The “intervening” process between the City and Borough of Juneau and the potential sale of Avista One Corp., which owns the Alaska Electric Light and Power (AEL&P), to Hydro One Limited is complete — with safeguards and benefits to Juneau built in.
The agreement between the parties was announced through a CBJ releae sent Tuesday evening.
“I think this cleans up the process for the RCA (Regulatory Commission of Alaska),” CBJ City Manager Rorie Watt told the Empire. “We are just a small part of the sale. The RCA still has to go through its analysis (of the sale).”
The process, which started after the CBJ Assembly decided to proceed with intervening during its Feb. 26 meeting, lasted for a little more than a month. Watt and CBJ’s attorney Kirk Gibson worked together in reaching a deal that should provide some clarity on what the sale means to Juneau.
“I think we got the most we could from the meeting,” Watt said.
The following stipulations were agreed on during the intervening process: Avista and Hydro One agree that the transfer of AEL&P will not change or alter the current status or ownership of the Snettisham Hydroelectric Facility. No action can be taken regarding the facility without notifying the CBJ and going through the RCA process; AEL&P has developed a clear 15-step interconnection review process applicable to proposed energy developers before gaining access to AEL&P’s transmission/distribution system. This information has not been readily accessible to the public before; a comprehensive review of AEL&P’s utility planning process, including current and projected customer electric loads, utility resources and utility operations, will be presented to the Juneau public every two years starting in 2020; Avista and Hydro One have agreed to a list of 39 commitments regarding regulation, customer rates, governance, business operation and local/community involvement that the CBJ requested; the $1 million rate credit that was originally proposed to span 10 years will now be allocated over a five-year period, thereby creating a more immediate public benefit.
Public comments through Assembly meetings and a public meeting Feb. 27 made it clear that some people of Juneau had concerns about the Snettisham Hydroelectric Facility. Snettisham is owned by Alaska Industrial Development and Export Authority (AIDEA) but is managed by AEL&P. Bonds on the hydroelectric project are expected to be paid off around 2034. Once bonds are paid off, AEL&P can buy the facility at a relatively low cost.
Watt said the public’s concerns were brought into the discussions and that he feels the stipulations now included should address that.
“Energy planning is a big deal,” Watt said. “The agreement clearly lays out a detailed process and it gives the public the ability to know and understand AEL&P’s infrastructure planning. I think the public will greatly appreciate the opportunity to become more informed.”
Accoridng to the release, documents pertaining to the agreement will soon be made available for public review.
The RCA will now take six to eight weeks in finalizing its decision on the transfer.
• Contact reporter Gregory Philson at gphilson@juneauempire.com or call at 523-2265. Follow him on Twitter at @GTPhilson.
