RCA opens docket for SB123 regs

Alan Bailey

for Petroleum News

The Regulatory Commission of Alaska has opened a docket for developing regulations for implementing new statutes introduced by Senate Bill 123, a bill enabling the commission to regulate electric reliability organizations, referred to as EROs. The bill also grants the RCA regulatory authority over the construction of new major generation and transmission facilities, and over integrated resource planning for electricity supplies. Gov. Mike Dunleavy recently signed SB 123 into law, after the State Legislature passed the legislation.

The six Alaska Railbelt electric utilities are in the process of forming the Railbelt Reliability Council, a form of ERO for the Alaska Railbelt electricity system. The overall objective is to enable a more unified approach to the management of the system and, hence, to minimize the cost of electricity for consumers while maintaining acceptable levels of electricity supply reliability.

Implementation of the RRC and its regulation by the RCA required statutory and regulatory changes, to clarify the RCA’s regulatory authority - hence the passage of SB 123 and, now, the need for the RCA to develop new regulations.

In a May 18 order, establishing the new regulatory docket, the commission commented that as a first step in developing the regulations it is necessary to identify issues that need to be vetted by institutions with interests in the regulations. Consequently, the commission is scheduling a series of technical conferences to receive input on the appropriate regulatory framework relating to SB 123. The first of these conferences, to be held on June 3, will consider ERO certification standards; rules and definitions required to ensure the independence of an ERO board of directors; and additional rules and standards needed to ensure the equitable impact of the ERO on interconnected electricity entities, including the allocation of ERO costs, the impartial enforcement of reliability standards, and the use of a public process for ERO activities.

- ALAN BAILEY