04/09/2009 03:00 PM House ENERGY

HB 182-RAILBELT ENERGY & TRANSMISSION CORP.                                                                                   
                                                                                                                                
3:48:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON called the meeting back to order.                                                                               
                                                                                                                                
CO-CHAIR EDGMON announced  that the next order  of business would                                                               
be HOUSE BILL NO. 182,  "An Act establishing the Greater Railbelt                                                               
Energy  and   Transmission  Corporation   and  relating   to  the                                                               
corporation;   relating  to   transition,  financial   plan,  and                                                               
reporting  requirements   regarding  planning  for   the  initial                                                               
business   operations  of   the  Greater   Railbelt  Energy   and                                                               
Transmission  Corporation; relating  to a  report on  legislation                                                               
regarding  the Regulatory  Commission of  Alaska and  the Greater                                                               
Railbelt  Energy and  Transmission  Corporation; authorizing  the                                                               
Alaska Energy Authority to convey  the Bradley Lake Hydroelectric                                                               
Project and  the Alaska Intertie  to the Greater  Railbelt Energy                                                               
and  Transmission Corporation;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
3:48:47 PM                                                                                                                    
                                                                                                                                
MR. BALASH  presented HB 182.   He explained  that HB 182  is the                                                               
result  of a  joint effort  by the  governor, the  utilities, and                                                               
Alaska   Energy  Authority   (AEA)  to   bring  joint   planning,                                                               
operation, and  investment for  the Railbelt  electric grid.   He                                                               
offered that  this effort has  spanned the  past year and  a half                                                               
with  ongoing discussions  being  held with  the  utilities.   He                                                               
explained  the proposed  bill creates  a  two-step process,  such                                                               
that  the corporate  governance structure  would continue  during                                                               
the  legislative interim,  while an  integrated resource  plan is                                                               
being undertaken by the AEA.   He highlighted that the utilities'                                                               
corporate board would develop a  transition plan and finance plan                                                               
for the next  legislative session.  He stated the  purpose of the                                                               
bill is to move the Railbelt  forward to the next generation.  He                                                               
remarked that the  boards of all six utilities met  last week and                                                               
decided they  wanted to participate in  developing the governance                                                               
structure,  as well  as the  outcome of  the integrated  resource                                                               
plan (IRP).   Thus, the boards  request to have HB  182 set aside                                                               
this year,  to form a  task force, and put  together a plan.   He                                                               
anticipated  the  board  would  hold several  meetings  and  make                                                               
recommendations on the corporate  governance structure by October                                                               
1.  This  timeline would allow the administration  to continue to                                                               
work on the  IRP and to work on the  transition and finance plan,                                                               
culminating  in a  single step  plan next  January.   He said  he                                                               
hoped  to furnish  a  letter  signed by  the  chairs  of all  six                                                               
Railbelt utility boards soon supporting  this change.  He offered                                                               
to provide it to the committee co-chairs.                                                                                       
                                                                                                                                
3:52:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EDGMON announced HB 182 would be held over.