03/11/2020 01:00 PM House RESOURCES

           SB 123-ELECTRIC RELIABILITY ORGANIZATIONS                                                                        
                                                                                                                                
1:05:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR TARR announced  the first order of business  would be CS                                                               
FOR SENATE  BILL NO. 123(RBE),  "An Act 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."                                                                        
                                                                                                                                
[Before the committee was CSSB  123(RBE), read on the House floor                                                               
and  referred  to  the  House  Resources  Standing  Committee  on                                                               
3/11/20.]                                                                                                                       
                                                                                                                                
CO-CHAIR TARR  advised [CSSB 123(RBE)]  and HB 151  are companion                                                               
bills  and because  the committee  heard  HB 151  [on 3/4/20  and                                                               
3/6/20], it  can advance [CSSB  123(RBE)] without  further public                                                               
testimony or five-day public notice.                                                                                            
                                                                                                                                
REPRESENTATIVE  HOPKINS expressed  appreciation for  the work  of                                                               
the House  Special Committee  on Energy  and the  House Resources                                                               
Standing Committee on the bill.                                                                                                 
                                                                                                                                
1:07:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO said the  legislation would be beneficial                                                               
to residents in the Railbelt,  and beyond, as the electrical grid                                                               
becomes  interconnected.   The utilities  have been  cooperative,                                                               
and he expressed strong support for the bill.                                                                                   
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  recalled the  state has  encouraged the                                                               
utilities  to  reduce  cost  and  improve  security  reliability;                                                               
passage  of  the  bill  and   creation  of  electric  reliability                                                               
organizations  (EROs)   reflect  significant  progress   in  this                                                               
regard.    However, she  noted  her  concern  about the  lack  of                                                               
direction for  economic dispatch, which  was not included  in the                                                               
bill  because  some  utilities cannot  provide  the  lowest  cost                                                               
energy.   Representative Spohnholz stressed, over  the long term,                                                               
Alaska  needs to  achieve economic  dispatch to  save ratepayers'                                                               
money,  to  save  energy  to address  the  challenge  of  climate                                                               
change, and to utilize renewable energy.                                                                                        
                                                                                                                                
CO-CHAIR TARR pointed out the  challenge of economic dispatch can                                                               
be attributed  to cost recovery  needed by some utilities  to pay                                                               
for generation infrastructure.                                                                                                  
                                                                                                                                
1:14:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS  moved to  report  CSSB  123(RBE) out  of                                                               
committee  with  individual  recommendations, the  attached  zero                                                               
fiscal note,  and letter  of intent.   There being  no objection,                                                               
CSSB 123(RBE)  was reported out  of the House  Resources Standing                                                               
Committee.