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.