NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE REGULATORY COMMISSION OF ALASKA

The REGULATORY COMMISSION of ALASKA (Commission) proposes, in Docket R-13-002, to adopt regulations in Title 3 of the Alaska Administrative Code, dealing with the integration and purchase of electric power between an electric utility and a Qualifying Facility (QF), including the following:

1. 3 AAC 50.760 is proposed to be changed as follows: to allow an electric utility to assess a QF integration fees based on the costs of integrating the QF into the electric utility’s system.
2. 3 AAC 50.770 is proposed to be changed as follows:
   1. to require a utility claim that it has encountered an operational circumstance under which it is allowed to discontinue the purchase of electric power from a QF, to be subject to verification by the Commission;
   2. to replace the methodology for calculating a non-firm and firm avoided cost price for purchase of power from a QF with a general methodology for developing an avoided cost price;
   3. to include a specific methodology for calculating the energy and capacity price for a QF with a design capacity of 100 kilowatts or less;
   4. to allow a QF the option of either providing energy at a rate determined at the time the QF delivers power to the electric utility, or pursuant to a legally enforceable obligation for the delivery of energy over a specified term; and
   5. to make all data submitted by an electric utility supporting rates for the purchase of power from a QF subject to Commission review.
3. 3 AAC 50.790 is proposed to be changed as follows:
   1. to clarify under what conditions an electric utility must submit a tariff authorizing interconnection, purchases, and sales with a requesting QF;
   2. to specify the data an electric utility must maintain to provide to QFs upon request and how frequently that data must be updated; and
   3. to provide dates by which electric utilities are required to implement the above amended regulations.
4. 3 AAC 50.820 is proposed to be changed as follows: to amend the definition of the terms “avoided costs”, “firm power”, and “qualifying facility”; to repeal the definition of “non-firm power”; and to include definitions for “integration fees” and “interconnection costs”.

You may comment on the proposed regulation, including the potential costs to private persons of complying with the proposed changes, by submitting written comments to the Regulatory Commission of Alaska at 701 W. 8^th Avenue, Suite 300, Anchorage, Alaska 99501.  Comments may also be submitted through our website at:  https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx by using the “submit comment” link associated with this notice.  The comments must be received no later than 5:00 p.m. on April 3, 2015.  Reply comments must be filed by April 24, 2015.  Please reference Docket R-13-002.

If you are a person with a disability who needs a special accommodation in order to participate in this process, please contact Joyce McGowan at (907) 276-6222, toll-free at 1-800-390-2782, TTY (907) 276-4533, or via electronic mail to rca.mail@alaska.gov, no later than March 31, 2015, to ensure that any necessary accommodations can be provided.    

Since this is a regulation proceeding, commenters are not required to serve their comments on the other entities set out on the service list of this Notice.  Interested persons may request from the Commission copies of the comments filed in this proceeding.  For a copy of the proposed regulation changes and related material, contact the Commission’s Records & Filings Section at the above address or at 907-276-6222 or go to: http://rca.alaska.gov/RCAWeb/home.aspx.  Those seeking to obtain the materials at the website may select All Open Rule-making Dockets under Top Searches, and choose Matter Number R-13-002.

After the public comment period ends, the Regulatory Commission of Alaska will either adopt the proposed regulation changes or other provisions dealing with the same subject, without further notice, or decide to take no action.  The language of the final regulations may be different from that of the proposed regulations.  YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED.

Statutory Authority: AS 42.05.141; AS 42.05.151

Statutes Being Implemented, Interpreted, or Made Specific: AS 42.05.141; AS 42.05.151; AS 42.05.291; AS 42.05.301; AS 42.05.361; AS 42.05.381; AS 42.05.391

Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation.

DATED at Anchorage, Alaska, this 4^th day of March, 2015.

REGULATORY COMMISSION OF ALASKA

Robert M. Pickett
Chairman

ADDITIONAL REGULATIONS NOTICE INFORMATION

(AS 44.62.190(g))

1.         Adopting agency:  Regulatory Commission of Alaska  

2.         General subject of regulation: Cogeneration and Small Power Production   

3.         Citation of regulation (may be grouped): 3 AAC 50.750 – 3 AAC 50.820   

4.         Department of Law file number, if any:                                                     

5.         Reason for the proposed action:

(X)       Compliance with federal law or action (identify): 16 U.S.C. ch. 46 § 2601 et seq.     

(   )       Compliance with new or changed state statute

(   )       Compliance with Federal or state court decision (identify)    

(   )      Development of program standards

(X)       Other (identify): improve clarity and administrative efficiency of the regulations      

6.         Appropriation/Allocation:    

7.         Cost of implementation to the state agency and available funding (in thousands of dollars):

Initial Year       Subsequent

FY  2015          Years

Operating Cost                         $                0    $                0

Capital Cost                             $                0    $                0

1002 Federal receipts               $                0    $                0

1003 General fund match        $                0    $                0

1004 General fund                  $                0    $                0

1005 General fund/

   program                                $                0    $                0

1037 General fund/

   mental health                        $                0    $                0

Other                                       $                0    $                0

8.         The name of the contact person for the regulations:

Name: Jeffrey Davis                                                               

Title: Administrative Law Judge                                             

Address: 701 W. Eighth Avenue, Suite 300, Anchorage, AK 99501              

Telephone:  907-263-2176                                                     

E-mail address  jeffrey.davis@alaska.gov                              

9.         The origin of the proposed action:

_____     Staff of state agency

_____     Federal government

_____     General public

__X__    Petition for regulation change

_____     Other (identify)     

10.       Date: _03/04/15_________________ Prepared by: _____________________________

[signature]

Name (printed):  Jeffrey Davis                                         

Title (printed):  Administrative Law Judge                        

Telephone:  907-263-2176