After years of advocacy, utilities unite

For six years, REAP has been working collaboratively with stakeholders to create a regional entity in the Railbelt to unite the utilities and develop the necessary foundation to chart a clean energy future for Alaska’s most populous region.

These stakeholders included the Railbelt utilities, independent power producers, consumer groups and others. We’ve worked in front of both the Regulatory Commission of Alaska (RCA) and the state legislature. Last May, we brought language to the legislature that was introduced in both the House and Senate. On March 20, SB 123 passed the legislature and is now on the Governor’s desk.

The legislation ensures that an electric reliability organization (ERO) for the Railbelt region will be created. We’ve been (virtually) celebrating this huge and historic win for Alaska for a few weeks now, and want to make sure our supporters understand how the legislation changes the energy landscape in the region. 

So what exactly does this mean for Alaskans and what happens now?  Here’s what you should know:

1. It’s better for renewable energy.

The electric reliability organization will remove barriers to renewable energy development in a number of ways. It will mandate non-discriminatory access by independent companies that wish to sell renewables into the grid, take a first step toward eliminating redundant fees to transmit power along the grid and establish a transparent, public “integrated resource planning” process to determine what new generation projects the region will build in the future.

2. It’s better for consumers.

Getting six independent utilities to work together more closely will lead to greater efficiency and save electricity consumers money. In 2018, Railbelt consumers collectively paid about $880 million for electricity. Even a modest 2% increase in efficiency along the Railbelt grid would save consumers over $17 million every year. 

3. It’s better for Alaska.

The new electric reliability organization will be governed by a mix of utility and non-utility stakeholders, where voices for renewable energy, independent power producers and consumer protection will all be heard. The electric reliability organization will make it easier to for Alaskans to plan and execute a clean energy transition that is already underway across the world – a shift that includes electric vehicles and lower carbon emissions. 

4. The work has just begun. And we need your help to finish it.

We are expecting the Governor to sign the ERO legislation soon. When he does, the RCA can begin a public process to write the regulations that will define public processes like integrated resource planning. REAP will be at those RCA hearings to make sure renewable energy is part of the discussion. The second major effort about to begin is actually standing up the new organization by drafting the articles of incorporation, bylaws and code of conduct for the ERO. REAP has applied to be one of 12 entities on a committee that will do this work. Those 12 entities will also become the first board of directors for the organization, if it is certified by the RCA. 

Both of these two processes will happen almost simultaneously, and both could take up to a year to complete. REAP expects them to consume large amounts of REAP Executive Director Chris Rose’s time. REAP relies on your support to fund this important work, so please consider making a donation today.

We are proud to be a part of historic legislation that will make Alaska a more attractive place to live, and to do business. But we still have a ways to go to ensure a cleaner energy future for Alaskans. 

Donate to our efforts!

To ensure this legislation is implemented effectively, REAP will be part of the development and planning for the new electric reliability organization. This work is funded solely by individual Alaskans and member businesses. Please consider donating $25 to our efforts. 

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April 8th, 2020

Alaska PolicyElectric Reliability OrganizationEnergy CostsEnergy PoliciesRailbelt