Governor signs electric system bill into law

Alan Bailey

Petroleum News

On April 29 Gov. Mike Dunleavy signed into law Senate Bill 123, a bill that will, among other things, give the Regulatory Commission of Alaska authority over an electric reliability organization, in particular for the Alaska Railbelt electricity system. The bill, a major milestone in moves to improve the efficiency of the supply of electricity in the Railbelt, also authorizes the RCA to regulate the construction of major new generation and transmission facilities in the electricity grid, and to regulate integrated resource planning for the system.

In December all six of the utilities that operate the Railbelt electrical system signed a memorandum of understanding for the formation of the Railbelt Reliability Council, a form of electric reliability organization for the Railbelt. The RRC, regulated by the RCA, will maintain and enforce reliability standards; administer rules for open access to the grid; conduct Railbelt-wide system planning; and investigate the economic value of security constrained economic dispatch, a protocol for making maximum use of the most efficient available power generation.

The passage of SB123 into law will now enable the establishment of the RRC to proceed, with the new organization potentially in place by mid-2021.

“The Regulatory Commission of Alaska thanks Governor Dunleavy for signing SB 123,” said RCA Chairman Robert Pickett. “A cooperative effort of legislative leadership, the RCA, utilities, independent power producers and other public interest representatives contributed to this successful outcome, which started in 2014 at the direction of the Legislature. The Alaska public will benefit from more reliable and effective electric utility service.”

“SB 123 will foster cooperation among the interconnected utilities and ensure consumer needs are efficiently and reliably met,” said Sen. John Coghill, R-North Pole, chairman of the Special Senate Railbelt Electric System Committee.

- ALAN BAILEY