural communities are not connected to the 15 railbelt electrical grid or state road system; and 16 WHEREAS, of the state's 710,000 residents, 20 percent live in rural communities

01 spread over 500,000 square miles; and 02 WHEREAS rural communities have virtually no access to natural gas as an energy 03 source for heating and electricity, relying instead primarily on diesel fuel, wood, and 04 renewable energy; and 05 WHEREAS diesel fuel and gasoline used for heating, electricity, and transportation 06 typically costs from 50 to 100 percent more in communities off the road system compared to 07 those on the road system; and 08 WHEREAS high energy costs for heating, electricity, and transportation have a 09 multiplying effect, increasing the cost of all goods and services in rural communities; and 10 WHEREAS the compounded effect of high energy costs and limited economic 11 opportunity result in low-income rural residents paying as much as 40 percent of their annual 12 incomes on home energy needs; and 13 WHEREAS high energy costs have a negative effect on small and large businesses 14 and industrial and other development; and 15 WHEREAS improving electric infrastructure, such as transmission, will encourage 16 development of the state's abundant renewable energy sources and enhance system reliability 17 among interconnected communities; and 18 WHEREAS residents in communities with the highest power costs in the state are 19 unable to shoulder the financial burden of developing large-scale power infrastructure without 20 significant government investment; and 21 WHEREAS carbon emissions can be lowered through the development of 22 economically feasible renewable energy projects and investment in an electric vehicle 23 charging network; and 24 WHEREAS the future of the state's economy will depend, in large part, on affordable 25 electric energy in all parts of the state; 26 BE IT RESOLVED that the Alaska State Legislature requests that the Alaska Energy 27 Authority, in coordination with utilities throughout the state and with statewide power and 28 electrical organizations, develop a comprehensive 10-year infrastructure plan to reduce power 29 costs in areas of the state that endure extremely high electric and heating costs; and be it 30 FURTHER RESOLVED that the Alaska State Legislature requests that the Alaska 31 Energy Authority deliver a plan for the reduction of power costs in the state to the senate

01 secretary and the chief clerk of the house of representatives by May 31, 2022, and notify the 02 legislature that the plan is available. 03 COPIES of this resolution shall be sent to the Honorable Mike Dunleavy, Governor 04 of Alaska; the Honorable Julie Anderson, Commissioner, Department of Commerce, 05 Community, and Economic Development; and Curtis Thayer, Executive Director, Alaska 06 Energy Authority.