The Road to Alaska’s Energy Future
In the midst of quarantines, social distancing, and uncertainty, we have some much-needed good news to report. On March 20, just before it set aside all non-essential business, the Alaska Legislature passed historic legislation to reform the Railbelt electric grid. The Governor is expected to sign the legislation into law. Six years of REAP advocacy work have finally come to a head in the passage of this bill, SB 123.
The impact of strong advocacy
REAP helped introduce the legislation last May, and has been advocating for its passage since then. We previously worked in the legislature in both 2015 and 2018 to create a new regional entity that this successful effort built off of.
Efforts to reform the Railbelt electric grid to improve coordination and efficiency among the six utilities have been going on several decades. Today, they finally succeeded.
– Chris Rose, REAP Executive Director
The passage of Senate Bill 123 will ensure that a new electric reliability organization (ERO) for the Railbelt region will be created. Getting the six electric utilities in Alaska’s Railbelt to work more closely together to improve coordination and efficiency is something that people have been trying to do for several decades.
What this means for Alaskans
The new ERO is important for several reasons. For the first time ever, decisions about what new generation and transmission infrastructure should be built in the region will be decided by a public planning process. The Regulatory Commission of Alaska will have new authority to approve the plans, as well as future individual projects. The new ERO will be governed by a mix of utility and non-utility stakeholders, which means voices for renewable energy, independent power production and consumer protection will all be heard
The passage of SB 123 ensures that a new electric reliability organization will be created for the Railbelt, a major step toward removing barriers to renewable energy development in the region.
– Chris Rose, REAP Executive Director
The ERO will also begin to bring down some of the barriers to renewable energy development that have existed in a system run by six different and independent utilities. For example, the ERO will be required to develop non-discriminatory protocols that allow open access to the electric grid for independent power producers. The ERO will also have to develop a cost recovery mechanism for the use of the transmission system — a first step toward eliminating redundant fees to move electricity across the region that make it difficult for new projects to get off the ground.
Creating a Better Place to Live & Work
The ERO will also be better for electric consumers. In 2018, Railbelt consumers collectively paid about $880 million for electricity. That means that even a modest 2% increase in efficiency along the Railbelt grid would collectively save people in the Railbelt over $17 million every year. The new electric reliability organization is important for Alaska’s future. It will make it easier for the most populous region of the state to plan for and execute the energy transition that is already underway across the world – a transition that includes electric vehicles and lower carbon emissions. The new organization will make Alaska a more attractive place to live, and to do business.
A Big Thanks to Our Supporters
REAP would like to thank the members of the Senate and House that moved the bill so quickly this session, in particular Senator John Coghill and his staff and Representative Grier Hopkins and his staff. Those two legislators respectively chair the Senate Special Committee on the Railbelt Electric System and the House Special Committee on Energy. REAP would also like to thank all six of the Railbelt utilities who came together to support the legislation, as well as other important stakeholders who testified in its favor.
Finally, REAP would like to thank all its members and donors that make our advocacy work possible. Without your support, we would not be able to continue our work to educate policy makers about the benefits of local, stably-priced, clean renewable energy. Please celebrate this milestone with us by donating to our advocacy efforts – our work has only just begun!