Legislature(2019 - 2020)CAPITOL 17
02/25/2020 10:15 AM House ENERGY
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| Audio | Topic |
|---|---|
| Start | |
| HB37 | |
| HB151 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 151 | TELECONFERENCED | |
| *+ | HB 37 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 151-ELECTRIC RELIABILITY ORGANIZATIONS
10:30:50 AM
CHAIR HOPKINS announced that the final order of business would
be HOUSE BILL NO. 151, "An Act relating to the regulation of
electric utilities and electric reliability organizations; and
providing for an effective date." [Before the committee,
adopted as a working draft during the House Special Committee on
Energy meeting on 2/20/20, was the proposed committee substitute
(CS) for HB 151, Version 31-LS0870\E, Klein, 2/19/20 ("Version
E").]
10:31:33 AM
REPRESENTATIVE SPOHNHOLZ moved to adopt the proposed committee
substitute (CS) for HB 151, Version 31-LS0870\G, Klein, 2/24/20,
("Version G") as the working draft.
10:31:52 AM
REPRESENTATIVE PRUITT objected for discussion.
10:32:01 AM
JOE G. HARDENBROOK, Staff, Representative Grier Hopkins, Alaska
State Legislature, on behalf of the sponsor of HB 151, the House
Special Committee on Energy, chaired by Representative Hopkins,
reported that the Senate Special Committee on the Railbelt
Electric System had adopted this same committee substitute as
well as the attached intent language and had advanced its
proposed bill to the Senate Finance Committee. He shared that
Municipal Light and Power (ML&P) had relayed its concerns
detailing the impact of the legislation on the Bradley Lake
Project, both the dam and transmission lines. Although these
were part of the Railbelt Electric system, they were exempted by
statute from RCA oversight. He stated that the proposed bill
was not an attempt to circumvent the statutes to exempt Bradley
Lake from RCA regulation; however, the legislature intended that
all the power suppliers on the Railbelt be subject to the
reliability standards adopted by an electric reliability
organization (ERO). When the Bradley Lake agreements expire,
the project and its auxiliary infrastructure shall be subject to
the terms of the proposed legislation. He acknowledged that
there was active litigation regarding this issue. He stated
that the committee substitute and the intent language were an
attempt by the Alaska State Legislature to "stay out of the
ongoing judicial matters and state the legislature's aims once
the matter is settled." He shared that the ML&P had confirmed
that the intent statement and the bill changes "adequately
addressed their concerns."
10:33:50 AM
MR. HARDENBROOK paraphrased a written statement [included in
members' packets] showing the changes proposed under Version G,
which read as follows [original punctuation provided]:
Page 4, line 3: Under the "Reliability Standards"
section amends the section to read "All users,
owners and operators of an interconnected electric
transmission network served by an ERO, including a
user, owner or operator that is exempt from other
regulation under AS 42.05.711 or another provision of
this chapter, shall comply with reliability standards
contained in a tariff that is approved by the
commission."
Page 8, line 20: inserts the words "including a
public utility that is exempt from other regulation
under AS 42.05.711 or another provision of this
chapter." Following the word "utility."
These changes were recommended by Legislative Legal to
better reflect the intent of the legislation to
require all interconnected utilities on the Railbelt
and the providers of power, including but not limited
to the AEA Bradley Lake project comply with the
reliability standards adopted by a future Electric
Reliability Organization.
This is further spelled out in the attached
Legislative Intent Language.
10:35:00 AM
MR. HARDENBROOK paraphrased the Intent Statement for Version G
[included in members' packets], which read as follows [original
punctuation provided]:
It is the intent of the Thirty-First Alaska State
Legislature that under HB 151, reliability standards,
electric reliability organization (ERO) tariff
standards, planning terms, and project pre-approval
requirements will ultimately apply across the entire
interconnected Railbelt electric energy network. Broad
application is necessary to achieve the desired
efficiencies and reliability for Alaskans within the
Railbelt. HB 151 does not in any way affect or change
the existing relationship between the RCA and the
Bradley Lake project agreements, contracts, and
amendments exempt under AS 42.05.431(c). It is,
however, the intent of the Alaska State Legislature
that after the Bradley Lake project debt is satisfied
and the AS 42.05.431(c) exemption expires, those
agreements, contracts, and amendments shall be subject
to HB 151. Should Bradley Lake project agreements,
contracts, and amendments receive a future extension
of the AS 42.05.431(c) exemptions, the Thirty-First
Alaska State Legislature urges consideration of the
relationship between Bradley Lake and associated
infrastructure and projects, the Railbelt network, and
the electric reliability organization, and emphasizes
the intent to subject all interconnected network
users, owners, or operators to the reliability
standards, an electric reliability organization
tariff, planning, and project pre-approval
requirements.
10:37:32 AM
REPRESENTATIVE PRUITT removed his objection to the motion to
adopt the proposed committee substitute (CS) for HB 151, Version
31-LS0870\G, Klein, 2/24/20, as the working draft. There being
no further objection, Version G was before the committee.
10:37:40 AM
CHAIR HOPKINS moved on to public testimony on HB 151 [which had
been left open from the House Special Committee on Energy
meeting on 2/20/20]. After ascertaining that there was no one
who wished to testify, he closed public testimony.
10:38:18 AM
REPRESENTATIVE PRAX said that there were four generating
facilities in Fairbanks: the University of Alaska; Doyon for
Fort Wainwright; Eielson [Air Force Base], and Alyeska for Pump
Station 9, and asked if these facilities had been involved in
this discussion.
10:38:45 AM
MR. HARDENBROOK offered his understanding that, although these
entities did not provide power into the greater network, they
had been part of the discussion, this legislation would not
impact their operations other than to comply with the
reliability standards.
10:39:26 AM
ANTONY SCOTT, Commissioner, Regulatory Commission of Alaska
(RCA), Department of Commerce, Community & Economic Development,
relayed that the intent of the proposed bill was that
interconnection within the overall system was subject to the
reliability standards but beyond that "there's not much to talk
about."
10:40:08 AM
REPRESENTATIVE PRAX asked whether the four generating facilities
had been contacted, noting that they were all connected to the
grid.
10:40:44 AM
JULIE ESTEY, Director of External Affairs, Matanuska Electric
Association (MEA), in response to Chair Hopkins, said that an
invitation had been extended to those four power producers to
join in the conversation, and that several had applied to become
part of the implementation committee. She added that they had
also offered substantial input which had been taken into
consideration.
10:41:42 AM
MR. HARDENBROOK added that for more than a year the RCA had an
ongoing process for public comment and had also solicited
comments from independent power producers, shareholders, and
consumers across the Railbelt.
10:42:12 AM
REPRESENTATIVE PRUITT asked when the Bradley Lake project debt
was due to be paid off.
10:42:33 AM
MR. HARDENBROOK replied that the first bond indebtedness was
scheduled to be paid off in July 2021. He explained that part
of the conflict and discussion was related to the Battle Creek
expansion proposed for the Bradley Lake project. He offered his
belief that the litigation was involved with when the additional
debt would be retired and, consequently, when there would be
interaction with the statutes that govern the exemption of the
project from RCA regulation. He pointed out that the intent
language for the committee substitute stated that the intent of
the legislature was for the statutes governing the RCA's
participation in the Bradley Lake project to remain unchanged
and that the process would play out before the terms of the
proposed bill were applied to the Bradley Lake project.
REPRESENTATIVE PRUITT shared his understanding for an
expectation that the court had determined that the proposed
legislation would be in effect based on the final date for the
bond indebtedness.
MR. HARDENBROOK expressed agreement, and referred to the second
paragraph of the intent language, which read:
the intent of the Alaska State Legislature that after
the Bradley Lake project debt is satisfied and the AS
42.05.431(c) exemption expires, those agreements,
contracts, and amendments shall be subject to HB 151.
10:44:34 AM
REPRESENTATIVE SPOHNHOLZ moved to report CSHB 151, Version 31-
LS0870\G, Klein, 2/24/20, out of committee with individual
recommendations and zero fiscal notes. There being no
objection, CSHB 151(ENE) was moved from the House Special
Committee on Energy.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 37 - Sectional Analysis.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37 - Support Letter Alaska Satellite Internet 4.11.17.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37- Committee Hearing Request 02.21.2020.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37 - Support Letter Craig Mapes 4.11.17.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37 Support Letter Chena Holdings Inc 4.10.17.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB 37 Support Letter.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| HB37 - Sponsor Statement.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 37 |
| 2020-02-24 - HB 151 version G.pdf |
HENE 2/25/2020 10:15:00 AM HRES 3/6/2020 1:00:00 PM |
HB 151 |
| 2020-02-24 - HB 151 Intent Language.pdf |
HENE 2/25/2020 10:15:00 AM |
HB 151 |