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Alaska Restructuring
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06/05: The Alaskan 24th Legislature enacted House Bill No. 163 to “promote and support the voluntary creation of a unified generation and transmission system for the electrically interconnected Railbelt area by authorizing the transfer of ownership of certain state-owned electric power projects (the Alaska inter-tie, the Healey clean coal project, the Bradley Lake hydroelectric project) to a joint action agency formed by three or more Railbelt electric utilities.” 09/01: The Regulatory Commission of Alaska (RCA) issued an order ending the inquiry into
retail electric utility restructuring and competition in Alaska and closing
docket R-9710. According to the RCA's order, "projections of any potential
benefits are too speculative at this time." 07/99: The legislature disbanded the Public Utility Commission and assigned its responsibilities to the newly named Regulatory Commission of Alaska (RCA). Five new commissioners were sworn in on July 1, 1999. 06/99: The
final version of CH2M Hill's Study of Electric Utility Restructuring in Alaska
requested by the PUC was presented on June 30, 1999. Most of the
recommendations targeted the Railbelt (Anchorage and Fairbanks). Included
were: consideration of retail pilot programs, encouragement of power trading
markets, creation of a central dispatch point and an ISO, and consolidation of
administrative functions and introduction of new technologies such as fuel
cells and microturbines for rural systems. 03/99: The
Alaska State Legislature Joint Committee issued its report, “Recommendations to
the Alaska State Legislature and Alaska Public Utilities Commission Regarding a
Retail Pilot Program.” The report recommended the 21st legislature
address restructuring and decide if statutory changes for the PUC are necessary
to implement pilot programs or retail access. 01/99: Chugach rejected Matanuska's offer and contended that the savings projected by the merger could easily be achieved through competition; Chugach will continue to push for statewide competition. 10/98: Matanuska Electric Association, Chugach's largest wholesale customer, offered to buy out Chugach. Chugach's assets were valued at $486 million. 08/98: The Alaska State Legislative Joint Committee, established to develop recommendations for the legislation on electric industry restructuring (due in January 1999) conducted its first hearing. The Alaska Rural Electric Cooperative Association stated that due to the isolation and unique characteristics of Alaska's rural electric industry, it should be left out of any restructuring plans. Chugach Electric Association, the State's largest electric utility, stated that consumers would benefit if the State embraced a broad policy of allowing competition. 06/98: PUC rejected Chugach's argument and affirmed the PUC's authority to regulate retail wheeling. 05/98: House Concurrent Resolution No. 34 established a Joint
Committee on Electric Utility Restructuring. 01/98: Chugach Electric Association, the State's largest utility, urged PUC legislators to allow retail competition in Anchorage and surrounding areas. House Bill 235 primarily failed because Chugach would not support it unless it was amended to allow retail wheeling in Anchorage and surrounding areas. |