SENATE BILL NO. 217 "An Act relating to the taxation of independent power producers; and increasing the efficiency of integrated transmission system charges and use for the benefit of ratepayers." 9:33:25 AM Senator Bishop MOVED to ADOPT the committee substitute for SB 217, Work Draft 33-GS2489\D (Walsh, 5/9/24). Co-Chair Olson OBJECTED for discussion. KEN ALPER, STAFF, SENATOR DONNY OLSON, explained the CS. He addressed the Explanation of Changes (copy on file): Change 1 Removed the increased qualifications for Regulatory Commission of Alaska (RCA) commissioners, that required a specific number of years of professional experience. Change 2 Add a technical correction to the regulation of telecommunications, which is preventing implementation of SB83 as passed in 2019. Change 3 Clarified and expanded sections that describe how the Railbelt Transmission Organization (RTO), while housed within the Alaska Energy Authority (AEA), is a regulated utility for the specific purpose of filing a single cost recovery tariff to replace the current system of multiple wheeling rates. This is in Sections 2,15, and 16 of the committee substitute. Change 4 Added an immediate effective date to Section 4 of the bill, which allows the RCA to consider factors other than cost when determining whether an electric utility's rate is just and reasonable. Change 5 Removed the section related to net metering, which required power companies to credit customers who generate excess power and provide that power into the utility's system. Change 6 Removed sections that said the RCA may not require pre-approval for certain smaller electrical generation or storage projects. Change 7 Removed sections that exempted certain independent power producers from state and local property, income, and excise taxes if they sold their power only to cooperative or municipal utilities. Change 8 Added a requirement one of the new AEA Board's members must have expertise or experience managing a municipally owned utility located off the road system. Change 9 Removed several powers and duties previously given to the Railbelt Transmission Organization, including managing and operating the backbone transmission assets and performing integrated transmission planning. Eliminated a separate board for the RTO, providing a governance structure made up of the Railbelt utilities, the AEA, and the CEO of the Electric Reliability Organization 9:37:58 AM Co-Chair Olson WITHDREW his objection. There being NO further OBJECTION, it was so ordered. 9:38:02 AM Co-Chair Stedman noted that there were significant differences between the current bill version and previous versions. 9:38:28 AM Mr. Alper replied that the most substantial piece was the pulling back of the expanded powers to the Railbelt Transmission Organization (RTO). He noted that the RTO had not been in the original bill version but had been added in previous committee, and then curtailed in the current version. 9:39:57 AM Senator Kiehl asked whether the Regulatory Commission of Alaska's consideration of cost had been removed from the bill. 9:40:15 AM Mr. Alper replied that the cost remained a factor and explained that the intention of the section was to ensure that cost was not the primary factor. 9:40:53 AM SB 217 was heard and HELD in Committee for further consideration. 9:41:09 AM AT EASE 9:42:34 AM RECONVENED