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Statutes for electric reliability?
RCA suggests legal framework within which a regulated entity could oversee the operations of the Railbelt electricity grid Alan Bailey Petroleum News
In conjunction with the drafting of a letter to the Alaska Legislature providing an assessment of the status of efforts towards a more unified approach to the operation of the Alaska Railbelt electrical system, the Regulatory Commission of Alaska has published a draft of suggested statutory language for enabling unified oversight of the system. The commission has been concerned that current Alaska statutes do not provide it with clear legal authority over the way in which the more unified system would operate.
The commission has asked for public comments on the potential statutory language by April 4. The agency is putting forward the language as a suggestion rather than a formal proposal for a new bill to be considered by the Legislature - any bill would need to be introduced by the governor’s office or by a legislator.
Electric reliability organization Core to the issues at stake are the formation of what the commission refers to as an electric reliability organization, or ERO, an organization that would maintain and enforce a set of electric reliability standards for the operation of what is referred to as the “bulk power system,” those components of the electrical system that operate at relatively high voltages as part of the transmission system and electricity supplies into that system.
There are issues relating to how an ERO would be governed and regulated, and what the scope of its authority would be.
Four of the six Railbelt electric utilities have already signed a memorandum of understanding for the formation of an ERO in the form of an entity that they term the Railbelt Reliability Council, but the RCA has been unsure about the terms under which the commission would regulate this organization.
A legal framework The proposed statutory language sets a legal framework under which an ERO would be formed, certified, regulated and funded, with provisions for the RCA to mandate the formation of an ERO, should nobody file for ERO formation within six months of the proposed statutes becoming law.
The ERO would maintain and enforce reliability standards for the electrical system. The standards would be part of the ERO’s tariff, with the RCA regulating the ERO and its tariff. All utilities connected to the transmission system would be required to participate in the ERO and follow the ERO’s rules for the operation of the system.
Planning authority The ERO would also be required to maintain a plan for ensuring that the reliability standards for the electrical system are met cost effectively. That plan must include consideration of what additional generation, transmission, energy conservation or other measures may be required to enable the utilities to meet the needs of their customers. The commission would have the authority to approve, reject or modify the plan.
And the construction of any major new generation or transmission facility would require pre-approval by the commission.
The proposed language leaves the mechanism for the governance of the ERO somewhat open, merely saying that governance would be by an independent board, a balanced stakeholder board, or some combination of these two approaches. However, the RCA and the Regulatory Affairs and Public Advocacy section of the state Department of Law would both be ex-officio board members.
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