Legislature(2025 - 2026)BUTROVICH 205
05/16/2025 03:30 PM Senate RESOURCES
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| Audio | Topic |
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| Start | |
| Presentation(s): Alaska Railbelt Reliability Council Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
May 16, 2025
3:30 p.m.
MEMBERS PRESENT
Senator Cathy Giessel, Chair
Senator Matt Claman
Senator Forrest Dunbar
Senator Scott Kawasaki
Senator Shelley Hughes
Senator Robert Myers
MEMBERS ABSENT
Senator Bill Wielechowski, Vice Chair
OTHER LEGISLATORS PRESENT
Representative Ky Holland
COMMITTEE CALENDAR
PRESENTATION(S): ALASKA RAILBELT RELIABILITY COUNCIL
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ED JENKIN, President and Chief Executive Officer (CEO)
Alaska Railbelt Reliability Council (RRC)
Anchorage, Alaska
POSITION STATEMENT: Co-presented the Alaska Railbelt Reliability
Council Update.
LOU FLORENCE, Chair
Board of Directors and Executive Committee
Alaska Railbelt Reliability Council (RRC)
Fairbanks, Alaska
POSITION STATEMENT: Co-presented the Alaska Railbelt Reliability
Council Update.
ACTION NARRATIVE
3:30:49 PM
CHAIR GIESSEL called the Senate Resources Standing Committee
meeting to order at 3:30 p.m. Present at the call to order were
Senators Myers, Dunbar, Hughes, Claman, and Chair Giessel.
Senator Kawasaki arrived thereafter.
^PRESENTATION(S): ALASKA RAILBELT RELIABILITY COUNCIL UPDATE
PRESENTATION(S): ALASKA RAILBELT RELIABILITY COUNCIL UPDATE
3:31:20 PM
CHAIR GIESSEL announced the presentation, Alaska Railbelt
Reliability Council Update.
3:31:54 PM
ED JENKIN, President and Chief Executive Officer (CEO), Alaska
Railbelt Reliability Council (RRC), Anchorage, Alaska,
introduced himself and provided a brief history of his work in
the utility industry.
3:33:28 PM
LOU FLORENCE, Chair, Board of Directors and Executive Committee,
Alaska Railbelt Reliability Council (RRC), Fairbanks, Alaska,
introduced himself and provided a brief history of his work on
the RRC Board of Directors (RRC Board) and in the utility
industry.
3:34:32 PM
MR. JENKIN advanced to slide 2 and explained the agenda for the
presentation:
[Original punctuation provided.]
Agenda
? The Railbelt Power System
? Who is the RRC
? The RRC's Purpose
? Why the RRC was Formed
? The RRC and the RTO
? Standards and IRP Development
3:35:12 PM
MR. JENKIN advanced to slide 3, containing a map of various
electric associations and the City of Seward:
The Railbelt Bulk Electric System
? An interconnected network of approx. 700 miles of
high voltage transmission lines, providing a
physical path to serve approximately 750 MW peak
load from approx. 2 GW of installed generating
capacity
? Operated by 5 interconnected public utilities, 1
Department of Defense (DoD) contractor, and the
State of Alaska.
? Encompassing three regions connected by single
transmission lines with stability limits of about
10 percent of the peak load.
? Providing electricity for nearly three quarters
of Alaska's population.
MR. JENKIN directed attention to the map on slide 3. He pointed
out the following three regions and associated electric
utilities:
North: Golden Valley in the North
Central: Matanuska Electric Association, Chugach
Electric Association the City of Seward
South: Homer Electric
MR. JENKIN explained how a lack of regional planning has
impacted each utility's design and offered examples. He
emphasized that each utility has designed its system to meet its
own needs within its local region. He noted a lack of emphasis
on communication between the various regions and offered an
example to illustrate the impact this has on potential projects.
3:37:09 PM
MR. JENKIN advanced to slide 4:
[Original punctuation provided.]
Who is the RRC?
A stakeholder organization
The RRC is governed by a thirteen voting-member board:
? 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.
MR. JENKIN noted that the Regulatory Commission of Alaska (RCA)
regulates RRC, while Regulatory Affairs and Public Advocacy
(RAPA) intercedes on behalf of the public during RCA
proceedings. He emphasized the importance of stakeholder input
and briefly discussed the makeup of the board. He explained the
board's role in moving plans and projects forward.
CHAIR GIESSEL asked Mr. Jenkin to define RAPA.
MR. JENKIN could not recall what RAPA stands for; however, he
said it is a public advocacy group that is a part of the State
of Alaska. He reiterated that RAPA advocates for the public
during RCA proceedings.
3:39:47 PM
MR. JENKIN advanced to slide 5:
[Original punctuation provided.]
Who is the RRC
? CEO and Staff
? Independent Technical Group (TAC)
? Working Groups
MR. JENKIN explained that he is the only employee on the board
and he currently has two staff members. He shared the goal of
having one engineer and two support staff. He briefly discussed
the plan for bringing RRC into compliance with adopted
standards, which will include bringing on additional staff.
3:40:28 PM
MR. FLORENCE returned to Chair Giessel's question about RAPA. He
said that Regulatory Affairs and Public Advocacy (RAPA) is an
office of the Attorney General within the State of Alaska. He
confirmed that RAPA typically intervenes in matters that come
before RCA.
3:40:54 PM
MR. JENKIN continued to discuss slide 5. He described the
Technical Advisory Council (TAC). He emphasized that TAC is an
independent council, providing independent oversight and product
development. He briefly discussed the working group and
highlighted the role of stakeholders and their representatives.
In addition, he noted the process for public participation and
comment periods. He stated that members can apply to become a
part of the working group and TAC reviews those requests. He
explained that the working group is set up to ensure balanced
representation and discussion.
3:42:51 PM
CHAIR GIESSEL asked whether TAC members are paid for their work.
MR. JENKIN replied yes.
3:43:01 PM
MR. JENKIN advanced to slide 6 and provided an overview of TAC
members and their work in the industry. He noted that RRC would
add one additional member to TAC as it moves into the Integrated
Resource Plan (IRP) process:
[Original punctuation provided.]
Who is the RRC
The TAC
? David Hilt - Founder, Grid Reliability
Consulting, LLC, Marion, Illinois. Past NERC VP
responsible for the development of their
Compliance and Monitoring Program.
? Haider Naveed - Senior NERC Compliance
Specialist, Electric Power Engineers, Austin,
Texas. 15 years of international industry
experience.
? Todd Ponto - Director of OT and NERC Compliance,
ScottMadden, Raleigh, North Carolina. Supported
the develop the Utility Consensus Critical
Infrastructure Protection Standards in 2018.
? David Burlingame - Principal, Electric Power
Systems, Anchorage, Alaska. 40 years of
engineering and operations experience focusing on
islanded systems.
3:45:24 PM
CHAIR GIESSEL asked whether RRC recruited TAC members or whether
they volunteered.
3:45:31 PM
MR. JENKIN replied that Mr. Burlingame was hired to represent
Seward early in the formulation of RRC. RRC reached out to the
other members. He briefly discussed Mr. Hilt, his role on TAC,
and his interest in working with RRC.
3:46:15 PM
MR. JENKIN advanced to slide 7:
[Original punctuation provided.]
Who is the RRC
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)
MR. JENKIN commented that the surcharge is minimal relative to
fuel costs. He opined that if IRP can decrease the cost of fuel,
the value of RRC to the railbelt will become clear.
3:47:32 PM
CHAIR GIESSEL recalled that RRC must be certificated. She asked
why this is important, what the certification process consists
of, and what this means for RRC.
3:47:52 PM
MR. JENKIN confirmed that RRC is certificated. He explained that
RCA is the oversight organization for RRC. He briefly discussed
the regulatory requirements RCA has set out. He described the
certification process. He emphasized that RRC had to demonstrate
fitness, willingness, and an ability to perform the necessary
tasks. He said the dynamic between RCA and RRC reflects the
structure and process of the Federal Energy Regulatory
Commission (FERC) and the [North American Electric Reliability
Corporation (NERC)]. He clarified that Alaska is not under FERC
and/or NERC jurisdiction.
3:48:07 PM
SENATOR KAWASAKI joined the meeting.
3:49:38 PM
MR. JENKIN advanced to slide 8:
[Original punctuation provided.]
The RRC's Purpose
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)
MR. JENKIN stated that RRC must consider transmission alongside
end-use activities to improve load efficiency as it formulates
the IRP.
3:51:06 PM
MR. JENKIN advanced to slide 9:
[Original punctuation provided.]
Why the RRC:
Reduce Long-Term Costs
? 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
MR. JENKIN explained that the utilities in this region were
highly interconnected, which allowed large amounts of power to
reliably and firmly flow between them. He briefly discussed the
generation facilities built by each utility and the impact the
new facilities had on generation, fuel usage, and transmission
capabilities.
3:53:00 PM
MR. JENKIN continued to discuss the facilities listed on slide
9. He emphasized the importance of efficiency. He noted the
combined megawatt generation of the facilities. He briefly
discussed the role of RRC in regional planning and in making
determinations for future generation resources, which can lead
to greater generation and transmission efficiency. He stated
that RRC ensures there is a centralized, regional approach that
takes advantage of opportunities to put the best mix of
generation into place for the railbelt.
3:55:25 PM
MR. JENKIN advanced to slide 10:
[Original punctuation provided.]
Why the RRC Ensure Reliability
Reliability Standards Development and Enforcement
? System Modeling
? Generation and Load Balancing
? Facilities Interconnection
? Transmission Planning
? Monitoring and Enforcement
MR. JENKIN stated that, historically, a lack of standards -
and/or a lack of enforcement of standards - has had a negative
impact on the system. He offered an example to illustrate the
reliability issues that the development and enforcement of
standards would address.
3:57:55 PM
MR. JENKIN advanced to slide 11:
[Original punctuation provided.]
The RRC and the RTO
? The RRC develops a regional Integrated Resource
Plan to provide 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
MR. JENKIN offered an example of wheeling rates, which are fees
that one utility will levy against another to move power across
that utility's transmission system. He explained that this
creates a financial barrier, limiting projects that would
otherwise be economic and that would allow for increased
railbelt efficiency.
4:01:00 PM
MR. JENKIN continued to discuss slide 11. He stated that the
Railbelt Transmission Organization (RTO) eliminates wheeling
rates. He explained that transmission costs are now collected
from end users. He said that eliminating wheeling costs allows
more projects to move forward and increases system efficiency.
He contrasted the RTO with the RRC and the Integrated Resource
Plan (IRP). He explained that the IRP takes a regional approach,
considering ways to develop generation that is most efficient
for the region. He offered examples to illustrate the benefit of
a regional approach. He emphasized the importance of RTO in this
process, as removing wheeling rates is critical to developing
generation with regional efficiency. He reiterated that RRC
develops the IRP and RTO facilitates the IRP by removing
barriers. He noted that this does not require the operation and
operating areas remain separate. He explained that successful
implementation of the IRP requires coordination amongst the
various operating areas. He reiterated the importance of RRC and
RTO in developing and implementing a plan that is of greatest
value to the railbelt.
4:03:25 PM
MR. JENKIN opined that RTO is a good organization to address the
regional tariff, as it is made up of transmission owners. He
reiterated that RRC - a stakeholder organization - is
responsible for planning and briefly discussed the ways
stakeholder input benefits planning.
4:04:06 PM
CHAIR GIESSEL expressed appreciation for the explanation of the
ways RRC and RTO work together and of the overall goal of [House
Bill 307]. She briefly discussed the historical timeline and
said the issue ultimately required a legislative solution.
4:04:51 PM
SENATOR CLAMAN noted that the RTO board is made up of
transmission owners and asked who the transmission owners are.
4:05:00 PM
MR. JENKIN replied that the transmission owners are the
following railbelt utilities:
? Golden Valley Electric Association
? Matanuska Electric Association, Inc.
? Chugach Electric Association
? City of Seward
? Homer Electric Association, Inc.
? Alaska Energy Authority
MR. JENKIN noted that he is an ex-officio member of the RTO
board. He clarified that, while he is a member of the RTO board,
he is speaking in his capacity as a representative of RRC and is
not speaking for RTO.
CHAIR GIESSEL commented that a future presentation from RTO
could be helpful.
4:05:54 PM
SENATOR CLAMAN observed that there is some overlap between RRC
and RTO board membership.
MR. JENKIN said this is correct. He said the aforementioned
utilities are also on the RRC board. He explained that RTO is
being set up in such a way that the cost of creating a
stakeholder organization is reduced.
4:06:35 PM
MR. FLORENCE agreed that there is overlap between the RTO board
and the RRC board membership; however, he clarified that the
role of members on the RTO Board and the RRC Board are distinct.
He explained that on the RTO board, a representative for the
utility represents that utility. He contrasted this with the RRC
board, where those same individuals represent stakeholder
classes (and not the entities with which they are typically
associated). He said that the RRC board is governed by specific
regulations that specify who the members must represent. He
emphasized that the RRC board often discusses board members'
duties and responsibilities and reiterates to members that they
are not representing the entities but the stakeholders.
MR. JENKIN added that, when acting on behalf of RRC, members are
required to represent the best interest of the RRC. Conversely,
members of the RTO board represent the best interest of the
utility, not the best interest of RTO.
4:08:15 PM
MR. JENKIN advanced to slide 12:
[Original punctuation provided.]
Standards and IRP Development
Applicable RRC Rules and Policies
? ER7 - Public Notice and Meetings Rule
? Notice Content
? Notice Timeline
? ER1 - Product Development Rule
? Invitation and Schedule
? During Development
? Board Submission
? RCA Report
? BPR602 - TAC Structure and Process Procedure
? Task Order Work Plan and Budget
? Formation of the Working Group
? Manager's Recommendation
? Dissents
? TAC Recommendation
? Board Action
MR. JENKIN briefly discussed the rules and regulations that
govern RRC processes. The processes of RRC must be open to the
public, balanced between energy users and producers, and
balanced between utilities and non-utilities.
4:10:30 PM
MR. JENKIN continued to discuss slide 12. He explained how the
package RRC presents to RCA lays out the public process in a
detailed way that hopefully gives RCA confidence that RRC has
followed a robust public process. He highlighted BPR602, which
is an internal policy governing TAC structure and process. He
briefly explained the process, highlighting the procedure for
recommendation and dissent.
4:12:55 PM
MR. JENKIN advanced to slide 13, containing an infographic
illustrating the various energy generation and transmission
sites:
[Original punctuation provided.]
Standards and IRP Development
Integrated Resource Planning
? Board Workshop and Kickoff
? Independent Technical Expertise
? Policy Development
? Define Objectives and Greatest Value
? 2026 Completion
MR. JENKIN provided an overview of the IRP planning process to
date. The board workshop included a walk-through of the process
that will be used to develop the IRP. He indicated that
additional work is necessary to finalize the process. He said
this is similar to the TAC process outlined on slide 12. He
stated that the IRP process would kickoff in May 2025. RRC is
developing the independent technical expertise contracts. He
stated that RRC is ready to begin working group meetings. He
provided a brief overview of working group meetings. He
emphasized the importance of board approval and offered
examples. He stated that the RRC Board makes the final
determination regarding the proposed objectives. He stated that
the final plan must produce the greatest value for the railbelt.
4:15:04 PM
SENATOR DUNBAR commented that plans matter the most when they
change behavior. He asked what changes Mr. Jenkins foresees as a
result of the process. He clarified that he is primarily asking
about changes that would impact the utilities.
4:15:54 PM
MR. JENKIN answered that the process would drive a regional
approach. He explained that utilities currently do their own
transmission and resource planning and briefly discussed this
process. While this will continue, it will become part of a
regional plan.
4:18:00 PM
MR. JENKIN explained that the IRP would consider how individual
utility's projects fit into the regional approach. He offered
examples to illustrate this change. He said that projects
previously developed by a utility to meet the individual needs
of that utility would be reconsidered within the context of the
regional approach. This also applies to future railbelt needs
and future projects. He pointed out that some projects will not
meet the "greatest value" requirement, while others may meet
this requirement and be included in the IRP. He explained that
projects in the IRP are considered "justified" and implied that
this would increase the likelihood of receiving RCA approval for
those projects.
4:19:52 PM
SENATOR HUGHES offered a hypothetical situation to illustrate
the potential for change between now and the completion of the
plan in 2026. She asked if the plan would be updated on a
regular basis.
4:20:20 PM
MR. JENKIN replied yes. He said RRC will review the plan every
two years (at which time RRC will make any necessary changes)
and will renew the plan every four years. He explained that RRC
is required to renew the plan every four years unless RCA has
approved deferral. He stated that the two- and four-year cycle
is relatively short for IRP creation. He said RRC would likely
be continually updating the IRP and briefly described what that
would entail.
4:21:13 PM
SENATOR CLAMAN directed attention to slide 9 and the power
plants build between 2013-2016. He shared his understanding that
utilizing a regional approach during that timeframe might have
resulted in the utilities building fewer power plants. He asked
if this is one example in which a regional approach may have led
to a different plan.
4:21:53 PM
MR. JENKIN replied yes. He clarified that he is not implying
that three plants would not have been built. However, regional
planning might have changed the capacity and design of each. He
agreed that the proposed projects would have been rolled into
the IRP, and explained how the IRP guidance could have informed
the utilities' projects. He added that inclusion in the IRP
would have increased the likelihood of securing RCA approval and
financing.
4:22:42 PM
SENATOR HUGHES asked who approves project plans.
4:23:03 PM
MR. JENKIN replied that RCA approves project plans and briefly
described that process.
4:23:19 PM
SENATOR HUGHES commented that RRC would be very familiar with
plans once they reach the RCA approval stage. She asked whether
RRC would make recommendations to RCA regarding project plans.
4:23:28 PM
MR. JENKIN replied that RRC would have the ability to intercede
in the RCA proceeding and shared his understanding that RRC
would then become a party to the proceeding. RRC could then
provide input about the project.
4:23:47 PM
MR. JENKIN advanced to slide 14:
[Original punctuation provided.]
Standards and IRP Development
Standards Development
? Weekly working group meetings
? Four standards before the RCA for approval
? Two additional standards passed by RRC Board
? Six standards coming before the Board in June
? 28 Standards to be approved by the RRC in 2025
MR. JENKIN stated that standards development is ongoing. He said
the first four standards were noncontroversial and were chosen
specifically to test the process and ensure it worked well.
Those standards have been approved by RRC and are now awaiting
RCA approval. RRC is waiting to observe the RCA approval process
before submitting additional standards for approval. He said
that RRC expects to see six critical infrastructure and
protection standards in July 2025. He indicated that these are a
high priority.
4:25:21 PM
SENATOR MYERS recalled that RCA would update the IRP every two
years and would create a new plan every four years. He asked how
this timeline would integrate with the RCA approval timeline. He
shared his understanding that RCA can take 2-4 years to approve
rate cases, which can put utilities into a continuous cycle in
which one rate case is approved and the next is submitted. He
asked whether RRC has any concerns about how the RCA approval
timeline could potentially impact the IRP process.
4:25:57 PM
MR. JENKIN replied that RCA has 180 days to deliberate and make
a determination regarding tariff revision standards. He shared
his understanding that RCA can also take no action, in which
case the standard would become law after 45 days. He said that
because RRC has not yet sent an IRP to RCA for approval, he
cannot speak to that timeline and process.
4:27:39 PM
MR. JENKIN continued to discuss slide 14. He said RRC has
budgeted for 28 standards in 2025. There has been a great deal
of interaction amongst stakeholder groups during this process,
which is expected. He opined that this high level of interaction
is good, as it provides a final product that has been well-
vetted amongst all stakeholders.
4:28:25 PM
MR. FLORENCE said that the first task of the RRC Board was to
consider legislative and regulatory requirements and to put the
necessary rules, procedures, and processes in place to ensure
that the actions of RRC are done in accordance with those
requirements. He explained that the RRC Board completed the bulk
of that work prior to hiring Mr. Jenkin as CEO. He said the
board's second task was to hire the CEO. He stated that since
hiring Mr. Jenkin, the work has picked up pace. He explained
that, at this time, the RRC Board is tasked with ensuring that
the process is unfolding as planned.
MR. FLORENCE emphasized that the RRC Board is not a technical
board. He said the board exists to ensure that the stakeholder
engagement process is occurring - and that the process is
aligned with the associated rules and regulations. He added that
the conversations with the workings groups and TAC are technical
but can become animated. The meetings are open to the public. He
said that, from the board's perspective, the process is working
very well. He indicated that the development of standards is
moving forward at a good pace. He commented that the standards
can be complicated. He said the IRP process is also coming along
well. He stated that the RRC Board is tasked with ensuring that
the work is done timely, and from board's perspective the IRP
process is going well.
4:30:57 PM
SENATOR HUGHES asked Mr. Florence to share his background as it
relates to these issues.
4:31:12 PM
MR. FLORENCE said that most of his work history is in power
generation and Alaska is the third jurisdiction in which he has
worked. He briefly described his work history, highlighting his
work in the development and implementation of reliability
standards. He commented that Alaska is unique in that the
railbelt grid is geographically large but electrically it is
small. He noted that the RRC Board has both local and nationwide
experts. He emphasized that Alaska requires unique solutions but
faces the same reliability and planning problems as other
jurisdictions. He opined that, of the jurisdictions he has
worked in, Alaska is both the most challenging and the most
interesting.
4:32:49 PM
CHAIR GIESSEL thanked the presenters. She noted the perception
that RRC had been making slow progress and observed that the
progress has sped up significantly since hiring the CEO, Mr.
Jenkin. She commented that it is gratifying to consider the
recent passage of legislation that created RTO and helped to
amplify the work of RRC.
4:34:27 PM
There being no further business to come before the committee,
Chair Giessel adjourned the Senate Resources Standing Committee
meeting at 4:34 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| RRC Presentation to Senate Resources 05.16.25.pdf |
SRES 5/16/2025 3:30:00 PM |