NOTICE OF PROPOSED REGULATIONS IMPLEMENTING SENATE BILL 123 REQUIREMENTS RELATED TO REGIONAL ELECTRIC RELIABILITY ORGANIZATIONS, INTEGRATED RESOURCE PLANNING, AND LARGE PROJECT PREAPPROVAL
The Regulatory Commission of Alaska (Commission) proposes in Dockets R-20-001, R-20-002, and R-20-003 to adopt regulations in Title 3 of the Alaska Administrative Code implementing Senate Bill 123, which requires interconnected electric utilities (“load-serving entities”) to participate in a regional electric reliability organization and provides the Commission with authority to certificate and regulate these electric reliability organizations. These regulations will be set out in a new Chapter (3 AAC 46) and proposes regulations from 3 AAC 46.010 through 3 AAC 48.170, 3 AAC 46.220 through 3 AAC 46.270, 3 AAC 46.320 though 3 AAC 46.470,
and 3 AAC 46.999. These sections address:
Filing requirements and agency procedures related to petitions and motions submitted regarding electric reliability organization matters;
The process for all load-serving entities interconnected to a bulk-electric system to petition pursuant to AS 42.05.760(d) for an exemption from the requirement to establish an electric reliability organization;
The process for load-serving entities not interconnected to an interconnected bulk electric system to petition pursuant to AS 42.05.760(f) for an entity to serve as an electric reliability organization for an interconnected electric energy transmission network;
Requirements that must be satisfied before the Commission will issue a certificate authorizing an entity to serve as the electric reliability organization, including certain board composition requirements;
Application requirements for an entity seeking to serve as an electric reliability organization;
The process for the Commission to form an electric reliability organization if required to do so by AS 42.05.760(e);
Rules to ensure that an electric reliability organization and its directors act independently from users, owners, and operators of the interconnected electric energy network;
Rules governing the operations of an electric reliability organization, including rules related to the qualifications for members of the organization’s board of directors;
Meeting and record retention requirements for an electric reliability organization;
Requirements related to an electric reliability organization’s process and program for monitoring compliance with and enforcing reliability standards, including mechanisms for penalizing noncompliance with reliability standards;
Procedures related to Commission investigations regarding a covered entity’s non- compliance with an approved reliability standard, including procedures related to Commission imposition of a penalty for such non-compliance;
Procedures related to appeals to the Commission of penalties assessed by an electric reliability organization for non-compliance with an approved reliability standard;
Continuing filing requirements for an electric reliability organization, including annual reports and annual budgets;
Filing requirements related to a petition for a new or revised integrated resource plan;
Procedures for load-serving entities interconnected to the network served by an electric reliability organization to obtain Commission approval before constructing large energy projects, and exceptions to the requirement that such load-serving entities obtain Commission approval before constructing a large energy project;
Procedures and requirements related to the tariff maintained by an electric reliability organization;
Requirements related to tariff submissions by an electric reliability organization, including Commission procedures and permissible actions on filings;
Requirements related to the surcharge authorized by AS 42.05.770(3) to allow an electric reliability organization to recover its costs;
Regulations implementing the requirements of AS 42.05.770(1)(A) that an electric reliability organization’s tariff include provisions related to open access transmission and interconnection, including the information required in support of a tariff submission addressing open access transmission or interconnection;
Regulations implementing the requirements of AS 42.05.770((1)(b) that an electric reliability organization’s tariff include provisions related to transmission cost recovery, including the information required in support of a tariff submission addressing transmission cost recovery;
Procedures regarding Commission review and approval of the rules of an electric reliability organization required by AS 42.05.762(3); and
Definitions of terms used in the proposed regulations.
The Commission will also amend the following regulations to ensure electric reliability organizations are subject to the regulatory requirements stated therein: including 3 AAC 48.020, 3 AAC 48.030, 3 AAC 48.040, 3 AAC 48.050, 3 AAC 48.060, 3 AAC 48.070, 3 AAC 48.095,
3 AAC 48.154, and 3 AAC 48.170. The Commission is also proposing to add additional categories of documents treated as confidential under 3 AAC 48.040(b).
You may comment on the proposed regulation changes, 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 West 8th Avenue, Suite 300, Anchorage, Alaska 99501. Additionally, the Regulatory Commission of Alaska will accept comments via its website at: http://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx. Comments may also be submitted through the Alaska Online Public Notice System, by accessing this notice on the system and using the “comment” link. Comments must be received no later than 5 p.m. on June 1, 2021 and should reference Dockets R-20-001, R-20-002, and R-20-003.
If you are a person with a disability who needs special accommodation in order to participate in this process, please contact Valerie Fletcher-Mitchell at 907-276-6222, toll-free at
1-800-770-8973 or TTY 7-1-1 no later than three business days before relevant public comment period ends to ensure that any necessary accommodations can be provided.
Since this is a regulations proceeding, commenters are not required to serve their comments on other entities or persons 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 materials 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 above website must pick “All Open Rulemaking Dockets” under Top Searches and choose Matter Number “R-20-001”, R-20-002”, or “R-20-003”.
After the public comment period ends, the Commission 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. Written comments received are public records and are subject to public inspection.
Statutory Authority: AS 42.05.151(a), AS 42.06.140(a)(5), and AS 42.05.760 through AS 42.05.790.
Statutes Being Implemented, Interpreted, or Made Specific: AS 42.04.080, AS 42.05.141, AS 42.05.151, AS 42.05.171, AS 42.05.175, AS 42.05.181, AS 42.05.671, AS 42.05.760, AS
42.05.762, AS 42.05.765, AS 42.05.767, AS 42.05.770, AS 42.05.772, AS 42.05.775, AS
42.05.780, AS 42.05.785, AS 42.05.790, and AS 42.06.445.
Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation.
DATE: April 29, 2021
Robert M. Pickett, Chairman
ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d))
- Adopting agency: Regulatory Commission of Alaska
- General subject of regulation: Electric reliability organizations
- Citation of regulation (may be grouped): 3 AAC 46.010 through 3 AAC 48.170, 3 AAC 46.220 through 3 AAC 46.270, 3 AAC 46.320 through 3 AAC 46.470, 3 AAC 46.999, 3 AAC 48.020, 3 AAC 48.030, 3 AAC 48.040, 3 AAC 48.050, 3 AAC 48.060, 3 AAC 48.070, 3 AAC 48.095, 3 AAC 48.154, and 3 AAC 48.170.
Reason for the proposed action:
( ) compliance with federal law
(X) compliance with new or changed state statute ( ) compliance with court order
( ) development of program standards
( ) other: (please list)
- RDU/component affected: Regulatory Commission of Alaska
- Cost of implementation to the state agency and available funding (in thousands of dollars):
Initial Year
Subsequent
FY 2017
Years
Operating Cost
$ 0
$ 0
Capital Cost
$ 0
$ 0
Federal receipts
$ 0
$ 0
General fund match
$ 0
$ 0
General fund
$ 0
$ 0
General fund/
program receipts
$ 0
$ 0
General fund/
mental health
$ 0
$ 0
Other funds (specify)
$ 0
$ 0
- The name of the contact person for the regulations: NameJames Walker
Title Administrative Law Judge Address 701 W. Eighth Avenue, Suite 300
Anchorage, AK 99501 Telephone 907-276-6222 E-mail address james.walker@alaska.gov
- The origin of the proposed action:
X staff of state agency
federal government
general public
petition for regulation change
other (please list)
Date: April 29, 2021 Prepared by:
Robert M.Pickett Title (typed) Chairman Telephone: 907-276-6222