02/24/2011 03:00 PM House ENERGY
| Audio | Topic |
|---|---|
| Start | |
| HB103 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 103 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
February 24, 2011
3:06 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Lance Pruitt, Co-Chair
Representative Kurt Olson
Representative Dan Saddler
Representative Pete Petersen
Representative Chris Tuck
MEMBERS ABSENT
Representative Bob Lynn
COMMITTEE CALENDAR
HOUSE BILL NO. 103
"An Act relating to the procurement of supplies, services,
professional services, and construction for the Alaska Energy
Authority; establishing the Alaska Railbelt energy fund and
relating to the fund; relating to and repealing the Railbelt
energy fund; relating to the quorum of the board of the Alaska
Energy Authority; relating to the powers of the Alaska Energy
Authority regarding employees and the transfer of certain
employees of the Alaska Industrial Development Export Authority
to the Alaska Energy Authority; relating to acquiring or
constructing certain projects by the Alaska Energy Authority;
relating to the definition of 'feasibility study' in the Alaska
Energy Authority Act; and providing for an effective date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 103
SHORT TITLE: POWER PROJECT; ALASKA ENERGY AUTHORITY
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/18/11 (H) READ THE FIRST TIME - REFERRALS
01/18/11 (H) ENE, FIN
02/15/11 (H) ENE AT 3:00 PM BARNES 124
02/15/11 (H) Heard & Held
02/15/11 (H) MINUTE(ENE)
02/17/11 (H) ENE AT 3:00 PM BARNES 124
02/17/11 (H) Heard & Held
02/17/11 (H) MINUTE(ENE)
02/22/11 (H) ENE AT 3:00 PM BARNES 124
02/22/11 (H) Heard & Held
02/22/11 (H) MINUTE(ENE)
02/24/11 (H) ENE AT 3:00 PM BARNES 124
WITNESS REGISTER
SENATOR JOE THOMAS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 103.
GENE THERRIAULT, Vice President of Resource
Golden Valley Electrical Association (GVEA)
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 103.
MIKE CRAFT, President
Delta Wind Farm, Inc.
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 103.
CHARLES DUNCAN
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 103.
ERIC YOULD, Consultant
Wood Canyon Group, Inc.
Glennallen, Alaska
POSITION STATEMENT: Testified in support of HB 103.
MARILYN LELAND, Executive Director
Alaska Power Association (APA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 103.
RICH WILSON, Spokesperson
Alaska Ratepayers, Inc.
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on HB 103.
FRANK MIELKE, Vice President
Alaska Ratepayers, Inc.
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on HB 103.
JERRY MCCUTCHEON
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to HB 103.
BOB PICKETT, Commissioner/Chair
Regulatory Commission of Alaska (RCA)
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
103.
ACTION NARRATIVE
3:06:49 PM
CO-CHAIR NEAL FOSTER called the House Special Committee on
Energy meeting to order at 3:06 p.m. Representatives Foster,
Pruitt, Tuck, and Petersen were present at the call to order.
Representatives Saddler and Olson arrived as the meeting was in
progress. Senator Thomas was also in attendance.
HB 103-POWER PROJECT; ALASKA ENERGY AUTHORITY
3:07:55 PM
CO-CHAIR FOSTER announced that the only order of business would
be HOUSE BILL NO. 103, "An Act relating to the procurement of
supplies, services, professional services, and construction for
the Alaska Energy Authority; establishing the Alaska Railbelt
energy fund and relating to the fund; relating to and repealing
the Railbelt energy fund; relating to the quorum of the board of
the Alaska Energy Authority; relating to the powers of the
Alaska Energy Authority regarding employees and the transfer of
certain employees of the Alaska Industrial Development Export
Authority to the Alaska Energy Authority; relating to acquiring
or constructing certain projects by the Alaska Energy Authority;
relating to the definition of 'feasibility study' in the Alaska
Energy Authority Act; and providing for an effective date."
3:08:42 PM
CO-CHAIR FOSTER opened public testimony.
3:10:13 PM
SENATOR JOE THOMAS, Alaska State Legislature, urged the
committee to imagine that the Susitna dam had been completed in
1991, and for the last 20 years the Railbelt had enjoyed the
benefits of relatively inexpensive, reliable, clean, and stable
power, freeing other sources of energy for use in other parts of
the state. He surmised making natural gas available for other
uses would have attracted industry to the area. In 2008,
Senator Thomas added $2.5 million to reexamine the project,
which had previously been studied for decades, but had been
finally "shelved" in the '80s. This money was used by the
Alaska Energy Authority (AEA) to develop cost estimates for the
dam proposals, and to create the Regional Integrated Resource
Plan (RIRP). Last year, $10 million was dedicated to refining
studies on three projects, the Watana dam on the Susitna River,
the Chakachamna Hydroelectric Project, and the Glacier Fork
Hydroelectric Project; in addition, the governor has included
$65.7 million in his budget this year for project design,
planning, permitting, and licensing. Senator Thomas advised the
250-mile radius around the dam is known as the "ring of
influence" and approaches the site of the proposed Donlin Creek
gold mine. He observed that had the dam been in operation, the
gold mine project would have progressed because there would have
been access to a power supply, and easier access to gas, which
is an issue for many developments around the state. In
addition, power to Livengood would have created more potential
for mine development in that area. Also within the radius are
the Yukon-Kuskokwim Delta, the Richardson Highway, Delta
Junction, Glennallen, and many Interior villages.
3:15:35 PM
SENATOR THOMAS noted that hydroelectric (hydro) projects provide
low-cost, stable, clean, and reliable power, often for one to
two hundred years as proven by the Salmon Creek and Gold Creek
hydro plants in Juneau. In addition, hydro power brings
stability to Alaska's energy and economy, unlike natural gas
from Cook Inlet with its fluctuating costs. Today, the prices
of natural gas and oil are rising, "and that's what we will
continue to live with without moving forward with ... at least
in the Railbelt area, with Watana." He clarified that the
project should be identified as "Watana" as there have been many
versions of dams on the Susitna River. Senator Thomas expressed
his preference for the expandable Watana dam project, saying the
redesign by MWH with roller-compacted concrete (RCC)
construction makes the project very similar to other dams around
the world. He cautioned against another delay - although it is
a big, expensive project that will create jobs - more
importantly, the project will provide a stable power system that
will benefit the Interior and Southcentral. The project does
not cancel out the need for a natural gas pipeline as gas is
better for space heat and for industrial use, even with the loss
of waste heat. In Fairbanks, waste heat from a coal-burning
plant is used, but generally plants are not located in towns.
Senator Thomas advised that the estimated costs for the project
are coming down with MWH's review of the construction models; in
fact, he expects the price for the expandable Watana dam will
fall by another $600-$700 million. He concluded that most of
the questions have been answered, and the Federal Energy
Regulatory Commission (FERC) process will require many more
answers.
3:21:20 PM
REPRESENTATIVE PETERSEN asked whether there was a cost estimate
for building several hundred miles of transmission lines to the
Kuskokwim area.
SENATOR THOMAS relayed the estimates from the Donlin Creek mine
project were approximately $800 million for a power line from
south of Nenana to Donlin Creek. The upgrade to the intertie
was estimated at $140-$150 million, for a total of about $1
billion. The need for infrastructure creates opportunities for
public private partnerships, and he assured the committee
companies will "step up." Although this estimate may decrease
due to the situation with natural gas, he cautioned against
importing gas into the state.
3:22:54 PM
REPRESENTATIVE TUCK asked whether the failure of HB 103 to pass
the legislature would be a hindrance to the construction of the
Susitna dam.
SENATOR THOMAS opined an agency such as the Alaska Industrial
Development & Export Authority (AIDEA) or AEA is needed to
oversee this type of project and to put together the process;
for example, the U.S. Department of Energy, Bonneville Power
Administration (BPA) is a good model to follow, and the Greater
Railbelt Energy and Transmission Corporation (GRETC) is another
example of how to manage power consumption. In fact, GRETC now
proposes the participation of five utilities with the potential
for adding a sixth "user of the resource." It is necessary to
firmly involve the energy authority and an entity like AIDEA to
manage and help move the projects along.
3:24:50 PM
REPRESENTATIVE PETERSEN recalled the cost of electricity is
projected to be about 20 cents per kilowatt hour. He pointed
out this is a significant increase over the present cost, and
asked whether the state will have to subsidize the project to a
large degree in order for the price of electricity to be
competitive.
3:25:39 PM
SENATOR THOMAS heard estimates in the range of 6-10 cents per
kilowatt hour, depending on the final contract cost and the
state's willingness to "buy-down the financing". If other
entities are involved, the potential investment by the state is
25 percent of a $4 billion price tag, so if the state
contributes $1 billion and $3 billion is financed, the cost is
reduced. Although 8-10 cents per kilowatt hour for electricity
may not be appealing to consumers at this time, he reminded the
committee that this price may be level for one hundred years due
to the low cost of maintenance on a hydro power plant. An
additional benefit, particularly to Anchorage, is the reduction
of demand for Cook Inlet natural gas. Furthermore, Fairbanks,
along with the rest of the state, is being limited by the lack
of reasonably priced power for the production of industrial
goods.
3:28:04 PM
CO-CHAIR PRUITT reiterated the potential for expanding the
transmission of electricity down the Richardson Highway. He
asked for the percentage of Alaskans that could benefit from
that expansion.
SENATOR THOMAS responded that about 75 percent of the state's
population, with the exception of Southeast and Western Alaska,
could benefit; however, he stressed that an appropriate
proportion of money will also need to be allocated for projects
to benefit the remaining 25 percent of the population, such as
funding for the expansion of transmission lines in Southeast.
3:30:34 PM
GENE THERRIAULT, Vice President of Resource, Golden Valley
Electrical Association (GVEA), expressed GVEA's support of the
passage of HB 103 to modify the structure of AEA so it may
better move forward with energy projects for the benefit of all
Alaskans. Passage of the bill will enable AEA to work with
utilities in a manner similar to that which resulted in the
completion of the successful Bradley Lake Hydroelectric Project
(Bradley Lake Hydro) and Railbelt interties. Mr. Therriault
pointed out that a large hydro project is too large for any of
the Railbelt utilities to facilitate individually or
collectively; however, the project can be constructed with the
support of the state. Passage of the bill is an important step
to achieve the goal of providing affordable and stable power in
the future. He pointed out that the administration designed the
bill to reconstruct AEA not just for the Susitna River hydro
project, but to be used in the future for power projects across
the state. His company has reviewed HB 103 and supports the
following: restoration of AEA's ability to bond for energy
projects; creation of the Alaska Railbelt energy fund, if it is
restructured in a manner identical to the Southeast Energy Fund;
language that allows AEA to establish subsidiary corporations;
language that allows projects constructed by AEA or its
subsidiaries to be exempt from RCA rate regulation. Although
GVEA was concerned about the wording of section 8 of the bill,
its concern is partially mitigated by AS 44.83.396, which
requires AEA to enter into contracts with a utility that
purchases power from the project, for the operation of the
project, and he asked for assurance that this section of law
will apply to AEA subsidiary corporations. Mr. Therriault
explained it is important to GVEA that AEA does not operate the
project itself. In conclusion, he pointed out that without this
legislation, AEA will not be able to own the Watana dam project
and thus cannot begin the application process with FERC.
3:36:53 PM
MIKE CRAFT, President, Delta Wind Farm, Inc., informed the
committee he is the only wind farmer on the Railbelt grid and
has been studying this issue for three and one-half years.
Before he began his wind farm, he was a land developer and he
realized an energy gap was approaching along with the rising
cost of power. He observed that the inflation of the cost of
fossil fuel is choking Fairbanks because the city makes 60
percent of its electricity from diesel fuel, and he cautioned
against ignoring the impending increases in the price of
electricity. In fact, he opined, "I don't think we're ever
going to find anything that's going to deliver cheaper energy
than what we currently pay." Mr. Craft began his wind farm
business because wind energy presents an opportunity to
stabilize the electric rate. He recalled hearing about the
Susitna dam in 1978, and noted that if it had been built, there
would be diversified industry and jobs in Alaska. The dam would
have provided opportunities for the mining and smelting
industries, and for the production of value-added products. At
that time, the cost of electricity from the dam was projected to
be 4.5 cents per kilowatt hour. Mr. Craft restated his concern
that there will be a gap in the supply of energy before the
natural gas pipeline and the dam can be built. Wind energy can
fill the gap, but it is not the solution to the impending
shortage of energy. Mr. Craft indicated his support for the
project.
3:41:06 PM
REPRESENTATIVE PETERSEN stated that wind farms have problems
with integration into the electric grid, but hydro systems do
not.
MR. CRAFT explained that "the shorter the head, the easier to
integrate." For example, a project with a 20-mile pipe is
harder to regulate with wind, but a dam has a short head thus it
is easy to regulate power. In fact, there could be multiple
wind farms located in different wind regimes for balance, and
integration would not be a problem because today's turbines are
"completely controllable," and the load balance is controlled by
curtailing the output of the turbines. Different "ramp rates"
are also not a problem, and Mr. Craft explained how integration
is handled between Eagle Creek, Delta Junction, and the wind
farm. He restated the importance of displacing the use of oil
generation in Fairbanks due to the pollution of the air and
ground water caused by ash and emissions. Mr. Craft concluded
that integration is not a technical issue, but a political
issue.
3:44:32 PM
CO-CHAIR PRUITT asked whether the availability of hydro power
would discourage subsequent individuals from investing in wind
power to add to the grid.
MR. CRAFT indicated no. As a matter of fact, the estimated cost
of 20 cents per kilowatt hour is an opportunity for wind, as
wind farms built today would have their capital cost paid, thus
would be in a position to compete with the hydro project when it
is complete. Even now, there is room for 200 megawatts of wind
power on the Railbelt grid, especially with an intertie from
Glennallen to Delta Junction. Wind power can compete with
hydrocarbons and hydroelectric projects. However, wind power is
variable and cannot provide 100 percent of "firm power,"
although periods of wind power would allow the dam to reserve
water capacity.
3:47:10 PM
CHARLES DUNCAN stated he has been writing an economics
newsletter for 27 years and provided copies of the current issue
for the committee. He expressed his support for HB 103 and its
bonding feature. Mr. Duncan's current newsletter includes
articles on employment and on strategies for funding
infrastructure, such as bonding. He gave a short history on the
bonding of state and federal projects in the 1800s, and opined
the situation then was similar to what Alaska faces now, in that
a collapse of the national economy is occurring during the
construction of the Susitna project. He said his article
explains how to avoid "debt pyramiding" while encouraging
industrial development. The state should pay cash for one-half
of the first stage for the Watana dam and bond for the rest, and
then leverage a small percentage of state funds with federal
money for the completion of the Watana dam and the Devil Canyon
dam. This plan would guarantee the success of a new strategic
and construction materials industry.
3:51:11 PM
CO-CHAIR FOSTER asked whether Mr. Duncan has approached the
administration or AEA.
MR. DUNCAN indicated many people are aware of his newsletter.
In further response to Co-Chair Foster, he said he has received
comments that the Bradley Lake Hydro method of financing "was
successful before, we can do it again."
3:52:37 PM
ERIC YOULD, Consultant, Wood Canyon Group, Inc., stated he is an
independent consultant and cited his 35 years of experience in
the energy business, primarily in the area of hydropower. He
was the program manager/director for the Susitna hydro project
in the '70s and '80s, working for the U.S. Army Corps of
Engineers (USACE) and the Alaska Power Authority (APA). Mr.
Yould offered the benefit of his experience with the
implementation of legislation relating to operating an authority
similar to what is now the AEA. He provided a short history of
the Alaska Power Authority (APA), which was created as a
mechanism to develop the Susitna project in a joint venture with
USACE. The legislation authorizing the project passed in 1976,
and in 1989, the legislature expanded the authority of APA and
renamed it AEA. In 1993, the legislature stripped AEA of much
of its powers and authority, thus it is unknown whether AEA can
develop the Susitna project, or any major project, with its
present statutes. Mr. Yould urged the passage of HB 103 and the
reconstitution of all of the previous powers of APA and AEA.
During his tenure with APA, the power authority developed
Bradley Lake Hydro, the Anchorage-Fairbanks Intertie, the Terror
Lake Hydroelectric Project, Swan Lake Hydroelectric Project,
Tyee Lake Hydroelectric Project, smaller projects, and moved the
Susitna project to FERC licensing. He restated his support HB
103 and urged that the AEA board of directors become autonomous
from the board of AIDEA because AIDEA is essentially a banking
institution, while AEA is an entity that will study, permit,
design, construct, operate, own, and market energy. Mr. Yould
pointed out that there is no provision in the proposed
legislation for the right of eminent domain, and he recommended
adding this element to the legislation. Regarding the proposed
legislation to strip the authority to allow independent
procurement by AEA, he stressed that the authority to develop a
procurement plan to procure contracts for the implementation of
each individual project is required.
3:59:17 PM
CO-CHAIR PRUITT asked for other powers of authority previously
held by APA that are not authorized by the proposed legislation.
MR. YOULD said he was unsure, as statutes from 1977-1992 are
unavailable; however, what is legislated today for AEA will
change in response to what is needed. Although with the
addition of an independent board and eminent domain, the
proposed legislation is close to the original statutes, APA was
also guided by specific economic criteria that required the use
of standard analysis for each project.
4:03:26 PM
REPRESENTATIVE TUCK referred to proposed legislation that would
establish an independent board of directors for AIDEA, and allow
it to have and own subsidiaries. Under these circumstances, he
asked about the idea of establishing AEA as a subsidiary of
AIDEA.
MR. YOULD opined that members of the AIDEA board of directors
were chosen for their expertise in the banking industry, and not
for their experience in energy, construction, procurement, or
project development; in fact, it is backwards for AEA to be a
subsidiary of AIDEA, which has a board without a specific
interest in energy development.
4:05:05 PM
MARILYN LELAND, Executive Director, Alaska Power Association
(Association), informed the committee that members of the
Association are electric utilities around the state that provide
power to over 600,000 Alaskans. She advised that Association
members believe that large hydro is not the only answer to
Alaska's energy problems. In addition, members believe that a
strong partnership between the electric utilities and the state
is needed. Referring to the state goal of 50 percent renewable
sources of electric energy by 2025, she noted that the only way
to meet this goal is by the construction of a major hydropower
project for the Railbelt, and other large generation projects.
The cost of these projects is beyond the financial capability of
any of the individual electric utilities, thus the state should
be a partner in the funding and construction of any such
project. Furthermore, although AEA is the logical entity to
build these projects, it is presently limited by its statutory
authority. Ms. Leland acknowledged that the proposed
legislation is focused on the Watana dam on the Susitna River;
however, the bill will empower AEA to oversee and develop
projects all over the state including interties, hydro, wind,
and geothermal. She urged attention to the Susitna project,
pointing out it is the long-term solution to the approaching
shortage of natural gas. The Association supports expansion of
statutory powers that would allow AEA to acquire, construct, or
own any interest in an electric project, or any right to
capacity of an electric project, or to perform feasibility
studies, design and engineering with respect to power. Ms.
Leland assured the committee the utilities and their consumers
want to be active members of the legislative process. She
concluded, saying the Association strongly urges the expansion
of authority for AEA, as AEA is in the best position to
facilitate working to solutions.
4:08:48 PM
RICH WILSON, Spokesperson, Alaska Ratepayers, Inc., said Alaska
Ratepayers is an independent, non-partisan group of experienced,
long-time residents that was formed three years ago from concern
about the rising cost of electric rates. The group meets weekly
to study its research and to consider views from every
perspective, and he reported its finding: HB 103 will fall
short of meeting the goal of ratepayers which is affordable,
predicable, electricity for the cost of 6 cents per kilowatt
hour. Furthermore, Alaska Ratepayers recognizes that smaller
projects statewide are also needed, and a separate Susitna power
entity is required to accomplish the goal of the Susitna
project. He outlined a separate bill offered by Alaska
Ratepayers that supports the 50 percent renewable goal and
contains the following: authority to build a major statewide
project that would have a board with fixed terms and project-
appropriate qualifications, staff, and project development and
financing powers; the authority would have the ability to pay
competitive compensation for its team; the authority would have
the ability to efficiently procure the appropriate resources.
Mr. Wilson stated Alaska Ratepayers' research concludes that
this further proposed legislative authority is necessary for the
board of the "Susitna Power Authority" to accomplish the
following: focus effort and avoid distractions; narrow the
mission of delivering electricity in an affordable and timely
manner; clarify and simplify management, financial, and bonding
responsibilities; enable timely completion by avoiding
unnecessary delays; deliver affordable energy to ratepayers;
comply with large hydro industry best practices standards. Mr.
Wilson urged the committee to visit other large hydro projects
and consult with experts such as BC Hydro, British Columbia,
Canada, and the New York Power Authority (NYPA), White Plains,
New York.
4:14:20 PM
MR. WILSON continued, saying Alaska Ratepayers is also concerned
with the aspect of transmission. The Susitna project properly
includes power generation and the transmission necessary to link
the dam with the intertie. However, separate from the new
project, improvements to the transmission system are needed in
the near-term. Members of Alaska Ratepayers have long-term
experience in Alaska in public policy issues, energy,
engineering, law, and project development, and they gather
research in order to present the ratepayers' perspective in an
intelligent and thorough manner. Mr. Wilson offered the group's
assistance to the committee.
4:16:13 PM
FRANK MIELKE, Vice President, Alaska Ratepayers, added that the
single-project-entity approach has been used historically by
organizations involved with projects costing over $1 billion,
such as the Trans-Alaska Pipeline System (TAPS), the National
Aeronautics and Space Administration (NASA), and the Manhattan
Project. After construction of the project, another entity may
take over operations.
4:17:52 PM
REPRESENTATIVE TUCK asked Mr. Mielke whether the single-project-
entity group he is referring to is AEA.
MR. MIELKE explained his organization is referring to the
Susitna project. In the future, other large projects may not be
big enough to support their own office, but could benefit from
the "subsidiary approach." When a project is bigger than the
agency itself, a single-purpose agency needs to be created.
4:19:02 PM
CO-CHAIR FOSTER asked Mr. Mielke to address how to maintain
accountability over a separate entity.
MR. MIELKE advised that with this approach there is one board
with technical expertise responsible for making decisions,
unlike an agency that must go through certain other levels of
government to get things done.
4:21:25 PM
JERRY MCCUTCHEON informed the committee he proposed the Susitna
project many years ago and after that project was shelved, he
suggested the Bradley Lake Hydro project. Mr. McCutcheon said
Susitna is a worthy project that can stand on its own, but not
with the current proposal. He opined Bradley Lake Hydro was not
built as it should have been thus cannot produce 40 percent of
its installed capacity, and has faulty power lines. He advised
this project is costly and will suffer delays. In order to
avoid reengineering from scratch, the project should be returned
to USACE.
4:25:35 PM
BOB PICKETT, Commissioner/Chair, Regulatory Commission of Alaska
(RCA), offered to answer questions.
4:25:59 PM
REPRESENTATIVE TUCK recalled testimony that a project owned by
AEA would need to be exempt from RCA regulations. He asked for
RCA's position on whether the public and consumers' interests
will be taken care of in that circumstance.
MR. PICKETT said RCA has not taken a formal position, which
would only happen at a public meeting. He reminded the
committee that last year, during discussion of the Greater
Railbelt Energy and Transmission Corporation (GRETC) issue,
there was a series of public meetings and RCA had strong
reservations about the creation of a privately-owned entity,
instead of a state-owned entity. Mr. Pickett advised that the
purpose of regulation is to ensure balance in the absence of
competition. He opined the Bradley Lake Hydro model has worked
well; in fact, its electricity is the least expensive for the
utilities in the Railbelt area.
4:27:31 PM
REPRESENTATIVE TUCK noted that HB 103 would apply to other
projects in the state, some of which may be developed by limited
liability companies of which AEA has partial ownership. He
asked whether RCA would have authority over projects of which
AEA owns just a fraction, and which are mostly owned by private
interests.
MR. PICKETT deferred to RCA's legal counsel as this issue has
also arisen in relation to AEA's Renewable Energy Fund.
4:28:44 PM
REPRESENTATIVE PETERSEN surmised that if a project like the
Watana dam goes forward, power sales agreements with the
utilities would fall under RCA jurisdiction.
MR. PICKETT said that is correct in the case of economically
regulated utilities. He clarified that of 125 electric
utilities in the state, 37 are economically regulated.
4:29:32 PM
CO-CHAIR FOSTER stated public testimony on HB 103 remains open.
[HB 103 was heard and held.]
4:30:19 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 4:30 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Testimony by Richard Wilson, Alaska Ratepayers, 24 February 2011.pdf |
HENE 2/24/2011 3:00:00 PM |
Public Testimony, 24 February 2011 |
| Susitna Power Authority draft bill by Alaska Ratepayers, 23 February 2011.pdf |
HENE 2/24/2011 3:00:00 PM |
Public Testimony, 24 February 2011 |