RCA seeks clarity on issue of regulating RTO just established

Alan Bailey

for Petroleum News

The Regulatory Commission of Alaska has opened a docket to investigate how it can regulate the Railbelt Transmission Organization, the new organization that has been mandated by House Bill 307, a bill that was recently signed into law by Gov. Mike Dunleavy. The RTO has yet to be formed but has been tasked with developing a new Railbelt electricity transmission system tariff arrangement that removes current impediments to competition in the bulk power market in the Railbelt.

The organization will operate within the Alaska Energy Authority and will consist of representatives from AEA, each Railbelt electric utility and the Railbelt Reliability Organization. The new statutes require the RTO to develop a new transmission tariff protocol by July 1, 2025. But the organization is also subject to regulation by the RCA.

In opening its new docket the RCA says that, for the RTO to meet that July 1, 2025, target, the RCA would presumably need to certify the new organization by then. And it is not clear at present what information an RTO certificate application should include. It is also unclear how the standards for determining that a utility is fit, willing and able to conduct its business should be applied to the certification of an organization within AEA. On the other hand, since it is likely that the RTO will be the only organization of its type in Alaska, it is possible that the commission could exempt the organization from the certification requirement.

The RCA has designated all of the organizations that will have representation within the RTO as parties in the new docket and has also invited the State Attorney General to participate. The commission plans to issue a final order in the docket by Nov. 29.

--ALAN BAILEY