Legislature(2025 - 2026)BARNES 124
02/05/2025 01:00 PM House RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Overview(s) Alaska's Electric Utilities | |
| Presentation(s): the Railbelt Reliability Council | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
February 5, 2025
1:31 p.m.
MEMBERS PRESENT
Representative Robyn Niayuq Burke, Co-Chair (via teleconference)
Representative Carolyn Hall
Representative Donna Mears
Representative Dan Saddler
Representative George Rauscher
Representative Julie Coulombe
Representative Bill Elam
MEMBERS ABSENT
Representative Maxine Dibert, Co-Chair
Representative Zack Fields
COMMITTEE CALENDAR
OVERVIEW(S) ALASKA'S ELECTRIC UTILITIES
- HEARD
PRESENTATION(S): THE RAILBELT RELIABILITY COUNCIL
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MICHAEL ROVITO, Deputy Director
Alaska Power Association
Anchorage, Alaska
POSITION STATEMENT: Presented a PowerPoint titled Alaska Power
Association Transmission and Generation.
ED JENKINS, CEO
Railbelt Reliability Council
Anchorage, Alaska
POSITION STATEMENT: Presented a PowerPoint regarding the Alaska
Railbelt Reliability Council.
LOU FLORENCE, Chair
Railbelt Reliability Council
Fairbanks, Alaska
POSITION STATEMENT: Provided clarifying information regarding
the Alaska Railbelt Reliability Council.
ACTION NARRATIVE
1:31:10 PM
VICE CHAIR REPRESENTATIVE DONNA MEARS called the House Resources
Standing Committee meeting to order at 1:31 p.m.
Representatives Hall, Mears, Saddler, Rauscher, Coulombe, and
Elam were present at the call to order. Representative Burke
arrived as the meeting was in progress.
1:32:06 PM
REPRESENTATIVE HALL nominated Representative Mears as vice chair
of the House Resources Standing Committee.
REPRESENTATIVE SADDLER objected for the purpose of making a
comment. He wished the co-chair a speedy recovery and supported
Representative Mears taking the gavel. He then removed his
objection.
REPRESENTATIVE HALL announced that seeing no further objection,
Representative Mears was elected as Vice Chair of House
Resources.
^OVERVIEW(S) Alaska's Electric Utilities
OVERVIEW(S) Alaska's Electric Utilities
1:33:43 PM
VICE CHAIR REPRESENTATIVE MEARS announced that the first order
of business would be an overview of Alaska's Electric Utilities.
1:34:06 PM
MICHAEL ROVITO, Deputy Director, Alaska Power Association (APA),
presented a PowerPoint overview of Alaska's electric utilities
[Hard copy included in the committee packet]. He first
explained that the Alaska Power Association is a 74-year-old
trade association that represents utilities. He showed slide 2,
titled "Alaska Power Association," which defined APA and moved
to slide 3, titled "APA's Electric Utility Members," which
listed the state's APA members. Slide 2 read as follows
[original punctuation provided]:
Alaska Power Association is dedicated to assisting our
members in accomplishing their goals of delivering
electric energy and other services at the best value
to their customers.
Slide 3 read as follows [original punctuation provided]:
• Alaska Village Electric Cooperative
• Barrow Utilities and Electric Cooperative
• Chugach Electric Association
• City of King Cove
• Copper Valley Electric Association
• Cordova Electric Cooperative
• Golden Valley Electric Association
• Homer Electric Association
• INN Electric Cooperative
• Inside Passage Electric Cooperative
• Ketchikan Public Utilities
• Kodiak Electric Association
• McGrath Light and Power
• Metlakatla Power and Light
• Tanana Power Company
• TDX Power
• Kotzebue Electric Association
• Matanuska Electric Association
• Middle Kuskokwim Electric Co-op
• Naknek Electric Association
• Nome Joint Utility System
• Nushagak Cooperative
• City of Seward
• Southeast Alaska Power Agency
• Unalakleet Valley Electric Cooperative
• City of Unalaska
Alaska Electric Light and Power
• Alaska Power and Telephone
• Doyon Utilities
• Purvurnaq Power Company
• Tanalian Electric Cooperative
Alaska Power Association: The Unified Voice of
Alaska's Electric Utilities
1:36:57 PM
MR. ROVITO moved to slide 4, titled "Alaska's Electric
Utilities: Powered by Alaskans," which read as follows [original
punctuation provided]:
Alaska's electric utilities serve the people. Their
mission is crucial to the economy and life in general.
• Utility leadership lives in the communities and has
a vested interest in seeing their communities succeed.
• Every utility in APA's membership is working hard to
diversify its generation and increase their
sustainability.
• Electric utilities have a responsibility to
carefully manage the power grid, and they make
decisions deliberately with safety, reliability, and
costs in mind.
1:38:15 PM
MR. ROVITO moved to slide 5 and explained that Alaska's electric
utilities have different types of structures including the
following:
Cooperative: member owned and governed. Not-for-profit
electric utility.
Municipal electric utility: owned and operated by a
local government. Also, not for-profit.
Investor-owned utility: a for-profit electric utility
typically owned by a private company or publicly
traded corporation.
Tribal-owned electric utility: an electric utility
that is owned and operated by a tribal government or a
tribal organization.
Joint action agency: collaboration of public
utilities to design, finance, build, operate, and
maintain power generation and transmission facilities.
He presented slide 6, titled "By the Numbers," followed by slide
7, titled "Alaska's Unique Electric Systems," which read as
follows [original punctuation provided]:
More than 90 percent of Alaskans receive their power
from a not-for-profit cooperative, municipal utility,
or a tribally-owned utility.
Compared to the lower 48 with only 28 percent of power
produced through cooperative, municipal, or tribal
utility (72 percent from IOUs) *EIA Data
Alaska has a unique electric grid system due to its
vast and sparsely populated geography. There are more
than 150 islanded, stand-alone electrical grids
serving rural villages.
The largest transmission grids are in Southeast Alaska
and the Railbelt. Although these serve a vast majority
of Alaskans, they are significantly smaller than grids
in the rest of the country and are all islanded.
Due to the state's electric reality, utilities are
pioneers in microgrid operation and technological
innovation. From batteries to renewables to time-
tested operational expertise in harsh unforgiving
conditions.
1:43:49 PM
MR. ROVITO showed slide 8, titled "Generation Sources Across
Alaska" which broke down the generation systems in Alaska as 47
percent natural gas; 26 percent hydropower; 13 percent petroleum
(diesel, naphtha); less than 1 percent Solar; 2 percent wind;
and 11 percent coal. He then showed slide 9, titled "Potential
Future Generation Sources," and discussed possible future
generation systems such as micronuclear (small modular
reactors), geothermal, tidal, biomass, other hydrokinetic, or
"something we haven't heard of yet." He mentioned that a
micronuclear generator is under consideration for Eielson Air
Force Base and touched on the potential of tidal power, pointing
out that the second fastest tides in the world are in Cook
Inlet.
1:46:47 PM
MR. ROVITO proceeded to slide 10, titled "Alaska's Electric
Utilities Continue to Diversify," which read as follows
[original punctuation provided]:
• Diversification of electric systems has been
underway for some time.
• Rural and Railbelt utilities are integrating solar,
wind, batteries and looking at other clean energy
sources in ways that are technically and economically
feasible.
• Diversification can lead to increased energy
security.
• Diversification Projects consist of both utility -
built and electricity purchased from independent power
producers (IPPs).
• Focus on reliability, economic, and technical
feasibility.
• Important to note renewable energy is not always a
cheaper alternative.
1:48:27 PM
MR. ROVITO showed slide 11, titled "Considerations for
Integrating Renewables," which read as follows [original
punctuation provided]:
• It's more complicated than just putting up wind and
solar.
• Electric utilities must consider:
• Grid stability and reliability Ensuring
intermittent resources don't upset the balance of the
grid.
• Infrastructure upgrades Enhancing
transmission lines and other grid management systems.
• Energy Storage Manage variability and storage
of excess energy.
• Economic considerations Cost of integrating
renewables, backing up intermittent renewables with
base load power and the cost of new infrastructure,
etc.
• Baseload Power = the minimum level of continuous
power required to meet the constant demand for
electricity on the grid.
Alaska Powerline Podcast May 2, 2024, episode
Understanding the Challenges of Variable Energy
1:49:52 PM
MR. ROVITO responded to a question from Representative Rauscher
regarding the cost of renewable energy and whether it lowered
rates. He commented that he couldn't speak to individual
utility rates but pointed out that renewable integration is more
about integration of the fuel source. He directed attention to
some of the rural communities who have been able to reduce their
reliance on oil with clean energy. The diversification improved
their energy security.
1:51:58 PM
MR. ROVITO, in response to Representative Colombe's comment that
renewables are dirty and unreliable, explained that wind, solar,
and batteries are part of a mix of energy sources. He again
pointed out the importance of a having a variety to pull from to
provide more options and flexibility. He said that the electric
utility members were excited about technologies that might help
with reliability, energy security, or energy supply.
1:53:47 PM
REPRESENTATIVE MEARS emphasized the importance of
diversification, pointing out that when sections of the Railbelt
become "islanded" for example during the Swan Lake fire, having
additional sources of power became vital. Having wind, solar,
and hydro in multiple places allows energy security. She
pointed out that rural communities that had relied entirely on
importing diesel faced challenges when they were isolated from
that fuel source. Additionally, the Railbelt will be reliant on
gas for a long time, so local energy production allows gas to be
banked.
REPRESENTATIVE COULOMBE posited that hydro is clean but
explained that she had concerns about wind and solar because of
the potential hazardous waste from those utilities.
1:56:15 PM
MR. ROVITO described the positive results of energy grants and
moved to slide 12, titled "Renewable Energy Fund (REF)," which
read as follows [original punctuation provided]:
• State grant program designed to reduce and stabilize
energy costs through the development of renewable
energy projects.
• APA supports full funding of the grant program in
the FY26 budget.
• 2023 Report findings (AEA):
• 60% of grants used to support the creation of a
new project.
• 90% of grants used for fuel displacement
purposes.
• 94% of grants have achieved this goal.
• Offset approx. 85 million gallons of diesel
fuel.
• REF grants lower impact on rates and can help
advance projects quicker.
1:58:10 PM
MR. ROVITO addressed the challenges of providing utilities to
isolated rural communities and the need to be innovative. He
showed slide 14, titled "Alaska's Rural Electric Utilities,"
which read as follows [original punctuation provided]:
• Alaska's rural utilities are the most isolated in
the United States.
• This makes reliability even more crucial.
• For most rural communities, there is no neighbor to
draw power from in an emergency.
• Rural utilities often rely on diesel generators due
to their lack of connection to larger grids.
• Ongoing efforts to integrate renewable resources
like wind, solar, hydropower, and batteries to reduce
dependence on diesel.
He discussed the specific challenges in remote areas and the
opportunities as outlined in slide 15, titled "Rural Utilities
Challenges and Opportunities," which read as follows [original
punctuation provided]:
Challenges:
• High cost of fuel and transportation, especially in
remote areas.
• Harsh weather conditions and geographic isolation.
Lack of interconnection.
• Small ratepayer base.
Opportunities:
• Dedicated and talented workforce putting solutions
into play.
• Federal and state investment in infrastructure.
• Technologies becoming more feasible in rural
communities.
• Preservation and continuation of Power Cost
Equalization Program.
• Seeing more collaboration with other entities now in
the
energy space.
• More relationships with IPPs.
2:00:10 PM
MR. ROVITO responded to a question from Representative Saddler
regarding the comparison in cost of batteries versus diesel
fuel. He explained that there is an upfront cost for batteries,
but rural communities have been looking at the long term, trying
to lower reliance on diesel fuel.
2:01:16 PM
MR. ROVITO defined Power Cost Equalization (PCE) and showed
slide 16 which read as follows [original punctuation provided]:
Power Cost Equalization
"The Monetary Infrastructure for Rural Alaska"
• Economic Assistance - The PCE program provides
economic assistance to rural communities where the
cost of electricity can be three to five times higher
than in urban areas.
• Sustainability - By lowering electricity costs, the
program helps ensure the sustainability of remote
economies that depend on reliable, centralized power.
• Continued Support - The PCE program remains a
critical component of Alaska's energy strategy,
supporting rural communities and promoting economic
stability.
Alaska Power Association: The Unified Voice of
Alaska's Electric Utilities
2:02:06 PM
MR. ROVITO advanced to slides 17 and 18, titled "Railbelt
Electric Utilities," which read as follows [original punctuation
provided]:
• Four cooperatives and one municipal utility • Golden
Valley Electric Association, Matanuska Electric
Association (the oldest co-op), Chugach Electric
Association (the largest co-op/electric utility),
Homer Electric Association, City of Seward
• Incorporated as co-ops in the 1940s.
• The Railbelt serves about 75 percent of Alaska's
population.
• The grid is a mix of energy sources:
• Natural gas
• Hydropower Bradley Lake provides 10% of
Railbelt electricity
• Solar
• Wind
• Diesel
• Coal
• Working with Alaska Energy Authority to upgrade and
modernize the Railbelt transmission system.
• This is crucial for maximum use of large-scale
energy projects.
• Working with IPPs to add diverse energy options.
• Constructing community solar projects to allow more
Alaskans to invest in solar energy.
• Railbelt energy costs impact PCE rate for rural
communities.
Above all keeping safety, reliability, and costs
paramount.
2:04:51 PM
MR. ROVITO addressed comments by Representative Rauscher and
Representative Coulombe regarding hydro power. He agreed that
Bradley Lake power has been the cheapest on the Railbelt but
acknowledged that it took some time after coming online to see
the cost benefits. He pointed out that hydro electricity has
been ongoing in Juneau for over 100 years. He explained that
the cost of power in the Railbelt has a direct impact on the PCE
rates for rural Alaska.
2:06:31 PM
MR. ROVITO acknowledged Representative Saddler's question
regarding when the Railbelt transmission lines were built and
how they were funded and said he would provide more specific
information. He added that AEA received a Grid Resilience and
Innovation Partnership (GRIP) grant which will provide a
submarine transmission cable from Nikiski to Beluga to create a
loop in the southern portion of the Railbelt. He segued to
slide 19, titled "The importance of an unconstrained
transmission system," which read as follows [original
punctuation provided]:
• Electric utilities across the country are working to
upgrade their transmission grids.
• Increased Capacity: Upgrading the grid allows
for the integration of more renewable energy sources,
which are often located far from where the power is
needed, and increases the ability to transfer
electricity from one area of the grid to another in a
reliable manner.
• Grid Flexibility: Modernized grids can better
handle the variability and intermittency of renewable
energy, ensuring a stable supply.
• Continuous Power Supply: Redundancy ensures
that there are multiple pathways for electricity to
flow, so if one path fails, others can take over,
reducing the risk of outages.
• Resource Efficiency: Allows for a more
effective use of resources to reduce costs and use of
limited and often expensive fossil fuels.
• Investment in upgrading the transmission
infrastructure of the Railbelt will lead to more
opportunities for diversification and energy security
2:08:24 PM
MR. ROVITO showed slide 20, titled "How can the Legislature
help?" which read as follows [original punctuation provided]:
• Do not take any solutions off the table.
• Work closely with electric utilities to craft
legislation that promotes reliability and
affordability.
• State should be an investment partner on electric
infrastructure upgrades.
• While electric utilities have the same mission, they
face different circumstances.
• It is important to consider the unique aspects of
individual utilities when writing legislation.
2:09:37 PM
MR. ROVITO responded to a question from Representative Elam
regarding the age of the Railbelt transmission systems by
explaining that this was a countrywide situation, and upgrade
solutions vary, but he would provide further information.
^PRESENTATION(S): The Railbelt Reliability Council
PRESENTATION(S): The Railbelt Reliability Council
2:11:20 PM
VICE CHAIR MEARS announced that the next order of business would
be a presentation concerning the Railbelt Reliability Council
(RRC).
2:11:57 PM
ED JENKINS, CEO, Railbelt Reliability Council, presented a
PowerPoint regarding the Railbelt Reliability Council, titled
"The Railbelt Reliability Council (RRC) Presentation to House
Resources" [hard copy included in the committee packet]. He
presented slide 3, titled "The Railbelt Bulk Electric System,"
which read as follows [original punctuation provided]:
• An interconnected network of ~700 miles of high-
voltage transmission lines, providing a physical path
to serve approximately 750 MW peak load from ~2 GW of
installed generating capacity
• Operated by 5 interconnected public utilities, 1 DoD
contractor, and the State of Alaska.
• Encompassing three regions connected by single
transmission lines with stability limits of about 10%
of the peak load.
• Providing electricity for nearly ¾ of Alaska's
population.
He compared the length and generation of the Railbelt system to
the city of Seattle system and described the vulnerabilities and
limitations of its interconnections. He pointed out the
necessity of determining which types of generation systems are
the best fit for the Railbelt.
2:18:34 PM
MR. JENKINS responded to a question from Representative Mears by
explaining that the task is to identify the constraints on the
system, where the constraints are, and take them into
consideration in what it takes to alleviate those constraints as
generation is put into different areas. The goal has been to
have the integrated resource plan completed in 2026. He noted
that the RRC has no authority to build projects, and it will be
up to the utilities to develop the action plan.
2:20:37 PM
MR. JENKINS moved to slide 4, titled "Who is the RRC, A
stakeholder organization," which read as follows [original
punctuation provided]:
The RRC is governed by a thirteen voting-member:
• 6 utilities (CEA, GVEA, HEA, MEA, Seward, Doyon
Utilities)
• Alaska Energy Authority
• 2 Independent Power Producers
• 1 seat advocating for residential-small commercial
interests (Alaska Public Interest Research Group)
• 1 seat advocating for large commercial and/or
industrial users (Fairbanks Gold Mining Inc./ Kinross)
• 1 seat representing electricity consumers who advocate
in support of the reduction of environmentally harmful
greenhouse gas emissions and/or other environmental
concerns regarding the Railbelt electric system
(Renewable Energy Alaska Project)
• 1 independent, non-affiliated member
The RCA and RAPA each hold one non-voting, ex-officio
seat on the Board
2:23:03 PM
MR. JENKIINS responded to a question from Representative
Rauscher by explaining that the utilities appoint their own
members. The independent power producers were appointed by the
organization that represents independent power producers; AEA
appointed its own member; the environmental seat and the two
seats advocating for consumers were chosen after meeting with
the RRC. The Regulatory Affairs & Public Advocacy Section
(RAPA) is a state funded group that advocates for consumers, and
it also holds a seat. He showed slide 5 and described the staff
structure, the independent technical group, and the working
groups and discussed how they represented stakeholder interests.
He explained that the majority of the work is done by the
independent technical group and summarized the tasks of the
working groups. He provided an overview of the operational
standards and how the stakeholders work together to meet those
standards. He moved to slide 6, titled "Who is the RRC," which
read as follows [original punctuation provided]:
Funded by Utility Members
• The RRC is funded through a surcharge that is
allocated to load-serving entities (Railbelt
utilities) through the ERO tariff. Most LSEs have
implemented a transparent per-KWh line item on
customer bills, similar to the Regulatory Cost Charge.
Regulated by the Regulatory Commission of Alaska
• The commission shall adopt regulations governing
electric reliability organizations (AS 42.06.770)
2:27:58 PM
MR. JENKINS moved to slide 7, titled "The RRC's Purpose," and
slide 8, titled "Why the RRC - Reduce Long-Term Costs," which
read as follows [original punctuation provided]:
• Legislatively Established Electric Reliability
Organization
• Establish reliability standards through an open and
transparent public process. (AS 42.05.765)
• Monitor and enforce compliance with reliability
standards, including investigation of alleged and
possible imposition of penalties for confirmed
compliance violations, (AS 42.05.775)
• Develop and adopt a comprehensive Integrated Resource
Plan (IRP) for the applicable Bulk Electric System.
(AS 42.05.780)
• Generation Planning
• Utility Generation
• CEA 2013 - 200MW 3X1 Combined Cycle Facility (w/ ML&P)
• MEA 2014 171MW Reciprocating Engine Facility
• ML&P 2016 129MW 2X1 Combined Cycle Facility
• Transmission System Concerns
2:28:00 PM
MR. JENKINS showed slide 9, titled "Why the RRC Ensure
Reliability," which read as follows [original punctuation
provided]:
Reliability Standards Development and Enforcement
• System Modeling
• Generation and Load Balancing
• Facilities Interconnection
• Transmission Planning
• Monitoring and Enforcement
He explained that the standards related to operational
requirements such as data that was supplied to the system to
limit particular facilities as they were modeled; standards that
required utilities to identify reserves; and cybersecurity
standards for security on the system or physical protection.
These standards and budgets were developed through the working
group process.
2:30:48 PM
MR. JENKINS, in response to a question from Representative
Coulombe, explained that the surcharge was per kilowatt on a
person's bill. He discussed the development of standards,
comparing voluntary standards and regulated standards. He
continued his presentation with an explanation of load shedding
events and how modeling standards could prevent load shedding
issues. He emphasized the continuing need for standards such as
those concerning load-shedding events. A load shedding event
occurs when generation is lost and generation and load have to
match, so if there is not enough generation to meet the load,
shedding load brings that match into place. Utilities carry
reserves to maintain a back-up for when generation is lost.
2:36:24 PM
MR. JENKINS responded to a series of questions from
Representative Mears regarding load shedding events and the
importance of identifying and determining standards. He
emphasized the importance of transmission planning, so the
limitations and areas of concern are known and taken into
account during the planning of generation resources.
2:38:48 PM
MR. JENKINS responded to questions from Representative Rauscher
and Representative Coulombe regarding what constitutes
enforcement. He explained that the RRC has the ability to levy
fines on utilities if they were not complying with standards.
He described the process, which included conducting a hearing
regarding compliance with the standard. The result of the
hearing might be a fine or a requirement placed to ensure future
compliance. He explained that the fines would go to offset the
budget of the RRC.
2:40:57 PM
MR. JENKINS moved to slide 10, titled "The RRC and the RTO,"
which read as follows [original punctuation provided]:
The RRC develops a regional Integrated Resource Plan
to provided the greatest value to Railbelt utility
members and customers
The RTO administers a regional tariff to recover
transmission costs equally to all Railbelt utility
customers and members
Both look at the Railbelt as a single region
RRC develops a regional generation plan, and the RTO
removes transmission wheeling rates to facilitate the
operation of the plan
He described how wheeling charges work and how the RRC regional
plan helped avoid this type of cost.
2:43:50 PM
MR. JENKINS addressed a question from Representative Rauscher
regarding HB 307 which passed in 2024 and addressed wheeling
rates, explaining how the legislation created the RTO which
changed the way wheeling rates were calculated. He described
the current status of the RRC and showed slide 11, titled
"Program Status Integrated Resource Planning," and slide 12,
titled "Program Status - Standards," which read as follows
[original punctuation provided]:
Integrated Resource Planning
• Staffing
• Policy Development
• Independent Technical Expertise
• 2026 Completion
Standards Development
• Weekly operational standards working group
meetings
• Four standards before the RCA for approval
• Additional standards before the RRC Board for
transmittal
• Critical Infrastructure Protection standards
development started
• 28 Standards to be completed in 2025
2:48:10 PM
LOU FLOURENCE, Chair, Railbelt Reliability Council, described
the transformation that resulted from the new structure
governing the Railbelt utilities. He clarified the differences
between the RTO and the RRC and their relationship to the
integrated resource plan.
2:50:06 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:50 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Railbert Reliability Council Presentation.pptx |
HRES 2/5/2025 1:00:00 PM |
|
| Alaska's Electric Utilities - APA.pdf |
HRES 2/5/2025 1:00:00 PM |