{"id":316789,"date":"2024-04-05T15:02:48","date_gmt":"2024-04-05T13:02:48","guid":{"rendered":"https:\/\/climatescience.press\/?p=316789"},"modified":"2024-04-05T15:02:51","modified_gmt":"2024-04-05T13:02:51","slug":"alaska-bad-bill-2-electric-utility-regulation-sb-257","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=316789","title":{"rendered":"Alaska Bad Bill 2: Electric Utility Regulation (SB 257)"},"content":{"rendered":"\n
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From Master Resource<\/a><\/p>\n\n\n\n

By\u00a0<\/em>Kassie Andrews<\/a><\/p>\n\n\n\n

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\u201cOur utilities are working in collusion with NGOs and ENGOs that promote decarbonization over affordability and reliability. Compromised utility board members will waste no time using this change in statute to gaslight everyone around them into believing this is what is best for them.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The short title of Alaska\u2019s SB 257 \u2013 Electric Utility Regulation<\/a> refers to a monstrous process of government-on-government:<\/p>\n\n\n\n

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\u201cAn Act relating to the Regulatory Commission of Alaska; relating to public utilities; relating to electric reliability organizations; relating to the Alaska Energy Authority; relating to the Railbelt Transmission Organization; and providing for an effective date.\u201d<\/p>\n<\/blockquote>\n\n\n\n

This bill was introduced by the Alaska Senate Resources Committee on March 1, 2024. Per the sponsor statement<\/a>, \u201cSenate Bill 257 lays the groundwork for an electric system that is more affordable, more sustainable, more equitable, a grid that can power a prosperous future for generations of Alaskans to come.\u201d<\/p>\n\n\n\n

Sustainability and equity in our electric system?<\/em> The last thing needed is an energy framework based on the highly politicized and dangerous United Nations Sustainability Goals. Equity means socialism<\/em>.  Sustainability is the Tyranny of the 21st<\/sup> Century<\/a>.<\/em> Our legislators should be protecting us by rejecting these constructs with every ounce of \u201cenergy\u201d they have.<\/p>\n\n\n\n

Senate Bill 257 was referred to three committees \u2013 Senate Labor and Commerce, Senate Resources, and Senate Finance.  The bill is currently in the Senate Labor and Commerce Committee<\/a>, chaired by Jesse Bjorkman.  The bill is being heavily sold by Senator Cathy Giessel, her staff, as well as Gwen Holdmann<\/a> with University of Alaska Fairbanks\u2019s Alaska Center for Energy and Power (ACEP). Gwen\u2019s expertise includes decarbonization, energy transitions, and greenhouse gas inventories. <\/p>\n\n\n\n

The sponsor statement claims that the bill\u2019s \u201copen-access transmission network \u2026 will provide sound long-term governance and planning.\u201d Planning? Government or market? Why central planning by unelected bureaucrats and technocrats where we can least afford it? They go on to state, scarily, that this \u201copen-access transmission network\u201d will enable and accelerate the energy transition in Alaska. <\/p>\n\n\n\n

Further justification for this bill reads:<\/p>\n\n\n\n

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The electric transmission system that provides electricity from Homer to Fairbanks serves more than 70% of our population along a 700 mile-long corridor. This system, however, is challenged with insufficient transfer capacity, outdated technology, and inefficient pricing, all of which threaten reliability and prevent new, diverse generation sources from serving ratepayers at the lowest possible cost.<\/p>\n<\/blockquote>\n\n\n\n

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The open-access idea is for Independent Power Producers (IPPs) to come onto the grid and provide power without paying for fees and upgrades required. ACEP\u2019s presentation<\/a> suggests we should adopt Texas\u2019s methodology to \u201cpool backbone transmission system costs and allocate those costs based on a coincident peak or load share ratio basis.\u201d After-all, Texas (the state most hampered by government intervention) had it all right during the historical energy crisis from Winter Storm Uri<\/a>. These policies in Texas actually cost blood. Must we follow?<\/p>\n\n\n\n

The bill amends the statute that defines what a utility can request rate changes for. It adds clarification that the RCA \u201cmay\u201d consider diversity of energy supply, promotion of load growth or enhanced energy reliability or security in determining if an electric utility\u2019s rate is just and reasonable. Non distinctly it erodes and redefines the RCA\u2019s mission which is to \u201cEnsure that safe, efficient, and reliable utility and pipeline services are provided to the public at just and reasonable rates, thereby protecting consumer interests and promoting economic development.\u201d <\/p>\n\n\n\n

Our utilities are working in collusion with NGOs and ENGOs that promote decarbonization over affordability and reliability. Compromised utility board members will waste no time using this change in statute to gaslight everyone around them into believing this is what is best for them.<\/p>\n\n\n\n

Senate Bill 257 stands up and transfers power to yet another bureaucracy, the Railbelt Transmission Organization (RTO), and gives them the right to identify and transfer assets that may fall under the ownership of our member-owned co-ops. The bill states the transfer of management of assets to the RTO shall be done on or before July 1, 2026.  If they do not transfer the management of the assets, they will be subject to fines as determined by the RCA.<\/p>\n\n\n\n

This bill appears to remove a lot of the duties originally granted to the Electric Reliability Organization (ERO).  It repeals the ERO tariff, which we are currently paying for (see ERO surcharge on your power bill).  It removes the entire ERO Integrated Resource Planning statute<\/a> and sets out the ability for the RTO to establish tariffs related to the backbone transmission system. Upon RCA approval, it creates a revenue mechanism so the RTO can recover costs for their central planning services \u2013 to the tune of over $4M per year for agencies<\/a> estimated<\/a>. It is unclear what will happen with the existing ERO, the Railbelt Reliability Council (RRC). <\/p>\n\n\n\n

Their continued presence is mentioned in the bill and clarifies their responsibility is to \u201censure the stable operation of the interconnect bulk-electric system served by the ERO and specifically require coordination with the RTO when developing reliability standards.\u201d It is also unclear how the board seats of the RRC will evolve as the RTO states it will have representatives from each of the Railbelt utilities. The RRC has co-op members on their board<\/a> today. Utility rate payers sure pay a lot of money for their executives to facilitate central planning and energy transitions to be done to<\/em> us.<\/p>\n\n\n\n

Public testimony is scheduled for Friday, April 5th<\/sup> at 1:30 PM in the Senate Labor and Commerce Committee. Oppose the creation of another state-owned enterprise.<\/em><\/p>\n\n\n\n